LVB 93rd Annual Report 2019-20

93rd ANNUAL REPORT 2019 - 2020
Printed at LS Graphic Prints

BOARD OF DIRECTORS
Shri S.SunDAR
Managing Director & CEO
Shri G.SuDHAKARA GuPTA Shri n.SAIPRASAD Shri GORInKA JAGAnmOHAn RAO
Shri RAGHuRAJ GuJJAR Shri SHAKTI SInHA Shri SATISH KumAR KAlRA
Smt. mEETA mAKHAn Shri K.R.PRADEEP Shri B.K.mAnJunATH
Shri Y.n.lAKSHmInARAYAnA muRTHY Shri RAJnISH KumAR Shri SunDARAm SHAnKAR

RBI Additional Director RBI Additional Director
ANNUAL REPORT 2019-2020
BOARD OF DIRECTORS
Shri / Smt.
S.Sundar - Managing Director & CEO (From 01.01.2020)
G.Sudhakara Gupta
N.Saiprasad
Gorinka Jaganmohan Rao (From 02.12.2019)
Raghuraj Gujjar (From 02.12.2019)
Shakti Sinha (From 02.12.2019)
Satish Kumar Kalra (From 02.12.2019)
STATUTORY AUDITOR
Meeta Makhan (From 23.01.2020)
M/s.P.Chandrasekar LLP
K.R.Pradeep (From 23.01.2020)
Chartered Accountants
B.K.Manjunath (From 10.06.2020)
Bengaluru
Y.N.Lakshminarayana Murthy (From 30.07.2020)
(Firm’s Registration No.000580S/S200066)
Rajnish Kumar – RBI Additional Director
Sundaram Shankar – RBI Additional Director (From 18.11.2019) SECRETARIAL AUDITOR
Shri Kaliappagounder Muthusamy,
PRESIDENTS Practicing Company Secretary
Meenakshi Sundaram RM Coimbatore
Sreeram G (M.No.F 5865; CP:3176)
REGISTERED OFFICE
SENIOR VICE PRESIDENTS Salem Road, Kathaparai,
Padmanabhan Premkumar Karur-639 006, Tamilnadu
Nachiappan N Phone : 04324-258501
Ravindra Kumar G Website : www.lvbank.com
Manikandan M E-Mail : secretarial@lvbank.in
CIN L65110TN1926PLC001377
Gurumurthy R K
Thiruvadi S CORPORATE OFFICE
Murli M Khemka “LVB HOUSE”,
No.4, Sardar Patel Road,
Guindy, Chennai - 600 032
CHIEF FINANCIAL OFFICER
Tamilnadu
Hariharan K Phone : 044 22205222
REGISTRAR AND SHARE TRANSFER AGENT

COMPANY SECRETARY
M/s. Integrated Registry Management Services
N.Ramanathan
Private Limited
II Floor, “Kences Towers”,
No.1, Ramakrishna Street,
North Usman Road, T.Nagar,
Chennai - 600 017.
Phone : 044-28140801/2/3 Fax: 28142479
Email : lvb@integratedindia.in
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CONTENTS Page No.
Report of Directors 3
Report of Auditors 20
Balance Sheet 28
Profit & Loss Account 29
Cash Flow Statement 30
Schedules 31
BASEL III - Pillar 3 Disclosures 69
Certificate on Corporate Governance and ESOS 89
A Decade of Progress 150
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DIRECTORS’ 93rd ANNUAL REPORT
To
THE MEMBERS
The Directors of your Bank hereby are presenting the 93rd Annual Report on the business and operations of your Bank together with
the Audited Accounts for the year ended 31st March, 2020 (FY 2019-20).
1. FINANCIAL PERFORMANCE
The highlights of the financial performance of your Bank for the year ended 31st March, 2020 are as under:
For the year ended (` in crores)

Particulars
31st March 2020 31st March 2019
Deposits 21443.19 29279.44
Advances (net) 13827.89 20103.26
Investments (net) 5383.83 8430.17
Total Income 2558.03 3090.21
Operating Loss (-)15.46 (-)11.97
Provisions & Contingencies 820.59 882.13
Net Loss (-)836.04 (-)894.10
At the outset, this year proved to be most difficult for your Bank on the back of certain events happening in our bank coupled with
certain external factors.
Consequentially your bank registered a total business of ` 38116.53 crores in FY 2019-20 as against ` 51235.40 crores in
FY 2018-19, a decrease of 25.61%.
Deposits fell by 26.76%, from ` 29279.44 crores as at 31st March 2019 to ` 21443.19 crores as at 31st March 2020 on the back of
conscious decision to reduce bulk deposits. CASA represented 26.63% of total deposits.
Total advances (net) reduced by 31.22%, from ` 20103.26 crores to ` 13827.89 crores in the same period on the constraints arising
from lower CRAR.
The total Priority Sector Advances were ` 8441.32 crores forming 34.96% of Adjusted Net Bank Credit (ANBC) against the regulatory
prescription of 40% of ANBC for the FY 2019-20.
The total Agricultural Advances stood at ` 3623.68 crores forming 15.01% of ANBC against the regulatory prescription of 18.00%
of ANBC. Of which, loans to Non Corporate Farmers stood at ` 2469.66 crores forming 10.23% of ANBC against the mandatory
requirements of 12.11%, loans to Small and Marginal Farmers stood at ` 2107.47 crores forming 8.73% of ANBC against the mandatory
requirements of 8.00% of ANBC for the year 2019-20.
Our Bank's advances to Micro Enterprises under MSME were at 6.28% of ANBC amounting to ` 1517.03 crores against the mandatory
requirements of 7.50% of ANBC for the year 2019-20.
Bank's advances to Weaker Sections were ` 2260.88 crores forming 9.36% of ANBC against the mandatory requirements of 10.00%
of ANBC for the year 2019-20.
The shortfall in achievement with the regulatory guidelines under priority sector, agricultural lending, micro enterprises and weaker
section advances arise mainly due to reduction/repayment of advances.
The Bank's exposures to sensitive sectors including Real Estate and Capital Market were maintained well within the regulatory limits
as well as overall internal ceilings prescribed for such exposures.
As at the end of the year under review, the total investments (net) of the Bank stood at ` 5383.83 crores as on 31st March 2020 as
against ` 8430.17 crores as on 31st March 2019.
Your Bank's Treasury continues to focus on sound Asset-Liability Management and on servicing clients with appropriate treasury
products and was managed reasonably well in a systematic way in a year when yields were constantly rising.
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2. PROFIT / LOSS
The Bank has posted an operating loss of ` 15.46 crores in FY 2019-20 against the operating loss of ` 11.97 crores in the previous
year FY 2018-19. The net loss for the year, after provisions and taxes, amounted to ` 836.04 crores as against a net loss of
` 894.10 crores recorded in 2018-19.
3. APPROPRIATIONS
For the year ended (` in crores)

Particulars
31st March 2020 31st March 2019
Profit brought forward
Transfer from Investment Reserve (-)1565.29 (-)671.12
Amount available for appropriation 0.00 0.00
Transfer to Statutory Reserve (-)836.04 (-)894.10
Capital Reserve 59.26 0.07
Other Reserve 0.00 0.00
Investment Reserve 0.00 0.00
Special Reserve u/s 36(i)(viii)of the IT Act, 1961 0.00 0.00
Proposed Dividend/Dividend paid 0.00 0.00
Corporate Dividend Tax 0.00 0.00
Balance of profit carried forward 0.00 0.00
(-)2460.59 (-)1565.29
4. DIVIDEND
In an environment of heightened uncertainty caused by COVID-19, it is important that banks conserve capital to retain their capacity
to support the economy and absorb losses. Accordingly RBI vide circular DOR.BP.BC.No.64/21.02.067/2019-20 dated April 17, 2020
has directed all the banks not to make any further dividend pay-outs from the profits pertaining to the financial year ended March 31,
2020 until further instructions. Further, in view of the Net Loss for the FY 2019-20, your Board of Directors is unable to recommend
any dividend for the year.
Your Bank has a Board approved Dividend Distribution Policy which has been formulated in line with Regulation 43A of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and extant RBI Circulars / Directives. The Dividend
Distribution Policy is enclosed as Annexure I to the Directors’ Report. The Policy has also been made available in the website of the
Bank and can be accessed at https://www.lvbank.com/Policies.aspx .
5. CAPITAL RAISING
Preferential Allotment
During the year, your Bank had allotted 1,68,00,000 Equity Shares at a price of ` 112/- (face value of ` 10/- and premium of ` 102/- per
equity share) for an aggregate amount of ` 188.16 crores on 04.07.2019 to M/s. Indiabulls Housing Finance Limited under Preferential
Issue as per Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018,
as amended with approval of the shareholders through an Extra-ordinary General Meeting held on 20thMay 2019.
Your Bank continues to explore various options for raising further capital and will keep the shareholders informed through necessary
disclosures at the Stock Exchanges and Bank’s website.
6. STATEMENT OF DEVIATION OR VARIATION

During the year, the Bank had allotted 1,68,00,000 Equity Shares (face value of ` 10/- and premium of ` 102/-) for an aggregate amount
of ` 188.16 crore, on 04th July 2019 to M/s.Indiabulls Housing Finance Limited by way of Private Placement. The issue was done in
order to enhance the Capital Adequacy Ratio in line with the RBI norms. The proceeds of the issue were used primarily to enhance
the Bank’s Capital Adequacy Ratio and to increase our capacity to lend and for general corporate purposes subject to compliance
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of applicable laws. There was no variation prompting disclosure under Regulation 32 of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations 2015, as amended.
7. EPS / BOOK VALUE

Earnings per Share stood at ` (-)25.16 for the year ended 31st March, 2020 as compared to ` (-) 34.66 as on 31st March, 2019. Book
Value of the share, stood at ` 31.21 on 31st March, 2020 as compared to ` 53.48 as on 31st March, 2019. The Book value adjusted for
DTA, Intangible assets stood at ` (-)5.63 on 31st March, 2020 as compared to ` 25.08 as on 31st March, 2019.
8. NET OWNED FUNDS / CAPITAL ADEQUACY RATIO

Net Owned Funds (NOF) of the Bank decreased from ` 1710.97 crores as at the end of FY 2019 to ` 1050.96 crores as at the end
of FY 2020. The net owned funds adjusted for DTA, Intangible assets was (-) ` 189.42 crores at the end of FY 2020 as against
` 802.28 crores as at the end of FY 2019.
The Capital Adequacy Ratio (CAR) as on 31st March 2020 as per BASEL III is 1.12%. The Tier-I and Tier-II components of Capital
Adequacy Ratio were maintained at (-) 0.88% and 2.00% respectively.
9. POSITION OF IND-AS IMPLEMENTATION

The Reserve Bank of India (RBI) issued a circular in February 2016, requiring scheduled commercial banks to implement Indian
Accounting Standards (Ind AS) from April 1, 2018. Thereafter, RBI, vide a press release dated April 5, 2018, deferred the implementation
of Ind AS by one year. Subsequently, RBI through a Circular dated March 22, 2019 has deferred the Ind AS implementation till further
notice, as the legislative amendments recommended by the Reserve Bank towards implementation of Ind AS are still under consideration
of the Government of India. In the meantime, RBI has advised the banks to continue submitting proforma Ind AS financial statements
for every quarter, starting from quarter ended June 30, 2019 with date of transition as April 1, 2019.
The Bank has engaged a Chartered Accountant Firm from Mumbai as consultant to guide the Bank in the preparation of the Proforma
Ind AS financial statements and also constituted a Steering Committee and commenced the process of Ind AS implementation. Bank
is also in the process of identifying a suitable IT Consultant to provide appropriate software solution for treasury, a consultant to assist
in the PD/LGD calculations and also to make modifications in the Core Banking System to enable extraction of data as per Ind AS
requirement to assist for reporting under Ind AS.
In accordance with RBI directions, the Bank has been submitting Quarterly standalone proforma Ind AS financial statements to the
RBI, from time to time.
10. DIVERGENCE IN ASSET CLASSIFICATION AND PROVISIONING FOR NPAs

As per RBI circular no.DBR.BP.BC.No.32/21.04.018/2018-19 dated April 1, 2019, Banks are required to disclose the divergence in
asset classification and provisioning consequent to RBI’s annual supervisory process in their notes to accounts wherever either a) the
additional provisioning requirements assessed by RBI exceeds 10 percent of the reported profit before provisions and contingencies
for the reference period and b) the additional gross NPAs identified by RBI exceeds 15% of the published incremental Gross NPAs
for the reference period. Accordingly the Bank has disclosed the divergence in Asset Classification and Provisioning for NPAs in
compliance to Risk Assessment Report (RAR) of RBI for the financial year 2018-19 in the Notes to the Audited Financial Statements
of the Bank and the same was also filed with the Stock Exchanges.
11. NON-PERFORMING ASSETS (NPA)

During the FY 2019-20 the asset quality deteriorated in banking industry in general and in your bank, many accounts have slipped
to NPA from different segments including Corporate, MSME & Retail. The total slippage during the FY 2019-20 was to the tune of `
1553.24 crores. The Gross NPA as on 31st March 2020 stood at ` 4233.31 crores while the Net NPA was ` 1387.86 crores against
which a provision of ` 2768.32 crores have been made. In percentage terms, the GNPA was 25.39%, Net NPA 10.04% and Provision
Coverage Ratio was 71.25%. With the concerted effort of the recovery teams as well as the branches, the Bank could recover ` 761.38
crores from the NPA Accounts. Despite the good performance under recovery, the huge slippage of accounts to NPA overshadowed
the recovery performance. It is pertinent to mention here that under the NPA Portfolio, majority of the amount is in corporate segment &
again some of the accounts from corporate segment are under reference to NCLT. Hence, recovery was difficult due to moratorium in
the accounts. With dedicated recovery team at Corporate Office and Regional Offices, the Bank is making untiring efforts for improved
recovery performance during the FY 2020-21.
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12. BRANCH AND ATM NETWORK

The Bank's network spread as on 31st March 2020 stood at 566 branches with 558 General Banking branches, 7 Commercial Banking
Branches, 1 Satellite branch and 7 extension counters with its presence spread across 16 States and 3 Union Territories (Puducherry,
Delhi & Chandigarh).
The Bank has added 2 new ATMs during the FY 2019-20 and the ATM network stood at 973 which includes 528 Offsite ATMs.
13. FINANCIAL INCLUSION

Financial Inclusion is aimed at providing banking and financial services to all people in a fair, transparent and equitable manner at
affordable cost. In other words, financial inclusion is delivery of banking services at an affordable cost to vast sections of disadvantaged
and low-income groups.
Inclusive growth is possible only through proper mechanism which channelizes all the resources from top to bottom. Financial inclusion
is an innovative concept which uses alternative techniques to promote banking habits among people from rural and unorganized sectors.
The vision for Financial Inclusion, “convenient access to a basket of basic formal financial products and services that should include
savings, remittance, credit, government-supported insurance and pension products to small and marginal farmers and low income
households at reasonable cost with adequate protection progressively supplemented by social cash transfers, besides increasing
the access of small and marginal enterprises to formal finance with a greater reliance on technology to cut costs and improve service
delivery”.
Your Bank is implementing financial inclusion under Business Correspondent (BC) channel through M/s. Integra Microsystems Private
Limited., who is our technology service provider (TSP) & Corporate Business Correspondent (CBC) covering 134 villages and 230 wards
(364 outlets) linked to 142 Branches with 146 (109) BC Agents through Micro ATMs, which are enabled with AEPS (Aadhaar Enabled
Payment System) and interoperable facility can offer any (bank) customers both onus/off-us transactions like deposits, withdrawals,
Fund Transfer, Balance enquiry & Mini Statement transactions.
PFRDA, GOI has conducted a national level campaign titled “PLEDGE TO PERSIST” under APY for all the banks under different
categories. Among the Private Sector Banks, LVB has emerged as a topper in this campaign and received an award from PFRDA
as “Best Performing Bank”. Atal Pension Yojana is a Social Security Scheme introduced by Govt. of India, aimed at providing a steady
stream of income after the age of 60 to all citizens of India. Under the Old Age Pension distribution 34,999 beneficiaries are being
served at their door-step every month through our Business Correspondent Model.
14. INTERNATIONAL BUSINESS

During financial year 2019-20, the Rupee depreciated by nearly 8.8% against the US Dollar, when compared to 6.25% depreciation
in the Previous fiscal year. The reasons for this move in the Rupee were: 1) Protectionist Trade Wars engaged by US President in the
early part of financial year 2) Concerns over a slowdown in economic growth in India weighed on the rupee and 3) By the last quarter
of fiscal year, COVID pandemic induced economic havoc gained ground. Rupee was one of the poorest performers as compared to its
Asian Peers due to external as well as internal growth woes. RBI foreign exchange reserves reached a high of USD 481 Billion in Feb
2020 only to Drop to USD 477 Billion by end of March 2020 still 16 percent gain YOY. The US Federal Reserve continuously cut the
policy rate throughout the year, initially to accommodate the Trade war induced recession fears, later to accommodate stress induced
by COVID pandemic. Bank of England too followed Federal Reserve in rate cuts. ECB held on to rates. In the reporting financial year,
the Bank has made a foreign exchange turnover of ` 5,115.62 crores and is geared for further higher growth. The export credit stood
at ` 139 crores and outstanding NRI deposit (including NRE INR and F.C. deposit) is ` 970 crores.
15. LIABILITIES PRODUCTS

The imposition of PCA coupled with serious regulatory actions over some Banks has led to the Bank witnessing uncertain deposit
outflow to the extent of ` 7843 crores in FY 2019. Though the bank had been recovering from the after-effects of PCA, the outbreak of
the pandemic has ceased its momentum of growth. We will be expanding our efforts to improve our overall deposit levels in FY 2021.
Key initiatives during FY19-20:
• Being a customer-centric banking institution, our focus will be on improving banking experiences for our customers. As part of a firm
commitment to building caring relationships with senior citizens, we have introduced a new recurring deposit product exclusively
for senior citizens offering them an additional rate of interest.
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• We have enriched our digital channel experiences to align with the Digital India initiative of Government of India. We will be giving
the LVB VISA Signature debit card, a premium debit card to our wealth clients as part of our endeavor to offer exciting discounts
and privileged banking experience to them.
• LVB has been honored with the Best Performing Private Bank Award from PFRDA on January 9, 2020
• Lakshmi Vilas Bank (LVB) has taken a giant leap forward with the launch of its digital customer connect programme LVB JOY “Just
Offers for You”. It is a unique program which features exclusive offers from over 40 plus most popular online and offline brands
across major categories such as lifestyle, dining, healthcare, groceries, shopping, travel, entertainment and business. The new
product has been designed to allow senior citizens to access offers across most popular offline and online pharmacies, hospitals,
diagnostic services, travel and groceries whereas women customers will have access to offers across most popular beauty salons,
spa services, online and offline dining, travel, entertainment etc.
16. ALIGNING TECHNOLOGY WITH BUSINESS OBJECTIVE
Your Bank is consistently enhancing Technology platform to provide better and secured customer experience. Your Bank has introduced
various new features including Personal Finance Manager Dash-Board, Self-user On-Boarding, Bharath Bill Payment Systems (BBPS),
multiple fund transfers etc., in its internet banking for better customer convenience. Your Bank has enhanced its CBS system with latest
API (Application Programming Interface) layer to serve you better through various online channels. Bank has implemented e-KYC
based account opening at all its Branches. Your Bank has modernised its ATM machines with latest technologies to serve you better.
Your Bank also has launched a new mobile responsive website with lead generation features for an effective corporate communication.
17. WEALTH MANAGEMENT / PARABANKING ACTIVITIES:

Life Insurance:
Bank has entered strategic alliance with three leading Life Insurance companies in the country, Max Life Insurance, Aditya Birla Sun
Life Insurance and Pramerica Life Insurance Company Ltd to offer Life Insurance cover to the valued customers of the Bank. The
products offered to our clients are more diversified and tailor made to meet out their requirements.
During the Financial year 2019-20, through fresh Life Insurance premium of ` 22.62 Crores, 5204 lives have been covered earning fee
income of ` 9.40 Crores for the Bank through Life Insurance premium collections (both fresh & renewals) during the year.
General Insurance:
Bank has tied up with Future Generali General Insurance Company Ltd & HDFC Ergo General Insurance Company Ltd to offer Non-
Life Insurance products to the various customer segments. During the year, by way of General Insurance premium of ` 18.75 Crores,
the assets of concerned borrowers and retail customers have been covered, besides earning a fee income of ` 1.41 Crores for the
Bank through General Insurance premium collections.
Health Insurance:
Bank has tied up with M/s. Manipal Cigna Health Insurance Company Ltd to offer Health Insurance Products to the customers; earning
fee income of ` 1.29 Crores for the Bank for the Health Insurance premium of ` 8.05 Crores (both fresh & renewal).
During the year, bank has enrolled 3718 new customers and protected them from their Medical emergencies.
FISDOM
Bank has tied up with M/s. Finwizard Technology Pvt Ltd (widely known as FISDOM) to offer mobile based Wealth management
services to our Customers.
 Fisdom enables end-to-end digital transactions for mutual funds
 Here our customers can invest in equity, debt and liquid instruments through Fisdom and Fisdom has covered almost all leading
AMCs.
 We have acquired 5993 clients during FY20 with fresh AUM of ` 65.46 Crores
 The total AUM as on 31st Mar’20 is ` 99.09 Crores
 Our active Monthly SIP book is ` 2.4 Crores.
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18. RISK
The objective of risk management of the Bank is to achieve optimum return while operating within acceptable level of risk appetite.
The Bank has an independent risk management function which is tasked with managing risk through policies and processes approved
by the Board of Directors. These encompass identification, measurement and management of risks across the various businesses of
the Bank. The risk management function in the Bank strives to scientifically study vulnerabilities of process across business portfolios
through quantitative or qualitative examination of the embedded risks and controls. The function continues to focus on refining and
improving its risk management systems through automation of processes and building and strengthening controls. The overall risk
management function of the Bank is supervised by the Risk Management Committee of the Board of Directors. The Bank has formulated
and adopted a robust risk management framework. The Bank has in place internal committees such as Credit Risk Management
Committee (CRMC), Asset Liabilities Committee (ALCO), Operational Risk Management Committee (ORMC), Business Continuity
Management Committee (BCMC), Information Systems and Steering Committee (ISSC). These internal committees meet frequently
and discuss risk related issues arising from businesses and processes and have active participation from the Top Management of the
Bank. The overall risk appetite and risk philosophy of the Bank is articulated by the Management to the Risk Management Committee
of the Board and Board of Directors. The risk appetite framework provides guidance to the management on the permitted levels of
exposure to various businesses and maps to the business strategy of the Bank. Further the Internal Capital Adequacy Assessment
Process (ICAAP) of the Bank assesses all the significant risks associated with various businesses and projects the requirement of
capital. The independent risk management structure within the Bank is responsible for managing the credit risk, market risk, liquidity risk,
operational risk, other Pillar II risks like reputation risk and strategic risks and exercising oversight on risks associated with outsourcing.
The Bank has in place well-defined policies appropriate for the various risks, viz. credit risk, market risk, operational risk, liquidity risk,
counterparty risk, country risk, reputational risk, strategic risk and outsourcing risk. These are reviewed periodically in order to benefit
from internal and external experience. IT and cyber risk has assumed significance in keeping with the rising risk in these areas and
to keep pace with regulatory advisories.
19. INTERNAL CONTROLS

The Bank has an independent Audit & Inspection Department, which subjects all the branches of the Bank besides the Treasury,
Currency Chests, Service Branches, Regional Offices and every department of the Corporate Office, to regular inspection. With the
launch of Commercial Banking Branches (CBB), which deals with post sanction credit administration functions like documentation,
disbursement and monitoring of Corporate and MSME advances, at seven centres across the country, the CBBs are also subjected to
regular annual inspection. The Bank also carries out regular IS audits covering application systems and processes in business units.
Key areas including Treasury, centralized operations departments and a large number of branches are under Concurrent Audit, which
is carried out by qualified external auditors and meets requirements of Risk Based Supervision. In addition, the Bank also carries out
thematic audits in selected businesses / products from time to time. As part of preventive vigilance mechanism, Vigilance Audits are
conducted at randomly selected branches to assess their preparedness to prevent frauds.
The Audit Committee of the Board, constituted in line with RBI guidelines and as per the requirements of SEBI Regulations, reviews
the adequacy of the audit and compliance functions, including the policies, procedures and techniques. The composition of Audit
Committee of the Board is provided in Annexure-C to this report.
20. HUMAN RESOURCES

After PCA, the staff strength of the Bank has come down from 4557 as on 31.03.2019 to 4349 as on 31.03.2020. In addition, 177 Sales
Personnel were engaged for sales as on 31.03.2020.
The Bank’s focus on training the human resources on a continuous basis gained momentum by conducting online e-learning duly
leveraging technology. Bank has trained considerable number of resources in offsite training programmes conducted by reputed training
institutions such as SIBSTC, NIBM, CAB, IDRBT, IBA, CAFRAL & FEDAI. Further, the Bank had entered into a strategic training
collaboration with M/s. Manipal Global Academy of BFSI for bridging the skill gap and developing the internal talent pool.
21. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE BANK

Disclosure under Section 186 of the Companies Act, 2013 is not applicable for the Bank, being Banking Company.
22. DEPOSITS
Being a banking company, the disclosure requirement as per Rule 8(5) (v) & (vi) of the Companies (Accounts) Rules, 2014 read with
Sections 73 and 74 of the Companies Act, 2013 are not applicable to the Bank.
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23. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

