 

 

 

 

 

 

 

 

 

 

 

 

As of As of March As of As of As of
Particulars (Direct Assignment Transactions) March 31, 31, 2019 March 31, | December | December
2018 31, 2019 31, 2020
(ii) Aggregate value of accounts sold to SC z 1,237.32 e si :
(iii) Aggregate Consideration z 1,113.59 a = =
(iv) Aggregate gain over net book value - 65.11 - - -

 

For further information, see “Financial Information” beginning on page 241.

CONTINGENT LIABILITIES AND OTHER OFF-BALANCE SHEET ARRANGEMENTS

The following table sets forth certain information relating to our contingent liabilities which have not been disclosed, as of

December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Particulars As of December 31, 2020
(€ million)
Claims against the bank not acknowledged as debts — taxation 38.65
Claims against the bank not acknowledged as debts — others 0.34
Liability on account of outstanding forward exchange contracts -
Liability on account of outstanding derivative contracts =
Guarantees given on behalf of constituents: -
- In India -
- Outside India -
‘Acceptances, endorsements and other obligations =
Other items for which the Bank is contingently liable 9.77
Total 48.76

 

 

 

Except as disclosed in this Prospectus, there are no off-balance sheet arrangements that have or are reasonably likely to have
a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures
or capital resources that we believe are material to investors.

CAPITAL EXPENDITURE/ ADDITIONS TO FIXED ASSETS

Our capital expenditure consists principally of expenditure relating to Banking Outlets and investment in technology
infrastructure. In Fiscal 2018, Fiscal 2019 and in Fiscal 2020 and in the nine months ended December 31, 2019 and 2020, we
incurred 2 116.37 million, = 104.75 million, 227.20 million, = 24.98 million and = 90.67 million, respectively, as capital
expenditure. In Fiscal 2018, Fiscal 2019 and Fiscal 2020 and in the nine months ended December 31, 2019 and 2020, additions
made to software amounted to 2 6.77 million, = 16.32 million, = 103.30 million, = 0.12 million and 2 42.78 million, respectively.

AUDITOR’S OBSERVATIONS

Other than as disclosed below, there have been no reservations/ qualifications/ adverse remarks/ matters of emphasis highlighted
by our statutory auditors in their auditor’s reports on the audited financial statements as of and for the years ended March 31,
2018, 2019 and 2020 and for the nine months ended December 31, 2019 and 2020.

The auditor’s report on the financial statements as of and for the year ended March 31, 2020 and period ended December 31,
2020, included a matter of emphasis regarding Schedule 18(15) to the financial statements, which describes that the extent to
which the COVID-19 pandemic will impact the Bank’s financial statements will depend on future developments, which are
highly uncertain. For further information, see “Restated Financial Statements” beginning on page 241.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to various types of market risks during the normal course of business such as credit risk, liquidity risk,
operational and cash management risk, market and interest rate risk, information security and cyber risk, and reputational risk.

Credit Risk

Credit risk is the possibility of losses associated with diminution in the credit quality of borrowers or counterparties. We record
losses in our portfolio from defaults that arise due to inability or unwillingness of a borrower or counterparty to meet
commitments in relation to lending, trading, settlement and other financial transactions. The credit risk governance framework
ensures that there is segregation of duties across the three lines of defence, i.e. (a) business units, which are responsible for
implementing corrective actions to address process and control deficiencies as they retain accountability for managing the credit

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