In Fiscal 2020 and the nine months ended December 31, 2020, the average ticket size of these loans disbursed was =
80.95 million and = 130 million, and they were disbursed for an average tenure of 27.91 months and 31.00 months. The
average yield for Fiscal 2020 and the nine months ended December 31, 2020 was 12.46% and 11.48%. In Fiscal 2018,
2019 and 2020 and the nine months ended December 31, 2020, disbursements under this segment were = 92.50 million,
% 565.00 million, = 890.43 million and 2 1,430.00 million, respectively.

As of December 31, 2020, we did not record any NPAs for this product segment.

The number of financial intermediary groups we have advanced loans to as of March 31, 2018, 2019 and 2020 and as of
December 31, 2020, was 4, 13, 17 and 20, respectively.

Set forth below is certain information on FIG loans advanced:

 

 

 

 

 

 

NBFC activity Gross Loan Portfolio as of December 31, 2020
‘Amount @ million) (As a % of Gross Loan Portfolio -FIG)
Microfinance Institutions 513.03 1.31%
NBFCs 1,298.04 3.32%
HECs 55.88 0.14%
Total 1,866.96 4.78%

 

 

 

 

 

Customer Sourcing and Credit Assessment

We source FIG customers through internal referrals, existing relationships in the industry and industry
conferences/seminars. The team undertakes a preliminary assessment based on general and publicly available sectoral
information such as lending model, business model, credit ratings, size and vintage of the company, reputation of the
borrower, and other available information including pricing expectation, or geographical presence.

Credit assessment for these loans typically involves an assessment of management quality including the promoters, board
and their background, their experience and reputation in the line of business. We also analyze the potential borrower’s
audited financial statements, and evaluate the balance sheet strength in terms of AUM, debt and type of debt raised,
number of lenders. For assessing the asset quality we analyze their NPAs and the PAR movement of their portfolio. We
review the financial statements and business model to establish key covenants of underwriting including ability to pay
and quality of earnings. We also assess liquidity positions through the ALM, capital structure, lender profile, repayment
track-record, ability to raise funds and growth plans. To ensure the borrower has adequate capital for growth and ability
to absorb any unforeseen events in business, the capital adequacy ratio is also monitored. The commercials are determined
based on a risk-based pricing model by considering the above factors.

Collection

All loans to FIGs are secured against hypothecation of book debts and/ or receivables and we create a charge on the book
debts and/ or receivables hypothecated to us with the Registrar of Companies and CERSAI.

Collection is handled by our relationship managers, and if a customer fails to pay on the due date, the relationship manager
and/ or head FIG engages with the customer. If the account is overdue by more than 60 days, the account is handed over
to the collections team.

Weare entitled to initiate issue of dunning/ collection notices under Section 138 of the Negotiable Instruments Act, 1881;
commence arbitration proceedings for attachment of property if identified, and attachment and disposal followed by
declaration of wilful defaulters as stipulated in the RBI guidelines. We are also entitled to take charge of book debts
and/or receivables hypothecated to us for recovery of our dues. Our recovery processes include 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.

Others
These include overdraft facilities and staff loans.
Overdraft facilities: Extended to individuals, proprietorships, private limited companies that have open fixed deposits

with us for meeting their short-term liquidity requirements. Overdraft limit is renewed annually unless specified
otherwise. Overdraft facilities are offered at interest spread of up-to 2.00% above fixed deposit rates.

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