There were no related party transactions during the year under review and Form AOC-2 is not applicable to the Bank. During the FY
2019-20, the Bank did not have any material Related Party Transaction. The Bank has an approved policy on Related Party Transactions,
which has been disclosed on the website and can be viewed at https://www.lvbank.com/policies.aspx
24. OUTLOOK OF THE BANK 2020-21

The country's annual median GDP growth for 2020-21 is projected at (-) 4.5%, with the rapid spread of COVID-19 pandemic manifesting
into an economic and healthcare crisis globally. The pandemic outbreak has severely impacted the economic activities as the country
had to go through a lockdown to check spread of the virus. However, the restrictions are being gradually eased.
Agriculture seems to be the only sector with a silver lining right now. Even though activity in sectors like consumer durables, FMCG
is gaining traction, majority of the companies are still operating at low capacity utilisation rates. Labour availability and feeble demand
remain as major issues for the companies.
The Ministry of Finance in its macroeconomic June 2020 report has stated that India’s economic growth is expected to contract
4.5% in the current fiscal year. The report shows a 6.4% fall in the Gross Domestic Product number than what the government had
estimated in April 2020. The Ministry highlighted that the shrinkage is because of the slower global economic growth amid the ongoing
COVID-19 pandemic.
IMF's records reveal that this is the lowest ever for India since 1961. The IMF does not have the data beyond that year. However,
India’s economy is expected to bounce back in 2021-22 with a robust 6% growth, it said.
The Washington-based multilateral lender said that the COVID-19 pandemic and the multi-phased lockdown imposed to curb its
spread has resulted in a devastating blow to the Indian economy. In its latest edition of the Global Economic Prospect, the World Bank
downgraded its projection of India by a massive negative 9%.
The Banking sector:

• The Reserve Bank of India (RBI) said India's gross domestic product (GDP) growth will be in negative territory in 2020-21 as the
outbreak of coronavirus has disrupted economic activities. Reserve Bank of India (RBI) Governor said the combined impact of
demand compression and supply disruption will depress economic activity in the first half of the current fiscal.
• Assuming that economic activity gets restored in a phased manner in the second half of this year and taking in consideration
favorable base effect, it is expected that combined fiscal, monetary and administrative measures currently undertaken by both the
government and RBI create conditions for a gradual revival of activities in the second half of 2020-21.
• Prime Minister Narendra Modi announced a ` 20 lakh crores stimulus package (encompassing previously announced COVID-19
packages by the Government and RBI) equivalent to about 10% of India's GDP, aimed at making the country self-reliant and
reviving the stalled economy.
• The RBI also announced a slew of measures to help the economy tide over the Covid-19 crisis. These include a six months
moratorium for all term loans, special liquidity facilities, targeted long-term repo operations among other measures. It also announced
significant cut in key lending rate to enable banks lend to end borrowers at a cheaper rate.
• Announcing the latest Monitory Policy decisions, RBI Governor announced the RBI MPC has unanimously voted to maintain the
status quo on policy rates and no further reduction. The RBI Governor also announced stimulus measures, which included additional
liquidity of ` 10,000 crores at repo rate to NABARD and NHB. Among other measures, the RBI allowed stressed MSME borrowers
to restructure debt if their loans were classified as ‘standard’ as on 1st March 2020. The MSME loan restructuring scheme was
already in place, but, due to the coronavirus, the MSME pain has been aggravated, and this warranted additional support, the
Governor added. In an effort to mitigate the impact of COVID-19 on households, the RBI increased the permissible loan to value
ratio (LTV) for loans sanctioned against pledge of gold ornaments and jewellery for non-agricultural purposes from 75% to 90%
till 31st March 2021.
• GDP growth in 2020-21 is estimated to remain in the negative territory with some pick-up in growth impulses in the second half of
2020-21 onwards.
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25. CORPORATE GOVERNANCE

Corporate Governance of the Bank continues to rest on the fundamental pillar of high ethical values, designed to enhance and protect
the interests of all the stakeholders. The Bank has complied with the corporate governance provisions as specified in SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended (“SEBI Listing Regulations”). All the Directors on the
Board have executed deed of covenants and provided the declaration & undertaking individually in line with the recommendations of
Dr.Ganguly Committee Report.
Further pursuant to SEBI Listing Regulations, a Management Discussion and Analysis is presented in Annexure A and Report on Board
Committees is furnished in Annexure B. Composition of the Board of Directors together with the attendance of Directors at various
meetings of the Board, its Committees and General Meetings and the number of directorships held by them along with the details of
Audit Committee of the Board and Stakeholders Relationship Committee are furnished in Annexure C, including composition of the
Audit Committee of the Board. General Shareholders’ information is furnished in Annexure D.
BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and the SEBI Listing Regulations, the Board has carried out annual evaluation
of its own performance (Board as a whole), all of its Directors, Committees of the Board, its Non-Executive Chairman and MD & CEO
(interim). The manner of evaluation conducted during the year under report is furnished as under:
The performance evaluation of the Board as a whole and that of the individual Directors, Managing Director & CEO and of various
committees were conducted based on the “Criteria for evaluation of Independent Directors and the Board” framed by the Nomination,
Remuneration and Compensation Committee of the Board, SEBI Listing Regulations and Guidance Note on Board Evaluation issued
by Securities and Exchange Board of India (SEBI).
The Board had already taken note of the evaluation made by the Independent Directors on the Board at their meeting held on 21.03.2020.
During the evaluation, the Independent Directors had noted that the performance of non-independent directors and the Board as a
whole was found to be satisfactory and the Independent Directors had further made the following observations:
A. Non-independent / Promoter directors are actively participating in the Board / Committee meetings and offering their ideas, involved
in raising of capital.
B. The Chairman of the Board had been knowledgeable, understood the situation and had acted accordingly.
C. The meetings are conducted transparently.
D. The active participation of all the board members in the deliberations is ensured.
Based on the inputs received from the deliberations of the Independent Directors in their meeting and also considering certain
specific criteria depending on the role of the director/committee in the Bank and the criteria for evaluation framed by the Nomination,
Remuneration and Compensation Committee of the Board, the subject of board evaluation consisted of the following:
1. Evaluation of Board as a whole.
2. Evaluation of Board Committees.
3. Evaluation of Individual Directors of the Board.
 Evaluation of Managing Director
 Evaluation of Non-Independent Directors
 Evaluation of Independent Directors
While evaluating the performance of the Board, Board Committees and Individual Directors, the Directors considered various parameters
including those formulated by the Nomination, Remuneration and Compensation Committee of the Board and the Guidance Note on
Board Evaluation prescribed by SEBI. Some of the factors considered included the composition and diversity of the Board, ensuring
healthy Independent to Non-independent Directors ratio, manner of conduct of Board and Committee meetings, etc.
Being governed by the Banking Regulation Act, 1949, SEBI Listing Regulations and Companies Act, 2013, the mandatory Committees
of the Board have been entrusted with specific roles and responsibilities under the relevant regulatory provisions. Besides the mandatory
Committees as prescribed by the regulators, the Board has separately constituted certain Committees with specific reasons.
10
The evaluation of Board Committees were done taking into account their mandate, composition, frequency of their meetings,
independence of the Committees from the Board, contribution of the Committees to the decisions of the Board through recommendations
and to the Management through decisions, etc. The Board also views the recommendations of the Committees, if any, seriously and
takes it into consideration. Based on the evaluation, the performance of the Committees were found to be satisfactory.
The Managing Director & CEO (Interim) of the Bank was evaluated based on various criteria including the Business targets set and the
Bank’s overall performance considering the PCA limitations, gaining of investors’ confidence, regulatory confidence, staff confidence,
etc., within the given limitations and the circumstances, exercising good judgement in managing the financial affairs and budgets of the
organization. It was assessed that he has built good working relationship with Board members and has worked closely and cooperatively
with the board. He has also ensured proper coordination between the Board and the Senior Management, he demonstrates highest
level of integrity (including conflict of interest disclosures, maintenance of confidentiality, etc.) with untiring efforts in raising capital of
the Bank by interacting with various investors and creating an investor friendly environment, maintains smooth rapport with various
Industry Forums and Regulatory Bodies and actively participates in Board and Committee meetings.
Considering the above criteria and the business, the members of the Board requested the Managing Director & CEO (Interim) to ensure
that the Management works more proactively in improving the key business parameters, works towards achieving the business plan
of the Bank and creates good quality and bankable asset portfolio.
The Non-Executive Directors (both Independent and Non-Independent) of the Bank were evaluated based on various factors including
their attendance, ability to understand duties, responsibilities, qualifications, disqualifications and liabilities as a Director, coordination
and rapport with fellow Board Members, approach towards conflict resolution and their contribution in enhancing the Board’s overall
effectiveness, integrity and maintaining of confidentiality, ability to raise appropriate issues at meetings and seek necessary clarifications,
taking advantage of opportunity to upgrade skills by attending professional development programmes, remaining abreast of various
developments in the Indian banking arena and keeping up with the various modifications / re-enactments of statutory enactments
applicable to the Bank like the Companies Act, SEBI Regulations and the Banking Regulation Act, 1949, etc.
The Independent Directors of the Bank were also provided familiarization program about the bank and their ability to bring out
Independent judgment to the issues handled by the Board without getting influenced otherwise. The evaluation with respect to individual
non-executive directors revolved around various factors as mentioned above and it was ensured that the Board members evaluated
their fellow member Directors in the absence of the Director being evaluated.
26. NUMBER OF MEETINGS OF THE BOARD

During the financial year, the Board met 27 times. The Board meetings were held in accordance with the provisions of the Companies
Act, 2013 as amended. The details of the meetings held are provided in the Corporate Governance Report that forms part of this
Annual Report.
27. POLICY ON APPOINTMENT AND REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
According to the Articles of Association of the Bank, the number of Directors of the Bank shall not be less than three and more than
fifteen. The process of due diligence is undertaken in compliance of Directives / Guidelines / Circulars issued by RBI from time to time
in the matter of appointment / re-appointment of Director. The Non-Executive Chairman of the Bank and the Managing Director of the
Bank are appointed with prior approval of the RBI. Based on the vacancies that may arise in the Board from time to time, the Board
follows a due process of appointment of directors through necessary due diligence in line with the regulatory advice given by RBI, SEBI
and MCA by way of Circulars / Guidelines / Regulations / enactments. The Nomination, Remuneration and Compensation Committee
of the Board has formulated criteria for evaluation for the appointment or re-appointment of directors including independent Directors.
The Managing Director & CEO of the Bank is paid remuneration as approved by the RBI but is not paid any sitting fees. The Non-
Executive Chairman of the Bank is paid honorarium as approved by the RBI along with sitting fees paid for attending Board / Board
Committee meetings. Other than the Managing Director & CEO and Part-time Chairman, no other directors are paid any remuneration/
honorarium. But they are paid sitting fees for attending Board and Board Committee Meetings. The details of remuneration of the
Managing Director & CEO and that of the sitting fees paid to the other directors are available elsewhere in the report. The Senior
Management and the other KMPs of the Bank along with other employees are paid remuneration based on internal HR policies of
the Bank. The Senior Management of the Bank along with the KMPs abide by the Code of Conduct prescribed by the Bank. The
code of conduct has been disclosed at the Bank’s website and can be viewed at https://www.lvbank.com/code-of-conduct.aspx. The
Managing Director & CEO, Chief Financial Officer and Company Secretary are the Key Managerial Personnel (KMPs) of the Bank,
as stipulated by the Companies Act, 2013. As on 31.03.2020, other than the Managing Director & CEO (Interim), there are no other
whole-time directors in the bank.
11
In line with RBI circular DBR.No.BC.97/29.67.001/2014-15 dated June 1, 2015 on Guidelines on Compensation of Non-Executive
Directors of Private Sector Banks, Board of Directors had formulated a Compensation Policy. The Compensation Policy for Payment
of Remuneration to Directors has been made available in the website of the Bank and can be accessed at https://www.lvbank.com/
policies.aspx .
28. DECLARATION BY INDEPENDENT DIRECTORS

The Bank has duly obtained necessary declarations from each Independent Director under Section 149(7) of the Companies Act, 2013
that he/she meets the criteria of independence as laid down in section 149(6) of the Companies Act 2013, and Regulation 16 of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and the ‘Fit and Proper’ declaration as prescribed
by the Reserve Bank of India. It is confirmed that the Independent Directors have complied with the code for Independent Directors
prescribed in Schedule IV to the Companies Act as amended.
29. CONFIRMATION ON INDEPENDENT DIRECTORS

The Board confirms that, in its opinion, the Independent Directors fulfil the conditions specified in the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and are independent of the management.
30. FAMILIARISATION PROGRAMME

Pursuant to the Regulation 25(7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended,
the Bank has to conduct a familiarization programme for newly inducted Independent Directors and the Bank has done accordingly.
In compliance with Regulation 46 (2) (i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended, the details of the familiarisation programme conducted are disclosed in the website of the Bank and can be viewed at
https://www.lvbank.com/independent-directors-terms-condition.aspx .
31. BOARD OF DIRECTIOS & KEY MANAGERIAL PERSONNEL

Appointments
• Smt.Supriya Prakash Sen was appointed as an Additional Director on 14th June 2019 pursuant to the provisions of Section 149
(4) and Section 161 of the Companies Act, 2013 and classified as Non-Executive and Independent Director in terms of Regulation
16(1)(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended, and representing Information Technology and Finance categories under majority sector as per Banking Regulation Act,
1949.
• Shri Gorinka Jaganmohan Rao was appointed as an Additional Director on 02nd December 2019 pursuant to the provisions of
Section 149 (4) and Section 161 of the Companies Act, 2013 and classified as Non-Executive and Independent Director in terms of
Regulation 16(1)(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, as amended, representing Risk Management, Payment & Settlement Systems, Finance and Banking Category under Majority
Sector as per Banking Regulation Act, 1949.
• Shri Raghuraj Gujjar was appointed as an Additional Director on 02nd December 2019 pursuant to the provisions of Section 149 (4)
and Section 161 of the Companies Act, 2013 and classified as Non-Executive and Non-Independent Director in terms of Regulation
amended, representing Accountancy category under minority sector as per Banking Regulation Act, 1949.
• Shri Shakti Sinha was appointed as an Additional Director on 02nd December 2019 pursuant to the provisions of Section 149 (4)
and Section 161 of the Companies Act, 2013 and classified as Non-Executive and Independent Director in terms of Regulation
amended, representing Economics, Cooperation, Law, Finance and Human Resources Category under Majority Sector as per
Banking Regulation Act, 1949.
• Shri Satish Kumar Kalra was appointed as an Additional Director on 02nd December 2019 pursuant to the provisions of Section 149
amended, representing Banking, Risk Management, Business Management, Finance and Human Resources Category under
Majority sector as per Banking Regulation Act, 1949.
12
• Smt. Meeta Makhan was appointed as an Additional Director on 23rd January 2020 pursuant to the provisions of Section 149 (4)
and Section 161 of the Companies Act, 2013 and classified as Non-Executive and Independent Director in terms of Regulation
amended, representing Banking & Business Management Category under Minority sector as per Banking Regulation Act, 1949.
• Shri Sanjay Kumar Khemani was appointed as an Additional Director on 23rd January 2020 pursuant to the provisions of Section 149
amended, representing Accountancy & Finance Category under Minority sector as per Banking Regulation Act, 1949.
• Shri K.R.Pradeep was appointed as an Additional Director on 23rd January 2020 pursuant to the provisions of Section 149 (4) and
Section 161 of the Companies Act, 2013 and classified as Non-Executive and Non-Independent Director in terms of Regulation
amended, representing Accountancy & Law category under Minority sector as per Banking Regulation Act, 1949.
• Shri B.K.Manjunath was appointed as an Additional Director on 10th June 2020 pursuant to the provisions of Section 149 (4) and
Section 161 of the Companies Act, 2013 and classified as Non-Executive and Independent Director in terms of Regulation 16(1)(b)
of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended,
representing Accountancy Category under Majority sector as per Banking Regulation Act, 1949.
• Shri Y.N.Lakshminarayana Murthy was appointed as an Additional Director on 30 th July 2020 pursuant to the provisions of
Section 149 (4) and Section 161 of the Companies Act, 2013 and classified as Non-Executive and Independent Director in terms of
Regulation 16(1)(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, as amended, representing Majority Category under Agriculture & Rural Economy sector as per Banking Regulation Act, 1949.
Resignations / Cessation of tenure of appointment

• Shri Kusuma R Muniraju retired from the Board on 19th June 2019 pursuant to Reserve Bank of India directive on Report of the
consultative group of Directors of Banks/Financial Institutions (Dr. Ganguly Group) - Implementation of recommendations dated
09.09.2002 as he has attained 70 years of age.
• Smt. Supriya Prakash Sen, Non-Executive and Independent Director resigned from the Board on 02nd October 2019 after serving
about 3.5 months, providing reason for her resignation as “due to personal reasons” and she had further confirmed that there are
no other material reasons other than those provided in her letter.
• Smt. Anuradha Pradeep, Non-Executive and Non Independent Director resigned from the Board on 01st November 2019.
• Shri Sanjay Kumar Khemani, Non-Executive and Independent Director resigned from the Board on 19th March 2020 after serving
on the Board for about 2 months, providing reason for resignation as “Considering the role of the Committees he was inducted, he
felt that he do not possess domain expertise required for effectively contributing for furtherance of the objective of these committees
and therefore he felt that he would not be able to contribute much to the Bank through these Committees” and he had further
confirmed that there are no other material reasons other than those provided in his letter.
• Shri B.K.Manjunath, Part–time Chairman of our Bank had retired on 5th June 2020 on completion of his tenure of appointment
approved by Reserve Bank of India in terms of Section 10B (1A) of the Banking Regulation Act, 1949.
• Shri Y.N.Lakshminarayana Murthy, Non-Executive and Independent Director of our Bank had retired on closing hours of 17th July
2020 (effective from 18th July 2020) on completion of his tenure of appointment as approved in the 90th Annual General Meeting
of the Bank held on 18th July 2017.
• Shri H.S.Upendra Kamath, Non-Executive and Independent Director of our Bank had retired on closing hours of 07th August 2020
(effective from 08th August 2020) on completion of his tenure of appointment as approved in the 91st Annual General Meeting of
the Bank held on 08th August 2018.
MD & CEO
• Shri Parthasarathi Mukherjee, Managing Director & CEO had submitted his resignation owing to personal reasons in the Board
Meeting held on 28th August 2019 and the Board had accepted the same. Shri Parthasarathi Mukherjee was relieved from his
services at the closing hours on Saturday, 31st August 2019 as per his request.
13
• Shri S.Sundar was Co-opted by the Board as Additional Director of the Bank on 31st December 2019. He was also appointed as
Managing Director & CEO (Interim) of the Bank with effect from 01st January 2020, after obtaining the approval from Reserve Bank
of India.
RBI Additional Director:

Reserve Bank of India, Mumbai vide their letter DoR.PSBD No.3824 /16.05.013 /2019-20 dated November 18, 2019 and order DoR.
PSBD No.3827/16.05.013/2019-20 dated November 18, 2019 has appointed Shri Sundaram Shankar, General Manager, Reserve
Bank of India, Hyderabad Regional Office as Additional Director on the Board in place of Shri Suvendu Pati, General Manager, Chennai
Regional Office for a period of two years with effect from November 18, 2019 to November 17, 2021 or till further orders, whichever
is earlier.
Re-appointment of Director retiring by rotation:

Shri N.Saiprasad, Director will be retiring by rotation at the ensuing 93rd Annual General Meeting and being eligible, offers himself for
re-appointment.
Relationship between Directors inter-se:

None of the Directors of the Board are related inter-se. It may however be noted that Shri Raghuraj Gujjar is currently the Managing
Director of Kare Power Resources Private Limited and Brindavan Hydropower Private Limited, which are promoter group entities
belonging to Shri K.R.Pradeep, the Promoter and non-executive director of the Bank, who holds 2,01,95,000 (94.59%) equity shares
and 2,07,10,024 (99.99%) equity shares in those two entities respectively.
Key Managerial Personnel

Shri Parthasarathi Mukherjee, Managing Director & CEO of the Bank resigned & relived from the services of the Bank on 31st August
2019.
During the financial year, Shri S.Sundar, Chief Financial Officer had resigned from the services of the Bank on 31st December 2019
and was appointed and took charge as MD & CEO (Interim) on 01st January 2020.
Apart from the above, there were no changes in the Key Managerial Personnel during the year.
Shri K.Hariharan, Vice President was appointed and took charge as the Chief Financial Officer of the Bank with effect from 30th June
2020.
32. LIST OF CORE SKILLS / COMPETENCIES IDENTIFIED BY THE BOARD

The Banking Regulation Act, 1949, prescribes that not less than fifty-one percent of the total members of the Board of Directors of
a Banking Company shall consist of persons who shall have special knowledge or practical experience in respect of one or more
of the matters namely, Accountancy, Agriculture & Rural Economy, Banking, Co-operation, Economics, Finance, Law, Small-scale
Industry, Information Technology, Payment & Settlement Systems, Human Resources, Risk Management and Business Management,
any other matter the special knowledge of, and practical experience in, which would, in the opinion of the Reserve Bank of India, be
useful to the Banking Company. Being a Bank, the Board of Directors are bound by the said provisions with regard to the core skills /
expertise /competencies.
The details of the Board of Directors as on 31.03.2020 and further as on the date of this report with their core areas of expertise are
given below:
Sl. No. Name of the Director Areas of Expertise

1 Shri B.K.Manjunath, Chairman1 Accountancy
2 Shri S.Sundar, MD & CEO (Interim) Banking and Accountancy
2
3 Shri Y.N.Lakshminarayana Murthy Agriculture & Rural Economy
4 Shri G.Sudhakara Gupta Business
5 Shri H.S.Upendra Kamath3 Banking (Practical Experience) and Small Scale Industry (Special Knowledge)
6 Shri N.Saiprasad Business
7 Shri Gorinka Jaganmohan Rao Risk Management, Payment & Settlement Systems, Finance and Banking
14
Sl. No. Name of the Director Areas of Expertise

8 Shri Raghuraj Gujjar Accountancy
9 Shri Shakti Sinha Economics, Cooperation, Law, Finance and Human Resources
10 Shri Satish Kumar Kalra Banking, Risk Management, Business Management, Finance and Human
Resources
11 Smt. Meeta Makhan Banking & Business Management
12 Shri K.R.Pradeep Accountancy & Law
1
Shri B.K.Manjunath retired as Chairman of the Bank on 05th June 2020 and was appointed as Additional Director under Non-Executive
and Independent category of the Bank on 10th June 2020.
2
Shri Y.N.Lakshminarayana Murthy retired on 17th July 2020 and was appointed as Additional Director under Non-Executive and
Independent category of the Bank on 30th July 2020.
3
Shri H.S.Upendra Kamath retired on 07th August 2020.
33. DIRECTORS’ RESPONSIBILITY STATEMENT PURSUANT TO SECTION 134(3) (c) OF COMPANIES ACT, 2013
The Board of Directors of your Bank confirms that in the preparation of the annual accounts for the year ended March 31, 2020:
• The applicable accounting standards have been followed along with proper explanation relating to material departures, if any.
• The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and
of the profit and loss of the Company for that period.
• The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the
provisions of applicable laws governing banks in India for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
• The Directors had prepared the annual accounts on a going concern basis.
• The Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are
adequate and were operating effectively; and
• The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems
were adequate and operating effectively.
34. SOCIAL INITIATIVES 2019-2020

Donation
Your Bank as a responsible corporate citizen has been supporting various philanthropic activities by donating such initiatives to the
tune of ` 3.16 Lakhs. Further, your bank has also taken several initiatives in the area of CSR.
Corporate Social Responsibility (CSR)

In accordance with the directives of Government of India, Bank is required to spend 2% of the average net profit of the last 3 Financial
Years or any part thereof on CSR activities. The Bank has disclosed its CSR policy in the website and the same can be viewed at
https://www.lvbank.com/policies.aspx. The Annual Report on the CSR activities undertaken during the year as per the format specified
by the Ministry of Corporate Affairs is forming part of this Report and is annexed to this Report as Annexure-E.
35. BUSINESS RESPONSIBILITY REPORT

The Business Responsibility Report prepared in accordance with the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended has been made available on the Bank’s website at
https://www.lvbank.com/business-responsibility-report.aspx .
15
36. ANNUAL RETURN

The extract of Annual Return in Form No. MGT 9 is annexed herewith as Annexure J. Pursuant to the provisions of Section 134(3) (a)
and Section 92(3) of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules, 2014,
as amended, the Annual Return of the Bank as on March 31, 2020 will be made available on the website of the Bank and can be
accessed at https://www.lvbank.com.
37. STATEMENT ON COMPLIANCE TO APPLICABLE SECRETARIAL STANDARDS

The Bank is in compliance with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI).
38. PARTICULARS OF EMPLOYEES

The disclosures pursuant to the provisions (as amended) of Section 197 read with Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 and the Disclosures pursuant to the provisions of Section 197 (12) read with
Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are enclosed as Annexure-F.
39. EMPLOYEES STOCK OPTION SCHEME

