DIVIDEND POLICY

Our Bank has no formal dividend policy. The declaration and payment of dividends will be recommended by our Board
and approved by the Shareholders, at their discretion, subject to the provisions of the Banking Regulation Act and
regulations made thereunder, the RBI Act and the regulations and guidelines made thereunder, the Articles of Association
and other applicable laws, including the Companies Act. The dividend, if any, will depend on a number of factors,
including but not limited to, the future expansion plans and capital requirements, profit earned during the Fiscal, past
dividend trends, liquidity and applicable taxes payable by our Bank, optimal capital adequacy ratio subject to regulatory
minimum of total and tier I capital adequacy ratio, additional regulatory requirements of capital in near future cost of
raising funds from alternate sources, reinvestment opportunities and any other applicable criteria from the legal or
regulatory framework applicable to our Bank. In addition, our ability to pay dividends may be impacted by a number of
factors, including restrictive covenants under loan or financing arrangements our Bank is currently availing of or may
enter into to finance our fund requirements for our business activities.

As per the Articles of Association, our Bank may pay dividend by electronic mode or by cheque or warrant sent through
post, directed to the registered address of the holder or, in the case of joint holders, to the registered address of that of the
joint holders who is first named on the register of members, or to such person and to such address as the holder or joint
holders may in writing direct. Every such cheque or warrant shall be made payable to the order of the person to whom it
is sent.

Our Bank has not declared any dividends for Fiscals 2020, 2019 and 2018. Further, our Bank has not declared any

dividend from March 31, 2020 till the date of this Prospectus. In terms of the Banking Regulation Act, a banking company
is permitted to declare dividends only upon all of its capitalised expenses being written off.

210
