1. Regulatory Capital
a) (i) Composition of Regulatory Capital
The Capital adequacy ratio ("CAR”) has been computed as per operating guideline for Small Finance Bank in accordance with RBI Circular No. RBI/DOR/2025-26/182 DOR.CAP.REC.101/21-01-002/2025-26, dated November 28, 2025.The total Capital Adequacy ratio of the Bank as at March 31, 2026 is 20.45% (March 31, 2025: 25.83%) against the regulatory requirement of 15.00% as prescribed by RBI.
Subordinated debt (Tier 2 capital) outstanding as at March 31, 2026 is H 100.00 crores (March 31, 2025: H 100.00 crores).
Further as per the RBI’s directions given in the circular RBI/DOR/2025-26/182 DOR.CAP.REC.101/21-01-002/2025-26, dated November 28, 2025, no separate risk charge has been calculated for Market Risk and Operational Risk for capital ratios.
In accordance with the RBI guidelines, small finance banks are required to make Pillar 3 disclosure under Basel II regulation.These disclosures are available on the Bank’s website at the following link: https://www.suryoday. bank.in/regulatory-disclosure. The above disclosures have not been subjected to audit by the statutory auditors of the Bank.
) (ii) Capital Infusion
During the year ended March 31, 2026, the Bank allotted 5,000 (March 31, 2025: 84,126) equity shares having face value of H 10 each aggregating to H 0.06 crores including share premium (March 31, 2025: H 1.01 crore) in respect of stock options exercised pursuant to ESOP scheme.
b) Draw Down from Reserves Share Premium
There has been no draw down from share premium during the year ended March 31, 2026 (March 31, 2025: H Nil).
c) Appropriation to Reserves
i) Statutory Reserve
The Bank has made an appropriation of H 37.99 crores (March 31, 2025: H 28.74 crores) out of profits for the year ended March 31, 2026 to Statutory Reserve pursuant to the requirements of section 17(1) and section 11(2)(b)(ii) of Banking Regulation Act, 1949 and RBI guidelines dated September 23, 2000.
ii) Capital Reserve
During the year ended March 31, 2026, the Bank has been required to appropriate H 13.01 crores (March 31, 2025: H 4.24 crores) from profit and loss account to capital reserves being the profit from sale of investments under HTM category as per the RBI guidelines.
iii) Investment Fluctuation Reserve
During the year ended March 31, 2026, the Bank has transferred H 1.48 crores (March 31, 2025: H 7.05 crores) from Investment Fluctuation Reserve to Profit & Loss Account as per RBI guidelines.
d) Proposed dividend
The Board of Directors of the Bank at their meeting held on May 07, 2026, recommended the final dividend of H 1.50 (Rupee One and Fifty Paise) per Equity Share of face value of H 10 each fully paid up (i.e. 15% of face value) out of profit for the Financial Year ended March 31, 2026 (subject to approval of the Shareholders at the ensuing Annual General Meeting of the Bank and other requisite approvals, if any, in this regard) [March 31, 2025: H Nil].
ii) Qualitative information on Liquidity Coverage Ratio (LCR) is given below:
The objective of LCR is to ensure that the Bank maintains an adequate stock of unencumbered High Quality Liquid Assets (HQLA) that can be converted into cash to meet its liquidity needs for a 30-day period under a significantly severe liquidity stress scenario. At a minimum, the stock of liquid assets should enable the Bank to survive until day 30 of the stress scenario, by which time it is assumed that appropriate corrective actions can be taken.
The LCR is calculated by dividing the amount of High Quality Liquid unencumbered Assets (HQLA) by the expected net cash outflows over a stressed 30 day period as per the RBI Guidelines. Minimum LCR requirement for small finance banks is 100%.
HQLA comprises of cash in hand, excess CRR, excess SLR/Non SLR securities, maximum liquidity facility allowed by RBI under marginal standing facility (MSF) and Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR).
The Asset Liability Committee (ALCO) governs the Liquidity Risk management of the Bank. The liquidity profile of the Bank is monitored and measured by the Risk Management Department, which reviews liquidity under different business conditions and places the same before the ALCO.
