Equitas 2021-22

Amplifying scale
With a digital mindset

Integrated Annual Report 2021-22
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CONTENTS
01-53 54-118 119-181

Company Overview Statutory Reports Financial Statements
02 About the Report 54 M
anagement Discussion 119 Independent Auditors’ Report
and Analysis
04 5 Years of Banking 126 Balance Sheet
68 Directors’ Report
08 15 Years of Trust 127 Statement of Profit & Loss
87 Report on Corporate
10 5 Year Performance 128 Cash Flow Statement
Governance
14 Consumer Branding 130 Schedules
109 Business
16 Chairman’s Communiqué Responsibility Report
18 MD & CEO’s Communiqué
24 The Equitas Ecosystem
26 Product Suite
30 Scale and Reach
34 Value Creation Model
36 Strategy
38 Risk Management
42 Social – Employees
44 Social – Partners
46 Social - Community
50 Governance - Board of Directors
52 Governance - Leadership Team
Performance snapshot FY22

Net Income Capital Adequacy (CRAR)
` 2,576 Cr 25.16%
Profit After Tax (PAT) ROA
` 281 Cr 1.10%
Net Interest Margin ROE
8.54% 7.75%
Amplifying scale.
With a digital mindset.
In our five-year journey as a small finance bank, we have
focused on building a stable, scalable and sustainable
bank while creating value for all our stakeholders.
Challenges were aplenty on the way, but we have managed
to emerge stronger out of every crisis. Relying on robust
governance, ethical and fair practices, and transparency,
we have reimagined financial services delivery to the last
mile, with technology and talent as key enablers.
Our customers are at the heart of continuing to tap into the

our success story. Their resilience and fast-transforming informal
aspirations for a better future continue economy, that remains largely
to drive us to create innovative solutions unbanked or underbanked, even
tailored to their needs. The past two today. With operating leverage
years have been no different. Today, we continuing to play out and cost
are ready to embark on a new phase of funds trending towards large
of our journey to build the bank of the universal banks, we are at a
future, by amplifying our scale with sweet spot to enter new product
a ‘digital first’ approach. We are also segments while expanding offerings
entering win-win partnerships to adopt in the existing ones. With our
disruptive technologies developed by Beyond Banking consumer brand
fintechs, while extending them the trust positioning, we are creating a force
and scale enjoyed by a robust banking multiplier for inclusive progress.
franchise.
We target to achieve sustainable

growth, above the industry average, by
Company Overview
About the report

Equitas Small Finance Bank’s third Integrated Annual Report
endeavours to provide a holistic assessment of the Bank’s
financial and non-financial performance for the financial
year ending March 31, 2022. This Report also outlines
relevant information on the Bank’s strategy, governance,
risks, and prospects to offer stakeholders better insights into
its activities and progress, as well as future preparedness.
Reporting principles and frameworks Responsibility statement

This Report is aligned with the reporting The contents of this Report have been
framework prescribed by the International reviewed by the senior management of the
Integrated Reporting Council (IIRC). Bank, and reviewed and approved by Those
Through this Report, we provide insights Charged with Governance (TCWG) to ensure
about how the Company creates value by accuracy, completeness and relevance of the
sharing financial as well as non-financial information presented.
information. The IIRC has prescribed seven
guiding principles for Integrated Reporting. Forward-looking statements
These are strategic focus and future This Report contains statements that relate
orientation, connectivity of information, to future operations and performance of the
stakeholder relationships, materiality, Bank. Actual results may differ materially from
conciseness, reliability and completeness, those suggested by such statements due to
and consistency and comparability. certain risks associated with our expectations
with respect to, but not limited to, future
Reporting period circumstances such as technological
This Report covers the period between changes, the impact of changes in banking
April 1, 2021 and March 31, 2022. regulations and other regulatory changes
in India and other jurisdictions, natural
Reporting boundary calamities, inflation, deflation, unanticipated
The financial and non-financial information turbulence in interest rates, foreign exchange
contained in this Report largely covers the rates, equity prices or other rates or prices,
activities and progress of Equitas Small the performance of the financial markets in
Finance Bank Limited on a standalone India and globally, etc.
basis. This report provides material
information relating to our strategy and
business model, operating context,
stakeholder interests, performance,
prospects and governance.
02
Equitas Small Finance Bank Limited
Mapping capitals and UN

Sustainable Development Goal (SDGs)
Financial Manufactured Human

Capital Capital Capital
Financial capital entails our Our manufactured capital People are our biggest
ability to raise, lend and includes our banking asset, and the diversity
manage funds prudently. outlets, ATMs, Business of our manpower across
It includes Equity, Assets, Correspondents, skill sets, expertise and
Deposits, among others. Corporate Office, Data knowledge is what enables
Centres and our entire our growth momentum. It also
IT infrastructure. includes employee benefits,
learning & development and
engagement activities.
SDGs Impacted SDGs Impacted SDGs Impacted
Intellectual Social and

Capital Relationship Capital
Intellectual capital Maintaining enduring
encompasses the knowledge relationship with our
and expertise embedded communities by indulging
within our systems, processes in various corporate social
and procedures. It also responsibility activities is the
includes RPA Bots, API Libraries, prime focus of social and
Data Analytics & Business relationship capital. This also
Intelligence, Underwriting includes Customers, Business
Models and Cyber Correspondents (BCs),
Security Framework. Fintech Partners.
SDGs Impacted SDGs Impacted
Integrated Annual Report 2021-22 03

Company Overview
5
Years of Banking
Celebrating stability
at scale.
With prudence.
Since inception, we are on a mission to create

the most valuable bank for all our stakeholders, with a prudent
approach towards delivering profitable growth. With a
one line strategy, we have made significant investments to
strengthen our phygital delivery model while diversifying our asset
portfolio and building a robust liability franchise.
We also brought down our cost of funds.
Launch of our Postal Stamp during our 5th anniversary

From L-R: ( P. N. Vasudevan - MD & CEO, Dheeraj M. - Head Strategy, Murali V. - Head Liabilities, Vignesh M. - Head Marketing,
Rohit P. - Head Assets, Narayanan E. - CIO, Pallab M. - CPO
04
(` in Crore)
Deposits* CASA
FY18 FY22 FY18 FY22
5,604 18,951 1,638 9,855
Advances Networth
FY18 FY22 FY18 FY22
8,238 20,597 2,048 4,246
Cost of Funds % Branches

FY18 FY22 FY18 FY22
8.36 6.58 889 861
Employees Customers
FY18 FY22 FY18 FY22
13,490 17,607 23,97,986 56,87,893

* Total Deposits including Certificate of Deposits

Company Overview
How we built a stable, scalable and

sustainable bank…
Diversifying our asset portfolio
FY18 FY22 (` in Crore)
2,288 3,907 Micro Finance
2,927 9,522 Small Business Loans
FY18 FY22 2,251 5,047 Vehicle Finance
- 1,164 MSE Finance
- 758 NBFC Financing
Growing the share of secured lending (%)
FY18 FY22 (%)
66.33 81.30 Secured Book
FY18 FY22
Achieving a healthy depositor mix (%)
FY18 5,604 (J Cr)
FY22 18,951 (J Cr)
(%) Individuals
Banks
PVT. Corporates
67 67 10 8 8 4 3
Govt./ Local Bodies
Trusts
Deposit Category Others
06
Maturity in asset product segments

Small Business Loan
18.64%
9,522
18.18%
17.82%
7,971
17.87% 17.73%
16.96%
6,279
3.55%
3.34%
4,577
2.92%
2.73%
2.63%
1,824
2.42%
2,927
FY17 FY18 FY19 FY20 FY21 FY22

Advance GNPA Yield
Vehicle Finance
20.45%
19.71%
5,047
4,530
18.71%
17.72% 17.64%
3,760
17.09%
2,951
5.57%
4.96%
2,251
4.00%
4.00%
3.97%
3.76%
1,928

Advance GNPA Yield
Steadily lowering Cost of Funds (CoF)

10.00%
8.36%
8.13%
8.06%
7.34%
6.58%

Company Overview
15
Years of Trust
Redefining purpose.
With commitment.
With a purpose to offer financing solutions to India’s

vast unserved and underserved segment, we developed an
innovative credit assessment system which enabled us to
extend loans to customers, with limited to no recorded credit or
income history. Today, we are leveraging that experience and
trust gained over the years, to build a future-ready banking
franchise while delivering large-scale social impact.
2007
Launched microfinance
lending to the
underbanked
2013 2015
Launched Small Business RBI grants in-principle
Loans Small Finance Bank license
GVC rating upgraded to
Level 2
2011 2016
Launched vehicle finance Commencement of
and housing finance operations as SFB post
receipt of final approval
GVC rating of Level 3 from from RBI
CRISIL
08
Awards and accolades

2017
• Award for innovative practice of helping
18,000+ women with disabilities at the
UNO, Vienna
2018 • Market Place Solutions for helping 20,000+

women with disabilities, including 3,800
Commencement visually challenged, by Disability Matters
of MSE Financing
• EDIT ranked 2nd among India’s Great Mid-
product Size Workplaces
Gross Advances • Equitas Model presented at European
crossed ` 100 Bn Microfinance Week at Luxembourg
2018
• SKOCH AWARD 2018 for Equitas Model for
2017
Top Ranking CSR Project by Banks in India
• EDIT ranked Top 25 Asia’s Great Mid-
RBI grants Scheduled size workplaces
Commercial Bank • Winner of National Payments Excellence
status to ESFB Awards 2017 (Small Finance Bank Category)
2019
2020 • Top 5 of 50 Companies listed on BSE on Indian
Corporate Governance Scorecard
2019
Completed the IPO and
successful listing of Equitas • Equitas Model presented at Global Microfinance
Summit at Istanbul in January 2019
Small Finance Bank Total deposits
exceed
` 100 Bn 2020
Economic Times – Best Brands 2020
2021
• CMO Asia – Award for Excellence in Branding
and Marketing – Best Campaign Video award
for ‘Circle of Life – Identity, Pavement Dwellers
Rehabilitation’
• For The Love of Emails Awards 2022 by Netcore –
Email campaign of the year
2021
• For The Love of Emails Awards 2022 by Netcore –
Runner up for best email strategy award
Equitas SFB completes 5 years • BSE Experience of the New award – Top
of operations as a Bank performer in the banks category
• IMA South Awards 2021 – Silver in Branded
Content – BFSI for One India One Bank campaign
• National Awards 7th Edition for Excellence in
Branding & Marketing – Award for Marketing
Excellence in banking, financial services &
insurance sector
• National Awards 7th Edition for Excellence in
2022
Branding & Marketing – Award for Best use of
social media in marketing
Gross advances exceed ` 205 Bn 2022

Total deposits exceed ` 189 Bn E4m – Pride of India Brands – The best of
Bharat award 7th edition of BFSI leadership
Successfully raised ` 550 crore summit – Equitas has won ‘leader in digital
via the QIP route services’ award

Company Overview
Year Performance
5
Delivering
profitable growth.
With impact.
We have always adopted a conservative

approach to lending – focusing on staying adequately
capitalised and maintaining stable asset quality. Our advances
growth has consistently outpaced balance sheet expansion,
indicating fund movement to high-yielding assets and
translating to much better net interest margins generated
with a similar balance sheet size.
Image used in this page is for representation purpose only
10
(5-year CAGR)
Balance Sheet Size Gross Advances

(` in Crore) (` in Crore)
FY22 26,952 FY22 20,597
FY21 24,708 FY21 17,925
FY20 19,296 FY20 15,367
FY19 15,763 FY19 11,704
FY18 13,310 FY18 8,238
15% 20%
Total Deposits* Networth

FY22 18,951 FY22 4,246
FY21 16,392 FY21 3,396
FY20 10,788 FY20 2,744
FY19 9,007 FY19 2,254
FY18 5,604 FY18 2,044
28% 16%
Capital Adequacy Ratio Capital Adequacy Ratio – Tier I

(%) (%)
FY22 25.16 FY22 24.53
FY21 24.18 FY21 23.23
FY20 23.61 FY20 22.44
FY19 22.44 FY19 20.92
FY18 29.63 FY18 27.09

Company Overview
Robust profitability
Profitability has been strengthened by growing Net Interest Income (NII) and falling Cost of Funds.
Net Interest Income (NII) Other Income

FY22 2,039 FY22 538
FY21 1,798 FY21 418
FY20 1,495 FY20 282
FY19 1,152 FY19 283
FY18 861 FY18 241
19% 17%
Profit After Tax (PAT) Cost of Funds
(` in Crore) (%)
FY22 281 FY22 6.58
FY21 384 FY21 7.34
FY20 244 FY20 8.06
FY19 211 FY19 8.13
FY18 32 FY18 8.36
54%
Comfortable asset quality

The year was characterised by the impact Covid had across multiple quarters. We witnessed strong disbursement
growth in the second quarter, the third quarter saw the onset of Omicron which pushed our team to focus on
collections. In the fourth quarter, the Bank focused on growth and delivered the highest ever disbursement for the
quarter. During the fourth quarter, the Bank started witnessing non-restructured credit cost at 1.26% which is back
to the Bank’s historical levels.
Disbursements GNPA
(` in Crore) (%)
FY22 10,549 FY22 4.06
FY21 7,463 FY21 3.59
FY20 9,911 FY20 2.72
FY19 8,578 FY19 2.53
FY18 5,809 FY18 2.68
13%
12
Earnings Per Share (EPS) Book Value (BV)

(`) (`)
FY22 2.43 FY22 33.91
FY21 3.53 FY21 29.81
FY20 2.39 FY20 26.05
FY19 2.09 FY19 22.41
FY18 0.32 FY18 20.32
50.33% 10.79%
Return On Equity (ROE) Return On Assets (ROA)
(`) (`)
FY22 7.75 FY22 1.10
FY21 12.70 FY21 1.70
FY20 9.84 FY20 1.39
FY19 9.85 FY19 1.45
FY18 1.57 FY18 0.30
NNPA
(%)
FY22 2.37
FY21 1.52
FY20 1.66
FY19 1.44
FY18 1.46

Company Overview
CONSUMER BRANDING
Being a force for good.

With Beyond Banking.
At Equitas Bank, we deploy the money that our customers deposit
with us, back into communities with limited access to formal credit,
making money a force for good, to deliver sustainable social
change. Our new consumer branding is designed to showcase that
deposits with the Bank go much beyond earning higher interest
rates – to changing people’s lives and building a better society.
At Equitas, money indeed gets the ability to positively influence the

economic well-being for the most deserving segments in our communities.
The journey of money and the positive change it makes to the community is
captured in our brand video launched last year, depicting what happens to
your money when you bank with us.
‘Circle of Life’ web series

We launched a web series on our social
media platforms, named ’Circle of Life’. It
features real-life transformative stories of
bravery, sacrifice and compassion. The first
story narrates Shanthi’s journey from being a
pavement dweller to a proud, independent
parent. The second story is about a
transwoman street play artist Dhanalakshmi’s
self-discovery and rebirth, to a woman of
substance and an artist. The third story
was about a couple with disabilities,
Indra Jitendra, who overcome supposedly
insurmountable challenges, every day.
14
Brand ambassadors reflect

core values
Whistle Podu! Our choice of brand ambassadors reflect
Partnership with CSK our core values. As an organisation working
Cricket has transcended beyond sport to become towards empowering women across India
a religion in India – an epitome of unity in so through banking and non-banking initiatives,
much diversity. We continued our partnership we decided to associate with national
with the leading Indian Premier League women’s field hockey player Rani Rampal and
franchise, Chennai Super Kings. With the launch cricketer Smriti Mandhana. They are the true
of Equitas Bank CSK Debit Card and the Super representatives for inspiring women to chase
7 campaign around it, we engaged with a large their dreams.
number of audiences through various channels.
We became one of the first banks to launch a
debit card in the virtual world – Equiverse – with
the gamification of card issuance process.
FY22 branding and marketing awards
CMO Asia – Award for For the Love of For the Love of IMA South Awards
Excellence in Branding Emails Awards 2022 Emails Awards 2022 2021 – Silver in
and Marketing – Best by Netcore – Email by Netcore – Runner Branded Content –
Campaign Video award campaign of the year up for best email BFSI for ‘One India
for ‘Circle of Life – strategy award One Bank’ campaign
Identity, Pavement
Dwellers Rehabilitation’
BSE Experience of National Awards 7th National Awards 7th Edition for Excellence in
the New award – Top Edition for Excellence in Branding & Marketing – for Marketing Excellence in
performer in the Branding & Marketing banking, financial services & insurance sector
banks category – for Best Use of Social
Media in Marketing

Company Overview
CHAIRMAN’S COMMUNIQUÉ
Stepping into the future.

With confidence.
Dear stakeholders,
It would not be an overstatement to At the last Annual General Meeting, I

had mentioned that the caravan of time
say that the Bank has weathered had carried us over terrains that had
well the pounding of the three been at times undulating for almost
five years of banking operations. The
waves of the pandemic and its period since April 2021 brought greater
massive ripple effects. I believe we operational perturbations due to the

resurgence of Covid, resultant lockdowns,
now have a Bank whose foundation challenges of disbursement, loan recovery
is strong and will get stronger as it and restructuring. Both regulatory

prescriptions and prudent provisioning
grows. created a dip in profits in FY22 compared
to FY21. But the fundamentals remain
robust. It would not be an overstatement
to say that the Bank has weathered well
the pounding of the three waves of the
pandemic and its massive ripple effects.
I believe we now have a Bank whose
foundation is strong and will get stronger
as it grows.
Despite the challenges, the Bank stayed
the course on its strategy to reduce the
ratio of unsecured to overall advances.
Unsecured portfolio fell to 19.45% of
the overall portfolio and growth of gross
advances was 15% YoY. On a granular
basis, small business loans continue to
do well, growing 19% YoY and new
commercial vehicle financing, which the
Bank commenced a couple of years ago,
is also doing well and grew 19% YoY.
Newly introduced products like used car
and affordable housing loans also saw a
heartening uptick. The Bank’s consistent
focus on growing its deposit franchise
using digital tools and its ability to raise
deposits have enabled it to compete
effectively and grow the deposit base
by 16% YoY to ` 18,951 crore. CASA
deposits stood at ` 9,855 crore, up 76%
YoY, accounting for 52% of total deposits.
The robust performance of the liability
franchise helped to bring down cost of
16
funds to 6.58% from 7.34% in the The Bank’s consistent focus on growing
preceding year. its deposit franchise using digital tools
Asset quality remained comfortable and its ability to raise deposits have
with Gross Non-Performing Assets
(GNPA) at 4.06% and Net NPA enabled it to compete effectively and
(NNPA) at 2.37%. We expect the grow the deposit base by 16% YoY to
asset quality to improve going
forward, as cash flows of our ` 18,951 crore.
customers return to pre-pandemic
levels. That said, we remain well
capitalised with total CRAR at
on the swap ratio determined and developing Open Application
25.16% as against the regulatory
in the Scheme, preparation of Programming Interfaces.
minimum need of 15%.
post-merger balance sheet and
We also continue to focus our
The Bank is working towards the getting the same audited and
energies and resources towards
merger of the Holding Company, submitted to RBI and necessary
the society we serve with alacrity
Equitas Holdings Limited (EHL) with attention is focused to expedite
and sincerity. Equitas Development
Equitas Small Finance Bank and has actions on our part
Initiatives Trust (EDIT) continues
taken the following steps:
to focus on education, training,
With the completion of the
• Approval of the Scheme of rehabilitation, and health care.
merger, we believe the Bank’s
Amalgamation by Boards of both The newly formed Equitas
strong fundamentals and
the companies Healthcare Foundation has made
Governance will entitle it to
significant progress in setting up
• Submission of the Scheme to the stake a claim for conversion to
a hospital focused on affordable
stock exchanges and RBI for their a Universal Bank. But whatever
cancer treatment. Equitas is
respective NOCs be our nomenclature, our
proud to be able to say that in the
concern towards the unbanked
worst phases of the pandemic,
The Bank and EHL have received and underbanked would
it partnered with some state
conditional NOCs from the RBI and remain undiluted. Inclusiveness
governments/local bodies, and
both the stock exchanges. in our view, is of trenchant
leveraging its grassroot client base,
significance if ESFB has to remain
Steps which remain are: organised 44.62 lakh vaccinations.
a profitable, enduring all-weather
• Submission of application to edifice, built on the pillars of There is no doubt that all this has
National Company Law Tribunal empathy, responsibility, fairness, been possible only because of the
(NCLT) seeking directions and transparency. faith our stakeholders have reposed
for convening meetings of on us. As we move forward with
We are acutely aware that as
shareholders and creditors of the confidence, we hope to reinforce
technology becomes more
Bank and EHL this faith by continuously raising our
pervasive in our life; we need to
customer service benchmarks and
• Convening and holding meetings concentrate on deriving more
overall performance.
as mentioned, and obtaining data-driven insights to deliver
necessary approvals under law frictionless and hyper personalised
customer journeys. Our continued Warm regards,
• Submission of final petition
investments in developing the
to NCLT seeking approval of
best digital tools and platforms Arun Ramanathan
the Scheme
will provide a solid foundation
Part-Time Chairman and
• Upon the receipt of approval, to bridge a part of the yawning
Non-Executive Independent Director
completion of necessary corporate credit gap in underserved
actions for consummating the markets. We see the new-age
merger including but not limited Fintechs as complements and not
to cancellation of shares held competitors to our future growth
by EHL in the Bank and that strategy; partnerships could
held by shareholders of EHL in create a collaborative innovation
EHL, allotment of Bank shares ecosystem with space for start-ups
to shareholders of EHL based

Company Overview
MD & CEO’S COMMUNIQUÉ
Embracing the next.

With conviction.
Predicting the future is often a tricky proposition, simply

because no forecasting model is remotely capable of factoring
in the ‘unknown-unknowns’. The pace of technology evolution
and human ingenuity have the power to derail the plausible
outcomes. However, the one thing that can be said with a degree
of certainty is that the bank of the future will be embedded in
customer journeys in such a way that it becomes the platform or
channel on which their life moves.
18
Dear Stakeholders, We are building on our digital assets

The world is undergoing a tech-
tonic transformation, where
to create exciting new product and
technology has emerged as the monetisation opportunities – scaling
primary source of disruption as
well as the force multiplier in value
segment-specific ecosystem in the small/
creation. Banking is no different. micro merchant space as well as in
Technology-led innovation is
not new in delivering financial
third-party products such as insurance
services, but the thrust has never and wealth management. Further,
been so pronounced. Our focus
on technology since inception and
it enables us to enter new product
continued investments in building segments such as Personal Loans,
digital assets – new-age tools and
platforms – stand vindicated.
among others.
As we cross an important milestone
of completing 5 years as a small
finance bank and also leave behind
the pandemic-related disruptions,
we are ever more confident about
the prudent path we have had taken
so far, sometimes going against the intersection of technology, It gives me immense pleasure to
conventional wisdom. Our belief talent and partnerships. We are report that we are now witnessing
in our customers’ resilience and building on our digital assets to an all-around improvement on our
underlying aspirations inspire us to create exciting new product and performance, as customers have
shape the next phase of our journey. monetisation opportunities – started generating cash flows similar
scaling segment-specific ecosystem to their pre-pandemic levels. This is
Building the bank of the future
in the small/micro merchant reflected not only in our improved
Predicting the future is often space as well as in third-party collection efficiencies and stable
a tricky proposition, simply products such as insurance and asset quality, but also in demand
because no forecasting model is wealth management. Further, it for fresh credit. We exited FY22
remotely capable of factoring in enables us to enter new product recording our highest ever growth
the ‘unknown-unknowns’. The segments such as Personal Loans, in disbursements for a year at
pace of technology evolution and among others. 41% to ` 10,549 crore. Our gross
human ingenuity have the power advances grew 15% YoY to
to derail the plausible outcomes. Solid foundation to propel ` 20,597 crore.
However, the one thing that can growth
be said with a degree of certainty On the liabilities front, we
The second COVID-19 wave, which continued to witness robust
is that the bank of the future will
was more virulent and intense momentum, especially in retail.
be embedded in customer journeys
than the first one, came as a major Our total deposits grew 16% YoY
in such a way that it becomes the
blow to the nation’s overstretched to ` 18,951 crore; CASA deposits
platform or channel on which their
healthcare infrastructure and grew 76% YoY to ` 9,855 crore with
life moves.
nascent economic recovery. The its share in total deposits rising
Moreover, we are building rural economy that had led the significantly to 52.01% at the end of
the bank of the future with a recovery post the first wave was FY22. This played an instrumental
differentiated competitive mindset. hit hard and continues to be role in bringing down our Cost of
In simple words, what conventional under stress. By leveraging our Funds further by 76 bps to 6.58%.
thinking sees as competition, deep customer engagement
we view it as an opportunity and understanding, we offered
for collaboration to create to restructure the loans of our
sustainable value. Our roadmap customers to empower them to
for the future is thus laid out at tide over the situation.

Company Overview
Our balance sheet remains well capitalised Building a value-based thriving

workforce
with Total CRAR at 25.16%, Tier I at 24.53%
With the second and third waves of
and Tier II at 0.63% (as of March 31, 2022). the pandemic affecting the entire
During the year, we tapped the secondary nation, we continued to undertake
concerted efforts to support our
market to raise ` 550 crore through the QIP people tide over these challenges,
route to comply with SEBI’s requirements aligned with our people philosophy
– Employee Care and Employee
on minimum public shareholding. In the Connect. With the belief that “no
process, we have added a few prominent one is safe until everyone is”, we
worked towards building awareness
investors to our marquee list, such as the on and facilitating vaccination across
Government of Singapore, SBI Mutual our branches nationwide. I’m happy
to share that all our employees
Funds, among others. are vaccinated, with around 95%
of them receiving both the doses.
Most importantly, despite the fluid
on-ground situation, our people
ensured uninterrupted services to
our customers.
As a new-age bank with an exciting

Robust capital buffer; growth story, we are focusing on
attracting and retaining the best in
Bank-Holdco merger on track
the industry in our talent pool and
Our balance sheet remains well are also working towards creating
capitalised with Total CRAR at future leaders. Aligned with our
25.16%, Tier I at 24.53% and Tier strategic priorities of inculcating a
II at 0.63% (as of March 31, 2022). culture of continuous learning and
During the year, we tapped the improvement, we have developed
secondary market to raise ` 550 crore immersive, insightful and structured
through the QIP route to comply with talent development initiatives
SEBI’s requirements on minimum (refer to page 42 in this report to
public shareholding. In the process, have a detailed understanding of
we have added a few prominent our people initiatives). It gives me
investors to our marquee list, such immense pleasure to share with you
as the Government of Singapore, SBI that the Bank was certified as the
Mutual Funds, among others. ‘Great Place to Work’ by the Great
This was also an important step Place to Work Institute this year.
towards completing the reverse We were awarded the Best Place to
merger of the Holdco with the bank Work in India 2021 among Mid-size
and strengthen our preparedness to Banking Companies by AmbitionBox.
apply for a universal banking license These recognitions validate our
as soon as the RBI permits us to do efforts and inspire us to do even
so. At the time of writing this letter, better going forward.
we have received the NoC from
RBI and SEBI and have applied to Emphasising health and
NCLT for approval of the Scheme of
financial immunity
Amalgamation.
We continued to leverage our digital
capabilities to deliver impact, as the
pandemic situation continued to
20
evolve with intermittent localised We continued to leverage our digital

restrictions coming in force.
Keeping the external environment capabilities to deliver impact, as the
in mind, health was our primary pandemic situation continued to evolve with
focus area this year. Realising the
significant vaccine hesitancy among intermittent localised restrictions coming
community members, we put our in force. Keeping the external environment
vibrant ecosystem to work to build
awareness and organise vaccination in mind, health was our primary focus area
camps. More than 4.5 million doses this year. Realising the significant vaccine
were administered across those
camps, with 97% of the vaccinated hesitancy among community members, we
expressing their satisfaction on the put our vibrant ecosystem to work to build
infrastructure support.
I’m happy to share with you that the
awareness and organise vaccination camps.
construction work of our not-for-
profit cancer cum multi-speciality
hospital, along with the support and
blessings of Sringeri Saradha Mutt, Looking ahead
is on track for completion in March We have come a long way in the first five years
2023. We have partnered with Tata of banking. We are doubling down to build our
Trusts to make the hospital a part second innings of banking, combining a unique
of their nationwide effort to bring cocktail of digital, a very differentiated banking
cancer care closer to those in need model, an energised team and a social embrace,
through a hub-and-spoke model. which makes our growth meaningful for the
Virtual job fairs were a great success large excluded population of the country. Sound
this year, and as we return to governance and utmost transparency will continue
normalcy, we believe that the hybrid to be a key differentiator in the next phase.
model is the way to go, combining
Transition
the best of the physical and digital
worlds (refer to page 46 of this report I have recently indicated to the Board, my desire to
for a detailed discussion on our social step down to pursue other goals in life, including
initiatives). making our family charitable trust more active
in the areas of adoption, early intervention for
Beyond Banking developmental deficient babies, among others.
In 2021, we launched a web series I would be running the bank till the transition is
‘Beyond Banking’ to reposition smoothly completed. My commitment remains
the consumer branding of Equitas. towards creating Equitas as a unique banking
Through these ‘Circle of Life’ stories, model in the country, and being the most valuable
we highlight how we remain true bank for all its stakeholders.
to our legacy of giving back to the I take this opportunity to thank you all for
society and how we deliver a positive being part of our exciting journey. I believe that
impact on the overall well-being. together with all our stakeholders, we will be
When a customer deposits money on a sustained growth path, driving economic
with us, she earns much more than formalisation and building a bank for everyone.
interest. In the process, we contribute
to sustainable social change while
bringing more and more people into P. N. Vasudevan
the economic mainstream. MD & CEO

Company Overview
BEYOND BANKING
On wheels
22
of
What is life without challenges? the extra wheels fitted with their
Meet Indra Jitendra, a couple ride. Diagnosed with polio at a
with disabilities, who refuse to very young age, they decided
resign to their fate and overcome to shape their own future. When
real-life obstacles, every single Indra says, “we can do things
day. Indra runs a general store better than a normal person,” it
along with her husband, to take resonates willpower and immense
care of their three little kids self-confidence, and demonstrates
and their education. They also how money can deliver a multiplier
deliver essentials to people’s effect in changing people’s lives for
doorsteps on a scooter. The only the better.
thing that makes them special is
Indra Jitendra

Company Overview
THE EQUITAS ECOSYSTEM
Bridging the gap.

With innovative solutions.
Equitas is one of the largest small finance banks in India. We provide
tailored solutions to individuals with limited access to formal channels and
drive financial inclusion to the last mile. Our wide range of products and
solutions enable us to address the specific needs of customers, even those
with variable and cash-based income profiles.
Quick facts
Banking outlets Customers Business correspondents
869 56,87,893 288

ATMs Employees Balance sheet size
339 17,607 ` 26,952 Cr
Customer image used in this page is for representation purpose only.
24
Mission Values
To create the most valuable bank • Customer first • Respect for people
for all stakeholders through • Pride of performance • Ownership
happy employees • Fair and transparent
A comprehensive banking universe
Inclusive Emerging Enterprise NBFC Financing

Banking Banking & MSE
Small Business Loans Use Commercial Vehicle Finance Term Loans
Microfinance New Commercial Vehicle Finance Working Capital Loans
Affordable Housing Loan Used Passenger Cars
Agri Loan
Consumer Banking Commercial Banking Channels

Savings Account Current Account Banking Outlets
Term Deposits Overdraft Facilities ATM/Debit Cards
Bank Locker Cash Management Services (CMS) Mobile Banking
Insurance Phone Banking
Mutual Fund Internet Banking
3-in-1 Trading Account Call Centre
NRI Services Video Banking
Gold Loans
Bank for all
Children Students Millennials Senior Citizens NRIs
Small
Women Entrepreneurs Farmers Business Owners MSMEs
Government Self Employees

TASC* Institutions Corporates Professionals
*Trust/Association/ Societies/Clubs

Company Overview
PRODUCT SUITE
Addressing diverse needs.

With a purpose.
Over the years, our constant focus on technology and customer
requirements has helped us develop a diversified product and service
portfolio, ranging from loan and deposit products to various third-party
products such as insurance across multiple channels.
Asset portfolio
Small business finance (including property loans)
FY22 highlights
AUM Disbursements ATS at Portfolio Yield
` 9,522 Cr ` 3,586 Cr ` 3.86 Lakh 16.96%

Secured Portfolio GNPA ATS at Disbursement
100% 3.55% ` 6.23 Lakh

SBL Product Mix
FY22
38% General LAP
21% Micro LAP
20% Business Loans
12% Housing Finance
9% Agri

ATS - Average Ticket Size
26
Vehicle finance
Vehicle Finance Product Mix
FY22
36% Light Commercial Vehicle
35% Small Commercial Vehicle
22% Heavy Commercial Vehicle
7% Used Passenger Cars
FY22 highlights
AUM Disbursements ATS at Portfolio Yield
` 5,047 Cr ` 2,676 Cr ` 3.04 Lakh 17.09%

Secured Portfolio GNPA ATS at Disbursement
100% 3.97% ` 4.13 Lakh

Micro finance
FY22 highlights
AUM Disbursements
` 3,907 Cr ` 3,312 Cr
Yield GNPA
20.81% 5.93%
ATS at Disbursement ATS at Portfolio
` 0.34 Lakh ` 0.20 Lakh

Non-Tamil Nadu Micro Finance
AUM customers having RD*
46% 1,79,754
* Recurring Deposits
Customer images used in this page is for representation purpose only.

Company Overview
MSE finance
FY22 highlights
AUM Disbursements
` 1,164 Cr ` 286 Cr
Secured Portfolio GNPA
100% 4.93%
` 46.04 Lakh ` 31.15 Lakh

Yield
9.97%
NBFC financing
FY22 highlights
AUM Disbursements
` 758 Cr ` 514 Cr
Secured Portfolio GNPA
100% 0.63%
` 5,706 Lakh ` 1,896 Lakh

Yield
9.77%
Customer images used in this page is for representation purpose only.
28
Liabilities
We offer liability products in the form of deposits
that we source from mass and mass-affluent
customers located in urban and semi-urban areas. Consistent reduction in cost of funds
The sourced deposits contribute significantly towards (%)
meeting our funding requirements.
FY22 highlights 6.93%

6.81%
Current Account Savings Account 6.47%
` 772 Cr ` 9,083 Cr
6.20%
CASA Term Deposits
` 9,855 Cr ` 9,095 Cr Q1FY22 Q2FY22 Q3FY22 Q4FY22
Retail Term Deposits Bulk Term Deposits CASA Ratio
78% 22% 52.01%
Third party products

Customers enjoy a one-stop shop for all their investment
and insurance needs with us. We enjoy an open architecture
where we distribute schemes from multiple asset
management companies and insurance companies. Through
the distribution of these products, we ensure to service the
needs of our customers. We actively cross-sell insurance to
our borrowers as a protection to the family, in case of any
unforeseen circumstances.
FY22 highlights
Mutual Fund Customers Insurance policies sold
13,014 74,117
Fast Tag issued Mutual Fund AUM
1,26,450 ` 185 Cr
Insurance Premium
` 380 Cr*
*Includes fresh business and renewal premium Customer image used in this page is for representation purpose only.

Company Overview
SCALE AND REACH
Delivering to the last mile.

With phygital.
On the back of increasing use of digital infrastructure coupled with
our banking outlets, ATMs and POS terminals, we have fortified our
presence throughout the country, offering an array of products
and services across various channels.
Physical
presence
Network of Banking Outlets
Our branch network comprises
liability/deposit accepting branches
and asset centres (together
referred to as ‘Banking Outlets’).
Our rural Banking Outlets, used
primarily for the distribution of
asset products, are located in
areas with significant growth
potential. We also engage business
correspondent partners to
enhance our reach in unserved and
underserved locations.
We distribute our liability products

through Banking Outlets located
at urban and semi-urban areas.
In order to attract our target
liability customers, i.e., mass and
mass-affluent customers, these
Banking Outlets are equipped
with customer waiting areas, teller
counters, lockers and ATMs.
30
Our footprint as of March 31, 2022
States Banking ATMs

outlets
2
13 1 Andhra Pradesh 22 06
6
18 2 Chandigarh 01 01
5
11 3 Chhattisgarh 24 7
17 4 Gujarat 58 24
14
5 Haryana 25 11
6 Himachal Pradesh 01 -
9
4 7 Karnataka 82 33
8 Kerala 2 2
3
9 Madhya Pradesh 53 20
10 10 Maharashtra 146 51
16
11 New Delhi 14 13
1
12 Puducherry 04 1
13 Punjab 26 9
7
Corporate Office,
14 Rajasthan 62 31
12 Chennai
15 Tamil Nadu 328 119
15
8 16 Telangana 14 06
17 Uttar Pradesh 06 05
18 Uttarakhand 01 -
Note: Map not to scale
Digital expansion
Digitally sourced accounts
21.4 Lakh 9X growth We are enabling access to

banking channels across
India by leveraging our
Digitally sourced balance as a % of CASA robust physical network and
6.03% 5X growth
a comprehensive bouquet of
digital channels
Virtually managed accounts
1 Lakh ` 1,000 Cr book

Company Overview
BEYOND BANKING
A journey
self dis
32
in
scovery
Have you ever thought about and tribulations of life with elan.
how uneasy it could be to live Today, she has charted an
in a body that doesn’t resonate inspiring journey, and on the way,
with the mind? Dhanalakshmi transformed herself from being an
was bold enough to break the artist looking for opportunities to
shackles of society and reveal helping others like her realise their
her true self as a transgender dreams. When she says, “an artist
and an artist. Right from earning is more than what gender can
money to pursue her education define”, it reflects her true persona.
till the 10th standard, to choosing Equitas is proud to play a small
her career as a theatre artist, part in her life.
she has navigated the trials
Dhanalakshmi

Company Overview
VALUE CREATION MODEL
Maximising value.
With capital optimisation.
Our capitals Core business activities
Financial
• Equity Mission
• Assets
To create the most
• Deposits
valuable bank for all
stakeholders through Growth enablers
happy employees • Large market with ample scope of growth
• Strong and diversified array of products and services
• Customer-centric approach with a deep understanding
Manufactured
• Banking Outlets Values of the unbanked and underbanked masses
• Business Correspondents
• A strong infrastructure of vast banking outlets and
• ATMs
• Corporate Office and data ATMs underpinning the growth of SFBs
centres • Customised credit assessment procedures for effective
Customer first credit risk management
• Digitalisation leading to rapid growth
• Professional management, experienced leadership
Human and trained employee base
• Employee base
• Employee benefits
• Learning & Development Pride of performance
• Employee engagement
initiatives
Net savers
Mass and mass-affluent
customers
Intellectual Fair and transparent
Our
• RPA Bots
• API libraries
• Data analytics and Business
intelligence
value
• Underwriting model
• Cyber Security Framework
Ownership DEPOSITS
Social and Relationship

chain
• Customer base
• CSR beneficiaries Respect for people
• Business Correspondents (BC)
• Fintech partners
Strategic focus areas
• S1 • S4
• S2 • S5
• S3 • S6
34
.
Output Outcomes SDGs
Financial
• Net Profit: J281 Cr • ROA: 1.10%
• GNPA: 4.06% • ROE: 7.75%
Net interest • NNPA: 2.37%
income
` 2,039 Cr
Our offerings/ Manufactured
segments • Large network of banking outlets in the
• Inclusive Banking SFB sector with an equally large ATM
network
• Emerging Enterprise
• Enhanced customer-centricity
Banking
• Consumer Banking
Human
• NBFC Financing and MSE • Employee base of 17,607 as on March 31, 2022
• Outreach Banking Non-interest • 68,788 man days of classroom learning
income programmes conducted in 2020-21
` 538 Cr • Achieved an average of 4.30 man-days per
employee this year
• Women employees constitute 11% of the total
workforce of the bank
Intellectual
• Our Mobile App is powered with first-in-
Net creditors
industry features like facial recognition
Bottom of the Total advances • Launched video KYC for customers and
pyramid customers opening of savings bank accounts through
` 20,597 Cr video call during 2020-21
• 21 Lakh+ accounts sourced digitally in 2021-
22
• Our on-boarding process is digitised which
enabled us to seamlessly onboard new
employees remotely
ADVANCES
Total deposits*
` 18,951 Cr Social and relationship
• 45,24,240 CSR beneficiaries
• Supported 54,897 people with disabilities
in 2021-22 under the Micro Finance loan
programmes
• 27,002 beneficiaries from health & eye
check-up camps
• Over 5,700 students enrolled across 8 schools
• 25,204 candidates placed through job
placement fairs
• 21,072 beneficiaries skill trained

Company Overview
STRATEGY
Fortifying the future.

With digital prowess.
At Equitas, we are building the bank of the future by deploying key growth
levers, leveraging the changing technology landscape and sharpening
competitive edge in borrowing costs. We view fintechs as complements
to our own strengths, and not as competitors, thereby entering into robust
partnerships to drive innovation and engagement at scale.
Focus areas
Become a dominant lender Leverage changing technology Sharpen competitive

in formalising economy landscape to drive growth advantage with lowering
• Widen penetration of • Think like a fintech to propel cost of funds
existing product segments innovation and engagement
• Introduce consumer loans as • Develop a truly seamless

liability franchise scales up phygital business model
Digital theme in focus

Each theme to accelerate acquisition, customer revenue accretion and cross sell opportunity:
Payments MSME AI Led

E-commerce
Architecture
Financing
Sourcing
Enabled
Finance
Market
Retail
Open
Open
Merchant Digital Insure-tech,

Pay Lending Wealth-tech
Business Micro Self

Management Lending Servicing
Technology Enablers API Factory Product to Platform approach Cloud & Data Analysis
36
Digital banking
NeoBanking
The programme was launched to facilitate
completely digital, instant and hassle-free
customer onboarding, seamless payments and
investment options. We have launched some
remarkable programmes within a short span of
time, with a few others in the pipeline.
[refer to page 44 for details on partnerships]
Digital payments and acquisitions Digital channels

Our digital payments and acquisitions We will continue to improve our Internet
business continue to demonstrate strong banking (retail and corporate), Mobile banking,
traction, driven by identification and Social Media banking, Bot banking etc.,
implementation of varied use-cases through through technological innovations and with
partnerships. We have identified new the addition of newer features. A three-step
business models with our partners and approach to improve Mobile and Internet
have implemented a minimum business banking applications:
guarantee model to ensure product viability
• Consistent delivery of basic services
and operational efficiency. Further, we
• Improvement in UX at par with best-in-
have brought down the operational cost
class apps
for payment products through commercial
• Additional features/services
renegotiations with vendors and technology
service providers.
Digital transformation Digital and Transaction Banking products

We have automated key customer journeys Digital as well as Transaction Banking products
for seamless execution. We have a dedicated include all use case-driven products such as
Centre of Excellence for internal digitisation Transit solution, Smart City solution, Electronic
and innovations, with a focus on key business Public Distribution system, government subsidy
products. The goal of the transformation will programmes, Public Fund Management System
be to make Equitas a more agile and nimble- (PFMS), cashless campus, fees payment bridge
footed processor. and other ecosystem banking-based solutions.
These products form a key pillar in our
digital strategy.

Company Overview
RISK MANAGEMENT
Mitigating challenges.
With agile response.
At Equitas, we have adopted an integrated and balanced
approach to risk and reward, mitigating potential loss or damage
while optimising growth opportunities. We aim to align capital
to business strategy, to protect our financial strength, reputation
and ensure support to various business activities, while enhancing
stakeholder value.
Our risk management comprises ‘three lines of defence’, which ensures that risk management is
part of the culture, and is effectively cascaded throughout the organisation. This multi-layered
structure augments our risk evaluation and management capabilities while providing the flexibility
to adapt effectively to the changing business and regulatory environment.
Three Lines of Defence Approach
Governing Body/Board/Audit Committee
Senior Management
First Line of Defence Second Line of Defence Third Line of Defence
Executives or risk Risk Management, Audit

control units Finance and Compliance function
functions
38
Risk Management
The Risk Management department Board of Directors
is headed by the Chief Risk Officer
(CRO) who reports directly to
the Managing Director and
is responsible for identifying,
measuring, monitoring and Audit Committee of Board
managing risks. The function
primarily addresses credit risk,
operational risk, ALM and market
risk, and information security risk. Risk Management Committee
We have built a risk management
framework for each of the key risk
areas as per the guidelines laid down
Executive Risk Management Committee
by the banking regulator RBI.
Management Level Committee
Risk governance
The Board supervises the Risk
Management Committee (RMC) and
other management level committees
as part of the Risk Governance Credit Risk Management Committee
framework. The RMC is a Board-level
sub-committee, which decides risk Asset Liability Management Committee
policies and strategy for integrated
risk management containing various Operations Risk Management Committee
risk exposures of the Bank. We have
management level committees
to address various risks including Information Security Cyber Risk Committee
credit risk, ALM and market risk,
operational risk and information
security risk.
The Audit Committee assists the

Board in carrying out its oversight
Risk Framework/Risk Appetite
responsibilities as they relate to
our financial and other reporting
practices, internal control, and
compliance with laws, regulations,
and ethics. From a risk management
Internal Capital Adequacy Assessment Process
perspective, it reviews the adequacy
of the Bank’s risk management Sensitivity and Stress Testing
policies and processes and reports to
the Board of Directors.
Risk Risk Limits Risk

Identification, and Risk Reporting
Assessment & Monitoring
Measurement

Company Overview
Winn
BEYOND BANKING
against all
40
ning
odds
Did you know that your money When we saw the difference
is powerful enough to create a that your money could make in
positive impact on the society? people’s life by providing them
Here is a life story of Shanthi – an identity, shelter and more, we
a pavement dweller and sole could feel the power of collective
breadwinner of her family, who good that we are spreading all
has fought against all odds to around.
raise her daughter and create
an identity of her own in life and
in the society. Shanthi is not just
a name; she is an epitome of
resilience and hard work.
Shanthi

Company Overview
SOCIAL – EMPLOYEES
Building a talent pool.

With the future in mind.
Staying true to our DNA, we continue to institutionalise and
internalise the Bank’s mission and core values among our
people. We strive to attract, develop and retain top talent
based on the two pillars of our people philosophy – Employee
Care and Employee Connect – to imbibe a culture of continuous
learning and improvement.
42
Attracting talent
We have digitised our
onboarding process to seamlessly
onboard new employees
remotely. A Management Trainee
programme was introduced
in FY22. The entire Campus
Connect and Hiring programme
was conducted virtually in
leading business schools
including IIMs. We look forward
to welcoming these dynamic
Management Trainees in exciting
roles at our Corporate Office.
Developing talent
During FY22, we developed a
robust Training Architecture to
identify the key learning needs
across diverse business roles.
Specialised Trainings Functional training programmes
The architecture captured the
We designed and developed a were focused on Selling Skills,
key learning priorities across
series of training programmes Products, Digital Solutions,
various stages of their career.
focusing on two broad areas – Process, Systems & Software,
Further, regulatory mandated
behavioural and functional. Risk, Credit and Legal aspects.
trainings are provided and
These programmes were We also collaborated with the
completed through continuous
delivered using in-house Manipal Institute of Banking and
monitoring across the areas of
capability as well as external Confluence Learning to strengthen
Risk, Finance, Credit, Treasury,
partners. Some key external the capabilities of our branch
POSH Compliance, Information
interventions include – staff in the areas of Relationship
Security, Code of Conduct,
programmes for Regional Management, Cross Selling,
Prevention of Insider Trading and
Managers and the Digital Wealth Management, Productivity
Prevention of Fraud.
Solutions team. Enhancement and Regulatory
Compliance, among others.
Employees completed Participants across
mandated KYC training 44 behavioural sessions Training man-days recorded
in FY22, up 30% from FY21
100 % 525 68,788

Average man-days per
employee clocked
Great Place to
4.3
Work certified Culture ‘awareness’ workshop
Our relentless efforts to build a values-based thriving
Our HR team has delivered 361
workforce was recognised in the industry. Equitas was
culture workshops comprising
certified as a Great Place to Work by the Great Place to Work
6,428 employees till date. We
Institute for the period February 2021 - February 2022. It
institutionalised two special
was also awarded the Best Place to Work in India 2021 in the
cultural awards that were launched
category of Mid-size Banking Companies by AmbitionBox.
and rolled out during FY22.
[For more details on our people initiatives, please refer to Management Discussion and Analysis section of this report.]

Company Overview
SOCIAL – PARTNERS
Forging alliances. With

a win-win proposition.
At Equitas, we recognise the need for strategic alliances and
partnerships to drive sustainable growth. With digitalisation at the
heart of our business strategy, we forge partnerships of mutual benefit
with fintech companies, which provides ready access to disruptive
technologies while driving growth across business segments.
44
Major partnerships
FinTech Infrastructure
In addition to partnering with Groww We have partnered with 2-3 major
and Open in the fintech space, we tied players for micro-ATM services, such
up with Niyo to offer our customers a as Paynearby and Spice Money, to up
2x1 investment-cum-savings account, our digital game across our primary
where the banking products are offered markets. Further, in order to provide
by us and the mutual fund account is prepaid card to our customers, we are
provided by Niyo, at zero commission. collaborating with another FinTech
The primary target group of this product company. We are also working on
are millennials. improving our API banking with the
help of 5 such collaborative partners.
Partnership Highlights
Neo Banking - Live Partnerships Digital Payments and Prepaid Engagement
Acquisitions
• 20 Lakh+ new
• 13.8 Lakh accounts opened cards issued
• CASA balance of ` 343 Cr NETC - FASTag • 6.8 Cr transactions
• 1.26 Lakh new Fastags issued • 2,433 Cr transactions
• 500 Cr issuer transaction value processed
value processed
• 1,700+ FDs opened

• Balance of ` 8 Cr
Micro ATM
• 5.3 Cr transactions
• 328 accounts opened
• 15,500 Cr transaction
value processed
Equitech – The Fintech Accelerator Programme

Equitech is a visionary initiative to build a collaborative platform for co-creating meaningful and innovative
financial solutions with new-age fintechs/startups. We have selected 7 start-ups for the cohort, which will
conclude in FY23. Each start-up has been assigned a unique problem statement to come up with innovative
product offerings in a differentiated customer segment.