In the year 2010, the shareholders of the Bank have approved the issue of shares through Stock Option Scheme (ESOS 2010). During
FY 2019-2020, total of 10,521options were exercised by the eligible employees. In the year 2017, the shareholders of the Bank have
approved the issue of shares through Employees Stock Option Scheme 2017 (ESOS – 2017). The implementation of both the said
Schemes is in accordance with the applicable SEBI Regulations.
All the options granted so far have been under ESOS 2010 and no options have been granted under ESOS 2017 till date. There
are no material changes made in the Schemes during the year and all the schemes are in compliance of Securities and Exchange
Board of India (Share Based Employee Benefits) Regulations, 2014. Statutory disclosures regarding ESOS have been furnished in
Annexure G to the report and can be viewed at www.lvbank.com.
40. PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The provisions of Section 134(1)(m) of the Companies Act, 2013 and the applicable rule under the Companies (Accounts) Rules, 2014
relating to conservation of energy and technology absorption do not apply to your Bank. The Bank has, however, used Information
Technology extensively in its operations. The Bank continues to encourage the country’s exports and will endeavor to enlarge its
export financing.
41. DETAILS OF MATERIAL CHANGES AND COMMITMENTS, IF ANY AFFECTING THE FINANCIAL POSITION OF THE BANK
WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE BANK TO WHICH THE FINANCIAL
STATEMENT RELATE AND THE DATE OF THE REPORT
1. M/s.Religare Finvest Ltd., had deposited ` 19,52,75,841.26 on 11.11.2016, ` 215,83,03,562.93 on 11.11.2016, ` 153,02,34,680.63
and ` 204,03,12,901.48 on 9.1.2017 with our bank. The said amounts were kept with our Janpath branch. Our Janpath branch
extended deposit loan to M/s.RHL Holdings Ltd and M/s.Ranchem Ltd on 11.11.2016 and 09.01.2017 to an extent of 92% - 95%
of the deposits of M/s.Religare Finvest Ltd.
The bank had liquidated the deposits of M/s.Religare Finvest Ltd on 20.02.2018 and adjusted the proceeds to the loans availed by
M/s. RHL Holding Pvt. Ltd and M/s. Ranchem Ltd due to non-submission of clear intimation/communication and relevant papers/
documents for continuation/renewal of deposit loan facility. M/s. Religare Finvest Ltd questioned the appropriation of said deposits
into the above said loan accounts and filed a commercial suit No.940/2018 before High Court, Delhi against the bank. In this regard,
bank had obtained opinion from two different reputed law firm and advocates opined that the claim is not tenable and bank has
got good case. The said suit is pending for hearing.
Meanwhile, RFL lodged a criminal complaint with EOW, Delhi during the pendency of the above said civil case and FIR was
registered by EOW, Delhi bearing FIR No.189/2019 dated 23.09.2019 under section 409 and 120 B of IPC against the bank,
RHC Holding, Ranchem and their directors & others. Further, we understand that a chargesheet has been filed against Malvinder/
Shivender Singhs & our employees and court is yet to take cognizance of the same.
16
In pursuance of the above said FIR registered by the EOW, Delhi, Enforcement Directorate, New Delhi also registered a case under
PMLA Act and issued summons to our Principal Nodal Officer to furnish certain details about Religare transaction under section
50 of PMLA Act. The investigation is still pending.
The Ministry of Corporate Affairs directed Serious Fraud Investigation Office (“SFIO”) to conduct investigation into the affairs of
Religare Enterprises Limited (“REL”). Accordingly, investigation has been commenced and the same is pending.
2. The Board at its meeting held on April 5, 2019 had approved the scheme of amalgamation of The Lakshmi Vilas Bank Limited
(LVB) (“Transferor Company”) with Indiabulls Housing Finance Limited (IHFL) (“Transferee Company”). In furtherance to the same,
based on the mutual discussion of the management of LVB and IHFL, respectively, the Board at its meeting held on May 3, 2019
had considered and approved amendments to effect merger of IHFL (“Transferor Company 1”) and its wholly owned subsidiary,
Indiabulls Commercial Credit Ltd., (ICCL) (“Transferor Company 2”) into and with LVB (“Transferee Company”) under Sections
230 to 232 and other applicable provisions of the Companies Act, 2013 as amended, Companies (Compromises, Arrangements
and Amalgamations) Rules 2016, and other rules and regulations framed thereunder. The Scheme was subject to the receipt of
approval from the Reserve Bank of India, other Regulatory approvals and all other applicable compliances. Further, on the joint
application filed by the said three entities with Competition Commission of India (CCI) on May 10, 2019, CCI has accorded its
approval by Order under Section 31(1) of the Competition Act, 2002 dated June 20, 2019. The Bank had submitted an application
seeking Reserve Bank of India (RBI) approval on May, 07, 2019 for voluntary amalgamation of Indiabulls Housing Finance Limited
and Indiabulls Commercial Credit Limited into and with the Lakshmi Vilas Bank Limited, however Reserve Bank of India vide
letter dated October 09, 2019, informed that the application for voluntary amalgamation of lndiabulls Housing Finance Limited and
lndiabulls Commercial Credit Limited with The Lakshmi Vilas Bank Limited ("LVB" or "Transferee Company") cannot be approved.
3. The Bank routinely evaluates capital raising options and proposals which are in its best interest.
The Bank has signed preliminary, non-binding letter of intent (Loi) with M/s. Clix Capital Services Private Limited ("Clix Capital")
and M/s. Clix Finance India Private Limited ("Clix Finance") (collectively, the "Clix Group") as on 15thJune 2020 in relation to the
proposed amalgamation of Clix Group with the Bank. Under the non-binding LoI, the proposed amalgamation is subject to completion
of mutual due-diligence in exclusive window within September 15th, 2020, and will be subject to regulatory and other customary
approvals. In the event the discussions between the contracting parties in relation to the proposed transaction is successful and
definitive agreements are executed, we will make appropriate disclosures as required under the provisions of applicable law.
42. DETAILS OF SIGNIFICANT MATERIAL ORDERS PASSED, IMPACTING THE GOING CONCERN STATUS AND COMPANY’S
OPERATIONS IN FUTURE BY REGULATORS OR COURTS OR TRIBUNALS
During the year under review, no Significant Material Orders were passed by any regulators or courts or tribunals against the Bank
other than those disclosed separately in the financial statements, directors report and in the Corporate Governance Report.
43. OTHER PENALTIES IMPOSED BY REGULATORS

 RBI has imposed a monetary penalty of ` 1.00 crores on Bank for non-adhering to IRAC norms observed in statutory inspection
with respect to financial position as on March 31, 2017.
 RBI has imposed a total penalty of ` 83,250/- on account of deficiency like mutilated notes etc., observed in Soiled Notes remittances
made by our currency chest transactions and incoginito visit by RBI officials to respective branch.
44. NUMBER OF CASES FILED, IF ANY AND THEIR DISPOSAL UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORK
PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
In order to provide protection against sexual harassment of women at workplace and for the prevention and redressal of complaints
of sexual harassment and for matters connected therewith or incidental thereto, as sexual harassment results in violation of the
fundamental rights of a woman to equality under Articles 14 and 15 of the Constitution of India and her right to life and to live with
dignity under Article 21 of the Constitution and right to practice any profession or to carry on any occupation, which includes a right
to a safe environment free from sexual harassment, a well-defined policy in line with the provisions of Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act, 2013 has been adopted in the bank. The complaints registered under the
Act, on actions covered under the ambit of Sexual Harassment at work place are handled by a committee represented by two senior
executives of the Bank, a lady executive and an external member. Redressal of such complaints are dealt in a prudent manner, giving
equal opportunity to both the aggrieved and the accused for representation of the case and without affecting the dignity and self-esteem
of the women employee (permanent, contractual, temporary, trainee).
17
Number of complaints pending as on the beginning of the financial year - Nil

Number of complaints filed during the financial year - Nil
Number of complaints pending as on the end of the financial year – Nil
45. VIGIL MECHANISM / WHISTLE BLOWER POLICY

Disclosure of information in the public interest by the employees of an organization is increasingly gaining acceptance by Public bodies
for ensuring better governance standards and probity in the conduct of affairs.
As a proactive measure for strengthening financial stability and with a view to enhance public confidence in the robustness of the
financial sector, RBI has formulated a scheme called “Protected disclosures scheme for private sector and foreign banks”.
In the above perspective, our Bank has formulated and implemented a “Whistle Blower Policy” which is made available in the Bank’s
Website and local intranet. During the year 2019-20, no personnel has been denied access to the Audit committee. The Web link
thereto is https://www.lvbank.com/UserFiles/File/WhistleBlowerPolicy_2015.pdf.
46. CODE OF CONDUCT TO REGULATE, MONITOR AND REPORT TRADING BY INSIDERS IN SECURITIES OF THE LAKSHMI
VILAS BANK LIMITED
The Bank has formulated a Code of Conduct pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended,
to regulate, monitor and ensure reporting of trading by the employees and other connected persons towards achieving compliance
with the SEBI Regulations and is designed to maintain highest ethical standards of dealing in securities of the Bank by persons
to whom it is applicable. The code of conduct and related policy are available in the Bank’s website and can be viewed at
https://www.lvbank.com/insider-trading.aspx
47. AUDITORS
Statutory Auditors:
The Statutory audit of the Bank was carried out by M/s. P. Chandrasekar LLP, Chartered Accountants, Bangalore whose report is
annexed and forms part of this report. The Statutory Central and Branch Auditors have audited all the branches and other offices of the
Bank. The qualified opinion of the Statutory Auditors together with the basis and our response to the same are furnished hereunder:
Observation:
Qualified Opinion:
1. During the financial year ended 31st March 2018, the Bank had adjusted loans aggregating to ` 794 crores extended to RHC Holding
Private Limited and Ranchem Private Limited against deposits of Religare Finvest Limited. The said adjustment has been contested
by Religare Finvest Limited and a suit has been filed against the Bank in May 2018 before the Honourable High Court of Delhi.
The matter still remains sub-judice. Further, the Economic Offences Wing, Delhi (“EOW”) has initiated proceedings against the
Directors of the Bank and SEBI has sought clarification on the above matter. However, as per the Bank, based on legal opinions
obtained against the suit, the said appropriation is lawful and tenable and hence not made any specific provision on this score. The
Reserve Bank of India (“RBI”) vide letter dated 21st November 2019, had advised the Bank to maintain provisions, on a prudential
basis, to cover potential losses for the ‘Claim against the Bank not acknowledged as debt’ in respect of the above-mentioned
matter. In case of adverse judgment, the management needs to provide an additional amount of ` 594 crores after considering the
available contingent provision of ` 200 crores provided in the books. Considering the above, the Provisions (other than Tax) and
Contingencies would have increased, net loss for the year would have increased, shareholders’ funds would have decreased, by
Rs.594 crores each and the Capital Adequacy Ratio (Basel III) would have reduced by 4.50%.
2. Bank has reversed the cumulative provision of Rs.48.70 crores held towards revision of wages due to employees with effect from
November 2017. While the Bank has cited the withdrawal of mandate given to the Indian Banks’ Association (“IBA”) to negotiate
revision of salary on its behalf, as the basis for reversing the provision, there is no evidence to suggest that there will not be any
liability for the wage revision with effect from November 2017. While the quantum of wage revision cannot be determined as on
date, it is likely that the provision required would at least be ` 48.70 crores. Considering the above, the Employees Cost and the
net loss for the year would have increased by ` 24 crores each, other income would have decreased by ` 24.70 crores and other
liabilities and Provisions as at 31st March 2020 would have increased by ` 48.70 crores.
18
3. Bank has recognised net deferred tax asset of Rs.1,185.57 crores as at 31st March 2020, of which Rs.326.01 crores was created
during the year ended 31st March 2020. As mentioned in Note 17 of the Financial Results, the Bank has decided not to opt for reduced
corporate tax rate under Section 115BAA of the Income Tax Act and the deferred tax asset and liability have been calculated with
the existing tax rate. As per the requirements of AS 22 “Accounting for Taxes on Income”, deferred tax assets should be recognised
and carried forward only to the extent that there is a virtual certainty that sufficient future taxable income will be available against
which such deferred tax assets can be realised. In our opinion, considering the recurring losses and in the present scenario of the
Bank going through the Prompt Corrective Action imposed by the RBI, there is no certainty that the Bank will have sufficient future
taxable income to justify the creation of deferred tax asset. Had the deferred tax asset not been created and retained, the net loss
for the year would have been higher by ` 1,185.57 crores.
Response:
Impact is not Quantified
1. “Disputing the said adjustment, M/s.Religare Finvest Limited has filed a suit against the Bank in May, 2018 before the Honourable
High Court of Delhi and the same is being defended appropriately by the Bank. The matter still remains sub-judice. Based on two
independent legal opinion that the Bank’s action is lawful and tenable, no liability is expected. The matters is sub judice”.
Impact is Quantified
2. “Board directed Management to withdraw the mandate given to IBA to negotiate wages of its officers and workmen staff from
1st November 2017. Accordingly, Bank has written separate letters to IBA regarding withdrawal of mandate for Officers and for
workmen staff. Since the mandate stands withdrawn, there is no liability on the Bank to pay any arrears of wages with effect from
1stNovember, 2017. Accordingly, Bank has reversed the entire provision of arrears of wages amounting to ` 48.70 crores.”
3. “Bank has already engaged services of merchant bankers and has received non-binding letter from Clix group for amalgamation
with the bank which is under process. Simultaneously Bank will talk to other investors to raise capital. This will enable the Bank
to grow the business and this along with other cost control measures undertaken by the Bank would generate sufficient profits in
order to absorb DTA.”
Secretarial Auditor:
Pursuant to the provisions of the Companies Act, 2013, the Bank has appointed Shri K Muthusamy, Practising Company Secretary,
Coimbatore (CoP 3176) as the Secretarial Auditor of the Bank for the FY 2019-20. The Secretarial Audit Report dated 15th June 2020
is annexed to this report as Annexure H. There are no qualifications, reservation or adverse remark or disclaimer in the report.
48. LISTING AGREEMENT WITH STOCK EXCHANGES

The Equity Shares of the Bank are listed with the National Stock Exchange of India Limited, Mumbai and BSE Limited, Mumbai to
enhance the liquidity of your equity shares.
49. ACKNOWLEDGMENTS
Your Directors would like to thank the shareholders and customers for their continued goodwill and support. The Board also gratefully
acknowledges the guidance and co-operation received from the Reserve Bank of India and other regulatory and government authorities
like SEBI, NSE, BSE, NSDL, CDSL and Department of Income Tax.
Your Directors would also like to express their sincere appreciation of the contribution made by the management and staff including
the Employees’ Union and Officers’ Association for their support and look forward to a more evolved relationship, as steps are taken
to re-orient the bank for the future.
For and on behalf of the Board of Directors
B.K.Manjunath S.Sundar
Chairman of the Meeting Managing Director & CEO
Place: Chennai
Date: 26.08.2020
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INDEPENDENT AUDITOR’S REPORT

To
The Members of The Lakshmi Vilas Bank Limited
Report on the Audit of the Financial Statements

Qualified Opinion
We have audited the accompanying financial statements of The Lakshmi Bank Limited (“the Bank”), which comprise the Balance Sheet
as at 31st March 2020, the Profit and Loss Account, the Cash Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information. Incorporated in these financial statements are the Returns for the year ended
on that date of 21 Branches and departments audited by us and 562 Branches/ offices audited by statutory branch auditors. The
Branches audited by us and those audited by other auditors have been selected by the Bank in accordance of the guidelines issued
to the Bank by the Reserve Bank of India (“RBI”).
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the
matters described in the Basis for Qualified Opinion paragraph, the aforesaid financial statements give the information required by
the Banking Regulation Act,1949 as well as the Companies Act,2013 in the manner so required for banking companies and give a
true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Bank as at
31st March 2020, and its losses and its cash flows for the year ended on that date.
Basis for Qualified Opinion

1. We draw attention to Note 8 of the Schedule 18 – Notes on Accounts. During the financial year ended 31st March 2018, the Bank
had adjusted loans aggregating to Rs.794 crore extended to RHC Holding Private Limited and Ranchem Private Limited against
deposits of Religare Finvest Limited. The said adjustment has been contested by Religare Finvest Limited and a suit has been filed
against the Bank in May 2018 before the Honourable High Court of Delhi. The matter still remains sub-judice. Further, the Economic
Offences Wing, Delhi (“EOW”) has initiated proceedings against the Directors of the Bank and SEBI has sought clarification on the
above matter. However, as per the Bank, based on legal opinions obtained against the suit, the said appropriation is lawful and
tenable and hence not made any specific provision on this score. The Reserve Bank of India (“RBI”) vide letter dated 21st November
2019, had advised the Bank to maintain provisions, on a prudential basis, to cover potential losses for the ‘Claim against the Bank
not acknowledged as debt’ in respect of the above-mentioned matter. In case of adverse judgment, the Management needs to
provide an additional amount of Rs.594 crore after considering the available contingent provision of Rs.200 crore provided in the
books. Considering the above, the Provisions & Contingencies would have increased, net loss for the year would have increased,
shareholders’ funds would have decreased, by Rs.594 crore each and the Capital Adequacy Ratio (Basel III) would have reduced
by 4.50%.
The audit opinion on the financial statements for the years ended 31st March 2018 and 31st March 2019 was also qualified in respect
of this matter.
2. We draw attention to Note 5.1.1 of the Schedule 18 – Notes on Accounts, which states that the Bank has reversed the cumulative
provision of Rs.48.70 crore held towards revision of wages due to employees with effect from November 2017. While the Bank has
cited the withdrawal of mandate given to the Indian Banks’ Association (“IBA”) to negotiate revision of salary on its behalf, as the
basis for reversing the provision, there is no evidence to suggest that there will not be any liability for the wage revision with effect
from November 2017. While the quantum of wage revision cannot be determined as on date, it is likely that the provision required
would at least be Rs.48.70 crore. Considering the above, Operating Expenses and the net loss for the year would have increased
by Rs.24 crore each, Other income would have decreased by Rs.24.70 crore and Other liabilities & Provisions as at 31st March
2020 would have increased by Rs.48.70 crore.
3. We draw attention to Note 4.9 of the Schedule 18 – Notes on Accounts, which states that the Bank has recognised net deferred tax
asset of Rs.1,185.57 crore as at 31st March 2020, of which Rs.326.01 crore was created during the year ended 31st March 2020.
The Bank has decided not to opt for reduced corporate tax rate under Section 115BAA of the Income Tax Act and the deferred tax
asset and liability have been calculated with the existing tax rate.
As per the requirements of AS 22 “Accounting for Taxes on Income”, deferred tax assets should be recognised and carried forward
only to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred
tax assets can be realised. In our opinion, considering the recurring losses and in the present scenario of the Bank going through
the Prompt Corrective Action imposed by the RBI, there is no certainty that the Bank will have sufficient future taxable income to
justify the creation of deferred tax asset. Had the deferred tax asset not been created and retained, the net loss for the year would
have been higher by Rs.1,185.57 crore.
20
We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under Section 143(10) of the Companies
Act,2013 (“the Act”). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit
of the Standalone Financial Results section of our report. We are independent of the Bank in accordance with the Code of Ethics, as
amended, issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit
of the Financial Results, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of
Ethics, as amended. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern

The financial results indicate that the Bank has incurred a loss of Rs.836.04 crore during the year ended 31st March 2020. The Bank
has been incurring losses for the past 10 Quarters and the Reserve Bank of India has initiated Prompt Corrective Action in September
2019, which inter alia prescribes the Bank to bring in additional capital, restrict further lending to corporates, reduce NPAs and improve
the Provision Coverage Ratio to 70%. There has been a steady decline in the Bank’s deposit base since September 2019 and
increase in the NPA ratios. The Bank’s Tier 1 Capital ratio has turned negative, at -0.88%, as compared to the minimum requirement
of 8.875%. This requires the Bank to take effective steps to augment its capital base in the year 2020-21. We were informed that the
Bank routinely evaluates capital raising options.
In line with the RBI’s COVID-19 Regulatory Package dated 27th March 2020 and 17th April 2020, the Bank has granted a moratorium
of three months on the payment of all instalments and/ or interest, as applicable, falling due between 1st March 2020 and 31st May
2020 to all eligible borrowers classified as “Standard”, even if overdue, as at 29th February 2020.
In the opinion of the Bank, based on their internal assessment and the likely capital infusion, the Bank will be able to realise its assets
and discharge its liabilities in its normal course of business and hence the Financial Results have been prepared on a going concern
basis. The said assumption of going concern is dependent upon the Bank’s ability to achieve improvements in liquidity, asset quality
and solvency ratios, augment its capital base and mitigate the impact of COVID-19 and thus a material uncertainty exists that may
cast a significant doubt on the Bank’s ability to continue as a going concern. However, as stated above, the Bank opines that there
are mitigating factors to such uncertainties.
Our opinion on the financial statements is not modified in respect of this matter.
Emphasis of Matter
1. We draw attention to Note 9 of the Schedule 18 – Notes on Accounts, which describes that the Bank has recognised provision on
loans and overdrafts that were overdue but “Standard” as at 29th February 2020, for which moratorium benefit has been granted,
based on the days past due status as on that date in accordance with the RBI’s COVID-19 Regulatory Package.
2. We draw attention to Note 9 of the Schedule 18 – Notes on Accounts, which describes the uncertainties due to the outbreak of
COVID-19 and Management’s evaluation of its impact on the operations of the Bank. In view of these uncertainties, the impact on
the Bank’s financial results is significantly dependent on future developments.
3. We draw attention to Note 5.1.1 of the Schedule 18 – Notes on Accounts, which describes about the reversal of excess provision for
employee benefits amounting Rs.70.37 crore as per the actuarial valuation report as at 31st March 2020 in accordance with AS 15
“Employee benefits” and this reversal of excess provision is mainly on account of the change in the principal actuarial assumption
of salary escalation rate.
Our opinion on the financial statements is not modified in respect of any of the above-mentioned matters of emphasis.
Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial
statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the
matters described below to be the key audit matters to be communicated in our report.
S. No. Key Audit Matter Auditor’s Response to Key Audit Matter

1 Recognition of Deferred tax assets on carry Principal Audit Procedures:
forward of losses • Considered the taxable profits of the Bank and taxes paid in the past,
Deferred tax assets on unabsorbed depreciation obtained details of carry forward losses under income tax and details
or carry forward of losses are to be recognized of estimates of taxable incomes for future periods without considering
only when there is a virtual certainty supported by further capital infusion, of restructuring and without considering
convincing evidence that sufficient future taxable expected recoveries from assets where resolution proceedings are
income will be available against which such underway.
21

deferred tax assets can be realised. Determination • Tested the period over which the deferred tax assets on such
of virtual certainty is a matter of judgement based unabsorbed losses would be recovered against future taxable income.
on convincing evidence. • Tested the Management`s underlying assumptions in estimating the
Refer Note 4.9 of the Schedule 18 – Notes on future taxable incomes against which such unabsorbed losses would
Accounts be recovered.
2 Adequacy of provisions in respect of Advances Principal Audit Procedures:
Advances are classified as performing and We assessed the Bank’s system in place to identify and provide for
non-performing assets in accordance with the non-performing assets.
prudential norms issued by RBI. The identification Our audit approach consisted testing of the design and operating
of non-performing assets and creation of provision effectiveness of the internal controls and substantive testing as follows:
on such advances involves key judgments relating
• Evaluated the design of internal controls relating to identification and
to performance of borrowers, determination of
making provision for non-performing assets.
security value, manual interventions, management
judgement, regulatory level, etc. • Tested the relevant information technology systems used in
identification and making provision for such NPA as per the RBI
Accordingly, our audit was focused on income
Guidelines including involvement of manual process and manual
recognition, asset classification and provisioning
controls. in relation to income recognition, asset classification and
pertaining to advances due to the materiality of the
provisioning pertaining to advances.
balances and associated impairment provisions.
• Considered Branch audit reports for identification and provisioning for
non-performing assets
• Test checked the identification and provisioning of non-performing
assets in accordance with RBI Guidelines issued from time to time.
• Ensured exceptions noticed during our audit procedures are duly
corrected.
3 Information technology (IT) systems (Flex Principal Audit Procedures:
Cube – Oracle based) used in financial We conducted an assessment and identified key IT applications,
reporting process databases and operating systems that are relevant to our audit and have
The Bank’s operational and financial processes identified CBS and Treasury System primarily as relevant for financial
are dependent on IT systems due to large volume reporting.
of transactions that are processed daily. Our audit approach consisted testing of the design and operating
Accordingly, our audit was focused on key IT effectiveness of the internal controls and substantive testing as follows:
systems and controls due to the pervasive impact • Obtained an understanding of the Bank’s IT control environment, IT
on the financial statements. policies and key changes during the audit period.
• Reviewed the design, implementation and operating effectiveness of
the Bank’s General IT controls over the key IT systems that are critical
to financial reporting on test check basis as per the checklist provided
by the ICAI in its latest Guidance Note on Bank Audit.
• Tested key automated and manual business cycle controls and logic
for system generated reports relevant to the audit on test check basis.
4 Valuation of Investments Principal Audit Procedures:
As per RBI guidelines, Investments are classified We conducted an assessment of the policies, controls, classifications
into Held for Trading (“HFT”), Available for Sale and valuation of investments.
(“AFS”) and Held to Maturity (“HTM”) categories • Reviewed the appropriateness of the valuation, by test checking on
at the time of purchase and HTM investments the pricing, volatility, discount factors.
are at amortised cost and AFS and HFT are at
• Reviewed if the RBI policies are followed.
Mark to Market.
• Reviewed if the financial statements disclosures reflect the Bank’s
Accordingly, our audit was focused on the key
exposure to investments in line with the RBI policies, and Accounting
audit matter, due to the Management’s judgment
Standards.
in determining the value based on the policy of the
Bank, impairment assessments and the impact on
the financial statements.
22

