Board of Directors observed that Quarterly Monitoring Minutes gives a perception that Bank is

moving towards very difficult times and they need to put a collective effort to prepare a
strategy as to how to come out of the present situation. Bank explained that the biggest focus is
to be on capital conservation. Till the time capital of the Bank improves, bank has to rely on its
conservation. It further explained that it cannot breach CET – I as that may lead to triggering of
Point of Non Viability (PONV) and bank may be abstained from payment of coupon interest.

NEC observed that RBI has raised the concern of continuous dip in share price of the Bank and
this concern is not addressed in the document. It was explained that document presented to the
Board deals with all the strategic points. In this Board Meeting the focus is on firm up the
strategy and point to point wise detail including sub points raised by RBI will be addressed
duly.

NEC enquired whether reply to the letter of RBI is sent by the Bank. It was informed that Bank
has written a letter to SSM informing that reply will be given after due deliberation by Board of
Directors on the concerns raised.

One of the Directors observed that Bank should present a continuum to RBI, how it started
with strategy of growth planning and shifted to capital / risk based approach. Number
presented in the Strategy Meeting shall be compared with present changes so that it can be
assessed how far Bank has come. Numbers are very important for formulation of any strategy
and same shall be shared with RBI and the Board.

If Bank wants to present it to RBI that it wants to continue the present strategy, then it must
show them trends and data analysis. It was informed to the Board that every statement in
presentation shared with the Board is corroborated with data. The same data would be shared
while replying to RBI.

One of the Directors observed that according to the strategy presented to the Board, Bank wants
to focus more on areas like Punjab. To achieve that it shall prepare a proper plan after having
discussion on strength of the Bank with the Zonal heads in Zonal Meetings. The personnel
working in a field and can help in preparing a better strategy as they have first hand
experience with that area.

Out CASA is almost on the same stage. RBI has also stressed on it.

Compliance should be taken more diligently and delayed tactics involved in the resolution
of any kind of issues shall be managed with the help of authorities.

In Consortium Loan accounts, Bank should act more diligently towards resolution even when
we are not the lead Bank. It was informed that all the rules relating to consortium arrangement
has already been discussed and Bank’s act accordingly.

Unnecessary expenditures shall be curtailed. It was informed that operating expenses of the
Bank are continuously declining.

Sensitivity: Internal (C3)

Branches having more that required space can be shifted to small premises or extra space can
be surrendered. It was informed that space audit is done from past 18 months and
expenditure has been reduced. NEC asked to present the data in corroboration.

Board asked the Bank to present data on three clearly defined points of CASA to show the
progress of strategy.

Sensitivity: Internal (C3)