We commenced providing micro business loans in Fiscal 2018. We provide these unsecured loans to self-employed
individuals operating small enterprises, typically in urban and semi-urban locations. These small business loans are
advanced to individuals belonging to low income groups engaged in business activities that do not maintain formal records
for credit evaluation. Customers that typically comprise this product segment include small localized retail stores,
stationery shops, medical shop, garment shops, and other small scale manufacturing units. We typically extend these
loans to our existing group loan customers for working capital or capital investment requirements for existing businesses.

As of December 31, 2020, Gross Loan Portfolio in this segment was % 386.72 million, representing 0.99 % of our total
Gross Loan Portfolio.

We provide these micro business loans with ticket sizes ranging between = 100,000 and % 500,000. The repayment tenure
for such loans is between 12 months and three years during in the nine months ended December 31, 2020. These loans
are offered at interest rates between 22.00% and 25.00% per annum.

In Fiscal 2020 and the nine months ended December 31, 2020, the average ticket size of these loans was 2 0.10 million
and 2 0.20 million, respectively, and they were disbursed for an average tenure of 23.15 months and 24.51 months. The
average yield for Fiscal 2020 and the nine months ended December 31, 2020 was 23.57% and 23.01% (annualized). In
Fiscal 2018, 2019 and 2020 and the nine months ended December 31, 2020, disbursements under this segment were =
64.89 million, = 282.54 million, = 378.23 million and % 58.41 million, respectively.

As of December 31, 2020, the Gross NPAs for this product segment were = 18.32 million, representing 4.68% of our
Gross Advances in this product segment.

The number of customers of our micro business loans (T-Nagar) portfolio as of March 31, 2018, 2019 and 2020 and as
of December 31, 2020, was 604, 3,453, 6,270 and 5,883 respectively.

Customer Sourcing and Credit Assessment

We source customers through our sales officer by carrying out personal visits to potential customers. We also arrange
trade fares such as loan ‘mela’, participating in various seminars organized for MSMEs. We are also in the process of
entering into partnerships with fintech companies to generate leads. Other modes include digital payment channels,
directories in traders’ associations, and referrals from existing customers.

Collection

Collection Cycle: We collect repayments primarily in the form of online portals such NACH and through post-dated
cheques. We also monitor our collections location wise on a daily basis. Collections are carried out through personnel
engaged by our Bank as well as through approved external vendors.

Collection Process: The collection teams receive a demand list indicating mode of payment, at the beginning of every
month. These payments are then collected in cash or through various digital modes and are monitored on a daily basis.

Legal Process: Reminder notices are issued to customers who have failed to make timely repayments, i.e. the first demand
notice is sent to customers whose payments are over 30 days overdue, and finally a recall notice is issued where payments
are more than 60 days overdue. Legal cases are initiated after the 60 day period and are in addition to other collection
actions being carried out, i.e. tele-calling, field visits, settlement efforts. Legal actions are initiated based on the type of
default, including under the Negotiable Instruments Act, 1881 and SARFAESI Act, 2002.

Financial Intermediary Group Loans (“FIG” Loans)

We extend debt capital support for onward lending purposes to financial intermediaries such as NBFCs, MFIs and HFCs
operating in retail segments like housing finance, loans against property, microfinance, vehicle finance and other similar
sectors. Lending to financial intermediaries serves as an opportunity to enter into strategic alliances with their ecosystem
by leveraging their distribution network, technology, and expertise to appraise customer segment they are operating in.
We primarily target investment grade financial intermediaries under this product.

As of December 31, 2020, Gross Loan Portfolio in this segment was 2 1,866.96 million, representing 4.78% of our total
Gross Loan Portfolio.

These FIG loans are typically offered at ticket sizes ranging between % 30.00 million and % 250 million, for a tenure of

12 months to five years in the nine months ended December 31, 2020. These loans were offered at interest rates between
10.50% and 13.77% per annum during Fiscal 2020.

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