5 Modified audit procedures carried out in light Principal Audit Procedures:
of COVID-19 pandemic We modified our audit procedures as outlined below:
Due to the outbreak of COVID-19 pandemic, • Verified the necessary records, reports, documents and certificates
nationwide lockdown has been imposed by the (mostly the scanned images) electronically through e-mails and remote
Central Government/ State Governments/ Local access to the Branch/ office system and the Core Banking Solution
authorities, which had resulted in restrictions on application.
movement of personnel. Hence, physical visit
• Resolved audit observations through discussions, receipt of digital
to the Branches and offices was not possible in
records, telephonic conversations, video conferencing and e-mails.
most of the cases by us and the Branch auditors.
Accordingly, our audit procedures were carried
out based on the necessary records, reports,
documents and certificates were made available
to us by the Bank through digital medium, e-mail
and remote access to the Core Banking Solution
application.
As we could not gather audit evidence physically
or through meetings with the Bank’s officials, we
have identified the modified audit procedure as a
Key Audit Matter.
Other Matter
Audit of most of the Branches have been performed by us and the Branch auditors, relying on alternative audit procedures, such as
through remote access, on account of restrictions on physical visit to the Branches due to the COVID-19 pandemic.
Our opinion on the financial statements is not modified in respect of this matter.
Information other than the Financial Statements and Auditor’s Report thereon
The Bank’s Board of Directors is responsible for the preparation of the other information. The other information comprises of the CSR
initiatives, Directors’ Report including Annexures to Directors’ Report, Shareholders’ Information, Business Responsibility Report,
Corporate Governance Report, Management Discussion and Analysis Report, List of Branches, Basel III Disclosures, Decade Progress
included in the Bank’s Annual Report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and the Basel III disclosures, and accordingly, we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information, and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our
audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management's Responsibility for the Financial Statements

The Bank's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act,2013 (“the Act”) with respect
to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash
flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and provisions of Section 29 of the Banking
Regulation Act,1949 and circulars and guidelines issued by the Reserve Bank of India (“RBI”) from time to time.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities ; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Bank’s ability to continue as a going concern,
disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Management
either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Bank’s financial reporting process.
23
Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted with SA’s will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Bank
has adequate internal financial controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide
those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements

The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the
Banking Regulation Act,1949 and Section 133 of the Companies Act,2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
As required by sub-section (3) of Section 30 of the Banking Regulation Act,1949, we report that:
(a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the
purpose of our audit except for the matter described in the Basis for Qualified Opinion paragraph and have found them to be
satisfactory;
(b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank;
(c) Since the key operations of the Bank are automated with key applications integrated to the Core Banking System, the audit is
carried out centrally as all the necessary records and data required for the purpose of our audit are available therein. However,
24
during the course of our audit, we have visited 9 Branches and offices. The returns received from the offices and Branches of
the Bank have been found adequate for the purposes of our audit. As mentioned in Other Matter paragraph, audit of most of the
Branches have been performed by us and the Branch auditors, relying on alternative audit procedures, such as through remote
access, on account of restrictions on physical visit to the Branches due to the COVID-19 pandemic.
Further, as required by Section 143(3) of the Act, we report that:
(i) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purpose of our audit except for the matter described in the Basis for Qualified Opinion paragraph;
(ii) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination
of those books and proper returns adequate for the purposes of our audit have been received from Branches not visited by us;
(iii) The reports on the accounts of the Branches audited by Branch auditors of the Bank under Section 143(8) of the Act have been
sent to us and have been properly dealt with by us in preparing this report;
(iv) The Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the
books of account and with the returns received from the Branches not visited by us;
(v) Except for the possible effects of matter described in the Basis for Qualified Opinion paragraph, in our opinion, the financial
statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014, to the extent they are not inconsistent with the accounting policies prescribed by RBI;
(vi) On the basis of written representations received from the Directors as on 31st March 2020 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March 2020 from being appointed as a Director in terms of Section 164
(2) of the Act;
(vii) With respect to the adequacy of the internal financial controls over financial reporting of the Bank and the operating effectiveness
of such controls, refer to our separate Report in "Annexure A"; and
(viii) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules,2014, in our opinion and to the best of our information and according to the explanations given to us:
a. The Bank has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Schedule
18 - Note No. 7 to the financial statements;
b. The Bank does not have any long term contracts including derivative contracts - Refer Schedule 18 - Note No. 3.3 to the
financial statements;
c. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund
by the Bank;
d. With respect to the matter to be included in the Auditor’s Report in accordance with the requirements of Section 197(16) of
the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the Bank being a banking company,
Section 197 of the Act, related to the managerial remuneration is not applicable by virtue of Section 35B(2A) of the Banking
Regulation Act,1949.
For M/s. P.CHANDRASEKAR LLP

(Firm Registration No. 000580S/S200066)
LAKSHMY CHANDRASEKARAN
Place : Bangalore Partner
Date : 10th July, 2020 Membership No. 028508
UDIN: 20028508AAAAAU7760
25
Annexure A to the Independent Auditor’s Report of even date on the financial statements of The Lakshmi Vilas Bank Limited
Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013
We have audited the internal financial controls with reference to financial statements of The Lakshmi Vilas Bank Limited (‘the Bank’)
as at 31st March 2020 in conjunction with our audit of the financial statements of the Bank for the year ended on that date.
Management’s Responsibility for Internal Financial Controls with reference to financial statements
The Bank’s Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal control
over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting (“the Guidance Note”) issued by the Institute of Chartered
Accountants of India (“the ICAI”).
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to Bank’s policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act,2013 (“the Act”).
Auditor’s Responsibility
Our responsibility is to express an opinion on the Bank’s internal financial controls with reference to financial statements based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(“the Guidance Note”) issued by the ICAI and the Standards on Auditing (“the Standards”), prescribed under Section 143(10) of the
Companies Act,2013 to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all
material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference
to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements
included obtaining an understanding of internal financial controls with reference to financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Bank’s
internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements

A bank’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A bank’s internal financial control over financial reporting includes those policies and procedures that:
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of
the assets of the bank;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditure of the bank are being made only in
accordance with authorizations of management and directors of the bank; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
bank’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of
collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that
the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
26
Opinion
In our opinion, the Bank has, in all material respects, adequate internal financial controls with reference to financial statements and
such internal financial controls with reference to financial statements were operating effectively as at 31st March 2020, based on the
internal controls criteria established by the Bank considering the essential components of internal control stated in the Guidance Note
issued by the ICAI.
For M/s. P.CHANDRASEKAR LLP

(Firm Registration No. 000580S/S200066)
Place : Bangalore Partner
Date : 10th July, 2020 Membership No. 028508
UDIN: 20028508AAAAAU7760
27
BALANCE SHEET as on 31st March 2020

(` 000’s)
As at As at
Schedule
31-03-2020 31-03-2019
I. CAPITAL & LIABILITIES
a. Capital 1 336 71 38 319 90 32
b. Reserves & Surplus 2 893 09 12 1572 67 31
c. Deposits 3 21443 19 41 29279 44 08
d. Borrowings 4 755 70 00 921 25 90
e. Other Liabilities & Provisions 5 992 81 60 952 88 68
TOTAL 24421 51 51 33046 16 29
II. ASSETS
a. Cash & Balances with Reserve Bank of India 6 1047 80 43 1654 07 21
b. Balances with Banks and Money at call & Short Notice 7 792 32 01 515 04 07
c. Investments 8 5383 82 95 8430 16 53
d. Advances 9 13827 89 04 20103 25 93
e. Fixed Assets 10 463 42 13 469 95 43
f. Other Assets 11 2906 24 95 1873 67 12
TOTAL 24421 51 51 33046 16 29
Contingent Liabilities 12 7532 83 55 10431 86 20
Bills for collection 968 18 44 976 92 25
Significant Accounting Policies 17
Notes on Accounts 18
Schedules 1 to 12 and 17 to 18 form part of this Balance Sheet.

As per our Report of even date attached
For M/s. P. CHANDRASEKAR LLP B.K. MANJUNATH Y.N. LAKSHMINARAYANA MURTHY
Chartered Accountants Chairman of the Meeting G. SUDHAKARA GUPTA
(FRN - 000580S/S200066) H.S. UPENDRA KAMATH
N. SAIPRASAD
S. SUNDAR GORINKA JAGANMOHAN RAO
Managing Director & CEO RAGHURAJ GUJJAR
SAKTHI SINHA
Partner
K. HARIHARAN SATISH KUMAR KALRA
Membership No. 028508 MEETA MAKHAN
Chief Financial Officer
K. R. PRADEEP
RAJNISH KUMAR
Chennai N. RAMANATHAN SUNDARAM SHANKAR
10th July, 2020 Company Secretary Directors
28
PROFIT AND LOSS ACCOUNT for the year ended 31st March 2020
(` 000’s)
Year ended Year ended

Schedule
31-03-2020 31-03-2019
I. INCOME
a. Interest Earned 13 2206 68 55 2839 89 39
b. Other Income 14 351 34 47 250 31 79
TOTAL 2558 03 02 3090 21 18
II. EXPENDITURE
a. Interest Expended 15 1778 96 29 2279 75 13
b. Operating Expenses 16 794 52 35 822 42 66
c. Provisions & Contingencies 820 58 84 882 13 10
TOTAL 3394 07 48 3984 30 89
III. NET PROFIT FOR THE YEAR -836 04 46 -894 09 71
Profit brought forward -1565 28 82 -671 12 47
TOTAL -2401 33 28 -1565 22 18
IV. APPROPRIATIONS
a. Transfer to Statutory Reserve 0 0
b. Transfer to Capital Reserve 59 26 08 6 64
c. Transfer to Other Reserves 0 0
d. Investment Reserve 0 0
e. Transfer to Special Reserve u/s 36(1)(viii) of the IT Act, 1961 0 0
f. Dividend Paid 0 0
g. Tax on Dividend 0 0
h. Balance carried over to Balance Sheet -2460 59 36 -1565 28 82
TOTAL -2401 33 28 -1565 22 18
Earnings Per Share - Basic (`) -25.16 -34.66
Earnings Per Share - Diluted (`) -25.16 -34.59
Schedules 13 to 16 and 17 to 18 form part of this Profit & Loss Account.

Chartered Accountants Chairman G. SUDHAKARA GUPTA
N. SAIPRASAD
SAKTHI SINHA
Partner
K. R. PRADEEP
RAJNISH KUMAR
29
CASH FLOW STATEMENT for the year ended 31st March 2020
(` in 000’s)
31-03-2020 31-03-2019
CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit as per Profit & Loss Account -836 04 47 -894 09 71
ADJUSTMENTS FOR:
Provisions & Contingencies 820 58 84 882 13 10
Depreciation on Fixed Assets 82 64 82 67 20 93
Loss /(Profit) on sale of assets 61 85 - 82 54
Loss /(Profit) on sale of NBA 1 81 0
Income Tax / T D S paid 0 -10 00 00
Net cash flow before changes in Working Capital 67 82 86 44 41 78
CHANGES IN WORKING CAPITAL :

LIABILITIES : Increase/Decrease in
Deposits -7836 24 67 -4030 04 21
Refinances -165 55 90 -3091 52 13
Other Liabilities -697 64 09 -573 01 61
-8699 44 67 -7694 57 95
ASSETS : Increase/Decrease in
Investments -2963 85 17 -2155 04 01
Advances -6275 36 90 -5664 94 24
Other Assets 1032 59 63 340 41 88
8206 62 43 7479 56 36
Net Cash Flow used in operating activities -424 99 38 -170 59 80
CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of Fixed Assets -78 89 02 -118 70 63
Sale of Fixed Assets 2 09 07 1 45 29
Net Cash Flow used in Investing activities -76 79 95 -117 25 34
CASH FLOW FROM FINANCING ACTIVITIES:
Share issue including share premium net of forfeited shares 173 33 91 442 37 38
Proceeds received from Tier II Bonds 0 0
Repayment of Tier II Bonds 0 0
Dividends paid - 53 43 - 37 32
Net Cash Flow from financing activities 172 80 49 442 00 06
Cash flow for the year -328 98 84 154 14 92
Cash & Cash equivalents at the beginning of the year 2169 11 28 2014 96 36
Cash & Cash equivalents at the year end
1840 12 44 2169 11 28
(refer Schedule 6 & 7)

N. SAIPRASAD
SAKTHI SINHA
Partner
K. R. PRADEEP
RAJNISH KUMAR
30
(` 000’s)
As at As at
31-03-2020 31-03-2019
SCHEDULE 1 - CAPITAL
AUTHORISED CAPITAL
(65,00,00,000 equity shares of ` 10/- each) 650 00 00 500 00 00
(Previous year 50,00,00,000 equity shares of `10/- each)
ISSUED CAPITAL
(33,87,32,277 equity shares of `10/- each).
(Previous year 32,19,21,756 equity of `10/- each) of which 1,68,00,000
shares issued through Preferential and 10,521 shares issued under 338 73 23 321 92 18
“LVB ESOS-2010”.
Subscribed, Called-up and Paid Up Capital
i) 33,67,13,751 equity shares of `10/- each. 336 71 38 319 90 32
(Previous year 31,99,03,230 shares of ` 10/- each) (1,68,00,000
shares issued through Preferential and 10,521 shares issued under
“LVB ESOS-2010”.)
1,26,42,131 Bonus Shares allotted (Previous year 1,26,42,131
ii)
shares)
iii) Shares kept in abeyance 20,18,526, inclusive of Forfeited & lapsed
shares. (Previous year 20,18,526 shares)
iv) Shares Forfeited and lapsed 23,658 (Previous year 23,658 shares) 336 71 38 319 90 32
SCHEDULE 2 - RESERVES & SURPLUS

I. STATUTORY RESERVE
Opening Balance 481 40 46 481 40 46
Additions during the year 0 481 40 46 0 481 40 46
II. CAPITAL RESERVE
Additions during the year 59 26 08 285 85 52 6 64 226 59 44
III. SHARE PREMIUM
Opening Balance 1907 17 71 1529 75 61
Additions during the year 171 47 14 396 58 18
2078 64 85 1926 33 79
Deductions during the year 11 65 51 2066 99 34 19 16 08 1907 17 71
IV. REVENUE & OTHER RESERVES
274 18 03 271 48 05
Deductions during the year 0 274 18 03 0 271 48 05
V. EMPLOYEE STOCK OPTION OUTSTANDING
11 01 53 7 37 52
Deductions during the year 7 05 64 12 86
Less: Transferred to General Reserve 3 95 88 7 24 66
VI. SPECIAL RESERVE U/S 36(1)(viii) OF IT ACT, 1961
Additions during the year 0 62 45 00 0 62 45 00
VII. REVALUATION RESERVE
Additions during the year 0 16 63 13
181 60 81 183 88 55
Depreciation on Revalued Asset 2 76 56 178 84 25 2 27 74 181 60 81
VIII. BALANCE IN PROFIT & LOSS ACCOUNT -2460 59 36 -1565 28 82
893 09 12 1572 67 31
31
(` 000’s)
As at As at
31-03-2020 31-03-2019
SCHEDULE 3 - DEPOSITS
A. I. DEMAND DEPOSITS
1. From Banks 79 80 4 47 18
2. From Others 1383 17 25 1383 97 05 1962 50 14 1966 97 32
II. SAVINGS BANK DEPOSITS 4327 59 56 5552 25 79
III. TERM DEPOSITS
1. From Banks 1 95 00 108 54 22
2. From Others 15729 67 80 15731 62 80 21651 66 75 21760 20 97
21443 19 41 29279 44 08
B. (I) DEPOSITS OF BRANCHES IN INDIA 21443 19 41 29279 44 08
(II) DEPOSITS OF BRANCHES OUTSIDE INDIA NIL NIL
21443 19 41 29279 44 08
SCHEDULE 4 - BORROWINGS
I. BORROWINGS IN INDIA
1. Reserve Bank of India 87 00 00 0
2. Other Banks 0 52 66 40
3. Other Institutions & Agencies* 668 70 00 755 70 00 868 59 50 921 25 90
II. BORROWINGS OUTSIDE INDIA 0 0
* Includes unsecured Tier II bonds of ` 368.70 Cr
755 70 00 921 25 90
(PY ` 368.70 Cr)
SECURED BORROWINGS INCLUDED IN I & II ABOVE 0 0
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

I. Bills payable 41 04 64 64 99 45
II. Inter-office adjustments (net) 37 46 39 0
III. Interest accrued 161 94 68 229 18 76
IV. (i) Others - (including Provisions) 654 04 89 560 39 47
(ii) Contingent Provisions against Standard Assets 98 31 00 98 31 00
992 81 60 952 88 68
SCHEDULE 6 - CASH AND BALANCES WITH

RESERVE BANK OF INDIA
Cash in Hand (including foreign Currency Notes) 367 70 76 333 37 55
Balances with Reserve Bank of India
I) in current account 680 09 67 1320 69 66
II) in other accounts 0 0
1047 80 43 1654 07 21
32
(` 000’s)
As at As at
31-03-2020 31-03-2019
SCHEDULE 7 - BALANCES WITH BANKS & MONEY
AT CALL AND SHORT NOTICE
I. IN INDIA
[i] Balance with Banks
a. in current accounts 11 95 80 45 48 30
b. in other deposit accounts 4 34 11 31 62
16 29 91 45 79 92
[ii] Money at call and short notice
a. with banks 0 0
b. with RBI in reverse repo 755 00 00 249 00 00
c. with other institutions 0 74 96 00
755 00 00 323 96 00
771 29 91 369 75 92
II. OUTSIDE INDIA
[i] Balance with Banks
a. in current accounts 12 47 09 145 28 15
b. in other accounts 8 55 01 0
21 02 10 145 28 15
792 32 01 515 04 07
SCHEDULE 8 - INVESTMENTS
I. INVESTMENTS IN INDIA
I. Government Securities [Including treasury bills, & zero coupon bonds] 4874 80 04 7449 05 05
II. Other approved securities 0 0
III. Shares 33 97 58 124 02 47
IV. Debentures & Bonds 273 70 47 579 13 83
V. Subsidiaries and Joint Ventures 0 0
VI. Others [including Commercial Paper, Mutual Funds, Security Receipt, 201 34 86 277 95 18
Units, etc.]
5383 82 95 8430 16 53
GROSS INVESTMENTS IN INDIA 5749 30 76 8713 15 93
LESS: DEPRECIATION 365 47 81 282 99 40
NET INVESTMENTS IN INDIA 5383 82 95 8430 16 53
II. INVESTMENTS OUTSIDE INDIA NIL NIL
5383 82 95 8430 16 53
33
(` 000’s)
As at As at
31-03-2020 31-03-2019
SCHEDULE 9 - ADVANCES
A. I. Bills purchased & discounted 92 89 37 232 24 13
II. Cash credits, overdrafts & loans repayable on demand 7130 95 87 8963 50 53
III. Term loans 6604 03 80 10907 51 27
13827 89 04 20103 25 93
B. PARTICULARS OF ADVANCES
I. Secured by tangible assets [Including advances against
13694 38 74 19929 18 06
Book Debts]
II. Covered by Bank / Government Guarantees 0 0
III. Unsecured 133 50 30 174 07 87
13827 89 04 20103 25 93
C. SECTORAL CLASSIFICATION OF ADVANCES
I. Priority Sector 6981 67 51 8203 96 85
II. Public Sector 0 0
III. Banks 0 0
IV. Others 6846 21 53 11899 29 08
13827 89 04 20103 25 93
SCHEDULE 10 - FIXED ASSETS

I. PREMISES
At cost 106 27 48 65 24 18
At Revaluation Value 192 12 25 175 49 12
Addition due to Revaluation Value 0 16 63 13
Additions during the year 91 14 41 10 65
299 30 87 298 47 08
Deductions during the year 7 00 7 35
299 23 87 298 39 73
Less: Depreciation to date 27 49 43 23 57 52
Add : Capital Work in Progress 1 82 40 273 56 84 0 274 82 21
II. OTHER FIXED ASSETS (INCLUDING FURNITURE &

FIXTURES)
At Cost 572 62 39 500 80 89
646 17 49 578 40 87
Deductions during the year 11 24 00 5 78 49
634 93 49 572 62 39
Less: Depreciation to date 447 68 58 377 49 17
Add : Capital Work in Progress 2 60 38 189 85 29 0 195 13 22
463 42 13 469 95 43
34
(` 000’s)
As at As at
31-03-2020 31-03-2019
SCHEDULE 11 - OTHER ASSETS
I. Inter-Office Adjustments (net) 0 2 35 38
II. Interest Accrued 113 35 23 194 68 07
III. Tax Paid in Advance and Tax Deducted at Source (net) 376 96 83 375 09 17
IV. Deferred Tax Asset / Liabilities (net) 1185 56 00 859 55 00
V. Stationery & Stamps 2 62 41 2 66 90
VI. Non Banking Assets acquired in satisfaction of claims 137 95 49 139 37 88
VII. Others 1089 78 99 299 94 72
2906 24 95 1873 67 12
SCHEDULE 12 - CONTINGENT LIABILITIES

I. Claims against the Bank not acknowledged as debts 963 68 52 961 75 50
II. Liability for partly paid Investments 0 0
III. Liability on account of outstanding forward exchange contracts 5172 27 85 7538 61 61
IV. Guarantees given on behalf of constituents
In India 966 23 76 1178 53 29
Outside India 43 39 64 58 12 98
V. Acceptances, Endorsements & Other Obligations 322 86 06 637 24 76
VI. Other items for which the Bank is contingently liable 64 37 72 57 58 06
7532 83 55 10431 86 20

31-03-2020 31-03-2019
SCHEDULE 13 - INTEREST EARNED
I. Interest / discount on advances / bills 1657 70 46 2163 15 27
II. Income on Investments 510 38 82 666 34 80
III. Interest on balance with Reserve Bank of India & other inter-bank Funds 23 67 95 6 84 93
IV. Others 14 91 32 3 54 39
2206 68 55 2839 89 39
35
(` 000’s)
31-03-2020 31-03-2019
SCHEDULE 14 - OTHER INCOME
I. Commission, Exchange and Brokerage 80 27 60 115 62 27
II. Profit / Loss on sale of Investments (net) 101 11 43 -18 60 47
III. Profit / Loss on sale of Land, Buildings & Other Assets - 63 66 82 54
IV. Profit / Loss on Exchange Transactions (net) 8 76 64 11 73 41
V. Income earned by way of Dividends from Companies in India. 1 19 67 1 87 13
VI. Miscellaneous Income 160 62 79 138 86 91
351 34 47 250 31 79
SCHEDULE 15 - INTEREST EXPENDED

I. Interest on Deposits 1701 33 78 2102 09 31
II. Interest on Reserve Bank of India / Inter-Bank Borrowings 77 62 51 177 65 82
1778 96 29 2279 75 13
SCHEDULE 16 - OPERATING EXPENSES

I. Payments to and Provision for Employees 336 37 36 401 66 07
II. Rent, Taxes & Lighting 84 10 51 87 92 21
III. Printing & Stationery 6 61 43 9 96 45
IV. Advertisement & Publicity 4 33 58 8 32 12
V. Depreciation on Bank's Property 82 64 82 67 20 93
VI. Director's fees, allowances 1 97 48 1 24 78
VII. Auditors' fees & Expenses (Including Branch Auditors) 1 87 71 1 80 30
VIII. Law Charges 8 71 15 5 58 18
IX. Postage, Telegrams, Telephones, etc. 19 17 68 19 51 20
X. Repairs & Maintenance 6 19 03 2 92 04
XI. Insurance 37 13 39 39 25 83
XII. Other Expenditure 205 38 21 177 02 55
794 52 35 822 42 66
36
SCHEDULE 17
SIGNIFICANT ACCOUNTING POLICIES
A. BASIS OF ACCOUNTING:
The financial statements are prepared following the going concern concept, on historical cost basis unless otherwise stated and
conform to the Generally Accepted Accounting Principles, (GAAP) in India which encompasses applicable statutory provisions,
regulatory norms prescribed by the Reserve Bank of India (RBI) from time to time, Accounting Standards (AS) specified under
Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent applicable and
current practices prevailing in the banking industry in India.
B. USE OF ESTIMATES:
The preparation of the financial statements require management to make estimates and assumptions that affect the reported
amounts of assets and liabilities including contingent liabilities as of the date of the financial statements and the reported income
and expenses during the reported period. The Management believes that the estimates and assumptions used in the preparation
of the financial statements are prudent and reasonable. Actual results could differ from these estimates. The differences, if any
between estimates and actual will be dealt appropriately in future periods.
C. PRINCIPAL ACCOUNTING POLICIES