Company Overview
SOCIAL - COMMUNITY
Empowering progress.
With responsibility.
When we started our journey 15 years back, we made a
commitment to spend 5% of net profit on social initiatives. The
vision of the founding team was to provide holistic empowerment
to women at the bottom of the pyramid by improving the quality
of their lives and those of their families, providing access to better
healthcare and educational opportunities for their children.
We have not only stayed true to that vision, but our reach and
impact have expanded multi-fold.
46
Decoding the vision

Based on its extensive work
experience, the founding team
realised that while improving income
is critical to empowerment, it could
be derailed by sudden expenditures
on medical interventions. We
thus focused on preventive
health programmes, along with
education and employment related
interventions, to deliver the desired
impact. We believe such initiatives
will go a long way in addressing
the inherent vulnerability of
such societies.
Social Framework
Improve their family

income by enabling
them to engage in
multiple activities
Medical
interventions
Increase Decrease
Improve their
household expenditure
vocational skills
income
Food security
programme
Enable employment
for unemployed youth
through job fairs
Better Investment
housing in education
Quality of Life

Company Overview
The Equitas Development Initiative Trust (EDIT) was set up to undertake our social and community
development initiatives.
EDIT focus areas

Health Activities
Objective: Amidst the pandemic, the • Health education and health
importance of a healthy and hygienic lifestyle camps to raise awareness
has only become more relevant. At Equitas,
• Sugam Clinics
we realise the adverse impact of an unhealthy
lifestyle, especially for people earning daily
wages. It can be extensive, even leading to
loss of income.
Education Activities
Objective: At Equitas, we recognise the • Equitas Gurukul Schools
importance of education. Education forms the
• Centres of
base of a strong community. Hence, providing
Academic Excellence
quality education plays a pivotal role in
creating a self-sustained and strong society. • Partner Schools
Employment Activities
Objective: With the increasing population • Home-based skill training
across the country, employment has been for women
of the biggest concern. At Equitas, we
• Job fairs for
recognise this concern and try to address it by
unemployed youth
generating employment opportunities for the
young population.
48
41,000+
Supporting the world’s largest vaccination drive
With the belief that no one is safe from the pandemic until everyone is, the
Government of India, along with state governments, decided to accelerate the Vaccination camps organised
vaccination drive. However, vaccinating a nation of almost 1.4 billion in record in FY22
time required concerted efforts across every echelon of the society. Further,
due to lack of awareness, there was significant vaccine hesitancy among
44,62,729
community members. As we were unable to hold regular medical and health
camps on the ground due COVID-related restrictions, we converted the health
camps into vaccination camps across Tamil Nadu, while the state government
People vaccinated across the
provided vaccines free of cost, along with health workers to administer the
camps through FY22
doses. Further, we leveraged our ecosystem to drive vaccine awareness.
EDIT impact since inception
25,60,939 1,18,186 32,712

Eye-camp participants Spectacles distributed for free Cataract operations
sponsored
38,60,389 5,84,014 2,23,929

Other medical camps Participants in skill training Placements for unemployed
organised programmes youth
3,11,890 2,229 For more details refer to Management

Discussion and Analysis section of this
Swasth Mahila Health Equitas Birds Nest (pavement report.
Education dwellers’ rehabilitation
programme)

Company Overview
GOVERNANCE
Leading into the future.

With experience.
Board of Directors
Arun Ramanathan Vasudevan Pathangi Arun Kumar Verma

Part-time Chairman and Non- Narasimhan Non-Executive Independent
Executive Independent Director (AR) MD & CEO (VPN)) Director (AKV)
Committees Committees Committees
Skills/Expertise 1 2 3 8 Skills/Expertise 2 3 4 Skills/Expertise 2 3 4
Narayanaswamy Navin Avinashchander Puri Narasimhan Srinivasan

Non-Executive Non-Executive Independent
Balakrishnan
Independent Director (NAP) Director (NS)
Non-Executive Independent
Director (NB)
Committees Committees Committees
Skills/Expertise 6 7 Skills/Expertise 1 2 6 7 Skills/Expertise 1 2 8
50
Board demographics
Number of board meetings Board attendance Board committee attendance
18 95.54% 96.13%
Board independence
Number of Number of non- Term limit of
independent directors management directors independent directors
9 9 8 Years
Committees of the Board

Audit Committee
Nomination and Remuneration Committee
Stakeholders’ Relationship Committee
Corporate Social Responsibility Committee
Risk Management Committee
Vinod Kumar Sharma Ramesh Rangan
Merger Committee
Non-executive Independent Non-executive Independent
Director (VKS) Director (RR) Chairperson Member
Committees Committees
Skills/Expertise
Skills/Expertise 1 3 5 6 7 Skills/Expertise 1 2 8
1 Banking
2 Business Strategy, Sales, Marketing
& Administration
3 Accounting & Finance, Taxation
4 Law
5 Human Resources
6 Information Technology
7 Research & Risk management
8 Rural Economy, Small Scale Industry
& Agriculture
Other committees of
our Bank
In addition to the committees mentioned
above, our Bank has constituted various
Geeta Dutta Goel Samir Kumar Barua other committees, such as, Business
Non-executive Independent Non-executive Independent Committee, Customer Service Committee,
Information Technology Strategy
Director (GDG) Director (SKB)
Committee, Credit Committee, Special
Committee of Board for Monitoring High
Value Frauds, Review committee for
Committees Committees identification of Wilful Defaulters, Policy
1 2 3 8 formulation Committee and Committee
Skills/Expertise Skills/Expertise 1 2 3 7 8
of Independent Directors to oversee and
govern various internal functions and
activities of the Bank.

Company Overview
Leadership Team
Vasudevan Pathangi Sridharan N

Narasimhan Chief Financial Officer
MD & CEO
Murali Vaidyanathan Rohit Phadke

Senior President & Country Head Senior President &
Branch Banking, Liabilities, Head Assets
Products & Wealth
Natarajan Sibi PM
Muthusubramanian Chief Risk Officer
Head Treasury
52
Pallab Mukherji Dheeraj Mohan Narayanan E

Chief People Officer Head of Strategy, Chief Information Officer
Investor Relations, BI and CX
Vivek Dhavale Sivapprakash VS Siby Sebastian

Chief Technology Officer Head – Internal Audit President & Head –
Operations & Infrastructure
Sethupathy S Srinivasan Purohit Sampathkumar K.

President - Process and Chief Compliance Officer Raghunathan
Quality Assurance Company Secretary and
Compliance Officer

Statutory Reports
Management
Discussion & Analysis
Global Economic Overview Further, the government’s focus on public
investment-led capex to crowd in private
The year 2021 was characterised by
investment, bodes well for overall sentiment.
uncertainty and volatility as the pandemic
continued to shift shape and form and
However, the rural economy that had led the
impacted life with varied intensity. Although
recovery following the first wave remains
global economic output grew by 5.5% in
under stress while soaring oil prices, high cost
2021, recording the sharpest post-recession
of raw materials, supply chain constraints
rebound in decades, the recovery remained
weigh heavily on the growth trajectory.
non-uniform across advanced, emerging and
The RBI in its April 2022 Monetary Policy
developing economies. The divergence in
Committee (MPC) meeting revised its FY23
recovery could be attributed to the varied pace
inflation forecast to 5.5% from 4.5% but kept
of vaccination and the magnitude of fiscal or
its policy rate unchanged. The Central Bank,
monetary policy support extended by Central
however, returned with a 40 bpsoff-cycle rate
Banks and Governments.
hike in May, 2022 ending its accommodative
policy stance adopted since March 2020 to
As the world prepared to leave the worst
support the economy caught in the pandemic
of the pandemic behind in the first quarter
storm. The RBI is likely to adjust rates “in
of 2022, the Russia-Ukraine conflict
coordination with government’s fiscal
significantly pushed up global crude oil prices
measures” to check inflation.
and dampened trade sentiment with the
imposition of economic sanctions by western
The Indian economy has demonstrated its
nations on Russia, one of the world’s largest
resilience over the past two years of the
producers of oil and gas. Further, rising
pandemic and is on a firmer foundation
inflation on the back of continued supply
maintain a growth path and, at the same
chain challenges, elevated commodity and
time, deal with future external shocks.
freight costs, coupled with the emergence of
The near-term is likely to be volatile.
new virus variants, poses significant threat to
the fragile economic recovery. The possible
acceleration in the US rate hike cycle to rein
in inflation could increase volatility in the
forex markets.
India’s GDP trend (%)
Indian Economic Overview FY24F 7.2
In FY22, India’s economic output rebounded
sharply by 8.8%, after contracting 6.6% 8.7
FY23F
in FY21 following the pandemic-induced
disruptions. Despite the overwhelming FY22F 8.8
negative impact of the second wave of
the pandemic especially in rural India, the FY21 (6.6)
economy demonstrated resilience and
returned to growth path, aided by rapid FY20 3.7
vaccination and continued policy support
through various initiatives of Government Source: CSO, RBI
54
population (including individuals

Small Finance Bank and small businesses) since their
Addressable credit gap
(SFB) Industry Overview NBFC days, SFBs have carved a niche
Despite banking sector liberalisation
in 1991 and a series of new bank
license issuances since then, financial
in financing the low-Income self-
employed segment. SFBs operate
in four major segments with strong
`25.8 trillion
Credit gap in MSME space
penetration in India remained low. growth potential – MSME finance,
The RBI formed a committee led by vehicle finance, microfinance and
Dr. Nachiket Mor to boost financial affordable housing loans. There are
`8.0 trillion
penetration and provide banking 6.3 crores MSMEs in India, employing
services to the nation’s underserved 11.1 crores and contributing ~30%
and unserved population and to GDP. As per Industry estimates
solicited its recommendations. (MicroSave Report), total addressable Credit cap in micro
The Committee recommended demand for loans is `56 trillion while
supply is about `30 trillion, leaving
enterprises
differential licencing in the form of
Payment Banks and Small Financing a significant credit gap and thus an
Banks. In 2014, in line with the untapped opportunity for SFBs.
`16.8 trillion
recommendations, the RBI released
guidelines for a new class of banking With a digital first mindset, deep
entity called ‘Small Finance Banks’. distribution reach, focus on secured,
small-ticket loans, SFBs are not only
On September 16, 2015, the central
expanding the market size but are
Credit gap in small
bank awarded 10 SFB licenses of
which 8 were NBFCs. As of March also attracting market share from enterprises
2022, twelve SFBs were operational the larger and more experienced
in the country. private and public sector incumbents
Source - IFC
at a rapid pace. They are well
With years of experience in positioned to address the outsized
servicing underserved and unserved credit gap in small-ticket loans across
customer segments.
Performance SFB AUM Trend (` Cr.)

SFBs’ total advances clocked a 26% CAGR during
FY16-21. The top three (Equitas, AU & Ujjivan CAGR FY16-21=26% CAGR FY21-24 = 22%
SFB) accounted for ~60% of the aggregate AUM
as of FY21, up from 55% as of FY17. These three 2,15,000
players logged a 29% CAGR during the period.
According to CRISIL Research, the sector’s loan 1,19,100
portfolio is likely to see a strong ~22% CAGR 99,500
73,800
in the near term as most of the SFBs have 44,400 51,400
completed their transition phase and are likely
to benefit from operating leverage. FY17 FY18 FY19 FY20 FY21 FY24F
Immediately after commencing operations, all Source – Report on Trend and Progress of Banking in India 2020-21,
SFBs focussed on increasing their deposit base. Crisil Research
Their overall deposit base doubled to around
`375 billion, as of FY19, and further to `877 SFB Deposit Trend (` Cr.)
billion in FY21. Share of CASA deposits increased
from ~20% in FY20 to ~30% in FY21. 40-45% CAGR
During FY21, SFBs’ aggregate deposits grew 2,38,600

by 40%. CRISIL Research expects SFBs’ deposit
to record a 40-45% CAGR over FY21-24 as
players focus on popularising convenient
87,700
banking habits to cover the last mile and widen 62,500
35,500
financial inclusion by deepening penetration in 16,700
untapped geographies.
2018 2019 2020 2021 2024P
Source: Company reports, CRISIL Research

Statutory Reports
Management Discussion & Analysis (Contd.)
Industry Growth Drivers
Untapped opportunity
in the rural segment Presence of informal
Despite its larger contribution to
credit channels
GDP of 47%, the rural segment’s In remote areas, informal credit
share in credit remains fairly low channels have a major presence.
at ~9-10% of the overall credit In other words, there is a huge
outstanding. This provides a huge section of unbanked population.
market opportunity for SFBs and SFBs have an opportunity to tap this
other players present in the segment market
Loan recovery and

control on aging NPAs
SFBs are experienced in collection
Geographic and monitoring of default risk.
This will help them keep asset
diversification quality under check
With increased focus on diversifying
their portfolio and expanding their
reach, SFBs are expected to log
higher growth as they tap newer
geographies
Access to low-cost
funds & huge cross sell opportunity
SFBs’ cost of funds is substantially low, having been granted scheduled banks status, as
they are allowed to raise CASA deposits and participate in various RBI windows. This will
also help them lend at more reasonable rates to its customers, hence enhancing their
cross-sell opportunity in terms of asset products, insurance etc. As a result, SFBs can forge
meaningful partnerships with various entities to achieve exponential growth and take
benefit of various RBI regulations that support the same
56
Performance of Key Segments
Small Business Loans • Disbursements of small business loans of lower than

`10 lakhs ticket size declined by as much as 57% year-
The sheer size of the gap between the supply and
on-year to `468 billion in fiscal 2021 on account of
demand of credit and the number of enterprises
Covid-19
impacted indicates a veritable opportunity in financing.
According to CRISIL Research small ticket size secured
(SORP – self occupied residential property) small business Penetration of small business loans is increasing in
loan market potential is estimated smaller cities
at `22 trillion. Examples of such businesses include • Over the years, share of smaller cities has increased in
provision stores, building materials stores, tea shops, the small business loans segment owing to increasing
vegetable vendors and others. penetration of financial services and players focusing
on the underserved customer segment.
The small business in manufacturing and services include
small fabrication units, machine tools manufacturers • Share of loans outside top 50 cities increased from
(using lathe machines), tailors, saloons, gym owners, 58% in fiscal 2017 to 64% in fiscal 2021. Small business
vehicle service centres, etc. loans portfolio in smaller cities has grown at a
relatively high CAGR compared to that in top 50 cities.
Small Business Loans of less than `10 lakhs ticket

size Share of new to credit customers has been
increasing in small business loans segment
• CRISIL Research estimates outstanding small business
loans given out by banks and NBFCs to be around `1.7 • Share of new to credit (NTC) customers has increased
trillion as of March 2021 over the years, indicating rising penetration of
small business loans. Overall, share of new to credit
• Small business loans grew at a fast pace with the customers in the small business loan segment with
portfolio registering a CAGR of 36% over fiscal 2017 ticket size less than `10 lakhs increased from 9% in
and 2020 fiscal 2017 to 25% in fiscal 2020.
Vehicle Finance
• In FY21, the Commercial Vehicles (CV) • In Q2FY22, chip shortage impacted pickup
industry faced its biggest challenge in the sales with volumes declining 9% year-on-
form of COVID-19. The COVID-19 outbreak year limiting LCV sales volumes to increase
hit freight demand, significantly impacting marginally by ~2% year-on-year (pickups
CV sales volume in FY21. In addition, weak account for ~55-60% of total LCV volumes)
private consumption hampered demand for and ~49% quarter-on-quarter. MHCV
both LCVs and MHCVs. In FY22, volumes were volumes, however, fared better with ~82%
to improve over a low base; however, the quarter-on-quarter and ~117% year-on-year
recovery was lower than anticipated due to growth in volumes in Q2FY22.
the continued effect of the pandemic as well
• Volumes remained robust in Q3FY22 amidst
as chip shortage.
the festive season with ~18% and ~17%
• The second wave of COVID-19 led to q-o-q growth, respectively, in the LCV and
lockdowns in key affected regions in Q1FY22. MHCV segments.
This impacted volumes across segments post
• Volumes in Q4FY22 improved marginally
a healthy Q4FY21. Consequently, LCV, MHCV
on a sequential basis, aided by recovery
and bus volumes declined ~42%, ~63%
in infrastructure activities in line with the
and ~43% quarter-on-quarter in Q1FY22,
economic recovery.
resulting in ~50% sequential decline in overall
CV volumes.
Domestic CV sales trend

Domestic Sales FY20 FY20 FY21 FY22P FY23P
Segments Volume Growth Growth Growth Growth
LCV 3,95,783 -21% -12% 9-14% 9-14%
MHCV 1,53,366 -47% -17% 37-42% 12-19%
Bus 19,388 -6% -77% 50-55% 87-92%
Total CV 5,68,537 -29% -21% 18-23% 13-18%

Statutory Reports
Affordable Housing Finance

The housing shortage in India is estimated to credit opportunity if the entire housing
increase to 100mn units by 2022 as compared shortage is addressed is estimated at `50-60
to ~25mn units in FY07 where in 95% of the TN i.e. approximately 3 times the existing
housing shortage is expected to be in EWS and housing finance market.
LIG segment. The total incremental housing
Category Shortage (mn) Value of units (` tn) Aggregate loan demand (` tn)
EWS 45 34 5
LIG 50 75 30
MIG & Above 5 40 22
Total 100 149 58
Historically, companies in the Affordable The long-term growth outlook for the
Housing Finance segment had been growing segment remains favorable, given the large
at high rates in comparison to overall housing underserved market, favorable demographic
credit, partly aided by the lower base and profile, housing shortage and Government
support from the Government’s thrust on support in the form of tax sops and subsidies.
‘housing for all’
Micro Finance
The industry loan portfolio stands at `2.85 In addition, NABARD SHG Bank Linkage
Lakh Crore, as of March 31, 2022, with 11.3 Programme (SBLP) makes significant
Crore active loan accounts and 5.8 Crore contribution, with around 57.8 Lakh SHGs
unique borrowers. Banks hold the largest having an outstanding loan portfolio of
share at 40% in the micro credit universe with `1,03,290 Cr. The Top 10 states constitute
total loans outstanding at `1,14,051 Crore. 82.4% of the gross loan portfolio (GLP),
NBFC-MFIs are second largest providers with with Tamil Nadu being the largest in terms
a 35.2% share and total loans outstanding of portfolio outstanding followed by Bihar
of `1,00,407 Crore. SFBs, with total loans and West Bengal. With regard to average
outstanding at `48,314 Crore account for loan outstanding per unique borrower, West
16.9% while NBFCs and Other MFIs constitute Bengal leads with `53,708 followed by Kerala
6.9% and 1.0% of the micro lending with `46,074.
universe, respectively.
MSE Finance
The MSME segment was hit the hardest by Public Sector Banks (PSBs) have traditionally
the pandemic. The government stepped up been the dominant lenders to MSMEs. In the
support, along with the RBI, to enable these last few years, private banks and NBFCs have
businesses tide over the crisis. In 2021, the managed to get a larger share of MSMEs
definition of MSMEs was modified while from PSBs. PSBs, domestic private banks and
the ECLGS was extended till March 31, 2023. NBFCs+HFCs have ~50%, ~32% and ~7.5%
Further, proposed changes in CGTMSE, share, respectively, as on November 2021.
restructuring, stressed MSME scheme and
current account opening guidelines relaxation
Formal sources of funding
bode well for the sector. The implementation
of ECLGS led to an increase in credit within MSME lending accounted for ~25% (`23 Lakh
the ‘existing to bank’ customer segment, Crore) of the total commercial credit exposure
with `2.3 Lakh Crore disbursed as part of the in the Indian banking system, as on November
Aatmanirbhar Scheme. 30, 2021.
58
On balance sheet commercial credit exposure
Type Amount (` Lakh Cr) Delinquency
Very Small (<`10 Lakh) 1.02 16.75%

Micro 4.40 10.77%
Small 9.07 11.07%
Medium 8.32 16.30%
Large 71.95 15.66%
Total 94.72 15.82%
Source: TransUnion CIBIL Commercial Lending Overview
About Equitas Small Finance Bank underserved segments continues to be its core focus.
The Bank is well positioned to capitalise on exponential
Equitas Small Finance Bank (Equitas Bank) is one of
industry growth potential while contributing to
the largest small finance banks in India. As a new-age
the national.
bank in one of the fastest growing economies, Equitas
Bank offers a bouquet of products and services tailored
to meet the needs of its customers – individuals with
limited access to formal financing channels, as well as
affluent and mass affluent, Micro, Small & Medium
Enterprises (MSMEs) and corporates. The Bank’s firmly
entrenched strategy focuses on providing credit to
the unbanked and underbanked micro and small
entrepreneurs, developing products to address the
growing aspirations at the ‘bottom of the pyramid’, Financial Performance
fuelled by granular deposits and ‘value for money’
banking relationships. The Bank delivered a robust performance in FY22. Net
interest income increased 13.38% y-o-y to `2,038.53
The Bank’s asset products are suited to a range crores, from `1,797.96 crores. Non-interest income
of customers with varying profiles. These include grew by 28.59% y-o-y to reach `537.56 crores from
provision of small business loans comprising loan `418.05 crores.
against property, housing loans, and agriculture loans
to micro entrepreneurs, microfinance to joint liability Operating expenses rose to `1,704.14 crores from
groups predominantly comprising women, used and `1,329.43 crores. The Bank increased its employee
new commercial vehicle loans to drivers and micro- strength, which resulted in higher staff expenses.
entrepreneurs, MSE loans to proprietorships, and loans The cost-to-income ratio came in at 66.15% compared
to non-banking financial companies (NBFCs). On the to 59.99% in the year earlier. Total provisions and
liability side, the Bank’s target customers comprise mass contingencies were at `493.84 crores, compared to
and mass-affluent individuals to whom it offers current `375.32 crores. The provision coverage ratio stood at
accounts, salary accounts, savings accounts, and a variety 42.73%.
of deposit accounts. In addition, the Bank provides non-
credit offerings comprising ATM-cum-debit cards, third As the second wave of pandemic dealt a strong blow to
party insurance, mutual fund products, and issuance economic activities in the first quarter of FY22 and in the
of FASTag. absence of moratorium available during the first wave,
the Bank restructured loans (RSL), which accounted for
Besides being technologically agile, the Bank has gained 9% of the loan book. High-risk RSL stood at 0.18% of
a pan-India presence, impacting the lives of its customers Gross Advances, with no further stress in asset quality
through diversified loan portfolios, comprehensive expected outside the RSL pool. Gross Non-Performing
banking services and non-credit offerings. While the Assets (GNPA)* were at 4.06%, as against 3.59% in FY21.
Bank’s business model has transitioned over the years, Net NPA stood at 2.37%, as against 1.52%.
providing sustainable credit to the unserved and
*GNPA on advances including IBPC

Statutory Reports
Profit before tax came in at `378.11 crores. After providing for Income Tax of `97.38 crores, net
profit came in at `280.73 crores compared to `384.22 crores during the previous year. RoA was at
1.10% and RoE was at 7.75%. As on March 31, 2022, the Bank’s total balance sheet size stood at
`26,951.90 crores, up from `24,708.47 crores, as on March 31, 2021.
Profit & Loss Summary

` Cr
FY22 FY21
Net interest income 2,038.53 1,797.96
Non-interest income 537.56 418.05
Operating revenue 2,576.09 2,216.01
Operating expenses 1,704.14 1,329.43
Operating profit 871.95 886.58
Provisions 493.84 375.32
Profit before tax (PBT) 378.11 511.26
Provision for tax 97.38 127.04
Profit after tax (PAT) 280.73 384.22
Key Ratios
%
FY22 FY21
Yield on advances 17.62 18.66
Cost of funds* 6.78 7.43
Spread 10.84 11.23
Net interest margin (NIM) 8.54 8.44
GNPA 4.06 3.59
Credit cost 2.60 2.26
Provision coverage 42.73 58.59
NNPA 2.37 1.52
ROA 1.10 1.70
ROE 7.75 12.70
Balance Sheet
` Cr
FY22 FY21
Capital and liabilities
Capital 1,252.03 1,139.28
Reserves and surplus 2,994.14 2,257.06
Deposits 18,950.80 16,391.97
Borrowings 2,616.40 4,165.32
Other liabilities and provisions 1,138.53 754.84
Total 26,951.90 24,708.47
Assets
Cash and balances with RBI 956.99 514.81
Balances with banks and money at Call and short notice 1,175.52 2,863.90
Investments 4,449.85 3,705.17
Advances 19,374.21 16,848.19
Fixed assets 200.44 185.05
Other assets 794.89 591.35
Total 26,951.90 24,708.47
*Opening + closing average
60
Business Review
Advances
Particulars (` Cr) FY22 FY21 YoY %
Small Business Loans (incl. Housing Finance) 9,521.91 7,971.14 19.46%

Vehicle Finance 5,046.97 4,530.11 11.41%
Micro Finance 3,906.81 3,235.73 20.74%
MSE Finance (Working Capital) 1,163.94 1,179.91 (1.36%)
Corporate Loans 758.42 782.66 (3.10%)
Others* 198.86 225.25 (11.72%)
Total 20,596.91 17,924.80 14.91%
*Note: Others includes loan-against-gold, unsecured business loans, overdrafts against fixed deposits and staff
loans.
Liabilities
Particulars (` Cr) FY22 FY21 YoY %
Demand Deposits 772.15 520.07 48.47%

Savings Bank Deposits 9,083.22 5,093.76 78.32%
Term Deposits 9,095.43 10,778.14 (15.62%)
Retail Deposits 7,093.02 5,868.83 20.86%
Bulk Deposits 2,002.41 4,909.31 (59.22%)
Total Deposits 18,950.80 16,391.97 15.61%

Statutory Reports
Information Technology • Adoption of agile development

methodologies to stay ahead in digital/
The banking industry is moving towards a
FinTech space
customer-centric business model where leaders
are looking at scaling volumes using partner- • Improving network efficiency and
driven businesses; this can be delivered using availability across branches
a service-oriented architecture. Open banking
• Improving speed and efficiency of accessing
is also gaining popularity. It is necessary for
varied datasets, empowering corporate
Equitas now to embark on new technology
decision-makers with insights to formulate
trends to leverage the power of social, mobile,
business and marketing strategies
analytics and cloud. Envisaging the above,
the Technology team at Equitas has chosen a • Effective customer acquisition system to
path towards architectural transformation for automate decisions and allow straight
infrastructure, applications and information through loan processing
security using cutting-edge tools.
• Upgrade of core banking software,
environment software and hardware
Increased digital footprint has resulted in more
(nearing end of life/end of support) around
and more online, non-physical interactions
core banking
with customers, which emphasises the
need to provide a safe and secure platform • Further strengthening risk-weight
to build customer confidence. The Bank scoring in line with BASEL II norms as per
has laid a strong foundation for ensuring NCAF guidelines
information and cyber security, which it
• Early warning signal implementation for
aspires to take to the next level. The team
customer exposure above `3 crore basis loan
is in the process of defining a risk approach
data as well as data in public domain
that focuses on enabling quick delivery,
near zero vulnerabilities during deployment,
Focus areas – FY23:
addressing data leakage in channels, advanced
system behaviour-based detection, threatless • Private and public cloud initiatives
end devices, frameworks for upcoming • State-of-the-art unified CRM (Sales +
technologies and regulatory compliance. The Service)
key projects include – Big Data & Analytics,
Cloud Initiatives, Customer 360, and Loan • Enhance customer experience (CX) for
Origination Systems. internet banking and mobile banking
• Rehash ESB – for seamless API integration
Initiatives – FY22 and API monetisation
• Technology innovation, state-of-the-art
infra with ample network bandwidth for
scalability, futuristic partnerships and
disruptive business models
Treasury Operations secondary), focusing on additional revenue

Treasury primarily focuses on funds generation and diversification. During the
management and maintenance of statutory year under review, Treasury raised funds
reserve ratios and Basel ratios comprising Cash using a mix of instruments such as Inter Bank
Reserve Ratio (CRR), Statutory Liquidity Ratio Participatory Certificates (IBPCs) and refinance
(SLR), Liquidity Coverage Ratio (LCR) and Net from financial institutions at optimal cost.
Stable Funding Ratio (NSFR). Treasury manages Treasury functions as the Bank’s interface
liquidity risk by maintaining sufficient liquidity with market counterparts and has successfully
under the LCR framework set out by ALCO. leveraged excellent relationships with them, to
Investments in SLR securities and non-SLR aid fund raising and other activities. Treasury
securities are maintained in compliance with also closely works with the Liabilities team
regulatory norms as well as the Bank’s Treasury to aid deposit mobilisation while optimising
and Investment Policy. Treasury is active in cost of funds and seeking to broad base the
SLR trading and investments, generating Bank’s liabilities profile. Treasury raised funds
incremental revenue in addition to interest of `1,875 crores at an average rate of 4.22% as
income earned with focus on maximising against the average funding cost of 6.58%* for
portfolio yield. Treasury also participates the year.
in the equity market (both primary and
*daily average cost of fund

62
Risk Management Risk Management Committee, Asset Liability

Management Committee, Credit Risk
Managing risk is fundamental for ensuring
Management Committee, Operational Risk
sustained profitability and stability of an
Management Committee and Information
organisation. Risk management is the process
Security & Cyber Risk Committee – which
of identifying, assessing, and controlling
meet on a periodic basis to review the risks
threats to an organisation’s capital and
comprehensively in the respective areas. The
earnings and focuses on proactive approach to
bank has an independent risk management
manage both existing and emerging risks.
function headed by Chief Risk Officer.
The Bank views risk management as one of
During FY22, the Bank focused on further
its core competencies and endeavours to
strengthening its risk management framework
ensure that risks are identified, assessed, and
and implemented several steps to improve
managed in a timely manner. The Bank’s risk
the processes. The Bank carried out periodic
management framework aligns risk and capital
stress testing to measure the effect of the
management to business strategies; aims to
pandemic in order to gain insights on the
protect its financial strength and reputation;
impact of extreme situations on the Bank’s
and ensures support to business activities
risk profile and capital position. The Bank
for adding value to customers while creating
further enhanced its portfolio monitoring
sustainable shareholder value.
and analytics, data management and
information reporting capabilities. Assessment
The Bank has risk management structure
of liquidity and other risks was carried out
that augments the risk evaluation and
daily, fortnightly and monthly for effective
management capabilities while staying
liquidity planning and funding strategies. The
nimble to adapt to the changing business and
Bank’s operational risk management focused
regulatory environment in an efficient and
on adequate internal controls through the
effective manner. The Board of Directors has
Risk and Control Self-Assessment process to
the overall responsibility for management
strengthen the controls effectively. The Bank’s
and governance of risk and approves
Information Security management extended
the risk management policies. To ensure
its focus on strengthening data security
dedicated focus, the Board has delegated
measures to protect information from cyber
the responsibility to a sub-committee (Risk
threats. The Bank participated in the Category
Management Committee of the Board),
A of the cyber drill conducted by the Institute
which reviews the implementation of Risk
for Development and Research in Banking
Management in the Bank and monitors
Technology, an establishment by the RBI, and
the risk mitigation measures. The Bank has
achieved 100% detection of all cyber-attacks.
management-level committees – Executive
Compliance Compliance Department also provides

The Bank is committed to adhering to the advisory support by reviewing policies
highest standards of regulatory compliance, and products rolled out by the Bank and
governance and ethics. The Compliance has in place the required framework for
Department, headed by the Chief Compliance transaction monitoring and testing the
Officer (CCO), functions as an independent implementation of regulations. It also
unit to assist the Management team in oversees Governance structures and handles
identifying compliance risks across the Bank regulatory relationships, including proactively
and mitigating them by framing appropriate engaging with the regulators for industry-
policies, procedures and oversight. The level initiatives.

Statutory Reports
Internal Audit Audit of the Head Office Departments.

The Bank’s Internal Audit function provides Concurrent Audit is being carried out for
independent assurance to the Board of various areas like Treasury operations, KYC
Directors on an ongoing basis on the quality compliance, Payroll, Operations of central
and effectiveness of its internal controls, processing units, other expenditure etc.,
risk management, governance systems based on the risk assessment and regulatory
and processes. Internal Audit Department requirements. Despite the restricted mobility
undertakes various Audits like Risk Based during the year, Internal Audit was carried
Internal Audit (RBIA) of the branches, Credit out diligently and the reports were reviewed
Audit, Revenue Audit, Information System at appropriate levels and remedial actions
Audit, Thematic Audits and Management were taken.
Human Resources Overcoming the Pandemic

The Human Resources (HR) function equips the The Bank adopted a two-pronged approach of
diverse businesses and functions of the Bank medical treatment and support for employees
through relevant people policies, processes and their family members while facilitating
and services. At the forefront of all HR services and building awareness on vaccination
delivery stand the Core Values of the Bank. across its branches pan-India. Almost all the
FY22 was an equally challenging year as the employees are vaccinated with around 95%
previous year with the second and third waves of them being double vaccinated. The Bank’s
of Covid affecting the entire nation. The nimble and empathetic approach to the fast-
Human Resources (HR) function of the Bank developing situation on the ground helped
continued to demonstrate and deliver through employees overcome the challenges of the
the pillars of its People Philosophy – Employee second and third waves of the pandemic with
Care and Employee Connect. minimal disruption to banking services.
Talent Attraction
The Bank ended the year with an employee
Headcount details: strength of 17,607, up by about 6.2% from
last year. Women comprised 11% of the total
ESFB Headcount Details (as of March 31, 2022) workforce of the Bank. The Bank has digitised
Total employees 17,607 its onboarding process to seamlessly onboard
Employees on contractual basis for the year 6 new employees remotely. All new employees
Women employees 1,897
are contacted by HR periodically from their
date of selection in a structured manner to
help them settle down in their workplace
and address any challenges they may face.
HR continued to help cement a strong value-
based people culture across the organisation
through various learning interventions for
new employees.
The Management Trainee programme was

introduced in the Bank in FY22. The entire
Campus Connect and Hiring programme
was conducted virtually in leading business
schools including IIMs. The Bank looks forward
to welcoming these dynamic Management
Trainees during the first quarter in diverse and
exciting roles at its Corporate Office.
64
Talent Management Regulatory Mandated Training: Continuous monitoring

ensured the successful completion of Regulatory
The Bank completed the Annual Performance Review
Mandated training requirements. These trainings focus
in June 2021 for FY21 covering around 12,000 eligible
on areas such as Risk, Finance, Credit, Treasury, POSH
employees. The Performance Review process is based on
Compliance, Information Security, Code of Conduct,
the Bank’s Core Values of Fairness & Transparency and
Prevention of Insider Trading, Prevention of Fraud,
Pride of Performance. Its High Achiever’s Club (HAC)
among others. 100% of the Bank’s eligible employees
had around 950 employees in the year with consistent
successfully completed their mandated KYC training.
high-performance ratings, up from about 650 the
previous year.
• Specialised Training
As part of the Connect Program, the HR team ensured The training content and interventions focuses on
that every branch in the country was visited by HR at two broad areas i.e., Behavioural and Functional.
least once during the year, either virtually or physically. The organisation possesses the in-house capability to
They interacted with employees and helped provide develop and deliver the learning content as well as
solutions through collaboration with other functions. In seamlessly collaborate with external learning partners
FY22, the Bank continued the second year of ‘Sampark’ wherever deemed necessary.
where HR telephonically connected with every employee
Behavioural: An array of behavioural interventions was
in the Bank to enquire about their and their family’s
designed and delivered by tapping both in-house and
well-being and offer support wherever required. In
external capabilities. Some key external interventions
the Assets Division, the Potential Hero Program helped
delivered include – programmes for Regional Managers
employees at the branches improve their performance
and the Digital Solutions team. The Bank designed and
through focussed group discussions, mentoring
delivered 44 in-house behavioural sessions covering
and support.
525 learners.
The Bank hosted a series of programmes such as Functional: The market dynamics and evolving job roles
health camps for women employees, guest talks by determine the functional learning agenda. In-house
prominent women achievers, self-defence sessions and functional interventions were focused more on Selling
exciting contests to celebrate Women’s Day. Women Skills, Products, Digital Solutions, Process, Systems &
entrepreneurs from diverse marginalised communities Software, Risk, Credit and Legal aspects.
who were provided Skill Training by Equitas and
The Bank’s collaboration with the Manipal Institute of
supported with Micro Finance loans were invited to
Banking and Confluence Learning has strengthened
the Corporate Office to showcase their products. The
the capabilities of its branch staff in the areas of
‘SHEROS’ initiative was launched for hiring women for
Relationship Management, Cross Selling, Wealth
specific roles in the Bank.
Management, Productivity Enhancement, Regulatory
Compliance, among others. The Bank also partnered
Talent Development
with a world leader in the sector, Skillsoft to digitally
Learning & Organisational Development (L&OD) deliver key training initiatives.
continued to create a culture of continuous learning and
improvement by designing and delivering immersive, • Training Man-days
insightful and structured Talent Development initiatives:
The Bank clocked 68,788 training man-days in FY22, an
• Training Architecture (TA): During FY22, a robust improvement of about 30% as over the previous year. An
Training Architecture was developed to identify the average of 4.30 man-days per employee was achieved
key learning needs catering to diverse business roles this year, of which nearly 60% of the trainings were
constituting from Branch (Assets and Liabilities) delivered through the e-learning platform and 40%
and Centralised Processing Centre (CPC) teams. The were delivered through instructor-led programmes. In
architecture captured the key learning priorities FY22, training was provided to 15,722 unique employees.
of the Bank’s employees across various stages of
their career. • Culture Initiatives
• Induction and Regulatory Mandated Training: Equitas Bank is built on the bedrock of ‘Value Based
Culture’. Having a shared belief and core values system
Induction Campaigns: Every on-boarded new joiner has become an integral part of the Equitas DNA and
undergoes the ‘Induction program’ that facilitates them work structure ever since its inception. The team
in their quick integration with the Bank and fast tracks continued to help institutionalise and internalise the
their settling process with their respective teams. 99% Bank’s Mission and Core Values among its employees
of new joiners completed their induction within 30 days by designing and implementing various culture
from their date of joining. developmental initiatives.

Statutory Reports
• Culture ‘awareness’ workshop: recognised 15 trophy winners and 26 certificates

of appreciation.
The HR team stepped up its momentum and delivered
361 culture workshops comprising 6,428 employees till Celebration moments and the winning experience
date. The Bank institutionalised two special cultural of these culture award winners were captured and
award programmes that were launched and rolled out circulated across Bank to create buzz and visibility.
during the year.
Recognitions
High Five Champion: A monthly recognition event of
the top five branches, which highlights and rewards the The efforts of the Bank to build a values-based thriving
collective demonstration of core values behaviours at workforce was recognised in the industry. Equitas was
the branch level certified as Great Place to Work by the Great Place to
Work Institute for the period February 2022-February
Value Victor Award: A quarterly event, which recognises 2023. It was also awarded the Best Place to Work in India
an individual employee’s contribution above and beyond 2021 in the category of Mid-size Banking Companies
the call of duty through nomination and evaluation by AmbitionBox.
by value champions. Till date, the programme has
Corporate Social Responsibility

The Mission of Equitas Group is ‘Empowering embroidery, doll making, artificial jewellery
through Financial Inclusion’. In line with making, candle making etc.; iii) pavement
this Mission, besides providing quality and dwellers rehabilitation programmes (Equitas
affordable financial services to underserved Birds Nest); iv) placement coordination for
and unserved people, Equitas has developed unemployed youth of low-income communities
a wide range of initiatives towards improving by networking with employers through job
the quality of life of its low-income fairs; and v) conducting primary health camps
constituents. These initiatives are carried through tie-ups with hospitals.
out through a ‘not-for-profit’ Trust – Equitas
Development Initiatives Trust [EDIT] – The Bank through EDIT joined hands with
established by the Company. local state government agencies to accelerate
the nationwide vaccination drive and ensure
As per the CSR Policy, contributions up to 5% vaccine access to the last mile. While the
of net profit in each financial year, subject government provided vaccines free of cost and
to minimum contribution stipulated under health workers to administer the doses, the
the Companies Act, 2013, are made to EDIT Bank set up the vaccination camps equipped
to carry out CSR initiatives. The various CSR with communications materials, water and
activities undertaken include: i) running face masks, and transport for health workers,
eight schools (seven owned schools and and leveraged its ecosystem to address
one belonging to the VSKD Trust). Student hesitancy and create awareness. More than
strength for the 2021-22 academic year 41,000 vaccination camps were organised
stands at around 5,700; ii) skill development immunising 5 million people by July 2021.
of women through training in tailoring and
66
Advances
Nature of activity FY22 Cumulative
No. of eye-camp participants [A] 27,002 25,60,939
No. of spectacles [free of cost] 1,023 1,18,186
No. of cataract operations [free of cost] 58 32,712
People covered in other Medical Camps [B] 34,509 38,60,389
People covered in Vaccination Camps [C] 44,62,729 44,62,729
Total [Eye camps + Med. Camps+ Vaccination Camps[A]+[B]+[C] 45,24,240 1,08,84,057
Veterinary camps in Rural areas 2,800 12,028
Participants in skill training programs 21,072 5,84,014
No. of people accessing Health Helpline 68 32,263
Placements for Unemployed youth 25,204 2,23,929
SwasthMahila Health Education 21,790 3,11,890
Equitas Birds Nest [Pavement Dwellers Rehabilitation program] 128 2,229
Support to women with Disabilities and

Transgender
In addition, the Bank through its Micro Finance loan programme
supported 54,897 persons with disabilities during FY22 and
cumulatively 1,28,051 persons. Of these, 33,447 visually challenged
persons were supported during the year and cumulatively 54,764.
Encouraged by this inclusive model, the Bank has mainstreamed 282
transgenders in the women’s group.
Cautionary Statement
Statements made in this MD&A describing the Bank’s objectives, projections, estimates, general market
trends, expectations, etc., may constitute ‘forward looking statements’ within the ambit of applicable
laws and regulations. Actual results could differ materially from those suggested by the ‘forward looking
statements’ as those statements involve a number of risks, uncertainties and other factors. These risks and
uncertainties include, but are not limited to, the Bank’s ability to successfully implement its strategies,
future levels of non-performing advances, growth and expansion, the adequacy of allowance for credit
losses, provisioning policies, technological changes, regulatory changes, investment income, cash flow
projections, exposure to market risks, uncertainties arising out of the COVID-19 pandemic or other risks.
For and on behalf of the Board of Directors
Chennai P N Vasudevan Arun Ramanathan

May 19, 2022 MD & CEO Chairman

Statutory Reports
Directors’ Report
To
The Members
Equitas Small Finance Bank limited
Your Directors have pleasure in presenting the Sixth Annual Report on the business and operation of the Bank, together
with the audited Accounts of the Bank for the financial year ended March 31, 2022 (FY 2021-22).
1. Summary of Financial Performance

The summary of Bank’s financial performance for the FY 2021-22 compared to the previous year 2020-21 is
given below:
(` in lakhs)
For the For the

Particulars Year ended Year ended Y-o-Y %
March 31, 2022 March 31, 2021
Deposits & Other Borrowings 21,56,719.73 20,55,729.17 4.92%
Advances 19,37,420.60 16,84,818.90 15.00%
Total Income 3,99,722.58 3,61,246.79 10.65%
Operating Profits (Profits before Provision, Depreciation and 94,723.00 96,301.96 (1.64%)
Taxation)
Less: Depreciation 7,528.31 7,643.32 (1.51%)
Less: Provision and contingencies 49,383.69 37,531.96 31.58%
Less: Provision for Taxation 9,737.82 12,704.36 (23.35%)
Net Profit 28,073.18* 38,422.32 (26.94%)
Add: Profit brought forward from previous year 89,823.86 64,313.84 39.67%
Total Profit Available for Appropriation 1,17,897.04 1,02,736.16 14.76%
Appropriations
Transfer to Statutory Reserve 7,018.30 9,605.58 (26.94%)
Transfer to Special Reserve 968.43 742.44 30.44%
Transfer to Capital Reserve 105.63 2,366.08 (95.54%)
Transfer to/ (from) Investment Reserve Nil Nil Nil
Transfer to/ (from) Investment Fluctuation Reserve 124.71 198.20 (37.08%)
Proposed Dividend Nil Nil Nil
Tax including Surcharge and Education cess on Dividend Nil Nil Nil
Balance carried over to Balance Sheet 1,09,679.97 89,823.86 22.11%
*The Net profit of the Bank for FY 21-22 was lower compared to previous FY 20-21 due to increase in credit cost resulting primarily from
higher provisioning for restructured advances and increase in Gross NPA during the year.
2. Dividend 4. Deposits
Considering the need to preserve capital to support Being a Banking Company, the Bank receives
growth and expansion, the Board of Directors did not and accepts deposits. The details of the deposits
recommend any dividend for the financial year ended are enumerated in the financial statements for
March 31, 2022. The Dividend distribution policy of FY 2021-22.
the Bank is available in our website click here
5. Capital Adequacy
3. Transfer to Reserves
The Capital Adequacy ratio stood at 25.16% as on
As per the requirement of RBI Regulations, the Bank
March 31, 2022 as against the minimum requirement
has transferred the following amounts to various
of 15% stipulated by RBI. The Net Worth of the Bank
reserves during year ended March 31, 2022.
as on the said date was `4,24,616.86 lakhs.
Amount transferred to ìn lakhs
6. Material changes after the Balance Sheet Date
Statutory Reserve 7,018.30
as at March 31, 2022
Special Reserve 968.43

There have been no material changes and
Capital Reserve 105.63 commitments between the end of FY 2021-22 and the
Investment Fluctuation Reserve 124.71 date of this report, affecting the financial position of
the Bank.
68
Directors’ Report (Contd.)
7. Share Capital a) recommends to the Board an Annual activity plan

in line with the CSR policy and CSR contribution
During the year, there has been no change in the
of the Bank for the year.
Authorised share capital of the Bank.
b)
monitors the implementation of the Plan
The Bank has allotted in aggregate 1,01,18,318 Equity
as approved.
Shares to employees of the Bank under the ESFB
Employees Stock Option Scheme, 2019.
c) Reviews and recommends changes to the policy
from time to time.
Except for issue of 10,26,31,087 Equity shares through
QIP as detailed under paragraph 12 below, there was
no capital infusion during the year. Total paid up share 12.
Scheme of amalgamation between Equitas
capital of the Bank was increased by `112,74,94,050 Holdings Limited (EHL) and Equitas Small
(One Hundred and Twelve crores seventy four lakhs Finance Bank Limited (the Bank)
ninety four thousand and fifty) and as on March The Board of Directors of Equitas Small Finance
31, 2022 it stood at `1252,02,76,550 (One thousand Bank Limited (ESFBL) and Equitas Holdings Limited
two Hundred and Fifty two crores two lakhs seventy (EHL) at their respective Meetings held on July 26,
six thousand five hundred and fifty) comprising 2021 approved a Scheme of Amalgamation between
of 125,20,27,655 equity shares with face value of EHL, ESFBL and their respective shareholders,
`10 each. contemplating amalgamation of EHL with ESFBL
under applicable provisions of the Companies Act
8.
Information about Financial Performance / 2013. The Scheme was designed to achieve the
Financial Position of the Subsidiaries, Associates RBI licensing requirement of dilution of promoter
and Joint Venture Companies shareholding in the Bank and minimum public
shareholding (MPS) requirements prescribed by SEBI
The Bank does not have any subsidiaries, associates
Regulations, in a manner that is in the best interests
and Joint Venture Companies.
of and without being prejudicial to EHL, ESFBL, their
respective shareholders or any other stakeholders.
9. Operational highlights
The details of operations and state of affairs are Subsequently, ESFBL achieved the MPS through a
given in the Management Discussion and Analysis Qualified Institutions Placement (QIP) of its shares,
[MD&A] Report. in February 2022, after obtaining the necessary
approvals. QIP comprised issue of 10,26,31,087 equity
shares of `10/ each at premium of `43.59 per share,
10. Management Discussion and Analysis, Report aggregating to a fund raise of ` 550 crore utilised
on Corporate Governance and Business 100% for augmenting the Tier 1 capital of the Bank
Responsibility Report during the year. As a result of this QIP, the public
The enclosed MD&A Report, Report on Corporate shareholding in the Bank increased from 18.70%
Governance and Business Responsibility Report form to 25.37%, thereby complying with the Minimum
part of this Report. Public Shareholding (MPS) requirements prescribed
by SEBI Regulations.
11. Corporate Social Responsibility (CSR)
Consequently, the aforesaid Scheme was revised to
The Bank has laid down a Corporate Social include the change in capital structure arising from
Responsibility (CSR) Policy, which is available on our QIP as well as the necessary change in objects of the
website click here Scheme. The Scheme, so revised was approved by the
Boards of EHL and ESFBL in their respective Meetings
The Bank contributes the higher of 5% of its previous held on March 21, 2022. The Scheme has been filed
year net profits or 2% of average net profits made with the Stock Exchanges and RBI for necessary
during the preceding three financial years to Equitas approvals/ sanctions. The RBI vide its letter dated May
Development Initiatives Trust (EDIT) and Equitas 6, 2022 has granted its conditional NOC to the Scheme
Healthcare Foundation (EHF), registered Public while other approvals are awaited.
Charitable Trusts for carrying out CSR activities on its
behalf. A report is enclosed as Annexure I. Upon coming into effect of this Scheme and in
consideration of the amalgamation of EHL with ESFBL,
The Bank has constituted a CSR Committee which ESFBL, without any further application, act or deed,

Statutory Reports
shall issue and allot to each of the equity shareholders The terms and conditions of appointment of
of EHL as on the Record Date defined in the Scheme, Independent Directors are also available on the
231 equity Shares of ` 10/- each credited as fully paid website of the Bank, click here.
up of ESFBL, in respect of every 100 Equity Shares of
` 10/- each fully paid up held by them in EHL. The appointment of Independent Director during the
year was made with satisfaction of the Board after
ascertaining the integrity, expertise, experience and
13. Meetings of the Board
proficiency of the Directors. Appropriate resolution
During FY 2021-22, our Board met Eighteen (18) times. recommending their appointment as Independent
The details of Meetings are given in the Report on Director with effect from December 27, 2021 with
Corporate Governance. The maximum interval brief profile and explanatory statement is placed
between any two Meetings did not exceed 120 days, for approval of shareholders at the ensuing Annual
as prescribed in the Companies Act 2013. General Meeting.
14. Directors and Key Managerial Personnel 14.3

