FINANCIAL INDEBTEDNESS

Our Bank avails loans in the ordinary course of business for the purposes of onward lending, meeting working

capital

requirements and for general corporate purposes. For details of the borrowing powers of our Board, see “Our Management

Borrowing powers of Board” on page 195.

The following table sets forth the details of the aggregate outstanding borrowings of our Bank as of January 31, 2021:

 

 

 

 

 

 

(Zin million)
Category of borrowing Sanctioned amount Outstanding amount*

‘Term Loans (secured and unsecured) 2 a

Refinance 23,640.00 16,084.80

NCDs and Subordinate Debt (unsecured) 1,400.00 1,400.00

Market Repo and TREPS 564.04 564.04

Total 25,604.04 18,048.84

 

 

 

 

 

* As certified by C N K & Associates LLP pursuant to their certificate dated March 3, 2021.

For further details in relation to financial indebtedness of our Bank as of January 31, 2021, see “Financial Information”

beginning on page 241.

Principal terms of the outstanding borrowings availed by our Bank:

1. Interest: The interest rates for the various facilities availed by our Bank typically ranges from 4.15% per annum to
15.85% per annum. Further, for certain loans availed by our Bank, additional interest rates have been stipulated on the
occurrence of certain events such as defaulted instalments of refinance, failure in compliance of terms and conditions

and/or failure in payment of accrued interest.

Our Bank has (i) 2,500 unsecured, subordinated, rated, listed, transferable, redeemable NCDs having face value of
%100,000 aggregating to 250,000,000 at a coupon rate of 12.70% per annum; (ii) 150 rated, unsecured, subordinated,
listed, redeemable NCDs having face value of 21,000,000 aggregating to 150,000,000 at a coupon rate of 15.85% per
annum; (iii) 1,000 rated, listed, unsecured, subordinated, redeemable, transferable non-convertible lower Tier II bonds
in the form of NCDs having face value of 710,00,000 each aggregating to 1,000,000,000. The NCDs mentioned in

(i), (ii) and (iii) above are listed on the wholesale debt market segment of the BSE.

2. Security: In terms of our borrowings where security needs to be created, we are typically required to create security
by way of first hypothecation or charge on our Bank’s book debts and receivables. The nature of securities described
herein is indicative and there may be additional requirements for creation of security under the various borrowing

arrangements entered into by us.

3. Prepayment: Certain facilities availed by our Bank have prepayment provisions which prescribe a penalty on the
principal amount prepaid subject to the consent of the majority debenture holders. These prepayment penalties can be

upto around 2.5% of the amount being prepaid.

4. Repayment: The repayment period for refinance assistance and the term loans availed by our Bank typically ranges
from 11 months to 60 months. The tenor of the NCDs and subordinate debt issued by us ranges from 67 months to 79
months. We are required to repay in such instalments as per the repayment schedule stipulated in the relevant loan

documentation.
5: Key Covenants: In terms of our borrowing arrangements, we are required to:
a) provide financial statements periodically;
b) monitor compliance with financial covenants;
c) intimate and/or take prior consent of the lenders for any changes in the capital structure of our Bank;
d) take prior consent of lenders and debenture trustees (on behalf of the debenture holders) before undertaking

any changes in constitutional documents (including when such change would have a material adverse effect

on the issuer or would detrimentally affect the interests of the debenture holders);

e) intimate and/or take prior consent of the lenders and debenture trustees (on behalf of the debenture holders)
for any changes in board composition or senior management including when such change may amount to a

change in control;

f) take prior consent of lenders before permitting any transfer of shares by promoters (and lock-in of their

respective shareholding of promoters);
303
