We will also continue to penetrate further into existing geographies that have significant growth opportunities and also
into newer states to mitigate risk. All such decisions would be based on data analytics of the particular region in terms of
growth, customer behaviour and delinquency. Our expansion also caters to our risk management for Banking Outlets with
higher advances per branch that can be split into two or more branches to take care of collection and potential growth in
nearby regions.

Our engagement with BCs will allow us to penetrate further into the geographies where we currently operate. We intend
to leverage the experience of BCs to manage certain Banking Outlets in rural areas and also enter into arrangements with
corporate BCs to grow our asset portfolio in the states we operate. We believe that our engagement with BCs results in
operational and cost efficiencies for our operations.

While we will selectively open additional Banking Outlets and expand our BC network, we also intend to strengthen our
alternate delivery channels such as our ATM, mobile and internet banking and increase their adoption by our customers.
We will evaluate the offerings at our Banking Outlets to customize our products to the needs and demands of our
customers in the region in which our Banking Outlets are located and correspondingly update existing operations and
resources utilized in a territory.

Recent Development — Effects of the COVID-19 Pandemic on our Business and Operations
Background

In late 2019, the COVID-19 pandemic emerged and by March 11, 2020 was declared a global pandemic by the World
Health Organization. Governments and municipalities around the world instituted measures in an effort to control the
spread of COVID-19, including quarantines, shelter-in-place orders, school closings, travel restrictions, and closure of
non-essential businesses. The COVID-19 pandemic has had, and continues to have, a significant impact on the Indian
economy and the communities in which we operate. While the pandemic's effect on the macroeconomic environment has
yet to be fully determined and could continue for months or years, we expect that the pandemic and governmental
programs created as a response to the pandemic, will affect the core aspects of our business.

Impact on our Bank’s Operations

With effect from March 24, 2020, in compliance with the lockdown orders announced by the Government of India, we
temporarily closed certain of our Banking Outlets and substantially all of our employees were working remotely.
Additionally, many of our customers, service providers and business correspondents/ direct selling agents temporarily
ceased operating their respective enterprises. Although the nation-wide lockdown was lifted on June 1, 2020, restrictions
on non-essential activities and travel were imposed until August 31, 2020 in multiple states across specific districts that
were witnessing a spike in COVID-19 cases. On September 1, 2020, the Government of India allowed states to resume
all activities and function normally, while continuing with restrictions only in certain containment zones.

Action

¢ — Since our operations were deemed to be an ‘essential service’, most of our Banking Outlets and ATMs were
operating during the nation-wide lockdown (i.e., between March 25, 2020 and May 31, 2020).

¢ Our Bank implemented a business continuity plan, which ensured that critical areas continue to operate smoothly
and separate task force were formed to coordinate with our employees in the field and also for execution on the
ground level. We believe that this ensured that minimum staff were present in the workplace in line with
government guidelines. Where necessary, we have also ensured secondary back-up resources where primary
resources were faced with technical or other issues.

e Employees working from home were provided with remote access.

e As of December 31, 2020, all of our Banking Outlets are operating. We continue to ensure availability of
personal protective equipment such as sanitizers, masks, soaps and dry foods and essential items at the Banking
Outlets for use by employees.

e Our human resources team has commenced daily communication activities and online training courses and we
conduct daily team meetings across all businesses and functions through virtual means.

e In terms of connecting with customers, we have been able to connect with a majority of our customers through
various channels of communication including through phone calls and text messages.

 

The measures adopted have been successful in ensuring business continuity and none of our critical functions suffered
any major disruption during the period between March 25, 2020 and May 31, 2020. However, due to the nation-wide
lockdown, collection and disbursement activities were halted during lock-down period and gradually commenced from
June 2020.

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