Pursuant to recommendation of Nomination &
Remuneration Committee and subject to approval of
As on the date of this Report, the Bank has Ten
RBI and shareholders, the Board in its Meeting held
Directors out of which there are nine Independent
on May 4, 2022 has approved the appointment of
Directors including a Woman Independent Director.
Mr Rohit Gangadharrao Phadke, Sr President- Retail
Assets and Mr Murali Vaidyanathan, Sr President &
Change in Directors
Country Head- Branch Banking- Liabilities as Whole-
14.1 S ection 152 of the Companies Act 2013 provides time Directors of the Bank to be designated as
that two-thirds of the total number of Directors Executive Directors, to take effect from the date of
are liable to retire by rotation out of which one- approval of proposal by RBI. The appointment shall
third shall retire from office at every AGM. In terms be for a period of three years or for such other period
of Section 149(13) of the Companies Act 2013, the as may be approved by RBI.
provisions of retirement of Directors by rotation shall
not be applicable to Independent Directors and an Familiarisation Programme
Independent Director shall not be included in the
The Bank has familiarised the Independent Directors
total number of Directors liable to retire by rotation.
of the Bank of their roles and responsibilities in the
Bank, nature of industry in which the Bank operates,
The Bank has only one Director viz., Mr. Vasudevan P N,
business model of the Bank, etc. The details of the
MD & CEO liable to retire by rotation. Mr. Vasudevan
familiarisation programme imparted to Independent
P N will retire in the ensuing AGM of the Bank and
Directors are available on the website of the Bank
being eligible, offers himself for reappointment. The
click here
Directors recommend his re-appointment and the
same is being placed for approval of the shareholders
Key Managerial Personnel (KMP)
at the ensuing Annual General Meeting.
There were no changes in KMPs during the Financial
14.2 During the year, Mr Sridhar Ganesh and Ms Tabassum Year 2021-22. As at March 31, 2022, the Bank had the
Inamdar, Independent Directors ceased to be following KMPs:
Directors of the Bank upon expiry of their term w.e.f.
September 04, 2021 and October 21, 2021 respectively. S. Name of the Key
Designation
No. Managerial Person
The Board of Directors place on record its appreciation 1 Mr Vasudevan P N MD & CEO
for the valuable services rendered by Mr Sridhar 2 Mr Sridharan N Chief Financial Officer (CFO)
Ganesh and Ms Tabassum Inamdar during their tenure
3 Mr Sampathkumar K R Company Secretary (CS)
as Directors of the Bank.
There were no change in the Key Managerial Personnel

Pursuant to recommendation of Nomination
during the year.
& Remuneration Committee (NRC), the Board
of Directors of the Bank at its Meeting held on
December 27, 2021, appointed Ms Geeta Dutta Goel 15. Declaration from Independent Directors
and Prof Samir Kumar Barua as Additional Director The Board has received declarations from the
(Independent) of the Bank w.e.f. close of business Independent Directors as required under Section
hours on December 27, 2021. NRC recommendation 149(7) of the Companies Act 2013 and the Board is
was made after evaluating various candidates as per satisfied that the Independent Directors meet the
the Criteria set out at its meeting held on December criteria of independence as mentioned in Section
23, 2021. 149(6) of the Companies Act 2013.
70
16. Evaluation of Board Performance with proper explanation relating to material

departures,
The performance of the Board, Committees of
the Board, Chairman, Individual Directors & the
ii) such accounting policies as specified in Schedule
Key Managerial Personnel, were evaluated on the
17 to the Financial Statements have been selected
basis of criteria as approved by the Board for the
and applied consistently and judgements and
FY 2021-22. All the Directors were provided the
estimates have been made that are reasonable
criteria for evaluation and forms, which were duly
and prudent so as to give a true and fair view of
filled. The feedback from the Directors was collated.
the state of affairs of the Bank as at March 31,
Feedback relating to the Directors were shared with
2022 and of the profit of the Bank for the year
the respective Directors and feedback relating to
ended on that date,
the Committees and the Board were discussed in
the Board.
iii) proper and sufficient care has been taken for
maintenance of adequate accounting records in
17. Policy on Directors’ appointment, remuneration accordance with the provisions of the Companies
and other details Act, 2013 for safeguarding the assets of the Bank
Pursuant to the provisions of Section 178 of the and for preventing and detecting frauds and
Companies Act, 2013, the Bank has formulated other irregularities,
and adopted Policy on selection of Directors and
Remuneration Policy, which are disclosed in our iv) annual accounts have been prepared on a going
website, Click here and here. concern basis,
v) internal financial controls to be followed by the

18. Directors’ Responsibility Statement Bank were laid down and that the same were
The Board of Directors of the Bank, to the best of adequate and were operating effectively, and
their knowledge and belief confirm that:
vi)
proper systems to ensure compliance with
i) in the preparation of the annual accounts for the provisions of all applicable laws was
the year ended March 31, 2022, the applicable in place and the same were adequate and
accounting standards have been followed along operating effectively.
19. Overall Remuneration:

Details of all elements of remuneration of all the Directors are given in the Corporate Governance Report. The
Non-Executive Directors of the Bank are not entitled to stock options.Details of remuneration as required under
Section 197 (12) of the Companies Act, 2013 read with Rule 5 of Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 are given below.
(i) Ratio of Remuneration of Each Director The ratio of remuneration of each Director to median employee remuneration
with Median Employees Remuneration. is as below:
Chairman 4.12:1
Chairman, Audit Committee 3.09:1
MD & CEO 58.32:1
Other Independent Directors except Prof Samir 2.06:1
Kumar Barua and Ms Geeta Dutta Goel*
Prof Samir Kumar Barua (who joined on December 0.54:1
27, 2021)
*Ms Geeta Dutta Goel has waived her right to receive remuneration for FY 2021-22

Statutory Reports
(ii) the percentage increase in remuneration There has been no increase in remuneration* of Independent Directors during
of each Director, Chief Financial Officer, FY 2021-22 as compared to FY 2020-21.
Chief Executive Officer, Company The increase in remuneration of Key Managerial Personnel is provided below:
Secretary or Manager, if any, in the Chief Executive Officer - 28%#
financial year;
Chief Financial Officer – 31%**
Company Secretary - 25%
*does not include sitting fees
#excluding the variable pay component as the separate application needs to be made
to RBI every year seeking approval. During the year 2021-22, the Board approved
an increase in remuneration of MD & CEO. The proposal is submitted to RBI and
awaiting approval.
**does not include perquisite value arising out of exercise of options by the employee
(iii) the percentage increase in the median 15%
remuneration of employees in the
financial year;
(iv) the number of permanent employees 17,607
on the rolls of the Bank as on March 31,
2022
(v) Average percentage increase already The average percentage increase in salaries of employees other than the
made in the salaries of employees other managerial personnel in the last financial year was 12%.
than the managerial personnel in the last
financial year and its comparison with
the percentile increase in the managerial
remuneration and justification
thereof and point out if there are any
exceptional circumstances for increase in
the managerial Remuneration.
(vi) Affirmation that the remuneration is as The remuneration is as per the Remuneration Policy of the Bank.
per the remuneration policy of the Bank.
In accordance with Section 136 of the Companies access to the Audit Committee for raising a whistle
Act, 2013, the report and accounts is being sent to blower complaint.
the Members and others entitled thereto, excluding
the statement prescribed under rule 5(2) and 5(3)
22. Ratings of Debt Instruments
of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014. The aforesaid Instrument Nature Rating
Rating
Amount
information is available for inspection at the Agency
registered office of the Bank during the business Non- Long CRISIL A+ / CRISIL ` 150
hours on working days of the Bank. If any member Convertible Term Stable Ratings Crores
is interested in obtaining a copy, such member may Debentures / Ltd
Subordinated
write to the Company Secretary in this regard.
Debt
Certificate of Short CRISIL A1 + CRISIL ` 1,000
21. Whistle Blower Policy/ Vigil Mechanism Deposit Term Ratings Crores
The Bank has adopted a Whistle Blower Policy and Vigil Ltd
Mechanism in compliance with the relevant provisions Issuer Rating Short Ind A1+ India NA
of Companies Act, 2013 and Rules thereunder and SEBI Term Ratings &
(Listing Obligations and Disclosure Requirements) Research
P Ltd
Regulations, 2015. This Policy provides an opportunity
to address concerns of employees & Directors relating
to fraud, malpractice or any other activity or event 23. Auditors & their Report
which is against the interest of the Bank or society as
Reserve Bank of India (“RBI”) has on April 27, 2021,
a whole. The Policy is available in the Bank’s website,
issued the Guidelines for Appointment of Statutory
click here.
Central Auditors/Statutory Auditors of Commercial
banks which are applicable for the FY 2021-22 (“RBI
During the year under review, the Bank received six
Guidelines”). The RBI Guidelines has capped the term
complaints under the Whistle Blower Policy of the
of statutory auditors at three years, replacing the
Bank, all of which were redressed and reported to
earlier cap of four years.
Audit Committee. The functioning of the Mechanism
is reviewed by the Audit Committee from time to
time. No employee of the Bank has been denied
72
The Board of Directors of the Bank in their Meetings to Section 143(12) of the Companies Act, 2013, the
held on April 29, 2021 and June 01, 2021 had Statutory Auditors of the Bank have not reported
appointed M/s T R Chadha & Co LLP (TRC), Chartered any instances of frauds committed in the Bank by its
Accountants and M/s Varma and Varma, Chartered officers or employees.
Accountants as Joint Statutory Auditors of the Bank
till 2023-24 in accordance to the RBI guidelines.
24.
Details of Employee Stock Options Scheme
Subsequently, the said appointment was approved
(ESOS)
by the Shareholders at the Fifth AGM on August
12, 2021. The appointment was approved by RBI for The Bank, pursuant to the resolutions passed by the
FY 2021-22 vide letter dated June 13, 2022. Board and the Shareholders of the Bank on January
31, 2019, adopted the ESFB Employee Stock Option
As per the RBI guidelines, the appointment of Joint Scheme (ESOS), 2019 (“ESFB ESOP 2019”). The Bank
statutory auditors should be subject to annual approval has amended the ESFB ESOP 2019 pursuant to the
from Reserve Bank of India. The Audit Committee resolutions of the Board and Shareholders of our
of the Board had reviewed the performance of the Bank dated November 7, 2019 & November 22,
Auditors during the financial year 2021-22 and their 2019 respectively.
Independence by taking note of the eligibility letters
received from the Auditors stating that they continue Post listing of Equity shares of the Bank the ESFB
to satisfy the criteria provided in Section 141 of the ESOP 2019 was ratified by the Shareholders by way
Companies Act, 2013 and RBI Regulations, their of a special resolution dated February 08, 2021 as
continuance, if approved, will be in accordance with required by Regulation 12 of erstwhile SEBI (Share
the conditions prescribed under the Companies Act, Based Employee Benefits) Regulations 2014. Further,
2013 and Rules thereunder as well as the applicable as recommended by NRC, the Board of Directors at
RBI Regulations and recommended their continuance its Meeting dated January 28, 2022 had approved
to the Board. Board of Directors at its Meeting on modifications to the ESFB ESOP 2019 aligning the
May 04, 2022 considered the recommendation and scheme as per the SEBI (Share Based Employee
approved the continuance of the Joint Statutory Benefits and Sweat Equity) Regulations, 2021.
Auditors for the FY 2022-23 as they satisfy with the
eligibility Norms as per the RBI guidelines. The Bank may grant an aggregate number of up to
11,00,00,000 employee stock options under ESFB ESOP
Auditor’s Report 2019. The objective is to enable the Bank to attract
and retain the best available talent to contribute and
There are no qualifications, reservations or adverse
share in the growth of the Bank.
remarks made by the Joint Statutory Auditors of the
Bank, M/s. Varma & Varma and T R Chadha & Co LLP,
The Scheme is administered by the Nomination and
Chartered Accountants (ICAI Firm Registration No.
Remuneration Committee constituted by the Board
006711N/N500028,) in their report on the financial
of Directors of the Bank.
statements for the FY 2021-22. Further, pursuant
Information as required under Section 62 of the Companies Act, 2013 and Rule 12 of the Companies (Share Based
Employee Benefits) and the SEBI SBEB & SE Regulations 2021:
Particulars Total
Number of options granted during the year 81,61,946
Number of options forfeited / lapsed during the year 41,22,261
Number of options vested during the year 1,00,92,124
Number of options exercised during the year 1,01,18,318
Number of shares arising as a result of exercise of options 1,01,18,318
Money realized by exercise of options (INR), if scheme is implemented directly by the Company ` 28,96,93,068
Loan repaid by the Trust during the year from exercise price received Not Applicable
Option Granted but not vested 1,02,19,214
Options Vested but not exercised 2,75,20,273
Options Available for Grant 6,11,14,031

Statutory Reports
Employee Wise details of the options granted to

A) Key Managerial Personnel
No of options % of options
S. No Name of Employee Designation Exercise Price
granted granted
1 Sridharan N CFO 72,680 64 0.89
2 Sampathkumar KR Company Secretary 9,280 64 0.11
B) any other employee who receives a Grant of options in any one year, of options amounting to 5% or more
of options granted during that year
No of options % of options
S. No Name of Employee Designation Exercise Price
granted granted
1 Vasudevan P N Managing Director & CEO 16,85,489 57.85 20.65%
2 Rohit Phadke Senior President and 4,44,708 60.00 5.45%
Head Retail Assets
C) identified employees who were granted option, during any one year, equal to or exceeding one percent of
the issued capital (excluding outstanding warrants and Conversions) of the Company at the time of Grant. - Nil
25. Secretarial Auditors constituted Risk Management Committee of the

The Secretarial Audit Report of M/s B Ravi & Board, which periodically reviews the risks faced by
Associates, Practising Company Secretaries (C.P. 3318) the Bank and the practices/ processes followed to
is enclosed as Annexure – II. The Bank has complied manage them. Details of the same are covered in the
with the applicable Secretarial Standards relating to MD&A report.
‘Meetings of the Board of Directors’ and ‘General
Meetings’ during the year. There are no qualifications, 29. Internal Financial Controls
reservations, adverse remarks or disclaimers made by
The Bank has clear delegation of authority and
the Secretarial Auditors.
standard operating procedures, which are reviewed
periodically by the Audit Committee. These measures
26. Information as per Section 134 (3) (q) of the help in ensuring adequacy of internal financial
Companies Act, 2013 read with Rule 8 of the controls commensurate with the nature and size of
Companies (Accounts) Rules, 2014 operations of the Bank. The Board also reviews the
26.1 During FY 2021-22, the Bank had no activity relating adequacy and effectiveness of the Bank’s internal
to conservation of energy or technology absorption. financial controls with reference to the financial
statements. The procedures and internal controls
26.2 During FY 2021-22, the Bank and incurred foreign relating to the latter provide reasonable assurance
currency expenditure of ` 45.19 lakhs. on the preparation of financial statements and the
reliability of financial reporting. The Bank also ensures
that the internal controls are operating effectively.
27. Particulars of contracts or arrangements with
Related Parties
30. IND AS Implementation
During FY 2021-22, there were no transactions
requiring reporting under Section 188(1) of the The Ministry of Corporate Affairs (MCA), Government
Companies Act, 2013 in Form AOC-2. The Policy on of India has notified the Companies (Indian Accounting
dealing with material Related party transactions is Standards) Rules, 2015 on February 16, 2015. Further,
available at Click here a Press Release was issued by MCA on January 18,
2016 outlining the roadmap for implementation of
Indian Accounting Standards (IND AS) converged with
28. Risk Management International Financial Reporting Standards (IFRS) for
The Bank has formulated and adopted a robust banks. Banks in India were required to comply with
Risk Management framework. The Bank has also the Indian Accounting Standards (IND AS) for financial
74
statements for accounting periods beginning from 33. Depository System

April 1, 2018 onwards, with comparatives for the
As the Members are aware, the Bank’s Equity Shares
periods ending March 31, 2018 or thereafter.
are tradable in electronic form. As on March 31,
2022, out of the Bank’s total equity paid up share
On April 05, 2018, the RBI has announced deferment
capital comprising of Equity Shares, only 115 equity
of implementation date by one year for scheduled
shares were in physical form and the remaining shares
commercial banks. Subsequently, on March 22, 2019,
were in electronic form. In view of the numerous
RBI has deferred implementation of Ind AS for banks
advantages offered by the Depository System, the
until further notice, pending necessary legislative
Members holding shares in physical form are advised
amendments to the Banking Regulation Act, 1949.
to avail themselves of the facility of dematerialisation.
The same is yet to be notified.
34. T he Annual Return MGT-7 as required under the
31. Loans / Guarantees / Investments Companies Act, 2013 is available at the website of
Pursuant to Section 186 (11) of the Companies Act, the Bank, click here.
2013, the provisions of Section 186 of Companies
Act, 2013, except sub-section (1), do not apply to a 35. There have been no significant and material orders
loan made, guarantee given or security provided by a passed by the Regulators or Courts or Tribunals
Banking Company in the ordinary course of business. impacting the going concern status and the future
The particulars of investments made by the Bank are operations of the Bank.
disclosed in Schedule 8 of the Financial Statements as
per the applicable provisions of Banking Regulation Acknowledgement
Act, 1949. The Directors are grateful to RBI, other Government
and Regulatory Authorities, other Banks and
Financial Institutions for their support and guidance.
32.
Disclosure under the Sexual Harassment of
The Directors gratefully acknowledge the guidance
Women at Workplace (Prevention, Prohibition
provided to the various activities of the Bank by the
and Redressal) Act, 2013
Board of the Holding company. The Directors place on
The Bank has in place, a Policy on Prevention of record their sincere thanks to the valued constituent
Sexual Harassment at Workplace in line with the of the Bank. for their support and patronage and
requirements of the Sexual Harassment of Women their deep sense of appreciation to all the employees
at Workplace (Prevention, Prohibition & Redressal) of the Bank for their unstinted commitment to the
Act, 2013. Internal Complaints Committee has been growth of the Bank.
set up for redressal of complaints. During FY 2021-22,
six complaints were received under the Policy which For and on behalf of the Board of Directors
were dealt with as per the process laid down and
disposed of.
Place: Chennai Vasudevan P N Arun Ramanathan
Date: May 19, 2022 MD & CEO Chairman

Statutory Reports

Annexure -I
Corporate Social Responsibility (CSR) Report
[Pursuant to clause (o) of sub-section (3) of section 134 of the Act and Rule 9 of the Companies (Corporate Social
Responsibility) Rules, 2014]
1. A brief outline on the Bank’s CSR policy

CSR Policy of the Bank is available in our website, click here. As per the CSR Policy, the Bank makes contribution upto
higher of 5% of its net profits of the immediately preceding financial year or 2% of average profits of the Bank for
the past three years for undertaking such CSR projects or activities as approved for the year. The CSR Committee
and the Board oversees the projects undertaken by implementing agencies, is done by the CSR Committee and
the Board. A brief note on various projects undertaken by the Bank is enclosed as annexure.
2. The Composition of the CSR Committee is as follows:

No of Meetings of CSR
S No Name of the Director Designation/ Nature of directorship No of Meetings attended
Committee during the year
1 Ms Tabassum Inamdar* Independent Director 2 1
2 Mr Sridhar Ganesh* Independent Director 2 1
3 Ms. Geeta Dutta Goel# Independent Director No meetings were held from Jan to March 2022.
4 Mr. Vinod Kumar Sharma Independent Director 2 1
5 Mr Srinivasan N Independent Director 2 2
6 Mr Navin Puri# Independent Director 2 2
7 Mr Vasudevan P N MD & CEO 2 2
*Ms. Tabassum Inamdar & Mr. Sridhar Ganesh ceased to be Directors of the Bank upon expiry of their term w.e.f September 04, 2021
and October 21, 2021 respectively and Mr. Vinod Kumar Sharma was inducted as a Member of the Committee w.e.f October 18, 2021.
# Mr Navin Puri stepped down as a Member of the Committee and Ms Geeta Dutta Goel was inducted as a Memberof the Committee
w.e.f January 28, 2022
Apart from approving the budget, the CSR committee reviews the progress of CSR projects and activities every
quarter. Some of the Directors have in the past years visited the CSR projects to gain personal insights and assess
the quality of outputs and outcomes.
3. The composition of CSR Committee, CSR Policy and CSR Projects approved by the Board are disclosed
on the website of the Bank at Click here and here.
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of
rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the
report).
Discussions are underway with four agencies to carry out impact assessment of key projects during the period
2019-2022. This was delayed due to the Pandemic and is planned to commence from August 2022. The last such
study was conducted for the period 2016-18.
5. Details of amount available for set off in pursuant of sub-rule (3) of rule 7 of Companies (Corporate
Social Responsibility) Rules, 2014 and amount required for set off for the financial year, if any
S Financial Amount available for set-off from Amount required to be set-off for the
No Year preceding financial year (ìn lakhs) financial year, if any (ìn lakhs)
1 2020-21 974.79 Nil
2 2019-20 959.45 Nil
3 2018-19 660.36 Nil
76

Annexure -I
6. Average net profit of the Bank for last three financial years
Particulars ` in lakhs
Profit –2020-21 52,695.96
Profit –2019-20 36,447.01
Profit –2018-19 33,259.73
Average Profit for CSR purpose 40,800.90
7. CSR Obligation for the financial year

Particulars ìn lakhs
a. 2% of average profits for the past three years 816.02
b. Surplus arising out of the CSR projects or programmes or activities of the previous financial years. Nil
c. Amount required to be set off for the financial year, if any Nil
Total CSR obligation for the financial year (a + b - c). 816.02
8. CSR Expenditure during the year

a) CSR Amount spent or unspent for the financial year
Amount Unspent (ìn lakhs)
Total Amount spent for the financial Total Amount transferred to Unspent Amount transferred to any fund specified under Schedule
year (ìn lakhs) CSR Account as per section 135(6) VII as per second proviso to section 135(5)
Amount Date of Transfer Name of fund Amount Date of Transfer
Nil NA Nil Nil NA
b) Details of CSR amount spent against ongoing projects for the financial year
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
Amount Amount Mode of Implementation
Item
Location of project spent in trans- Direct or through implementing
from Local Amount
S Name of Project current ferred to agency
list of Area allocated
No project duration financial unspent
activities (Y/N) (` lakhs)
year CSR
in Sch VII State District Direct Name CSR Number
(` lakhs) Account
1 Hospital Health Y TN Kanchipuram 2020-21 901.00 770.81 NA NA Equitas CSR00002381
construction care to Healthcare
2022-23 Foundation
Total 901.00 770.81
The unspent amount on the ongoing project would be utilized by the implementing agency within the next three
financial years.

Statutory Reports

Annexure -I
c) Details of CSR Amount spent against other than ongoing project for the Financial Year
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Amount
Item from list Local spent Mode of Implementation
Location of project
S No Name of project of activities Area for the Direct or through implementing agency
in Sch VII (Y/N) project
State District (`lakhs) Direct Name CSR Number
1 Equitas Gurukul School Education Y TN Trichy 140.55 Imple- Equitas CSR00001339

- Trichy menting Development
2 Equitas Gurukul School Education Y TN Dindigul 124.89 agency Initiatives
– Dindigul Trust
3 Equitas Gurukul School - Education Y TN Coimbatore 123.44

Coimbatore
4 Equitas Gurukul School Education Y TN Salem 105.41
- Salem
5 Equitas Gurukul School Education Y TN Karur 155.33
- Karur
6 Equitas Gurukul School - Education Y TN Cudddalore 109.54
Cudddalore
7 Equitas Gurukul School - Education Y TN Kumbakonam 109.94
Kumbakonam
8 Equitas Health Camp Health care Y TN Camp 150.90
Total 1020.00
d) Amount spent in administrative overheads - Nil**

**The expenditure by the Bank incurred on monitoring of CSR activities is not included in the CSR expenditure of the Bank.
e) Amount spent on impact assessment, if applicable - Nil
f) Total Amount spent by implementing agencies in financial year (b+c+d+e) - `. 1,790.81 lakhs
(Total CSR contribution to the implementing agencies during the year was ` 1,921 lakhs)
g) Amount
Sl.No Particulars
( ` in lakhs)
i) Two percent of average net profit of the company as per section 135(5) 816.02
ii) Total amount spent for the Financial Year 1790.81
iii) Excess amount spent for the financial year [(ii)-(i)] 974.79
iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any 0
v) Amount available for set off in succeeding financial years [(iii)-(iv)] 974.79
9. (a) Details of unspent CSR amount for the preceding three financial years
Amount transferred Amount transferred to any fund specified
Amount spent under Schedule VII as per section 135 (6), if Amount remaining to be
to Unspent CSR
Preceding in the reporting applicable spent in the succeeding
S No Account under
financial year financial year financial year
section 135(6) Amount Date of
` in lakhs Name of fund ` in lakhs
` in lakhs ` in lakhs transfer
1 2019-20 Nil NA NA NA NA Nil
78

Annexure -I
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial
year(s):
(1) (2) (3) (4) (5) (6) (7)
Cumulative
Amount spent
Total amount Amount spent Status of
Financial year in on the project
Project allocated for at the end the project –
S No Name of project which project was in the reporting
duration the project of reporting Completed/
commenced financial year
(` in lakhs) financial year ongoing
(` in lakhs)
(` in lakhs)
1 Hospital construction 2020-21 Three Years 3,500 770.81 968.27 Ongoing
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year
There was no asset created or acquired through CSR spend during the financial year
(a) Date of creation or acquisition of capital asset(s) NA

(b) Amount of CSR spent for creation or acquisition of capital asset NA
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their NA
address etc
(d) details of the capital asset(s) created or acquired including complete address and location of the capital asset NA
11. Specify the reason(s), if the company has failed to spend two percent of the average net profits as per
section 135 (5)
Not applicable as the CSR spend of the Bank has always been in excess of the minimum CSR obligation prescribed
under the Act.
Vasudevan P N N.Srinivasan
MD & CEO Chairperson – CSR Committee
Place: Chennai
Date: May 19, 2022

Statutory Reports
Annexure to CSR Report – FY 2021-22
The mission of Equitas Group is “Empowering C.

Pavement dwellers rehabilitation program
through Financial Inclusion. (Equitas Birds Nest)
In line with this mission, besides providing finance at This programme was commenced in 2010 for
reasonable cost to those who are not effectively serviced “Rehabilitation of Pavement Dwellers” in Chennai.
by the mainstream financial institutions, Equitas has also Under this program, the Trust pays the rent on their
developed a wide range of ecosystem initiatives towards behalf for 6 months during which they are taught
improving the quality of life of people belonging to livelihood skills and linked to local markets. From
Economically Weaker Sections (EWS) and Low Income the 7th month onwards, they are required to make
Groups (LIG). the rent payment by themselves. These families
have attained self-sustenance status through this
These initiatives are carried out through two not-for-profit intervention from Equitas. Many people have
trusts viz., Equitas Development Initiatives Trust (EDIT) and received Voter ID cards and have applied for ration
Equitas Healthcare Foundation (EHF), registered Public cards for the first time in their lives. In FY 2021-22,
Charitable Trusts established by Equitas Holdings Limited. 128 families have been moved into houses, taking the
cumulative beneficiaries under the program to about
As per the CSR Policy, the Bank contributes upto 5% of its 2,231 families.
net profits of the previous financial year to EDIT and EHF
to carry on CSR initiatives on behalf of the Bank. Out of these rehabilitated families, under a graduation
program, members were formed into a group.
CSR activities carried out through the implementing After inputs on financial literacy and counselling,
agencies are detailed below: following all the regular MF process, MFI loan was
sanctioned. 100% collection was observed in those
loans till date. Encouraged by this positive response,
A. Educational Initiatives
12 more groups have been included in the program,
Education is a key lever to enable upward social thus mainstreaming them into the community and
mobility for low income Self Help Group members’ fulfilling their dream of economic empowerment.
children. Equitas has rolled out its Gurukul initiatives
to “empower children from low income households,
through high quality education at affordable cost”. D. Placement Cell:
In another proactive step, Equitas facilitates conduct
EDIT is currently running seven such schools at Trichy, of job fairs for unemployed youth of low income
Dindigul, Salem, Karur, Cuddalore, Coimbatore and communities, with the help of recruiters and
Kumbakonam with around 5,800 students. More than employers. Till date, gainful employment to over
three fourths of the students are from Economically 2,23,929 youth has been arranged in companies and
Weaker Sections and socially disadvantaged sections retail outlets like textile showrooms, malls, hospitals,
of the society. BPOs etc.
B. Skill development E. Health care services

Equitas has imparted training to 5,84,014 Self Help Equitas understands that access to affordable
Group women members in skills such as tailoring & healthcare is of paramount importance.
embroidery, agarbathi / candle making, detergent /
phenyl manufacturing and preparing processed foods 1. Health Education for Healthy living: A team
such as pickles & jams. These training programs are of 500 women skill trainers have been trained
structured as week-long programs. with Technical support from “Freedom from
Hunger” to impart Health Education to Members
The skill development program has helped to improve which would help in early detection of non-
the income of the beneficiaries. Studies reveal communicable diseases. Cumulatively imparted
that 52% of the trained members earn additional to over 3.11 lakh women.
supplemental income in the range of `500 to `2,000
per month using the newly acquired skills.
80
2. Medical Camps: Through a tie up with about hospital, which is expected to be completed in
900 hospitals spread across 7 states, Equitas the next two years.
conducts nearly 400 medical camps every
month, benefiting about 20,000 people every 4. Equitas Sugam Clinics
month. Using the same model we were able Equitas has piloted this new service, specifically
to collaborate with the Govt in conducting to address the need among families belonging
vaccination camps and were able to vaccinate to Low Income Households (LIH) for doctors’
44,62,729 doses, with financial assistance from consultation. Under this model at EDIT clinic, a
Opportunity International, Australia. In health qualified doctor will be available from 10 am to
camps cumulatively nearly 6.42 million people 1 pm. The patient’s history is documented and
have benefited so far under this program. medicines are prescribed as per the need. EDIT
is running one such clinic and 74,916 people
3. Hospital Project: Equitas has identified lack of benefitted from this initiative.
access to affordable healthcare as a key pain
point for the marginalized sections of the society. 5.
Secondary Health Care & Health Help line:
Accordingly, a separate trust – Equitas Healthcare Equitas has also tied up with a large number
Foundation (EHF) has been established to of hospitals to help our clients get inpatient
provide access to affordable healthcare to the treatment for serious illnesses at a discount to
underprivileged sections with an emphasis on normal cost. This initiative has benefited nearly
cancer care. During the year, EHF has initiated 32,263 members.
the construction of a cancer-cum-multi specialty
COMPOSITION OF BOARD OF TRUSTEES OF THE TRUSTS AS ON 31ST MARCH 2022

Equitas Development Initiatives Trust (EDIT) Equitas Healthcare Foundation (EHF)
1. Dr C K Gariyali, IAS (Retd) 1. Mr Rangachary N, Chairman, Equitas Holdings Limited
2. Mr M B Nirmal, Founder, Exnora International 2. Dr Gariyali C K, IAS (Retd)
3. Ms Jayshree Nambiar, Educationist 3. Mr S. Ramadorai, Former advisor to GOI
4. Ms Sabitha D, I.A.S (Retd.) 4. Mr P N Vasudevan, MD& CEO, Equitas Small Finance Bank
Limited
5. Mr Anoop Jaiswal IPS (Retd)
6. Mr P N Vasudevan, MD& CEO, Equitas Small Finance Bank
Limited

Statutory Reports
Annexure -II
The Members,
EQUITAS SMALL FINANCE BANK LIMITED
CIN: L65191TN1993PLC025280
4th Floor, Phase II, Spencer Plaza,
No.769, Mount Road, Anna Salai,Chennai 600002.
Dear Members,
Sub: Our Report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the company. Ourresponsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done to ensure that correct facts are
reflected in secretarial records. Webelieve that the processes and practices followed provide a reasonable basis
for our opinion.
3. Wehave not verified the correctness and appropriateness of financial records and books of accounts of the company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.,
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of management.Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy
or effectiveness with which the management has conducted the affairs of the company.
Signature:
Name of Company Secretary in practice: CS Dr. B Ravi
FCS No.: 1810 CP No.: 3318
MANAGING PARTNER
Place : Chennai B RAVI & ASSOCIATES
Date : 26.04.2022 Firm Registration Number: P2016TN052400
82
SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31st March 2022
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule no.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To
The Members,
EQUITAS SMALL FINANCE BANK LIMITED
CIN: L65191TN1993PLC025280
4th Floor, Phase II, Spencer Plaza,
No.769,Mount Road,
Anna Salai,
Chennai-600002.
Dear Members,
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to
good corporate practices by EQUITAS SMALL FINANCE BANK LIMITED (hereinafter called “the Company”). Secretarial
Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory
compliances and expressing our opinion thereon.
Based on our verification of Company’s books, papers, minutes, forms and returns filed and other records maintained
by the Company and also the information provided by the Company, its officers, agents and authorized representatives
during the conduct of secretarial audit, We hereby report that in our opinion, the Company has, during the audit period
covering the financial year ended on 31st March, 2022 complied with the statutory provisions listed hereunder and
also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner
and subject to the reporting made hereinafter:
We have examined the books, papers, minutes, forms and returns filed and other records maintained by the Companyfor
the financial year ended on 31st March, 2022according to the provisions to the extent applicable of:
(i) The Companies Act 2013(“the Act”) and the rules made thereunder issued by the Ministry of Corporate Affairs
from time to time;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations to the extent of Foreign Direct Investment;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’) as amended to the extent applicable:-
a) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 (“SEBI LODR”);
b) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
c) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
d) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
e) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat equity) Regulations, 2021;
f) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; (was not applicable
to the Company during the period under review);

Statutory Reports
h) The Securities and Exchange Board of India (Buyback of Securities), Regulations,2018; (was not applicable to
the Company during the period under review);
i The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations,
1993; (was not applicable to the Company during the period under review).
(vi The Following Industry Specific Laws and the rules, regulations, directions, guidelines, circulars and instructions
framed thereunder:
a) Reserve Bank of India Act (RBI), 1934, The Banking Regulation Act, 1949 read with the rules, regulations,
directions, guidelines, licenses and circulars issued by RBI for compliance by Small Finance Bank;
b) Prevention of Money-Laundering Act (PMLA), 2002 and The Prevention of Money-Laundering (Maintenance
of Records, etc) Rules, 2005;
c) Negotiable Instruments Act, 1881.
d) Insurance Regulatory and Development Authority of India Act, 1999 read with the rules, regulations and
notifications thereon.
We further report that based on the information received, explanations given, process explained, records maintained,
statutory compliance and statutory internal audit reports submitted to the Board and committee on quarterly basis,
there are adequate systems and processes in the Company commensurate with the size and operations of the Company
to monitor and ensure compliance with applicable labour laws, Goods and Service Tax laws and other applicable
Laws, rules, regulations and guidelines including the returns to be filed with the Reserve Bank India framed by the
statutory authorities from time to time. The Company is regular in making statutory payments and there have been
no prosecution or notices issued to the Company or its officers.
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards 1 and 2 issued by The Institute of Company Secretaries of India.
(ii) The Debt Listing Agreement entered into by the Company with BSE Limited;
(iii) The Listing Agreements entered into by the Company with BSE Limited and National Stock Exchange of India Limited.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc mentioned above.
During the period under review, the Company has reported lapses under SEBI (Prohibition of Insider Trading) Regulations,
2015 and the Company’s Internal Code of Conduct for Prohibition of Insider Trading and has taken necessary disciplinary
actions against the erring employees and reported the same to SEBI/Stock Exchanges. We were informed that none of
the designated persons were in possession of Un-published price sensitive information at the time of the transaction.
The Board of Directors of the Company is duly constituted with proper balance of Executive Director(s), Non- Executive
Directors and Independent Directors including woman director. The changes in the composition of the Board of
Directors that took place during the period under review were carried out in compliance with the provisions of the
Act and SEBI (LODR).
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were
sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful participation at the meeting. The company had convened
Board and Committee meetingsat shorter notice by complying with the requirements of the Act. The Company had
convened its meetings of Committees and Board physically and through Video Conferencing in compliance with the
requirements of the Act.
All decisions were taken unanimously at the Board meeting and the committee meetings and with requisite majority
at the Annual General Meeting and Postal Ballot. There was no Extra- ordinary General Meeting convened during the
period under review.
84
We further report that during the audit period:
1. The members through postal ballot accorded approval on 28th November, 2021 through a special resolution to
issue equity shares to Qualified Institutional Buyers for the purpose of achieving Minimum Public shareholding
not exceeding `1000 Crores and the company allotted 10,26,31,087 equity shares of `10/- each to eligible Qualified
Institutional Buyers
2. The RBI vide its letter dated 13th July, 2021 approved the appointment of M/s T R Chadha& Co. LLP, Chartered
Accountants and M/s Varma&Varma, Chartered Accountants as the Joint Statutory Auditors of the Company for
the year 2021-22 for their second year and first year respectively
3. The members in the Annual general Meeting held on 12th August, 2021 approved
a. the revision of the term of office of M/s TR Chadha& Co LLP, Chartered Accountants from four years to three
years i.e. from FY 2020-21 to FY 2022-23 as joint auditors of the Bank.
b. appointment of M/s Varma&Varma, Chartered Accountants as Joint Auditors of the Bank for a period of three
years i.e. from FY 2021-22 to FY 2023-24
c. appointment of Mr. Ramesh Rangan as Independent Director of the Bank not liable to retire by rotation for
a period of 5 years with effect from 09th November 2020
d. Reappointment of Mr. Srinivasan N as Independent director for a period of three years with effect from 4th
September, 2021 through a special resolution
e. Reappointment of Prof Balakrishnan N as Independent director for a period of three years with effect from
21st September, 2021 through a special resolution
f. Reappointment of Mr. Arun Kumar Verma as Independent director for a period of three years with effect
from 4th September, 2021 through a special resolution
g. Reappointment of Mr. Arun Ramanathan as Part time chairman and Non-executive Independent Director
with effect from 04th September 2021 until 24th April 2024 through a special resolution.
h. Revision of remuneration payable to Mr. Vasudevan P N, MD and CEO of the Bank subject to the approval of
RBI and shareholders through a special resolution.
i. Borrowing/ raising funds denominated in Indian Rupees or any other foreign currency by issue of debt
securities on private placement basis for a period of one year as per the structure and within the limits
permitted by RBI of an amount not exceeding `1000 crores through a special resolution
j. Donation/ contribution to Equitas development Initiatives Trust (EDIT) and Equitas Healthcare foundation (EHF),
registered public charitable trusts or such other trusts, not for profit entities, NGOs etc for carrying out one or
more of the CSR activities listed in Schedule VII of the Companies Act, 2013 or such other charitable activities.
4. The Board in its meeting held on 26th July, 2021 approved the Scheme of Amalgamation between Equitas Holdings
Limited with the Company and their respective shareholders subject to the approval of the RBI, the members,
creditors and approval by the National Company Law Tribunal (NCLT) Chennai Bench.
5. The company’s holding company, Equitas Holdings Limited (transferor in the proposed scheme of amalgamation)
vide letter dated 2nd August, 2021 had made an application to Securities and Exchange Board of India seeking
prior permission to meet minimum public shareholding through a scheme of arrangement. Subsequently, the
company vide letter dated 14th September, 2021 had requested Securities and Exchange Board of India to relax
the 3 year minimum promoter lock-in requirements under Regulation 16(1) (a) to the extent required to implement
the scheme of amalgamation. The Securities and Exchange Board of India has vide letter dated 8th October, 2021
acceded to the request subject to the following:
a) No Objection Certificate to be obtained from the exchanges on the scheme of amalgamation (excluding upon
lock-in provisions) and final approval thereof by National Company Law Tribunal

Statutory Reports
b) The exemption being granted from lock-in is only for the period commencing after approval of the scheme
of amalgamation between Equitas Holdings Limited and the company by National Company Law Tribunal
and till October 28, 2023
6. The Board of directors in its meeting held on 21st March, 2022 approved the revised scheme of amalgamation of
the company with Equitas Holdings Limited (EHL) subject to the approval of Reserve Bank of India, approval/ no-
objection confirmation from Stock Exchanges, the members and creditors of the company and EHL, sanction of
NCLT and other statutory and regulatory approvals, permissions and sanctions of regulatory and other authorities.
7. The Board in its meeting held on 24th September, 2021, appointed Mr.Aijaz Husain, Vice President- Compliance as
Compliance officer for monitoring and ensuring compliance with applicable statutes and regulations in connection
with the Banker to issue (BTI)
8. The Board in its meeting held on 27th December, 2021
a. appointed Ms. Geeta Dutta Goel as independent director for a period of five years with effect from
27th December, 2021
b. appointed Prof Samir Kumar Barua as Independent director with effect from 27th December 2021 until 22nd
September, 2026 subject to the approval of shareholders
c. approved the re-appointment of Mr. PN Vasudevan as MD and CEO for a period of 3 years from 23rd July,
2022 to 22nd July, 2025 subject to the approval of RBI and shareholders
9. The Board in its meeting held on 28th January, 2022 accorded approval for amendment of “Equitas Small Finance
Bank Employee Stock Option Scheme 2019”
10. The Bank approved granting of 81,61,946 options. Out of the same, grant of 11,81,684 options was approved
subject to the approval of RBI.
11. The Bank has allotted 1,01,18,318 equity shares through ESOP Scheme.
12. The Board of directors at their meeting held on 7th February, 2022 has accorded approval for revision in
remuneration of Mr. Vasudevan P N, Director (DIN: 01550885) as Managing Director and Chief Executive Officer
of the Bank, to take effect from April 1, 2021 subject to the approval of shareholders and RBI.
13. The Board of directors at their meeting held on 24th March 2022, has accorded approval to the Bank to make loans
up to `22,000 crores in the ordinary course of its business for the financial year 2022-2023.
14. The Board of directors at their meeting held on 24th March 2022, has also accorded approval to the Bank to make
borrowing up to `42,000 crores outstanding at any point in time notwithstanding that the monies to be borrowed
together with the monies already borrowed by the Bank (apart from temporary loans obtained or to be obtained
in the ordinary course of business) exceed the aggregate of the paid up capital of the Bank and free reserves,
such limit to be exclusive of any money borrowed by or on behalf of the Bank otherwise than by virtue of this
resolution, subject to the approval of the shareholders from time to time.
Signature: S/d
FCS No.: 1810 CP No.: 3318
MANAGING PARTNER
B RAVI & ASSOCIATES
Firm Registration Number: P2016TN052400

Place: Chennai Peer Review Certificate Number: 930/2020
Date: 26.04.2022 UDIN: F001810D000210282
86
Report on Corporate Governance
Corporate Governance Philosophy Board Composition

The philosophy of the Bank on Corporate Governance
envisages adherence to the highest levels of transparency,
accountability and fairness, in all areas of its operations 9
and in all interactions with its stakeholders. The Independent
Bank deals with borrowers who are mostly from the Directors
economically weaker sections of the society with poor
linkages to the mainstream financial markets. Right from
inception, the Bank’s policies and processes have been 1
Non-independent
fine-tuned to ensure utmost clarity and fairness while Non Executive Director
dealing with such clients.
The Board of Directors (“Board”) currently comprises of ten Directors drawn from diverse fields/professions, out of
which nine are Independent Directors (including one Woman Director). The composition of the Board is in conformity
with the provisions of Companies Act, 2013 and Banking Regulation Act, 1949.
During the year 2021-22, the Board met 18 times viz, April 29, 2021, May 10, 2021, June 01, 2021, June 17, 2021, July
26, 2021, July 30, 2021, August 10, 2021, September 24, 2021, October 18, 2021, October 29, 2021, November 08, 2021,
November 22, 2021, December 27, 2021, January 28, 2022 ,February 07, 2022, February 14, 2022, March 21, 2022 and
March 24, 2022 the gap between any two Meetings has been less than 120 days. The names and categories of Directors
on the Board, their attendance at Board Meetings and at the last AGM and the number of Directorships are given below:
No. of Board Number of Committee

Attend- No. of Directorships in
Meetings attended positions in public
ance at public companies$ Directorship in other
Name of the Director during FY 2021-22 companies$$
the last listed entities
(No of Meetings
AGM Membership Chairmanship Membership Chairmanship
held)
Mr. Arun 18 (18) Yes 2 - 3 2 1. Equitas Holdings

Ramanathan Limited
(Chairman) 2. Thirumalai
Chemicals Limited
Mr. Arun Kumar 18 (18) Yes - - - - -
Verma
Prof. Balakrishnan 17 (18) Yes 1 - 1 - IFCI limited
N
Ms. Geeta Dutta 4 (5) NA 1 - 2 - Home First Finance
Goel* Company India
Limited
Mr. Navin Puri 18 (18) Yes 1 - 1 - Aditya Birla Sun Life
AMC Limited
Mr. Ramesh Rangan 18 (18) Yes 2 - 1 - Sumedha Fiscal
Services Limited
Ms. Tabassum 7(9) Yes - - - - -
Inamdar***
Mr Sridhar Ganesh# 7(7) Yes 1 - - - -
Prof. Samir Kumar 5 (5) NA 4 - 1 1 Torrent Power
Barua* Limited
Mr. Srinivasan N 17 (18) Yes - - - - -
Mr. Vinod Kumar 18 (18) Yes - - - - -
Sharma
Mr. Vasudevan P N 18 (18) Yes - - - - -
$
Excluding Directorship in private limited companies, foreign companies and companies under Section 8 of the Act;
$$
Audit Committee and Stakeholders’ Relationship Committee in Public Limited Companies alone are considered.
*
Ms Geeta Dutta Goel and Prof Samir Kumar Barua were appointed as Directors w.e.f. December 27, 2021.
***
Ceased to be Director of the Bank upon expiry of term w.e.f. October 20, 2021
#
Ceased to be Director of the Bank upon expiry of term w.e.f. September 04, 2021.

Statutory Reports
Report on Corporate Governance (Contd.)
There is no relationship between Directors inter-se and Independent Directors are available on the website of the
there are no convertible instruments held by the Directors. Company click here
The Board has received declarations from the Independent
Directors as required under Section 149(7) of the Act and
Skills/ Expertise/ Competencies of the Board
the Board is satisfied that the Independent Directors meet
the criteria of independence as mentioned in Section The Bank’s Board comprises of qualified Members who
149(6) of the Act. possess the required skills, competence and expertise that
allow them to make effective contributions to the Board
and its Committees. The Board Members are committed
Separate Meeting of the Independent Directors to ensure that the Bank’s Board adheres to the highest
During FY 2021-22, the Independent Directors had standards of Corporate Governance.
a separate meeting on September 01, 2021 without
the presence of the Management team and the Non- The Bank, while considering a person for appointment
Independent Directors of the Bank. At the said Meeting, as Director, determines suitability of the person as a
Independent Directors evaluated and reviewed the Director on the Board, based upon qualification, track
performance of Chairman, Non-Independent Directors record, expertise, integrity and undertakes necessary due
and Board as a whole and assessed the quality, quantity diligence to ensure that the appointee Director fulfills
and timeliness of flow of information between the the criteria for Board membership as mentioned in the
Management and the Board based on the evaluation Policy for ascertaining ‘fit and proper’ status of Directors
criteria set by the NRC and approved by the Board. click here.
In the opinion of the Board, the following are the list of

Training of Board Members
skills/expertise/competencies required in the context of
All Independent Directors inducted into the Board are the Bank’s businesses and which are available with the
given an orientation at the commencement of Directorship. Board and of the individual Directors:
The details of the familiarization programme imparted to
Skills/Expertise/Competencies AR AKV GDG NB NP RR SKB SN VKS PNV

Banking x X x x x x x x
Business Strategy, Sales, Marketing & Administration x x X x x x X x
Accounting & Finance , Taxation x x X x x x
Law x x
Human Resources x x
Information Technology x x
Research & Risk management x x x x
Rural Economy, Small Scale Industry & Agriculture x x x x X x x
AR - Arun Ramanathan , AKV - Arun Kumar Verma, NB - Balakrishnan N , GDG – Geeta Dutta Goel, NP - Navin Puri , RR - Ramesh Rangan,
SKB – Samir Kumar Barua, SN - Srinivasan N, VKS - Vinod Kumar Sharma & PNV - P N Vasudevan.
Information to the Board Companies Act, 2013 and RBI Guidelines and Directions
In advance of each Meeting, the Board is presented with issued to banks from time to time viz.,
relevant information on various matters relating to the 1. Audit Committee,
Bank’s businesses, especially those that require deliberation
and guidance at the highest level. Presentations are made 2. Risk Management Committee,
to the Board by business heads / functional heads on their 3. Nomination & Remuneration Committee,
segments from time to time. Directors have separate and
independent access to the Management. In addition to 4. Corporate Social Responsibility Committee,
items which are required to be placed before the Board for 5. Stakeholders Relationship Committee,
its noting and/or approval, information on all significant
matters are provided. The managment diligently ensures 6. Customer Service Committee,
that the information furnished by Management to the 7. Special Committee for Monitoring High Value Frauds,
Board of the Company is comprehensive and timely.
8. Business Committee,
Committees of the Board 9.

Review Committee for identification of Wilful
Defaulters,
The Board at present has Fifteen (15) Committees of the
Board, constituted in accordance with the provisions of 10. IT Strategy Committee
88
11. Credit Committee 1. Oversight of the Bank’s financial reporting process

and the disclosure of its financial information to
12. Policy Formulation Committee
ensure that the financial statement is correct,
13. Outsourcing Committee sufficient and credible;
14. Merger Committee and 2. Recommending to the Board, the appointment, re-
appointment and, if required, the replacement or
15. Committee of Independent Directors
removal of the statutory auditor, the remuneration
and terms of appointment of auditors of the Bank;
The Board fixes the terms of reference of Committees and
also delegates powers from time to time. The Minutes of 3. Approval of payment to statutory auditors for any
the Meetings of the Committees are placed before the other services rendered by the statutory auditors;
Board for its information.
4.
Reviewing, with the management, the annual
financial statements and auditor’s report thereon
1. Audit Committee before submission to the Board for approval, with
Composition particular reference to:
As on March 31, 2022, the Audit Committee comprised a. Matters required to be included in the Director’s
four (4) Independent Directors. Responsibility Statement and the Board’s report
in terms (c) of sub-section 3 of section 134 of the
1. Mr Arun Kumar Verma, Chairman
Companies Act, 2013
2. Mr Ramesh Rangan b.
Changes, if any, in accounting policies and
practices and reasons for the same.
3. Prof Samir Kumar Barua
c.
M aj o r a c co u n tin g e n t ri e s invo l v in g
estimates based on the exercise of judgment
4. Mr Vinod Kumar Sharma
by Management
Meetings & Attendance d. Significant adjustments made in the financial
The Committee held Thirty Five (35) Meetings during the statements arising out of audit findings
year on April 27, 2021, April 28, 2021, April 29, 2021, May e. Compliance with accounting and other legal
10, 2021, May 31, 2021, June 10, 2021, June 16, 2021, June requirements relating to financial statements
21, 2021, July 13, 2021, July 15, 2021, July 26, 2021, July 29,
2021, July 30, 2021, August 10, 2021, September 22, 2021, f. Disclosure of related party transactions
September 23, 2021, September 30, 2021, October 07, g. Qualifications in the draft audit report.
2021, October 27, 2021, October 28, 2021, November 08,
2021, November 22, 2021, December 10, 2021, December 5. Reviewing, with the Management, the quarterly
13, 2021, December 17, 2021, December 27, 2021, January financial statements before submission to the board
24, 2022, January 27, 2022, February 07, 2022, February for approval;
14, 2022, March 09, 2022, March 19, 2022, March 21, 2022,
March 23, 2022 and March 30, 2022: 6. Reviewing, with the Management, the statement of
uses / application of funds raised through an issue
No. of Meetings (preferential issue, rights issue, etc), the statement of
Name
Held Attended funds utilized for purposes other than those stated in
the offer document / notice and making appropriate
Mr Arun Kumar Verma, Chairman 35 35
recommendations to the Board to take up steps in
Mr Navin Puri* 10 10 this matter;
Mr Ramesh Rangan 35 35
7. Review and monitor the auditor’s independence and
Prof Samir Kumar Barua** 7 7 performance, and effectiveness of audit process;
Mr Tabassum Inamdar*** 18 12
8.
Approval or any subsequent modification of
Mr Vinod Kumar Sharma 35 34 transactions of the Bank with related parties;
* Was a member of the Committee till January 27, 2022. 9. Scrutiny of inter-corporate loans and investments;
**Inducted into the Committee in the Board Meeting held on
January 28, 2022.
10. Valuation of undertakings or assets of the Bank,
wherever it is necessary;
***Retired as a Director and hence ceased to be a member w.e.f.
October 21, 2021 11. To review and identify the Stressed assets for sale in
accordance with the relevant Board-approved Policy.
Terms of Reference
12. Evaluation of internal financial controls and risk
The terms of reference of the Audit Committee include: management systems;

Statutory Reports
13. Reviewing, with the management, performance of 29.

