declaration of wilful defaulters as stipulated in the RBI guidelines. Our recovery processes including follow-ups and
collections are categorized based on the extent of delay in making repayments, i.e. repayments overdue by 30 days, 60
days and 90 days are each managed through different processes to ensure that delinquencies do not exceed the thresholds
set out internally.

Secured Business Loans

We commenced providing secured business loans in Fiscal 2016. Our target customer profile for this segment has evolved
over the last three years based on our experience and understanding of the various customer segments we have interacted
with. Initially, the customer segment comprised customers without adequate documentation and credit histories. We then
focused on developing our internal credit team which led to a shift in our target customers for these loans, and in Fiscal
2019, typical customers for these loans comprised individuals with adequate documentation and acceptable credit history.
This was supported by our credit team for improved credit analysis prior to onboarding. We continue to refine the asset
quality of loans advanced under this segment by monitoring compliance with end-use restrictions.

As of December 31, 2020, Gross Loan Portfolio in this segment was % 1,420.32 million, representing 3.63% of our total
Gross Loan Portfolio.

According to our revised credit policies, the secured business loans were offered at ticket sizes ranging between % 207,000
and 2 30,000,000, for a tenure between three years and 15 years during the nine months ended December 31, 2020. These
loans are offered at interest rates between 11.25% and 18.00% per annum.

In Fiscal 2020 and the nine months ended December 31, 2020, the average ticket size of these loans was 2 2.47 million
and 1.88 million, and they were disbursed for an average tenure of 115.46 months and 119.47 months, respectively. The
average yield for Fiscal 2020 and the nine months ended December 31, 2020 was 14.82% and 14.02%, respectively. In
Fiscal 2018, 2019 and 2020 and the nine months ended December 31, 2020, disbursements under this segment were =
336.62 million, = 404.15 million, = 550.75 million and % 420.33 million, respectively.

As of December 31, 2020, the Gross NPAs for this product segment were % 61.43 million, representing 4.32 % of our
Gross Advances in this product segment primarily in portfolio created under customer segment with inadequate
documentation or credit history. Portfolio created under revised guidelines has been performing significantly better than
older portfolio.

The number of customers of our secured business loans portfolio as of March 31, 2018, 2019 and 2020, and as of
December 31, 2020, was 777, 810, 913 and 1,019 respectively.

Customer Sourcing and Credit Assessment

We source customers for this loan segment through two channels, the direct sales model and referral model. In the direct
sales model, our relationship managers conduct field activities to engage with potential customers for onboarding. Under
the referral model, we leverage our Banking Outlets to source or refer customers near our Banking Outlets.

We typically assess eligibility of these customers based on parameters including cash flows, viability of end use, past
banking conduct and repayment track-record. We focus on determining the stability of their cash flows and repayment
behavior to assess the leverage and the purpose of funds being borrowed. We also assess the actual deployment of funds
made by the customer post disbursement.

Collection

We collect repayments under our secured business loans segment in the form of cash, post-dated cheques, demand drafts
and through various online portals. We also monitor our collections branch-wise/ location wise on a daily basis.
Collections are carried out through personnel engaged by our Bank as well as through approved external vendors, once
the customer fails to make payments by the due date. Our collection processes are set out in our policies and procedures
that are in compliance with RBI guidelines. For instance, we issue dunning/ collection notices under Section 138 of the
Negotiable Instruments Act, 1881; we initiate proceedings under the SARFAESI Act, 2002; we are also entitled to
commence arbitration proceedings for attachment of property, and attachment and disposal followed by declaration of
wilful defaulters as stipulated in the RBI guidelines. Our recovery processes including follow-ups and collections are
categorized based on the extent of delay in making repayments, i.e. repayments overdue by 30 days, 60 days and 90 days
are each managed through different processes to ensure that delinquencies do not exceed the thresholds set out internally.

Micro Business Loans (T-Nagar)

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