We acquire customers for inclusive finance (JLG) loans through our relationship officers (“ROs”) who meet potential
customers in person. All RO’s are assigned designated areas based on the extensive knowledge they possess on these
areas. They interact with existing customers every month and regularly visit their designated areas for further visibility
in the region. Existing customers usually refer our ROs to potential customers, enabling sourcing of new customers within
these designated areas. The RO then establishes groups of at least five customers who are familiar with each other and
require credit for their business activities. After forming a potential group of customers known as a center, the RO
conducts their credit assessment by undertaking KYC checks and verifying credit history. All the information collected
from the customers is uploaded on our portal and linked to the central database.

We offer group loan products to groups comprising at least five members, based on each member’s credit worthiness.
These members are aged between 21 to 62 years who live in close proximity to one another, and within the operating
radius of the same branch. An independent credit verification is carried out by the Quality Assurance Officer thereafter,
who is deputed at each Banking Outlet.

We also source customers through business correspondents by leveraging on their existing extensive network.
Collection

Typically, repayments are made at group meetings, which are held on a monthly basis. At these meetings, if any member
defaults in making payments or is absent, the other group members are responsible for such amount. The member is
subsequently required to repay such amount to the group. The collection process is a critical part of our inclusive finance
(JLG) operations. Repayments are collected in cash at center meetings. Center meetings are conducted at a scheduled
time and place every month. Customers give an undertaking on center attendance, loan utilization, timely payment of
instalments and on collective responsibility. A message is played in the center meetings to create awareness on social
issues. The amount collected is entered into a loan card and signed by the relationship manager as an acknowledgment.
The supervisory team comprising the branch and area managers are involved promptly if the customers/ centers default
in repaying dues. Key functions such as center attendance, receipt issuance, and location of the transaction are tracked
along with the collections. In addition, we conduct surprise center visits through the branch manager on a daily basis.

Commercial Vehicles

We commenced advancing commercial vehicle loans in Fiscal 2018. A significant proportion of the customers of our
commercial vehicle portfolio comprises fleet operators engaged in road transport for various industries who have availed
finance for heavy and medium commercial goods vehicles. These are used for a range of commercial purposes such as
market loading operations, contract transportation and logistics services. Our customers also avail loans for purchase of
buses, primarily for use as route buses, transportation as school buses and staff buses.

As of December 31, 2020, Gross Loan Portfolio in this segment was 2 3,680.09 million, representing 9.42 % of our total
Gross Loan Portfolio.

These commercial vehicle loans are offered at ticket sizes ranging between = 250,000 and 2 19,666,000, for a tenure of
12 months to five years during in the nine months ended December 31, 2020. These loans are offered at interest rates
between 10.50% and 19.02% per annum (excluding moratorium interest, as may be applicable).

In Fiscal 2020 and the nine months ended December 31, 2020, the average ticket size of these loans was % 2.80 million
and 2 2.15 million, respectively, and they were disbursed for an average tenure of 47.58 months and 39.57 months. The
average yield for Fiscal 2020 and the nine months ended December 31, 2020 was 10.46% and 10.88% (annualized) /
8.16% (unannualized), respectively. In Fiscal 2018, 2019 and 2020 and in the nine months ended December 31, 2020,
disbursements under this segment were = 85.48 million, = 2,311.58 million, = 2,259.06 million and % 352.83 million,
respectively.

As of December 31, 2020, the Gross NPAs for the commercial vehicle finance segment were % 155.29 million that
represented 4.20% of our Gross Advances in this product segment.

The number of customers of our commercial vehicle loan portfolio as of March 31, 2018, 2019 and 2020, and as of
December 31, 2020 was 4, 252, 506, and 599 respectively.

Customer Sourcing and Credit Assessment
We source customers for our commercial vehicle loans based on our existing relationship with them through sales

executives and visiting prospective customers to offer credit facilities. Our commercial vehicle finance operations are
conducted based on our extensive knowledge of working with customers possessing sufficient credit history, which is

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