Any other requirement in accordance with the
statutory and internal auditors, adequacy of the applicable provisions of the Companies Act, RBI
internal control systems. Regulations and SEBI Regulations as may be applicable
from time to time.
14. Reviewing the adequacy of internal audit function,
if any, including the structure of the internal audit The Audit Committee shall mandatorily review the
department, staffing and seniority of the official following information:
heading the department, reporting structure,
1. Management discussion and analysis of financial
coverage and frequency of internal audit.
condition and results of operations;
15.
Discussion with internal auditors any significant
2. Statement of significant related party transactions
findings and follow up there on.
(as defined by the audit committee), submitted
16. Reviewing the findings of any internal investigations by management;
by the internal auditors into matters where there is
3. Management letters / letters of internal control
suspected fraud or irregularity or a failure of internal
weaknesses issued by the statutory auditors;
control systems of a material nature and reporting
the matter to the Board. 4.
Internal audit reports relating to internal
control weaknesses;
17. Discussion with statutory auditors before the audit
commences, about the nature and scope of audit as 5. The appointment, removal and terms of remuneration
well as post-audit discussion to ascertain any area of the Chief internal auditor shall be subject to review
of concern. by the Audit Committee.
18. To look into the reasons for substantial defaults in
the payment to the debenture holders, shareholders 2. Risk Management Committee
(in case of non-payment of declared dividends) Composition
and creditors;
As on March 31, 2022, the Risk Management Committee
19.
To review the functioning of the Whistle of the Board comprised five (5) Independent Directors and
Blower mechanism; the MD & CEO.
20. Approval of appointment of CFO (i.e. the whole- 1. Mr Vinod Kumar Sharma, Chairman
time Finance Director or any other person heading
2. Mr Arun Kumar Verma
the finance function or discharging that function)
after assessing the qualifications, experience and 3. Prof Balakrishnan N
background, etc of the candidate;
21. Review on quarterly basis, the securitization / bilateral
5. Mr Ramesh Rangan
assignment transactions and investment activities of
the Bank. 6. Mr Vasudevan P N, MD & CEO
22. Review on quarterly basis complaints under Policy
Meetings & Attendance
on Prevention of Sexual Harassment of Women
at Workplace. The Committee held Six (6) Meetings during the year on
April 29, 2021, June 17, 2021, July 28, 2021, September 22,
23. Annual review of the Bank’s Policies, pertaining 2021, October 29, 2021 and January 28, 2022:
to Audit and Accounts, framed pursuant to RBI
Guidelines/ Regulations/ Directions and suggesting No. of Meetings
Name
changes, if any required to the Board for adoption. Held Attended
24. To discuss and follow up the observations relating to Mr Vinod Kumar Sharma, Chairman 6 6
Inspection Report/ Risk Assessment Report of the RBI Mr Arun Ramanathan* # 2 1
Mr Arun Kumar Verma 6 6
25. To obtain and review quarterly/ half-yearly reports
Prof Balakrishnan N 6 6
of the Compliance Officer appointed by the Bank, in
Prof Samir Kumar Barua** - -
terms of RBI instructions
26. To review compliance with KYC/ AML guidelines Mr Vasudevan P N, MD & CEO 6 6
including periodic review of audit reports on
adherence to KYC/AML guidelines at branches * Inducted into the Committee in the Board Meeting held on
October 18, 2021
27. To review penalties imposed/ penal action taken # Was a member of the Committee till January 28, 2022.
against Bank under various laws and statutes and
** Inducted into the Committee in the Board Meeting held on
correction action taken January 28, 2022.
28.
To review IT Governance & Infrastructure and
Information Security Risk related aspects of the Bank.
90
Terms of Reference No. of Meetings

Name
The terms of reference of the Risk Management Held Attended
Committee include
Mr Srinivasan N 8 6
a) Laying down and review of procedures relating to Mr Vinod Kumar Sharma 8 8

risk assessment & risk minimization to ensure that Mr Sridhar Ganesh** 4 4
executive management controls risk through means
*Inducted into the Committee in the Board Meeting held on
of a properly defined framework. October 18, 2021.
b) Apprising the Board of Directors at regular intervals **Ceased to be a member w.e.f. September 04, 2021.
regarding the process of putting in place a progressive
risk management system, risk management policy Terms of reference
and strategy. The terms of reference of the Nomination and
c) To decide the policy and strategy for integrated Remuneration Committee include
risk management containing various risk exposures
including credit, market, liquidity, operational and 1)
Formulation of the criteria for determining
reputational risk. qualifications, positive attributes and independence
of a director and recommend to the Board a policy
d) To obtain regular risk management reports to enable relating to the remuneration of the directors, key
the Committee to assess risks involved in Bank managerial personnel and other employees;
business and give clear focus to current and forward
looking aspects of risk exposure. 2) To undertake a process of due diligence to determine
the suitability of any person for appointment/
e) To review the Asset Liability Management (ALM) of continuing to hold appointment as a Director on
the Bank on a regular basis. the Board, based upon qualification, expertise, track
f) To review risk return profile of the Bank, capital record, integrity other ‘fit and proper’ criteria, positive
adequacy based on risk profile of Bank balance sheet, attributes and independence (if applicable) and
business continuity plan, disaster recovery plan, key formulate the criteria relating thereto.
risk indicators and significant risk exposures. 3) Formulation of criteria for evaluation of Independent
g) To carry out prudent risk diversification ensuring that Directors and the Board;
credit exposure to any group or industry does not 4) Devising a policy of Board diversity;
exceed the internal limits.
5) Identifying persons who are qualified to become
directors and who may be appointed in senior
3. Nomination & Remuneration Committee management in accordance with the criteria laid down,
Composition and recommend to the Board their appointment and
As on March 31, 2022, the Nomination & Remuneration removal and succession planning for Directors.
Committee comprised Five (5) Independent Directors: 6) To review the structure, size and composition (including
the skills, knowledge and experience) of the Board at
1. Prof Balakrishnan N, Chairman least annually and make recommendations on any
2. Mr Arun Ramanathan proposed changes to the Board to complement the
Bank’s corporate strategy;
3. Mr Srinivasan N
7) To assess the independence of Independent Non-
4. Mr Vinod Kumar Sharma Executive Directors;
5. Mr Navin Puri 8)
To review the results of the Board performance
evaluation process that relate to the composition of
Meetings & Attendance the Board;
The Committee held Eight (8) Meetings during the year on
9) Annual appraisal of the performance of the Managing
April 29, 2021, May 31, 2021, June 14, 2021, July 30, 2021,
Director and fixing his/her terms of remuneration.
October 18, 2021, December 23, 2021, January 24, 2022,
and February 05, 2022: 10) Annual appraisal of the Senior Management team
reporting to the Managing Director.
No. of Meetings
Name 11) Annual Performance Review of the staff
Held Attended
Prof Balakrishnan N, Chairman 8 8 12) Framing guidelines for the Employee Stock Option
Scheme (ESOS) and decide on the grant of stock
Mr Arun Ramanathan* 3 3
options to the employees and Whole Time Directors
Mr Navin Puri 8 8 of the Bank and its subsidiaries.

Statutory Reports
Performance evaluation criteria The Independent Directors of the Bank are not eligible
The Nomination & Remuneration Committee has drawn for stock options. The Directors are not paid/ entitled to
out a Policy for evaluation of the Board, its Committees, any remuneration except as disclosed in this Report. There
Chairman and Directors and the same has been approved is no pecuniary relationship or transaction between the
by the Board of Directors of the Bank. The process for Bank and the Non-Executive/ Independent Directors.
Board Evaluation is given in the Board’s Report.
All Directors except MD & CEO are paid Sitting Fee for
attending Meetings of Board and Committees. Ms Geeta
4. Remuneration of Directors Dutta Goel has waived her right to receive sitting fees and
The Bank has in place a Remuneration Policy which is remuneration for FY 2021-22.
guided by the principles and objectives as enumerated
in Section 178 of the Act as well as RBI Circular dated Nature of Meetings After revision
November 4, 2019 on the Compensation Structure for Board ` 60,000/- per Meeting
Whole-Time Directors, Material Risk Takers and other Audit Committee/ Business ` 50,000/- per Meeting
employees, which is also disclosed, on our website link Committee
click here The compensation to the Managing Director is All other Committees ` 40,000/- per Meeting
within the limits prescribed under the Act.
Meeting of Independent Directors ` 40,000/- per Meeting
He is not paid Sitting fees for any Board/ Committee Chairman for Board ` 10,000/- per Meeting
Meeting attended by him. The remuneration to the Non- Chairman other Committees
Executive / Independent Directors has been fixed at a
level, not exceeding 1% of the net profits of the Bank
calculated in accordance with Section 198 of the Act.
Details of Remuneration and Sitting Fees paid to Independent Directors for the year ended March 31, 2022 along with
their shareholding in the Bank are as under:
Sitting Fees (`) No. of equity

Remuneration
Name shares held as on
(`) Board Committee# March 31, 2022
Mr Arun Ramanathan (Chairman) 12,00,000 12,60,000 3,20,000 Nil
Mr Arun Kumar Verma 9,00,000 10,80,000 32,40,000 Nil
Prof Balakrishnan N 6,00,000 10,20,000 12,90,000 Nil
Ms Geeta Dutta Goel* Nil NA NA Nil
Mr Navin Puri 6,00,000 10,80,000 21,90,000 Nil
Mr Ramesh Rangan 6,00,000 10,80,000 34,10,000 Nil
Prof Samir Kumar Barua** 1,58,219 3,00,000 4,50,000 Nil
Mr Sridhar Ganesh$ 2,54,932 4,20,000 3,30,000 Nil
Mr Srinivasan N 6,00,000 10,20,000 16,00,000 Nil
Ms Tabassum Inamdar$$ 3,31,233 4,20,000 9,50,000 Nil
Mr Vinod Kumar Sharma 6,00,000 10,80,000 31,60,000 Nil
*Ms. Geeta Dutta Goel was appointed as Director w.e.f December 27, 2021. She has waived her right to receive sitting fee and remuneration
payable to her as Director of the Bank for FY 2021-22.
** Prof Samir Kumar Barua was appointed as Director w.e.f December 27, 2021. Hence, he is entitled to attend the meeting post his
appointment.
$Mr. Sridhar Ganesh ceased to be Director of the Bank upon expiry of term w.e.f. September 04, 2021.
$$ Ms. Tabassum Inamdar ceased to be Director of the Bank upon expiry of term w.e.f. October 20, 2021.
#Includes sitting fee paid in respect of the Meeting of Independent Directors
There are no performance linked incentives, service contracts, notice period or severance fees. The Non-Executive
Directors are not eligible for Stock Options.
92
5. Remuneration to Managing Director No. of Meetings

Name
Details of the remuneration of the Managing Director for Held Attended
the year ended March 31, 2022 are as follows: Mr Vinod Kumar Sharma### 1 1
Amount Mr Vasudevan P N, MD & CEO 2 2

S. No Nature of Payment
(` in lakhs)
* Was a member of the Committee till January 28, 2022.
1 Salary 189.05
** Ceased to be a member w.e.f. October 20, 2021
2 Arrears (for FY20-21)** 34.65
# Inducted into the Committee in the Board Meeting held on January
3 Perquisite value of car 4.04 28, 2022.
4 Others-Employer's contribution to 8.16 ## Ceased to be a member w.e.f. September 04, 2021.
Provident Fund
###Inducted into the Committee in the Board Meeting held on
5 PF Arrears (for FY20-21)** 2.49 October 18, 2021.
TOTAL 238.39
Terms of reference
**RBI vide its letter dated January 12, 2022 had accorded its approval
for the remuneration structure of MD & CEO for FY 2020-21 and The terms of reference of the Corporate Social
hence differential remuneration for FY 2020-21 arising therefrom Responsibility Committee include:
was paid during the year 2021-22
1) Review the Mission of the Organisation from time to
Notice period and severance fees. time and ensure it stays aligned to changing contexts
As applicable to all senior management personnel, MD of the Organisation.
& CEO is subject to Notice Period of three months and 2)
Ensure alignment of the Business goals and
additional gardening leave of three months, at the objectives of the Bank in line with the Mission of
discretion of the Bank. The Severance fees is restricted the Organisation.
to payment of gross fixed pay for the notice period and
gardening leave, if availed. 3) Bring specific focus on certain excluded segments of
client community and set benchmarks for the same.
6. Corporate Social Responsibility Committee 4)

Review all the social activities of the Bank and
suggest to the Board of Trustees suitable measures
Composition
for enhancing the efficacy of these activities.
As on March 31, 2022, the Corporate Social Responsibility
Committee comprised three (3) Independent Directors and 5) Deploy such tools of measurement as may be relevant
the MD & CEO: and available from time to time to study the impact
of the Social Performance activities of the Bank and
1. Mr Srinivasan N, Chairman benchmark the same with other organisations in India
and around the world.
2. Ms Geeta Dutta Goel
6)
Disseminate information related to the Social
3. Mr Vinod Kumar Sharma Performance of the Organisation in such manner as
4. Mr Vasudevan P N, MD & CEO deemed appropriate.
7) To review the amount spent on social activities and to
Meetings & Attendance advise the Board and the Trustees on its efficacies.
The Committee held Two (2) Meetings during the year on
June 01, 2021 and October 27, 2021:
7. Stakeholders Relationship Committee
No. of Meetings Composition
Name
Held Attended As on March 31, 2022, the Stakeholders Relationship
Mr Srinivasan N, Chairman 2 2 Committee comprised three (3) Independent Directors:
Mr Navin Puri* 2 2
1. Mr Navin Puri, Chairman
Ms Tabassum Inamdar** 1 1
Ms Geeta Dutta Goel# - -
Mr Sridhar Ganesh## 1 1 3. Prof Samir Kumar Barua

Statutory Reports
Meetings & Attendance 8. Customer Service Committee

The Committee held four (4) Meeting during the year on Composition
April 27, 2021, July 28, 2021,
As on March 31, 2022, the Customer Service Committee
comprised four (4) Independent Directors and the MD
October 28, 2021 and January 24, 2022:
& CEO:
No. of Meetings
Name 1. Prof Balakrishnan N, Chairman
Held Attended
Mr Navin Puri, Chairman 4 4 2. Mr Arun Ramanathan
Mr Arun Kumar Verma 4 4 3. Mr Navin Puri
Prof Samir Kumar Barua# - - 4. Mr Ramesh Rangan
Mr Vinod Kumar Sharma## 4 4
5. Mr Vasudevan P N, MD & CEO
# Inducted into the Committee in the Board Meeting held on
January 28, 2022. Meetings & Attendance
## Stepped down as a Member of the Committee from January 28, The Committee held five (5) Meetings during the year on
2022.
June 14, 2021, September 22, 2021, November 08, 2021,
December 22, 2021, and March 23, 2022:
Terms of reference
1) To resolve the grievances of the security holders of No. of Meetings
Name
the Bank including complaints related to transfer/ Held Attended
transmission of shares, non-receipt of annual report, Prof Balakrishnan N, Chairman 5 4
non-receipt of declared dividends, issue of new/
Mr Arun Ramanathan * 3 3
duplicate certificates, general meetings etc. and
assisting with quarterly reporting of such complaints; Mr Navin Puri 5 5
Mr Ramesh Rangan* 3 3
2) To review measures taken for effective exercise of Mr Sridhar Ganesh** 1 1
voting rights by shareholders; Ms Tabassum Inamdar *** 2 1
3) To review adherence to the service standards adopted Mr Vasudevan P N, MD & CEO 5 5
by the Bank in respect of various services being *Inducted into the Committee in the Board Meeting held on October
rendered by the Registrar & Share Transfer Agent; 18, 2021.
** Ceased to be a member w.e.f. September 04, 2021.
4) To review the various measures and initiatives taken
*** Ceased to be a member w.e.f. October 20, 2021
by the Bank for reducing the quantum of unclaimed
dividends and ensuring timely receipt of dividend
Terms of reference
warrants/annual reports/statutory notices by the
shareholders of the Bank: The terms of reference of the Customer Service
Committee include:
5) Issue of duplicate certificates and new certificates on
split / consolidation / renewal; 1) To review the level of customer service in the Bank
including customer complaints and the nature of their
6) To allot shares on exercise of vested options granted resolution,
to employees of the Bank under the ESFB ESOP Plan 2)
To provide guidance in improving the level of
2019 or any such other scheme formulated by the customer service,
Bank from time to time;
3) To ensure that the Bank provides and continues to
7) To carry out such other functions as may be specified provide best-in-class services across all its categories
by the Board from time to time or specified/ of customers to help the Bank in protecting and
provided under the Companies Act or the SEBI growing its brand equity,
(Listing Obligations and Disclosure Requirements) 4)
To formulate a comprehensive Deposit Policy
Regulations, 2015 or by any other regulatory authority. incorporating issues such as claims, nomination and/
or operations in such accounts due to death of a
Details of Investor complaints received and redressed depositor, annual survey of depositor satisfaction,
during FY 2021-22 are as follows: product approval process and triennial audit of
There were no investor complaints received during customer services,
FY 2021-22 and no investor complaints were pending as
on March 31, 2022.
94
5) To oversee the functioning of the internal committee 10. IT Strategy Committee
for customer service,
Composition
6) To evolve innovative measures for enhancing the As on March 31, 2022, the IT Strategy Committee comprised
quality of customer service and improving the overall two (2) Independent Directors and the MD & CEO:
satisfaction level of customers,
7) To ensure implementation of directives received 1. Prof Balakrishnan N, Chairman
from RBI with respect to rendering of services to 2. Mr Navin Puri
Bank customers.
9. Business Committee Meetings & Attendance

Composition The Committee held Five (5) Meetings during the year on
As on March 31, 2022, the Business Committee comprised June 16, 2021, July 28, 2021, September 23, 2021, December
five (5) Independent Directors and the MD & CEO: 28, 2021 and March 22, 2022:
1. Mr Srinivasan N, Chairman No. of Meetings

Name
Held Attended
2. Mr Navin Puri
Prof Balakrishnan N, Chairman 5 5
3. Mr Ramesh Rangan
Mr Navin Puri 5 5
4. Ms Geeta Dutta Goel Mr Vasudevan P N, MD & CEO 5 5
Terms of reference
6. Mr Vasudevan P N, MD& CEO
1. To approve IT strategy and policy documents.
Meetings & Attendance 2. To ensure that management has an effective strategic
The Committee held five (5) Meetings during the year on planning process.
April 23, 2021, July 29, 2021, October 27, 2021, January 27, 3.
To ensure that IT strategy is aligned with
2022 and March 08, 2022: business strategy.
No. of Meetings 4. To ensure that investments in Information Technology
Name
Held Attended represent a balance of risks and benefits for sustaining
Bank’s growth and within the acceptable budget.
Mr Srinivasan N, Chairman 5 5
Mr Navin Puri 5 5 5. To monitor IT resources required to achieve strategic
goals and provide high-level direction for sourcing
and use of IT resources.
Ms Tabassum Inamdar * 2 2
6. To oversee implementation of processes and practices
Mr Vasudevan P N, MD & CEO 5 5
and ensuring that maximum value is delivered
Ms Geeta Dutta Goel** 1 1 to business.
Prof Samir Kumar Barua** 1 1
7. To ensure that all critical projects have a component
*Ceased to be a member w.e.f. October 20, 2021. for ‘project risk management’ from IT perspective (by
**Inducted into the Committee in the Board Meeting held on defining project success measures and following up
January 28, 2022. progress on IT projects).
8. To define and ensure effective implementation of
Terms of reference standards of IT Governance, Business Continuity and
The Committee reviews and submits it recommendations Data Governance.
to the Board on the following matters:
9. To ensure that there is an appropriate framework of
1. Formulation of Annual Business Plans information security risk assessment within the Bank.
2. Review of business performance vs the approved 10. To assess exposure to IT Risks and its controls, and
business plan evaluating effectiveness of management’s monitoring
of IT risks.
3. Mid-year review and revision of business plan, if
warranted by the circumstances 11. To provide direction to IT architecture design and
ensure that the IT architecture reflects the need for
4. New Business Initiatives proposed to be undertaken
legislative and regulatory compliance, the ethical use
by the Bank
of information and business continuity.
12.
To approve capital and revenue expenditure in
respect of IT Procurements.
Statutory Reports
11. Credit Committee No. of Meetings

Name
Composition Held Attended
As on March 31, 2022, the Credit Committee comprised Mr Ramesh Rangan 9 9

three (3) Independent Directors and the MD & CEO: Mr Vinod Kumar Sharma 9 9
1. Mr Ramesh Rangan, Chairman * Mr Vinod Kumar Sharma stepped down as the Chairman of the
Committee and Mr Srinivasan N was Appointed as Chairman of the
2. Mr Srinivasan N Committee in the Board Meeting held on June 01, 2021.
3. Mr Navin Puri
Terms of reference
The Committee makes suitable recommendations to the
Board on formulation, review and amendment of the
Policies of the Bank as it deems fit and in line with the
The Committee held six (6) Meetings during the period on regulations of RBI and other applicable laws.
April 28, 2021, June 21, 2021, July 28, 2021, September 15,
2021, October 28, 2021 and January 27, 2022:
13. Outsourcing Committee
No. of Meetings Composition
Name
Held Attended As on March 31, 2022, the Outsourcing Committee is
Mr Ramesh Rangan, Chairman 6 6 chaired by an Independent Director and comprises of
Mr Srinivasan N 6 5 three (3) Independent Directors and the MD & CEO:
Ms Tabassum Inamdar* 4 3
Mr Navin Puri 6 6 1. Prof Balakrishnan N, Chairman
2. Mr Navin Puri
* Ceased to be a member w.e.f. October 20, 2021.
Terms of reference 4. Mr Vasudevan P N, MD & CEO
The Committee considers and approve loans exceeding
` 50 crore. Meetings & Attendance
The Committee held three (3) Meetings during the year on
July 29, 2021, September 22, 2021 and January 24, 2022:
12. Policy Formulation Committee
Composition No. of Meetings
Name
As on March 31, 2022, the Policy Formulation Committee is Held Attended
chaired by an Independent Director and comprises of four Prof Balakrishnan N, Chairman 3 3
(4) Independent Directors: Mr Navin Puri 3 3
Mr Vinod Kumar Sharma 3 3
1. Mr Srinivasan N , Chairman Mr Vasudevan P N, MD & CEO 3 3
Terms of reference
3. Mr Ramesh Rangan
a. Approving a framework to evaluate the risks and
4. Mr Vinod Kumar Sharma materiality of all existing and prospective outsourcing
and the policies that apply to such arrangements;
b. Laying down appropriate approval authorities for
The Committee held Nine (9) Meetings during the year on outsourcing depending on risks and materiality.
June 01, 2021, June 17, 2021, July 30, 2021, August 10, 2021,
September 23, 2021, October 29, 2021, December 31, 2021, c. Undertaking regular review of outsourcing strategies
January 28, 2022 and March 26, 2022 and arrangements for their continued relevance, and
safety and soundness and
No. of Meetings
Name d. Deciding on business activities of a material nature to
Held Attended be outsourced, and
Mr Srinivasan N, Chairman * 9 9
e. Approving specific outsourcing arrangements.
96
14. Special Committee for Monitoring High Value 15. Review Committee for Identification of Wilful
Frauds Defaulters
Composition Composition
As on March 31, 2022, the Committee comprised four (4) As on March 31, 2022, the Review Committee for
Independent Directors and the Managing Director & CEO: Identification of Wilful Defaulters comprised three (3)
Independent Directors and MD & CEO:
1. Mr Srinivasan N, Chairman
1. Mr Vasudevan P N, MD & CEO, Chairman
3. Ms Geeta Dutta Goel
3. Prof Balakrishnan N
The Committee did not hold any Meeting during FY 2021-22.
The Committee held one (1) Meeting during the year on
September 24, 2021:
Terms of reference
No. of Meetings The Committee reviews the decisions of the Executive
Name
Held Attended Committee for identification of Wilful defaulters/ non-
Mr Srinivasan N, Chairman 1 1
cooperative borrowers and finalise the same.
Ms Tabassum Inamdar * 1 - 16. Merger Committee
Ms Geeta Dutta Goel# - - In connection with the Scheme of Amalgamation of the
Prof Samir Kumar Barua # - - ESFBL and EHL, the Board of the Bank constituted the
Mr Vasudevan P N, MD&CEO 1 1 Merger Committee to oversee the progress made in the
* Ceased to be a member w.e.f. October 20, 2021. process of amalgamation of EHL with ESFBL, from time
to time, jointly with a similar Committee of the Board
# Inducted into the Committee in the Board Meeting held on
January 28, 2022.
constituted by EHL. Subsequently, the terms of reference of
the Committee was expanded to include activities related
to Qualified Institutions Placement as well, completed
Terms of reference
during the year.
The Committee monitors and reviews all frauds of ` 1 crore
and above so as to: Composition
As on March 31, 2022, the Committee comprised three (3)
1) Identify the systemic lacunae, if any that facilitated
Independent Directors and MD & CEO:
perpetration of the fraud and put in place measures
to plug the same.
1. Mr Ramesh Rangan, Chairman
2) Identify the reasons for delay in detection, if any,
in reporting to the top management of the Bank
and RBI. 3. Mr Srinivasan N
3) Monitor progress of CBI/Police investigation and 4. Mr Vasudevan P N, MD & CEO
recovery position.
4) Ensure that staff accountability is examined at all
levels in all the cases of frauds and staff side action, The Committee held three (3) Meeting during the year
if required, is completed quickly without loss of time. on February 14, 2022, February 18, 2022 and February
19, 2022:
5) Review the efficacy of the remedial action taken to
prevent recurrence of frauds, such as strengthening No. of Meetings
Name
of internal controls. Held Attended
6) To put in place other measures as may be considered Mr Ramesh Rangan, Chairman 3 3
relevant to strengthen preventive measures Mr Arun Kumar Verma 3 3
against frauds. Mr Srinivasan N 3 3

Statutory Reports
Terms of reference in connection with the Securities, and to settle any

a)
To monitor the progress made in process of question, difficulty or doubts that may arise with
amalgamation of EHL with ESFBL from time to time regard to the offer, issue and allotment of the
Securities, subject however, to applicable laws, and
b) To consider and accept changes to be made to the to take such actions or give such directions as may be
Scheme of Amalgamation pursuant to regulatory necessary or desirable and to obtain any approvals,
directions and orders as may be received from RBI, permissions and / or sanctions which may be necessary
SEBI, Stock Exchanges, NCLT and such other authorities or desirable, as it may deem fit or as the Merger
Committee may suo moto decide in its absolute
c) To determine the form, terms and timing (i.e. opening discretion in the best interests of the Bank.
and/ or closing dates) of the QIP, including number k) To carry out other such functions, as may be assigned
of the Securities to be allotted in each tranche, floor by the Board from time to time
price, final allotment price in accordance with the
SEBI Regulations and/or any other applicable laws,
including any discount of up to 5% of the floor price 17. Committee of Independent Directors
or such other discount as may be permitted under As required under SEBI Master Circular dated December 22,
applicable law, premium amount in issue, listings 2020 on Scheme of Arrangements, the Bank constituted
on one or more stock exchanges, the date for the a Committee of Independent Directors to peruse the
opening and closure of the subscription period for the Scheme of Amalgamation of EHL and ESFBL (“Scheme”)
Securities (including the extension of such subscription alongwith the supporting documents and submit a report
period, as may be necessary or expedient), and to to the Board recommending the Scheme of Amalgamation
make and accept any modifications in the proposals (“Scheme”) of EHL and ESFBL for approval after confirming
as may be required by the authorities involved in such that the Scheme is not detrimental to the shareholders of
QIP and also agree to any conditions imposed by such the listed entities.
authorities at the time of granting their approval, to
do all acts, deeds, matters and things and to settle Composition
any questions or difficulties that may arise in regard As on March 31, 2022, the Committee comprised three (3)
to the QIP. Independent Directors:
d) to allot the Securities, in one or more series and / or 1. Mr Ramesh Rangan, Chairman
one or more tranches, issued in accordance with the
terms of offering. 2. Mr Arun Kumar Verma
e) to undertake all such actions and compliances as may 3. Mr Srinivasan N

be necessary in accordance with the SEBI Regulations
and the SEBI Listing Regulations or any other Meetings & Attendance
applicable laws. The Committee held two (2) Meeting during the year on
July, 26, 2021 and March 21, 2022:
f) to determine and vary utilization of the QIP proceeds
in accordance with the applicable laws. No. of Meetings
Name
g) to finalise the basis of allotment of the Securities on Held Attended
the basis of the subscriptions received (including in Mr Ramesh Rangan, Chairman 2 2
the event of over-subscription). Mr Arun Kumar Verma 2 2
h) to seek, if required, any approval, consent or waiver Mr Srinivasan N 2 2
from the Bank’s lenders, and/or parties with whom
the Bank has entered into various commercial and Terms of reference
other agreements, and/or any or all concerned a) review the proposed draft Scheme of Amalgamation
government and regulatory authorities in India, and/ of Equitas Holdings Limited with Equitas Small
or any other approvals, consents or waivers that may Finance Bank Limited along with the supporting
be required in connection with the creation, issue, documents viz., Valuation report from a registered
offer and allotment of the Securities. valuer to arrive at swap ratio, fairness opinion from a
SEBI-registered Merchant Banker, Auditors certificate
i) to apply to Stock Exchanges for obtaining of in-
on accounting treatment, etc
principle approval and filing of requisite documents
with the Registrar of Companies. b) call for and review any further document as the
Committee may deem fit and necessary
j) to finalize all the terms and conditions and the
structure of the Securities, to do all such acts, deeds, c) Based on review of the aforesaid documents and after
matters and things as the Merger Committee may, in deliberations, submit a report expressing its opinion
its absolute discretion deem necessary or desirable on whether the Scheme can be recommended to the
98
Board for approval after considering whether the Joint Meeting of Policy Formulation Committee and
Scheme is or is not detrimental to shareholders of Audit Committee of the Board
the Company.
No. of Meetings
Name
Joint Meetings of Committees Held Attended
Besides the above Committee Meetings, there were also Mr Srinivasan N 1 1

one Joint Meeting of Audit Committee of the Board and Mr Arun Kumar Verma 1 1
Policy Formulation Committee during the year on April Mr Vinod Kumar Sharma 1 1
12, 2021, and one Joint Meeting of Audit committee of Ms Tabassum Inamdar# 1 -
the Board and IT Strategy Committee held on March 31, Mr Ramesh Rangan 1 1
2022. Attendance of the meetings are mentioned below: # Retired w.e.f. October 20, 2021
Joint Meeting of IT Strategy Committee and Audit Committee of the Board

No. of Meetings
Name
Held Attended
Prof Balakrishnan N 1 1
Mr Vinod Kumar Sharma 1 1
Mr Navin Puri 1 1
Prof Samir Kumar Barua* 1 1
* Inducted into the Audit Committee in the Board Meeting held on January 28, 2022.ANNUAL GENERAL MEETINGS
Details relating to last three Annual General Meetings:
No. of Special
Year Date Time Location/Mode Resolution [s]
passed
2021 August 12, 2021 11.00 A.M. Video Conferencing Six
2020 July 28, 2020 05.30 PM Video Conferencing Nil
2019 August 1, 2019 05.30 PM 4th Floor, Phase II, Spencer Plaza, No.769, Mount Road, Anna Salai, Three
Chennai – 600 002
All the proposed resolutions, including Special Resolutions, were passed by the shareholders as set out in the
respective Notices.
Details of special resolution passed through postal ballot:

Pursuant to Section 110 of the Companies Act, 2013 read with Companies (Management & Administration) Rules, 2014,
the following Special Resolutions were proposed for approval of the shareholders by Postal Ballot and approved with
requisite majority.
Issue of Securities to Qualified Institutional

Particulars of the Resolution(s) Buyers for the purpose of achieving Minimum
Public Shareholding
Name of the Scrutiniser Dr B Ravi, Practising Company Secretary
Date of completion of Postal Ballot November 28, 2021
Date of Report of Scrutiniser November 29, 2021
Date of declaration of Results November 29, 2021
Particulars Voting pattern
Valid Ballots/Votes 43,61,76,316
In favour 43,61,72,738
Percentage (%) in favour of the resolution 99.9992%
Against 3,578
Percentage (%) against the resolution 0.00%

Statutory Reports
Procedure for postal ballot the Stock Exchanges i.e. BSE Limited and National Stock
The Postal Ballot has been carried out as per the procedure Exchange of India Limited. The said stock exchanges have
stipulated under the Companies (Management and introduced NSE Electronic Application Processing System
Administration) Rules, 2014. During the process of Postal (NEAPS) and BSE Listing centre portal through which
Ballot, shareholders are provided the remote e-voting various filings as required / prescribed under the SEBI
facility pursuant to Regulation 44 of SEBI (Listing Listing Regulations are made.
Obligations and Disclosure Requirements) Regulations,
2015 (“SEBI Listing Regulations”) and the said rules. Green Initiatives
Pursuant to the Companies (Accounts) Rules, 2014 and
as a measure of promoting Green Initiatives, the Bank
18. Means of Communication
proposes to send the financial statements for the year
The quarterly, half-yearly and annual financial results ended March 31, 2022 and Notice of sixth Annual General
of the Bank are published in one English and Regional Meeting by electronic mode to the Members whose email
language [Tamil] newspaper each viz., Financial Express Ids are registered with the Depository Participant(s)/ Bank
and Makkal Kural, respectively. The Bank’s financial for communication purposes. For Members who have not
results, official news releases, presentations made to registered their email address, physical copies will be sent
institutional investors/ analysts and transcript of investor in the permitted mode. The Bank seeks your support in
calls are hosted on the Bank website click here. promoting the Green Initiatives, as it is designed to protect
our fragile environment.
The financial results and other information filed by the
Bank from time to time are available on the website of
19. General Shareholder Information

Annual General Meeting Date July 19, 2022
Time 04.00 PM
Mode By Video-conferencing/ other audio visual means
Financial year April to March
The name and address of each stock exchange(s) at which the listed BSE Limited
entity's securities are listed and a confirmation about payment of Phiroze Jeejeebhoy Towers
annual listing fee to each of such Stock exchange(s): Dalal Street
Mumbai – 400 001
National Stock Exchange of India Limited
Exchange Plaza
Bandra Kurla Complex (BKC)
Bandra (East)
Mumbai – 400051
Listing Fees Listing fees payable to the stock exchanges for the financial
year 2021-22 have been paid in full.
Stock Code BSE – 543243
NSE – EQUITASBNK
ISIN INE063P01018
Market price data- high, low during each month in last financial Year Details are provided in the table below
Performance in comparison to broad-based indices such as BSE Details are provided in the chart below
Sensex, CRISIL Index, etc.
Registrar and Share Transfer Agents; Kfin Technologies Limited
Karvy Selenium Tower B, Plot No 31 & 32
Gachibowli, Financial District,
Nanakramguda, Serilingampally
Hyderabad – 500 032
Phone: +91 40 67161604
Share transfer system 100% of the equity shares of the Company are in electronic
form. Transfer of these shares are done through the
Depositories with no involvement of the Company
(except 115 shares which is less than 0.00001%).
100
Distribution of shareholding (as on 31.03.2022) Details are provided in the table below
Dematerialization of shares and liquidity (as on 31.03.2022) The total shares in dematerialized form are 100% (except 115
shares which is less than 0.00001%)
Outstanding Global Depository Receipts or American Depository Nil
Receipts or warrants or any convertible instruments, conversion date
and likely impact on equity date and likely impact on equity
Commodity price risk or foreign exchange risk and hedging activities Nil
Debenture Trustees : Ms. AnjaleeAthalye Ms. Deesha Trivedi
IDBI Trusteeship Services Ltd Catalyst Trusteeship Limited
Asian Building, Ground Floor, Windsor, 6th Floor, Office No
17 R Kamani Marg, – 604,
Ballard Estate, Fort, C.S.T. Road, Kalina,
Mumbai – 400001 Santacruz (East)
Mumbai – 400098
Plant locations Nil
Address for correspondence Company Secretary
4th Floor, Phase-II, Spencer Plaza,
No.769, Mount Road, Anna Salai, Chennai – 600 002
Phone: +91 44 42995000; Fax: +9144 42995050
Email: cs@equitasbank.com
Market price data - High, Low during each month in last Financial Year:
BSE NSE
Month
High Low High Low
Mar-22 57.55 44.75 57.85 46.7
Feb-22 58.5 50 58.7 50
Jan-22 61.4 52.25 61.5 47.4
Dec-21 63.7 58.2 63.8 58.1
Nov-21 68.1 58.35 68.2 58.3
Oct-21 71.25 61.25 71.2 61.2
Sep-21 64.2 55.15 64.2 58.1
Aug-21 63.25 55.75 63.3 55.7
Jul-21 76.75 58.1 76.8 58.05
Jun-21 62.8 54 63 57.1
May-21 64.5 52.2 64.5 54.1
Apr-21 62.7 49.4 63 50

Statutory Reports
Equitas Small Finance Bank Ltd and CNX Nifty
Equitas Small Finance Bank Limited and CNX Nifty

19,000.00 70.00
18,000.00 65.00
17.000.00 60.00
16,000.00 55.00
15,000.00 50.00
14,000.00 45.00
13,000.00 40.00
12,000.00 35.00
11,000.00 30.00
10,000.00 25.00
Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22
CNX NIFTY Equitas Small Finance Bank Limited
Equitas Small Finance Bank Limited Ltd and S&P BSE Sensex
Equitas Small Finance Bank and BSE Sensex

61,000.00 75.00
58,000.00
65.00
55.000.00
52,000.00 55.00
49,000.00
45.00
46,000.00
35.00
43,000.00
40,000.00 25.00
Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22
BSE Sensex Equitas Small Finance Bank Limited
Shareholding pattern as on March 31, 2022

DESCRIPTION SHARES % Equity
ALTERNATIVE INVESTMENT FUND 1,18,59,876 0.95
CLEARING MEMBERS 3,36,201 0.03
EMPLOYEES 67,92,097 0.54
FOREIGN PORTFOLIO - CORP 4,52,95,510 3.62
HUF 13,07,658 0.10
INDIAN PROMOTER COMPANIES 93,39,43,363 74.59
BODIES CORPORATES 10,09,953 0.08
MUTUAL FUNDS 18,10,57,446 14.46
NON RESIDENT INDIANS 13,81,999 0.11
NRI NON-REPATRIATION 5,68,649 0.05
RESIDENT INDIVIDUALS 5,21,78,087 4.17
QUALIFIED INSTITUTIONAL BUYER 1,60,17,316 1.28
TRUSTS 2,79,500 0.02
TOTAL : 1,25,20,27,655 100.00
102
Distribution of equity shareholding as on March 31, 2022:

Category No. of % of
Total Shares Amount % of Amount
(No. of shares) Shareholders Shareholders
1-5000 1,27,329 98.99 4,06,93,778 40,69,37,780 3.25
5001- 10000 758 0.59 54,59,834 5,45,98,340 0.44
10001- 20000 276 0.21 39,01,847 3,90,18,470 0.31
20001- 300000 86 0.07 21,25,710 2,12,57,100 0.17
30001- 40000 44 0.03 15,73,400 1,57,34,000 0.13
40001- 50000 23 0.02 10,69,512 1,06,95,120 0.09
50001- 100000 32 0.02 23,34,112 2,33,41,120 0.19
100001& above 76 0.06 1,19,48,69,462 11,94,86,94,620 95.43
TOTAL 1,28,624 100.00 1,25,20,27,655 12,52,02,76,550 100.00
The Non-Convertible Debentures (NCDs) of the Bank have been issued in dematerialized form and all outstanding
NCDs have been listed in the Bombay Stock Exchange (BSE). The details of ISIN Nos. and Stock Code of such listed NCDs
which are currently outstanding are as follows:
Outstanding as on
Sl. No. Nature of NCDs Issue Size [`] ISIN No Scrip Code
March 31, 2022 [`]
1 13.80%- unsecured 30,00,00,000 30,00,00,000 INE186N08033 952815
2 14.05%- unsecured 1,20,00,00,000 1,20,00,00,000 INE186N08041 952812
Name, designation and address of Compliance Officer:

Company Secretary
4th Floor, Phase-II, Spencer Plaza,
No.769, Mount Road, Anna Salai, Chennai – 600 002
Phone: +91 44 42995000; Fax: +9144 42995050
Email: cs@equitasbank.com
Disclosures in Relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) act, 2013:
The particulars of complaints received during the year under Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013
a. Number of complaints filed during the financial year 6
b. Number of complaints disposed of during the financial year 6
c. Number of complaints pending as on end of the financial year. Nil
FAIR PRACTICES CODE CODE OF CONDUCT

The Bank has adopted the Fair Practices Code pursuant As per the Bank’s policy on Code of Conduct for Directors
to the RBI guidelines issued in this regard, which is placed and Senior Management, all Directors and Senior
on the Bank’s website and displayed at all Branches of Management Personnel have affirmed compliance with
the Bank. the Code for the FY 2021-22. The Declaration to this effect
signed by MD& CEO has been annexed with this Report.
(Annexure-II)
MD &CEO/CFO CERTIFICATION
MD &CEO and CFO certificate to the Board as per
Regulation 17(8) of SEBI Listing Regulations has been REGULAR UPDATES
obtained. (Annexure-I) The Bank keeps the Board and stakeholders updated on
the happenings of the Bank and all events and happenings
of importance in the sector.

Statutory Reports
DISCLOSURES the Board and Mr Vasudevan P N is the Managing

Director & Chief Executive Officer of the Company.
A. Related Party Transactions
The particulars of transactions between the Bank and F. Internal Code of Conduct for Prevention of Insider
its related parties, as defined under Section 2(76) of Trading
the Act and in Accounting Standard 18, are set out in
The Board has adopted an Internal Code of Conduct
the financial statements. The Board has put in place a
for Prevention of Insider Trading in the securities of
policy on related party transactions and the same has
the Bank. The Code inter alia requires Designated
been uploaded on the Bank’s website https://www.
Persons obtaining pre-clearance from the appropriate
equitasbank.com/ESFB-Investor-Info .There were
authority in the bank for dealing in the securities of
no materially significant related party transactions
the Bank as per the criteria specified therein and
having potential conflict with the interests of the
prohibits the purchase or sale of securities of the Bank
Bank, during the year 2021-22.
while in possession of Unpublished Price Sensitive
Information in relation to the Bank besides during
B.
Details of non-compliances by the company,
the period when the trading window is closed. The
penalties, and strictures imposed on the company
period of trading window closure is intimated to all
by the stock exchanges or SEBI or any statutory
concerned well in advance from time to time.
authorities on any matter related to capital
markets during the last three years:
G. Certification on non-incurrence of disqualification
Nil
M/s B Ravi & Associates, Practising Company Secretaries
have given a certificate to the Board confirming that
C. Whistle blower policy
none of the Directors on the Board of the Bank have
The Bank has established a Whistle Blower Policy been debarred or disqualified from being appointed
pursuant to which Directors, employees and vendors or continuing as directors of companies by the Board/
of the Bank can report their concerns on unethical Ministry of Corporate Affairs or any such statutory
and improper behavior, practices, actual or suspected authority. The said certificate forms part of this
fraud or violation of the Bank’s Code of Conduct or Report. (Annexure-III)
any other wrongful conduct in the Bank or of its
employees. No employee of the Bank was denied H. Details of fee remitted to Statutory Auditors
access to the Audit Committee for raising any whistle
The total fees incurred by the Bank for the services
blower complaint.
rendered by Joint Statutory Auditors for FY 2021 - 22
is given below:
D. Mandatory Requirements
The Bank is in compliance with the mandatory Particulars
ESFBL
requirements. (` in lakhs)
(i) In capacity as auditors
E. Non-Mandatory Requirements Audit fees (includes fee for limited 78.95
The Bank has a record of unqualified financial review)
statements since inception. Statutory Certificates 15.49
Other Reporting services -
During the year, Auditors have had separate
Reimbursement of expenses 1.85
discussions with the Audit Committee without the
presence of the Management team. (ii) Other capacity -
Tax Audit 5.41
The Bank has complied with the requirement of
having separate persons to the post of Chairman
and Managing Director / Chief Executive Officer. Mr
Arun Ramanathan is the Non-Executive Chairman of
104
EQUITY SHARES IN THE DEMAT SUSPENSE ACCOUNT

In accordance with the requirement of Regulation 34(3) and Schedule V Part F of SEBI Listing Regulations, the Bank
reports that there are no equity shares lying in the demat suspense account which were issued in dematerialized form
pursuant to the public issue of the Bank.
Number of Number of equity

Particulars
shareholders shares
Aggregate number of shareholders and the outstanding shares in the demat suspense Nil Nil
account of the Bank as on April 1, 2021.
Shareholders who approached the Bank for transfer of shares from demat suspense account Nil Nil
during the year.
Shareholders to whom shares were transferred from the demat suspense account during the Nil Nil
year
Aggregate number of shareholders and the outstanding shares in the demat suspense Nil Nil
account of the Bank as on March 31, 2022
COMPLIANCE
The Bank is in compliance with the requirements stipulated under Regulations 17 to 27 and Clauses (b) to (i) of sub-
regulation (2) of Regulation 46 of SEBI Listing Regulations and amendments thereto, as applicable, with regard to
Corporate Governance.
M/s T R Chadha & Co LLP, Chartered Accountants and M/s Varma & Varma, Chartered Accountants, Joint Statutory
Auditors have certified that the Bank has complied with the mandatory requirements as stipulated under SEBI Listing
Regulations. The said Certificate is annexed to this Report.
TRANSFER OF UNCLAIMED / UNPAID AMOUNTS TO THE INVESTOR EDUCATION AND PROTECTION FUND:
The Bank has not declared any dividends from its incorporation. Hence, there is no unclaimed dividend relating to
the earlier financial years, which needs to be transferred to the Investors Education and Protection Fund, in terms of
Section 125 of the Act.
For and on behalf of the Board of Directors
Place: Chennai P N Vasudevan Arun Ramanathan

Date: May 19, 2022 MD & CEO Chairman

Statutory Reports
MD &CEO / CFO Certificate
The Board of Directors

This is to certify that:
1. We have reviewed the Financial Statements and the Cash Flow Statement for the Financial Year ended March 31,
2022 and that to the best of our knowledge and belief:
a. these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
b. these statements together present a true and fair view of the Bank’s affairs and are in compliance with existing
Accounting Standards, applicable laws and regulations.
2. There are, to the best of our knowledge and belief, no transactions entered into by the Bank during the year which
are fraudulent or illegal or violative of Bank’s Code of Conduct.
3. We accept responsibility for establishing and maintaining internal controls for Financial Reporting. We have
evaluated the effectiveness of internal control systems of the Bank pertaining to financial reporting and the same
were found to be adequate.
4. We confirm that
a. There has been no significant changes in internal control over financial reporting during the year
b. There has been no significant changes in accounting policies during the year and
c. There have been no instances of significant frauds of which we have become aware and the involvement
therein, if any, of the management or an employee having a significant role in the Bank’s internal control
system over financial reporting.
Sridharan N Vasudevan P N
Chief Financial Officer Managing Director and Chief Executive Officer
Place: Chennai
Date: 19.05.2022
106
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and clause (10)(i) of Para C of Schedule Vof SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015)
Based on the scrutiny of relevant records, forms, returns and information provided by EQUITAS SMALL FINANCE BANK
LIMITED(the ‘Company’), CIN:L65191TN1993PLC025280, having its registered office at 4th Floor, Phase II, Spencer Plaza
No.769, Mount Road, Anna Salai, Chennai- 600 002 and verification of disclosures and declarations given by the Directors
under applicable statutes and also based on the verification of facts regarding the Board of Directors of the Company,
available in the public domain, we hereby certify that as on 31.03.2022, none of the Directors on the Board of the
Company have been debarred or disqualified from being appointed or continuing as Director of companies either by
the Securities and Exchange Board of India or the Ministry of Corporate Affairs or any such statutory authority.
Signature:
FCS No.: 1810 CP No.: 3318
MANAGING PARTNER
Place : Chennai B RAVI & ASSOCIATES
Date : 26.04.2022 Firm Registration Number: P2016TN052400
Peer Review Certificate Number: 930/2020
UDIN: F001810D000273378
Declaration regarding compliance by Board Members and Senior Management personnel with the
Bank’s Code of Conduct
The Bank has, in respect of the financial year ended 31st March, 2022 received a declaration in writing from all Members
of the Board and Senior Management team of the Bank affirming their adherence to the Code of Conduct adopted
by the Bank.
Vasudevan P N
Managing Director and Chief Executive Officer
Place: Chennai
Date: 19.05.2022

Statutory Reports
Independent Auditor’s Certificate
To by the Institute of Chartered Accountants of India

