36.

37.

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by our insurance policies. Any failure or material weakness in our risk management architecture could adversely affect
our business, results of operations, financial condition and cash flows.

The success of our business operations is dependent on our senior management team and key management personnel
as well as our ability to attract, train and retain such employees.

The success of our business operations is dependent in part on our ability to retain our senior management team and key
managerial personnel. We believe that the inputs and experience of our senior management and Board of Directors, in
particular, and other key personnel are valuable for the development of our business and operations and the strategic
directions taken by our Bank. For further information on our key managerial personnel, see “Our Management” beginning
on page 188. Our ability to sustain our growth depends upon our ability to attract and retain key personnel, developing
managerial experience to address emerging business and operating challenges and ensuring a high standard of customer
service. We cannot assure you that these individuals or any other member of our senior management team will not leave
us or join a competitor or that we will be able to retain such personnel or find adequate replacements in a timely manner,
or at all. We may require a long period of time to hire and train replacement personnel when qualified personnel terminate
their employment with our Bank. We may also be required to increase our levels of employee compensation more rapidly
than in the past to remain competitive in attracting employees that our business requires. The loss of the services of such
persons may have an adverse effect on our business, results of operations, financial condition and cash flows. Additionally,
the RBI reserves the right under the Banking Regulation Act to remove managerial persons from office and/ or supersede
the Board in order to protect interests of depositors of our Bank.

Hiring and retaining personnel qualified and experienced in credit-appraisal, treasury management and asset valuation, is
difficult. We may also face attrition of our existing workforce as a result of increased competition or other factors relating
to our businesses. If we cannot hire additional qualified personnel or retain them, our ability to expand our business will
be impaired and our revenue could decline. We will need to recruit new employees, who will have to be trained and
integrated into our operations. We will also have to train existing employees to adhere properly to internal controls and
risk management procedures. Failure to train and motivate our employees properly may result in an increase in employee
attrition rates, require additional hiring, erode the quality of customer service, divert management resources, increase our
exposure to high-risk credit and impose significant costs on us.

Our inability to grow our CASA deposits and CASA ratio may result in a high cost of deposits and impact our financial
condition and cash flows.

As of December 31, 2020, our CASA ratio was at 13.32%. We may not be able to grow our CASA deposits and CASA
ratio owing to the increased competition from other banks. In order to attract retail customers and increase our CASA.
deposits, we intend to introduce new products and promote our products through marketing campaigns. While various
factors influence a customer’s decision to place deposits with banks, the interest rates offered play a large role in
influencing that decision. In order to attract deposits the interest rates we offer are determined by numerous factors such
as the prevailing interest rate trends, competitive landscape, Indian monetary policy and inflation. However, there is no
assurance that we will be successful in growing our CASA base. If we fail to grow our CASA ratio, our financial condition
and cash flows may be materially and adversely affected.

We undertake certain fee and commission-based activities and our financial performance may be adversely affected by
an inability to generate income from such activities.

We have expanded our operations from undertaking banking activities to providing certain fee and commission-based
services. Our fee income includes income generated from sale of PSL certificates, which represented 2.89%, 2.83%, 3.27%
and 3.08% of our total income in Fiscal 2018, 2019 and 2020 and in the nine months ended December 31, 2020,
respectively. Revenue from commission, exchange and brokerage was % 260.61 million, = 448.13 million, = 492.28 million
and % 173.08 million in Fiscal 2018, 2019 and 2020 and in the nine months ended December 31, 2020, respectively and
represented 8.02%, 7.51%, 5.76% and 2.51%, respectively, of our total income, in the same periods.

Our fee and commission based activities include distribution of third-party insurance, mutual fund products and pension
products. If we are unable to attract customers and are unable to continue to make competitive offerings of these services
to our customers, fee generated by these products and services may be less than anticipated, which may materially and
adversely affect our business, financial condition, results of operations and cash flows. Our fee income from sale of PSL
certificates is influenced by the demand generated from shortfall of PSL by the purchasing bank in a particular category
of loans and related supply from banks having excess PSL in such category. As the demand and supply of PSL certificates
is beyond our control, there can be no assurance that we will continue to generate similar amounts of fees from sale of
PSL certificates in the future. Any significant decrease in such fee income could impact our results of operations and
financial condition. In addition, there has been a recent change in the definition of micro, small and medium enterprises
which may require reclassification of certain customers and also obtaining of additional evidences to classify loans under
MSME category. We cannot assure you that we will be able to obtain adequate and appropriate documentation from the

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