1. TRANSACTIONS INVOLVING FOREIGN EXCHANGE:
(a) Foreign Currency Assets and Liabilities are evaluated at the exchange rates prevailing at the close of the year as per
the guidelines issued by FEDAI. The resultant profit or loss is accounted for.
(b) Income and Expenditure in foreign currency are translated at the exchange rates prevailing on the date of the respective
transaction.
(c) Outstanding forward exchange contracts in each currency are revalued at the Balance Sheet date at the corresponding
forward rates for the residual maturity of the contract, in accordance with the guidelines of FEDAI and the provisions
of AS-11. The difference between revalued amount and the contracted amount is recognized as profit or loss, as the
case may be.
(d) Contingent liabilities on guarantees, letters of credit, acceptances and endorsements are reported at the rates prevailing
on the Balance Sheet date.
2. INVESTMENTS:
(a) Investments are categorized under the heads ‘Held to Maturity’, Available for Sale, and ‘Held for Trading’ and are valued
in accordance with the guidelines of the Reserve Bank of India
(b) Brokerage / commission etc, paid in connection with the acquisition of investments is charged to revenue and not
included in cost.
(c) Broken period interest paid / received on debt instruments is treated as interest expense / income.
(d) Security receipts are valued at NAV as declared by Securitisation Companies
(e) The excess of acquisition cost over the face value of securities under “Held to Maturity” category is amortised over the
remaining period to maturity.
(f) Costs including brokerage and commission pertaining to investments, paid at the time of acquisition, are charged to
the profit and loss account. Cost of investments is computed based on the Weighted Average Rate method.
(g) Profit / loss on sale of investments in the 'Held to Maturity' category is recognized in the profit and loss account and
profit is thereafter appropriated (net of applicable taxes and statutory reserve requirements) to capital reserve. Profit /
loss on sale of investments in 'Available for Sale' and 'Held for Trading' categories is recognised in the profit and loss
account.
(h) All Repo and Reverse Repo transactions are accounted for as borrowing and lending transactions respectively in
accordance with the extant RBI guidelines.
37
3. ADVANCES:
3.1 In accordance with the prudential norms issued by RBI:
(a) Advances are classified into standard, sub-standard, doubtful and loss assets borrower-wise;
(b) Provisions are made for loan losses, and
(c) General provision for standard advances is made.
3.2 Advances disclosed are net of provisions made for non-performing assets, ECGC claims settled, part recovery towards
NPA accounts receipts held under sundries, and provision made for sacrifice of interest / diminution in the value of
restructured advances measured in present value terms as per RBI guidelines.
4. FIXED ASSETS AND DEPRECIATION:

(a) Fixed assets are accounted for at their historical cost except for Land and Building which are accounted at their revalued
cost.
(b) Software is capitalised along with computer hardware and included under Other Fixed Assets.
(c) Depreciation on assets other than computers are provided on Straight Line Method after considering the useful life
specified in Schedule II to the Companies Act, 2013 except for hand held communication devices(other than Tablets)
which are depreciated in full considering the fast changing technology and obsolescence.
(d) Depreciation on computers and Software are provided for on straight-line method at the rate of 33.33% as per the
guidelines issued by the Reserve Bank of India.
(e) Depreciation for premises, in which land cost and construction cost could not be ascertained separately, is provided
on the total cost.
5. EMPLOYEE BENEFITS:
(a) Annual contributions to the approved Employees’ Gratuity Fund, Approved Pension Fund and Provision for Leave
Encashment benefits are made on actuarial basis and net actuarial gain/loss are recognised as per Accounting
Standard 15. Contribution made by the bank to Provident Fund and Contributory Pension Scheme are charged to
Profit & Loss account.
(b) The Bank follows the intrinsic value method to account for its employee compensation costs arising from grant of
Employee Stock Options.
6. PROVISION FOR TAXATION:

Provision for taxation is made on the basis of the estimated tax liability, after due consideration of the judicial pronouncements
and legal opinion, with adjustment for deferred tax in terms of the Accounting Standard 22 (Accounting for Taxes on Income).
7. REVENUE RECOGNITION:
(a) Income is accounted for on accrual basis.
(b) Interest income on non-performing advances/investments are recognized on realization basis, owing to the significant
uncertainty in collection thereof:
(c) Interest on tax refund from Income Tax Department is accounted based on assessment orders received.
(d) Dividend Income on Investments is accounted based on declaration basis.
8. SEGMENT REPORTING:
(a) The Bank recognises the Business Segment as the Primary Reporting Segment and Geographical Segment as
the Secondary Reporting Segment, in accordance with the RBI guidelines and in compliance with the Accounting
Standard 17.
(b) Business Segment is classified into (a) Treasury (b) Corporate and Wholesale Banking, (c) Retail Banking and (d) Other
Banking Operations.
(c) Geographical Segment consists only of the Domestic Segment since the Bank does not have any foreign branches.
38
9. EARNING PER SHARE:

Basic and Diluted earnings per equity share are reported in accordance with the Accounting Standard 20 “Earnings per
share”. Basic earnings per equity share are computed by dividing net profit by the weighted average number of equity shares
outstanding for the year. Diluted earnings per equity share are computed using the weighted average number of equity
shares and dilutive potential equity shares outstanding during the period.
10. IMPAIRMENT OF ASSETS

The Bank assesses at each balance sheet date whether there is any indication that an asset may be impaired. Impairment
loss, if any, is provided in the Profit and Loss Account to the extent the carrying amount of assets exceeds their estimated
recoverable amount.
11. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

(a) As per the Accounting Standard 29 “Provisions, Contingent Liabilities and Contingent Assets”, the Bank recognises
provisions only when it has a present obligation as a result of a past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the
obligation can be made.
(b) Contingent Liability is recognised and disclosed only when a legal dispute is pending before a court of law/ forum/
Banking Ombudsman.
(c) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that
may never be realised.
12. NET PROFIT:

The net profit as per the Profit & Loss account is arrived at after necessary provisions towards: –
a) Taxation.
b) Advances and other assets.
c) Shortfall in the value of investments
d) Staff Retirement benefits.
e) Other usual and necessary provisions.
13. CASH AND CASH EQUIVALENTS:

Cash and cash equivalents include cash in hand, Balance with RBI, Balance with other Banks and money at Call and Short
Notice.
Cash flows are reported using indirect method, whereby Profit (Loss) before tax is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the bank are segregated.
39
SCHEDULE 18
NOTES ON ACCOUNTS
1. The reconciliation of inter branch transactions has been completed up to 31.03.2020 and tallying of balances is ensured on an
ongoing basis.
2. CAPITAL RAISED THROUGH PREFERENTIAL ISSUE:

During the year 2019-20, the Bank has allotted 1,68,00,000 equity shares of face value of ` 10 each at a premium of ` 102
per share aggregating to ` 188.16 crore to M/s.Indiabulls Housing Finance Limited.
3. DISCLOSURE REQUIREMENTS
3.1 Capital (` in crore)
Items 2019-20 2018-19

i) Common Equity Tier 1 Capital Ratio (%) – (Basel III) -0.88 5.72
ii) Tier 1 Capital Ratio (%) -0.88 5.72
iii) Tier 2 Capital Ratio (%) 2.00 2.00
iv) Total Capital Ratio (CRAR) (%) 1.12 7.72
v) Percentage of the shareholding of the Government of India in public sector bank NIL NIL
vi) Amount of equity capital raised 188.28 460.49
vii) Amount of Additional Tier 1 capital raised, of which
PNCPS :
PDI : NIL NIL
viii) Amount of Tier II Capital raised, of which
Debt capital instruments
Preference Share Capital instruments NIL NIL
3.2. INVESTMENTS (` in crore)
Particulars 2019-20 2018-19

(1) Value of Investments
(i) Gross Value of Investments
(a) In India 5749.31 8713.16
(b) Outside India NIL NIL
(ii) Provisions for Depreciation
(a) In India 365.48 282.99
(iii) Net Value of Investments
(a) In India 5383.83 8430.17
(2) Movement of provisions held towards Depreciation on investments
(i) Opening balance 282.99 100.45
(ii) Add: Provisions made during the year 90.99 189.58
(iii) Less: Write-off / write-back of excess provisions during the year 8.50 7.04
(iv) Closing Balance 365.48 282.99
3.2.1 In respect of securities held under HTM category, premium paid of ` 21.88 crore (previous year ` 29.25 crore) has been
amortized during the year and debited under “Interest received on Investments”.
40
3.2.2 Repo Transactions (in face value terms) (` in crore)

Minimum Maximum Daily Average Outstanding
outstanding outstanding outstanding as on
Particulars
during during during March 31
the year the year the year 2020
Securities sold under repo
I. Government securities 0.00 1187.52 209.08 82.10
(0.00) (2338.18) (384.51) (126.27)
II. Corporate debt securities NIL NIL NIL NIL
(NIL) (NIL) (NIL) (NIL)
Securities purchased under reverse repo
I. Government securities
0.00 1411.34 263.94 709.67
(0.00) (1351.87) (93.81) (267.91)
II. Corporate debt securities NIL NIL NIL NIL
(NIL) (NIL) (NIL) (NIL)
(Previous Year Figures are indicated in brackets)
3.2.3. Non-SLR Investment Portfolio

i) Issuer composition of Non SLR investments: (` in crore)
Extent of
Extent of ‘Below Extent of Extent of
No. Issuer Amount Private Investment ‘Unrated’ ‘Unlisted’
Placement Grade’ Securities Securities
Securities
(1) (2) (3) (4) (5) (6) (7)
1 PSUs 0.23 0.17 - - -
2 FIs - - - - -
3 Banks 8.96 - - - -
4 Private Corporates 547.39 476.39 373.71 58.45 96.20
5 Subsidiaries/ Joint Ventures - - - - -
6 Others 317.92 314.76 85.95 85.95 314.76
7 Less: Provision held towards depreciation (365.48) - - - -
Total 509.02 791.32 459.66 144.40 410.96
Amounts reported under Columns 4, 5, 6 and 7 above may not be mutually exclusive.
41
ii) Non-performing Non-SLR investments (` in crore)

Opening balance 178.19 52.58
Additions during the year 161.91 125.61
Reductions during the year 0.00 0.00
Closing balance 340.10 178.19
Total Provisions held (*) 194.84 135.78
(*) An amount of ` 0.95 crore received towards part settlement is parked under sundries account.
3.2.4 Sale and transfers to / from HTM category

During the year, the book value of securities sold under HTM category exceeds 5% of the book value of investments held in
HTM category as at the beginning of the year. The details of HTM category as on 31.03.2020 are furnished hereunder:
(` in crore)
Market Value 3533.64

Book value 3439.70
Excess of book value over market value for which Provision is not made NIL
3.3 Derivatives
3.3.1 Forward Rate Agreement/ Interest Rate Swap (` in crore)

i) The notional principal of swap agreements 2044.19 1425.10
ii) Losses which would be incurred if counterparties failed to fulfill their obligations
0.00 0.00
under the agreements
iii) Collateral required by the Bank upon entering into swaps 0.00 0.00
iv) Concentration of credit risk arising from the swaps 100% 100%
v) The fair value of the swap book (6.88) (1.36)
3.3.2 Exchange Traded Interest Rate Derivatives (` In crore)

SI.
No.
Notional principal amount of exchange traded interest rate derivatives undertaken
(i)
during the year (instrument-wise) Nil Nil
Notional principal amount of exchange traded interest rate derivatives outstanding
(ii)
at the end of the year (instrument-wise) Nil Nil
Notional principal amount of exchange traded interest rate derivatives outstanding
(iii)
and not "highly effective" (instrument-wise) Nil Nil
Mark-to-market value of exchange traded interest rate derivatives outstanding and
(iv)
not "highly effective" (instrument-wise) Nil Nil
3.3.3 Disclosures on risk exposure in derivatives

Qualitative Disclosure:
The Board of Directors, the Risk Management Committee (RMC), the Asset Liability Management Committee (ALCO), and the
Market Risk Management Department are entrusted with the management of risks in derivatives. Operations in the Treasury
are segregated into three functional areas, namely Front office, Mid-office and Back-office.
42
Treasury Policy approved by the Board of Directors defines the framework for carrying out derivatives business and lays down
policies and processes to measure, monitor and report risk arising from derivative transactions. The policy provides for (a)
appropriate risk limits for different derivative products and (b) authority levels for review of limit breaches and to take appropriate
actions in such events.
The derivatives dealt by the bank are Forward Contracts in the foreign exchange market and Rupee OIS (Overnight Indexed
Swap). Forward contracts are being used to hedge / cover the exposure in foreign exchange arising out of merchant transaction
and trading positions. Rupee Derivatives are executed for hedging or for trading.
To cover the risk arising out of the above derivatives, various risk limits like PV01, VaR, NOOP, AGL, IGL, Stop loss, Deal size,
Counter party limits have been prescribed in the Treasury Policy of the Bank. The same is monitored by Mid-Office which is
independent of Treasury Department and reporting to Chief Risk Officer. The Mid-office monitors the derivatives operations
against prescribed policies and limits on a daily basis and submits MIS and details of exceptions if any on a daily basis.
The Derivative transactions are conducted in the terms of the policy of the Bank as well as the extant guidelines issued by RBI
from time to time.
Quantitative Disclosures (` in crore)
Sl. Currency Derivatives Interest rate derivatives

Particular
No. 2019-20 2018-19 2019-20 2018-19
(i) Derivatives (Notional Principal Amount)
a) For hedging NA NA NA NA
b) For trading NA NA 2044.19 1425.10
(ii) Marked to Market Positions
a) Asset (+) NA NA 42.66 2150.92
b) Liability (-) NA NA 49.54 2287.08
(iii) Credit Exposure NA NA 63.10 35.76
(iv) Likely impact of one percentage change in interest rate (100*
PV01)
a) On hedging derivatives NA NA NA NA
b) On trading derivatives NA NA 4.42 10.20
(v) Maximum and Minimum of 100*PV01 observed during the
year
a) On hedging NA NA NA NA
b) On trading NA NA NA NA
Maximum NA NA 14.27 10.20
Minimum NA NA 0.06 NA
Banks may adopt the Current Exposure Method on Measurement of Credit Exposure of Derivative Products as per extant RBI
instructions
3.3.4 Shifting of securities:

For the year ended 31.03.2020, Bank has shifted securities amounting to ` 300 crore (Face Value) (Previous year ` 628.66
crore Face Value) from HTM to AFS category and there was no loss on such transfer (Previous year – No loss). Further, Bank
has shifted securities amounting to ` 279.13 crore (Face Value) (Previous year ` 872.08 crore Face Value) from AFS to HTM
category and loss which arose on such transfer amounting to ` 8.50 crore has been provided during the year. (Previous year
` 7.04 crore)
43
3.3.5 SLR Securities (` In crore)

As at 31.03.2020 As at 31.03.2019
Particulars
Book Value Market Value Book Value Market Value
Government Securities SLR (CG, SG,TB) 4874.80 4970.78 7,452.83 7,237.73
Approved securities – SLR 0.00 0.00 0.00 0.00
3.4 Asset Quality

3.4.1 Non-Performing Assets (` in crore)
(i) Net NPAs to Net Advances (%) 10.04% 7.49%
(ii) Movement of NPAs (Gross)
(a) Opening balance 3358.99 2694.21
(b) Additions during the year 1553.24 1412.21
(c) Reductions during the year 678.92 747.43
(d) Closing balance 4233.31 3358.99
(iii) Movement of Net NPAs
(b) Additions during the year 1036.69 1037.93
(c) Reductions during the year 1155.12 989.53
(iv) Movement of provisions for NPAs (excluding provisions on standard assets)
(b) Provisions made during the year 1136.38 995.63
(c) Write-off/ write-back of excess provisions 153.32 379.41
3.4.2 Divergence in the asset classification and provisioning:

In terms of the RBI Circular DBR.BP.BC.No. 32/21.04.018/2018-19 dated 1st April 2019, banks are required to disclose the
divergences in asset classification and provisioning consequent to RBI's annual supervisory process in their notes to accounts
wherever either a) the additional provisioning requirements assessed by RBI exceeds 10% of the reported profit before provisions
and contingencies for the reference period or b) the additional Gross NPAs identified by RBI exceed 15% of the published
incremental Gross NPAs for the reference period, or both. Accordingly, divergence in Asset Classification and Provisioning for
NPAs in compliance to Risk Assessment Report (RAR) of RBI for the financial year 2018-19 is reported hereunder.
(` in crore)
S. No. Particulars Amount
1. Gross NPAs as on March 31, 2019 as reported by the bank 3358.99
2. Gross NPAs as on March 31, 2019 as reported by RBI 3415.98
3. Divergence in Gross NPAs (2-1) 56.99
4. Net NPAs as on March 31, 2019 as reported by the bank 1506.29
5. Net NPAs as on March 31, 2019 as reported by RBI 1451.37
6. Divergence in Net NPAs (5-4) -54.92
7. Provisions for NPAs as on March 31, 2019 as reported by the bank 1785.27
8. Provisions for NPAs as on March 31, 2019 as reported by RBI 1897.17
9. Divergence in Provisioning (8-7) 111.90
10. Reported Net Profit after Tax (PAT) for the year ended March 31, 2019 -894.10
11. Adjusted (notional) Net Profit after Tax (PAT) for the year ended March 31, 2019 after taking
-1006.00
into account the divergence in provisioning
(Resultant impact of the RBI divergence has been duly considered and given effect to as of 31.03.2020).
44
3.4.3 Particulars of Accounts Restructured
Disclosure of Restructured Accounts
(` in crore)
Under SME Debt Restructuring

Type of Restructuring Under CDR Mechanism Others Total
Mechanism
Sl
No. Asset Classification
Details
Standard
Sub-Standard
Doubtful
Loss
Total
Standard
Sub-Standard
Doubtful
Loss
Total
Standard
Sub-Standard
Doubtful
Loss
Total
Standard
Sub-Standard
Dou btful
Loss
Total
1 Restructured Accounts No. of

0 0 4 0 4 1 0 1 0 2 2 1 7 0 10 3 1 12 0 16
as on April 1 of the FY borrowers
(opening figures*)
Amount
0.00 0.00 268.59 0.00 268.59 0.10 0.00 0.54 0.00 0.64 40.19 0.13 181.42 0.00 221.74 40.28 0.13 450.55 0.00 490.97
outstanding
Provision
0.00 0.00 0.60 0.00 0.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.60 0.00 0.60
thereon
2 Fresh restructuring/ No. of

0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 1 0 0 0 1
Additional facilities during borrowers
the year **
Amount
0.00 0.00 0.08 0.00 0.08 1.20 0.00 0.00 0.00 1.20 0.00 0.00 0.10 0.00 0.10 1.20 0.00 0.10 0.00 1.30
outstanding
45
Provision
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
thereon
3 Upgradations to No. of
0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1
restructured standard borrowers
category during the FY
Amount
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 36.36 0.00 0.00 0.00 36.36 36.36 0.00 0.00 0.00 36.36
outstanding
Provision
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
thereon
4 Restructured standard No. of

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
advances which borrowers
cease to attract higher
provisioning and / or Amount
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
additional risk weight outstanding
at the end of the FY
Provision 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
and hence need not be
thereon
shown as restructured
standard advances at the
beginning of the next FY
3.4.3 Particulars of Accounts Restructured (Contd.)
Disclosure of Restructured Accounts
(` in crore)
Under SME Debt Restructuring

Type of Restructuring Under CDR Mechanism Others Total
Mechanism
Sl
No. Asset Classification
Details
Standard
Sub-Standard
Doubtful
Loss
Total
Standard
Sub-Standard
Doubtful
Loss
Total
Standard
Sub-Standard
Doubtful
Loss
Total
Standard
Sub-Standard
Dou btful
Loss
Total
5 Downgradations of No. of
0 0 -1 1 0 0 0 0 0 0 0 -1 1 0 0 0 -1 0 1 0
restructured accounts borrowers
during the FY
Amount
0.00 0.00 -106.96 106.96 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.13 0.13 0.00 0.00 0.00 -0.13 -106.83 106.96 0.00
outstanding
Provision
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
thereon
6 Write-offs/recovery of No. of
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
restructured borrowers
accounts during the
FY *** Amount
0.00 0.00 5.00 0.00 5.00 0.07 0.00 0.00 0.00 0.07 3.62 0.00 0.86 0.00 4.48 3.69 0.00 5.86 0.00 9.55
46
outstanding
7 Restructured Accounts No. of

0 0 3 1 4 2 0 1 0 3 1 0 8 0 9 3 0 12 1 16
as on March 31 of the borrowers
FY (closing figures****)
Amount
0.00 0.00 156.71 106.96 263.67 1.23 0.00 0.54 0.00 1.77 0.20 0 180.80 0.00 181.00 1.43 0.00 338.04 106.96 446.43
outstanding
Provision
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
thereon
* The reported provision figures are Diminution/Erosion in fair value.
** The amount of ` 0.18 crore relates to miscellaneous charges debited in the existing restructured accounts during the year.
*** Includes cash recovery of ` 5.86 crores in 7 accounts.
**** Excluding the figures of Standard Restructured Advances which do not attract higher provisioning or risk weight.
3.4.4 Details of financial assets sold to Securitization / Reconstruction Company for Asset Reconstruction
(A) Details of Sales: (` in crore)

i. No. of accounts NIL 5
ii. Aggregate value (net of provisions) of accounts sold to SC/RC NIL 148.16
iii. Aggregate consideration NIL 89.29
iv. Additional consideration realized in respect of accounts transferred in earlier years NIL 0.00
v. Aggregate profit/ (loss) over net book value NIL -58.87
(B) NPA Assets Sold to ARC: (` in crore)
Backed by NPAs
sold by other banks /
Backed by NPAs
financial institutions /
sold by the bank as Total
Particulars non-banking financial
underlying
companies
as underlying
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19

Book value of investments in
313.01 329.54 1.75 2.46 314.76 332.00
security Receipts as at 31st March
C. Disclosures of investment in Security Receipts: (` in crore)
SRs issued more

SRs Issued within SRs issued more
Particulars than 5 years ago but
past 5 years than 8 years ago
within past 8 years
(i) Book value of SRs backed by NPAs sold by
120.50 120.48 72.03
the Bank as underlying
Provision held against (i) 0.00 46.29 72.03
(ii) Book value of SRs backed by NPAs sold
by other banks/financial institutions/non- 0.00 0.00 1.75
banking financial companies as underlying
Provision held against (ii) 0.00 0.00 1.75
Total (i) + (ii) 120.50 120.48 73.78
3.4.5 Details of non-performing financial assets purchased/sold (from/to other Banks)

A. Details of non-performing financial assets purchased: (` in crore)

1 (a) No. of accounts purchased during the year NIL NIL
(b) Aggregate outstanding NIL NIL
2 (a) Of these, number of accounts restructured during the year NIL NIL
(b) Aggregate outstanding NIL NIL
47
B. Details of non-performing financial assets sold: (` in crore)

1. No. of accounts sold NIL NIL
2. Aggregate outstanding NIL NIL
3. Aggregate consideration received NIL NIL
3.4.6 Provisions on Standard Assets (` in crore)

Provisions towards Standard Assets 98.31 98.31
3.5 Business Ratios

(i) Interest Income as a percentage to Working Funds 6.89 7.41
(ii) Non-interest income as a percentage to Working Funds 1.10 0.65
(iii) Operating Profit as a percentage to Working Funds -0.05 -0.03
(iv) Return on Assets (%) -2.61 -2.32
(v) Business (Deposits plus advances) per employee (` in crore) 8.42 10.42
(vi) Profit per employee (` in crore) -0.18 -0.18
3.6 Asset Liability Management

Maturity pattern of certain items of assets and liabilities (` in crore)
Over 3 Over 6 Over 1 Over 3

15 to 29 days
2 to 7 8 to 14 months & months year & years & Over 5
Items 1Day 28 to 3 Total
days Days up to 6 & up to up to up to 5 years
Days months
months 1 year 3 years years
Deposits 61.68 354.14 403.63 296.22 1123.47 1671.20 2088.74 9177.00 823.27 5443.82 21443.19
(348.60) (696.17) (903.19) (418.15) (1896.63) (1595.31) (3604.61) (12004.99) (904.11) (6907.68) (29279.44)
Advances (Net) 78.00 357.08 387.60 486.38 1068.47 1311.25 2723.34 4671.76 1041.53 1702.43 13827.89
(128.27) (726.95) (847.50) (1081.31) (3777.34) (347.37) (1109.69) (8430.58) (1280.89) (2373.36) (20103.26)
Investments (Net) 81.83 133.56 0.00 15.00 531.44 400.54 33.98 422.10 657.33 3108.02 5383.82
(84.06) (183.83) (0.00) (0.00) (39.24) (32.41) (905.07) (340.24) (295.05) (6550.28) (8430.17)
Borrowings 0.00 0.00 0.00 0.00 0.00 0.00 300.00 137.50 178.10 140.10 755.70
(0.00) (252.56) (0.00) (0.00) (0.00) (0.00) (0.00) (350.50) (78.10) (240.10) (921.26)
Foreign Currency 44.03 0.32 0.44 1.37 9.99 11.19 0.00 8.55 0.00 0.00 75.89
assets (152.68) (0.58) (3.04) (1.80) (9.71) (21.49) (0.00) (0.00) (0.00) (0.00) (189.30)
Foreign Currency 3.77 0.24 0.00 0.26 6.51 20.18 14.42 18.95 8.56 0.00 72.89
liabilities (1.03) (6.32) (7.83) (2.06) (5.45) (5.45) (25.28) (40.66) (17.88) (35.99) (147.94)
(Previous Year Figures are indicated in brackets)

