determined based on prior vehicle ownership, experience in business and stability of office/ residence in addition to
satisfying other eligibility criteria such as possessing a valid driving license.

Our commercial vehicle loan portfolio predominantly consists of customers such as fleet operators having pre-existing
ownership of vehicles and significant vintage with credible repayment history. We typically finance fleet expansion of
these operators in their normal course of business.

Collection

We collect repayments under our commercial vehicle finance segment in the form of cash, 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 in case
of sale of repossessed vehicles, 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 and file cases under Section 138 of the Negotiable Instruments Act, 1881; we commence arbitration
proceedings and are also entitled to avail section 17 orders for repossession and property attachment and declare wilful
defaulters as stipulated in the RBI guidelines. 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 and 60 days are each managed
through different processes to ensure that delinquencies do not exceed the thresholds set out internally.

Affordable Housing Loans

We commenced providing affordable housing loans in Fiscal 2018. Our housing loan offerings are aimed at self-
employed/ salaried applicants for purchase of apartments or self-construction of their property with a focus on non-
agricultural town planning approved property (NATP). We primarily distribute these loans from Banking Outlets located
in urban/ semi-urban areas. Loans are provided for purchase of house, construction of house, improvement/ restoration
of home and also for refinancing construction, balance transfers and as top-ups of existing loans.

As of December 31, 2020, Gross Loan Portfolio in this segment was = 2,460.30 million, representing 6.30% of our total
Gross Loan Portfolio. Our advances in this segment are typically for self-occupied properties.

These affordable housing loans are offered at ticket sizes ranging between = 100,000 and @ 8,000,000, for a tenure of five
years up to 22.58 years in the nine months ended December 31, 2020. These loans are typically offered at interest rates
between 9.74% and 16.00% per annum.

In Fiscal 2020 and the nine months ended December 31, 2020, the average ticket size of these loans was 2 0.83 million
and 0.77 million, and they were disbursed for an average tenure of 198.38 months and 198.26 months, respectively. The
average yield for Fiscal 2020 and the nine months ended December 31, 2020 was 11.69% and 11.87% (annualized) /
8.90% (unannualized). In Fiscal 2018, 2019 and 2020 and the nine months ended December 31, 2020, disbursements
under this segment were = 223.37 million, = 609.46 million, = 1,146.82 million and 700.77 million, respectively.

As of December 31, 2020, the Gross NPAs for this product segment were 2 15.21 million, representing 0.62% of our
Gross Advances in this product segment.

The number of customers of our affordable housing loan portfolio as of March 31, 2018, 2019 and 2020, and as of
December 31, 2020, was 220, 676, 1,518 and 1,976 respectively.

Customer Sourcing and Credit Assessment

Customers in this segment are required to have stable cash flows, and typically belong to the informal segment, or are
involved in informal trade or commercial activity where income is not completely documented and requires field-based
credit assessment by the credit team members personally at the customers’ place of business or employment. Credit teams
also liaise with external vendors for detailed credit assessments if required. We largely assess the eligibility of these
customers based on cash flows, business performance if self-employed, salary details including job stability, past banking
conduct and repayment track-record. The subject property which is also a security for the loan is subject to a thorough
legal and technical assessment to ascertain unambiguous title to the property and verify the valuation of the property, i.e.
if it adequately secures the loan being disbursed. This assessment is done with through external and independent legal
and valuation experts and is verified by internal legal and valuation teams. The loans are then disbursed in tranches
depending on the stage of construction of the property.

Collection

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