Recurring income includes (i) commission, exchange and brokerage; (ii) profit on sale of investments (net); (iii) profit/ (loss)
on sale of fixed assets (net); and (iv) miscellaneous income.

Expenditure

Total expenditure increased by 46.64% from % 5,066.31 million in Fiscal 2019 to = 7,429.40 million in Fiscal 2020 on account
of an increase in interest expensed, operating expenses and provisions and contingencies.

Interest Expended

Interest expended increased by 45.35% from % 1,897.33 million in Fiscal 2019 to = 2,757.80 million in Fiscal 2020, primarily
due to a significant increase in interest on deposits from = 829.14 million in Fiscal 2019 to 2 1,818.30 million in Fiscal 2020
on account of increase in deposits. Deposits increased by 78.78% from 2 15,934.25 million in Fiscal 2019 to = 28,487.15 million
in Fiscal 2020 on account of increase in Banking Outlets and addition of new customers. This was partially offset by a decrease
in interest on RBI/ inter-bank borrowings which decreased by 65.94% from 2 163.16 million in Fiscal 2019 to = 55.57 million
on account of decrease in inter bank borrowings and borrowings from RBI. Other interest also marginally decreased by 2.33%
from = 905.03 million in Fiscal 2019 to = 883.93 million in Fiscal 2020 due to repayment of certain grandfathered borrowings,
which refer to the borrowings undertaken prior to conversion as an SFB.

Operating Expenses

Operating expenses increased by 42.66% from % 1,907.43 million in Fiscal 2019 to 2,721.21 million in Fiscal 2020 primarily
due to an increase in payments to and provisions for employees from % 1,266.73 million in Fiscal 2019 to = 1,713.65 million in
Fiscal 2020 on account of increase in number of employees from 3,931 employees as of March 31, 2019 to 4,695 employees
as of March 31, 2020. Rent, taxes and lighting increased by 78.79% from 2 124.30 million in Fiscal 2019 to = 222.23 million
in Fiscal 2020 primarily due to increase in the number of Banking Outlets from 382 as of March 31, 2019 to 477 as March 31,
2020. There was also an increase in advertisement and publicity expenses by 91.00% from 2 24.00 million in Fiscal 2019 to =
45.84 million in Fiscal 2020 primarily due to increase in brand awareness campaigns. Depreciation on the Bank’s property
increased by 74.90% from % 55.94 million in Fiscal 2019 to = 97.84 million in Fiscal 2020. Repairs and maintenance expenses
also increased by 32.89% from % 170.49 million in Fiscal 2019 to = 226.56 million in Fiscal 2020 due to increase in expenditure
towards our core banking solutions, and upgradation of information technology. In addition, other expenditure, primarily
comprising professional fees, increased significantly by 69.25% from % 167.03 million in Fiscal 2019 to = 282.70 million in
Fiscal 2020, on account of increase in payment to outsourced vendors, including, payments for increased volume, increase in
payment to credit bureaus, fees for white label ATMs and commission to business correspondents.

Provisions and Contingencies

Provisions and contingencies increased by 54.60% from % 1,261.55 million in Fiscal 2019 to = 1,950.39 million in Fiscal 2020,
primarily due to a significant increase in other provisions from = 292.16 million in Fiscal 2019 to % 872.62 million in Fiscal
2020. Other provisions primarily increased on account of contingency provision created due to the uncertain and volatile market
environment as a result of COVID-19 and additional provisions created in accordance with the minimum provision required by
the RBI guidelines relating to COVID-19 Regulatory Package dated March 27, 2020 and April 17, 2020. For further
information, see “Financial Statements — Annexure 22 — Note 15” on page 284. Provision for non-performing assets/ write-offs
(net) also increased by 63.50% from 2 76.46 million in Fiscal 2019 to = 125.01 million in Fiscal 2020 as a result of increase in
slippages in our inclusive finance (JLG) portfolio on account of increase in natural calamities and increase in slippages in the
commercial vehicle portfolio and unsecured SME/MSME portfolio due to increase in market delinquency and deteriorating
economic environment. Subsequently, our Bank has also reduced focus on unsecured MSME portfolio in Fiscal 2020. In
addition, write-off on advances increased by 42.68% from % 335.62 million in Fiscal 2019 to = 478.87 million in Fiscal 2020
predominantly in the unsecured SME/MSME portfolio and inclusive finance (JLG) portfolio. Further, these increases were
partially offset by a decrease in income tax by 17.48% from % 523.26 million in Fiscal 2019 to = 431.78 million in Fiscal 2020
as a result of lower tax rate as per the Taxation Laws (Amendment) Ordinance, 2019, issued by the Ministry of Finance on
September 20, 2019.

Profit

For the reasons discussed above, net profit for the year was = 1,111.98 million in Fiscal 2020 as compared % 903.98 million in
Fiscal 2019.

FISCAL 2019 COMPARED TO FISCAL 2018

The following table sets forth certain information with respect to our results of operations for Fiscal 2018 and 2019:

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