The above data have been compiled by the management on the basis of the guidelines of RBI which have been relied upon
by Auditors
48
3.7 Exposures
3.7.1 Exposure to Real Estate Sector (` in crore)
Category 2019-20 2018-19
a) Direct exposure
(i) Residential Mortgages – 1443.21 1760.76
Lending fully secured by mortgages on residential property that is or will be
occupied by the borrower or that is rented;
(ii) Commercial Real Estate –
Lending secured by mortgages on commercial real estates (office buildings,
retail space, multi-purpose commercial premises, multi-family residential 1216.03 1512.99
buildings, multi-tenanted commercial premises, industrial or warehouse space,
hotels, land acquisition, development and construction, etc.). Exposure would
also include non-fund based (NFB) limits;
(iii) Investments in Mortgage Backed Securities (MBS) and other securitised
exposures –
a. Residential, 0.00 0.00
b. Commercial Real Estate. 0.00 0.00
b) Indirect Exposure
Fund based and non-fund based exposures on National Housing Bank (NHB) and
116.17 126.27
Housing Finance Companies (HFCs).
Total Exposure to Real Estate Sector 2775.41 3400.02
3.7.2 Exposure to Capital Market (` in crore)

(i) Direct investment in equity shares, convertible bonds, convertible debentures
and units of equity-oriented mutual funds the corpus of which is not exclusively 49.01 201.61
invested in corporate debt;
(ii) Advances against shares / bonds / debentures or other securities or on clean basis
to individuals for investment in shares (including IPOs / ESOPs), convertible bonds, NIL NIL
convertible debentures, and units of equity-oriented mutual funds;
(iii) Advances for any other purposes where shares or convertible bonds or convertible
5.12 5.58
debentures or units of equity oriented mutual funds are taken as primary security;
(iv) Advances for any other purposes to the extent secured by the collateral security of
shares or convertible bonds or convertible debentures or units of equity oriented
mutual funds i.e. where the primary security other than shares/convertible bonds/ 7.55 11.68
convertible debentures/units of equity oriented mutual funds does not fully cover the
advances;
(v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf
NIL 150.00
of stockbrokers and market makers;
(vi) Loans sanctioned to corporates against the security of shares / bonds/debentures or
other securities or on clean basis for meeting promoter’s contribution to the equity of NIL NIL
new companies in anticipation of raising resources;
(vii) Bridge loans to companies against expected equity flows / issues; NIL NIL
(viii) Underwriting commitments taken up by the banks in respect of primary issue of
shares or convertible bonds or convertible debentures or units of equity oriented NIL NIL
mutual funds;
(ix) Financing to stockbrokers for margin trading; NIL NIL
(x) All exposures to Venture Capital Funds (both registered and unregistered) NIL NIL
Total Exposure to Capital Market 61.68 368.87
49
3.7.3 Risk Category wise Country Exposure (` in crore)
Exposure Provision held Exposure Provision held

Risk Category (net) as at as at (net) as at as at
31-3-2020 31-3-2020 31-3-2019 31-3-2019
Insignificant 30.00 NIL 206.92 NIL
Low 15.76 NIL 24.61 NIL
Moderate 0.00 NIL 2.83 NIL
High 0.00 NIL 0.20 NIL
Very High 0.23 NIL 0.00 NIL
Restricted 0.00 NIL 0.00 NIL
Off-credit 0.00 NIL 0.00 NIL
Total 45.99 NIL 234.56 NIL
As the bank’s exposure for the year in respect of risk category wise country exposure (Foreign exchange transactions) is less
than 1% of total assets of the bank, no provision is considered necessary.
3.7.4 Details of Single Borrower Limit (SBL)/ Group Borrower Limit (GBL) exceeded by the bank.
A. SBL exceeded by the Bank for the period 01/04/2019 to 31/03/2020 NIL (PY NIL)
B. GBL exceeded by the Bank for the period 01/04/2019 to 31/03/2020 NIL (PY NIL)
3.7.5 Unsecured Advances (Amount of Advances for which, intangible securities have been taken) (` in crore)
As on As on
Particulars
31-03-2020 31-03-2019
The total amount of Advances for which intangible Securities such as charge over the
NIL NIL
rights, licenses, Authority, etc. have been taken.
Estimated value of such intangible collaterals NIL NIL
3.8 Miscellaneous
3.8.1 Disclosure of Penalties imposed by RBI:
A penalty of ` 1.00 Cr has been imposed on account of non-compliance with IRAC norms for the year ended March 31, 2017
and a penalty of ` 83,250 has been imposed on account of deficiency like mutilated currencies observed in cash remittances
made by currency chest to RBI.
4. Disclosure in terms of Accounting Standards

4.1 Accounting Standard 5 - Net Profit or Loss for the period, prior period items and changes in Accounting Policies:
There are no material prior period income and expenditure included in the Profit & Loss account, which requires a disclosure
as per Accounting Standard 5.
There has been no change in the Accounting policies followed by the bank during the year ended 31.03.2020 as compared to
those in the preceding financial year ended 31.03.2019.
4.2 Accounting Standard 9 - Revenue Recognition:

Bank is following accrual method of accounting and hence no disclosure is warranted under Accounting Standard 9.
50
4.3 Disclosure in terms of Accounting Standard 10 – Fixed Assets (Revaluation of Premises)

In accordance with Banks stated policy, revaluation of the premises in its fixed assets portfolio was carried out during the years
2010-11, 2015-16 &2018-19 by the Bank using the services of Banks approved empanelled Independent valuers. Appreciation
arising out of such revaluation was accounted with corresponding credit to Revaluation Reserves. The details are as under
(` In crore)
Original Cost of Premises 107.11

Incremental Value on account of revaluation made in 2011 - ` 81.51
Incremental Value on account of revaluation made in 2016- ` 93.98 192.12
Incremental Value on account of revaluation made in 2019- ` 16.63
Depreciation on Original Cost - `14.28
27.49
Depreciation on Revalued Cost - ` 13.21
Written Down Value of such revalued assets 271.74
Capital Work in Progress 1.82
Written down Value (Including Capital WIP) 273.56
4.4 Accounting Standard 15 – Employee Benefits

4.4.1 The Bank is following Accounting Standard 15 (Revised 2005) “Employee Benefits” as under:
In respect of contributory plans viz. – Provident Fund and Contributory Pension Scheme, the bank pays fixed contribution at
pre-determined rates to a separate entity, which invests in permitted securities. The obligation of the Bank is limited to such
fixed contribution.
In respect of Defined Benefit Plans, viz. Gratuity and Pension as well as for Leave encashment, provision has been made
based on actuarial valuation as per the guidelines.
The summarized position of Post-employment benefits and long term employee benefits recognized in the Profit and Loss
account and Balance Sheet as required in accordance with the Accounting Standard -15 (Revised) are as under:
I. Principal Actuarial Assumptions at the Balance Sheet Date

(Expressed as weighted Averages)
Leave
Gratuity Pension
Particulars Encashment
(Funded) (Funded)
(Unfunded)
Discount Rate 6.96% 6.96% 6.96%
Salary Escalation Rate 1.50% 1.50% 1.50%
Attrition Rate 4.00% 4.00% 4.00%
Expected Rate of return on Plan Assets 9.00% 9.00% -
II. Change in the Present value of obligations (` in crore)

Leave
Gratuity Pension
(Funded) (Funded)
(Unfunded)
Present Value of obligations as at the beginning of the year 90.70 345.50 67.04
Interest Cost 5.99 21.90 4.53
Current Service Cost 3.22 67.40 5.63
Past service cost (non-vested benefits) 0 0 0
Past service cost (vested benefits) 0 0 0
Benefits Paid 9.19 61.55 3.84
Actuarial (loss)/gain on obligation (balancing figure) -14.17 -67.90 -17.33
Present Value of obligations as at the year end 76.55 305.34 56.03
51
III. Change in Fair Value of Plan Asset (` in crore)

Leave
Gratuity Pension
(Funded) (Funded)
(Unfunded)
Fair value of Plan Assets at the beginning of the year 91.63 324.49 -
Expected return on Plan Assets 8.24 29.20 -
Employer's Contribution 8.30 50.24 -
Benefits Paid 9.19 61.56 -
Actuarial (loss)/gain on plan assets (balancing figure) -6.78 -14.08 -
Fair Value of Plan Asset at the end of the year 92.20 328.29 -
IV. Actual Return on Plan Assets (` in crore)

Leave
Gratuity Pension
(Funded) (Funded)
(Unfunded)
Expected return on plan assets 8.24 29.20 -
Actuarial gain/(loss) on plan assets -6.78 -14.08 -
Actual return on plan assets 1.46 15.12 -
V. Actuarial Gain / (Loss) recognized (` in crore)

Leave
Gratuity Pension
(Funded) (Funded)
(Unfunded)
Actuarial gain/(loss) for the Period - Obligation -14.17 -67.90 -17.33
Actuarial gain/(loss) for the Period - Plan Assets -6.78 -14.08 -
Total gain/(loss) for the period -20.95 -81.97 -17.33
Actuarial gain/(loss) recognized in the period -7.39 -53.81 -17.33
Unrecognized actuarial gain/(loss) at the end of the year 0.00 0.00 0.00
VI Amount recognized in Balance Sheet (` in crore)

Leave
Gratuity Pension
(Funded) (Funded)
(Unfunded)
Present value of the Obligation 76.55 305.34 56.03
Fair value of plan assets 92.20 328.29 0.00
Difference -15.65 -22.95 56.03
Unrecognized Transitional liability 0.00 0.00 0.00
Unrecognized past service cost (non vested benefits) 0.00 0.00 0.00
Liability recognized in the Balance Sheet -15.64 -22.95 56.03
52
VII Expenses Recognized in Profit & Loss Account (` in crore)

Leave
Gratuity Pension
(Funded) (Funded)
(Unfunded)
Current Service Cost 3.22 67.40 5.63
Interest Cost 5.99 21.90 4.53
Expected return on Plan assets 8.24 29.20 0.00
Net actuarial gain/(loss)recognised in the year -7.39 -53.81 -17.33
Transitional Liability recognized in the year 0.00 0.00 0.00
Past service cost (non-vested benefits) 0.00 0.00 0.00
Past service cost (vested benefits) 0.00 0.00 0.00
Expenses Recognized in Profit & Loss Account -6.42 6.29 -7.16
VIII Movements in the Liability Recognized in the Balance Sheet (` in crore)

Leave
Gratuity Pension
(Funded) (Funded)
(Unfunded)
Opening net Liability * -0.93 21.01 0.00
Opening amount determined under para 55 of AS15R
Expense as Above -6.42 6.29 -7.16
Contribution paid 8.30 50.24 -
Closing Net Liability * -15.64 -22.95 -7.16
* Net liability = Obligation - Funded /provisions.

(` in crore)
Leave
Gratuity Pension
(Funded) (Funded)
(Unfunded)
Opening balance 90.70 345.49 67.04
Closing balance 76.55 305.34 56.03
IX Amount for the Current Period (` in crore)

Leave
Gratuity Pension
(Funded) (Funded)
(Unfunded)
Present value of Obligation 76.55 305.34 56.03
Plan Assets 92.20 328.29 -
Surplus/(Deficit) 15.64 22.95 56.03
53
X Major categories of Plan Assets (As % of Total Plan Assets)

Gratuity Pension
Particulars
(Funded) (Funded)
Government of India Securities 59.02 28.61
High Quality Corporate Bonds / FDs 28.19 19.15
Short Term Debt Instruments 0.35 0.22
Equity Share of listed companies 0.00 0.00
Property 0.00 0.00
Special Deposit Scheme 1.08 0.00
Equity Mutual Fund 3.14 1.26
Balance with Bank Account 5.84 1.44
Balance held at LIC India’s Running account 0.00 34.11
Annuity under Return of Purchase Price 0.00 21.64
Amount Receivable from Bank 0.00 -7.73
Others (Interest Receivables) 2.14 1.30
Suspense 0.24 0.00
Total 100.00 100.00
4.5 Employee Stock Option Scheme

As on 31st March, 2019, the options in force were 18,63,878. During the year, Bank had allotted 10,521 options pursuant to
exercise by employees and 9,49,167 options were cancelled/lapsed. As on 31st March 2020, the number of options in force
are 9,04,190.The Bank has reversed a sum of ` 3.24 crore towards proportionate compensation expenses for the year ended
31st March 2020 (PY- ` 1.39 crore).
4.6. Accounting Standard 17 – Segment Reporting (` in crore)
SEGMENT REPORTING - MARCH 2020

PART A: BUSINESS SEGMENTS YEAR ENDED
PARTICULARS 31-03-2020 31-03-2019
1. SEGMENT REVENUE :
a. Treasury operations 645.30 668.19
b. Corporate/Wholesale banking operations 570.37 705.42
c. Retail banking operations 1330.85 1700.14
d. Other banking operations 11.51 16.46
TOTAL 2558.03 3090.21
2. SEGMENT RESULTS (Operating Profit)
b. Corporate/Wholesale Banking operations -54.22 -26.09
c. Retail banking operations -126.51 -6.70
d. Other banking operations 3.57 8.24
TOTAL -15.46 -11.97
54
SEGMENT REPORTING - MARCH 2020

PART A: BUSINESS SEGMENTS (Contd.) YEAR ENDED
PARTICULARS 31-03-2020 31-03-2019
OPERATING PROFIT -15.46 -11.97
PROVISIONS OTHER THAN TAX 1146.60 1276.56
PROFIT BEFORE TAX -1162.05 -1288.53
Less : Tax expenses -326.01 -394.43
NET PROFIT -836.04 -894.10
3. CAPITAL EMPLOYED :
b. Corporate/Wholesale banking operations 187.96 46.39
c. Retail banking operations 561.74 150.93
d. Unallocated Assets 163.98 1490.24
TOTAL 1229.80 1892.58
PART B – GEOGRAPHICAL SEGMENTS: Since the Bank is having domestic operations only no reporting is made under
international segment.
In reporting of segment Assets, Liabilities, Revenue, Results, certain estimates and assumptions have been considered by the
Management, which have been relied upon by the Statutory Central Auditors.
4.7. Accounting Standard 18 – Related Party Disclosures

Pursuant to Regulation 23(9) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
S. No. Name Designation

Mr.Parthasarathi Mukherjee *
1 Managing Director
(Till 31.08.2019)
Mr. S. Sundar
2 Managing Director
(CFO Till 31.12.2019 & MD From 01.01.2020)
3 Mr. N. Ramanathan Company Secretary
55
(` in crore)
Parent Relatives
Associates / Key
(as per of key
Items/ Related Party Subsidiaries Joint Management Total
ownership Management
Ventures Personnel
or control) Personnel
March 31, 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Borrowings NIL NIL NIL NIL
Deposits NIL NIL NIL NIL
Placement of Deposits NIL NIL NIL NIL
Advances NIL NIL NIL NIL
Investments NIL NIL NIL NIL
Non-Funded Commitments NIL NIL NIL NIL
Leasing/HP arrangements
NIL NIL NIL NIL
provided
Leasing / HP arrangements
NIL NIL NIL NIL
availed
Purchase of Fixed Assets NIL NIL NIL NIL
Sale of Fixed Assets NIL NIL NIL NIL
Interest Paid NIL NIL NIL NIL
Interest Received NIL NIL NIL NIL
Rendering of Services NIL NIL NIL NIL
Receiving of Services NIL 1.03* 0.81 NIL 1.03* 0.81
Management Contracts NIL NIL NIL NIL
* Salary for MD for the period from Apr-19 to Aug-19 has been waived.
4.8. Accounting Standard 20 – Earnings per Share (EPS)

EPS calculation in accordance with the AS-20 issued by the ICAI is as under:

Net profit after Tax (` In crore) -836.04 -894.10
Weighted Average Number of Equity shares 332,303,485 257,971,140
Weighted Average Number of Diluted Equity shares 332,303,485 258,504,067
Earnings per share – Basic (`) -25.16 -34.66
Earnings per share – Diluted (`) -25.16 -34.59
56
4.9. Accounting Standard 22 – Accounting for Taxes on Income

The Bank has recognized net Deferred Tax Assets as on 31st March, 2020 aggregating to ` 1185.57 crore (PY ` 859.56 crore) on
timing differences pertaining to surplus provision for doubtful advances, Provision for Standard Advances, Leave Encashment,
Special Reserve, brought forward loses etc. in accordance with Accounting Standard – 22 on “Accounting for Taxes on Income”
issued by the Institute of Chartered Accountants of India. The major components of DTA / DTL are furnished as under:
(` in crore)
Particulars Deferred Tax Assets Deferred Tax Liabilities

Deferred Tax Components 2019-20 2018-19 2019-20 2018-19
Provision for leave encashment 19.57 23.43 0.00 0.00
Depreciation on fixed assets 0.00 0.00 5.35 10.64
DTA on loss/ provision for advances 1096.55 779.81 0.00 0.00
Provision for wage arrears 0.00 8.63 0.00 0.00
Provision for other assets 96.62 80.15 0.00 0.00
Special Reserve u/s 36(i)(viii) 0.00 0.00 21.82 21.82
CLOSING BALANCE 1212.74 892.02 27.17 32.46
Net DTA 1185.57 859.56
4.10. Intangible Assets - Accounting Standard 26

The Bank has followed AS 26 “Intangible asset” and the guidelines issued by the RBI in this regard.
4.11. Accounting Standard 28 – Impairment of Assets

A substantial portion of the bank’s assets comprises financial assets to which Accounting Standard 28 is not applicable. In the
opinion of the Bank management, there is no impairment of other assets as at 31st March 2020 requiring recognition in terms
of the said Standard.
4.12 Details of movement in provisions in accordance with Accounting Standard 29: (` in crore)
Opening Provision Provisions Closing
Particulars as on made during reversed/ as on
01.04.2019 the year adjusted 31.03.2020
Provision for Standard Assets 98.31 0.00 0.00 98.31
Provision for Bad and Doubtful debts 1785.27 1002.73 19.67 2768.33
Provision for Income Tax 404.84 0.00 0.00 404.84
Provision for depreciation in market value of
282.99 90.99 8.50 365.48
Investments
Provision for Other assets 228.54 50.00 1.40 277.14
Counter cyclical buffer 14.71 0.00 0.00 14.71
Provision for Interest Tax 0.10 0.00 0.00 0.10
Provision for Fringe Benefit Tax 1.90 0.00 0.00 1.90
Provision for Dividend (Including Dividend Tax) 0.00 0.00 0.00 0.00
Provision for Restructured Advances & FITL 29.82 8.53 13.53 24.81
Provision for Foreign Currency Unhedged 0.82 0.15 0.22 0.76
COVID- 19 – Moratorium A/c’s Provision 0.00 10.01 0.00 10.01
57
5. Additional Disclosures
5.1 Provisions and Contingencies: Break up of ‘Provisions & Contingencies’ shown under the head Expenditure in Profit & Loss
Account
(` in crore)

Provision towards Standard Assets 0.00 0.00
Provision towards NPA 1002.08 878.57
Provision for COVID-Moratorium Accounts 10.01 0.00
Provision for depreciation in market value of Investments 90.99 189.58
Provision for Restructured Advances (Economic sacrifice) & FITL -5.02 -10.44
Provision for Foreign Currency Unhedged -0.06 -1.21
Provision for Other Assets 48.60 220.06
Sub Total 1146.60 1276.56
Provision for Income Tax (Net of deferred tax) -326.01 -394.43
Total 820.59 882.13
5.1.1. Reversal of Provisions:

The Bank has withdrawn the mandate given to Indian Banks Association (IBA) to negotiate revision of salary on its behalf for
both its officer staff and clerical staff. Consequently no obligation is cast on the Bank to pay revised wages wef 01.11.2017
and hence the entire provision of ` 48.70 crores (including ` 24 crores for the Current year) created for wage arrears has been
reversed as this no longer payable.
Provision for terminal benefits (Pension, Gratuity and Leave encashment) held in excess of the provision required as at
31st March 2020 as per the actuarial valuation report, has been reversed. Such excess provision reversed during the year
amounted to ` 70.37 cores which includes ` 45.20 crores pertaining to 2019-20.
5.2 Movement of Counter Cyclical Provisioning Buffer (` in crore)

(a) Opening balance in the account 14.71 14.71
(b) Provision made in the accounting year 0.00 0.00
(c) Amount of drawdown made during the accounting year 0.00 0.00
(d) Closing balance in the account 14.71 14.71
5.3 Draw Down from Reserves:

The Preferential Issue expenditure of ` 11.65 crore incurred during the year appropriated on approval from the share premium
account.
5.4 Disclosure of complaints

A. Customer Complaints:
(a) No. of complaints pending at the beginning of the year 1
(b) No. of complaints received during the year 715
(c) No. of complaints redressed during the year 690
(d) No. of complaints pending at the end of the year 26
58
ATM complaints through Dispute Management Systems (DMS) - NPCI

(a) No. of complaints pending at the beginning of the year 59
(b) No. of complaints received during the year 3624
(c) No. of complaints redressed during the year 3675
(d) No. of complaints pending at the end of the year 8
B. Awards passed by the Banking Ombudsman
(a) No. of unimplemented Awards at the beginning of the year 0

(b) No. of Awards Passed by the Banking Ombudsmen during the year 0
(c) No. of Awards implemented during the year 0
(d) No. of unimplemented Awards at the end of the year 0
5.5 Disclosure of Letters of Comfort (LOCs) issued by Banks (` in crore)
Particulars Amount
Letters of comfort issued in earlier years and outstanding as on 01-04-2019 6.33
Add; Letters of Comfort issued during FY 2019-20 0.00
Less: Letters of Comfort expired during FY 2019-20 0.00
Letters of Comfort Outstanding as on 31-03-2020 6.33
5.6 Provisioning Coverage ratio

The provision coverage ratio of the Bank as on 31.03.2020 is 71.25%.(62.08% as on 31.03.2019)
5.7 Bancassurance Business:

Fees, remuneration received from Bancassurance business:
For the year ended 31.03.2020, the Bank received Gross Commission income of ` 12.10 crore from Bancassurance business,
of which ` 9.40 crore was from life insurance segment, ` 1.41 crore was from general insurance segment and ` 1.29 Cr from
health insurance segment.
5.8. Concentration of Deposits, Advances, Exposures and NPAs

5.8.1 Concentration of Deposits (` in crore)
Total Deposits of twenty largest depositors 1579.89

Percentage of Deposits of twenty largest depositors to Total Deposits of the bank 7.37%
5.8.2 Concentration of Advances (` in crore)
Total Advances to twenty largest borrowers 2584.77

Percentage of Advances to twenty largest borrowers to Total Advances of the bank 14.36%
5.8.3 Concentration of Exposures (` in crore)
Total Exposure to twenty largest borrowers/customers 2605.12

Percentage of Exposures to twenty largest borrowers/customers to Total Exposure of the bank on
13.80%
borrowers/customers
59
5.8.4 Concentration of NPAs (` in crore)
Total Exposure to top four NPA accounts 547.09
5.9 Sector-wise Advances (` in Crore)
2019-20 2018-19
% of Gross % of Gross
Sl. Outstanding NPAs Outstanding NPAs
Sector
No Total Gross NPA to Total Total Gross NPA to Total
Advances Advances in Advances Advances in
that Sector that Sector
(A) Priority Sector
Agriculture and allied
1. 3075.03 153.49 4.99% 3226.04 135.67 4.21%
activities
2. Industries 1098.84 198.06 18.02% 1376.76 135.08 9.81%
3. Services 2089.97 346.78 16.60% 2912.05 284.48 9.77%
4. Personal Loans 717.84 16.38 2.28% 689.12 16.24 2.36%
Sub Total (A) 6981.68 714.72 10.23 8203.97 571.47 6.97%
(B) Non Priority Sector
Agriculture and allied
1. 368.08 368.03 94.98% 392.69 56.41 14.37%
activities
2. Industries 2628.13 1243.18 47.30% 3031.18 1193.50 39.37%
3. Services 2924.41 878.43 30.03% 3966.16 612.43 15.44%
4. Personal Loans 2549.60 132.96 5.21% 4706.96 68.18 1.45%
5. Others 1221.39 895.96 73.35% 1655.00 857.00 51.78%
Sub Total (B) 9691.67 3518.58 36.30% 13751.99 2787.52 20.27%
Total (A+B) 16673.34 4233.31 25.39% 21955.96 3358.99 15.30%
5.9.1 Priority Sector Lending Certificates (PSLCs)

The Banks are required to disclose the amount of PSLCs sold/purchased (category-wise) as per RBI/2015-16/366 FIDD.
CO.Plan.BC.23/ 04.09.01/2015-16 dated: April 7, 2016 and is furnished as under:
(` in crore )
Outstanding Outstanding
SI. No. Category of PSLC as on as on
31-03-2020 31-03-2019
1 PSLC-Agriculture 100.00 NIL
2 PSLC-SF/MF 1050.00 NIL
3 PSLC-Micro Enterprises 650.00 NIL
4 PSLC-General 200.00 NIL
Total PSLC 2000.00 NIL
60
5.10 Movement of NPAs (` in crore )

st
Gross NPAs as on 1 April (Opening Balance) 3358.99 2694.21
Additions (Fresh NPAs) during the year 1553.24 1412.21
Sub-total (A) 4912.23 4106.42
Less:-
(i) Upgradations 265.15 194.19
(ii) Recoveries (excluding recoveries made from upgraded accounts) 394.77 292.60
(iii) Technical / Prudential write offs 0.00 85.98
(iv) Write-offs other than those under (iii) above 19.00 174.66
Sub-total (B) 678.92 747.43
st
Gross NPAs as on 31 March (closing balance) (A-B) 4233.31 3358.99
5.10.1 Details of Technical write–offs and recoveries made: (` in Crore)