The net cash outflows are calculated by applying RBI prescribed outflow factors to the various categories of liabilities (deposits, borrowings), as well as to undrawn commitments and other miscellaneous liabilities, partially offset by expected inflows from assets maturing within 30 days.
The average LCR for the quarter ended March 31, 2026 was at 129.78% as against 141.20% for the quarter ended March 31, 2025, and well above the present prescribed minimum requirement of 100%. The average HQLA for the quarter ended March 31, 2026 was H 3,449.72 crores, as against was H 2,793.35 crores for the quarter ended March 31, 2025.
C) Net stable funding Ratio (NSFR)
As per the RBI guideline vide circular RBI circular RBI/DOR/2025-26/194 DOR.LRG.No.113/13-10-002/2025-26 dated November 28, 2025 is required to maintain the NSFR on an ongoing basis.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. The above ratio should be equal to at least 100% on an ongoing basis.. The NSFR as on March 31, 2026 was at 155.74 % (March 31, 2025:159.15%).
The Bank has not sold or transferred securities to or from HTM category exceeding 5% of the book value of investments held in HTM category at the beginning of year ended March 31, 2026 and March 31, 2025 respectively. The 5% threshold referred to above does not include:
i) The one-time transfer of securities to/from HTM category with the approval of Board of Directors undertaken by banks at the beginning of the accounting year.
ii) Direct sales from HTM for bringing down SLR holdings in HTM category consequent to a downward revision in SLR requirements by RBI.
iii) Sales to the Reserve Bank of India under liquidity management operations of RBI like Open Market Operations (OMO) and the Government Securities Acquisition Programme (GSAP).
iv) Repurchase of Government Securities by Government of India from banks under buyback/switch operations.
v) Repurchase of State Development Loans by respective state governments under buyback/switch operations.
vi) Additional shifting of securities explicitly permitted by the Reserve Bank of India.
e) Reclassification between categories of investments: There has been no reclassification between categories of investments in financial year 2025-26. (FY 2024-25: Nil)
c) Overseas Assets, NPAs and Revenue
The Bank does not hold any overseas assets/NPA as at March 31, 2026 and no overseas operations were undertaken for the year ended March 31, 2026. Hence revenue from overseas operation is H Nil (March 31, 2025: H Nil).
d) Particulars of resolution plan and restructuring
The Bank does not have any account for resolution of stressed Assets loans (Revised framework) as per the RBI Circular RBI/DOR/2025-26/196 DOR.STR.REC.115/21.04.048/2025-26 dated 28th Novmber 2025 as on March 31, 2026 (March 31, 2025: H Nil)
e) Divergence in asset classification and provisioning
RBI vide its circular RBI/DOR/2025-26/198 DOR.ACC.REC.No.117/21.04.018/2025-26 dated November 28, 2025, has directed banks shall make suitable disclosures, if either or both of the following conditions are satisfied:
(a) the additional provisioning for non-performing assets (NPAs) assessed by the RBI as a part of its supervisory process exceeds 5 per cent of the reported profit before provisions and contingencies for the reference period, and/or
(b) the additional Gross NPAs identified by the RBI as a part of its supervisory process exceed 5% of the reported incremental Gross NPAs for the reference period.
There has been no divergence observed by the RBI for the Financial year 2025-26 in respect of the Bank’s asset classification and provisioning as per the extant prudential norms on income recognition asset classification and provisioning (IRACP) which require such disclosures.
f) Disclosure of transfer of loan exposures
Details of loans transferred/acquired during the year ended March 31, 2026 under the Reserve Bank of India (Small Finance Banks - Transfer and Distribution of Credit Risk) Directions, 2025 dated November 28, 2025 are given below:
i) Loans not in default:
a) During the year ended March 31, 2026, the Bank has not acquired any loans not in default through assignment of loans
g) Unhedged Foreign Currency Exposure
In accordance with the RBI guidelines on Banks’ exposures to entities with Unhedged Foreign Currency Exposure (‘UFCE’), the Bank has put in place a mechanism to seek information from its borrowers and to evaluate the currency induced credit risk. In the case of listed entities, the Bank obtains information relating to unhedged positions based on the latest available audited/reviewed financial statements; whilst in the case of unlisted/private companies, the Bank obtains the aforesaid information based on the latest available audited financial statements (not exceeding a financial year) so as to estimate the extent of likely loss and to provide for incremental capital or to recognise incremental provision in accordance with the aforesaid guidelines. Further, as per the above-mentioned guidelines, the Bank obtains audited and certified UFCE information from the statutory auditors of the borrowers, wherever feasible, on an annual basis. In the case of smaller entities i.e. entities with exposure to banking industry up to H 50 crore, the Bank recognises an incremental provision at 10 basis points on all such exposures.