The Members (the ICAI), the standards on auditing specified under
Equitas Small Finance Bank Limited section 143(10) of the Companies Act, 2013, in so far
as applicable for the purpose of this certificate and
1. We, T R Chadha & Co LLP and Varma and Varma , as per the Guidance Note on Reports or Certificates
Chartered Accountants, the Joint Statutory Auditors for Special Purposes issued by the ICAI which requires
of Equitas Small Finance Bank Limited (‘the Bank’), that we comply with the ethical requirements of the
have examined the compliance of the conditions of Code of Ethics issued by the ICAI.
Corporate Governance by the Bank for the year ended
March 31, 2022 as stipulated in regulations 17 to 27, 6.
We have complied with the relevant applicable
clauses (b) to (i) of sub-regulation (2) of regulation requirements of the Standard on Quality Control
46 of Securities and Exchange Board of India (SQC) 1, Quality Control for Firms that Perform Audits
(Listing Obligations and Disclosure Requirements) and Reviews of Historical Financial Information, and
Regulations, 2015. Other Assurance and Related Services Engagements.
Opinion
Management’s Responsibility
7. Based on our examination of relevant records and
2. The compliance of conditions of Corporate Governance
according to the explanations given to us and based
is the responsibility of the Management along with
on our reliance upon the representations made by
the Board of Directors. This responsibility includes the
the Directors and the Management, we are of the
design, implementation and maintenance of internal
opinion that the Bank has complied in all material
control and procedures to ensure the compliance of
respects with the conditions of Corporate Governance
the conditions of the corporate governance stipulated
as stipulated in the above mentioned Listing
in the Listing Regulations.
Regulations during the year ended March 31, 2022.
Auditor’s Responsibility 8. We further state that such compliance is neither

3.
Our responsibility is limited to examining the an assurance as to future viability of the Bank nor
procedures and implementation thereof, adopted the efficiency or effectiveness with which the
by the Bank for ensuring the compliance with the Management has conducted the affairs of the Bank.
conditions of the corporate governance. It is neither
an audit nor an expression of opinion on the financial Restriction on use
statements of the Bank.
9. This report is addressed to and provided to the
members of the Bank solely for the purpose of
4. We have examined the books of account and other
enabling it to comply with its obligations under the
relevant records and documents maintained by
Listing Regulations with reference to compliance with
the Bank for the purpose of providing reasonable
the relevant regulations of Corporate Governance
assurance on the compliance with the corporate
and should not be used by any other person or for any
governance requirements by the Bank.
other purpose. We have no responsibility to update
this report for events and circumstances occurring
5.
We conducted our examination of the relevant
after the date of this report.
records of the Bank in accordance with the Guidance
Note on Certification of Corporate Governance issued
For T R Chadha & Co LLP For Varma & Varma

Chartered Accountants Chartered Accountants
Firm Registration No 006711N/N500028 Firm Registration No 004532S
Sheshu Samudrala P R Prasanna Varma

Partner Partner
ICAI Membership No. 235031 ICAI Membership No. 025854
UDIN: 22235031ALMKHD7807 UDIN: 22025854ALMGUQ1099
Place: Chennai Place: Chennai

Date: 23.06.2022 Date: 23.06.2022
108
Business Responsibility Report

(Pursuant to Regulation 34 (2)(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“Listing Regulations”)
Introduction
Equitas Small Finance Bank Limited (“The Bank”) has adopted a Stakeholder Centric Sustainability Framework to
strategically drive its sustainability initiatives. The disclosures in this report are aligned to the Principles of Business
Responsibility as prescribed under the National Voluntary Guidelines on Social, Environmental and Economic
Responsibilities of Business (NVG-SEE) released by Ministry of Corporate Affairs, Government of India as mentioned below:
Principle 1 (P1) Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
Principle 2 (P2) Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
Principle 3 (P3) Businesses should promote the wellbeing of all employees.
Principle 4 (P4) Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized.
Principle 5 (P5) Businesses should respect and promote human rights.
Principle 6 (P6) Business should respect, protect, and make efforts to restore the environment.
Principle 7 (P7) Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
Principle 8 (P8) Businesses should support inclusive growth and equitable development.
Principle 9 (P9) Businesses should engage with and provide value to their customers and consumers in a responsible manner.
This report provides transparent and relevant information on the Bank’s efforts and its performance against the nine
principles of Business Responsibility.
Section A: General information about the Company

1 Corporate Identity Number (CIN) of the L65191TN1993PLC025280
Company
2 Name of the Company Equitas Small Finance Bank Limited
3 Registered address 4th Floor, Phase II, Spencer Plaza No.769, Mount Road,
Anna Salai Chennai TN 600002
4 Website www.equitasbank.com
5 Email id cs@equitasbank.com
6 Financial year reported 2021-22
7 Sector(s) that the Company is engaged in National Industrial Classification 2008
(industrial Section K: Financial and Insurance Activities
activity code-wise) Code: 64191
8 Three key products/services of the Company Assets Products
(as in balance sheet) Loan against Property
Commercial Vehicle Financing
Micro Finance
Liabilities Products
Demand Deposits
Time Deposits
Fee Based Products viz., distribution of insurance and mutual fund
products, providing of locker facility, issuance of Fastags etc.
9 Number of international locations Nil
10 Number of National locations The Bank operates from 869 locations across 18 States/Union Territories
(including National Capital Territory) of the country.
11 Markets served by the Company – National
Local/State/National/ International
Section B: Financial details of the company

Sr. No. Particulars Details
1. Paid up capital (` in lakh) ` 1,25,202.77
2 Total turnover (` in lakh) ` 3,99,722.58
3 Total profit after taxes (` in lakh) ` 28,073.18
4 Total spending on Corporate Social 6.84%
Responsibility (CSR) as a percentage of Profit
After Tax (%)

Statutory Reports
Business Responsibility Report (Contd.)
5 List of activities in which expenditure in 4 above Equitas Group undertakes various CSR activities in accordance with its
has been incurred ‘Policy on Corporate Social Responsibility’, which includes:
1. Educational Initiatives – Running schools in 7 locations across Tamil Nadu
2. Imparting of skill training to Joint Liability Group (JLG) women
members to improve their income levels
3. Health care initiatives – Health care and medical camps, Equitas Sugam
Clinics for the underprivileged
4. Holding job fairs for placement of unemployed youth in suitable jobs
5. Rehabilitates homeless pavement dweller families under Equitas Birds
Nest Project
Additional information on the Bank’s CSR initiatives is discussed under
MD&A Report forming part of the Annual Report
Section C – Other Details

1. Does the Company have any Subsidiary Company/ Companies? No
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent Company? Not applicable
If yes, then indicate the number of such Subsidiary Company(s)
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, No
participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities?
[Less than 30%, 30-60%, More than 60%]
Section D: BR Information
1. Details of Director(s) responsible for BR
(a) Details of the Director responsible for implementation of the BR policy(ies)
1. DIN 01550885
2. Name Mr. Vasudevan P N
3. Designation MD & CEO
(b) Details of the BR head
1. DIN (if applicable)
01550885
2. Name Mr. Vasudevan P N
3. Designation MD & CEO
4. Telephone number + 91 44 4299 5000
5. e-mail id corporate@equitas.in
2. Principle-wise (as per National Voluntary Guidelines) BR Policy(ies)
No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1 Do you have a policy(ies) for.... Y Y Y Y Y Y N Y Y
2 Has the policy been formulated in consultation with the Y Y Y Y Y Y - Y Y
relevant stakeholders?
3 Does the policy conform to any national / international Y Y Y Y Y Y - Y Y
Standards?
If yes, specify? (50 words)*
4 Has the policy been approved by the Board? Y Y Y Y Y Y - Y Y
5 Does the Company have a specified Committee of the Board/ Y Y Y Y Y Y - Y Y
Director/ Official to oversee the implementation of the policy?
6 Indicate the link for the policy to be viewed online All Policies which are statutorily required to be displayed on
our website www.equitasbank.com
7 Has the policy been formally communicated to all relevant Yes. There is an on-going process on communication to
internal and external stakeholders? internal and external stakeholders on all policies and
changes thereto.
8 Does the Company have in-house structure to implement Y Y Y Y Y Y - Y Y
the policy(ies)
9 Does the Company have a grievance redressal mechanism Y Y Y Y Y Y - Y Y
related to the policy(ies) to address stakeholders’ grievances
related to the policy(ies)
10 Has the Company carried out independent audit / evaluation Yes. The Heads of Departments are responsible for
of the working of these policies by an internal or external effective implementation of the Policies. The Compliance
agency? Department of ESFBL internally monitors the adherence to
implementation of policies mandated by RBI.
All Policies have been formulated after detailed deliberations on best practices adopted by banks and financial institutions and customized as
*
per our requirements.
110
P1
Code of Conduct adopted for employees, P9 The Bank has undertaken wide range of social
Directors and senior management and Whistle initiatives under Corporate Social Responsibility
Blower Policy ensure conducting of business with Policy to improve the quality of life of its client
Ethics, Transparency and Accountability. communities. Details of the same are given in the
MD&A Report, which forms part of the Annual
P2 Fair Practices Code promote responsible lending Report. ESFBL has a Board approved Customer
and banking practices. It ensures guard against Grievance Redressal Policy for expeditious
over-leveraging to ensure sustainability, redressal of customer grievances.
throughout the life cycle of the customer.
Governance related to BR
P3
Policy on Prevention of Sexual Harassment
(a) Indicate the frequency The performance on
and Whistle Blower Policy, endeavors to with which the Board of aspects of BR is reviewed
maintain an organization wide environment Directors, Committee of by CEO on a periodic
of care, concern, nurturing and to provide an the Board or CEO assesses basis i.e., at least once a
opportunity to women employees to accomplish the BR performance of the year.
their professional aspirations. This Policy can be Company (Within 3 months,
viewed online at www.equitasbank.com. 3-6 months, Annually, More
than 1 year).
P4 The interests of the marginalised and vulnerable (b) Does the Company publish Business Responsibility
stakeholders are addressed through Priority a BR or a Sustainability Report forms part of the
Report? What is the Annual Report displayed
Sector Lending and Financial Inclusion. The Fair
hyperlink for viewing this in the Investor Relations
Practices Code protects the interests of customers report? How frequently it is Microsite of the Bank
who are primarily from the vulnerable sections of published? www.ir.equitasbank.com
the society. Corporate Social Responsibility [CSR]
Policy seeks to engage with client communities Section E: Principle-Wise Performance
through community development initiatives
Principle 1: Businesses should conduct and govern
and improve their life and life style on a holistic
themselves with ethics, transparency and accountability
basis. This Policy can be viewed online at
www.equitasbank.com 1.
Does the policy relating to ethics, bribery and
corruption cover only the company? does it extend
P5
Code of Conduct for employees lays down to the Group/ Joint Ventures/ Suppliers/Contractors/
acceptable employee behavior while dealing NGOs/Others?
with clients on various aspects, including The Bank has put in place a Code of Conduct
human rights. covering all of its employees. The Code articulates
the ethical principles and acceptable behavior
P6 Policy on Environmental and Social Safeguards which the employees are expected to demonstrate
framework for Micro & Small Enterprises while being employees of the organization. It also
ensures integration of environmental and social guides all employees to uphold the values of the
safeguards into the appraisal process of loan Bank. The Code covers inter alia aspects related to
applications for micro & small enterprises. ethics, accountability, conflict of interest, bribery
and corruption. The Bank has also adopted Code
P7 While there is no specific policy outlined in of Conduct for Directors & Senior Management to
respect of this Principle, the Bank, through provide a framework to the Board members and
various trade bodies and associations, puts forth Senior Management in ensuring adoption of highest
a number of suggestions with respect to the ethical standards in managing the affairs of the Bank.
financial services sector. The Bank’s commitment to ethics and accountability
is emphasised upon in all interaction with the
P8 The very idea behind differentiated licensing stakeholders, right from the time of association with
of Small Finance Banks is to further the agenda the Bank.
of financial inclusion and bring about equitable
development. Hence, the entire operations of 2.
How many stakeholder complaints have been
the Bank are aligned towards this commitment. received in the past financial year and what
Further, in accordance with the Corporate percentage was satisfactorily resolved by the
Social Responsibility Policy, the Bank carries out management? if so, provide details thereof, in about
various social initiatives to promote equitable 50 words or so.
development amongst its client communities. The Bank has established various channels of
communication, including grievance redressal

Statutory Reports
mechanisms, for stakeholders to communicate

Affordable Housing Finance: The Bank supports the
their expectations and concerns. The details of the aspiration of owning a house for a large segment
stakeholder complaints are as below: of low-income families by focusing on affordable
housing. The Bank also offers the benefits accruing
Complaints % of under Pradhan Mantri Awas Yojana to deserving
Particulars received during complaints
2021-22 resolved beneficiaries from economically weaker sections and
low-income groups.
Customer complaints 2,500 98*
Investor complaints 1 100 SE and Financial Intermediaries: The Bank provides
M
capital in the form of term & working capital loans to
* Complaints pending resolution as on March 31, 2022 have enterprises which are small and have turnover in the
subsequently been resolved within the stipulated timelines
range of ` 1 – 10 crore. The loan sizes typically vary
between ` 10 – 100 lakh.
Principle 2: Businesses should provide goods and services
that are safe and contribute to sustainability throughout 2. For each such product, provide the following details
their life cycle in respect of resource use (energy, water, raw
1.
List up to 3 of your products or services whose material etc.) per unit of product (optional):
design has incorporated social or environmental (a)
Reduction during sourcing/production/
concerns, risks and/or opportunities. distribution achieved since the previous year
The Bank believes that it has a critical role to carry throughout the value chain?
out in furthering financial inclusion in the nation (b) Reduction during usage by consumers (energy,
to accomplish inclusive growth and equitable water) has been achieved since the previous
development. Towards this end, the Bank caters to year?
those who do not have access to formal financial
The Bank consciously endeavors to reduce the use of
system by offering loan products such as Micro
paper. Towards this end, tab-based loan processing is
Finance, Commercial Vehicle Finance, Housing
being used in micro finance lending. Similarly, opening
Finance, Loan against Property, Agri Loans, Gold
Selfe FD and Selfe savings account through digital
Loans, Business Loans etc. Along these lines, we are
platforms, initiatives are also being implemented in
actively involved in financial inclusion. The Bank
other segments as well. We have also introduced eco-
principally deals with financially vulnerable sections
friendly paper pads, pens & pencils at our boardroom.
of the society and hence it is even more critical to
be mindful and responsible in lending to guard the
The Bank has introduced ‘Pragati Card’ a QR code
borrowers from getting over leveraged. The Bank
(Quick Response Code) based payment enquiry
carries out due diligence to ascertain the repayment
solution for our microfinance customers. This
capacity of the borrowers before lending.
empowers the customers to scan and view payment
and loan account related information via a smart
Micro Finance: Micro lending is targeted at women
phone instantly without the need to contact branch
who belong to the economically weaker sections
staff/ call center. ‘Pragati Card’ has replaced the
of the society. Most of these loans are for income
erstwhile process of collection stickers and is currently
generation purposes, which provide assistance to
seen by customers as a digital passbook that gives
our customers to increase their household income,
real time payment information and also reduced the
develop financial independence over time and for
usage of paper for printing sticker.
most of our customers, an opportunity to become part
of the formal financial system. All of our customers
The account holders of the Bank are advised to
are included in the Credit Bureau database thereby
embrace paper-free banking practices like e-mail
ensuring their inclusion into the formal economy.
account statements, internet banking, mobile
banking, e-Wallet, Electronic Toll Collection and
V ehicle Finance: These loans are provided
other such activities.
predominantly to first time entrepreneurs in the
commercial logistics service industry, who have the
We pursue other sustainable practices to reduce our
expertise but lack capital to own a commercial vehicle
impact on the environment and promote efficient
of their own. This loan provides the experienced
consumption of resources viz. Heating, Ventilation
drivers with the opportunity to own their vehicle and
and Air Conditioning (HVAC) run time observing,
run the business to improve or develop their socio-
installation of CFL and other low energy consuming
economic standing.
office gear, limited printer and copier utilization.
112
3.
Does the company have procedures in place for A significant number of the financial products offered
sustainable sourcing (including transportation)? If by the Bank are utilized for empowering business
yes, what percentage of your inputs was sourced enterprise, innovation and capacity building among
sustainably? Also, provide details thereof, in about the financially vulnerable segments of the society. It
50 words or so. empowers them to scale up business activities. In the
Given the nature of the Bank’s business activities, long-run, this prompts better financial prospects for
sustainable sourcing of inputs is not significant in local businesses, which are clients of the Bank. The
the Bank’s operations. However, the Bank attempts improved business environment indirectly benefits
to reduce the environmental impact of its operations other local businesses, which are not clients.
through digitization, tech-led innovations and
recycling to the extent possible, some of which have The Bank has set up Business Correspondents (BCs)
been outlined elsewhere in this document. As a channel of banking, which aims to empower local
responsible corporate citizen, the Bank endeavors to business owners, usually micro-businesses, to act as
reduce the environmental impact of its operations. centers of banking.
4. Has the company taken any steps to procure goods 5.

Does the company have a mechanism to recycle
and services from local & small producers, including products and waste? if yes, what is the percentage
communities surrounding their place of work? if of recycling of products and waste (separately as
yes, what steps have been taken to improve their <5%, 5-10%, >10%). also, provide details thereof, in
capacity and capability of local and small vendors? about 50 words or so.
The business of the Bank is service oriented and not Our operational practices are engaged to constantly
material resource intensive. The human resource and reduce utilization of paper and dynamic measures
other services required for our day-to-day activities are being implemented across different processes
are by and large sourced within the neighborhood (Refer to Principle 2: Question 2) to facilitate
to the extent feasible. the same. Our digital banking and other related
activities additionally endeavor to meet sustainability
objectives of waste reduction and more efficient
resource utilisation.
Principle 3 – Businesses should promote the well-being of all employees

1 Total number of Employees 17,607
2 Total number of employees hired on contractual basis 9
3 Number of permanent women employees 1,897
4 Is there an employee association that is recognized by No, The Bank engages with employees through various fora to obtain
management constructive feedback. Regular Audio bridges are conducted offering
5 Percentage of your permanent employees who are an opportunity for all employees to directly express their views, ideas
members of this recognized employee association and feedback to the top management.
While there is a structured employee grievance redressal mechanism
in place, employees are also encouraged to directly approach CEO and
Audit Committee in case of serious grievances or unethical practices.
7. Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, sexual
harassment in the last financial year and pending, as on the end of the financial year.
No. of complaints filed during No. of complaints pending as
No. Category
the financial year at the end of financial year
1 Child labour/ forced labour/ involuntary labour Nil Nil
2 Sexual Harassment 6 Nil
3 Discriminatory Employment Nil Nil

Statutory Reports
8.
What percentage of your under mentioned an improvement by about 30% as compared to
employees were given safety & skill up-gradation the previous year. We have achieved an average of
training in the last year? 4.30 man-days per employee this year out of which
Induction Campaigns: Every on-boarded new joiner nearly 60% of the trainings were delivered through
undergoes an ‘Induction program’ that facilitates e-learning platform and 40% were delivered through
them in their quick integration with the Bank and Instructor-Led training programs. For the period
fast tracks their settling process with their respective 2021-22, we had imparted training to 15,722 unique
teams. 99% of our new joiners completed their employees through our various programs.
induction within 30 days from their date of joining.
Principle 4: Businesses should respect the interests of, and
egulatory Mandated Training: Continuous
R be responsive towards all stakeholders, especially those
monitoring ensured the successful completion of who are disadvantaged, vulnerable and marginalized.
Regulatory Mandated training requirements. These 1. Has the company mapped its internal and external
trainings focus on areas include Risk, Finance, Credit, stakeholders?
Treasury, POSH compliance, Information Security, The Bank engages with multiple stakeholders through
Code of Conduct, Prevention of Insider Trading, formal and informal channels of communication. The
Prevention of Fraud and the like. 100% of our key stakeholder groups are identified as follows:
eligible employees have successfully completed their
mandated KYC training. i) Customers
ii) Employees
S pecialised Training: The training content and
interventions focuses on two broad areas i.e., iii) Investors
Behavioural and Functional. The organisation iv) Vendors / Service Providers
possesses the in-house capability to develop and
deliver the learning content as well as seamlessly v) Regulators
collaborate with external learning partners wherever vi) Society and Community
deemed necessary.
The Bank constantly strives to keep the channels of
1. Behavioural: An array of behavioural interventions communication open and transparent with all its
was designed and delivered by tapping both stakeholders, with a view to maximizing stakeholder
our in-house and external capabilities. Some of satisfaction and value creation.
the Bank’s key external interventions delivered
include – programs for our Regional Managers 2.
Out of the above, has the company identified
and Digital solutions team. The Bank designed the disadvantaged, vulnerable & marginalized
and delivered 44 in-house behavioural sessions stakeholders?
covering 525 learners.
Equitas Group directly or through its implementing
agency, Equitas Development Initiatives Trust (EDIT)
2. Functional: The dynamic business market of
engages with stakeholders such as women, people
the Bank and evolving job roles determines the
with disabilities, unemployed youth and pavement
Functional learning agenda for the business. The
dwellers to create a positive impact through
Bank’s in-house functional interventions were
community development initiatives.
focused more on Selling skills, Products, Digital
Solutions, Process, Systems & Software, Risk,
EDIT runs seven schools primarily for socially and
Credit and Legal aspects.
economically weaker sections of society. These schools
provide affordable schooling to students belonging
The Bank’s collaboration with Manipal Institute
to economically weak backgrounds, with an emphasis
of Banking and Confluence Learning have
on the quality of the education imparted. Around
strengthened the capabilities of our branch
5,800 students have benefitted from these schools.
staff in the areas of Relationship management,
Cross selling, Wealth management, Productivity
EDIT has empowered around half a million women by
enhancement, Regulatory compliance etc.
imparting training in easily learnable vocational skills
The Bank also partnered with world leader in
such as tailoring, doll making and artificial jewellery
the sector, i.e. Skillsoft to digitally deliver key
making, enabling them to earn additional income.
training initiatives.
EDIT actively conducts job fairs across India for
Training Man-days: Through our above initiatives
unemployed youth of low income communities,
and concerted efforts, the Bank has successfully
thereby providing gainful employment to over
clocked 68,788 training man-days during 2021-22,
114
2,23,929 unemployed youth from lower income Principle 5: Businesses should respect and promote
segment. The recruitment and employment practices human rights
of Equitas Group are also attuned towards talent 1. Does the policy of the company on human rights
spotting and acquisition from among marginalized cover only the company or extend to the Group/
sections of the society. Joint Ventures/ Suppliers/Contractors/NGOs/others?
The Bank is committed to upholding the dignity of
EDIT also provides access to affordable healthcare
every individual engaged or associated with it. A
through various medical initiatives and medical
strong commitment to human rights is embedded
camps which has benefitted over 6.42 million
in the Fair Practices Code as well as Employee Code
people cumulatively.
of Conduct which lays down acceptable behaviour
on various aspects including human rights. All
During the Pandemic, Equitas, in addition to
employees who have direct interface to customers
spreading awareness on covid precautions to the
including collection staff are trained to be polite
women’s group, distributing groceries etc, also
and courteous to customers under all circumstances.
collaborated with Govt to vaccinate over 44.62 lakh
This code is applicable for all employees, associates,
doses in 7 states
business partners and Group companies with utmost
importance placed on fairness and transparency.
3.
Are there any special initiatives taken by the
company to engage with the disadvantaged,
2.
How many stakeholder complaints have been
vulnerable and marginalized stakeholders? if so,
received in the past financial year and what percent
provide details thereof, in about 50 words or so.
was satisfactorily resolved by the management?
Equitas Group directly or through its implementing
Kindly refer to response to Principle 1 – Question 2.
agency, Equitas Development Initiatives Trust (EDIT)
engages with stakeholders such as women, people
Principle 6: Business should respect, protect and make
with disabilities, unemployed youth and pavement
efforts to restore the environment
dwellers to create a positive impact through
community development initiatives. 1. Does the policy related to Principle 6 cover only the
company or extends to the Group/Joint Ventures/
EDIT runs seven schools primarily for socially and Suppliers/ Contractors/NGOs/Others
economically weaker sections of society. These schools Equitas SFB recognizes the need to respect, protect
provide affordable schooling to students belonging and make efforts to restore the environment in all its
to economically weak backgrounds, with an emphasis activities. Some of the initiatives taken in this regard
on the quality of the education imparted. Around have been outlined under Principle 2 – Question 2.
5,800 students have benefitted from these schools.
The Bank also endeavors to promote sound
EDIT has empowered around half a million women by environmental, social and governance standards (ESG).
imparting training in easily learnable vocational skills The Bank has a Policy on Environmental and Social
such as tailoring, doll making and artificial jewellery Safeguards framework for Micro & Small Enterprises,
making, enabling them to earn additional income. integrating environmental and social safeguards into
the appraisal process of loan applications for micro &
EDIT actively conducts job fairs across India for small enterprises.
unemployed youth of low income communities,
thereby providing gainful employment to over 2 lakh 2.
Does the company have strategies/ initiatives to
unemployed youth from lower income segment. The address global environmental issues such as climate
recruitment and employment practices of Equitas change, global warming etc.? If yes, please give
Group are also attuned towards talent spotting and hyperlink for webpage etc.
acquisition from among marginalized sections of In regard of its activities, Equitas SFB focuses on
the society. decreasing the utilization of paper to lessen the
carbon footprint. Towards this end, the Bank has
EDIT also provides access to affordable healthcare embarked its digital footprint over its products
through various medical initiatives and medical offerings and has been a consistent leader across
camps which has benefitted over 6 million people Small Finance Banks. Our focus is to empower clients
cumulatively and collaborated with Government by with ease of access and to transact efficiently and
conducting over 43,093 vaccination camps to help effectively using our variety of Digital offerings,
vaccinate 44.62 lakh doses. along these lines lessening the dependence on paper-
based banking activities.

Statutory Reports
We give an assortment of digital offerings - Internet 7. Number of show cause/ legal notices received from
and Mobile banking, Electronic toll collection, Digital CPCB/SPCB which is pending (i.e. not resolved to
Savings account opening, Virtual Debit card, Digital satisfaction) as on end of Financial Year.
fund transfers, Video KYC, etc. The operations of the Bank do not result in any
Our efficient operational practices, digital banking and significant environmental or pollution related issues.
environment management practices help us reduce No notices were received by the Bank as on March
our environmental footprint and help us achieve 31, 2022.
environmentally sustainable business practices.
Principle 7: Businesses, when engaged in influencing
3.
Does the company identify and assess potential public and regulatory policy, should do so in a responsible
environmental risks? manner
Equitas SFB is aware of the potential environmental 1. Is your company a member of any trade and chamber
risks. We have also integrated environmental and or association? If Yes, name only those major ones
social safeguards into the loan appraisal process. that your business deals with:
Some of the key trade and industry associations
4. Does the company have any project related to clean where the Bank is represented, include:
development Mechanism?
i. Indian Banks’ Association (IBA)
If so, provide details thereof, in about 50 words or so.
Also, whether any environmental compliance report ii. Fixed Income Money Market and Derivatives
is filed? Association (FIMMDA)
As detailed under Points 1-3 above, the Bank, iii.

SaDhan – The Association of Community
through its initiatives, is aware of the importance Development Finance Institutions
of safeguarding the environment. Being a bank, it iv. Association of Mutual Funds in India (AMFI)
cannot own/execute any non-banking projects (such
as CDM) as per RBI regulations. v. Confederation of Indian Industry (CII)
vi. The Indus Entrepreneurs (TiE)
5. Has the company undertaken any other initiatives
on – clean technology, energy efficiency, renewable 2.
Have you advocated/lobbied through above
energy etc.? If yes, please give hyperlink for web associations for the advancement or improvement
page etc. of public good? If Yes, specify the broad areas
As explained above, the Bank focuses on reducing (governance and administration, economic reforms,
the usage of paper and provides alternate banking inclusive development policies, energy security,
channels like internet banking, mobile banking, water, food security, sustainable Business Principles,
ATMs, Tab-based account opening, online & mobile others)
account opening etc. Through various industry associations and in various
Focus is placed on energy efficiency, through forums, Equitas has promoted various social and
practices including installation of CFL & LED light welfare initiatives like responsible lending, financial
fixtures and installation of similar energy efficient literacy, creation of a more transparent financial
office equipment. We also aim to leverage digital system, ease of credit access to the underbanked/
banking and digital business initiatives to reduce unbanked, operational ease of providing loans to
environmental impact related to usage of paper economically excluded sections of the economy, etc.
and reducing the need for travel by customers to
bank branches. Principle 8: Businesses should support inclusive growth
and equitable development
The Bank has also implemented paperless recruitment
The main focus of Equitas Group is inclusive growth and
process from application by the candidate to offer
equitable development. The word “Equitas” is a Latin
letter generation. This has reduced the need for
word meaning justice, fairness and equity. Towards
travel by recruitment executives and candidates.
this end, we wish to state that the very idea behind
This also reduces paper and printer usage during the
differentiated licensing of Small Finance Banks is to
recruitment process. We have also introduced eco-
further the agenda of financial inclusion and bring about
friendly paper pads, pens & pencils at our boardroom.
equitable development. Hence, the operations of ESFBL
are primarily directed towards inclusive growth and
6. Are the emissions/Waste generated by the company
equitable development.
within the permissible limits given by CPCB/SPCB for
the financial year being reported?
Right since inception, the Bank consciously focusses on
including differently abled women among its microfinance
The operations of the Bank do not result in any
borrowers. When sales officer forms joint liability group,
significant environmental or pollution related issues.
differently abled women are consciously identified and
116
included in group and provided microfinance loans. The 3.

Have you done any impact assessment of your
Bank through its Micro Finance loan programs supported initiative?
about 54,897 persons with disabilities during FY 2021-22 Social Impact study was conducted for all social
and cumulatively over 1,28,051 persons. Of these, around initiatives for the period from 2016-2018 by an external
33,447 visually challenged persons were supported during agency (Social Audit Network). The outcomes of CSR
the year and cumulatively 54,764. activities carried out through EDIT have been aligned
to 8 of the Sustainable Developmental Goals (SDG’s)
Encouraged by this model, Equitas has recently started thereby leading to social impact on the followings
including transgender persons in the joint liability groups. SDG’s
So far, Equitas has reached out to 282 such transgenders
in women’s group and brought them into the mainstream. 1.
Ending Poverty in slums using the Holistic
Ecosystem
1.
Does the company have specified programmes / 2. Extending Health Services
initiatives/ projects in pursuit of the policy related
to Principle 8? If yes, details thereof. 3. Quality Education through its Schools
The focus of the Bank is to improve the quality of 4. Gender Equality
life of customers by increasing their total household
5. Decent work & Economic growth through its job
asset value. Customers, who have not been able to
Fairs and skill training
access formal financing, are provided transparent and
trustworthy access to financing. The Bank has also 6. Reduced inequalities
developed a wide range of social initiatives towards
7. Sustainable Cities & Community
improving the quality of life of its client communities.
As a Bank, we have been able to enhance our 8. Partnership for the Goals
association with the financially excluded section of
the society. We not only offer credit, which is typically The Bank has initiated discussion with four agencies
of a short-term nature but also liabilities products like to conduct the impact study for FY 2019-2022, which
deposits, insurance etc. is being delayed due to the pandemic, we have slated
the same to start from Aug of 2022 when schools
The Bank also undertakes various activities through reopen and are in operation.
the Equitas Development Initiatives Trust (EDIT) which
support inclusive growth and equitable development. During the year, the Bank has initiated an impact
These CSR initiatives include providing high quality study for vaccination camps by Aspire Impact in
affordable education to students belonging to collaboration with the Government and the study
economically weaker sections, providing vocational is underway.
skills to the unemployed to include them in the formal
economy, providing free healthcare etc. Details of 4.
What is your company’s direct contribution to
such activities are explained in other sections of community development projects - amount in INR
this report. and the details of the projects undertaken?
During the year, an amount of ` 1,790.81 lakhs was
2. Are the programmes / projects undertaken through spent by the Bank through the implementing agencies
in-house team/own foundation/external NGO/ – Equitas Development Initiatives Trust (EDIT) (` 1,020
government structures/any other organization? lakhs) and Equitas Healthcare Foundation (EHF)
Inclusive growth and equitable development is (` 770.81 lakhs) for carrying out CSR activities. Details
provided to customers through our banking activities, of the said activities have been provided in the CSR
especially through the financing activities of the Report, forming part of the Annual Report.
Inclusive Banking division and Emerging Enterprise
Banking division of the Bank. 5. Have you taken steps to ensure that this community
development initiative is successfully adopted by
CSR programmes are undertaken by the Bank, directly the community? Please explain in 50 words, or so.
as well as through implementing agency, Equitas EDIT, through Equitas Gurukul schools provides to
Development Initiatives Trust, a registered public children from its client community
charitable trust. CSR initiatives carried out by the
Bank are detailed in the CSR Report, which forms part a. quality education to the poor
of the Annual Report.
b. necessary financial support to needy students

Statutory Reports
c.
counselling services to students through 3. Is there any case filed by any stakeholder against
alumni services the company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive

Besides, EDIT is rendering the following behaviour during the last five years and pending
complementary services among the client community as on end of financial year. If so, provide details
of Equitas: thereof, in about 50 words or so.
Nil
a. Placement through job fairs
4. Did your company carry out any consumer survey /
b.
Skill development training and financial consumer satisfaction trends?
support to indigent women for commencing
The Bank has a mechanism for undertaking customer
entrepreneurship journey
satisfaction survey with the help of a fully automated
digital platform for monitoring customer satisfaction
c. Assisting hospital to conduct medical camps
trends. We conduct 2 types of surveys:
and spreading messages on community health
through the client network 1. Survey to assess loyalty of our customers (Net
promotor Score) on a biannual basis
d. Comprehensive assistance towards rehabilitating
NPS survey was conducted on the customers who
pavement dwellers through Equitas Birds Nest
have been assigned a Relationship manager. NPS
program viz., rental assistance for six months,
improved from 78 during the first half of FY2021-
teaching of livelihood skills, enabling linkages
22 to 87 in later half of FY2021-22
to markets, enabling obtention of ration cards,
counselling on financial literacy and providing 2. Customer satisfaction survey (C-sat) to assess the
them microfinance loans in deserving cases, satisfaction after every transaction across the
thereby enabling their economic empowerment. bank touchpoints.
The satisfaction scores across the 4 quarters have
By offering the comprehensive bouquet of services
been trending between 3.8 – 4.3 across channels
as enumerated above, Equitas ensures successful
(on a 5 point scale – where 5 stands for Excellent,
adoption of its community development initiatives.
4-very good, 3 – average, 2 – poor & 1- very
poor). The Bank monitors C-sat across Mobile/
Principle 9: Businesses should engage with and provide
Internet banking, ATM, Account opening, Branch
value to their customers and consumers in a responsible
Servicing, Contact centre servicing & Service
manner
request management. During the year, more
1. What percentage of customer complaints/consumer than 28 Lakh responses were received for various
cases are pending as on the end of financial year. surveys conducted.
2% of the customer complaints are pending as at the
The C-sat survey aims to provide feedback on
end of the Financial Year 2021-22. All the pending
service delivery by staff and process efficiency
complaints have since been resolved within the
as perceived by the customer, in addition to
prescribed timelines.
the overall user experience. Based on the
survey feedback the Bank has improved or
2. Does the company display product information on
implemented more than 20 processes/features
the product label, over and above what is mandated
for better experience. During the last quarter of
as per local laws?
Fy’22, customers rated our Account opening &
The Bank does not market physical products. It our Internet and Mobile banking experience, the
endeavors to provide transparent information on highest at 4.3/5 & 4.4/5 respectively.
its financial products through its website, which
has detailed information on product features,
service charges and fees applicable. In respect of For and on behalf of the Board of Directors
the Bank, interest rates for various deposit schemes
are published on the website. SMS alerts are sent
to customers when charges or fees get triggered or Place: Chennai Vasudevan P N Arun Ramanathan
levied in their deposit accounts. Date: May 19, 2022 MD & CEO Chairman
As an NBFC-MFI, Equitas was the pioneer in disclosing

the interest rates on reducing balance basis in the
customer passbook, which later became a regulatory
norm for the industry.
118
Independent Auditor’s Report
To the Members of Equitas Small Finance Bank Limited of India together with the ethical requirements that are
relevant to our audit of the financial statements under
the provisions of the Act and the Rules there under,
Report on the Audit of the Financial Statements
and we have fulfilled our other ethical responsibilities
Opinion in accordance with these requirements and the Code
We have audited the accompanying financial statements of Ethics. We believe that the audit evidence we have
of Equitas Small Finance Bank Limited (the “Bank”), which obtained is sufficient and appropriate to provide a basis
comprise the Balance Sheet as at March 31 2022, the Profit for our audit opinion on the financial statements.
and Loss Account and the Cash Flow Statement for the
year then ended, and notes to the financial statements, Emphasis of Matter
including a summary of significant accounting policies and We draw attention to Schedule 17.2.2 to the accompanying
other explanatory information. financial statement which describes the economic
and social disruption the Bank is facing as a result of
In our opinion and to the best of our information and COVID-19 pandemic, and that its possible consequential
according to the explanations given to us, the aforesaid implications, if any, on the Bank’s operations and financial
financial statements give the information required by the results are dependent on future developments, which are
Banking Regulation Act, 1949 as well as the Companies Act, highly uncertain.
2013, as amended (the “Act”) in the manner so required
for Banking Companies and give a true and fair view Our opinion is not modified in respect of this matter.
in conformity with the accounting principles generally
accepted in India of the state of affairs of the Bank as at Key Audit Matters
March 31, 2022,and its profit and its cash flows for the year
Key audit matters are those matters that, in our professional
ended on that date.
judgment, were of most significance in our audit of the
financial statements for the financial year ended March
Basis for Opinion
31, 2022. These matters were addressed in the context of
We conducted our audit of the financial statements our audit of the financial statements as a whole, and in
in accordance with the Standards on Auditing (SAs), forming our opinion thereon, and we do not provide a
as specified under section 143(10) of the Act. Our separate opinion on these matters. For each matter below,
responsibilities under those Standards are further our description of how our audit addressed the matter is
described in the ‘Auditor’s Responsibilities for the Audit provided in that context.
of the Financial Statements’ section of our report. We are
independent of the Bank in accordance with the ‘Code of We have determined the matters described below to be
Ethics’ issued by the Institute of Chartered Accountants the key audit matters to be communicated in our report.
Key Audit Matters How our audit addressed the key audit matter
Identification of non-performing advances and provisioning for advances
Advances form a material portion of the Bank’s assets We considered the Bank’s accounting policies for NPA identification,
and the quality of the Bank’s loan portfolio is measured and provisioning and have assessed the compliance with the IRAC norms
in terms of the proportion of non-performing assets prescribed by the RBI read with the specific RBI guidelines relating to
(NPAs) to the total loans and advances. Identification, COVID-19 Regulatory Package.
classification and provisioning of NPAs are governed We tested the operating effectiveness of the controls (including application
by the prudential norms on Income Recognition and and IT dependent controls) for borrower wise classification of loans in the
Asset Classification (“IRAC”) and the specific guidelines respective asset classes viz., standard, sub-standard, doubtful and loss with
relating to COVID-19 Regulatory Package issued by the reference to their days-past-due (DPD) status (including consideration of the
Reserve Bank of India (“RBI”) which include rule-based moratorium on loans offered under the Regulatory Package).
and judgmental factors. Management is also required
to make estimates of stress, recoverability issues, and We considered the special mention accounts (“SMA”) reports submitted by
security erosion in respect of specific borrowers or the Bank to the RBI’s central repository of information on large credits (CRILC)
groups of borrowers, on account of specific factors that and made inquiries of personnel in the Bank’s credit and risk departments
may affect such borrowers/groups (including factors regarding indicators of stress or the occurrence of specific event(s) of default
relating to economic stress arising out of the COVID-19 or other factors affecting the loan portfolio / particular loan product category,
pandemic). that may affect NPA identification and/or provisioning.
In view of the significance of this area to the overall We have verified the borrowers request letters on sample basis for the
audit of financial statements, it has been considered as restructuring of accounts and also verified the process adopted by the bank
a key audit matter. in restructuring the same.
Selected the borrowers based on quantitative and qualitative risk factors for
their assessment of appropriate classification as NPA including computation
of overdue ageing to assess its correct classification and provision amount as
per extant IRAC norms and Bank policy.
We performed analytical procedures which considered both financial and non-
financial parameters, in relation to identification of NPAs and provisioning
there against.

Financial Statements
Independent Auditor’s Report (Contd.)
Key Audit Matters How our audit addressed the key audit matter
Information Technology (“IT”) Systems and Controls impacting Financial Reporting
The IT environment of the Bank is complex and involves As part of our Audit, we have carried out testing of the IT general controls,
a large number of independent and interdependent application controls and IT dependent manual controls.
IT systems used in the operations of the Bank for We tested the design and operating effectiveness of the Bank’s IT access
processing and recording a large volume of transactions controls over the key information systems, including changes made to the
at numerous locations. As a result, there is a high degree IT landscape during the audit period, that are critical to financial reporting.
of reliance and dependency on such IT systems for the
financial reporting process of the Bank. We tested IT general controls in the nature of controls over logical access,
changes management, and other aspects of IT operational controls. These
There has been certain enhancement in the information included testing that requests for access to systems were reviewed and
technology (IT) infrastructure of the Bank in the current authorized.
year. As the IT systems and processes continue to
mature in view of the evolving business and regulatory Where deficiencies were identified, we tested compensating controls or
landscape, changes in the technology environment have performed alternate procedures.
been carried out by the Bank.
IT general controls include user access management
and change management across applications, networks,
database, and operating systems.
Due to the pervasive nature and complexity of the
IT environment as well as its significance in relation
to accurate and timely financial reporting we have
identified this area a key audit matter.
Information other than the Financial Statements and and provisions of Section 29 of the Banking Regulation
Auditors’ Report thereon Act, 1949, and circulars, guidelines and directions issued
The Bank’s Board of Directors is responsible for the by Reserve Bank of India (“RBI”) from time to time.
other information. The other information comprises the
information included in the Annual report, but does not This responsibility also includes maintenance of adequate
include the financial statements and our auditor’s report accounting records in accordance with the provisions of
thereon. The Bank’s annual report is expected to be made the Act for safeguarding of the assets of the Bank and for
available to us after the date of this Auditors’ Report. preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting
Our opinion on the financial statements does not cover policies; making judgments and estimates that are
the other information and we do not express any form of reasonable and prudent; and the design, implementation
assurance conclusion thereon. and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
In connection with our audit of the financial statements, and completeness of the accounting records, relevant
our responsibility is to read the other information and, to the preparation and presentation of the financial
in doing so, consider whether such other information is statements that give a true and fair view and are free from
materially inconsistent with the financial statements or our material misstatement, whether due to fraud or error.
knowledge obtained in the audit or otherwise appears to
be materially misstated. When we read the Bank’s annual In preparing the financial statements, management is
report, if we conclude that there is a material misstatement responsible for assessing the Bank’s ability to continue
of this other information, we are required to communicate as a going concern, disclosing, as applicable, matters
the matter to those charged with governance. related to going concern and using the going concern
basis of accounting unless management either intends
Responsibilities of Management and Those Charged to liquidate the Bank or to cease operations, or has no
with Governance for the Financial Statements realistic alternative but to do so.
The Bank’s Board of Directors is responsible for the
Those Board of Directors are also responsible for overseeing
matters stated in section 134(5) of the Act with respect
the Bank’s financial reporting process.
to the preparation of these financial statements that give
a true and fair view of the financial position, financial
Auditor’s Responsibilities for the Audit of the
performance and cash flows of the Bank in accordance
with the accounting principles generally accepted in
India, including the accounting standards specified under Our objectives are to obtain reasonable assurance about
section 133 of the Act read with Rule 7 of the Companies whether the financial statements as a whole are free from
(Accounts) Rules, 2014 in so far as they apply to the Bank material misstatement, whether due to fraud or error,
120
and to issue an auditor’s report that includes our opinion. We communicate with those charged with governance
Reasonable assurance is a high level of assurance, but is regarding, among other matters, the planned scope and
not a guarantee that an audit conducted in accordance timing of the audit and significant audit findings, including
with SAs will always detect a material misstatement when any significant deficiencies in internal control that we
it exists. Misstatements can arise from fraud or error and identify during our audit.
are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the We also provide those charged with governance with
economic decisions of users taken on the basis of these a statement that we have complied with relevant
financial statements. ethical requirements regarding independence, and to
communicate with them all relationships and other
As part of an audit in accordance with SAs, we exercise matters that may reasonably be thought to bear on our
professional judgment and maintain professional independence, and where applicable, related safeguards.
skepticism throughout the audit. We also:
From the matters communicated with those charged
• Identify and assess the risks of material misstatement of with governance, we determine those matters that
the financial statements, whether due to fraud or error, were of most significance in the audit of the financial
design and perform audit procedures responsive to statements for the financial year ended March 31, 2022
those risks, and obtain audit evidence that is sufficient and are therefore the key audit matters. We describe these
and appropriate to provide a basis for our opinion. The matters in our auditor’s report unless law or regulation
risk of not detecting a material misstatement resulting precludes public disclosure about the matter or when, in
from fraud is higher than for one resulting from error, extremely rare circumstances, we determine that a matter
as fraud may involve collusion, forgery, intentional should not be communicated in our report because the
omissions, misrepresentations, or the override of adverse consequences of doing so would reasonably be
internal control expected to outweigh the public interest benefits of
such communication.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
Other Matters
appropriate in the circumstances. Under section 143(3)
of the Act, we are also responsible for expressing our The financial statements of the Bank for the year ended
opinion on whether the Bank has adequate internal March 31, 2021 were audited by M/s T R Chadha & Co
financial controls with reference to financial statements LLP Chartered Accountants, the statutory auditors of the
in place and the operating effectiveness of such controls. bank, whose report dated April 29, 2021 had expressed
an unmodified opinion on those financial statements.
• Evaluate the appropriateness of accounting policies Accordingly, M/s Varma & Varma, Chartered Accountants,
used and the reasonableness of accounting estimates do not express any opinion on those figures reported as
and related disclosures made by management. comparative figures in the financial statements for the
• Conclude on the appropriateness of management’s use year ended March 31, 2022. Our opinion is not modified
of the going concern basis of accounting and, based in respect of this matter.
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions Report on Other Legal and Regulatory Requirements
that may cast significant doubt on the Bank’s ability 1. The Balance Sheet and the Profit and Loss Account
to continue as a going concern. If we conclude that have been drawn up in accordance with the provisions
a material uncertainty exists, we are required to of Section 29 of the Banking Regulation Act, 1949
draw attention in our auditor’s report to the related and section 133 of the Act read with Rule 7 of the
disclosures in the financial statements or, if such Companies (Accounts) Rules, 2014.
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained 2. As required by sub section (3) of section 30 of the
up to the date of our auditor’s report. However, future Banking Regulation Act, 1949 we report that:
events or conditions may cause the Bank to cease to
continue as a going concern. a.
We have obtained all the information and
explanations which, to the best of our knowledge
• Evaluate the overall presentation, structure and content
and belief, were necessary for the purpose of our
of the financial statements, including the disclosures,
audit and have found them to be satisfactory;
and whether the financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.