Opening balance of Technical / Prudential written off accounts as at 1st April 613.25 550.71
Add: Technical / Prudential write offs during the year 0.00 85.98
Sub Total (A) 613.25 636.69
Less: Recoveries/ Reduction made from previously technical / prudential written – off
19.20 23.44
accounts during the year (B)
Closing balance as on 31st March (A-B) 594.04 613.25
5.11 Overseas Assets, NPAs and Revenue
Particulars (` in crore)
Total Assets NIL
Total NPAs NIL
Total Revenue NIL
5.12 Off-balance Sheet SPVs sponsored
Name of the SPV sponsored

Domestic Overseas
NIL NIL
61
5.13 Resolution Plan implemented for Stressed Asset

The Banks are required to disclose resolution plan implemented for stressed assets as per the RBI Circular RBI/2017-18/131,
DBR No.BP.BC.1010/21.04.048/2017-18 dated 12th February 2018 and is furnished as under:-
(` in crore)
Particulars No of cases Amount

Resolution Plan implemented @ NIL NIL
Of which, Restructure approved cases NIL NIL
Of which, number of Cases with aggregate exposure of lenders is ` 1 Billion and above
where Independent Credit evaluation (ICE) of the Residual debt is required by Credit NIL NIL
Rating Agencies (CRA)
Of which, Number of cases with exposure ` 5 Billion and above where 2 such Independent
NIL NIL
Credit evaluation (ICE) is required by CRA
@ The details furnished above excludes the borrower entities in respect of which specific instructions have already been issued
by Reserve Bank of India to the banks for reference under IBC
5.13.1 Acquisition of Non-SLR securities due to conversion of debt during Restructuring process
As per RBI Circular RBI/2017-18/131, DBR No.BP.BC.1010/21.04.048/2017-18 dated 12th February 2018, disclosure is made
as under:-
Bank has acquired and held shares/debentures for an amount of ` 116.16 crore by way of conversion of debt to equity during
various restructuring process implemented by the Bank. This amount is not considered for the calculation of regulatory ceilings/
restrictions on Capital Market Exposures, Investment in Para Banking activities and intra-Group exposure. However, there is
no implication on compliance of the provisions of Section 19(2) of the Banking Regulation Act, 1949.
5.13.2 Revised framework for resolution of stressed assets

The Reserve Bank of India vide its circular dated February 12, 2018 issued a revised framework for resolution of stressed
assets, which superseded the existing guidelines on SDR, S4A etc., with immediate effect. Accordingly, the Bank has revoked
the stand-still benefits for accounts where any of these schemes had been invoked but not yet implemented and classified
them as per the extant RBI Guidelines on Income Recognition and Asset Classification.
5.13.3 Disclosures on Flexible Structuring of Existing Loans (` in crore)

Exposure weighted average
Amount of loans taken up for
No. of duration of loans taken up for
flexible structuring
borrowers taken flexible structuring
Period
up for flexible Before applying After applying
structuring Classified as Classified as
flexible flexible
Standard NPA
structuring structuring
2019-20 NIL NIL NIL NIL NIL
2018-19 NIL NIL NIL NIL NIL
5.13.4 Disclosures on Strategic Debt Restructuring Scheme (` in crore)

Amount outstanding as Amount outstanding as
No. of on the reporting date with on the reporting date with
Amount outstanding as on
accounts respect to accounts where respect to accounts where
the reporting date
Period where SDR conversion of debt to conversion of debt to
has been equity is pending equity has taken place
invoked Classified Classified Classified Classified Classified Classified
as Standard as NPA as Standard as NPA as Standard as NPA
2019-20 5 NIL 254.78 NIL NIL NIL 254.78
2018-19 5 NIL 269.55 NIL NIL NIL 269.55
62
5.13.5 Disclosures on Change in Ownership outside SDR Scheme (` In crore)
Amount outstanding
Amount outstanding as Amount outstanding as
as on the reporting
No. of on the reporting date on the reporting date
date with respect
accounts Amount outstanding as with respect to accounts with respect to accounts
to accounts where
where Banks on the reporting date where conversion of debt where conversion of debt
change in ownership is
have decided 31.03.2020 to equity / invocation of to equity / nvocation of
envisaged by issuance
to effect pledge of equity shares is pledge of equity shares
of fresh shares or sale of
change in pending has taken place
promoters equity
ownership
Classified Classified Classified Classified Classified Classified Classified Classified
as Standard as NPA as Standard as NPA as Standard as NPA as Standard as NPA
Nil
5.13.6 Disclosures on Change in Ownership of Projects Under Implementation
No. of project loan accounts where Amount outstanding as on the reporting date
Banks have decided to effect change Classified as Standard
in ownership Classified as Standard Classified as NPA
Restructured
NIL
5.13.7 Disclosures on the scheme for Sustainable Structuring of Stressed assets (S4A) (` in crore)
No. of accounts where S4A Aggregate amount Amount outstanding

Period Provision Held
has been applied outstanding Part A Part B
Classified as Standard NIL NIL NIL NIL
2019-20
Classified as NPA 25.66 14.00 11.66 14.00
Classified as Standard NIL NIL NIL NIL
2018-19
Classified as NPA 25.66 14.00 11.66 12.01
5.13.8 Micro, Small and Medium Enterprises (MSME) Sector – Restructuring of Advances
The disclosure required to be made as per RBI Circular RBI/2018-19 /100 .DBR. No. BP. BC. 18/ 21.04.048/2018-19 dated
01st January 2020, is as under:-
No. of Accounts Restructured Amount (` Crore)

1 1.20
63
5.14 Disclosure on Remuneration

a. Qualitative disclosures
The composition of the Nomination Remuneration

(a) Information relating to the composition and mandate of the and Compensation Committee of the Board as on
Remuneration Committee. 31st March 2020 is 4 directors. The Committee is
constituted as per regulatory requirements
(b) Information relating to the design and structure of remuneration

processes and the key features and objectives of remuneration
policy.
(c) Description of the ways in which current and future risks are taken The compensation policy was approved by the
into account in the remuneration processes. It should include the Nomination Remuneration and Compensation
nature and type of the key measures used to take account of these Committee of the Board on 25th March 2019.
risks.
Performance is evaluated based on Key
(d) Description of the ways in which the Bank seeks to link performance
Performance Indicators as approved by the Board.
during a performance measurement period with level of remuneration.
(e) A discussion of the Bank’s policy on deferral and vesting of variable
remuneration and a discussion of the Bank’s policy and criteria for
adjusting deferred remuneration before vesting and after vesting
(f) Description of the different forms of variable remuneration (i.e.
ESOS and Performance Incentives are the
cash, shares, ESOPs and other forms) that the bank utilizes and
components of variable remuneration.
the rationale for using these different forms.
b. Quantitative disclosures
(g) Number of meetings held by the Remuneration Committee Meeting of the Nomination, Meeting of the Nomination,
during the financial year and remuneration paid to its members R e m u n e r a t i o n a n d Remuneration and
Compensation Committee Compensation Committee
of the Board (NRCCB) of the Board (NRCCB)
was held 11 times during was held 5 times during
FY 2019-20 and the total FY 2018-19 and the total
remuneration paid to the remuneration paid to the
committee members in committee members in the
the form of sitting fees is form of sitting fees is ` 0.07
` 0.14 crore. crore.
(h) (i) Number of employees having received a variable NIL NIL
remuneration award during the financial year.
(ii) Number and total amount sign-on awards made during NIL NIL
the financial year.
(iii) a. Details of guaranteed bonus, if any, paid as joining NIL NIL
/ Sign on bonus.
b. Details of performance Bonus / Allowance NIL NIL
(iv) Details of severance pay, in addition to accrued NIL NIL
benefits, if any.
(i) (i) Total amount of outstanding deferred remuneration, split NIL NIL
into cash, shares and shares linked instruments and
other forms.
(ii) Total amount of deferred remuneration paid out in the NIL NIL
financial year.
64

(j) Breakdown of amount of remuneration awards for the financial No risks takers were paid No risks takers were
year to show fixed and variable, deferred and non-deferred. variable pay. No deferred paid variable pay. No
and non-deferred deferred and non-deferred
remuneration. remuneration.
(k) (i) Total amount of outstanding deferred remuneration and NIL NIL
retained remuneration exposed to ex-post explicit and/or
implicit adjustments.
(ii) Total amount of reductions during the financial year due NIL NIL
to ex-post explicit adjustments.
(iii) Total amount of reductions during the financial year due NIL NIL
to ex-post implicit adjustments.
5.15 Disclosures relating to securitization: NA
5.16 Credit Default Swaps: NIL
5.17 Intra – Group Exposure: (` in crore)
Particulars 2019-20
(a) Total amount of intra-group exposures
(b) Total amount of top-20 intra-group exposures
NIL
(c) Percentage of intra-group exposures to total exposure of the bank on borrowers / customers
(d) Details of breach of limits on intra-group exposures and regulatory action thereon, if any.
5.18 Transfer to Depositors Education and Awareness Fund (DEAF) (` In crore)

Opening balance of amounts transferred to DEAF 57.58 42.62
Add: Amounts Transferred to DEAF during the year 7.42 15.97
Less: Amounts reimbursed by DEAF towards claims 0.63 1.01
Closing balance of amounts transferred to DEAF 64.37 57.58
5.19 Unhedged Foreign Currency Exposure

Based on the declaration received from borrowers, the bank has estimated and provided towards the liability for Unhedged
Foreign Currency Exposure (UFCE) of their constituents in terms of RBI Circular No. BDOD.No.BP.BC.85/21.06.200/2013-14
dated 15th January 2014 and the total provision held as of 31st March 2020 is ` 0.76 crore.
5.20 Details of Frauds occurred and Provision made during the year
As per RBI Circular No.DBR. No. BP.BC.92/21.04.048/2015-16 dated April 18, 2016 required details are furnished:
(a) Number of Fraud cases reported during the year 37

(b) Amount involved (` in crore) 324.61
(c) Quantum of Provision made, net of recoveries (` in crore) 318.41
(d) Quantum of unamortized Provision debited from ‘Other Reserves’ (` in crore) 0.00
65
6.1 Liquidity Coverage Ratio (` In crore)
2019-20 2018-19
Total Total Total
Total Weighted
Unweighted Weighted Unweighted
Value
Value Value Value
(Average)
(Average) (Average) (Average)
High Quality Liquid Assets
1. Total High Quality Liquid Assets (HQLA)
6967.55 6399.76
– Average
Cash Outflows
2 Retail deposits and deposits from small
18712.70 1666.87 17882.23 1620.61
business customers, of which
(i) Stable Deposits 4088.05 204.40 3352.33 167.62
(ii) Less stable Deposits 14624.63 1462.46 14529.90 1452.99
3 Unsecured wholesale funding, of which: 5079.16 1235.52 5139.48 1685.22
(i) Operational deposits (all counterparties) 0 0 0 0
(ii) Non-operational deposits (all
5079.17 1235.51 5139.48 1685.22
counterparties)
(iii) Unsecured debt 0 0 0 0
4 Secured Wholesale funding 209.33 0 1189.89 19.52
5. Additional requirements, of which 6162.16 537.98 15947.00 1140.87
(i) Outflows related to derivative exposures
89.06 89.06 16.63 16.63
and other collateral requirements
(ii) Outflows related to loss of funding on
0 0 0 0
debt products
(iii) Credit and Liquidity facilities 0.40 0.30 16.42 5.92
6 Other contractual funding obligations 188.31 188.31 383.72 383.72
7 Other contingent funding obligations 5884.37 260.30 15530.22 734.60
8 Total Cash Outflows 30163.37 3440.37 40158.59 4466.22
Cash Inflows
9 Secured lending (e.g. reverse repos) 260.70 0.00 99.03 0
10 Inflows from fully performing exposures 683.94 341.80 1102.71 551.35
11 Other cash inflows 223.66 185.86 53.48 53.48
12 Total Cash Inflows 1168.30 527.66 1255.21 604.83
Total Adjusted Total Adjusted
Value Value
TOTAL HQLA (Average) 6967.55 6399.76
Total Net Cash Outflows 2912.70 3860.10
Liquidity Coverage Ratio (%) 239.21 165.79
6.1.1. Disclosure under IBC

As per RBI Circular No. DBR.No.BO.15199/21.04.048/2016-17 dated June 23, 2017, for the accounts covered under the
provisions of Insolvency and Bankruptcy Code (IBC), the Bank is holding total provision of ` 295.92 crore (` 184.28 crore as
at March 31, 2019).
66
6.1.2 Implementation of IND AS

As advised by RBI, the Bank has submitted proforma IndAS financials for the period ending 30th June 2019,30th September
2019 and 31st December 2019 in prescribed format.
In terms of RBI notification DBR.BP.BC.No.29/21.07.001/2018-19 dated 22nd March 2019 has deferred implementation of IndAS
until further notice from RBI
6.2 Qualitative disclosure around LCR

Based on RBI guidelines issued during June, 2014 and also other circulars subsequently thereon, the Bank has been computing
the Liquidity Coverage Ratio with effective from 01st January, 2015. As per these guidelines, the Bank has high quality liquid
assets (HQLA) into Level 1 and Level 2A/2B. As on 31.03.2020, the Bank has ` 5837.23 Cr of HQLAs, of which, the main
contribution is from Level – 1 type of assets with ` 5828.43 Cr. The Level – 1 asset are in the form of surplus SLR investments
/ Excess CRR and Cash in Hand.
As on 31.03.2020, after applying the respective haircuts as mentioned by RBI guidelines on LCR, the Bank has total amount of
` 2473.14 Cr of cash outflows and ` 336.57 Cr of cash inflows over the next 30 days period. Of this total amount of ` 2473.14
Cr of cash outflows, the major component is in the form of Retail deposits and Unsecure Wholesale Funding and of the total
` 336.57 Cr of cash inflows, the major cash inflows are in the form of amounts to be received from Retail and small business
counterparties and Non – Financial wholesale counterparties.
7. The disputed income tax demand outstanding as on 31.03.2020 amounts to ` 330.22 crore (PY: ` 336.66 crore) and service
tax liability of ` 170.63 crore (PY: ` 11.24 Crore). No provision is considered necessary in respect of the disputed liabilities in
view of the favourable decisions by various appellate authorities on similar issues.
Provision for Income Tax in the current year is made as per Income Computation Disclosures Standards (ICDS) after considering
various judicial decisions on certain disputed issues.
8. During the financial year 2017-18, the Bank had adjusted deposit loans aggregating to ` 794 crore, extended to M/s.RHC
Holding Private Limited and M/s.Ranchem Private Limited, group companies of M/s Religare Finvest Limited against its
deposits. Disputing the said adjustment, M/s.Religare Finvest Limited has filed a suit against the Bank in May, 2018 before the
Honourable High Court of Delhi and the same is being defended appropriately by the Bank. The matter still remains sub-judice.
The Reserve Bank of India advised that the Bank may on a prudential basis maintain provision to cover potential losses for the
"claims against the Bank not acknowledged as debt". As per legal opinions received by the Bank, the adjustment of deposits
against loans is lawful and tenable. Hence, the Bank management's decision on recognition and measurement of provisions
on this score depends on the verdict of the court in the said suit. The Bank holds a contingent provision of ` 200 crore on this
score. Further to the above, Bank has submitted replies to the clarifications sought by SEBI. EOW, Delhi has registered FIR
against Directors of Board LVB, RHC Holding and Directors on the Board of RHC Holding and the investigation is in progress.
The Bank has sent a detailed letter to EOW explaining its stand on the issue and assured to extend full co-operation in the
investigation.
9. The SARS-CoV-2 virus responsible for COVID-19 continues to spread across the globe and India, which has contributed to
a significant decline and volatility in Global and Indian financial markets and local economic activities. On March 11, 2020,
the COVID-19 outbreak was declared a global pandemic by the World Health Organization. Numerous governments and
companies, including the Bank have introduced a variety of measure to contain the spread of the virus. The Government of
India had announced a series of lock-down measures beginning 24th March 2020 with extension thereof up to 31st May 2020
and further to 31st July 2020, in order to limit the spread of the pandemic across India. The extent to which the COVID-19
pandemic will impact the Bank's results will depend on future developments, which are highly uncertain, including, among other
things, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or mitigate
its impact whether government mandated or elected by the Bank. In accordance with the RBI guidelines vide circular DOR.
No.BP.BC.47/21.04.048/2019-20 dated March 27, 2020 and DOR.No.BP.BC.63/21.04.048/2019-20 dated April 17, 2020 on
the ‘COVID-19 Regulatory Package.
Board has approved a policy for implementation of the said guidelines by the Bank, including, inter-alia granting of moratorium
on the payment of installments and / or interest falling due between March 01, 2020 and May 31, 2020 upto June 30, 2020
(and subsequently extended to August 31, 2020 vide RBI circular DOR.No.BP.BC.72/21.04.048/2019-20 dated May 23, 2020)
as well as relaxation of certain parameters, to eligible borrowers. For all such accounts where the moratorium is granted, the
asset classification shall remain standstill during the moratorium period (i.e. the number of day’s past-due shall exclude the
moratorium period for the purposes of asset classification under the Income Recognition, Asset Classification and Provisioning
norms).
67
Bank is required to make additional provision @ 10%, over two quarters beginning with quarter ended March 31, 2020, in respect
of such borrowers whose accounts, though classified as standard as on Feb 29,2020. Would have become non-performing but
for these benefits/relaxations.
Accordingly, Bank has made the provision amounting to ` 10.01 crore for the loan outstanding amount of ` 200.17 crore during
the quarter ended 31st March 2020.
In terms of RBI circular DOR.NO.BP.BC.63/21.04.048/2019-20 dated 17th April, 2020 “COVID 19 Regulatory package – Asset
Classification and Provisioning” the disclosure are as follows:
(` In crore)
SL. No Particulars Amount

I Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended
1104.80
in terms of paragraph 2 and 3.
II Respective amount where assets classification benefits is extended. 200.16
III Provisions made during the Q4FY2020 and Q1FY2021 in term of paragraph 5: 10.01
IV Provisions adjusted during the respective accounting periods against slippage and the residual Not Applicable
provisions in terms of paragraph 6. FY 2019-20
10. Previous year’s figures have been regrouped / reclassified wherever considered necessary to conform to the current year’s
classification.

N. SAIPRASAD
SAKTHI SINHA
Partner
K. R. PRADEEP
RAJNISH KUMAR
68
DISCLOSURE UNDER PILLAR III OF BASEL III NORMS AS ON 31.03.2020

I. SCOPE OF APPLICATION AND CAPITAL ADEQUACY
Table DF - 1
Scope of Application
Lakshmi Vilas Bank is a private sector bank incorporated in the year 1926 at Karur. The bank doesn’t have any subsidiaries under
its Management. Hence the CRAR is computed on standalone basis only.
Qualitative Disclosures:
List of group entities considered for consolidation.
List of group entities not considered for consolidation both under the accounting and regulatory scope of consolidation.
No Group affiliation
Quantitative Disclosures:
List of group entities considered for consolidation
Not applicable
The aggregate amount of capital deficiencies in all subsidiaries which are not included in the regulatory scope of consolidation i.e.
that are deducted:
Not applicable
The aggregate amounts (e.g. current book value) of the bank’s total interests in insurance entities, which are risk-weighted:
Not applicable
Any restrictions or impediments on transfer of funds or regulatory capital within the banking group:
Not applicable
Table DF - 2
Capital Adequacy
Qualitative Disclosures:
A summary discussion of the bank’s approach for assessing the adequacy of its capital to support current and future activities.
As per Basel III guidelines, the Bank is required to maintain a minimum Capital to Risk Weighted Assets Ratio (CRAR) of 10.875%.
The given minimum capital requirement includes capital conservative buffer of 1.875%. The total capital to Risk Weighted Assets Ratio
(CRAR) as per Basel III guidelines works to 1.12% as on 31.03.2020 (As against the minimum regulatory requirement of 10.875%).
The tier I CRAR stood at -0.88%.
Quantitative Disclosures:
Particulars Number of Equity Shares Face Value Per share Amount in lakhs
Authorized Capital 650000000 10 65000.00
Issued Capital 338732277 10 33873.23
Subscribed Capital 336713751 10 33671.38
Called up/paid up Capital 336713751 10 33671.38
The Bank’s shares are listed on the National Stock Exchange Limited (NSE) and Bombay Stock Exchange Limited (BSE).
Break up of capital funds: (` in lakhs)
A. Tier I Capital Elements
1. Paid up capital 33671.38
2. Reserves and surplus 78747.48
3. Gross Tier I Capital 112418.86
4. Less (Intangible Assets) including DTA adjustments 124050.80
5. Net Tier I Capital -11,631.94
69
B. Tier II Capital Elements

1. General Provisions and Loan loss Reserve 9846.79
2. Subordinated Debt (Lower Tier II bonds) 26922.00
3. Provision for restructured advances 7.06
4. Provision for unhedged foreign currency exposure 75.63
5. Total Tier II capital 36851.48
Break up of Capital Requirements: (` in lakhs)
Risk Type
b) Capital requirements for Credit Risk 110154.92
Portfolios subject to standardized approach
Cash & Bank 121.86
Loans and Advances 95560.19
Fixed Assets 4443.54
Other Assets 4960.60
Off Balance sheet Exposure 5068.83
c) Capital requirements for Market Risk 13,608.35
Standardized Duration approach
Interest Rate Risk (Including swaps) 12066.48
Contracts (Including Forex Open Position) 709.74
Equity Risk 832.13
d) Capital requirements for Operational Risk 19768.10
Basic Indicator approach 19768.10
Total Risk weight Assets (b+c+d)*100/10.875 1319829.59
Total Eligible Capital Funds for CRAR 14764.94
CRAR (Basel III) 1.12%
e) Common Equity Tier 1, Tier I and Total Capital ratios:
Common Equity Tier I - CRAR -0.88%

Tier I CRAR -0.88%
Total CRAR 1.12%
For the top consolidated group; and for significant bank subsidiaries - Not applicable
II. Risk Exposure and Assessment

General Qualitative Disclosure requirement:
The robustness of risk management framework of the Bank is being achieved mainly from identification/ assessment/ measurement
and monitoring of various risks and managing on a continuous basis. The Bank strives to update the practices, policies and process
involving risk by benchmarking itself to the best practices in risk management. Accordingly steps are being planned into the future
under guidance of the Board.
70
The Bank has in place a Risk Management Committee of the Board of Directors, basis the regulatory requirement for listed entities.
The Board is responsible for framing, implementing and monitoring of Risk Management framework in the bank. For operational
convenience, it has delegated its powers to various committees as shown below:
Board of Directors
Risk Management Committee of Board ITSC of Board
Asset Credit Risk Operational Risk

Liability Management Management
Management Committee Committee Information-systems Business
Security Steering Continuity
Committee Management
Committee
Risk Department
Credit Risk Market Risk Operational Information / Cyber

Team Team Risk Team security Team
The risk management processes are guided by well-defined policies appropriate for various risk categories viz., credit risk, market risk,
and operational risk as per the respective regulatory and business requirements. Various policies such as Investment policy, Forex
policy, ALM policy, Stress testing policy, Credit Risk Management Policy have been put in place to measure; mitigate the various
risks with acceptable levels. The Bank has laid down Stress Testing policy to measure impact of adverse stress scenarios on the
adequacy of capital and profit. Information-Systems Security Policy (ISSP) and Cyber Security Policy (CSP) are put in place to govern
the information and cyber security of the Bank. Business Continuity Policy (BCP) is in place to manage Business Continuity aspects
of all critical operations of the Bank.
Organization Structure of Risk Department:

The Risk Department is headed by Chief Risk Officer who reports to the Managing Director and CEO of the Bank. The activities of
the Risk Department are being overseen by the Risk Management Committee of the Board. The Department has separate team for
individual areas of risk.
Credit Risk:
Credit risk is the risk of financial loss if a client, issuer of securities that the Bank holds or any other counterparty fails to meet its
contractual obligations. Credit Risk arises from all transactions that give rise to actual, contingent or potential claims against any
counterparty, borrower or obligor. The goal of credit risk management is to achieve reasonable levels of risk acceptable on the credit
portfolio and generate risk-adjusted return on capital, targeted portfolio asset quality and management of the credit risk inherent in
individual exposures as well as at the portfolio level. The emphasis is placed both on evaluation and management of risk at the individual
exposures and analysis of the portfolio behavior.
Credit Risk Management policy:

A comprehensive Credit risk management policy is put in place and the same has been approved by Board. The Credit risk strategy of
the bank is based on Risk appetite and risk-return profile and it is being reviewed yearly in CRM policy. The strategy of the bank shall
provide continuity in approach considering cyclical approach of the economy and the resulting shifts in the composition and quality of
the overall credit portfolio. It shall also include a statement of the banks willingness to grant credit based on exposure type (for example,
commercial, consumer, real estate,etc.,), economic sector (e.g. textile, iron etc.), geographical location, currency, maturity, anticipated
profitability, identification of target markets / business sectors (like priority sector lending) and the overall credit portfolio composition.
Credit sanction and approval processes:

The Bank has put in place a structured credit approval process, including a well-established procedure of comprehensive credit
appraisal. Every extension of credit facility or material change of a credit facility to any counterparty requires credit approval at the
71
appropriate authority level. The Bank has a multi-tier structure for sanction of credit proposals, with delegation of lending powers at
various levels of officers & executives, duly approved by Board.
The powers vested at each level depend on the quantum and type of the loan facility, Credit rating of the borrower and the overall
exposure to the borrower/group.
Credit Rating System:

