22,

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We have introduced new products and services, such as secured loan products including commercial vehicle loans, secured
business loans, housing loans, loans to financial intermediaries, overdraft against fixed deposit, unsecured overdraft
facilities to inclusive finance and commercial vehicle customers, and individual micro business loans (T-Nagar), different
types of deposit products, and non-interest generating products including distribution of insurance products and mutual
funds. For further information, see “Our Business — Description of our Business — Product Portfolio” beginning on page
153. We have incurred certain costs to expand our range of products and services and we cannot assure you that such
products and services will be successful, whether due to factors within or outside of our control, such as general economic
conditions, a failure to understand customer demand and market requirements or management focus on these new products.
We have limited experience in offering such products and commenced offering most of these over the last three years upon
conversion into an SFB. As a result, we may not be able to accurately assess and manage the credit quality associated with
some of these products, which may lead to an increase in NPAs. Further, these operations may be accompanied by
operating and marketing challenges that may be different from those we have previously encountered. In addition, if we
fail to successfully offer our new products and services in an increasingly competitive market, we may not be able to
capture the growth opportunities associated with them or recover the development and marketing costs, and our future
results of operations and growth strategies could be adversely affected. We may also require approvals from regulatory
authorities before we commence offering certain services. For example, we have obtained inter alia, a registration to act
as a corporate agent (composite) from IRDAI in terms of the Insurance Act, 1938, no-objection certificates from the RBI
to undertake the activity of distribution of insurance products, mutual fund units and pension products under the Atal
Pension Yojana and National Pension Scheme on a non-risk sharing basis without any commitment of own funds. If we
fail to obtain such approvals, or to develop and launch such products and services successfully, or are unable to effectively
compete with other banks having similar corporate agency and or/ bancassurance relationships, we may lose a part or all
of the costs incurred in the development of such offerings, or discontinue these offerings, which could in turn adversely
affect our business and results of operations.

As part of our growth strategy, we intend to diversify our product portfolio and in doing so, we may encounter certain
additional risks including management and market-related risks. We cannot assure you that such diversification or
expansion of operations will yield favourable or expected results, as our overall profitability and success will be subject
to various factors, including, among others, our ability to effectively recruit, retain and motivate appropriate and
experienced managerial talent, and ability to compete with other scheduled commercial banks and other NBFCs and SFBs
that are already well established in these market segments. Further, new businesses will require significant capital
investment and commitment of time from our senior management. There can be no assurance that our management will
be able to develop the skills necessary to successfully manage these new business areas. Our inability to effectively manage
any of these issues could materially and adversely affect our business and impact our future financial performance and/ or
cash flows.

We may face asset liability mismatches, which could affect our liquidity and consequently may adversely affect our
operations and profitability.

We may face asset and liability mismatches, which represents situations when the financial terms of an institution’s assets
and liabilities do not match. We cannot assure you that we will be able to maintain a positive asset-liability gap. We may
rely on funding options with a short-term maturity period for extending long-term loans, which may lead to negative asset-
liability gap. Further, mismatches between our assets and liabilities are compounded in case of pre-payments of the
financing facilities we grant to our customers. Further, asset-liability mismatches may also result in liquidity crunch or
liquidity surplus situations and depending upon the interest rate movement, such situations may adversely affect our Net
Interest Income. For further information, see “Selected Statistical Information — Asset Liability Management” on page
223. If we are unable to obtain additional borrowings or renew our existing credit facilities for matching tenures of our
loan portfolio in a timely and cost-effective manner or at all, it may lead to mismatch in our assets and liabilities, leading
to a liquidity risk which may have a material adverse effect on our operations and profitability.

Majority of our advances are unsecured. Our inclusive finance (JLG) loan portfolio, unsecured overdraft facilities,
micro business loans (T-Nagar) and unsecured MSME/ SME loan portfolio are not supported by any collateral, in the
event of non-payment by a borrower of one of these loans, we may not be able to recover unpaid amounts in a timely
manner or at all, which may affect our financial condition, results of operations and cash flows.

Our inclusive finance (JLG) loans, micro business loans (T-Nagar), and unsecured MSME/ SME loan portfolio, which
together form a majority of our Gross Loan Portfolio, are at higher credit risk than secured loan portfolios because they
may not be supported by realizable collateral that could help ensure an adequate source of repayment for the loan. Our
inclusive finance (JLG) loans and overdraft facilities are offered to individuals and families in the form of JLGs to assist
micro-enterprises and to invest in income-generating activities. Such customers are typically part of the unorganized sector
and may not have traditional credit history such as credit scores. While we have certain practices based on an understanding
of the market, and stipulate certain parameters that customers need to satisfy in order to obtain advances from us, there
can been no assurance that such loans will not become non-performing. Further, borrowers of our MSME/ SME loans and
micro business loans (T-Nagar) are more susceptible to macroeconomic events resulting in their ability to make timely

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