Over the years, our Bank has been able to diversify its product portfolio to ensure that the proportion of net unsecured
portfolio has reduced from 94.81% of our net advances in Fiscal 2018 to 77.49% in Fiscal 2020 and further to 74.59% in
the nine months ended December 31, 2020. We commenced operations as a microfinance institution in 2009, and
following our conversion to a SFB, we have been able to diversify into other products which broadly include commercial
vehicle loans, affordable home loans, micro business loans, secured and unsecured business loans to MSME/SME and
corporates and financial intermediary group loans. Our products cater to customer segments across the board. For
instance, we offer inclusive finance loans and micro business loans for customers that are not a part of the formal banking
infrastructure and undertake small businesses and individuals involved in agricultural allied activities, while we offer
affordable housing loans to customers belonging to the middle and low income segment, secured business loans to SME/
MSME/ corporates, commercial vehicle loans to fleet owners and retail customers and unsecured business loans to low
and middle class individuals, self-employed individuals and micro and small enterprises. We also provide commercial
vehicle loans, institutional credit to NBFCs as well as various liability products to self-employed individuals, enterprises,
corporates, partnership firms, banks etc. and mid-sized enterprises. In addition, we offer funds transfer facilities and
distribute various general and life insurance products and mutual fund products.

As of December 31, 2020, commercial vehicle loans, affordable housing loans, micro business loans, unsecured
MSME/SME loans, secured business loans, financial intermediary group loans and other loans represented 9.42%, 6.30%,
0.99%, 1.02%, 3.63%, 4.78%, and 3.51%, respectively of our Gross Loan Portfolio. Inclusive finance loans constitute a
significant portion of our Gross Loan Portfolio and as of March 31, 2018, 2019 and 2020 and as of December 31, 2020,
these loans represented 89.89%, 81.44%, 75.85% and 70.35%, respectively, of our Gross Loan Portfolio as of such dates.
We have over the years grown our secured net advances and as of March 31, 2018, 2019 and 2020 and as of December
31, 2020, 5.19%, 15.68%, 22.51% and 25.41 % of our net advances were secured. We have leveraged our Banking Outlet
network that comprised 554 Banking Outlets across 13 states and union territories, as of December 31, 2020, to grow our
asset portfolio. Our portfolio is focused in states with high GDP growth rates such as Karnataka and Gujarat and states
such as Maharashtra, Tamil Nadu and Odisha with average GDP growth (Source: CRISIL Report).

Fast evolving granular deposit franchise

We have witnessed rapid growth in deposits between Fiscal 2018 and Fiscal 2020. Our deposit base has grown at a CAGR
of 94.95% from 2 7,495.22 million as of March 31, 2018 to = 28,487.15 million as of March 31, 2020 and was 2 33,438.40
million as of December 31, 2020. As of December 31, 2020, our deposit base represented 69.22% of our overall funding
profile. We are among the SFBs with the highest deposit growth rate in Fiscal 2020 (Source: CRISIL Report). We offer
a variety of demand and time deposits and other services through which our customers can realize their savings goals.
We believe that our focus on productivity, better customer experience and customer acquisition along with expanding our
operations has led to significant growth in our deposits. Our deposit products include a range of saving accounts, salary
accounts, current accounts, recurring and fixed deposits. We also offer services such as bill pay, UPI based money
transfer, safe deposit locker facilities for our customers. We offer debit cards to our customers and also make banking
services available through our mobile banking application and internet banking platform. Our liability products are
targeted primarily at retail customers and include senior citizens, upper middle-class individuals, self-employed and
salaried individuals and HNIs.

Our retail deposit base has grown at a CAGR of 124.07% from % 3,088.90 million as of March 31, 2018 to % 15,508.89
million as of March 31, 2020 and was % 24,210.69 million as of December 31, 2020, while our ratio of our retail deposits
to total deposits as of March 31, 2018, 2019 and 2020 and as of December 31, 2020 was 41.21%, 42.91%, 54.44% and
72.40 %, respectively. The number of our CASA accounts and term deposit accounts have grown from 9,295 and 7,645
as of March 31, 2018, respectively, to 65,676 and 63,399 as of March 31, 2020, respectively and were 3,40,588 and
75,018 as of December 31, 2020, respectively. We believe that we have been able to strengthen our liability franchise
while focusing on growing our retail deposit base in a gradual but sustainable manner thereby providing us with a stable,
low-cost source of funding. As a result, our Cost of Funds has been 10.71%, 8.99%, 8.55% and 8.05% (annualized) /
6.04% (unannualized), in Fiscal 2018, 2019 and 2020 and in the nine months ended December 31, 2020, respectively.
Our average savings account, current account and term deposit account balance excluding bulk deposits balance was =
11,813.02, 88,707.93 and % 263,638.21, respectively, as of December 31, 2020. Our deposit portfolio is primarily sourced
from Maharashtra and Tamil Nadu with each state contributing to 49.21% and 23.57%, respectively, of our total deposit
base, as of December 31, 2020. Given that a significant proportion of our Banking Outlets are located in such states we
have been able to leverage our understanding and experience in these states as a micro finance NBFC to grow our deposit
base. We have been able to leverage the experience and network of our BCs to grow our retail liability portfolio and their
expertise to expand into newer geographies. As of December 31, 2020, we have four BC led Banking Outlets that had a
deposit balance of = 2,090.69 million.

Leveraging emerging technologies to enhance digital footprint

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