Independent Auditor’s Report (Contd.)
b. The transactions of the Bank, which have come refer to our separate Report in “Annexure 1” to
to our notice, have been within the powers of this report;
the Bank; and
(g)
In our opinion, the entity being a banking
c. The financial accounting systems of the Bank company, remuneration to the whole-time
are centralized and therefore, accounting director during the year ended March 31,
returns for the purpose of preparing financial 2022 has been paid / provided by the Bank in
statements are not required to be submitted by accordance with the provisions of Section 35B (1)
the branches. Our audit is carried out centrally of the Banking Regulation Act 1949; and
as all the necessary records and data required for
the purposes of our audit are centrally available. (h) With respect to the other matters to be included
However, we have visited 22 branches covering in the Auditor’s Report in accordance with Rule
15.10% of the gross advances as on March 31, 11 of the Companies (Audit and Auditors) Rules,
2022, for the purpose of our audit, in compliance 2014, as amended in our opinion and to the
with the extant RBI Circular. best of our information and according to the
explanations given to us:
3.
As required by Section 143(3) of the Act, we
report that: i.
The Bank has disclosed the impact of
pending litigations on its financial position
(a) We have sought and obtained all the information in its financial statements – Refer to
and explanations which to the best of our Schedule 12 and Schedule 18.14(k) to the
knowledge and belief were necessary for the financial statements;
purposes of our audit;
ii.
The Bank did not have any long-term
(b) In our opinion, proper books of account as contracts including derivative contracts
required by law have been kept by the Bank for which there were any material
so far as it appears from our examination of foreseeable losses;
those books;
iii. There were no amounts which were required
(c) The Balance Sheet, the Profit and Loss Account, to be transferred to the Investor Education
and the Cash Flow Statement dealt with by and Protection Fund by the Bank
this Report are in agreement with the books
of account; iv. (a)
The Management has represented
that, to the best of its knowledge and
(d) In our opinion, the aforesaid financial statements belief, no funds (which are material
comply with the accounting standards specified either individually or in the aggregate)
under section 133 of the Act read with Rule 7 have been advanced or loaned or
of the Companies (Accounts) Rules, 2014 to invested (either from borrowed funds
the extent they are not inconsistent with the or share premium or any other sources
accounting policies prescribed by RBI; or kind of funds) by the Bank to or in
any other persons / entities, including
(e) On the basis of the written representations foreign entities (‘Intermediaries’), with
received from the directors as on March 31, 2022 the understanding, whether recorded
taken on record by the Board of Directors, none in writing or otherwise, that the
of the directors is disqualified as on March 31, Intermediary shall, whether directly or
2022 from being appointed as a director in terms indirectly lend or invest in other persons
of Section 164(2) of the Act; or entities identified in any manner
whatsoever by or on behalf of the Bank
(f) With respect to the adequacy of the internal (“Ultimate Beneficiaries”) or provide
financial controls over financial reporting of the any guarantee, security or the like on
Bank with reference to these financial statements behalf of the Ultimate Beneficiaries;
and the operating effectiveness of such controls,
122
(b)
The Management has represented appropriate in the circumstances and
that, to the best of its knowledge and according to the information and
belief, no funds (which are material explanations provided to us by the
either individually or in the aggregate) Management in this regard, nothing
have been received by the Bank from has come to our notice that has caused
any persons / entities, including foreign us to believe that the representations
entities (“Funding Parties”), that the made by the Management under sub-
company shall directly or indirectly, lend clause (a) and (b) above contain any
or invest in other persons or entities material misstatement.
identified in any manner whatsoever
by or on behalf of the Funding Party v.
As stated in Schedule 18.1(c)(v) to the
(“Ultimate Beneficiaries”) or provide financial statements, the company has
any guarantee, security or the like on not declared or paid any dividend during
behalf of the Ultimate Beneficiaries; the year and hence, the related reporting
requirements under sub-clause (f) of Rule
(c) Based on the audit procedures which 11 of the Companies (Audit and Auditors)
we have considered reasonable and Rules, 2014 is not applicable.
For T R Chadha & Co LLP, For Varma & Varma,

Firm Registration No.: 006711N/N500028 Firm Registration No.: 004532S

Partner Partner
Membership No: 235031 Membership No: 025854
UDIN: 22235031AIKLQJ5076 UDIN: 22025854AIKMZC3642

Date: 04.05.2022 Date: 04.05.2022

Annexure 1
To the Independent Auditor’s Report of Even Date on the Financial Statements of Equitas Small Finance Bank Limited
Report on the Internal Financial Controls with Our audit involves performing procedures to obtain audit
reference to Financial Statements under Clause (i) evidence about the adequacy of the internal financial
of Sub-section 3 of Section 143 of the Companies controls with reference to Financial Statements and their
Act, 2013 (“the Act”) operating effectiveness. Our audit of internal financial
controls with reference to Financial Statements included
We have audited the internal financial controls with
obtaining an understanding of internal financial controls
reference to Financial Statements of Equitas Small
with reference to Financial Statements, assessing the risk
Finance Bank Limited (the “Bank”) as of March 31, 2022 in
that a material weakness exists, and testing and evaluating
conjunction with our audit of the financial statements of
the design and operating effectiveness of internal control
the Bank for the year ended on that date.
based on the assessed risk. The procedures selected depend
on the auditor’s judgment, including the assessment of the
Management’s Responsibility for Internal Financial risks of material misstatement of the financial statements,
Controls whether due to fraud or error.
The Bank’s Management is responsible for establishing
and maintaining internal financial controls based on the We believe that the audit evidence we have obtained is
internal control with reference to Financial Statements sufficient and appropriate to provide a basis for our audit
criteria established by the Bank considering the essential opinion on the Bank’s internal financial controls system
components of internal control stated in the Guidance over financial reporting.
Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Meaning of Internal Financial Controls with
Accountants of India. These responsibilities include the reference to Financial Statements
design, implementation and maintenance of adequate
A Bank’s internal financial control with reference to
internal financial controls that were operating effectively
Financial Statements is a process designed to provide
for ensuring the orderly and efficient conduct of its
reasonable assurance regarding the reliability of financial
business, including adherence to the Bank’s policies, the
reporting and the preparation of financial statements for
safeguarding of its assets, the prevention and detection
external purposes in accordance with generally accepted
of frauds and errors, the accuracy and completeness of the
accounting principles. A Bank’s internal financial control
accounting records, and the timely preparation of reliable
with reference to Financial Statements includes those
financial information, as required under the Companies
policies and procedures that
Act, 2013.
1)
pertain to the maintenance of records that, in
Auditor’s Responsibility reasonable detail, accurately and fairly reflect the
Our responsibility is to express an opinion on the Bank’s transactions and dispositions of the assets of the bank;
internal financial controls with reference to Financial
Statements based on our audit. We conducted our audit 2) provide reasonable assurance that transactions are
in accordance with the Guidance Note on Audit of Internal recorded as necessary to permit preparation of
Financial Controls Over Financial Reporting (the “Guidance financial statements in accordance with generally
Note”) and the Standards on Auditing as specified under accepted accounting principles, and that receipts
section 143(10) of the Companies Act, 2013, to the extent and expenditures of the bank are being made only
applicable to an audit of internal financial controls, both in accordance with authorizations of management
applicable to an audit of Internal Financial Controls and, and directors of the bank; and
both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require 3) provide reasonable assurance regarding prevention
that we comply with ethical requirements and plan and or timely detection of unauthorized acquisition, use,
perform the audit to obtain reasonable assurance about or disposition of the bank’s assets that could have a
whether adequate internal financial controls over financial material effect on the financial statements.
reporting was established and maintained and if such
controls operated effectively in all material respects.
124
Inherent Limitations of Internal Financial Controls Opinion

with reference to Financial Statements In our opinion, the Bank has, in all material respects, an
Because of the inherent limitations of internal financial adequate internal financial controls system with reference
controls with reference to Financial Statements, including to financial statements and such internal financial
the possibility of collusion or improper management controls with reference to Financial Statements were
override of controls, material misstatements due to error operating effectively as at March 31, 2022, based on the
or fraud may occur and not be detected. Also, projections internal control with reference to Financial Statements
of any evaluation of the internal financial controls with criteria established by the Bank considering the essential
reference to Financial Statements to future periods are components of internal control stated in the Guidance
subject to the risk that the internal financial control with Note on Audit of Internal Financial Controls Over Financial
reference to Financial Statements may become inadequate Reporting issued by the Institute of Chartered Accountants
because of changes in conditions, or that the degree of of India.
compliance with the policies or procedures may deteriorate.
For T R Chadha & Co LLP, For Varma & Varma,

Firm Registration No.: 006711N/N500028 Firm Registration No.: 004532S

Partner Partner
Membership No: 235031 Membership No: 025854
UDIN: 22235031AIKLQJ5076 UDIN: 22025854AIKMZC3642

Date: 04.05.2022 Date: 04.05.2022

Balance Sheet
(All amounts in 000’s of `, unless otherwise specified)
As at As at
Particulars Schedule
31-Mar-22 31-Mar-21
CAPITAL AND LIABILITIES
Capital 1 1,25,20,277 1,13,92,783
Reserves and Surplus 2 2,99,41,409 2,25,70,628
Deposits 3 18,95,07,973 16,39,19,717
Borrowings 4 2,61,64,000 4,16,53,200
Other Liabilities and Provisions 5 1,13,85,335 75,48,419
TOTAL 26,95,18,994 24,70,84,747
ASSETS
Cash and Balances With Reserve Bank of India 6 95,69,917 51,48,080
Balances With Banks and Money At Call and Short Notice 7 1,17,55,229 2,86,39,044
Investments 8 4,44,98,496 3,70,51,661
Advances 9 19,37,42,060 16,84,81,890
Fixed Assets 10 20,04,445 18,50,500
Other Assets 11 79,48,847 59,13,572
TOTAL 26,95,18,994 24,70,84,747
Contingent Liabilities 12 1,83,000 1,25,061
Summary of significant accounting policies 17
Notes forming part of financial statements 18
The accompanying notes are an integral part of the financial statements
As per our report of even date
For T R Chadha & Co LLP, For and on behalf of Board of Directors of Equitas Small Finance Bank Limited
Chartered Accountants
Firm Registration No.: 006711N/N500028
Sheshu Samudrala Arun Ramanathan Vasudevan PN Arun Kumar Verma

Partner Chairman Managing Director and Director
Membership No: 235031 DIN:00308848 Chief Executive Officer DIN:03220124
Place: Chennai Place: Chennai DIN:01550885 Place: Chennai
Date: May 04, 2022 Date: May 04, 2022 Place: Chennai Date: May 04, 2022
Date: May 04, 2022
For Varma & Varma,

Firm Registration No.: 004532S
P R Prasanna Varma N Sridharan Sampathkumar KR

Partner Chief Financial Officer Company Secretary
Membership No: 025854 M.No:A27466
Place: Chennai Place: Chennai Place: Chennai
Date: May 04, 2022 Date: May 04, 2022 Date: May 04, 2022
126
Profit and Loss account

for the year ended March 31, 2022
Year ended Year ended

Particulars Schedule
March 31, 2022 March 31, 2021
I INCOME
Interest earned 13 3,45,96,693 3,19,44,132
Other income 14 53,75,565 41,80,547
TOTAL 3,99,72,258 3,61,24,679
II EXPENDITURE
Interest expended 15 1,42,11,336 1,39,64,529
Operating expenses 16 1,70,41,453 1,32,94,286
Provisions and contingencies 59,12,151 50,23,632
TOTAL 3,71,64,940 3,22,82,447
III PROFIT
Net Profit for the year 28,07,318 38,42,232
TOTAL 28,07,318 38,42,232
IV APPROPRIATIONS
Transfer to Statutory reserves 7,01,830 9,60,558
Transfer to Special reserve account 96,843 74,244
Transfer to Capital Reserve 10,563 2,36,608
Transfer to Investment Fluctuation Reserve 12,471 19,820
Balance carried over to Balance Sheet 19,85,611 25,51,002
TOTAL 28,07,318 38,42,232
Summary of significant accounting policies 17
Notes forming part of financial statements 18
Earning per share (Basic) (in `) 18.19 2.43 3.53
Earning per share (Diluted) (in `) 18.19 2.40 3.49
Face Value per share (in `) 10 10

Date: May 04, 2022
For Varma & Varma,



Cash Flow Statement


Particulars March 31, 2022 March 31, 2021
Audited Audited
Cash Flow from Operating activities
Profit Before Tax 37,81,100 51,12,668
Adjustments for:
Depreciation on fixed assets 7,52,831 7,64,332
Depreciation on investments 5,630 -
Amortization on held to maturity securities 2,16,929 1,14,008
Provision for standard assets (Including Restructuring Standard) 12,58,599 3,70,255
General Provision under COVID-19 – Regulatory Package - (9,96,300)
Additional Provision on Standard assets 2,60,768 -
Bad debts written off 36,04,573 24,47,328
Provision for Non performing assets (1,89,012) 18,79,058
Other Provision and Contingencies 3,440 52,447
(Profit) / Loss on sale of fixed assets 3,065 (372)
Interest expenses on borrowings 31,98,045 45,96,866
Interest income on bank balances not considered as cash and cash equivalents (18,938) (4,372)
Esop Expenses -Material Risk Takers/Whole Time Director 12,679 -
Dividend income (5,040) -
1,28,84,669 1,43,35,918
Adjustments for:
(Increase)/Decrease in investments (76,69,395) (1,37,40,607)
(Increase)/Decrease in advances (2,86,75,730) (3,55,25,862)
Increase/(Decrease) in deposits 2,55,88,255 5,60,35,648
(Increase)/Decrease in other assets (14,22,094) (9,36,794)
Increase/(Decrease) in other liabilities and provisions 24,70,843 18,10,082
Direct taxes paid (15,81,922) (15,38,966)
Net cash (used in)/ generated from operating activities (A) 15,94,626 2,04,39,419
Cash flow from investing activities
Purchase of fixed assets (9,27,545) (4,99,828)
Proceeds from sale of fixed assets 17,704 13,062
(Increase)/Decrease in bank balances not considered as cash and cash equivalents - 53,576
Interest received from bank balances not considered as cash and cash equivalents 18,938 5,145
Net cash (used in) / generated from investing activities (B) (8,90,903) (4,28,045)
Cash flow from financing activities
Increase/(decrease) in borrowings (net) (1,54,89,200) (96,95,536)
Proceeds from issue of share capital (including share premium) 57,89,693 28,27,852
Share issue Expenses (1,11,415) (1,48,163)
Interest paid on borrowings (33,54,779) (45,23,252)
Net cash (used in) / generated from financing activities (C) (1,31,65,701) (1,15,39,099)
Net Increase /(decrease) in cash and cash equivalents (A)+(B)+(C) (1,24,61,978) 84,72,275
Cash and Cash equivalents at beginning of the year 3,37,87,124 2,53,14,849
Cash and Cash equivalents at end of the year 2,13,25,146 3,37,87,124
128
Cash Flow Statement


Particulars March 31, 2022 March 31, 2021
Audited Audited
Notes to cash flow statement :
Cash and Cash equivalents include the following
Cash and Balances With Reserve Bank of India 95,69,917 51,48,080
Balances With Banks And Money At Call And Short Notice 1,17,55,229 2,86,39,044
Balances not considered as part of cash and cash equivalents:
Bank deposits with an original maturity of more than three months or - -
Bank deposits under lien
Cash and Cash equivalents at end of the year 2,13,25,146 3,37,87,124

Date: May 04, 2022
For Varma & Varma,



Schedules Balance Sheet

Schedule 1 - Capital
As at As at
Mar 31, 2022 Mar 31, 2021
Authorised capital
1700,000,000 Equity Shares of ` 10 each 1,70,00,000 1,70,00,000
Issued, subscribed and paid-up capital
1252,027,655 (Previous year: 1,139,278,250) Equity Shares of ` 10 each 1,25,20,277 1,13,92,783
TOTAL 1,25,20,277 1,13,92,783
(a) During the quarter/ year ended March 31, 2022, the Bank successfully completed Qualified Institutions Placement
(QIP) of its shares comprising issue of 10,26,31,087 equity shares of ` 10/ each at premium of ` 43.59 per share,
thereby raising ` 550 crore. The allotment was completed on February 19, 2022 and these equity shares of the
Bank got listed on February 23, 2022 on National Stock Exchange (NSE) and BSE Ltd. As a result of this QIP, the
public shareholding in the Bank increased from 18.70% to 25.37%, thereby complying with the Minimum Public
Shareholding (MPS) requirements prescribed by SEBI Regulations.
(b) The Bank, during the year ended March 31,2022 has allotted 1,01,18,318 equity shares of ` 10/- each, fully paid
up, on exercise of options by its employees and employees of the Holding company (Equitas Holdings Limited) in
accordance with the ESFB ESOP Scheme.
The entire amount net of Issue Expenses has been utilised for augmentation of Bank’s Tier I Capital funds. There
is no amount unspent.
Schedule 2 - Reserves and Surplus

As at As at
Mar 31, 2022 Mar 31, 2021
I Statutory reserve
Opening Balance 33,37,225 23,76,667
Additions during the year 7,01,830 9,60,558
Deductions during the year - -
Total - (A) 40,39,055 33,37,225
II Capital reserve
Additions during the year 10,563 2,36,608
Total - (B) 3,79,969 3,69,406
III Share premium account
Received during the year * 46,62,199 19,69,086
Deductions during the year ** (1,11,415) (1,48,163)
Total - (C) 1,38,41,691 92,90,907
IV Special reserve account u/s 36(1)(viii) of Income Tax Act, 1961
Additions during the year 96,843 74,244
Total - (D) 2,78,397 1,81,554
V Revenue and Other reserves
Additions during the year - -
Total - (E) 2,54,400 2,54,400
130

As at As at
Mar 31, 2022 Mar 31, 2021
VI Investment Reserve
Opening Balance 23,000 23,000
Additions during the year - -
Total - (F) 23,000 23,000
VII Investment Fluctuation Reserve
Total - (G) 1,44,221 1,31,750
VII Share Based Reserve
Opening Balance - -
Additions during the year 12,679 -
Total - (H) 12,679 -
VIII Balance in Profit and Loss Account (I) 1,09,67,997 89,82,386
TOTAL (A)+(B)+(C)+(D)+(E)+(F)+(G)+(H)+(I) 2,99,41,409 2,25,70,628
* Securities Premium received on issue of equity shares.

** Towards share issue expenses
Schedule 3 - Deposits
As at As at
Mar 31, 2022 Mar 31, 2021
A I Demand deposits
(i) From banks 3,38,698 5,21,057
(ii) From others 73,82,822 46,79,619
II Savings bank deposits 9,08,32,220 5,09,37,568
III Term deposits
(i) From banks 1,89,80,772 4,31,96,331
(ii) From others 7,19,73,461 6,45,85,142
TOTAL 18,95,07,973 16,39,19,717
B I Deposits of branches in India 18,95,07,973 16,39,19,717
II Deposits of branches outside India - -
TOTAL 18,95,07,973 16,39,19,717
Schedule 4 - Borrowings
As at As at
Mar 31, 2022 Mar 31, 2021
I Borrowings in India
(i) Reserve Bank of India - 1,10,000
(ii) Other banks 3,00,000 7,00,000
(iii) Other institutions and agencies 2,58,64,000 4,08,43,200
TOTAL 2,61,64,000 4,16,53,200
II Borrowings outside India - -
TOTAL - -
TOTAL 2,61,64,000 4,16,53,200
Secured borrowings included in above - 62,500


Schedule 5 - Other Liabilities ad Provisions

As at As at
Mar 31, 2022 Mar 31, 2021
I Bills payable 16,76,186 13,10,777
II Interest accrued 9,15,471 13,83,492
III Income Tax Payable (Net of tax paid in Advance) 59,226 63,492
IV Others (including provisions)* 87,34,452 47,90,658
TOTAL 1,13,85,335 75,48,419
*Includes :-
a. Provision for standard assets ` 58.07 Crore (Previous year ` 55.91 Crore)
b. Provisions for Restructured standard assets ` 150.91 Crore ( Previous year ` 27.21 Crore)
c. Additional provisions on standard assets on higher rate ` 26.08 Crore ( Previous year : NA)
Schedule 6 - Cash and Balances with Reserve Bank of India

As at As at
Mar 31, 2022 Mar 31, 2021
I Cash in hand 16,11,070 9,74,205
II Balances with Reserve Bank of India :
(a) In current accounts 79,58,847 41,73,875
(b) In other accounts - -
TOTAL 95,69,917 51,48,080
Schedule 7 - Balances with Banks and Money at Call and Short Notice
As at As at
Mar 31, 2022 Mar 31, 2021
I In India
(i) Balances with banks :
(a) In current accounts 5,55,229 7,89,044
(b) In other deposit accounts - -
(ii) Money at call and short notice :
(a) With banks 1,12,00,000 2,78,50,000
(b) With other institutions - -
TOTAL 1,17,55,229 2,86,39,044
II Outside India
(i) In current accounts - -
(ii) In deposit accounts - -
(iii) Money at call and short notice - -
TOTAL - -
TOTAL 1,17,55,229 2,86,39,044
132

Schedule 8 - Investments
As at As at
Mar 31, 2022 Mar 31, 2021
I Investments in India in (Net of provision)
(i) Government securities 4,41,59,971 3,63,07,153
(ii) Other Approved securities - -
(iii) Shares 3,38,525 2,000
(iv) Debentures and Bonds - -
(v) Subsidiaries and / or Joint Ventures - -
(vi) Others - 7,42,508
4,44,98,496 3,70,51,661
Gross Investments 4,45,04,126 3,70,51,661
Less: Depreciation (5,630) -
Net Investments 4,44,98,496 3,70,51,661
II Investments outside India - -
TOTAL 4,44,98,496 3,70,51,661
Schedule 9 - Advances (Net of Provision)

As at As at
Mar 31, 2022 Mar 31, 2021
A (i) Bills purchased and discounted 19,99,742 10,87,819
(ii) Cash credits, overdrafts and loans repayable on demand 90,41,122 84,69,011
(iii) Term loans 18,27,01,196 15,89,25,060
TOTAL 19,37,42,060 16,84,81,890
B (i) Secured by tangible assets * 15,65,08,982 13,54,79,336
(ii) Covered by bank / government guarantees - -
(iii) Unsecured 3,72,33,078 3,30,02,554
TOTAL 19,37,42,060 16,84,81,890
(* includes advances against Book Debt: ` 69,05,624 , (previous year ` 78,83,904))
C I Advances in India
(i) Priority sector # 13,32,37,130 9,97,42,193
(ii) Public sector - -
(iii) Banks 1,461 93,192
(iv) Others 6,05,03,469 6,86,46,505
Total Advances in India 19,37,42,060 16,84,81,890
II Advances outside India
(i) Due from banks - -
(ii) Due from others - -
(a) Bills purchased and discounted - -
(b)
Syndicated loans - -
(c)
Others - -
Total Advances Outside India - -
TOTAL 19,37,42,060 16,84,81,890
# Priority sector includes ` 2,450 Crore (previous year : ` 4,800 Crore), in respect of which the Bank has sold Priority Sector Lending Certificates
(PSLC).


Schedule 10 - Fixed Assets

As at As at
Mar 31, 2022 Mar 31, 2021
A Premises
Cost
As at beginning of the year 12,55,640 11,99,039
Deductions during the year (9,937) (1,936)
12,87,030 12,55,640
Depreciation
Depreciation to date 7,73,681 6,40,368
Net block 5,13,349 6,15,272
B Other fixed assets (including furniture and fixtures)
Cost
53,72,770 46,66,171
Depreciation
Depreciation to date 39,93,446 34,39,772
Net block 13,79,324 12,26,399
C Capital work-in-progress 1,11,772 8,829
TOTAL 20,04,445 18,50,500
Schedule 11 - Other Assets

As at As at
Mar 31, 2022 Mar 31, 2021
I Interest accrued 24,90,547 22,73,309
II Tax paid in advance (Net of provision for tax) - -
III Stamps 346 828
IV Deferred tax asset 21,36,059 15,32,185
V Others 33,21,895 21,07,250
TOTAL 79,48,847 59,13,572
Schedule 12 - Contingent Liabilities

As at As at
Mar 31, 2022 Mar 31, 2021
I Claims against the bank not acknowledged as debts
(a) Service tax and Goods and Sevice Tax 34,395 12,545
(b) Others 28,314 20,152
II Guarantees given on behalf of constituents
(a) In India 1,20,291 92,364
(b) Outsdie India - -
Total 1,83,000 1,25,061
134
Schedules to Profit and Loss Account

Schedule 13 - Interest Earned

March 31, 2022 March 31, 2021
I Interest /discount on advances /bills 3,13,91,224 2,90,08,290
II Income from investments 24,61,447 21,93,847
III Interest on balance with RBI and other inter-bank funds 7,44,022 7,41,995
IV Others - -
Total 3,45,96,693 3,19,44,132
Schedule 14 - Other Income

March 31, 2022 March 31, 2021
I Commission, exchange and brokerage 3,81,107 2,64,907
II Profit / (loss) on sale of investments (net) 4,26,357 4,47,043
III Profit / (loss) on sale of building and other assets (net) (3,065) 372
IV Miscellaneous income* 45,71,166 34,68,225
Total 53,75,565 41,80,547
*Includes ` 7.80 Crore (Previous year ` 61.99 Crore) of income from sale of PSL Certificates, ` 45.95 Crore ATM interchange income (Previous
year ` 8.28 Crore) and ` 111.89 Crore Prepaid cards -Interchange income (Previous year ` 54.51 Crore).
Schedule 15 - Interest Expended

March 31, 2022 March 31, 2021
I Interest on deposits 1,13,53,337 96,96,676
II Interest on RBI / inter-bank borrowings 1,92,668 1,34,630
III Other interest 26,65,331 41,33,223
Total 1,42,11,336 1,39,64,529
Schedule 16 - Operating Expenses

March 31, 2022 March 31, 2021
I Payments to and provisions for employees 89,82,084 79,14,496
II Rent, taxes and lighting 13,21,036 10,42,610
III Printing and stationery 1,07,648 77,468
IV Advertisement and publicity 3,23,383 1,24,440
V Depreciation on bank's property 7,52,831 7,64,332
VI Directors' fees, allowances and expenses 31,684 26,371
VII Auditors' fees and expenses 10,169 7,270
VIII Legal and Professional Fees 3,00,830 2,14,679
IX Postage, telegram, telephone etc. 2,74,198 1,94,303
X Repairs and maintenance 2,45,496 2,19,138
XI Insurance 1,83,747 1,17,105
XII Commission and Brokerage 2,36,041 1,59,433
XIII Information Technology Expenses 9,06,544 5,48,547
XIV Travel & Conveyance 5,01,456 3,53,262
XV Bank and Other finance charges 10,84,008 5,26,757
XVI Cash handling charges 1,97,746 1,18,104
XVII CSR contributions 1,92,100 1,57,300
XVIII Other expenditure * 13,90,452 7,28,671
Total 1,70,41,453 1,32,94,286
*Includes ` 39.89 Crore Micro ATM switching fee expenses (Previous year ` 27.30 Crore).

Schedule 17 – Significant accounting policies forming part

of the financial statements
Corporate information approved a Scheme of Amalgamation between EHL,
ESFBL and their respective shareholders, contemplating
1(a). Background
amalgamation of EHL with ESFBL under applicable

Equitas Small Finance Bank Limited (CIN: provisions of the Companies Act 2013. The Scheme
U65191TN1993PLC025280) (“ESFBL” or the “Bank”, or was designed to achieve the RBI licensing requirement
the “Company”) was incorporated in 1993 as V.A.P of dilution of promoter shareholding in the Bank and
Finance Private Limited later renamed as Equitas minimum public shareholding (MPS) requirements
Finance Private Limited in August 2011. In 2011, prescribed by SEBI Regulations, in a manner that is
Equitas Holdings Limited acquired the Company. The in the best interests of and without being prejudicial
Company’s name was subsequently changed to Equitas to EHL, ESFBL, their respective shareholders or any
Finance Limited in September 2015 consequent to it other stakeholders.
becoming a Public Limited Company. Pursuant to a
scheme of amalgamation approved by the Hon’ble Subsequently, ESFBL achieved the MPS through a
High Court of Judicature at Madras (the “Scheme”), Qualified Institutions Placement (QIP) of its shares,
and upon fulfilment of all conditions specified under in February 2022, after obtaining the necessary
the said Scheme, Equitas Micro Finance Limited and approvals. QIP comprised of issue of 10,26,31,087
Equitas Housing Finance Limited amalgamated with equity shares of ` 10/ each at premium of ` 43.59 per
the Company, and the Company was renamed Equitas share, aggregating to a fund raise of ` 550 crore. As
Small Finance Bank Limited (“ESFBL”). Consequent a result of this QIP, the public shareholding in the
to the above amalgamation the microfinance and Bank increased from 18.70% to 25.37%, thereby
housing finance businesses of the erstwhile EMFL complying with the Minimum Public Shareholding
and EHFL were transferred to the Company effective (MPS) requirements prescribed by SEBI Regulations.
September 2, 2016. ESFBL commenced its banking
operations after the receipt of final banking license Consequently, the aforesaid Scheme was revised to
from the Reserve Bank of India on September 5, include the change in capital structure arising from
2016. During year ended March 31, 2021, the Bank QIP as well as the necessary change in objects of the
successfully completed Initial Public Offer (IPO) of its Scheme. The Scheme, so revised was approved by the
shares pursuant to which, the equity shares of the Boards of EHL and ESFBL in their respective Meetings
Bank got listed on National stock exchange (NSE) and held on March 21, 2022. The Scheme has been filed
BSE Ltd. with the Stock Exchanges and RBI for necessary
approvals/ sanctions.
The Bank is engaged in retail banking business with
focus on micro-finance, commercial vehicle finance, Upon coming into effect of this Scheme and in
home finance, loan against-property finance, consideration of the amalgamation of EHL with ESFBL,
corporate finance, and providing financing solutions ESFBL, without any further application, act or deed,
for individuals and micro and small enterprises (MSEs) shall issue and allot to each of the equity shareholders
that are underserved by formal financing channels of EHL as on the Record Date defined in the Scheme,
while providing a comprehensive banking and digital 231 equity Shares of ` 10/- each credited as fully paid
platform for all. up of ESFBL, in respect of every 100 Equity Shares of
` 10/- each fully paid up held by them in EHL.
2. Basis of Preparation
The Financial Statements have been prepared and 2.2. T he COVID-19 pandemic (declared as such by the
presented under the historical cost convention and World Health Organisation on March 11,2020), has
on accrual basis of accounting in accordance with contributed to a significant decline and volatility,
provisions of accounting standards as specified under and a significant decrease in economic activity, in
section 133 of the Companies Act 2013, read with global and Indian markets. The Indian government
Rule 7 of the Companies (Accounts) Rules, 2014 in so had announced a strict nation-wide lockdown in
far as they apply to the Bank, and other accounting India in march 2020 to contain the spread of the virus.
principles generally accepted in India (“Indian Subsequently, while the national lockdown was lifted,
GAAP”) as applicable to banking companies and the regional post COVID-19 disruptions continued in many
applicable requirements of the Banking Regulation parts of the country as the world including India
Act, 1949 and circulars, guidelines and directions experienced multiple waves of outbreak on account
issued by Reserve Bank of India from time to time. of new coronavirus variants during the year ended
The accounting policies adopted in the preparation March 31, 2022.
of the financial statements are consistent with those
followed in the previous financial year. The impact of Covid 19 coupled with change in
customer behaviour and pandemic scare has led to
2.1. The Board of Directors of Equitas Small Finance Bank significant disruptions and dislocations for individuals
Limited (ESFBL) and Equitas Holdings Limited (EHL) and businesses, with consequential impact on regular
at their respective Meetings held on July 26, 2021 banking operations including lending, deposit-
136

mobilisation, and collection activities and consequent Basis of classification:
increase in provisioning and credit cost. The country Investments that are held principally for sale within
is emerging out of the pandemic and restrictions 90 days from the date of purchase are classified
have been substantially lifted. However, outbreak of under HFT category. Investments which the Bank
further variants of COVID-19 could not be ruled out. intends to hold till maturity are classified as HTM
The extent to which any such new wave of COVID-19 securities. Investments in the equity of subsidiaries /
pandemic would affect the Bank’s operations, and joint ventures are categorised as HTM in accordance
financial metrics (including impact on provisioning with the RBI guidelines. Investments which are not
on advances) will depend on future developments, classified in the above categories are classified under
including new information on severity of the new AFS category.
and evolving virus variants, action taken to spread or
mitigate its impact, whether mandated or voluntary, Acquisition cost:
resilience of customers to bounce back and their
The cost of investment is determined on weighted
behaviour patterns.
average cost basis. Broken period interest on debt
instruments is treated as a revenue item. The
3. Significant accounting policies
transaction cost, including brokerage, commission
3.1. Use of Estimates etc., paid at the time of acquisition of investments
The preparation of the financial statements are charged to revenue in accordance with the
in conformity with Indian GAAP requires the requirements of valuation norms prescribed by RBI.
Management to make estimates and assumptions
considered in the reported amounts of assets and Transfer between categories
liabilities (including contingent liabilities) and the Transfer between categories is done at the lower of
reported income and expenses for the reporting the acquisition cost/book value/market value on the
period. The Management believes that the estimates date of the transfer and depreciation, if any, on such
used in preparation of the financial statements are transfer is fully provided for, in accordance with the
prudent and reasonable. Actual results could differ RBI guidelines.
due to these estimates. Any revision in the accounting
estimates is recognised prospectively. Valuation:
Investments classified under AFS and HFT categories
3.2. Investments
are ‘marked to market’ as per the RBI guidelines.
Classification: The securities are valued scrip wise and depreciation
In accordance with the RBI guidelines on investment / appreciation is aggregated for each category. Net
classification and valuation, investments are classified appreciation in each category, if any, is ignored, while
on the date of purchase into three categories net depreciation is provided for. The book value of
(hereinafter called “categories”) as below: the individual securities is not changed consequent
to periodic valuation of investments.
i) Held to Maturity (“HTM”) – Securities acquired
with the intention to hold till maturity Investments classified under HTM category are carried
at their acquisition cost or at amortised cost, if acquired
ii) Held for Trading (“HFT”) – Securities acquired at a premium over face value. Any premium on
with the intention to trade acquisition is amortised over the remaining maturity
period of the security on a straight-line basis. Such
iii) Available for Sale (“AFS”) – Securities which do amortisation of premium is adjusted against interest
not fall within the above two categories income under the head “Income from investments”
as per the RBI guidelines. Any diminution, other than
Subsequent shifting amongst the categories is done temporary, in the value of investments in subsidiaries
in accordance with the RBI guidelines. Under each of / joint ventures, if any, is provided for.
these categories, investments are further classified
under six groups (hereinafter called “groups”) – Quoted Investments are valued based on the trades
Government Securities, Other Approved Securities, / quotes on the recognised stock exchanges, price
Shares, Debentures and Bonds, Investments in list of RBI or prices periodically declared by Financial
Subsidiaries / Joint Ventures and Other Investments. Benchmark India Pvt. Ltd. [FBIL], based on relevant
Purchase and sale transactions in securities are RBI circular.
recorded under ‘Settlement Date’ accounting, except
in the case of equity shares where ‘Trade Date’ The market value of unquoted government securities
accounting is followed. which are in the nature of Statutory Liquidity
Ratio (‘SLR’) securities included in the AFS and HFT
categories is valued as per rates published by FBIL.


The valuation of other unquoted fixed income Disposal of investments:
securities (viz., state government securities, other Profit / Loss on sale of investments under AFS and
approved securities, bonds and debentures) and HFT categories are recognised in the Profit and
preference shares, wherever linked to the YTM rates, Loss Account.
is done with a mark-up (reflecting associated credit
and liquidity risk) over the YTM rates for government Profit in respect of investments sold from HTM
securities published by FBIL. category is included in the Profit on Sale of Investments
and an equivalent amount (net of taxes, if any, and
In case of unquoted bonds, debentures and preference net of transfer to Statutory Reserves as applicable to
shares where interest/dividend is received regularly such profits) is appropriated from the Profit and Loss
(i.e., not overdue beyond 90 days), the market price Appropriation account to Capital Reserve account as
is derived based on the Yield to Maturity (YTM) per RBI guidelines.
for Government Securities as published by FBIL and
suitably marked up for credit risk applicable to the In the event, provisions created on account of
credit rating of the instrument. The matrix for credit depreciation in the AFS or HFT categories are found
risk mark-up for each categories and credit ratings to be in excess of the required amount in any year, the
along with residual maturity issued by FBIL is adopted excess is credited to the Profit and Loss account and
for this purpose. an equivalent amount (net of taxes, if any, and net
of transfer to Statutory Reserves as applicable to such
Unquoted equity shares are valued at the break-up excess provisions) is appropriated to an Investment
value if the latest balance sheet is available, or at `.1, Reserve Account (IRA).
as per the RBI guidelines.
With a view to building up of adequate reserves
Units of mutual funds are valued at the latest to protect against increase in yields in future, in
repurchase price / net asset value declared by the accordance with extant RBI circular, an amount not
mutual fund. less than the net profit on sale of investments during
the year or net profit for the year less mandatory
Treasury bills, commercial papers and certificate of appropriations is created as Investment Fluctuation
deposits being discounted instruments, are valued at Reserve (IFR) until the bank achieve a reserve balance
carrying cost. of 2% of the HFT and AFS portfolio.
Security receipts, if any, are valued as per the net asset 3.3. Advances
value provided by the issuing Asset Reconstruction
Classification:
Company from time to time.
Advances are classified as Performing Assets (Standard)
Net depreciation in the value, if any, compared to the and Non-performing Assets (NPAs) in accordance with
acquisition cost, in any of the aforesaid six groups, the RBI guidelines on Income Recognition and Asset
is charged to the Profit and Loss Account. The net Classification (IRAC). Further, NPAs are classified into
appreciation, if any, in the six groups is not recognised sub-standard, doubtful and loss assets based on the
except to the extent of depreciation already provided. criteria stipulated by RBI.
The book value of individual securities is not changed
after the valuation of investments. The Advances are stated net of specific provisions
made towards NPAs, unrealised interest on NPAs, bills
Non-performing investments are identified and rediscounted, if any etc. Interest on NPAs is transferred
depreciation / provision is made thereon based on to an interest suspense account and not recognised in
the RBI guidelines. Interest on non-performing the Profit and Loss Account until received.
investments is not recognised in the Profit and Loss
Account until received. The bank transfers advances through inter-bank
participation with and without risk, which are
In accordance with RBI Circular, Repurchase (Repo) accounted for in accordance with the RBI guidelines,
and Reverse Repurchase (Reverse Repo) transactions as follows. In the case of participation with risk,
(including transactions under Liquid Adjustment the aggregate amount of participation transferred
Facility [LAF] and Marginal Standing Facility [MSF]) out of the Bank is reduced from advances; and
with RBI are accounted for as borrowings and lending, participations transferred in to the Bank are classified
as the case may be. Accordingly, amounts outstanding under advances. In the case of participation without
in Repo and Reverse Repo account as at the Balance risk, the aggregate amount of participation issued
Sheet date is shown as part of Borrowings and Money by the Bank is classified under borrowings; and
at Call and at Short Notice respectively and the where the bank is participating in, the aggregate
accrued expenditure and income till the Balance Sheet amount of participation is shown as due from banks
date is recognised in the Profit and Loss account. under advances.
138

Provisioning: account during the period, in accordance with the
In accordance with RBI guidelines, the Bank has extant RBI guidelines in this regard.
provided general provision on standard assets at
levels stipulated by RBI from time to time - direct
Non-performing advances are written-off in
advances to sectors agricultural, and Small and Micro accordance with the Bank’s policies. Recoveries from
Enterprises(SMEs) at 0.25%, commercial real estate at bad debts written-off are recognised in the Profit and
1.00%, restructured standard advances progressively Loss Account and included under ‘Other Income’.
to reach 5.00%, commercial real estate-residential
housing at 0.75% and for other sectors at 0.40%. In Recording and Presentation
addition, the Bank has a policy for making provisions Provisions created against individual accounts as
for standard assets at rates higher than the regulatory per RBI guidelines are not netted in the individual
minimum, based on evaluation of risk and stress in account. For presentation in the financial statements,
various sectors provision created is netted against gross amount of
advance. Provision held against an individual account
Provision for non-performing advances comprising is adjusted against account balance at individual
Sub-standard, Doubtful and Loss Assets is made at level only at the time of write-off / settlement of
a minimum in accordance with the RBI guidelines. In the account.
addition, specific loan loss provisions in respect of non-
performing assets are made based on management’s Provision made against standard assets in accordance
assessment and estimates of the degree of impairment with RBI guidelines as above is disclosed separately
of advances, based on past experience, evaluation under Other Liabilities and not netted off
of security and other related factors; the nature of against Advances.
product and delinquency levels. Loan loss provisions
in respect of non-performing advances are charged 3.4. Securitisation transactions and direct assignments
to the Profit and Loss Account and included under and transfer of assets
Provisions and Contingencies. Advances are disclosed, The Bank transfers its loan receivables both through
net of provisions in the Balance Sheet (Also refer Note Direct Assignment route as well as transfers to Special
18.4). Purpose Vehicles (SPV).
Provisions made in excess of the Bank’s policy for The securitization transactions are without recourse to
specific loan loss provisions for non-performing assets the Bank. The transferred loans and such securitized
and regulatory general provisions are categorised as receivables are de-recognized as and when these
Floating Provision. Creation of Floating Provision is are sold (true sale criteria being fully met) and the
considered by the Bank up to a level approved by consideration has been received by the Bank. Gains /
the Board of Directors. In accordance with the RBI losses are recognized only if the Bank surrenders the
guidelines, Floating Provisions are utilised up to a rights to the benefits specified in the loan contracts.
level approved by the Board with prior permission
of RBI, only for contingencies under extraordinary In terms of RBI guidelines, profit / premium arising
circumstances for making specific provisions for on account of sale of standard assets, being the
impaired accounts. difference between the sale consideration and book
value, is amortized over the life of the securities issued
The Bank considers restructured account, if any, as by the Special Purpose Vehicles (SPV). Any loss arising
one where the Bank, for economic or legal reasons on account of the sale is recognized in the Profit and
relating to the borrower’s financial difficulty, grants Loss Account in the period in which the sale occurs.
to the borrower concessions that the Bank would not
otherwise consider. Restructuring would normally 3.5. Fixed Assets (Property, Plant and Equipment (PPE)
involve modification of terms of the advance / and depreciation)
securities, which would generally include, amongst
Property, Plant and Equipment, capital work in
others, alteration of repayment period / repayable
progress are stated at cost, net of accumulated
amount / the amount of instalments / rate of interest
depreciation and accumulated impairment losses, if
(due to reasons other than competitive reasons).
any. The cost comprises purchase price, borrowing
Restructured accounts are classified as such by the
costs if capitalization criteria are met, directly
Bank only upon approval and implementation of the
attributable cost of bringing the asset to its working
restructuring package. In respect of loans and advances
condition for the intended use and initial estimate
accounts subjected to restructuring, the account is
of decommissioning, restoring and similar liabilities,
upgraded to standard only after the specified period
if any.
i.e. a period of one year after the date when first
payment of interest or of principal, whichever is later,
Any trade discounts and rebates are deducted in
falls due, subject to satisfactory performance of the
arriving at the purchase price. Such cost includes the


cost of replacing part of the plant and equipment. amount of the asset and are recognized in the Profit
When significant parts of the plant and equipment and Loss Account when the asset is derecognized.
are required to be replaced at intervals, the Bank
depreciates them separately based on its specific PPE held for sale is valued at lower of their carrying
useful lives. Assets under development as at balance amount and net realizable value. Any write-down is
sheet date are shown as Capital Work in Progress. recognized in the Profit and Loss Account.
Advance paid towards such development are shown
as capital advance. 3.6. Intangible Assets and amortisation
Intangible assets acquired separately are measured on
Depreciation on PPE has been provided on the initial recognition at cost. Following initial recognition,
straight-line method as per the useful life prescribed intangible assets are carried at cost less accumulated
in Schedule II to the Companies Act, 2013 except in amortization and accumulated impairment losses,
respect of the following categories of assets, in whose if any.
case the life of the assets has been assessed as per the
table below, based on technical advice, taking into Intangible assets are amortized on a straight line basis
account the nature of the asset, the estimated usage over the estimated useful economic life. The Bank uses
of the asset, the operating conditions of the asset, a rebuttable presumption that the useful life of an
past history of replacement, anticipated technological intangible asset will not exceed ten years from the
changes, manufacturers warranties and maintenance date when the asset is available for use. Software
support etc. with perpetual license and system development
expenditure, if any, is amortised over an estimated
Estimated
Estimated useful life economic useful life of 5 years or license period,
Asset
useful life as specified under whichever is lower.
assessed by the Schedule II of
Bank the Companies
Act 2013 The amortization period and the amortization method
are reviewed at least at the Balance Sheet date. If the
Office Equipment 3 Years 5 Years
expected useful life of the asset significantly differs
Furniture and Fixtures 3 Years 10 years from previous estimates, the amortization period is
Vehicles 4 Years 8 Years changed accordingly. If there has been a significant
Automated Teller 7 Years 15 Years change in the expected pattern of economic benefits
Machines (ATMs) from the asset, the amortization method is changed
Modems, Routers, 5 Years 6 Years to reflect the changed pattern. Such changes are
switches, servers, accounted for in accordance with AS 5 Net Profit or
network and related IT Loss for the Period, Prior Period Items and Changes in
equipment Accounting Policies.
• Leasehold improvements are depreciated over the Gains or losses arising from de-recognition of an
primary lease period or over the remaining useful intangible asset are measured as the difference
life of the asset, whichever is lower. between the net disposal proceeds and the carrying
amount of the asset and are recognized in the Profit
• ‘Point of Sale’ terminals are fully depreciated in the
and Loss Account when the asset is derecognized.
year of purchase.
3.7. Impairment of Assets
The useful life of an asset class is periodically assessed
taking into account various criteria such as changes in The carrying values of assets / cash generating units at
technology, changes in business environment, utility the Balance Sheet date are reviewed for impairment,
and efficacy of an asset class to meet with intended if any indication of impairment exists. If the carrying
user needs etc. Whenever there is a revision in the amount of the assets exceed the estimated recoverable
estimated useful life of an asset, the unamortised amount, an impairment is recognised for such excess
depreciable amount is charged over the revised amount. The impairment loss is recognised as an
remaining useful life of the said asset. The residual expense in the Profit and Loss Account.
values, useful lives and methods of depreciation
of property, plant and equipment are reviewed at The recoverable amount is the greater of the net
the Balance Sheet date and adjusted prospectively, selling price and their value in use. Value in use is
if appropriate. arrived at by discounting the future cash flows to their
present value based on an appropriate discount factor.
Gains or losses arising from de-recognition of property,
plant and equipment are measured as the difference When there is indication that an impairment loss
between the net disposal proceeds and the carrying recognised for an asset in earlier accounting periods
no longer exists or may have decreased, such reversal
140

of impairment loss is recognised in the Profit and Loss the same is recognised in the Profit and Loss
Account, to the extent the amount was previously Account immediately.
charged to the Profit and Loss Account.
Amounts recovered against debts written off in earlier
3.8. Transactions involving foreign exchange years and provisions no longer considered necessary
Initial recognition in the context of the current status of the borrower
are recognized in the Profit and Loss Account.
Transactions in foreign currencies entered into by the
Bank are accounted at the exchange rates prevailing
3.10. Employee Benefits
on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction. Employee benefits include provident fund, gratuity
and compensated absences.
Measurement at the Balance Sheet date
Defined contribution plan:
Foreign currency monetary items, if any, of the Bank,
outstanding at the balance sheet date are restated The Bank’s contribution to provident fund are
at the rates prevailing at the year-end as notified considered as defined contribution plan and are
by Foreign Exchange Dealers Association of India charged as an expense as they fall due based on the
(‘FEDAI’). Non-monetary items of the Bank are carried amount of contribution required to be made when
at historical cost. the services are rendered by the employees.
Contingent liabilities on account of foreign exchange Defined Benefits Plan

contracts, currency future contracts, guarantees, For defined benefit plans in the form of gratuity
letters of credit, acceptances and endorsements are fund, the cost of providing benefits is determined
reported at closing rates of exchange notified by using the Projected Unit Credit method, with actuarial
FEDAI as at the Balance Sheet date. valuations being carried out at each Balance Sheet
date. Actuarial gains and losses are recognised in the
Treatment of Exchange differences Profit and Loss Account in the period in which they
Exchange differences arising on settlement / occur. Past service cost is recognised immediately to
restatement of foreign currency monetary assets the extent that the benefits are already vested while
and liabilities of the Bank are recognised as income otherwise, it is amortised on a straight-line basis
or expense in the Profit and Loss Account. over the average period until the benefits become
vested. The retirement benefit obligation recognised
3.9. Revenue Recognition in the Balance Sheet represents the present value
of the defined benefit obligation as adjusted for
Interest Income on loans, advances and investments
unrecognised past service cost, as reduced by the
(including deposits with banks and other institutions)
fair value of scheme assets. Any asset resulting from
are recognised on accrual basis. Income on Non-
this calculation is limited to past service cost, plus the
performing Assets is recognized upon realisation as
present value of available refunds and reductions in
per RBI norms.
future contributions to the schemes.
Fee and Commission income are recognised as income
Short term Employee benefits
when due, except in cases where the Bank is uncertain
of its ultimate collection. The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
Bank Guarantee commission and commission on services rendered by employees are recognised during
letter of credit, and locker rent are recognised on a the year when the employees render the service.
straight- line basis over the period of contract. Interest These benefits include performance incentive and
Income on deposits / investments is recognized on a compensated absences which are expected to occur
time proportion basis taking into account the amount within twelve months after the end of the period
outstanding and the rate applicable. Income on in which the employee renders the related service.
discounted instruments is recognised over the tenor The cost of such compensated absences is accounted
of the instruments on a straight line basis. as under:
Dividend income, if any, is accounted for, when the (a) in case of accumulated compensated absences,
right to receive the same is established. when employees render the services that
increase their entitlement of future compensated
In accordance with the RBI guidelines on Securitisation absences; and
Transactions, gains arising from assignment /
securitisation are amortised over the life of the (b)
in case of non-accumulating compensated
underlying portfolio loans. In case of any loss, absences, when the absences occur.


Long term Employee benefits Deferred tax is recognised on timing differences, being
The Bank accrues the liability for compensated the differences between the taxable income and the
absences based on the actuarial valuation as at the accounting income that originate in one period and
Balance Sheet date conducted by an independent are capable of reversal in one or more subsequent
actuar y which includes assumptions about periods. Deferred tax is measured using the tax rates
demographics, early retirement, salary increases, and the tax laws enacted or substantively enacted
interest rates and leave utilisation. The net present as at the reporting date. Deferred tax liabilities
value of the Banks’ obligation is determined using the are recognised for all timing differences. Deferred
Projected Unit Credit Method as at the Balance Sheet tax assets are recognised for timing differences of
date. Actuarial gains / losses are recognised in the items other than unabsorbed depreciation and carry
Profit and Loss Account in the year in which they arise. forward losses only to the extent that reasonable
certainty exists that sufficient future taxable income
Employee Stock Compensation Cost will be available against which these can be realised.
However, if there are unabsorbed depreciation and
Employee stock compensation cost for stock
carry forward of losses and items relating to capital
options is recognised as per the Guidance Note on
losses, deferred tax assets are recognised only if there
Accounting for Employee Share-based Payments,
is virtual certainty supported by convincing evidence
issued by the Institute of Chartered Accountants of
that there will be sufficient future taxable income
India and Guidelines issued by the Reserve Bank of
available to realise the assets. Deferred tax assets and
India on Compensation of Whole Time Directors /
liabilities are offset if such items relate to taxes on
Chief Executive Officers / Material Risk Takers and
income levied by the same governing tax laws and
Control Function Staff (WTD/CEO/MRTS). The Bank
the Bank has a legally enforceable right for such set
measures compensation cost relating to the employee
off. Deferred tax assets are reviewed at each balance
stock options using the intrinsic value method. The
sheet date for their realizability (Also refer Note
compensation cost, if any, is amortised uniformly
18.20).
over the vesting period of the options. However, in
respect of WTD/CEO/MRTS, as required under RBI
At each reporting date, the Bank re-assesses
Guidelines, the Bank has recognised expenses related
unrecognized deferred tax assets. It recognizes
to instruments granted to them on the basis of fair
unrecognized deferred tax asset to the extent that
value of stock options using Black-Scholes model, as
it has become reasonably certain or virtually certain,
compensation expense over the vesting period.
as the case may be, that sufficient future taxable
income will be available against which such deferred
3.11. Leases
tax assets can be realized.
Lease arrangements where the risks and rewards
incidental to ownership of an asset substantially vest 3.14. Earnings per Share
with the lessor are recognised as operating leases.
Basic earnings per share is computed by dividing
Lease rentals under operating leases are recognised
the profit after tax (including the post-tax effect of
in the Profit and Loss Account on a straight-line basis
extraordinary items, if any) by the weighted average
over the lease term.
number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing
3.12. Accounting of Priority Sector Lending Certificate (PSLC)
the profit after tax (including the post-tax effect of
The Bank enters into transactions for the sale or extraordinary items, if any) as adjusted for dividend,
purchase of Priority Sector Lending Certificates interest and other charges to expense or income
(PSLCs). In the case of a sale transaction, the Bank relating to the dilutive potential equity shares, by the
sells the fulfilment of priority sector obligation and weighted average number of equity shares considered
in the case of a purchase transaction the Bank buys for deriving basic earnings per share and the weighted
the fulfilment of priority sector obligation through average number of equity shares which could have
the RBI trading platform. There is no transfer of risks been issued on the conversion of all dilutive potential
or loan assets. The fee received for the sale of PSLCs equity shares.
is recorded as Other Income and the fee paid for
purchase of the PSLCs is recorded as other Expenditure Potential equity shares are deemed to be dilutive
in Profit and Loss Account. These are amortised over only if their conversion to equity shares would
the period of the Certificate. decrease the net profit per share from continuing
ordinary operations. Potential dilutive equity shares
3.13. Taxes on Income are deemed to be converted as at the beginning
Current tax is the amount of tax payable on the taxable of the period, unless they have been issued at a
income for the year as determined in accordance with later date. The dilutive potential equity shares are
the applicable tax rates and the provisions of the adjusted for the proceeds receivable had the shares
Income Tax Act, 1961 and other applicable Income been actually issued at fair value (i.e. average market
tax laws. value of the outstanding shares). Dilutive potential
142

equity shares are determined independently for each A contingent liability is a possible obligation that arises
period presented. The number of equity shares and from past events whose existence will be confirmed
potentially dilutive equity shares are adjusted for by the occurrence or non-occurrence of one or more
share splits / reverse share splits and bonus shares, uncertain future events beyond the control of the Bank
as appropriate. or a present obligation that is not recognized because
it is not probable that an outflow of resources will be
3.15. Proposed Dividend required to settle the obligation. A contingent liability
Proposed dividend after the balance sheet date is also arises in extremely rare cases where there is a
accrued in the books of the Bank in the year in which liability that cannot be recognized because it cannot
the dividend is declared / approved. be measured reliably. The Bank does not recognize a
contingent liability but discloses its existence in the
3.16. Segment reporting financial statements. Contingent assets are neither
recognised nor disclosed in the financial statements.
The disclosure relating to segment information is
in accordance with the guidelines issued by RBI. In
3.18. Cash and Cash Equivalents
accordance with guidelines issued by RBI, the bank
has adopted segment reporting as under: Cash and cash equivalents comprises of Cash in Hand
and Balances with RBI and Balances with Banks
Treasury includes all investment portfolios, Profit/ and Money at Call and Short Notice. Cash and cash
Loss on sale of investments, PSLC Fee, Profit/Loss equivalents for the purpose of cash flow statement
on foreign exchange transaction, equities, income comprise of Cash in Hand and Balances with RBI
from derivatives and money market operations. The and Balances with Banks and Money at Call and
expenses of this segment consist of interest expenses Short Notice.
on funds borrowed from external sources as well as
internal sources and depreciation/amortisation of 3.19. Short sale transactions
premium on HTM category investments. In respect of the short sale transactions in Central
Government dated securities, the short position is
Corporate / Wholesale Banking includes all advances covered by outright purchase of an equivalent amount
to trusts, partnership firms, companies and statutory of the same security within a maximum period of
bodies, which are not included under ‘Retail Banking’. three months including the day of trade. The short
position is reflected as the amount received on sale
Retail Banking includes lending to and deposits, from in a separate account and is classified under ‘Other
retail customers and identified earnings and expenses Liabilities’. The short position is marked to market and
of the segment. loss, if any, is charged to the Profit and Loss account,
while gain, if any, is not recognised. Profit or loss on
Other Banking Operations includes all other settlement of the short position is recognised in the
operations not covered under Treasury, Corporate / Profit and Loss account.
Wholesale Banking and Retail Banking.
3.20. Reward Points
Unallocated includes Capital and reserves and other The Bank runs a loyalty program, which seeks to
un-allocable assets, liabilities, income and expenditure. recognize and reward customers based on their
relationship with the Bank. Under the program,
Geographic segment eligible customers are granted loyalty points
The Bank operations are predominantly confined redeemable in future, subject to certain conditions.
within one geographical segment (India) and The Bank estimates the probable redemption of such
accordingly, this is considered as the only loyalty/reward points using an actuarial method at
secondary segment. the Balance Sheet date by employing an independent
actuary. Provision for the said reward points is then
3.17. Provisions. Contingent Liabilities and Contingent made based on the actuarial valuation report as
Assets furnished by the said independent actuary.
A provision is recognized when the Bank has a present
obligation as a result of past event, it is probable 3.21. Share issue expenses
that an outflow of resources embodying economic Share issue expenses are adjusted from Share Premium
benefits will be required to settle the obligation Account in terms of Section 52 of the Companies
and a reliable estimate can be made of the amount Act, 2013.
of the obligation. Provisions are not discounted to
their present value and are determined based on the 3.22. Corporate social responsibility
best estimate required to settle the obligation at the Expenditure towards corporate social responsibility, in
reporting date. These estimates are reviewed at each accordance with Companies Act, 2013, is recognised
reporting date and adjusted to reflect the current in the Profit and Loss Account.
best estimates.

