We collect repayments under our affordable housing finance segment in the form of post-dated cheques, demand drafts
and through various online portals. We also monitor our collections branch-wise/ location wise on a daily basis.
Collections are carried out through personnel engaged by our Bank. Our collection processes are set out in our policies
and procedures that are in compliance with RBI guidelines. For instance, we are entitled to issue dunning/ collection
notices under Section 138 of the Negotiable Instruments Act, 1881; we initiate proceedings under the SARFAESI Act,
2002; and can also declare wilful defaulters as stipulated in the RBI guidelines. Under the SARFAESI Act, 2002, upon
obtaining a court order for repossession, we first obtain symbolic possession, followed by physical possession of the NPA
properties, and subsequently dispose the assets in accordance with the RBI guidelines which includes an auction process.
Our recovery processes including 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.

Micro and Small Enterprise (“MSME”), and Small and Medium Enterprise (“SME”) Finance

We commenced providing unsecured MSME/ SME loans in Fiscal 2017. We provide these loans to entities/ individuals
engaged in business activities such as those operating small shops, traders, retail stores, small manufacturing units, service
establishments that maintain some formal records for credit evaluation. We advance these loans to meet evolving business
needs and working capital requirements including expansion, renovation, improvement of shop, office, purchase of raw
materials and acquisition of equipment. Initially, the customer segment comprised customers without adequate
documentation and credit histories. We then focused on developing our internal credit team which led to a shift in our
target customers for these loans, and in Fiscal 2019, customers for these loans comprised individuals with adequate
documentation and credit history. We have since reduced our focus on unsecured MSME/ SME loans and increased our
focus on secured MSME/ SME loans.

As of December 31, 2020, Gross Loan Portfolio in this segment was = 399.46 million, representing 1.02 % of our total
Gross Loan Portfolio.

These MSME/ SME loans are typically offered at ticket sizes ranging between % 200,000 and 2 10,000,000, for a tenure
of 12 months to three years during Fiscal 2020. These loans were defocussed in the nine months ended December 31,
2020 and accordingly, no fresh loans were disbursed during this period. These loans are typically offered at interest rates
between 18.00% and 22.00% per annum.

In Fiscal 2020 the average ticket size of these loans was 2 2.16 million and they were disbursed for an average tenure of
25.64 months. The average yield for Fiscal 2020 and the nine months ended December 31, 2020 was 15.98% and 14.60%
(annualized) / 10.95% (unannualized), respectively. In Fiscal 2018, 2019 and 2020 and the nine months ended December
31, 2020, disbursements under this segment were % 896.90 million, = 536.42 million, = 73.43 million and nil, respectively.

As of December 31, 2020, the Gross NPAs for this product segment were 2 37.55 million, representing 13.36% of our
Gross Advances in this product segment.

The number of customers of our unsecured MSME/ SME loan portfolio as of March 31, 2018, 2019 and 2020 and as of
December 31, 2020 was 4,976, 5,220, 3,079 and 2,481 respectively.

Customer Sourcing and Credit Assessment

We source customers for this loan segment through two channels, the direct sales model and referral model. In the direct
sales model, our relationship managers engage with potential customers for onboarding. Under the referral model, we
leverage our Banking Outlets to source or refer customers near our Banking Outlets.

We typically assess eligibility of these customers based on parameters including cash flows, past banking conduct and
repayment track-record. We focus on determining the stability of their cash flows and repayment behavior to assess the
leverage and the purpose of funds being borrowed. We also assess the actual deployment of funds made by the customer
post disbursement.

Collection

We collect repayments under our MSME/ SME finance segment in the form of cash/ sending instructions on the accounts
maintained with us, post-dated cheques, demand drafts and through various online portals. We also monitor our
collections branch-wise/ location wise on a daily basis. Collections are carried out through personnel engaged by our
Bank as well as through approved external vendors, once the customer fails to make payments by the due date. Our
collection processes are set out in our policies and procedures that are in compliance with RBI guidelines. For instance,
we issue dunning/ collection notices under Section 138 of the Negotiable Instruments Act, 1881; we are also entitled to
commence arbitration proceedings for attachment of property if identified, and attachment and disposal followed by

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