In accordance with RBI guidelines, as at March 31, 2026 the Bank holds UFCE provisions of H 2.94 crores (March 31, 2025: H 4.21 crores) maintains capital of H 39.84 crore (March 31, 2025: H 85.32 crore) in respect of the unhedged foreign currency exposure of its customers.
9. Off balance sheet SPVs sponsored
There are no off balance sheet SPVs sponsored by the Bank, which are required to be consolidated as per accounting norms.
10. Transfers to Depositor Education and Awareness Fund (DEA Fund)
The Depositor Education and Awareness Fund Scheme, 2014 applies when amount to the credit of any account in India with any bank has not been operated upon for a period of ten years or any deposit or any amount is remaining unclaimed for more than ten years to be credited to the DEA Fund. However, ten years have not been elapsed since the commencement of operations of the Bank, the Bank is not required to transfer any sum to DEA Fund as on 31 March 2026 (March 31, 2025: H Nil).
12. Disclosure of penalties imposed by the Reserve Bank of India
During the year ended March 31, 2026, Penalty of H 0.02 Crores was imposed by RBI on July 23, 2025 for ‘SGL bouncing’ by the Reserve Bank of India. (March 31, 2025: H Nil).
13. Disclosures on remuneration A) Qualitative Disclosures
(a) Information relating to the composition and mandate of the Nomination and Remuneration Committee:
The Nomination and Remuneration Committee of the Board ("NRC”) is the main body overseeing remuneration of the Directors, Key Managerial Personnel ("KMPs”), and Senior Management Personnel ("SMPs”) of the Bank. As on March 31, 2026, the NRC had four (4) members of which three (3) are Independent Directors. The functions of the Committee include formulating criteria to determine independence of Directors, identifying persons for appointment as Directors on the Board of the Bank, devising a Policy on Board Diversity, formulating criteria for evaluation of the performance of the Board, its Committees and individual Directors, recommending remuneration of KMPs and SMPs, administering, monitoring and formulating detailed terms and conditions of the Employees’ Stock Option Scheme of the Bank, recommending to the Board Policy on Succession Planning for the Board and senior management and overseeing and reviewing the succession plans from time to time.
The Composition of NRC committee as on March 31, 2026 is as follows:
1. Mrs. Swati Datye, Independent Director, Chairperson
2. Mr. Arun Diaz, Independent Director
3. Mr. K P Nair, Independent Director
4. Mr. Ranjit Shah, Investor Director
External consultants whose advice has been sought, the body by which they were commissioned, and in what areas of the remuneration process
Not Applicable
Scope of the Bank’s remuneration policy (e.g. by regions, business lines), including the extent to which it is applicable to foreign subsidiaries and branches
(a) The Policy on appointment and remuneration of Directors, Key Managerial personnel and senior management employees was approved by the Board on January 23, 2017 and reviewed periodically. It was modified in October 2020 to exclude the remuneration aspects in view of new Compensation Policy being formulated and approved by the Board.
(b) The Bank’s new Compensation Policy (formulated in accordance with RBI Guidelines on Compensation of Whole Time Directors, Chief Executive Officers, Material Risk Takers and Risk Control & Compliance Staff), was approved by the Board in October 2020 and is annually reviewed.
(c) The Employee Policies Manual of the Bank was approved by the Board on January 23, 2017 and is reviewed periodically. It covers compensation policy for all other employees of the Bank.
Type of employees covered and number of such employees by the Compensation Policy and the Employee Policies Manual.
All permanent employees of the Bank are covered. The total number of permanent employees of the Bank at March 31, 2026 was 8,574.