Schedule 18 - Notes forming part of the financial statements

(All amounts in crore of `, unless otherwise specified)
1 Regulatory Capital
a) Composition of Regulatory Capital
The Capital Adequacy Ratio [“CRAR”] of the Bank, calculated as per the Standardised approach for Credit Risk
under Basel II regulation is set out below. Market Risk and Operational Risk are not considered for computation
of Risk Weighted Assets in the current year as per Guidelines applicable for Small Finance Banks.
S. As at As at
Particulars
No Mar 31, 2022 Mar 31, 2021
i) Common Equity Tier 1 capital 3,939.14 3,150.78
ii) Additional Tier 1 Capital - -
iii) Tier 1 Capital (i + ii) 3,939.14 3,150.78
iv) Tier 2 Capital 100.87 128.60
v) Total Capital (Tier 1 + Tier 2) 4,040.01 3,279.38
vi) Total Risk Weighted Assets (RWAs) 16,056.09 13,564.70
vii) CET 1 Ratio (CET 1 as a percentage of RWAs) 24.53% 23.23%
viii) Tier 1 Ratio (Tier 1 capital as a percentage of RWAs) 24.53% 23.23%
ix) Tier 2 Ratio (Tier 2 capital as a percentage of RWAs) 0.63% 0.95%
x) Capital to Risk Weighted Assets Ratio (CRAR) (Total Capital as a percentage of RWAs) 25.16% 24.18%
xi) Leverage Ratio # 14.73% 12.85%
xii) Percentage of the shareholding of
a) Government of India NA NA
b) State Government of India NA NA
c) Sponsor Bank NA NA
xiii) Amount of paid-up equity capital raised during the year* 112.75 85.88
xiv) Amount of non-equity Tier 1 capital raised during the year 0.00 0.00
xv) Amount of Tier 2 capital raised during the year 0.00 0.00
# Leverage Ratio computed as per Basel III framework

* During the quarter/ year ended March 31, 2022, the Bank successfully completed Qualified Institutions Placement (QIP) of its shares
comprising issue of 10,26,31,087 equity shares of `.10/ each at premium of `.43.59 per share, thereby raising `.550 crore. The allotment was
completed on February 19, 2022 and these equity shares of the Bank got listed on February 23, 2022 on National Stock Exchange (NSE) and
BSE Ltd. As a result of this QIP, the public shareholding in the Bank increased from 18.70% to 25.37%, thereby complying with the Minimum
Public Shareholding (MPS) requirements prescribed by SEBI Regulations.
The Bank, during the year ended March 31,2022 has allotted 1,01,18,318 equity shares of ` 10/- each, fully paid up, on exercise of options by
its employees and employees of the Holding company (Equitas Holdings Limited) in accordance with the ESFB ESOP Scheme.
* During year ended March 31, 2021, the Bank successfully completed Initial Public Offer (IPO) of its shares comprising issue of 8,48,48,484
equity shares of ` 10/ each at premium of ` 23 per share, thereby raising ` 280 crore and an offer for sale of 7,20,00,000 equity shares @
` 33 per share, by the Equitas Holdings Limited. The equity shares of the Bank got listed on November 2, 2020 on National Stock Exchange
(NSE) and BSE Ltd, thereby complying with the licensing condition of listing the shares of the Bank.
The Bank, during the year ended March 31, 2021, has allotted 10,28,164 equity shares of ` 10 each, fully paid up, on exercise of options by
its employees and employees of the Holding company(Equitas Holdings Limited) in accordance with the Banks’s Employee Stock Option
Scheme.
1b) Draw down from Reserves:

The Bank has not drawn down any amount from its opening reserves during the year ended March 31, 2022 and
March 31, 2021.
Share premium
An amount of ` 11.14 crore (Previous Year ` 14.82 crore ) being the expenditure in connection with issue of shares
during the year has been drawn down from Share Premium account as permitted under section 52 of the Companies
Act 2013.
144

1c) Appropriations to reserve: of ` 9.68 Crore (Previous year ` 7.42 Crore) to Special
(i) Statutory reserve Reserve. There is no drawdown from this reserve
during FY 21-22 and FY 20-21.
As mandated by the Banking Regulation Act, 1949, all
banking companies incorporated in India shall create
(iv) Investment Fluctuation Reserve
a reserve fund, out of the balance of profit of each
year as disclosed in the profit and loss account and During the FY 2021-22, the bank has apportioned
before any dividend is declared and transfer a sum ` 1.25 Crore (Previous year : ` 1.98 Crore) to Investment
equivalent to not less than twenty five per cent of Fluctuation Reserve, based on net profit on sale of
such profit. The Bank has transferred ` 70.18 Crore investment and the value of investments in HFT and
(Previous year ` 96.06 Crore) to Statutory Reserve for AFS category, to protect against future increase in
the year. yield, in accordance RBI guidelines.
(ii) Capital Reserve (v) Declaration of Dividends

During the year, the Bank had appropriated ` 1.06 Considering the need to preserve capital to support
Crore (Previous Year ` 23.66 Crore), net of taxes growth and expansion, the Board did not recommend
and transfer to statutory reserve, to the Capital any dividend for the financial year ended March
Reserve, being the gain on sale of HTM Investments 31, 2022.
in accordance with RBI guidelines.
RBI vide its notification reference RBI/2021-22/23/
(iii) Special reserve DOR.ACC.REC.7/21.02.067/2021-22 Dated: April 22,
2021, stated that in view of the continuing uncertainty
As per the provisions under Section 36(1)(viii) of
caused by the ongoing second wave of COVID-19 in
Income Tax Act, 1961, the specified entity is allowed
the country, it is crucial that banks remain resilient and
the deduction in respect of any special reserve created
proactively raise and conserve capital as a bulwark
and maintained by it, i.e. an amount not exceeding
against unexpected losses. While allowing banks
twenty per cent of the profits derived from eligible
to pay dividend on equity shares at the half of that
business computed under the head “Profits and
permitted vide circular dated May 4, 2005, the said
gains of business or profession” (before making any
circular requires the Board of Directors of the Bank to
deduction under this clause). This would be applicable
consider projected capital position and requirements,
till the aggregate of the amounts carried to such
adequacy of provisions, etc before deciding upon
reserve account from time to time exceeds twice the
payment of dividend. Accordingly, considering the
amount of the paid up share capital (excluding the
need to preserve capital in these uncertain times,
amounts capitalized from reserves) of the entity.
the Board did not recommend any dividend for the
During the year, the Bank has transferred an amount
financial year ended March 31, 2021.


2 Asset Liability Management

a) Maturity pattern of certain items of assets and liabilities
i) As at 31-Mar-22
Over 3 Over 6 Over 1 Over 3
31 days 2 Months
2-7 8-14 15 to months months year and years Over 5
Particulars Day 1 to 2 to 3 Total
days days 30 days and upto and upto upto 3 and upto years
Months Months
6 months 1 year years 5 years
Deposits 478.81 873.39 303.98 260.54 591.82 430.82 1,291.48 3,293.51 11,329.17 46.13 51.15 18,950.80
Advances 56.03 131.29 172.55 238.97 587.37 541.36 1,133.03 2,998.34 6,377.34 2,661.45 4,476.48 19,374.21
Investments 1,298.50 16.75 - 313.64 173.78 67.11 223.34 513.59 1,742.40 49.11 51.63 4,449.85
Borrowings - - 14.14 - 39.14 114.14 425.57 806.04 1,107.37 110.00 - 2,616.40
Foreign - - - - - - - - - - - -
Currency
Assets
Foreign - - - - - - - - - - - -
Currency
Liabilities
ii) As at 31-Mar-21
Over 3 Over 6 Over 1 Over 3
31 days 2 Months
2-7 8-14 15 to months months year and years Over 5
Particulars Day 1 to 2 to 3 Total
days days 30 days and upto and upto upto 3 and upto years
Months Months
6 months 1 year years 5 years
Deposits 310.80 629.72 175.84 397.92 776.92 469.59 1,979.46 3,362.16 8,265.83 9.81 13.92 16,391.97
Advances 10.23 146.02 151.97 180.06 481.56 511.10 774.88 2,497.83 6,129.30 2,393.43 3,571.81 16,848.19
Investments 940.01 148.00 - 199.87 203.47 69.33 289.40 493.52 1,295.34 44.50 21.73 3,705.17
Borrowings - 17.45 220.73 70.00 172.18 122.18 432.79 621.88 1,978.11 530.00 - 4,165.32
Foreign - - - - - - - - - - - -
Currency
Assets
Foreign - - - - - - - - - - - -
Currency
Liabilities
In computing the above information, certain assumptions have been made by management of the Bank which have
been relied upon by the auditors and the same are used for submitting the regulatory returns. The actual outflows
may be different than the above estimates as deposits rollover assumptions are not considered in the maturity profile
on a conservative basis. Also the liquid assets in the form of Reverse Repo for ` 1,120 Crore as on March 31, 2022 with
residual maturity upto 4 days (March 31, 2021 - ` 2,785 Crore with residual maturity upto 9 days ) were not included
in the above disclosure.
146

b) (i) Liquidity Coverage Ratio (LCR)
Quantitative information on Liquidity coverage ratio (LCR) is given below:
Quarter ended Quarter ended Quarter ended Quarter ended
30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22
Particulars Total Total Total Total Total Total Total Total

Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets 6,507.00 6,507.00 6,297.00 6,296.92 5,638.00 5,638.22 5,205.41 5,205.41
(HQLA)
Cash Outflows
2 Retail deposits and deposits from
small business customers, of
which:
(i) Stable deposits 1,689.00 84.00 2,127.17 106.36 2,495.90 124.84 2,936.03 146.80
(ii) Less stable deposits 6,295.00 629.00 7,355.75 735.57 8,228.51 822.61 9,577.31 957.73
3 Unsecured wholesale funding, of
which:
(i) Operational deposits (all - - - - - - - -
counterparties)
(ii) Non-operational deposits (all 4,274.00 3,239.00 4,356.93 3,174.82 5,117.94 3,688.17 3,353.22 2,662.50
counterparties)
(iii) Unsecured debt 151.00 151.00 155.46 155.46 0.00 0.00 0.00 0.00
4 Secured wholesale funding 0.00 4.23 0.00 1,392.38
5 Additional requirements, of which
(i) Outflows related to derivative - - - - - - - -
exposures and other collateral
requirements
(ii) Outflows related to loss of - - - - - - - -
funding on debt products
(iii) Credit and liquidity facilities 147.00 44.00 132.84 24.94 114.49 8.81 105.39 6.73
6 Other contractual funding 200.00 200.00 419.91 419.91 241.51 241.51 521.02 521.02
obligations
7 Other contingent funding 158.00 8.00 139.39 6.76 143.78 6.98 158.31 7.68
obligations
8 TOTAL CASH OUTFLOWS 12,914.00 4,355.00 14,691.68 4,623.82 6,689.33 4,892.92 4,302.46
Cash Inflows
9 Secured lending (e.g. reverse 2,399.00 0.00 1,977.40 0.00 1,738.75 0.00 1,990.23 0.00
repos)
10 Inflows from fully performing 460.00 245.00 424.43 231.54 731.02 520.49 564.14 335.16
exposures
11 Other cash inflows 260.00 165.00 418.82 324.67 191.79 96.69 189.42 94.71
12 TOTAL CASH INFLOWS 3,119.00 410.00 2,820.65 556.21 2,661.56 617.18 2,743.79 429.87
13 TOTAL HQLA 6,507.00 6,296.92 5,638.22 5,205.41
14 TOTAL NET CASH OUTFLOWS 3,945.00 4,067.61 4,275.74 3,872.59
15 LIQUIDITY COVERAGE RATIO (%) 164.94 154.81 131.87 134.42


Qualitative disclosure around LCR
The Liquidity Coverage Ratio (LCR) is a global minimum standard for bank liquidity. It aims to ensure that a bank has
a adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted into cash immediately to
meet its liquidity needs for a 30 calendar day liquidity under stress scenario.
The LCR is calculated by dividing the amount of high quality liquid unencumbered assets (HQLA) by the estimated net
outflows over 30 calendar day period. The net cash outflows are calculated by applying RBI prescribed outflow factors
to the various categories of liabilities (deposits, unsecured and secured wholesale borrowings), as well as to undrawn
commitments and derivatives-related exposures, partially offset by inflows from assets maturing within 30 days.
Liquidity management of the Bank is undertaken by the Treasury department under the central oversight of the
Asset Liability Management Committee (ALCO) in accordance with the Board approved policies and ALCO approved
funding plans.
The mandated regulatory threshold as per the transition plan is embedded in the board approved ALM policy of the
Bank, with appropriate cushion to ensure maintenance of adequate liquidity buffers. Risk Management Department
computes the LCR and monitors the same as per the Operating guidelines for small finance banks. The Bank has been
submitting LCR reports to RBI from December 2016.
Currently the Liquidity Coverage Ratio is significantly higher than minimum regulatory threshold. As a strategy, the
Bank is investing in Level I assets resulting in comfortable level of HQLA. The Bank follows the criteria laid down by the
RBI for the calculation of High Quality Liquid Assets (HQLA), gross outflows and inflows within the next 30-days period.
HQLA predominantly comprises of Government securities viz. Treasury Bills, Central and State Government securities.
The Bank is predominantly funded through long term borrowings viz. Refinances & Customer Deposits. All significant
outflows and inflows are determined in accordance with the RBI guidelines and are included in the prescribed LCR
computation. The Risk Management Department measures and monitors the liquidity profile of the Bank with reference
to the Board approved limits on a static as well as on a dynamic basis by using the gap analysis technique supplemented
by monitoring of key liquidity ratios. The Bank assesses the impact on short term liquidity gaps dynamically under
various scenarios covering business projections under normal as well as varying market conditions. Periodical reports
are placed before the Bank’s ALCO for perusal and review.
b) (ii) Liquidity Coverage Ratio (LCR)

Quantitative information on Liquidity coverage ratio (LCR) is given below:

30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21

High Quality Liquid Assets
1 Total High Quality Liquid Assets 4,198.33 4,730.24 6,937.62 6,626.61
(HQLA)
Cash Outflows
2 Retail deposits and deposits from
small business customers, of
which:
(i) Stable deposits 739.86 36.99 928.96 46.45 1,123.47 56.17 1,366.26 68.31
(ii) Less stable deposits 3,311.74 331.17 3,883.86 388.39 4,519.72 451.97 5,284.13 528.41
3 Unsecured wholesale funding, of
which:
(i) Operational deposits (all 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
counterparties)
(ii) Non-operational deposits (all 2,880.83 2,259.73 3,356.97 2,703.25 3,702.09 2,937.33 4,078.68 3,203.01
counterparties)
(iii) Unsecured debt 126.58 126.58 235.47 235.47 279.10 279.10 325.64 325.64
4 Secured wholesale funding 0.00 4.23 42.32
148


30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21

5 Additional requirements, of which
(i) Outflows related to derivative - - - - - - - -
exposures and other collateral
requirements
(ii) Outflows related to loss of - - - - - - - -
funding on debt products
(iii) Credit and liquidity facilities 145.81 46.23 245.24 109.87 227.39 72.06 247.20 92.34
6 Other contractual funding 399.53 399.53 485.69 485.69 328.70 328.70 342.07 342.07
obligations
7 Other contingent funding 148.61 6.92 112.93 5.25 136.08 6.69 162.91 7.93
obligations
8 TOTAL CASH OUTFLOWS 3,207.15 3,974.37 4,132.02 4,567.71
Cash Inflows
9 Secured lending (e.g. reverse 1,704.43 0.00 1,277.96 0.00 2,824.04 0.00 2,604.47 0.00
repos)
10 Inflows from fully performing 47.38 29.33 285.37 156.04 482.67 255.75 478.12 257.26
exposures
11 Other cash inflows 109.73 102.45 75.83 66.73 237.18 167.16 310.60 238.71
12 TOTAL CASH INFLOWS 1,861.54 131.78 1,639.16 222.77 3,543.89 422.91 3,393.19 495.97
13 TOTAL HQLA 4,198.33 4,730.24 6,937.62 6,626.61
14 TOTAL NET CASH OUTFLOWS 3,075.37 3,751.60 3,709.11 4,071.74
15 LIQUIDITY COVERAGE RATIO (%) 136.51 126.09 187.04 162.75
Qualitative disclosure around LCR

The Liquidity Coverage Ratio (LCR) is a global minimum standard for bank liquidity. It aims to ensure that a bank has
a adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted into cash immediately to
meet its liquidity needs for a 30 calendar day liquidity under stress scenario.
The LCR is calculated by dividing the amount of high quality liquid unencumbered assets (HQLA) by the estimated net
outflows over 30 calendar day period. The net cash outflows are calculated by applying RBI prescribed outflow factors
to the various categories of liabilities (deposits, unsecured and secured wholesale borrowings), as well as to undrawn
commitments and derivatives-related exposures, partially offset by inflows from assets maturing within 30 days.
funding plans.
The mandated regulatory threshold as per the transition plan is embedded in the board approved ALM policy of the
Bank, with appropriate cushion to ensure maintenance of adequate liquidity buffers. Risk Management Department
computes the LCR and monitors the same as per the Operating guidelines for small finance banks. The Bank has been
submitting LCR reports to RBI from December 2016.
Currently the Liquidity Coverage Ratio is significantly higher than minimum regulatory threshold. As a strategy, the
Bank is investing in Level I assets resulting in comfortable level of HQLA. The Bank follows the criteria laid down by the
RBI for the calculation of High Quality Liquid Assets (HQLA), gross outflows and inflows within the next 30-days period.
HQLA predominantly comprises of Government securities viz. Treasury Bills, Central and State Government securities.
The Bank is predominantly funded through long term borrowings viz. Refinances & Customer Deposits. All significant
outflows and inflows are determined in accordance with the RBI guidelines and are included in the prescribed LCR
computation. The Risk Management Department measures and monitors the liquidity profile of the Bank with reference
to the Board approved limits on a static as well as on a dynamic basis by using the gap analysis technique supplemented


by monitoring of key liquidity ratios. The Bank assesses the impact on short term liquidity gaps dynamically under
various scenarios covering business projections under normal as well as varying market conditions. Periodical reports
are placed before the Bank’s ALCO for perusal and review.
c) Net Stable Funding Ratio (NSFR)

Unweighted value by residual maturity
Weighted
Available Stable Funding (ASF) Item No 6 months to
< 6 months >= 1 Year value
Maturity < 1 year
1 Capital: (2+3) 8,210 - - - 8,210
2 Regulatory capital 4,040 4,040
3 Other capital Instruments 4,170 4,170
4 Retail deposits and deposits from small business customers: (5+6) 8,228 1,499 1,319 2,427 10,096
5 Stable Deposits 3,113 2,958
6 Less stable deposits 5,115 1,499 1,319 2,427 7,139
7 Wholesale funding: (8+9) 5,073 - - - 2,537
8 Operational deposits
9 Other wholesale funding 5,073 2,537
10 Other Liabilities (11+12) 2,960 - - - -
11 NSFR derivative liabilities
12 All other liabilities and equity not included in the above 2,960 -
categories
13 Total ASF (1+4+7+10) 20,843
Required Stable Funding (RSF) Item
14 Total NSFR high-quality liquid assets (HQLA) 271
15 Deposits held at other financial institutions for operational 52 28
purposes
16 Performing loans and securities: (17+18+19+21+23) - 3,726 2,999 1,204 13,427
17 Performing loans to financial institutions secured by Level 1
HQLA
18 Performing loans to financial institutions secured by non-Level 1 311 328 211
HQLA and unsecured performing loans to financial institutions
19 Performing loans to non-financial corporate clients, loans to 3,415 2,671 3,043
retail and small business customers, and loans to sovereigns,
central banks, and PSEs, of which:
20 With a risk weight of less than or equal to 35% under the Basel II 11,047 9,390
Standardised Approach for credit risk
21 Performing residential mortgages, of which: 1,204 783
22 With a risk weight of less than or equal to 35% under the Basel II
Standardised Approach for credit risk
23 Securities that are not in default and do not qualify as HQLA,
including exchange-traded equities
24 Other assets: (sum of rows 25 to 29) 2,335 - - - 2,311
25 Physical traded commodities, including gold
26 Assets posted as initial margin for derivative contracts and 42 35
contributions to default funds of CCPs
27 NSFR derivative assets
28 NSFR derivative liabilities before deduction of variation margin
posted
29 All other assets not included in the above categories 2,293 2,276
30 Off-balance sheet items 686 33
31 Total RSF (14+15+16+24+30) 3,073 3,726 2,999 1,204 16,070
32 Net Stable Funding Ratio (%) 129.70%
150

Qualitative disclosure around Net Stable Funding Ratio (NSFR) :
The objective of NSFR is to ensure that banks maintain a stable funding profile in relation to the composition of their
assets and off-balance sheet activities. A sustainable funding structure is intended to reduce the probability of erosion
of a bank’s liquidity position due to disruptions in a bank’s regular sources of funding that would increase the risk of its
failure and potentially lead to broader systemic stress. The NSFR limits overreliance on short-term wholesale funding,
encourages better assessment of funding risk across all on- and off-balance sheet items, and promotes funding stability.
The NSFR is defined as the amount of available stable funding relative to the amount of required stable funding.
“Available stable funding” (ASF) is defined as the portion of capital and liabilities expected to be reliable over the
time horizon considered by the NSFR, which extends to one year. The amount of stable funding required (”Required
stable funding”) (RSF) of a 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.
funding plans.The mandated regulatory threshold as per the transition plan is embedded in the board approved ALM
policy of the Bank, with appropriate cushion to ensure maintenance of adequate liquidity buffers. Risk Management
Department computes the NSFR and monitors the same as per the operating guidelines for small finance banks. The
Bank has been submitting NSFR reports to RBI from December 2021.Currently the Net Stable Funding Ratio is at optimal
level compared with the prescribed regulatory limit of 100%. The bank is consistently increasing the Available Stable
Funds from stable customers which significantly increases NSFR. Periodical reports are placed before the Bank’s ALCO
for perusal and review.

3 Investments
152
a) Composition of Investment Portfolio as on March 31, 2022
Investment in India Investment Outside India
Government
Total
Particulars Other Subsidiaries Total securities
Government Debentures Subsidiaries Investments Total
approved Shares and/ or Others Investments (including Others
securities and bonds and/or joint outside Investments
securities Joint in India local
ventures India
Ventures authorities)
Held to Maturity
Gross 3,729.30 - - - - - 3,729.30 - - - - 3,729.30
Less: Provision for non- - - - - - -
performing investments (NPI)
Net 3,729.30 - - - - - 3,729.30 - - - - 3,729.30

Available for Sale
Gross 686.69 - 27.64 - - - 714.33 - - - - 714.33
Net 686.69 - 27.64 - - - 714.33 - - - - 714.33
Held for Trading
Gross - - 6.78 - - - 6.78 - - - - 6.78
Net - - 6.78 - - - 6.78 - - - - 6.78
Total Investments
Gross 4,415.99 - 34.42 - - - 4,450.41 - - - - 4,450.41
Less: Provision for non- - - - - - - - - - - - -
Net 4,415.99 - 34.42 - - - 4,450.41 - - - - 4,450.41
a) Composition of Investment Portfolio as on March 31, 2021
Investment in India Investment Outside India
Government
Subsidiaries Total
Particulars Other Total securities Subsidiaries
Government Debentures and/ or Investments Total
approved Shares Others Investments (including and/or joint Others
securities and bonds Joint outside Investments
securities in India local ventures
Ventures India
authorities)
Held to Maturity
Gross 3,046.42 - - - - - 3,046.42 - - - - 3,046.42
Net 3,046.42 - - - - - 3,046.42 - - - - 3,046.42
Available for Sale

Gross 584.30 - 0.20 74.25 - - 658.75 - - - - 658.75
Net 584.30 - 0.20 74.25 - - 658.75 - - - - 658.75
Held for Trading
Gross - - - - - -
Net - - - - - - - - - - - -
Total Investments
Gross 3,630.72 - 0.20 74.25 - - 3,705.17 - - - - 3,705.17
Net 3,630.72 - 0.20 74.25 - - 3,705.17 - - - - 3,705.17

153

b) Movement of Provisions for Depreciation and Investment Fluctuation Reserve
S. As at As at
Particulars
No Mar 31, 2022 Mar 31, 2021
(i) Movement of provisions held towards depreciation on investment
a) Opening Balance - -
b) Add: Provisions made during the year 0.56 108.20
c) Less: Write off / write back of excess provisions during the year - 108.20
d) Closing balance 0.56 -
(ii) Movement of Investment Fluctuation Reserve
(a) Opening balance 13.18 11.20
(b) Add: Amount transferred during the year 1.24 1.98
(c) Less: Drawdown - -
(d) Closing balance 14.42 13.18
(iii) Closing balance in IFR as a percentage of closing balance of investments in AFS and HFT/ 2.00% 2.00%
Current category
c) Sale and transfer of securities to / from HTM category

During the year, the Bank had sold SLR securities from HTM category through OMOs conducted by RBI and re-
purchase of government securities by GOI (Book Value - ` 275.09 Crore). As on March 31, 2022, Market value of
the investments held in the HTM category is ` 3,667.29 Crore and book value over market value is ` 62.02 Crore.
During the previous year, the Bank had sold SLR securities from HTM category through direct selling in secondary
market (Book Value - ` 681.33 Crore), OMOs conducted by RBI and re-purchase of government securities by GOI
(Book Value - ` 1,144.70 Crore). As on March 31, 2021, Market value of the investments held in the HTM category
is ` 3,042.37 Crore and the excess of book value over market value is ` 4.05 Crore.
The Bank had availed option provided by RBI vide press release dated 06-Nov-20 on repayment of Targeted Long
Term Repo Operations borrowings. Consequently, associated Non-SLR securities (invested out of funds borrowed
in TLTRO) of Book Value ` 123.59 Crore were shifted from HTM to AFS category in conformity with RBI guidelines.
d) Non - SLR investment portfolio

(i)
Non-performing non-SLR investments
The Bank does not have Non Performing investment under Non-SLR investment as on March 31, 2022 and March
31, 2021.
(ii) Issuer composition of Non SLR investments as at March 31, 2022:

Extent of
Extent of ‘Below Extent of Extent of
S.
Issuer Amount Private Investment ‘Unrated’ ‘Unlisted’
No
Placement Grade’ Securities Securities
Securities
(1) (2) (3) (4) (5) (6) (7)
1 PSUs 1.45 - - - -
2 FIs - - - - -
3 Banks 6.30 - - -
4 Private Corporates 26.66 0.20 - 0.20 0.20
5 Subsidiaries / Joint Ventures - - - - -
6 Others - - - - -
7 Provision held towards depreciation 0.56 - - - -
Total 33.85 0.20 - 0.20 0.20
Note: Amounts reported under columns 4, 5 6 and 7 are not mutually exclusive.
154

Issuer composition of Non SLR investments as at March 31, 2021:
Extent of
Extent of ‘Below Extent of Extent of
S.
Issuer Amount Private Investment ‘Unrated’ ‘Unlisted’
No
Placement Grade’ Securities Securities
Securities
(1) (2) (3) (4) (5) (6) (7)
1 PSUs - - - - -
2 FIs - - - - -
3 Banks - - - - -
4 Private Corporates 74.45 25.20 - 0.20 0.20
5 Subsidiaries / Joint Ventures - - - - -
6 Others - - - - -
7 Provision held towards depreciation - - - - -
Total 74.45 25.20 - 0.20 0.20
Note: Amounts reported under columns 4, 5 6 and 7 are not mutually exclusive.
e) Details of Repo / Reverse Repo including under Liquidity Adjustment Facility (LAF) transactions :
As at March 31, 2022
Minimum Maximum Daily Average Outstanding
S.
Particulars outstanding outstanding outstanding as on 31-Mar
No
during the year during the year during the year -2022 #
(i) Securities sold under repo
a. Government securities - 75.00 1.27 -
b. Corporate debt securities - - - -
c. Any other securities - - - -
(ii) Securities purchased under reverse repo
a. Government securities 302.00 3,725.00 1,990.13 1,120.00
# Repo and Reverse Repo Transactions (including LAF) are disclosed above in Face Value terms.
As at March 31, 2021

Minimum Maximum Daily Average Outstanding
S.
Particulars outstanding outstanding outstanding as on 31-Mar
No
during the year during the year during the year -2021 #
(i) Securities sold under repo
a. Government securities - 725.61 242.93 11.00
(ii) Securities purchased under reverse repo
a. Government securities 500.00 4,250.00 2,144.96 2,785.00
# Repo and Reverse Repo Transactions (including LAF) are disclosed above in Face Value terms.


4 Asset quality
a) Classification of advances and provisions held as on March 31, 2022
Standard Non-Performing
Particulars Total Total Non- Total

Standard Sub-Standard Doubtful Loss Performing
Advances Advances
Gross Standard Advances and NPAs
Opening Balance 16,582.02 325.19 299.41 18.18 642.78 17,224.80
Add: Additions during the year 1,389.33 10,548.84
Less: Reductions during the year* 1,194.93 8,041.73
Closing balance 18,894.73 572.39 239.75 25.04 837.18 19,731.91
*Reductions in Gross NPAs due to:
i) Upgradation 522.68
ii) Recoveries (excluding recoveries from 311.79
upgraded accounts)
iii) Technical/ Prudential Write-offs 220.87
iv) Write-offs other than those under (iii) 139.59
above
Provisions (excluding Floating Provisions)
Opening balance of provisions held 83.12 134.50 204.93 18.18 357.61 440.73
Add: Fresh provisions made during the year 516.42
Less: Excess provision reversed/ Write-off loans 516.32
Closing balance of provisions held 208.98 189.97 142.70 25.04 357.71 566.69
Net NPAs
Opening Balance 190.69 94.48 - 266.17
Add: Fresh additions during the year 872.91
Less: Reductions during the year 659.61
Closing Balance 382.42 97.05 0.00 479.47
Floating Provisions
Opening Balance 19.00
Add: Additional provisions made during the -
year
Less: Amount drawn down during the year 19.00
(Refer note below)
Closing balance of floating provisions -
Technical write-offs and the recoveries made
thereon
Opening balance of Technical/ Prudential 374.55
written-off accounts
Add: Technical/ Prudential write-offs during 220.87
the year
Less: Recoveries made from previously 24.22
technical/ prudential written-off accounts
during the year
Closing balance 571.20
Note: The Bank has utilised 100% of floating provision of ` 19 Crore held as on December 31, 2020, for making specific provisions against
non-performing assets amounting to ` 19.05 Crore, in accordance with the RBI circular, RBI/2021-22/28 DOR.STR.REC.10/21.04.048/2021-22
dated May 5, 2021.
156

Classification of advances and provisions held as on March 31, 2021
Standard Non-Performing
Particulars Total Total Non- Total

Standard Sub-Standard Doubtful Loss Performing
Advances Advances
Gross Standard Advances and NPAs
Opening Balance 13,499.63 195.29 213.96 8.07 417.32 13,916.95
Add: Additions during the year 589.37 7,409.08
Less: Reductions during the year* 363.91 4,101.23
Closing balance 16,582.02 325.19 299.41 18.18 642.78 17,224.80
*Reductions in Gross NPAs due to:
i) Upgradation 38.02
ii) Recoveries (excluding recoveries from 81.16
upgraded accounts)
iii) Technical/ Prudential Write-offs 191.85
iv) Write-offs other than those under 52.88
(iii) above
Provisions (excluding Floating Provisions)
Opening balance of provisions held 46.10 33.61 128.02 8.07 169.70 215.80
Add: Fresh provisions made during the year 442.01
Less: Excess provision reversed/ Write-off loans 254.10
Closing balance of provisions held 83.12 134.50 204.93 18.18 357.61 440.73
Net NPAs
Opening Balance 161.68 85.94 - 228.62
Add: Fresh additions during the year 147.36
Less: Reductions during the year 109.81
Closing Balance 190.69 94.48 - 266.17
Floating Provisions
Opening Balance 19.00
Add: Additional provisions made during the -
year
Less: Amount drawn down during the year -
Closing balance of floating provisions 19.00
Technical write-offs and the recoveries made
thereon
Opening balance of Technical/ Prudential 184.35
written-off accounts
Add: Technical/ Prudential write-offs during 191.85
the year
Less: Recoveries made from previously 1.65
technical/ prudential written-off accounts
during the year
Closing balance 374.55
NPA Ratio:
As at As at
Ratios
Mar 31, 2022 Mar 31, 2021
Gross NPA to Gross Advances 4.24% 3.73%
Net NPA to Net Advances 2.47% 1.58%
Provision coverage ratio 42.73% 58.59%


b) Sector-wise advances
As at 31st Mar 2022 As at 31st Mar 2021
S. % of Gross % of Gross
Sector Outstanding NPAs Outstanding NPAs
No Gross NPAs Gross NPAs
Advances to Total Advances to Total
advances advances
(i) Priority Sector
a) Agriculture and allied activities 3,285.59 166.37 5.06% 2,783.97 80.47 2.89%
b) Advances to industries sector eligible as 1,143.62 28.54 2.50% 739.60 27.14 3.67%
priority sector lending
c) Services 6,731.92 266.72 3.96% 4,663.57 242.49 5.20%
d) Personal loans* 1,076.18 20.27 1.88% 725.47 20.78 2.86%
e) Others 1,345.98 106.47 7.91% 1,344.60 56.66 4.21%
Sub-total (i) 13,583.29 588.37 4.33% 10,257.21 427.54 4.17%
(ii) Non-priority Sector
a) Agriculture and allied activities - - 0.00% - - 0.00%
b) Industry 784.44 7.15 0.91% 924.40 6.54 0.71%
c) Services 160.01 10.90 6.81% 166.02 26.80 16.14%
d) Personal loans** 4,134.97 158.88 3.84% 4,655.84 168.70 3.62%
e) Others 1,069.20 71.88 6.72% 1,221.33 13.20 1.08%
Sub-total (ii) 6,148.62 248.81 4.05% 6,967.59 215.24 3.09%
Total (i) + (ii) 19,731.91 837.18 4.24% 17,224.80 642.78 3.73%
* Personal loans includes Housing Loans
** Personal loans includes Housing Loans, Loan Against Property and Loan Against Gold
Priority sector includes ` 2,450 Crore (Previous year ` 4,800 Crore), in respect of which the Bank has sold Priority Sector
Lending Certificates (PSLC)
The Bank has compiled and furnished the data for the purpose of this disclosure from its internal MIS system / reports.
c) Overseas assets, NPAs and revenue

The Bank does not have any overseas branches and hence the disclosure regarding overseas assets, NPAs and
revenue is not applicable (Previous Year : Nil).
d) Particulars of resolution plan and restructuring

The Bank has not done any restructuring of advances under “Prudential Framework for Resolution of Stressed
Assets’ issued vide circular DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019.
e) Divergence in asset classification and provisioning

The Financial statement for the year ended March 31,2021 and March 31, 2022 have not been subjected to inspection
by Reserve Bank of India as on the date of the financials and accordingly, the disclosure on divergence in Asset
classification and provisioning as per RBI Circular: DBR.BP.BC.No. 63/21.04.018/2016-17 dated April 18, 2017 is
not applicable.
f) Disclosure of transfer of loan exposures

(i) In respect of loans not in default that are transferred or acquired
During the year, there was no loan exposures transferred and no loan exposures acquired (Previous year: Nil)
(ii) In the case of stressed loans transferred or acquired

During the year, there was no stressed loans transferred and no stressed loans acquired (Previous year: Nil)
158

g) Fraud accounts
As at As at
Particulars
31st Mar 2022 31st Mar 2021
Number of frauds reported 58 65
Amount involved in fraud 4.20 14.35
Amount of provision made for such frauds 3.42 30.38
Amount of Unamortised provision debited from ‘other reserves’ as at the end of the year - -
h) Details of Loans Restructured under Resolution Framework for COVID-19-related Stress

Details of resolution plan implemented under the Resolution Framework for covid-19 related stress as per RBI
circular dated August 6,2020 (Resolution Framework 1.0) and May 05, 2021 (Resolution Framework 2.0) as at March
31, 2022 are given below:
Exposure to
Exposure to
accounts classified
accounts classified
as Standard
Of (A), aggregate Of (A) amount paid as Standard
consequent to Of (A) amount
debt that slipped by the borrowers consequent to
Type of borrower implementation of written off during
into NPA during the during the half-year implementation of
resolution plan – the half-year #
half-year ## resolution plan –
Position as at the
Position as at the
end of the previous
end of this half-year
half-year (A) **
Personal Loans 17.63 2.95 - 0.19 14.49
Corporate persons* 18.51 4.21 0.20 1.94 12.36
Of which MSMEs 10.19 4.01 - 0.48 5.70
Others 1736.79 294.66 64.10 245.48 1196.65
Total 1,772.93 301.82 64.30 247.61 1,223.50
* As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016.

** Includes restructuring done in respect of requests received as of September 30, 2021 processed subsequently.
# represents debt that slipped into NPA and was subsequently written off during the half year.
## includes change in the balances on account of interest.
(ii) There were 1433 borrower accounts having an aggregate exposure of ` 94.93 crores to the Bank, where resolution
plans had been Implemented under RBI’s Resolution Framework 1.0 dated August 6, 2020 and now modified under
RBI’s Resolution Framework 2.0 dated May 5, 2021.
5 Exposures
a) Exposures to Real Estate Sector
S. As at As at
Particulars
No Mar 31, 2022 Mar 31, 2021
(i) Direct Exposures
(a) Residential Mortgages - Lending fully secured by Mortgages on residential 9,411.58 7,834.10
property that is or will be occupied by the borrower or that is rented"
- of which housing loans eligible for inclusion in priority sector advances are rendered 1,094.36 767.87
(b) Commercial Real Estate
Lending secured by mortgages on commercial real estate (office buildings, retail 162.04 168.47
space, multi purpose commercial premises, multi family residential buildings,
multi tenanted commercial premises, industrial or warehouse space, hotels, land
acquisition, development and construction, etc.). Exposure would also include non
fund based (NFB) limit
(c) Investments in Mortgage Backed Securities (MBS) and other securitised exposures –
a. Residential - -
b. Commercial Real Estate - -
(ii) Indirect Exposures
Fund based and non-fund based exposures on National Housing Bank (NHB) and 48.91 252.82
Housing Finance Companies (HFCs).
Total exposure to Real Estate Sector 9,622.53 8,255.39


Exposure represents the higher of the sanctioned or outstanding to Real estate sector.
The above disclosure includes the IBPC exposure of ` 570 crore. (Previous year ` 700 crore) and includes a) Exposure
to Home Loans, Loan against property against Residential mortgages other than classified under CRE-RH b)Exposure
to Real Estate Builders/ Developers c)exposures where the primary source of cash flow, i.e. more than 50% of cash
flows, for repayment / recovery is from lease or rental payments and such assets are taken as security and d) Indirect
exposure to HFC.
Commercial Real estate exposure classification is based on RBI circular DBOD.BP.BC.No. 42/08.12.015/2009-10 dated
September 9, 2009.
b) Exposures to Capital Market

S. As at As at
Particulars
No Mar 31, 2022 Mar 31, 2021
i Direct investment in equity shares, convertible bonds, convertible debentures and 34.42 0.20
units of equity oriented mutual funds the corpus of which is not exclusively invested in
corporate debt;
ii Advances against shares / bonds / debentures or other securities or on clean basis - 0.06
to individuals for investment in shares (including IPOs / ESOPs), convertible bonds,
convertible debentures, and units of equity oriented mutual funds;
iii Advances for any other purposes where shares or convertible bonds or convertible - -
debentures or units of equity oriented mutual funds are taken as primary security;
iv Advances for any other purposes to the extent secured by the collateral security of - -
shares or convertible bonds or convertible debentures or units of equity oriented
mutual funds i.e. where the primary security other than shares / convertible bonds /
convertible debentures / units of equity oriented mutual funds does not fully cover the
advances;
v Secured and unsecured advances to stockbrokers and guarantees issued on behalf of - -
stockbrokers and market makers;
vi Loans sanctioned to corporates against the security of shares / bonds / debentures or - -
other securities or on clean basis for meeting promoter’s contribution to the equity of
new companies in anticipation of raising resources;
vii Bridge loans to companies against expected equity flows / issues; - -
viii Underwriting commitments taken up by the banks in respect of primary issue of shares - -
or convertible bonds or convertible debentures or units of equity oriented mutual
funds;
ix Financing to stockbrokers for margin trading; - -
x All exposures to Venture Capital Funds (both registered and unregistered) - -
Total exposure to Capital market 34.42 0.26
c) Risk category-wise country exposure

The Bank does not have any country risk exposure other than “home country” exposures and accordingly, no
provision is maintained with regard to country risk exposure. (Previous year: Nil).
d) Unsecured advances
As at As at
Particulars
Mar 31, 2022 Mar 31, 2021
Total unsecured advances of the bank 3,723.31 3,300.26
Out of the above, amount of advances for which intangible securities such as charge over - -
the rights, licenses, authority, etc. have been taken
Estimated value of such intangible securities NA NA
e) Factoring exposures
The factoring exposure of the Bank as at March 31, 2022 is ` 199.97 crore (previous year: ` 108.78 crore)
160

f) Intra- Group exposure
S. As at As at
Particulars
No Mar 31, 2022 Mar 31, 2021
(i) Total amount of intra-group exposures - -
(ii) Total amount of top 20 intra-group exposures - -
(iii) Percentage of intra-group exposures to total exposure of the bank on borrowers/ - -
customers
(iv) Details of breach of limits on intra-group exposures and regulatory action thereon, - -
if any.
g) Unhedged foreign currency exposure

The Bank has made a provision of ` 0.007 crore for unhedged foreign currency exposure as required by RBI
guidelines during the year ended March 31, 2022 (March 31, 2021 : ` 0.028 crore).
6 Concentration of Deposits, Advances, Exposures and NPAs

a) Concentration of Deposits
As at As at
Particulars
Mar 31, 2022 Mar 31, 2021
Total Deposits of twenty largest depositors * 2,622.61 3,588.65
Percentage of Deposits of twenty largest depositors to Total Deposits of the bank 13.84% 21.89%
* excludes Certificate of Deposits issued.
b) Concentration of Advances*
As at As at
Particulars
Mar 31, 2022 Mar 31, 2021
Total advances of twenty largest borrowers 790.65 858.98
Percentage of advances of twenty largest borrowers to Total advances of the bank 3.80% 4.76%
*Advances represents Credit Exposure including derivatives furnished in RBI’s Master Circular on Exposure Norms.
c) Concentration of Exposures *
As at As at
Particulars
Mar 31, 2022 Mar 31, 2021
Total Exposure of twenty largest borrowers/customers 790.65 907.96
Percentage of Exposures of twenty largest borrowers/customers to Total exposures of the 3.80% 5.01%
bank on borrowers/customers
*Exposure is based on Credit and investment Exposure as prescribed in RBI’s Master Circular on Exposure Norms. Exposures includes IBPC
advances. Advances against banks own term deposit is not considered for above exposure computation.
d) Concentration of NPA
As at As at
Particulars
Mar 31, 2022 Mar 31, 2021
Total exposure to the top twenty NPA accounts 49.93 40.82
Percentage of exposures to the twenty largest NPA exposure to total Gross NPAs. 5.96% 6.35%


7 Derivatives
The Bank have not entered into any transactions in derivatives in the current and previous years
8 (a)Disclosures relating to securitisation

The Bank does not have any securitisation transactions in the current and previous years.
(b)
Assignment
The information on Direct assignment activity of the Bank as an originator as per RBI guidelines “Revisions to the
Guidelines on Securitisation Transactions” is given below.
As at As at
Particulars
Mar 31, 2022 Mar 31, 2021
Number of Direct Assignments 1 1
Total amount of Loans directly transferred / Assigned 111.11 111.11
Total amount of exposures retained by the Bank to comply with Minimum Retention
Requirement (MRR)
as on the date of Balance Sheet
a) Off-balance sheet exposures
First loss - -
Others - -
b) On-balance sheet exposures
First loss - -
Others - -
Amount of exposure to Assignment transactions other than MRR
a) Off-balance sheet exposures
i) Exposure to own Assignment
First loss - -
Others - -
ii) Exposure to third party Assignment
First loss - -
Others - -
b) On-balance sheet exposures
i) Exposure to own Assignment
First loss - -
Others - -
ii) Exposure to third party Assignment
First loss - -
Others - -
9 Off balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms)
Name of the SPV sponsored
Domestic Overseas
Nil Nil
10 Transfers to Depositor Education and Awareness Fund (DEA Fund)

S. Year ended Year ended
Particulars
No 31-Mar-22 31-Mar-21
(i) Opening balance of amounts transferred to DEA Fund 0.06 0.01
(ii) Add: Amounts transferred to DEA Fund during the year 0.05 0.05
(iii) Less: Amounts reimbursed by DEA Fund towards claims - -
(iv) Closing balance of amounts transferred to DEA Fund 0.11 0.06
162

11 Disclosure of Complaints
a) Summary information on complaints received by the bank from customers and from the OBOs
Complaints received by the bank from its customers
Particulars
No 31-Mar-22 31-Mar-21
1 Number of complaints pending at beginning of the year 63 54
2 Number of complaints received during the year 2,141 2,410
3 Number of complaints disposed during the year 2,144 2,401
3.1 Of which, number of complaints rejected by the bank 2 4
4 Number of complaints pending at the end of the year 60 63
Maintainable complaints received by the bank from OBOs
5 Number of maintainable complaints received by the bank from Office of Ombudsman 359 239
5.1 Of 5, number of complaints resolved in favour of the bank by Office of Ombudsman 350 229
5.2 Of 5, number of complaints resolved through conciliation/mediation/advisories issued by 9 10
Office of Ombudsman
5.3 Of 5, number of complaints resolved after passing of Awards by Office of Ombudsman - -
against the bank
6 Number of Awards unimplemented within the stipulated time (other than those - -
appealed)
b) Top five grounds of complaints received by the bank from customers

% increase/
Number of decrease in
Number of Number of Of 5, number
complaints the number
complaints complaints of complaints
Grounds of complaints, (i.e. complaints relating to) pending at the of complaints
received during pending at the pending beyond
beginning of received over
the year end of the year 30 day
the year the previous
year
(1) (2) (3) (4) (5) (6)
2021-2022
Account opening/difficulty in operation of 28 733 5% increase 19 0
accounts
Internet/Mobile/Electronic Banking 8 512 44% decrease 14 1
Levy of charges without prior notice/excessive 3 433 10% decrease 0
charges/foreclosure charges
Loans and advances 17 431 46% increase 15 0
ATM/Debit Cards 5 154 13% decrease 1 0
Others 2 237 204% increase 11 0
Total 63 2500 60 1
2020-2021
Account opening/difficulty in operation of 10 698 196% increase 28 1
accounts
Internet/Mobile/Electronic Banking 19 920 24% increase 8 0
Levy of charges without prior notice/excessive 7 480 256% increase 3 0
charges/foreclosure charges
Loans and advances 5 295 34% decrease 17 0
ATM/Debit Cards 11 178 2% decrease 5 0
Others 2 78 67% decrease 2 0
Total 54 2649 63 1


