Recurring income includes (i) commission, exchange and brokerage; (ii) profit on sale of investments (net); (iii) profit/ (loss)
on sale of fixed assets (net); and (iv) miscellaneous income.

Expenditure

Total expenditure increased by 26.96% from 2 4,996.80 million in the nine months ended December 31, 2019 to = 6,344.07
million in the nine months ended December 31, 2020 on account of an increase in interest expenses, operating expenses and
higher provisions and contingencies.

Interest Expended

Interest expended increased by 34.14% from % 2,020.83 million in the nine months ended December 31, 2019 to 2 2,710.72
million in the nine months ended December 31, 2020, primarily due to an increase in interest on deposits from % 1,290.73
million in the nine months ended December 31, 2019 to % 1,775.65 million in the nine months ended December 31, 2020 on
account of increase in deposits. Deposits increased by 34.22% from % 24,913.57 million in the nine months ended December
31, 2019 to 33,438.40 million in the nine months ended December 31, 2020 on account of increase in Banking Outlets and
addition of new customers. This was further aided by an increase in interest on RBI/ inter-bank borrowings which increased by
105.33% from % 43.54 million in the nine months ended December 31, 2019 to = 89.40 million on account of increase in
borrowings from Other institutions and agencies and increase in Unsecured redeemable debentures and term loans. Other
interest also increased by 23.17% from % 686.56 million in the nine months ended December 31, 2019 to = 845.67 million in
the nine months ended December 31, 2020 due to due to increase in refinance borrowings and subordinated debt.

Operating Expenses

Operating expenses increased by 22.97 % from % 1,883.72 million in the nine months ended December 31, 2019 to = 2,316.35
million in the nine months ended December 31, 2020 primarily due to an increase in payments to and provisions for employees
from 2 1,211.48 million in the nine months ended December 31, 2019 to & 1,335.67 million in the nine months ended December
31, 2020 on account of increase in number of employees from 4,423 employees as of December 31, 2019 to 4,770 employees
as of December 31, 2020. Rent, taxes and lighting increased by 28.90% from 2% 158.33 million in the nine months ended
December 31, 2019 to = 204.09 million in the nine months ended December 31, 2020 primarily due to increase in the number
of Banking Outlets from 439 as of December 31, 2019 to 554 as December 31, 2020. Depreciation on the Bank’s property
increased by 97.12% from 2 50.00 million in the nine months ended December 31, 2019 to = 98.56 million in the nine months
ended December 31, 2020. Repairs and maintenance expenses also increased by 115.40% from % 163.18 million in the nine
months ended December 31, 2019 to % 351.49 million in the nine months ended December 31, 2020 due to increase in
expenditure towards our core banking solutions and upgradation of information technology. In addition, other expenditure,
primarily comprising professional fees, increased by 27.30% from = 171.33 million in the nine months ended December 31,
2019 to % 218.10 million in the nine months ended December 31, 2020, on account of increase in payment to outsourced
vendors, including, payments for increased volume, increase in payment to credit bureaus, fees for white label ATMs and
commission to business correspondents.

Provisions and Contingencies

Provisions and contingencies increased by 20.58% from % 1,092.25 million in the nine months ended December 31, 2019 to =
1,317.00 million in the nine months ended December 31, 2020, primarily due to an increase in other provisions from = 73.45
million in the nine months ended December 31, 2019 to 2 755.86 million in the nine months ended December 31, 2020. Other
provisions primarily increased on account of contingency provision created due to the uncertain and volatile market
environment as a result of COVID-19 and additional provisions created in accordance with the minimum provision required by
the RBI guidelines relating to COVID-19 Regulatory Package dated March 27, 2020 and April 17, 2020. For further
information, see “Financial Statements — Annexure 22 — Note 15” on page 284. Provision for non-performing assets/ write-offs
(net) decreased by 16.64% from % 461.85 million in the nine months ended December 31, 2019 to = 384.98 million in the nine
months ended December 31, 2020, on account of an interim order of the Supreme Court of India dated September 3, 2020,
directing banks that accounts which were not declared as NPAs till August 31, 2020 shall not be declared as NPAs till further
orders. Pending finality, we have not classified any account which was not a NPA as of August 31, 2020 as per the RBI
Prudential Norms on Income Recognition, Asset Classification, Provisioning and Other Related Matters as NPA after August
31, 2020. Further, in light of the interim order by the Supreme Court, even accounts that would have otherwise been classified
as NPAs post August 31, 2020 have not been and will not be, classified as NPAs till such time that the Supreme Court finally
determines matter. Further, there was a decrease in income tax by 36.93% from = 510.20 million in the nine months ended
December 31, 2019 to = 321.79 million in the nine months ended December 31, 2020 as a result of lower profits for the nine
months ended December 31, 2020.

Profit
For the reasons discussed above, net profit for the period was % 548.66 million in the nine months ended December 31, 2020 as

compared 2 1,266.78 million in the nine months ended December 31, 2019.
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