(b) I nformation relating to the design and structure of remuneration processes of processes and the key features and objectives of remuneration policy:
Key features and objectives of Compensation policy: The Bank, under the guidance of the NRC and the Board, follows remuneration practices that are intended to drive meritocracy and performance based on a prudent risk management framework and in line with the RBI guidelines.The NRC has oversight over compensation to senior management personnel and also provides overall guidance to the compensation paid to other employees. While the Bank seeks to achieve a mix of fixed and variable (cash and non-cash) remuneration for employees covered under the new Compensation Policy, for all other employees, it has predominantly a fixed remuneration structure with no guaranteed bonuses. Also, the remuneration of employees in financial and risk control functions is not linked to business outcomes and solely depends on their performance. Further, the Bank has an Employee Stock Option Scheme for eligible employees aimed at aligning compensation to long term performance through stock options that vest over a period of time.
Effective governance of compensation: The NRC has oversight over compensation to senior management personnel and also provides overall guidance to the compensation paid to other employees.
Alignment of compensation philosophy with prudent risk taking: While the Bank seeks to achieve a mix of fixed and variable (cash and non-cash) remuneration for employees covered under the new Compensation Policy, for all other employees, it has predominantly a fixed remuneration structure with no guaranteed bonuses. Also, the remuneration of employees in financial and risk control functions is not linked to business outcomes and solely depends on their performance. Further, the Bank has an Employee Stock Option Scheme for eligible employees aimed at aligning compensation to long term performance through stock options that vest over a period of time.
Whether the remuneration committee reviewed the firm’s remuneration policy during the past year, and if so, an overview of any changes that were made: Yes; the Compensation Policy was modified and approved during the period. The keys changes included roles identified for Material Risk Takers and Risk Control Staff and change in deferment period for cash variable.
Discussion of how the Bank ensures that risk and compliance employees are remunerated independently of the businesses they oversee: The remuneration of employees in control functions such as Risk and Compliance depends solely on their performance and is not linked to any business outcomes.
(c) Description of the ways in which current and future risks are taken into account in the remuneration processes including the nature and type of the key measures used to take account of these risks:
Overview of the key risks that the Bank takes into account when implementing remuneration measures: The
Board approves the overall risk management policy including risk framework, limits, etc. The Bank conducts all its business activities within this framework. The NRC while assessing the performance of the Bank and senior management, shall consider adherence to the policies and accordingly make its recommendations to the Board. The evaluation process shall incorporate both qualitative and quantitative aspects including asset quality, provisioning, increase in stable funding sources, refinement/improvement of the risk management framework, effective management of stakeholder relationships and mentoring key members of the top and senior management. In order to ensure alignment of remuneration with prudent practices, the NRC takes into account adherence to the risk framework in addition to business performance.
Overview of the nature and type of key measures used to take account of these risks, including risk difficult to measure: The evaluation process shall incorporate both qualitative and quantitative aspects including asset quality, provisioning, increase in stable funding sources, refinement/improvement of the risk management framework, effective management of stakeholder relationships and mentoring key members of the top and senior management.
Discussion of the ways in which these measures affect remuneration: In order to ensure alignment of remuneration with prudent practices, the NRC takes into account adherence to the risk framework in addition to business performance.
Discussion of how the nature and type of these measures have changed over the past year and reasons for the changes, as well as the impact of changes on remuneration: With the introduction of the new
Compensation Policy, the compensation structure of employees covered therein has undergone a change resulting in an increase in overall remuneration.
(d) Description of the ways in which the bank seeks to link performance during a performance measurement period with levels of remuneration:
Overview of main performance metrics for the Bank, top level business lines and individuals: The main performance metrics include profitability, business growth, asset quality, compliance, and customer service. The assessment of employees shall be based on their performance with respect to their result areas and shall include the metrics mentioned above.
Discussion of how amounts of individual remuneration are linked to the Bank-wide and individual performance: The assessment of employees shall be based on their performance with respect to their result areas and shall include the metrics mentioned above.
Discussion of the measures the Bank will in general implement to adjust remuneration in the event that performance metrics are weak, including the Bank’s criteria for determining ‘weak’ performance metrics: In
case such an event should occur, the Board/NRC shall review and provide overall guidance on the corrective measures to be taken.