12 Disclosure of penalties imposed by the The Non-Executive Directors (“”NED””) including

Reserve Bank of India Independent Directors of the Bank shall be paid
remuneration as a percentage of the net profits
During the year ended March 31, 2022, RBI has not
of the Bank for the financial year as may be fixed
imposed any penalties on the Bank (Previous year :
by the Board from time to time, calculated as per
Nil)
the provisions of the Companies Act, 2013 and
subject to the limits fixed by the Reserve Bank
13 Disclosure on remuneration of India, from time to time.
a) Qualitative disclosures
Further, within the above ceiling, the
The Nomination and Remuneration Committee is
remuneration payable to the Chairman of the
chaired by an Independent Director and comprises
Board shall be two times the amount payable to
of four (4) other Independent Directors.
other Non-Executive Directors and Independent
Directors and further subject to approval of RBI
(a)
Remuneration Policy of the Bank covers
and the remuneration payable to the Chairman
remuneration payable for directors and
of the Audit Committee shall be 1.5 times the
employees of the Bank and all aspects of the
amount payable to other Non-Executive Directors
compensation structure such as fixed pay,
and Independent Directors.
perquisites, bonus, guaranteed pay, severance
package, stock, pension plan and gratuity.
NEDs are to be paid such sitting fee for each
meeting of the Board/ Committees of the Board
The functions of the committee include:
attended by them, as may be approved by the
recommendation of appointment of Directors
Board pursuant to provisions of Section 197 of the
to the board, evaluation of performance of the
Companies Act, 2013 read with Section 35B (1) of
Directors, approval of the policy for remuneration
the Banking Regulation Act 1949. NEDs including
payable to the employees, including senior
Independent Directors shall be reimbursed any
management and key management personnel,
out of pocket expenses incurred by them while
framing guidelines for the Employee Stock
performing duties for the Bank.
Option Scheme (ESOP Scheme) and deciding on
the grant of stock options to the employees and
The remuneration payable to Managing Director
Whole Time Directors of the Bank.
(“MD”)/Chief Executive Officer (“CEO”) shall
be based on the scope and responsibility that
(b) Information relating to the design and structure
goes with such positions, shall be comparable
of remuneration processes and the key features
to the compensations of MD/CEO of similar
and objectives of remuneration policy:
profiles in similar organizations and would be
performance linked. From time to time, the
The Bank believes in a sound compensation
NRC may fix a maximum ceiling on the fixed/
practice that ensures effective governance of
variable component of compensation, subject
compensation, alignment of compensation with
the approval of Reserve Bank of India.
prudent risk taking and effective supervisory
oversight and stakeholder engagement. This
On November 22, 2019, the Board of the Bank
policy is framed in accordance with the guidelines
approved an ESOP scheme for the Bank for
laid down by Reserve Bank of India (RBI) vide
eligible employees as determined from time to
their Circular Reference no DOR. Appt. BC. No.
time by the NRC of the Bank.
23/ 29.67.001/ 2019-20 dated November 4, 2019.
For the other categories of staff, the compensation
(c) Description of the ways in which current and
is structured taking into account all relevant
future risks are taken into account in the
factors such as the level of the position, roles and
remuneration processes.
responsibilities and the prevailing compensation
structure in the industry for the similar role.
The Board of Directors through the Nomination
and Remuneration Committee (”NRC”) shall be
(d)
D escription of the ways in which the
responsible for formulating and making the
Bank seeks to link performance during a
necessary amendments to the Remuneration
performance measurement period with levels
Policy for the Directors, Key Managerial Persons
of remuneration.
(“”KMP””) and Senior Executives of the Bank
from time to time. The NRC may consider
The Bank follows Annual Performance Review
different aspects like risk-return alignment, cost
(12 months period) to link performance.
to income ratio in framing the remuneration.
Remuneration is fixed based on the grade and
164

merit rating for all the employees. Individual Employees above defined grade are eligible
performances are assessed in line with business for Employee Stock Options issued by the Bank
or deliveries of the Key Result Areas (KRA), top determined by the Nomination and Remuneration
priorities of business, budgets, risk alignment etc. Committee of the Bank. These options are
granted annually based on performance ratings
(e) A discussion of the bank’s policy on deferral and role of the individual. Junior employees
and vesting of variable remuneration and a in cases of consistent exemplary performance
discussion of the Bank’s policy and criteria for are also granted options being part of High
adjusting deferred remuneration before vesting Achievers Club.
and after vesting.
In very select instances, employees are offered
The Bank has restructured the remuneration for options over a four year period, with a quarter
Material Risk Takers in line with the RBI circular of the options vesting every year. The vesting
dated November 4, 2019. Accordingly, the of the options are dependent on continuity and
variable pay of identified MRT was determined performance of the said individual.
to be between 100% to 300% of fixed pay. This
variable pay was further divided into cash and Variable pay for MRTs have been explained in
ESOPs. Both the cash and ESOPs of the said MRTs (e) earlier.
is to be deferred over a period of three year
in line with the risk taken. Each such MRT has A variable component may also be made available
performance measures aligned to risk measures for specific employees as agreed and included as
and the vesting of variable pay is also pro-rated a part of their respective compensation structure.
till the end of the deferral period.
As on the reporting date, the Bank does not have
(f) Description of the different forms of variable any form of variable remuneration other than as
remuneration (i.e. cash, shares, ESOPs and other stated above. Employees above defined grade
forms) that the Bank utilizes and the rationale are eligible for Employee Stock Options issued
for using these different forms. by the Bank determined by the Nomination
and Remuneration Committee of the Bank. In
Employees of the Bank are eligible for variable addition, some of the employees are holding
pay in terms of both cash and ESOPs. At field level stock options issued by the Holding company
this is linked to defined performance targets. under the Holding Company’s Employee Stock
Other roles may be given variable pay based Option scheme (Equitas ESOP Scheme 2015).
on their performance ratings. The variable pay
amount varies depending on both the role of the
individual as well as his/her performance levels.
b) Quantitative disclosures
Particulars
No 31-Mar-22 31-Mar-21
g) Number of meetings held by the Nomination and Remuneration 8 12
Committee during the financial year and remuneration paid to its
members.
Remuneration paid to its members. 0.16 0.21
h) (i) Number of employees having received a variable remuneration award 5.00 -
during the financial year
(ii) Number and total amount of sign-on/joining bonus made during the - -
financial year.
(iii) Details of severance pay, in addition to accrued benefits, if any. - -
i) (i) Total amount of outstanding deferred remuneration, split into cash, Cash: 64,57,976 Cash: Nil
shares and share linked instruments and other forms. No. of ESOPs: 36,228
Value of ESOPs:
10,34,128
(ii) Total amount of deferred remuneration paid out in the financial year. Nil -
(No Deferred Cash
Payment)



Particulars
No 31-Mar-22 31-Mar-21
j) Breakdown of amount of remuneration awards for the financial year to Fixed: 6,84,29,137 Fixed: 5,95,49,663
show fixed and variable, deferred and non-deferred. (as per Annual Fixed (as per Annual Fixed
CTC) CTC)
Total Variable Cash: Variable Cash: Nil

1,12,86,964
a) Deferred Cash:
64,57,976
b) Non Deferred
Cash: 48,28,988
No of ESOPs: No of ESOPs:
26,08,506 1,58,346
Value of ESOPs: Value of ESOPs:
5,63,44,257 38,08,179
k) (i) Total amount of outstanding deferred remuneration and retained - -
remuneration exposed to ex post explicit and / or implicit adjustments.
(ii) Total amount of reductions during the financial year due to ex post - -
explicit adjustments.
(iii) Total amount of reductions during the financial year due to ex post - -
implicit adjustments.
l) Number of MRTs identified. 5 5
m) (i) Number of cases where malus has been exercised. - -
(ii) Number of cases where clawback has been exercised. - -
(iii) Number of cases where both malus and clawback have been exercised. - -
n) General Quantitative Disclosure.
The mean pay for the bank as a whole (excluding sub-staff) and the Mean Pay: 4,51,715 Mean Pay: 4,02,109
deviation of the pay of each of its WTDs from the mean pay. Deviation: Deviation:
WTD (MD) Sal: 37.6 WTD (MD) Sal: 32
times Mean Pay times Mean Pay
The quantitative disclosures are provided in respect of Whole Time Directors / Chief Executive Officer/ Other Risk
Takers.
Details of Remuneration paid to Independent Directors for the year ended March 31, 2022 and for the year ended
March 31, 2021 are as under:
Remuneration Remuneration
Name
FY 2021-22 FY 2020-21
Mr Arun Ramanathan (Chairman) 0.12 0.12
Mr Arun Kumar Verma 0.09 0.09
Prof Balakrishnan N 0.06 0.06
Mr Navin Puri 0.06 0.06
Mr. Ramesh Rangan*# 0.06 0.02
Mr Sridhar Ganesh$ 0.03 0.06
Mr Srinivasan N 0.06 0.06
Ms Tabassum Inamdar$$ 0.03 0.06
Mr Vinod Kumar Sharma 0.06 0.06
Ms. Lalitha Lakshmanan$$$ - 0.02
Mr Samir Kumar Barua** 0.02 -
Ms Geeta Dutta Goel* - -
Mr. Nagarajan Srinivasan*** - -
Total 0.58 0.61
*Ms. Geeta Dutta Goel was appointed as Director w.e.f December 27, 2021. Ms. Geeta Dutta Goel has waived her right to receive sitting fee
and remuneration payable to her as Director of the Bank.
** Mr. Samir Kumar Barua was appointed as Director w.e.f December 27, 2021. Hence, he is entitled to attend the meeting post his
appointment.
$ Mr. Sridhar Ganesh retired as Director w.e.f. September 03, 2021.
166

$$ Ms. Tabassum Inamdar retired as Director w.e.f. October 19, 2021.
$$$ Ms. Lalitha Lakshmanan resigned as Director w.e.f. July 01, 2020.
***Mr Nagarajan Srinivasan resigned as Director w.e.f. November 17, 2020. Mr Nagarajan Srinivasan has waived his right to receive
remuneration/ commission/ sitting fee payable to him as Director of the Bank.
*#
Mr Ramesh Rangan was appointed as Director w.e.f November 09, 2020. Hence, he is entitled to attend the meeting post his
appointment.
14 Other Disclosures
a) Business Ratio
As at As at
S. No Ratio
Mar 31, 2022 Mar 31, 2021
(i) Interest Income as a percentage to Working Funds * 13.14% 13.70%
(ii) Non interest income as a percentage to Working Funds * 2.04% 1.79%
(iii) Cost of Deposits 6.45% 7.13%
(iv) Net Interest Margin $ 8.27% 8.24%
(v) Operating Profit as a percentage to Working Funds ^* 3.31% 3.80%
(vi) Return on Assets @ 1.07% 1.65%
(vii) Business (deposits plus advances) per employee # & (` in crore) 2.11 1.80
(viii) Profit per employee & (` in crore) 0.016 0.024
Note:
* Working funds to be reckoned as average of total assets (excluding accumulated losses, if any) as reported to Reserve Bank of India in Form
X for Commercial Banks and Form IX for UCBs., during the 12 months of the financial year.
$ Net Interest Income/ Average Earning Assets. Net Interest Income= Interest Income – Interest Expense
@ Return on Assets would be with reference to average working funds (i.e., total of assets excluding accumulated losses, if any).
# For the purpose of computation of business per employee (deposits plus advances), inter-bank deposits shall be excluded.
^ Operating profit is profit for the year before provisions and contingencies.
& Productivity ratios are based on average employee numbers, which excludes contract staff, intern etc.
b) Bancassurance Business
Commission, Exchange and Brokerage in Schedule 14 include the following fees earned on Bancassurance business:
As at As at
Particulars
Mar 31, 2022 Mar 31, 2021
On Insurance products 35.56 24.34
On Mutual Fund products 1.15 0.65
Total 36.71 24.99
c) Marketing and Distribution

Banks does not have fees / remuneration received in respect of the marketing and distribution function (excluding
bancassurance business).
d) Inter-bank participation with risk sharing

The aggregate amount of participation issued by the Bank and reduced from advances as per regulatory guidelines
is ` 865 crore as on March 31, 2022 (Previous Year : ` 700 crore).


e) Priority Sector Lending Certificate (PSLCs)
As at 31-Mar-22
Particulars PSLCs bought PSLCs sold during
during the year the year
Agriculture - -
Small and Marginal Farmers - -
Micro Enterprises - 2,450.00
General - -
Total - 2,450.00
As at 31-Mar-21
Particulars PSLCs bought PSLCs sold during
during the year the year
Agriculture - 100.00
Small and Marginal Farmers - 1,000.00
Micro Enterprises - 3,650.00
General - 50.00
Total - 4,800.00
f) Provisions and Contingencies

The breakup of provisions and contingencies debited to profit and loss account is given below:

Particulars
31-Mar-22 31-Mar-21
Provision for NPA (including write off) 341.56 432.64
Net provision / (reversal) towards Standard assets (including provision for restructured 125.86 37.03
standard assets)
Floating provision - -
Provision for taxes (net) 157.77 166.92
Deferred tax (net) (60.39) (39.88)
General Provision under COVID-19 Regulatory Package - (99.63)
Additional Provision of Standard Assets 26.08 -
Other Provision and Contingencies 0.34 5.29
Total 591.22 502.37
g) Implementation of IFRS converged Indian Accounting Standards (Ind AS)

The Bank is a subsidiary of Equitas Holdings Limited (EHL), a CIC-NBFC and the accounts of the Holding Company
are presented as per the Indian Accounting Standards (Ind AS). The accounts of the Bank, being a subsidiary
are required to be consolidated with the accounts of EHL, being the Holding Company as per the provisions of
Companies Act, 2013. Since, the Bank being a material subsidiary of EHL, Bank’s financial statements are converted
into Ind AS format for the purpose of Consolidation with EHL accounts. Also, as required by the RBI guidelines, the
accounts of the Bank are submitted to the RBI in the Ind AS format at periodic intervals. The Financials prepared
by the Bank under Ind AS for the purpose of consolidation of EHL accounts are reviewed/audited and approved
by the Board of Directors of the Bank.
The Bank has put in place Board approved policy on Expected Credit Loss (ECL) as per Indian Accounting Standards.
The Bank carries out the Expected loss provisioning using Probability of default (PD) and Loss given Default (LGD)
framework by considering historical data. Currently, the ECL computation is manual and the Bank is in the process
of automating the same
h) Payment of DICGC Insurance Premium

Particulars
31-Mar-22 31-Mar-21
(i) Payment of DICGC Insurance Premium* 19.29 11.77
(ii) Arrears in payment of DICGC Insurance Premium - -
* Amount paid inclusive of GST.
168

i) Movement in provision for debit card reward points
Particulars
31-Mar-22 31-Mar-21
Opening provision for reward points 0.48 0.22
Provision for reward points made during the year 1.35 0.48
Utilisation / Write back of provision for reward points 0.48 0.22
Effect of change in rate for accrual of reward points - -
Effect of change in cost of reward points - -
Closing provision for reward points 1.35 0.48
j) Fixed Assets - details of software

As at As at
Particulars
31-Mar-22 31-Mar-21
Opening cost 67.34 79.13
Additions during the year 20.80 21.45
Less: Deletions - 2.91
Less: Amortization to date 28.40 30.33
Closing balance 59.74 67.34
k) Contingent liabilities
Claims against the Bank not acknowledged as debts includes liability on account of Service tax, Goods and Service
Tax, amount transferred to DEAF and other legal cases filed against the bank. The Bank is a party to various legal
proceedings in the ordinary course of business which are contested by the Bank and are therefore subjudice.
The Bank does not expect the outcome of these proceedings to have a material adverse impact on the Bank’s
financial position.
As a part of banking activities, the Bank issues Letter of Guarantees on behalf of its customers, with a view to
augment the customer’s credit standing. Through these instruments, the Bank undertakes to make payments for its
customers obligations either directly or in case the customer fails to fulfill their financial or performance obligations.
l) Dues to Micro, Small and Medium Enterprises

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on
the basis of information collected by the Management. Based on the information available with the Bank, there
are no overdue amounts payable to Micro and Small Enterprises as defined under the Micro, Small and Medium
Enterprises Development Act, 2006 as at the Balance Sheet date. Further, the Bank has not paid any interest to
any Micro and Small Enterprises during the current and previous year.
m) Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the bank.
During the year, the Bank has not exceeded the prudential credit exposure limit as prescribed by the Reserve Bank
of India in respect of Single Borrower and Group Borrowers. (Previous year: Nil).
n) Letters of Comfort
The Bank has not issued any letters of comfort during the year.(Previous year: Nil).
o) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Bank to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
lend or invest in party identified by or on behalf of the bank (Ultimate Beneficiaries). The Bank has not received any
fund from any party(s) (Funding Party) with the understanding that the Bank shall whether, directly or indirectly
lend or invest in other persons or entities identified by or on behalf of the bank (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.


p) Corporate Social Responsibility Activities
Operating expenses include the following amounts towards Corporate Social Responsibility (CSR), in accordance
with Companies Act, 2013.

Details of CSR expenditure
31-Mar-22 31-Mar-21
a) Gross amount required to be spent by the Bank 8.16 4.96
b) Amount spent
i) Construction/acquisition of any asset - -
ii) On purposes other than (i) above 19.21 15.73
% of Average net profit spent for the last three financial years 4.71% 6.35%
15
Employee Benefits (AS 15)
Defined Contribution Plan
Provident Fund
he Bank makes Provident Fund contributions to State administered fund for qualifying employees. The Bank is required
T
to contribute a specified percentage of the payroll costs to the Fund. The Bank has recognised ` 44.95 crores (Previous
Year: ` 38.27 Crore) towards Provident Fund contributions in the Profit and Loss Account. The contributions payable
to the fund by the Bank is at rates specified in the rules of the scheme.
Defined Benefit Plans

Gratuity
he Bank has a funded gratuity scheme for its employees and the Gratuity liability has been made based on the actuarial
T
valuation done as at the year end. The details of actuarial valuation as provided by the Independent Actuary is as follows:
As at As at
Particulars
31-Mar-22 31-Mar-21
Change in defined benefit obligations during the year
Present value of defined benefit obligation at beginning of the year 44.03 32.67
Current service cost 15.28 11.40
Interest cost 2.44 1.94
Benefits paid (4.15) (1.29)
Actuarial (gains) (2.90) (0.69)
Present value of Defined Benefit Obligation at end of the year 54.70 44.03
Change in Fair Value of Assets during the year
Plan Assets at beginning of the year 25.50 22.08
Add: Adjustments to the opening balance 0.89 1.97
Expected return on plan assets 1.53 1.46
Actual Bank contributions - -
Actuarial gain / (loss) (1.53) (0.01)
Plan Assets at End of the Year 26.39 25.50
Liability Recognised in the Balance Sheet
Present value of defined benefit obligation (54.70) (44.03)
Fair value of plan assets 26.39 25.49
Net Liability Recognised in the Balance Sheet (28.31) (18.54)
170


Particulars
31-Mar-22 31-Mar-21
Cost of Defined Benefit Plan for the year
Current service cost 15.28 11.40
Interest cost 2.44 1.94
Expected return on plan assets (1.53) (1.46)
Net actuarial gains (1.37) (2.64)
Net Cost Recognized in the Profit and Loss account 14.82 9.24
Return on Plan Assets 1.53 1.46
Assumptions
Discount rate (Refer Note (b)) 6.20% 5.81%
Interest rate (Estimated rate of return on assets) 7.00% 6.00%
Future salary increase (Refer Note (a)) 10.00% 10.00%
Attrition rate (Refer Note (a)) 20.00% 20.00%
Notes:
a) The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
Further, the Management revisits the assumptions such as attrition rate, salary escalation etc., taking into account,
the business conditions, various external/internal factors affecting the Bank.
b) Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date
for the estimated term of the obligation.
c) Experience Adjustments:
For the year

For the year For the year For the year For the year
ended 31-
Particulars ended 31- ended 31- ended 31- ended 31-
Mar-18
Mar-22 Mar-21 Mar-20 Mar-19
Projected benefit obligation 54.70 44.03 32.66 23.50 17.88

Fair value of plan assets 26.39 25.49 22.08 20.63 11.85
Surplus/ (Deficit) (28.31) (18.54) (10.58) (2.87) (6.03)
Experience adjustments on plan liabilities - gains (2.90) (0.69) (1.03) (1.71) (1.50)
Experience adjustments on plan assets - gains / (losses) (1.53) (0.01) - (1.18) (0.95)
d) Category of Plan Assets
% of fair value to % of fair value to

Particulars total plan assets total plan assets
as at 31-Mar- 22 as at 31-Mar- 21
Government securities 0% 0%
Debenture and bonds 0% 0%
Equity shares 0% 0%
Others 100% 100%
Long-term Compensated Absences and Leave Encashment

The key assumptions used in the computation of provision for long term compensated absences and leave encashment
as per the Actuarial Valuation done by an Independent Actuary are as given below:

Particulars
31-Mar-22 31-Mar-21
Assumptions:
Discount Rate 6.20% 5.81%
Future Salary Increase 10.00% 10.00%
Attrition rate 20.00% 20.00%
The Bank has made changes to the leave policy w.e.f.01st April 2021 and necessary effect has been given in the
financial statement.


16 Disclosures- Accounting Standards

Segment Reporting (AS 17)
The business of the Bank is divided into three segments: Treasury, Wholesale Banking and Retail Banking business. These
segments have been identified and reported taking into account the target customer profile, the nature of products
and services, the different risks and returns, and the guidelines prescribed by RBI.Also, refer Schedule 17.3.16.
As at 31-Mar-22
Corporate /
Other Banking
Business Segments Treasury Retail Banking Wholesale Total
Business
Banking
Segment Revenue 371.56 3,452.25 109.91 63.51 3,997.23
Segment Results 137.00 213.44 29.67 53.49 433.60
Unallocated (income)/expenses 55.49
Operating profit 378.11
Income taxes 97.38
Net Profit 280.73
Other information
Segment assets 6,365.73 19,271.97 1,100.59 - 26,738.29
Unallocated assets 213.61
Total assets 26,951.90
Segment liabilities 5,343.83 16,406.29 930.86 - 22,680.98
Unallocated liabilities 24.75
Total liabilities 22,705.73
Net assets / Capital employed 1,021.90 2,865.68 169.73 - 4,057.31
Unallocated Net assets / Capital employed 188.86
Total Capital Employed 4,246.17
Additional information
Capital expenditure - 87.74 5.01 - 92.75
As at 31-Mar-21
Corporate /
Other Banking
Business Segments Treasury Retail Banking Wholesale Total
Business
Banking
Segment Revenue 396.21 3,055.08 99.41 61.77 3,612.47
Segment Results 190.52 292.45 15.69 32.82 531.48
Unallocated (income)/expenses 20.21
Operating profit 511.27
Income taxes 127.05
Net Profit 384.22
Other information
Segment assets 7,004.97 16,418.89 1,131.39 - 24,555.25
Unallocated assets 153.22
Total assets 24,708.47
Segment liabilities 6,075.38 14,239.15 981.25 - 21,295.78
Unallocated liabilities 16.35
Total liabilities 21,312.13
Net assets / Capital employed 929.59 2,179.74 150.14 - 3,259.47
Unallocated Net assets / Capital employed 136.87
Total Capital Employed 3,396.34
Additional information
Capital expenditure - 46.76 3.19 - 49.95
172

Geographic segments
The Bank’s operations are confined to one geography (India).
Segmental information is provided as per the MIS/reports maintained for internal reporting purposes, which includes
certain estimates and assumptions.
17 Related Party Transactions (AS 18)

i. Names of Related Parties and Nature of Relationship
Holding Company Equitas Holdings Limited

Fellow Subsidiaries Equitas Technologies Private Limited
Entities under the same Management Equitas Development Initiatives Trust
Equitas Healthcare Foundation
Key Management Personnel (KMP) Vasudevan PN, MD & CEO
N Sridharan, Chief Financial Officer
Sampathkumar KR, Company Secretary
Relatives of MD& CEO P V Choodamani
Late Pathangi Narasimhan
Komala P N
P.V. Varshini
P.N. Sriraman
P.N. Malolan
P.N. Janardhanan
P.N. Madhavan
Relative of Chief Financial Officer Balambika S
Relative of Company Secretary Sangeetha S
ii. Transactions with the Related Parties

Transactions Name of the Related Party
31-Mar-22 31-Mar-21
Expenses
CSR Contribution Equitas Development Initiatives Trust 10.20 2.17
Equitas Healthcare Foundation 9.01 13.56
Income
Safe Deposit Locker Rent Key Management Personnel 0.00 0.00
Relatives of Key Management Personnel 0.00 -
Deposits
Term deposits received Equitas Holdings Limited 122.04 287.91
Equitas Technologies Private Limited - 0.20
Equitas Development Initiatives Trust 0.06 0.24
Key Management Personnel 0.42 1.62
Relatives of Key Management Personnel 0.00 0.04
Term deposits closed Equitas Holdings Limited 77.39 241.87
Equitas Development Initiatives Trust - 4.23
Key Management Personnel 0.80 -



Transactions Name of the Related Party
31-Mar-22 31-Mar-21
Interest on Term Deposits Equitas Holdings Limited 16.23 16.70
Interest on Savings Deposits Equitas Development Initiatives Trust 0.37 0.27
Reimbursement of IPO expenses Equitas Holdings Limited - 14.83
Guarantees released during the Equitas Holdings Limited - 52.00
period
Remuneration paid to Key Vasudevan PN, MD & CEO 2.24 1.48
Management Personnel (excludes N Sridharan, Chief Financial Officer 1.21 0.92
employer’s share of contribution
to various funds and non- Sampathkumar KR, Company Secretary 0.30 0.24
monetary perquisites)
Under the ESFB Employees Stock Option Scheme, 2019 (ESFB ESOP, 2019) of the Bank, the Key Management Personnel
were allotted the following shares:

Name of the Key Management Personnel
31-Mar-22 31-Mar-21
Vasudevan PN - -
N Sridharan 1,19,840 47,500
Sampathkumar KR - -
Total 1,19,840 47,500
Under the ESFB Employees Stock Option Scheme, 2019 (ESFB ESOP, 2019) of the Bank, the Key Management Personnel
were granted the following options:

Name of the Key Management Personnel
31-Mar-22 31-Mar-21
Vasudevan PN 16,85,489 -
N Sridharan 72,680 -
Sampathkumar KR 9,280 26,960
Total 17,67,449 26,960
The remuneration to KMP does not include the provisions made for gratuity and leave benefits, as they are determined
on an actuarial basis for the Bank as a whole.
iii. Balances outstanding at the end of the year

As at As at
Particulars Name of the Related Party
31-Mar-22 31-Mar-21
Payables
Term Deposit outstanding Equitas Holdings Limited 272.30 227.66
Interest Payable on term deposits Equitas Holdings Limited 2.53 2.55
174

As at As at
31-Mar-22 31-Mar-21
Demand Deposits Equitas Holdings Limited 8.82 0.44
Equitas Technologies Private Limited 0.18 0.62
Savings Deposit Equitas Development Initiatives Trust 6.35 5.98
iv. Maximum Outstanding during the year

Maximum Maximum
Outstanding Outstanding
during Apr 21 to during Apr 20 to
Mar 22 Mar 21
Term Deposit Equitas Holdings Limited 274.71 357.66
Demand Deposits Equitas Holdings Limited 21.43 227.67
Equitas Technologies Private Limited 1.25 1.18
Savings Deposit Equitas Development Initiatives Trust 10.01 7.60
Others
Corporate Gurantees Equitas Holdings Limited - 52.00
18 Operating leases (AS 19)

The Bank has taken a number of premises on operating leases for branches, offices, ATMs and residential premises for
staffs. The Bank has not given any assets on operating lease. The details of maturity profile of future operating lease
payments are given below:

Particulars
31-Mar-22 31-Mar-21
Future lease rentals payable at the end of the year
- Not later than one year 67.99 64.53
- Later than one year but not later than five years 185.38 218.69
- Later than five years 27.59 25.43
Total minimum lease payments recognised in the Profit and loss account 68.38 64.34
Total of future minimum sub lease payments expected to be received under non-cancellable - -
sub-lease
The Bank has not sub-leased any of the properties taken on lease. There are no provisions relating to contingent rent.
19 Earnings per Share (AS 20)

Particulars
31-Mar-22 31-Mar-21
Net profit after tax 280.73 384.22
Basic weighted average number of equity shares 1,15,54,79,917 1,08,95,31,274
Diluted weighted average number of equity shares 1,17,06,52,926 1,10,14,06,583
Nominal value of Equity shares (`) 10.00 10.00
Basic Earnings per share (`) 2.43 3.53
Diluted Earnings per share (`) 2.40 3.49


During the year ended March 31, 2022, the Bank granted 81,61,946 options (Previous year 96,94,716 options ) to its
employees and the employees of Equitas Holding Limited under the ESFB Employees Stock Option Scheme 2019. These
options have dilutive impact on the earnings per share.
20 Deferred Taxes (AS 22)

The major components of deferred tax assets/liabilities are as follows:
Particulars As at 31-Mar-22 As at 31-Mar-21

Timing difference on account of: Assets Liabilities Assets Liabilities
Impact of difference between tax depreciation and
depreciation/amortization for financial reporting. 23.85 20.43
Expenditure charged to the profit and loss account
in the current year but allowed for tax purposes on
payment basis.* 35.17 32.74
Difference between Provisions for doubtful debts and
advances and amount allowable under section 36 (1)
(viia) of Income Tax Act, 1961. 90.10 67.15
Provision for advances 59.16 25.70
Others 12.34 11.77
Provision for special reserve u/s 36(i)(viii) of Income Tax
Act, 1961 7.01 4.57
Net closing balance carried to the Balance Sheet
(included in Schedule 11 - Others) 220.62 7.01 157.79 4.57
*Amount pertains to Provision for Leave encashment `.21.01 crore (Previous year: `. 20.58crore), Provision for Gratuity `.7.12 crore (Previous
year: `.4.66 crore ) and Provision for Bonus and Others `.7.03 crore (Previous year: `. 7.50 crore).
21 Employees Stock Option Scheme

a) Equitas ESOP Scheme 2015
Under the Equitas ESOP Scheme 2015, EHL stock options are granted to some of the eligible employees of the Bank.
As the administrator of the Employee Stock Option Scheme, EHL has informed the Bank that there are no costs to
be transferred to the Bank with respect to the options granted. The outstanding options as at the respective years is
given below.
As at As at
Particulars
31-Mar-22 31-Mar-21
Options outstanding 51,976 1,10,420
b) ESFB ESOP 2019

During the year ended 31st March 2020, the bank established a employee stock option scheme titled ESFB Employees
Stock Option Scheme, 2019 (ESFB ESOP 2019) effective from November 22, 2019. Under the plan, the Bank was authorized
to issue upto 110,000,000 options (including 33,487,873 options under Grant 1 issued as a replacement option for the
Scheme under the Holding Company) to eligible employees of the Bank and the Holding Company. Each option entitles
for apply and allotment of one fully paid share on payment of exercise price during the exercise period.
176
As at March 31, 2022, 377,39,487 (previous year 438,18,120) (net of forfeitures and cancellation) options were outstanding, which were granted at various
exercise prices. The following are the outstanding options as at March 31, 2022.
ESFB ESOP ESFB ESOP ESFB ESOP ESFB ESOP ESFB ESOP ESFB ESOP ESFB ESOP ESFB ESOP ESFB ESOP ESFB ESOP ESFB ESOP
ESOP Scheme
2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019
Grant Grant 1 Grant 2 Grant 3 Grant 4 Grant 5 Grant 6 Grant 7 Grant 8 Grant 9 Grant 10 Grant 11
Date of Grant 22-Nov -19 & 12-Dec-19 29-Jan-20 24-Mar-20 26-Sep-20 15-Feb-21 15-Feb-21 15-Feb-21 15-Feb-21 22-Mar-21 22-Mar-21
08-Dec-19
Date of Board 22-Nov -19 & 12-Dec-19 29-Jan-20 24-Mar-20 26-Sep-20 15-Feb-21 15-Feb-21 15-Feb-21 15-Feb-21 22-Mar-21 22-Mar-21
Approval 08-Dec-19
Exercise Price Per 27.00 27.00 38.00 38.00 38.00 33.00 34.00 35.00 40.00 56.00 56.00
Option (`)
Total Options 3,34,87,873 12,00,000 64,38,855 2,82,000 38,00,360 1,00,000 1,58,346 2,91,000 4,00,000 38,02,510 11,42,500
granted
Vesting Period ( Vesting ( Vesting (Vesting over (Vesting over a (Vesting over a (Vesting over a (Vesting over (Vesting over (Vesting over (Vesting over a (Vesting over
over 3 years) over 4 years) a period of period of four period of one period of one a period of a period of a period of period of one a period of
30-Nov-20 to 12-Dec-20 to two years ) 29 years – 25% year) 26-Sep- year) 15-Feb- three years ) three years ) four years ) year) 22-Mar- four years ) 22-
15-Dec-22 12-Dec-23 -Jan 2021 to at the end 2021 2022 22-Feb-2022 to 22-Feb-2022 to 22-Feb-2022 to 2022 Mar-2022 to
29-Jan-2022. of each year) 22-Feb-2024 22-Feb-2024 22-Feb-2025 22-Mar-2025
1-Apr-2021 to
1-Apr-2024
Method of Equity Equity Equity Equity Equity Equity Equity Equity Equity Equity Equity
Settlement
Particulars Grant 1 Grant 2 Grant 3 Grant 4 Grant 5 Grant 6 Grant 7 Grant 8 Grant 9 Grant 10 Grant 11
Exercise Period 3 years from 3 years from 3 years from 3 years from 3 years from 3 years from 3 years from 3 years from 3 years from 3 years from 3 years from
the date of the date of the date of the date of the date of the date of the date of the date of the date of the date of the date of
vesting of the vesting of the vesting of the vesting of the vesting of the vesting of the vesting of the vesting of the vesting of the vesting of the vesting of the
options options options options options options options options options options options
Graded Vesting
1st Vesting 92 % on 12 25 % on 12 67 % on 25 % on 12 12 months 12 months 1/3rd on expiry 1/3rd on expiry 25 % on 12 12 months 25 % on 12
months and 8 months and 20 completion of months and 20 from the date from the date of 12 months of 12 months months from from the date months from
days from the days from the One year from days from the of grant of grant from the date from the date the date of of grant the date of
date of grant date of grant the date of date of grant of grant of grant grant grant
grant
2nd Vesting 6% on expiry 25% on expiry 33 % on 25% on expiry - - 1/3rd on expiry 1/3rd on expiry 25% on expiry - 25% on expiry
of one year of one year expiry of one of one year of one year of one year of one year of one year
from the 1st from the 1st year from the from the 1st from the 1st from the 1st from the 1st from the 1st
vesting date vesting date 1st vesting date vesting date vesting date vesting date vesting date vesting date
3rd Vesting 2% on expiry 25% on expiry - 25% on expiry - - 1/3rd on expiry 1/3rd on expiry 25% on expiry - 25% on expiry
of two years of two years of two years of two years of two years of two years of two years
from the 1st from the 1st from the 1st from the 1st from the 1st from the 1st from the 1st
vesting date vesting date vesting date vesting date vesting date vesting date vesting date
4th Vesting - 25% on expiry - 25% on expiry - - - - 25% on expiry - 25% on expiry
of three years of three years of three years of three years
from the 1st from the 1st from the 1st from the 1st
vesting date vesting date vesting date vesting date
Vesting Conditions Partly Partly On Partly On On Partly Partly Partly On Partly
based on based on Continuance based on Continuance Continuance based on based on based on Continuance based on

continuance continuance of Service continuance of Service of Service continuance continuance continuance of Service continuance
of service of service of service of service of service of service of service
and partly and partly and partly and partly and partly and partly and partly
based on based on based on based on based on based on based on
performance performance performance performance performance performance performance
177
rating rating rating rating rating rating rating


ESOP Scheme ESFB ESOP 2019 ESFB ESOP 2019 ESFB ESOP 2019 ESFB ESOP 2019 ESFB ESOP 2019 ESFB ESOP 2019
Grant Grant 12 Grant 13 Grant 14 Grant 15 Grant 16 Grant 17
Date of Grant 01-Jun-21 30-Jul-21 05-Jul-21 30-Jul-21 05-Feb-22 07-Feb-22
Date of Board Approval 01-Jun-21 30-Jul-21 04-Mar-21 30-Jul-21 05-Feb-22 07-Feb-22
Exercise Price Per 60.00 64.00 50.00 64.00 57.85 57.85
Option (`)
Total Options granted 8,37,657 51,76,800 2,82,000 1,80,000 5,03,805 11,81,684
Vesting Period (Vesting over a (Vesting over a (Vesting over a (Vesting over a (Vesting over a (Vesting over a
period of three period of one period of four period of four period of three period of three
years ) 01-Jun- year ) 30-Jul- years ) 05-Jul- years ) 30-Jul- years ) 05-Feb- years ) 07-Feb-
2022 to 01-Jun- 2022 2022 to 05-Jul- 2022 to 30-Jul- 2023 to 05-Feb- 2023 to 07-Feb-
2024 2025 2025 2025 2025
Method of Settlement Equity Equity Equity Equity Equity Equity
Particulars Grant 12 Grant 13 Grant 14 Grant 15 Grant 16 Grant 17

Exercise Period 3 years from 3 years from 3 years from 3 years from 3 years from 3 years from
the date of the date of the date of the date of the date of the date of
vesting of the vesting of the vesting of the vesting of the vesting of the vesting of the
options options options options options options
Graded Vesting
1st Vesting 1/3rd on expiry 12 months 25 % on 12 25 % on 12 38.03 %/on 38.03 %/on
of 12 months from the date months from months from expiry of 12 expiry of 12
from the date of grant the date of the date of months from months from
of grant grant grant the date of the date of
grant grant
2nd Vesting 1/3rd on expiry - 25% on expiry 25% on expiry 32.76% on 32.76% on
of one year of one year of one year expiry of one expiry of one
from the 1st from the 1st from the 1st year from the year from the
vesting date vesting date vesting date 1st vesting date 1st vesting date
3rd Vesting 1/3rd on expiry - 25% on expiry 25% on expiry 29.21% on 29.21% on
of two years of two years of two years expiry of two expiry of two
from the 1st from the 1st from the 1st years from the years from the
vesting date vesting date vesting date 1st vesting date 1st vesting date
4th Vesting - - 25% on expiry 25% on expiry - -
of three years of three years
from the 1st from the 1st
vesting date vesting date
Vesting Conditions Partly based On Partly based Partly based On Based on
on continuance Continuance of on continuance on continuance Continuance of performance
of service and Service of service and of service and Service rating
partly based on partly based on partly based on
performance performance performance
rating rating rating
Exercise Period: Eligible to exercise the options up to three years from the date of vesting.
Manner of vesting: In a graded manner over 1 to 4 years commencing from the date of grant.
178

Particulars Grant 1 Grant 2 Grant 3 Grant 4 Grant 5 Grant 6 Grant 7 Grant 8 Grant 9 Grant 10 Grant 11
Date of Grant 22-Nov -19 & 12-Dec-19 29-Jan-20 24-Mar-20 26-Sep-20 15-Feb-21 15-Feb-21 15-Feb-21 15-Feb-21 22-Mar-21 22-Mar-21
08-Dec-19
Outstanding Options as 3,22,85,276 12,00,000 62,76,641 2,82,000 - - - - - - -

at April 1, 2020
Options granted - - - - 38,00,360 1,00,000 1,58,346 2,91,000 4,00,000 38,02,510 11,42,500

during the Period
Less: Options Forfeited 41,29,432 30,000 3,91,347 - 2,67,170 - - - - 74,400 -

/ Lapsed
Options Exercised 10,19,810 - 8,354 - - - - - - - -
Outstanding options 2,71,36,034 11,70,000 58,76,940 2,82,000 35,33,190 1,00,000 1,58,346 2,91,000 4,00,000 37,28,110 11,42,500
Options granted
during the Period
Less: Options Forfeited 19,99,159 - 3,53,481 7,050 4,51,770 - 1,04,004 9,700 10,000 3,76,385 3,11,252
/ Lapsed
Options Exercised 86,18,456 - 7,17,466 - 7,82,396 - - - - - -
Outstanding options 1,65,18,419 11,70,000 48,05,993 2,74,950 22,99,024 1,00,000 54,342 2,81,300 3,90,000 33,51,725 8,31,248
Vested 1,60,06,919 5,70,000 48,05,993 63,450 22,99,024 1,00,000 18,114 87,300 90,000 33,51,725 1,27,748
Yet to vest 5,11,500 6,00,000 - 2,11,500 - - 36,228 1,94,000 3,00,000 - 7,03,500
Weighted Average of 1.79 3.29 2.18 3.54 2.49 2.88 3.88 3.92 4.42 2.98 4.50
the remaining maturity
(in years)
Particulars Grant 12 Grant 13 Grant 14 Grant 15 Grant 16 Grant 17

Date of Grant 01-Jun-21 30-Jul-21 05-Jul-21 30-Jul-21 05-Feb-22 07-Feb-22
Outstanding Options as at April 1, - - - - - -
2020
Options granted during the Period
Less: Options Forfeited / Lapsed
Options Exercised
Outstanding options as at March
31, 2021
Options granted during the Period 8,37,657 51,76,800 2,82,000 1,80,000 5,03,805 11,81,684
Less: Options Forfeited / Lapsed - 4,99,460 - - - -
Options Exercised - - - - - -
Outstanding options as at March 8,37,657 46,77,340 2,82,000 1,80,000 5,03,805 11,81,684
31, 2022
Vested - - - - - -
Yet to vest 8,37,657 46,77,340 2,82,000 1,80,000 5,03,805 11,81,684
Weighted Average of the remaining 4.17 3.33 4.77 4.83 4.77 4.77
maturity (in years)


(b) The fair value of options used to compute Pro-forma net profit and earnings per Equity Share have been estimated
on the date of the grant, using Black-Scholes model by a Merchant Banker.
The key assumptions used in Black-Scholes model for calculating fair value as on the date of the grant are:
Variables Grant 1 Grant 2 Grant 3 Grant 4 Grant 5 Grant 6 Grant 7 Grant 8 Grant 9 Grant 10 Grant 11
Grant Date 22-Nov -19 & 12-Dec-19 29-Jan-20 24-Mar-20 26-Sep-20 15-Feb-21 15-Feb-21 15-Feb-21 15-Feb-21 22-Mar-21 22-Mar-21
08-Dec-19
Risk Free Interest Rate 5.56% to 5.85% to 5.83 % to 5.81 % to 4.66% 4.68% 4.68% to 4.68% to 4.68% to 4.82% 4.82% to
6.06% 6.59% 6.12% 6.41% 5.46% 5.46% 5.75% 5.97%
Expected Life 2.52 to 4.53 2.50 to 5.51 2.50 to 2.52to 2.50 yrs 2.50 yrs 2.50 yrs 2.50 yrs to 2.50 yrs to 2.50 yrs 2.50 to
yrs yrs 3.51 yrs 5.52 yrs to 4.50 4.50 yrs 5.50 yrs 5.51 yrs
yrs
Expected Volatility 32.63% to 32.71% to 32.66% to 32.86% to 40.98% 42.05% 39.30% 39.30% to 39.30% to 42.24% 39.21% to
35.63% 35.41% 32.86% 35.33% to 42.03% 42.03% 42.13%
42.03%
Dividend Yield - - - - - - - - - - -
Price of the underlying 27.00 27.00 38.00 38.00 38.00 33.00 34.00 35.00 40.00 56.00 56.00
Share at the time of
the Option Grant (`)
Fair Value of the

Option (`)
1st Stage 7.10 7.17 10.11 10.22 11.35 20.76 20.20 19.65 17.11 16.69 16.66
2 Stage
nd
8.70 8.82 12.41 12.45 - - - 21.73 19.38 - 19.60
3rd Stage 10.69 10.83 - 14.53 - - - 23.81 21.63 - 22.52
4th Stage - 12.13 - 16.94 - - - - 23.83 - 25.33
Variables Grant 12 Grant 13 Grant 14 Grant 15 Grant 16 Grant 17
Grant Date 01-Jun-21 30-Jul-21 05-Jul-21 30-Jul-21 05-Feb-22 07-Feb-22
Risk Free Interest Rate 4.76% to 5.56% 4.77% 4.84% to 5.98% 4.77% to 5.95% 5.10% to 6.05% 5.10% to 6.05%
Expected Life 2.50 yrs to 4.50 yrs 2.50 yrs 2.50 yrs to 5.51 yrs 2.50 yrs to 5.51 yrs 2.50 yrs to 4.50 yrs 2.50 yrs to 4.50 yrs
Expected Volatility 43.09% to 38.27% 43.04% 42.96% to 37.88% 43.04% to 37.68% 43.84% to 38.85% 43.84% to 38.85%
Dividend Yield - - - - - -
Price of the underlying Share at 59.15 64.00 49.70 64.00 57.85 57.85
the time of the Option Grant (`)
Fair Value of the Option (`)
1st Stage 18.10 19.40 21.76 19.40 18.45 18.45
2nd Stage 21.01 - 24.56 22.51 21.41 21.41
3rd Stage 23.56 - 26.93 25.30 24.01 24.01
4th Stage - - 29.57 28.35 - -
Volatility
Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period.
The measure of Volatility used in the Black -Scholes option pricing model is the annualized standard deviation of the
continuously compounded rates of return on the stock over a period of time.
c) Dividend Yield
Expected dividend yield has been calculated based on the dividend declared for 1 financial year prior to the date of
grant. The dividend yield has been derived by dividing the dividend per share by the market price per share on the
date of grant.
180

Had compensation cost for the stock options granted under the Scheme been determined based on the fair value
approach, the Bank’s net profit / (loss) and earnings per share would have been as per the Proforma amounts
indicated below:
For the year ended For the year ended

Particulars
March 31, 2022 March 31, 2021
Net Profit as per Statement of Profit and Loss (as reported) 280.73 384.22
Add: Stock Based Employee Compensation Expense included in profit before tax 1.27 -
Less: Stock Based Compensation Expense Determined under Fair Value based Method (19.35) (21.68)
(Proforma)
Net Profit - Proforma 262.65 362.54
Basic Earnings per Share of ` 10 each (as reported) 2.43 3.53
Basic Earnings per Share of ` 10 each (Proforma) 2.27 3.33
Diluted Earnings per Share of ` 10 each (as reported) 2.40 3.49
Diluted Earnings per Share of ` 10 each (Proforma) 2.24 3.29
Also refer Note 19 of Schedule 18.
22 Prior period comparatives

Prior period comparatives have been reclassified / regrouped by the management, wherever necessary.

Date: May 04, 2022
For Varma & Varma,



Notes
Notes
Notes
Corporate Information
Board of Directors Registered Office:

4th Floor, Phase II, Spencer Plaza, No.769, Mount Road, Anna Salai
Mr. ARUN RAMANATHAN
Chennai – 600002 Tel: +91 44 4299 5000 | Fax: +91 44 4299 5050
Chairman and Independent Director Email: Corporate@equitas.in | Website: www.equitasbank.com
CIN: L65191TN1993PLC025280
Mr. ARUN KUMAR VERMA
Independent Director
Statutory Auditors:
Prof. BALAKRISHNAN N Varma & Varma
Independent Director Chartered Accountants
Sreela Terrace, Level 4, Unit -D
105, 1st Main Road,
Mr. RAMESH RANGAN Gandhi Nagar Adyar
Independent Director Chennai - 600 020, Tamil Nadu
Ph: +91 44 24452239, 24423496
Prof. SAMIR KUMAR BARUA
M/s. T R Chadha & Co LLP,
Independent Director 5D, 5th Floor, Mount Chambers,
758, Anna Salai, Mount Road,
Mr. SRINIVASAN N Chennai – 600002
Tel: +91 44 4269 4571 | 4269 4572
Ms. GEETA DUTTA GOEL

Mr. VINOD KUMAR SHARMA

Mr. NAVIN PURI

Mr. VASUDEVAN P N
Managing Director and Chief Executive
Officer (MD & CEO)
Key Managerial Personnel

(Other than MD & CEO)
Mr. SRIDHARAN N
Chief Financial Officer
Mr. SAMPATHKUMAR K R
Company Secretary
4th Floor, Spencer Plaza,
No. 769, Phase II, Anna Salai Chennai - 600 002

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Amplifying scale

With a digital mindset

01-53 54-118 119-181

Performance snapshot FY22

Our customers are at the heart of continuing to tap into the

We target to achieve sustainable

About the report

Reporting principles and frameworks Responsibility statement

Mapping capitals and UN

Financial Manufactured Human

SDGs Impacted SDGs Impacted SDGs Impacted

Intellectual Social and

SDGs Impacted SDGs Impacted

Integrated Annual Report 2021-22 03

Since inception, we are on a mission to create

Launch of our Postal Stamp during our 5th anniversary

5,604 18,951 1,638 9,855

8,238 20,597 2,048 4,246

Cost of Funds % Branches

8.36 6.58 889 861

13,490 17,607 23,97,986 56,87,893

Integrated Annual Report 2021-22 05

How we built a stable, scalable and

Diversifying our asset portfolio

FY18 FY22 (` in Crore)

2,288 3,907 Micro Finance

2,927 9,522 Small Business Loans

FY18 FY22 2,251 5,047 Vehicle Finance

- 1,164 MSE Finance

- 758 NBFC Financing

Growing the share of secured lending (%)

FY18 FY22 (%)

66.33 81.30 Secured Book

Achieving a healthy depositor mix (%)

FY18 5,604 (J Cr)

FY22 18,951 (J Cr)

Deposit Category Others

Maturity in asset product segments

FY17 FY18 FY19 FY20 FY21 FY22

FY17 FY18 FY19 FY20 FY21 FY22

Steadily lowering Cost of Funds (CoF)

FY17 FY18 FY19 FY20 FY21 FY22

Integrated Annual Report 2021-22 07

With a purpose to offer financing solutions to India’s

Awards and accolades

2018 • Market Place Solutions for helping 20,000+

Gross advances exceed ` 205 Bn 2022

Integrated Annual Report 2021-22 09

We have always adopted a conservative

Image used in this page is for representation purpose only

Balance Sheet Size Gross Advances

FY22 26,952 FY22 20,597

FY21 24,708 FY21 17,925

FY20 19,296 FY20 15,367

FY19 15,763 FY19 11,704

FY18 13,310 FY18 8,238

Total Deposits* Networth

FY22 18,951 FY22 4,246

FY21 16,392 FY21 3,396