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All of our business is located in India. India's existing credit information infrastructure may pose problems and difficulties
in running a robust credit check on our borrowers. We may also face difficulties in the due diligence process relating to
our clients or to any security or collateral we take in relation to our loans. We may not be able to run comprehensive
searches relating to the security and there are no assurances that any searches we undertake will be accurate or reliable.
Hence, our overall credit analysis could be less robust as compared to similar transactions in more developed economies.
Any inability to undertake a comprehensive due diligence or credit check might result in an increase in our NPAs and we
may have to increase our provisions correspondingly. Any of the foregoing may have a material adverse effect on our
business, financial condition, results of operations and cash flows.

If inflation were to rise in India, we might not be able to increase the prices of our services at a proportional rate in
order to pass costs on to our customers and our profits might decline.

Inflation rates could be volatile and we may face high inflation in the future as India had witnessed in the past. Increased
inflation can contribute to an increase in interest rates and increased costs to our business, including increased costs of
transportation, salaries, and other expenses relevant to our business. Further, high inflation leading to higher interest rates
may also lead to a slowdown in the economy and adversely impact credit growth. Consequently, we may also be affected
and fall short of business growth and profitability.

High fluctuations in inflation rates may make it more difficult for us to accurately estimate or control our costs. Any
increase in inflation in India can increase our operating expenses, which we may not be able to pass on to our customers,
whether entirely or in part, and the same may adversely affect our business and financial condition. In particular, we might
not be able to reduce our costs or pass the increase in costs on to our customers. In such case, our business, results of
operations, cash flows and financial condition may be adversely affected.

While the Government of India through the RBI has previously initiated economic measures to combat high inflation rates,
it is unclear whether these measures will remain in effect, and there can be no assurance that Indian inflation levels will
not rise in the future.

Our ability to raise borrowings in foreign currencies may be constrained by Indian law.

Indian banks and companies are subject to exchange controls that regulate borrowing in foreign currencies, including those
specified under FEMA. Such regulatory restrictions limit our financing sources and hence could constrain our ability to
obtain financing on competitive terms and refinance existing indebtedness. In addition, we cannot assure you that any
required approvals for borrowing in foreign currency will be granted to us without onerous conditions, or at all. Such, and
other, limitations on raising foreign capital may adversely affect our business growth, results of operations, financial
condition and cash flows.

A third party could be prevented from acquiring control over us because of the anti-takeover provisions under Indian
law and the provisions of the Banking Regulation Act.

There are provisions in Indian law that may delay, deter or prevent a future takeover or change in control of our Bank.
These provisions may discourage or prevent certain types of transactions involving actual or threatened change in control
of us. Under the Takeover Regulations, an acquirer has been defined as any person who, directly or indirectly, acquires or
agrees to acquire shares or voting rights or control over a company, whether individually or acting in concert with others.
Although these provisions have been formulated to ensure that interests of investors/ shareholders are protected, these
provisions may also discourage a third party from attempting to take control of our Bank. Further, given that our Bank is
governed by the RBI, any significant change in shareholding would require the prior approval of the RBI and there are
limitations on voting rights in a banking company. Consequently, even if a potential takeover of our Bank would result in
the purchase of the Equity Shares at a premium to their market price or would otherwise be beneficial to our Shareholders,
such a takeover may not be attempted or consummated because of the regulatory framework applicable to us.

It may not be possible for investors to enforce any judgment obtained outside India against us, our Directors, the Book
Running Lead Managers or any of their directors and executive officers in India respectively, except by way of a law
suit in India. Further, it may not be possible for investors to enforce any judgment obtained outside India against IFC.

We are an SFB incorporated under the laws of India. Our Bank’s assets are located in India and majority of our Bank’s
Directors and Key Managerial Personnel are residents of India. The enforcement of civil liabilities by overseas investors
in the Equity Shares, including the ability to effect service of process and to enforce judgments obtained in courts outside
of India may be adversely affected by the fact that our Bank is incorporated under the laws of the Republic of India and
all of its executive officers and directors reside in India. As a result, it may be difficult to enforce the service of process
upon our Bank and any of these persons outside of India or to enforce outside of India, judgments obtained against our
Bank and these persons in courts outside of India.

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