(e) A discussion of the bank’s policy on deferral and vesting of variable remuneration and a discussion of the bank’s policy and criteria for adjusting deferred remuneration before vesting and after vesting:
Discussion of the Bank’s policy on deferral and vesting of variable remuneration and, if the fraction of variable remuneration that is deferred differs across employees or groups of employees, a description of the factors that determine the fraction and their relative importance: Under the new Compensation Policy, the cash variable component will be deferred over 2-3 years and the non-cash variable component (employee stock options) will be deferred over the vesting period as per the extant ESOP Scheme. In case of other employees, where cash variable is not applicable and in case of employees being granted ESOPs, they will be deferred over the vesting period as per the extant ESOP Scheme. In the case of employees covered under the Compensation Policy, all deferred variable compensation would be subjected to malus/clawback arrangements as provided in the RBI guidelines and this would be administered by the NRC.
Discussion of the Bank’s policy and criteria for adjusting deferred remuneration before vesting and (if permitted by national law) after vesting through claw back arrangements: In the case of employees covered under the Compensation Policy, all deferred variable compensation would be subjected to malus/clawback arrangements as provided in the RBI guidelines and this would be administered by the NRC.
(f) Description of the different forms of variable remuneration that the Bank utilises and the rationale for using these different forms:
As per the Compensation Policy, the variable remuneration will comprise of cash and non-cash components.
Overview of the forms of variable remuneration offered. A discussion of the use of different forms of variable remuneration and, if the mix of different forms of variable remuneration differs across employees or group of employees, a description of the factors that determine the mix and their relative importance: As per the
new Compensation Policy, only the employees falling under the categories of Material Risk Takers (MRTs), Risk Control & Compliance Staff (RCS) and All Other Employees (AOEs) and who do not earn performance linked
f) . Implementation of IFRS converged Indian Accounting Standards (Ind AS)
The banks are advised to follow the Indian Accounting Standards as notified under the Companies (Indian Accounting Standards) Rules, 2015, subject to any guideline or direction issued by the the Reserve Bank in this regard. The Banks in India currently prepare their financial statements as per the guidelines issued by the RBI, the Accounting Standards notified under section 133 of the Companies Act, 2013 and generally accepted accounting principles in India (Indian GAAP). In January 2016, the Ministry of Corporate Affairs issued the roadmap for implementation of new Indian Accounting Standards (Ind AS), which were based on convergence with the International Financial Reporting Standards (IFRS), for scheduled commercial banks, insurance companies and non-banking financial companies (NBFCs). In March 2019, RBI deferred the implementation of Ind AS for banks till further notice as the recommended legislative amendments were under consideration of Government of India. The Bank had undertaken preliminary diagnostic analysis of the GAAP differences between Indian GAAP vis-a-vis Ind AS and shall proceed for ensuring the compliance as per applicable requirements and directions in this regard.
g) Payment of DICGC Insurance Premium
Deposit insurance premium, as applicable, was paid to Deposit Insurance and Credit Guarantee Corporation (DICGC) within the prescribed timelines for current year and previous year.
h) Disclosure of Letters of Comfort (LoCs) issued by banks
The Bank has not issued letter of comfort during the year ended March 31, 2026 (March 31, 2025: H Nil).
i) Portfolio-level information on the use of funds raised from green deposits
During the year 2025-26, the Bank has not raised Green deposits and hence the Portfolio level information on use of funds and reporting on allocation of proceeds of Green deposits to green activities/projects as mentioned in circular RBI/2023-24/14 DOR.SFG.REC.10/30.01.021/2023-24 dated April 11, 2023 is not applicable (March 31, 2025: H Nil).
15. Employees Stock Option Scheme
The Bank has share-based payment schemes for it’s employees. Schemes in operation Employee Stock Option Scheme 2016 and Employee Stock Option Scheme 2019. During the year-ended March 31, 2026, the Bank has issued 6,15,357 options (March 31, 2025: 8,17,740) under the Employee Stock Option Scheme 2019.
The Expected life of the stock option is based on historical data and current expectation and is not necessarily indicative of the pattern that may occur.
The expected volatility reflects the assumption that the historical volatility of a comparable listed entity for 6 years period ended on the date of the grant is indication of future trends which may not necessarily be the actual outcome.
16. Segment Reporting
Business segments have been identified and reported taking into account, the customer profile, the nature of products and services, the differing risks and returns, the organisation structure and the guidelines prescribed by the RBI. The Bank operates in the following segments:
a) Treasury
Treasury performs liquidity management activities for various business segments. Transfer pricing is based on internally approved yield curve or at an agreed transfer rate on the funding provided by treasury to another business segment.
b) Retail banking
The retail banking segment serves retail customers through a branch network. Exposures are classified under retail banking taking into account the status of the borrower (orientation criterion), the nature of product, granularity of the exposure and the quantum thereof.
Revenues of the retail banking segment are primarily derived from interest and fees earned on retail loans, interest on deposits placed as collateral with the Bank. Expenses of this segment primarily comprise interest expense on borrowings, deposits, infrastructure and premises expenses for operating the branch network, personnel costs and other direct overheads.
c) Wholesale/Corporate banking
Wholesale banking includes all advances to borrowers, which are not included under Retail banking. Revenues of the wholesale banking segment consist of interest and fees on loans made to customers.
d) Other Banking Operation
Other Banking includes other items not attributable to any particular business segment. This segment includes income from para banking activities such as distribution of third party product and the associated costs.
m) Investor education and protection fund
There were no amounts which were required to be transferred to the Investor education and protection fund by the Bank during the year ended March 31, 2026 (March 31, 2025: H Nil).
n) Disclosure on the scheme for sustainable structuring of stressed assets
The Bank does not have any account under the Scheme for Sustainable Structuring of Stressed Assets (S4A) as on March 31, 2026 (March 31, 2025: H Nil).
o) Disclosure on flexible structuring of existing loans
The Bank does not have any account under the Scheme Flexible Structuring of Existing Loans as on March 31, 2026 (March 31, 2025: H Nil).
p) Disclosure on strategic debt restructuring (SDR) scheme
The Bank does not have any account under the strategic debt restructuring (SDR) scheme as on March 31, 2026 (March 31, 2025: H Nil).
q) Disclosure on change in ownership of project under implementation
The Bank does not have any account which are currently under the scheme of Change in Ownership of Projects Under Implementation as on March 31, 2026 (March 31, 2025: H Nil).
r) Disclosure on change in ownership outside SDR scheme
The Bank does not have any account which are currently under the scheme of Change in Ownership Outside SDR as on March 31, 2026 (March 31, 2025: H Nil).
s) The Code on Social Security, 2020
On November 21, 2025, the Government of India notified four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020, collectively referred to as the ‘New Labour Codes’, consolidating 29 existing labour laws. The Ministry of Labour & Employment has published draft Central Rules and FAQs on December 30, 2025, to facilitate assessment of the financial impact arising from these regulatory changes. Accordingly, the Bank has recognised an estimated incremental impact of H 18.13 lakhs under ‘Employees cost’ in the Profit and Loss Account during the year ended 31st March 2026. The Bank continues to monitor developments relating to the implementation of the New Labour Codes and will review its estimates on ongoing basis.
t) No proceedings have been initiated on or are pending against the Bank for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
u) The Bank has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
v) The Bank, as part of its normal banking business, that is conducted ensuring adherence to all regulatory requirements, grants loans and advances, makes investments and accepts deposits and borrowings from its customer, other entities and persons.
(i) Other than the transactions described above which are carried out in the normal course of business, the Bank has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Bank (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(ii) The Bank has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Bank shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
w) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
x) Audit Trail
The Bank has used certain accounting software(s) for maintaining its books of account, which has a feature of recording the audit trail (edit log) facility. Further, to the extent enabled, the audit trail feature has been operated for the relevant transactions recorded in the accounting software(s). Also, we did not come across any instance of the audit trail feature being tampered with. Additionally, the audit trail feature of prior year(s) has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded in respective years. The Bank has established and maintained an adequate internal control framework and based on its assessment, believes that this was effective as of March 31, 2026
y) Comparatives
Figures for the previous year have been regrouped wherever necessary to conform with the current year presentation.
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