Internal risk rating remains the foundation of the credit assessment process, providing standardization and objectivity to the process.
All sanctioning processes including the delegation of powers are linked to the ratings and the sizes of the exposure. The monitoring
frequency applicable to the exposure also depends on the rating of the exposure. Individual borrower exposure ceilings linked to
the internal rating and sector specific caps are laid down in the Credit policy to avoid concentration risk. Both credit and market risk
expertise are combined to manage risks arising out of traded credit products such as bonds and market benchmarking related lending
transactions.
Key sectors are analyzed in detail to suggest strategies for business, considering both risks and opportunities. Such analysis is
reviewed by the Credit Risk Management Committee/ RMCB / Various Credit Sanctioning Committees to arrive at the appropriate
industry ceilings as well as define the origination and account management strategy for the sector. The Risk Management Committee
of the Board periodically reviews the impact of the plausible stress scenarios covering inter alia increased regulatory prescriptions on
provisioning requirements, rating downgrades, or drop in the asset values in case of secured exposures etc. on the portfolio. With a
view to improve the credit quality, the approval of internal rating is now vested with Risk Department. During the year bank has also
put in place a revised internal credit rating system from a reputed agency.
Credit review and monitoring:

Bank has a dedicated monitoring department which looks after review and monitoring of bank’s credit portfolio. The Bank has a system
under which the lending powers exercised by delegated authority are reported to and reviewed by a higher authority under the Internal
Loan Review Mechanism. The Pre-disbursement and post-disbursement processes have also been significantly improved through
standardization and Centralization.
Market Risk:
Market risk is the risk of losses in ‘on and off-balance sheet’ positions arising from the movements in market price as well as the
volatilities of those changes, which may impact the Bank’s earnings and capital. The risk may pertain to interest rate related instruments
(Interest rate risk), equities (equity price risk) and foreign exchange rate risk (currency risk). Market Risk for the Bank emanates from
its trading and investment activities, which are undertaken both for the customers and on a proprietary basis. The Bank adopts a
comprehensive approach to market risk management for its banking book as well as its trading book for its operations. The market
risk management framework of the Bank provides necessary inputs regarding the extent of market risk exposures, the performance
of portfolios vis-a- vis the market risk limits and comparable benchmarks, which provides guidance to the business in optimizing the
risk-adjusted rate of return of the Bank’s trading and investment portfolio.
Market risk management is guided by well laid down policies, guidelines, processes and systems for the identification, measurement,
monitoring and reporting of exposures against various risk limits set in accordance with the risk appetite of the Bank. Treasury Mid-office
independently monitors the Bank’s investment and trading portfolio in terms of risk limits stipulated in the Market Risk Management.
The bank is also investing in better systems to address operational and IT risks and help improve monitoring of market risk.
Operational Risk:
Operational risks may emanate from inadequate and/or missing controls in internal processes, people and systems or from external
events or a combination of all the four. The Bank has in place an Operational Risk Management (ORM) Policy to manage the operational
risk in an effective, efficient and proactive manner. The policy aims at assessing and measuring the magnitude of risks, monitoring
and mitigating them through well-defined framework and governance structure.
The RMC at the apex level is the policy making body and is supported by the Operational Risk Management Committee (ORMC)
responsible for the implementation of the Operational Risk framework of the Bank and the management of operational risks across
the Bank.
All new products and processes, as well as changes in existing products and processes are subjected to risk evaluation by the Bank’s
Product and Change Management Committee. Outsourcing arrangements are examined and approved by the Outsourcing Committee
72
of the Bank. The IT Systems and Security Committee/ Cyber Risk Committee of the Bank provide directions for mitigating operational
risk in the information systems/ cyber issues. Comprehensive frameworks and processes help the Bank in managing and mitigating
such risks.
The Bank has set up a comprehensive Operational Risk Management / Measurement System for identifying, documenting, assessing,
measuring and periodic monitoring of various risks and controls linked to various processes.
The Business Continuity Management Committee (BCMC) exercises oversight on the implementation of the approved Business
Continuity plan (BCP) framework, which has been put in place to ensure continuity of service for its customer base. Crisis Management
Committee (CMC), a sub-committee of BCMC exercise oversight on various crisis situations like, Flood, Cyclones, pandemics etc.
Further, the bank continuously examines its risk governance framework, the risk management practices, availability of adequate
resources, appropriate systems and continuously strives to improve all these aspects. For example- Ensuring a strong set of experienced
and skilled officials in Risk, strengthening the risk management at its Regions, acquiring improvised risk systems and continuously
improving risk processes/ tools to be able to have the best of risk management practices in the globe.
Interest Rate Risk in Banking Book:

Interest Rate Risk is measured in two different ways. Earnings perspective using Traditional Gap Analysis is to assess the impact of
adverse movement in interest rate on the Net Interest Income (Earnings at Risk) and economic value perspective using Duration Gap
Analysis to assess the impact of adverse movement in interest rate on the market value of Bank’s equity.
ALM policy will manage and monitor the limits / guidance values / target set on interest rate risk of the Banking Book. RMC-B and
ALCO at the executive level are responsible for efficient and effective management of Interest rate risk in Banks business.
Scope and nature of risk reporting / measurement systems:

The Duration/ Modified duration mainly depends on coupon, maturity and periodicity of payment of installments. Since the modified
duration of the liabilities is less compared to the modified duration of assets, there would be fall in the equity value under major stress.
Modified duration of Equity is calculated on a quarterly basis. The Stress loss for Interest rate risk in banking book is assessed based
on drop in the Market value of equity under 200 bps changes in interest rate. The results of Traditional Gap analysis and Duration
Gap analysis including the adherence to tolerance limit set in this regard like, Buckets, Dynamic Liquidity, LCR, Bulk deposit, Retail
term deposits are monitored and the same has been placed before ALCO/RMC-B level.
Liquidity Risk:
Liquidity is a bank’s capacity to fund increase in assets and meet both expected and unexpected cash and collateral obligations at
reasonable cost and without incurring unacceptable losses. Liquidity risk is the inability of a bank to meet such obligations as they
become due, without adversely affecting the bank’s financial condition. The Asset Liability Management policy of the Bank stipulates
a broad framework for liquidity risk management to ensure that the Bank is in a position to meet its liquidity obligations as well as to
withstand a period of liquidity stress from bank-level factors, market-wide factors or a combination of both.
The liquidity profile of the Bank is monitored on a static as well as on a dynamic basis by using the gap analysis technique supplemented
by monitoring of key liquidity ratios and conduct of liquidity stress tests periodically.
The Bank has integrated into the asset liability management framework, the liquidity risk management guidelines issued by RBI pursuant
to the Basel III framework on liquidity standards. The Bank maintains the regulatory mandated LCR as per the transitional arrangement
laid down by RBI and also ensures adherence to RBI guidelines on monitoring and management of liquidity including liquidity ratios.
TABLE DF - 3
Credit Risk
Credit Risk: General Disclosures
Qualitative Disclosures
The general qualitative disclosure requirement with respect to credit risk, Includes the definitions of Past Due, NPA of a loan or a
advance and impaired assets (For Accounting Purposes), Out of order and Overdue. These definitions are as per the extant guidelines
of Reserve Bank of India.
73
Credit Risk
Credit risk in simple terms is the potential that bank’s borrower or counterparty will fail to meet its obligations in accordance with
agreed terms.
Credit risk is defined as the possibility of losses associated with default in repayment or diminution in the credit quality of borrowers
or counterparties or diminution in the value of primary and/or collateral assets. In a bank’s portfolio, losses stem from outright default
due to inability or unwillingness of a customer or counterparty to meet commitments in relation to lending, trading, settlement and
other financial transactions.
Discussion of the Bank’s Credit risk management policy

The Board level approved Credit Risk Management Policy is put in place. The goal of the policy is to ensure that it is within the acceptable
risk appetite and tolerance limit set by the bank. It manages the credit risk inherent in the entire portfolio as well as the risk in individual
credits or transactions and it encompasses identification, measurement, monitoring and control of the credit risk exposures. Further it
deals the structure, governance, framework, and processes for effective and efficient management of the Credit risk.
Quantitative Disclosures
Credit Exposure:-
Credit Risk Exposures (` In lakhs)

Fund Based * 1679695.66
Non Fund Based ** 131877.03
Total Fund & Non Fund Based 1811572.69
* It excludes fixed assets, other assets, cash, bank balances, balance with RBI and investments under HTM category.
** Exposure without revaluation.
Geographic wise Distribution of Exposures:- (` in lakhs)
State Name Funded Exposure Non Funded Exposure Total Exposure

Andhra Pradesh 125167.39 1785.26 126952.65
Chandigarh 25.31 0.00 25.31
Chhattisgarh 3797.94 19.35 3817.29
Gujarat 24729.27 2852.53 27581.80
Haryana 6866.04 578.77 7444.81
Jharkhand 2494.90 0.00 2494.90
Karnataka 196520.12 5685.85 202205.96
Kerala 77832.13 60.30 77892.44
Madhya Pradesh 6359.08 27.00 6386.08
Maharashtra 265123.52 9509.54 274633.07
Delhi 46309.65 34850.62 81160.27
Odisha 1221.89 73.45 1295.33
Puducherry 8354.76 442.89 8797.65
Punjab 19.42 0.00 19.42
Rajasthan 1890.31 0.00 1890.31
Tamilnadu 706481.14 53821.55 760302.69
Telangana 129928.53 17527.54 147456.07
Uttar Pradesh 575.04 5.85 580.89
West Bengal 75999.21 4636.53 80635.74
Total 1679695.66 131877.03 1811572.69
74
Industry Wise distribution of Exposures:- (` in lakhs)
S. Funded Non Funded Total % to total

Industry Name
No. exposure Exposure Exposure Exposure
1. All Engineering 18822.85 447.84 19270.69 1.06
2. Basic Metal and Metal Products 67506.15 810.00 68316.15 3.77
3. Beverages and Tobacco 16643.82 1951.96 18595.77 1.03
4. Cement and Cement Products 12567.15 388.46 12955.61 0.72
5. Chemicals and Chemical Products 13760.63 46.71 13807.33 0.76
6. Construction 15.00 0.00 15.00 0.00

7. Food Processing 9118.46 0.01 9118.47 0.50
8. Gems and Jewellery 5751.84 0.00 5751.84 0.32
9. Glass & Glassware 2993.65 0.00 2993.65 0.17
10. Infrastructure 125937.27 29065.19 155002.47 8.56
11. Leather and Leather products 376.38 0.00 376.38 0.02
12. Mining and Quarrying 5516.26 144.09 5660.35 0.31
13. Paper and Paper Products 5305.39 88.27 5393.66 0.30
14. Petroleum, Coal Products and Nuclear Fuels 713.66 0.00 713.66 0.04
15. Rubber, Plastic and their Products 9395.31 10.95 9406.26 0.52
16. Textiles 88465.29 5195.20 93660.50 5.17
17. Vehicles, Vehicle Parts and Transport Equipment’s 2638.61 0.52 2639.13 0.15
18. Wood and Wood Products 8623.86 3001.42 11625.29 0.64
Other industries 23266.69 178.11 23444.80 1.29
Residual Advances 1262277.38 90548.29 1352825.67 74.68
Total 1679695.66 131877.03 1811572.68
Note: The industries break-up given on the same lines as prescribed for DSB returns. Residual advances are educational loans,
Housing loans, Gold loans, Loan against deposits, Personal loan, staff loan, consumer loans, vehicle loans, etc., The Industries which
has crossed 5% of gross credit exposure are:
a) Infrastructure - 8.56%; b) Textiles - 5.17%
Residual maturity breakup of assets (` in lakhs)
Balance Reverse Foreign

Balance Invest- Fixed Other
Bucket Cash with Other Repo Currency Advances
with RBI ments Assets Assets
Banks Lending Lending
Overdue to Day 1 36770.76 925.28 1142.80 135580.12 0.00 0.00 7800.33 0.00 1293.17
2-7 Days 0.00 1129.26 0.00 12605.19 75500.00 0.00 35708.79 0.00 267.07
8-14 Days 0.00 1287.92 0.00 6759.78 0.00 0.00 38760.83 0.00 311.05
15-30 Days 0.00 1109.57 0.00 5823.75 0.00 0.00 49791.87 0.00 1516.54
31-60 Days 0.00 2001.11 0.00 10503.04 0.00 0.00 57666.31 0.00 1376.92
61-90 Days 0.00 1527.46 305.00 8034.05 0.00 0.00 48027.27 0.00 1376.92
3-6 Months 0.00 5418.76 0.00 42660.19 0.00 0.00 131125.05 0.00 3998.04
6 M to 1 Year 0.00 6466.89 0.00 51972.58 0.00 855.01 272334.33 0.00 0.00
1-3 Year 0.00 28702.59 153.00 207985.00 0.00 0.00 467176.62 0.00 132060.75
3-5 Year 0.00 2548.89 0.00 23031.44 0.00 0.00 104153.79 0.00 0.00
Over 5 Year 0.00 16891.95 29.11 102398.01 0.00 0.00 184738.37 46342.12 124614.83
Total 36770.76 68009.68 1629.90 607353.15 75500.00 855.01 1397283.55 46342.12 266815.29
75
Asset Quality (` in lakhs)

Amount of Non-Performing Assets (Gross) 423331.11
Substandard 96087.77
Doubtful – 1 66402.69
Doubtful – 2 139637.72
Doubtful – 3 19942.79
Loss 101260.14
Net NPA 138785.99
Gross NPA to gross advances (%) 25.39%
Net NPAs to Net advances (%) 10.04%
Movement of NPAs (Gross)
Opening Balance 335899.36
Additions during the period 155324.08
Reductions 67892.33
Closing Balance 423331.11
Movement of Provisions (` in lakhs)

Specific Provision
Provisions made during the period 50979.87
Write off /Write back of excess provisions 4196.35
Any other adjustments, including transfers between provisions
Closing balance 225310.18
Details of write offs and recoveries that have been booked directly to the Income statement (` in lakhs)
Write offs that have been booked directly to the income statement 844.42
Recoveries that have been booked directly to the income statement 6326.07
Investments (` in lakhs)
Amount of Non Performing Investments 34010.44
Amount of provisions held for non-performing investments 19483.86
Movement of provisions for depreciation on Investments
Provisions made during the period (April 2019 to March 2020) 9098.64
Write-off/Write – back of excess provisions 850.23
Closing Balance 36547.81
Major Industry break up of NPA (` in lakhs)

Industry Gross NPA Specific Provision
Infrastructure 71897.70 64954.65
Basic Metal and Metal Products 34186.91 28024.57
Textiles 12620.39 4641.10
Chemicals and Chemical Products (Dyes, Paints, etc.) 7894.12 7127.73
All Engineering 5051.96 4802.46
Total
76
Geographic wise Distribution of NPA and Provision (` in lakhs)

Geography Gross NPA Specific Provision
Domestic 423331.11 276832.42
Overseas 0.00 0.00
Total 423331.11 276832.42
Table DF - 4
Credit Risk: Disclosures for Portfolios Subject to the Standardized Approach
a) For exposure amounts after risk mitigation subject to the standardized approach, amount of a bank’s outstanding (rated and
unrated) in the following three major risk buckets as well as those that are deducted:
< 100% Risk Weight 100% Risk Weight > 100% Risk Weight Grand Total
Particulars
BV** RWA** BV** RWA** BV** RWA** BV** RWA**
Fund Based
Loans & Advances 1096231.91 331748.86 413048.61 308393.15 158049.04 238,572.37 1,667,329.56 878714.38
Investments 343969.75 0.00 0.00 0.00 0.00 0.00 343969.75 0.00
Other Assets* 429,090.21 47906.99 46342.12 39,688.38 0.00 0.00 475,432.33 87595.37
Total Fund Based
1,869,287.28 379,655.85 459,390.70 349,253.27 158049.04 238772.38 2,486,731.64 966,309.75
outstanding
Non Fund based
29542.37 10362.85 27709.21 21886.06 13919.07 14361.06 71,170.65 46,609.97
(after applying CCF)
Total 1,898,829.65 390,018.70 487,099.91 371,139.33 171,968.11 253,133.4 2,557,902.29 1,012,919.72
* Other assets include cash, balance with RBI, balance with other banks, fixed assets and others.
** BV: Book Value; RWA: Risk Weighted Assets.
Table DF - 5
Credit Risk: Credit Risk Mitigation: Disclosures for Standardized Approaches
Qualitative Disclosures
a) The general qualitative disclosure requirement with respect to credit risk mitigation including
Policies and process for and an indication of the extent to which the bank makes use of, on and off balance sheet netting;
• Policies and processes for collateral valuation and management
Bank has a policy and procedure for the management of collateral and guarantees.
Valuation is based on the current forced sale value of the collateral and not biased in order to enable the bank, to grant a higher credit
limit to the borrower or improve its internal credit rating, make a smaller amount of provision or continue interest accrual for a problem
credit.
Further, collateral is revalued on a regular basis, though the frequency may vary with the type of collateral involved and the nature &
the internal credit rating of the underlying credit e.g. frequency for shares and properties as collateral would be different.
Collaterals & guarantees are properly evaluated with respect to legal validity, enforceability in all relevant jurisdictions, etc., for the
purpose of netting as credit risk mitigants as per the policy.
A more conservative approach is adopted for valuing the collateral of problem credits because the forced-sale value, rather than
the open market value, is likely to be closer to what eventually may be realized from an asset sale when the market conditions are
un-favorable. Therefore, a discount to the estimated forced sale value should be applied where appropriate.
77
• Description of the main types of collateral taken by the bank

Under Standardized approach, the following collateral instruments used as risk mitigants for the capital computation.
1. Cash and fixed deposits of the Borrower with the Bank.
2. Gold ( The value of the gold arrived after notionally converting into 99.99% purity)
3. Securities issued by Central and State Governments.
4. Kisan Vikas Patra and National Savings Certificates (with no lock-in period)
5. Life insurance policies with a declared surrender value of an insurance company which is regulated by an insurance sector
regulator.
6. Debt Securities issued by Public Sector Entities and other entities (including banks and other primary dealers) rated by chosen
rating agency attracting 100% risk weight or lesser risk weight.( i.e. rated atleast BBB(-) or A3 for short-term debt instruments)
7. Debt Securities not rated by a chosen Credit Rating Agency in respect of which banks should be sufficiently confident about the
market liquidity where these are
a) Issued by a bank
b) Listed on a recognized stock exchange,
c) Classified as senior debt and
d) all the rated issues of the same senior by the issuing bank are rated atleast BBB (-) or A3 by a chosen Credit Rating Agency.
e) The bank has no information to suggest that the issue justifies a rating below BBB (-) or A3 by a chosen Credit Rating Agency
8. Units of Mutual Funds regulated by the securities regulator of the jurisdiction of the Bank’s operation and mutual funds where
a. A price for the units is publicly quoted daily i.e. where the daily NAV is available in public domain
b. Mutual fund is limited to investing in the permitted instruments listed.
• Information about (market or credit ) risk concentrations within the mitigation taken
Majority of the exposures are retail exposures and insulated with adequate liquid collateral by way of cash margin, KVP, fixed
deposits, National Savings Certificate, Life Insurance Policies etc for reducing the capital buffer after applying applicable haircuts in
the respective securities.
a) For each separately disclosed credit risk portfolio the total exposure (after, where applicable, on – or off balance sheet netting)
that is covered by eligible financial collateral after the application of haircuts.
Credit Risk exposure covered by Eligible Financial Collaterals (` in lakhs)
Type of Exposure Notional Exposure (After CCF) Eligible Financial Collaterals Net Exposure
On Balance Sheet 384080.61 430737.28

Off Balance Sheet 71,170.65 51110.87 20059.78
Total 455251.26 481848.15 20059.78
b) For each separately disclosed portfolio the total exposure (after, where applicable, on- or off-balance sheet netting) that is covered
by guarantees/credit derivatives (whenever specifically permitted by RBI)
NIL
78
Table DF - 6
Securitization Exposure - Disclosure for Standardized Approach
Quantitative Disclosure – Banking Book (` in lakhs)
Amount of Securitization Exposure (Purchased by Bank) x 141823.31 lakhs
The securitized exposures in banking book are vehicle/Gold/ MFI Loans. The Risk weight of the counterparty varies based on the
underlying Assets.
Table DF - 7
Market risk in Trading Book
Qualitative disclosures
Approach for Computation of Capital charge for Market Risk
Standardized Duration Approach is used for calculating Capital charge for Market Risk. Components under Market risk are
a) Specific Risk – Capital Charge for market risk is computed based on risk weights prescribed by the regulator.
b) General Market Risk is calculated for
Securities under HFT category
Securities under AFS category
Open foreign exchange position limits
Trading Positions in Derivatives
The total Capital charge for market risk is equal to greater of Specific Capital charge plus General Market Risk Capital Charge or
Alternative total capital charge.
a) The capital requirements for:
• Interest rate risk ` 12898.61 lakhs
• Equity position risk ` 832.13 lakhs
• Foreign exchange risk ` 709.74 lakhs
Table DF - 8
Operational Risk
The Bank has put in place comprehensive Operational Risk Management policy along with its frameworks (Risk & Control Self-As-
sessment (RCSA), Key Risk Indicators (KRI) and Loss Data Management), Information System Security, Business Continuity and
Disaster Recovery Management.
The Operational Risk Management Policy outlines the Organization structure and covers the process of identification, assessment /
measurement and control of various operational risks. Internal control mechanism is in place to control and minimize the operational
risks. The Bank has since further strengthened the existing Operational risk framework by establishing sound governance committees
at the Board level/ Senior Management level. Bank has designed and implemented the Operational risk Management Policy along
with frameworks and processes for conducting Risk & Control Self-assessment, Key risk indicators for monitoring certain key risks,
Loss data management, Product / Change Management and Outsourcing of financial activities. Apart from these, bank is regularly
conducting thematic studies and risk walk through based on internal/ external risk perception.
The bank has also in place policies related to Information Security/ Cyber Security/ Overall Business Continuity/ Outsourcing which
lay down the path for effective Management of all sorts of risk in IT/ Non IT Environment.
79
Operational risk capital assessment:

Capital charge for operational risk is computed as per the Basic Indicator Approach. The average of the gross income, as defined in
the New Capital Adequacy Framework guidelines, for the previous 3 years i.e., FY17, FY18 & FY19 is considered for computing the
capital charge. The required capital is ` 19768.10 lakhs.
Table DF - 9
Interest Rate Risk in the Banking Book (IRRBB)
Interest Rate Risk in Banking Book (IRRBB) refers to the risk of loss in earnings and economic value of the Bank’s Banking Book as a
consequence of movement in interest rates. The Bank has significant portion of its assets and liabilities portfolio not marked to market
and is carried on the books of the Bank at historical values. Thus, the economic value of such assets and liabilities is generally not
ascertained on a regular basis and can be a significant source of risk if the asset or liability is not held till maturity.
IRRBB Earnings Perspective

The immediate impact of changes in interest rates in the market is on bank’s earnings by changing the Net Interest Income (NII). The
interest rate risk when viewed from this perspective is known as ‘Earnings Perspective’.
The asset liability profile up to 6 months is ‘asset sensitive’. The positive mismatches in the near term time buckets (up to 6 months)
will be beneficial to the bank if the interest rates increases in the economy.
Interest Rate Risk – Economic Value Perspective

The long-term impact of changes in interest rates in the economy will be on bank’s Market Value of Equity (MVE) since the economic
value of the bank’s assets, liabilities and off-balance sheet positions get affected due to variations in market interest rates.
Duration Gap Analysis (DGA) for IRR management is a simple approach to measure the volatility of market value of equity (MVE) in
response to the changes in interest rates in the economy.
Since the modified duration of the liabilities are less compared to the modified duration of assets, there would be a fall in the equity
value under major stress. In order to bring down the percentage of fall in market value of equity and earnings at risk under major
stress, we have been mobilizing term deposits with longer tenure i.e., 3-5 years and over 5 years. As longer the tenure of liabilities,
higher will be the modified duration.
The level of IRRBB (Earnings Perspective & Economic Value Perspective) is being measured and monitored on a quarterly basis
aiming at managing it within the limit over a period and minimizes the impact of interest rate movement on near term profitability.
The impact is calculated for a parallel shift of 200 bps across all the time buckets. The fall of NII is at ` 5341.05 lakhs and there would
be increase of MVE by ` 245.91 lakhs.
Table DF - 10
General Disclosure for Exposures related to Counterparty Credit Risk
Counterparty exposures for other entities are assessed subject to exposure ceilings as per the policy of the bank. Capital for Counterparty
Credit Risk exposure is assessed based on the Standardized approach.
Bank does not have bilateral netting. The Credit equivalent amount of the derivative exposure is assessed based on the Current
Exposure method.
Credit Exposure as on 31.03.2020 (` in lakhs)
Gross Positive fair Potential Future Total Credit

Notional Amount
value of contracts Exposure Exposure
Forward Contracts 94491.30 2503.39 2018.52 4521.91
Swaps 81759.89 2383.00 1661.04 4044.04
80
Table DF-11
Composition of Capital
(` in lakhs)
Common Equity Tier 1 capital: instruments and reserves

1 Directly issued qualifying common share capital plus related stock surplus (share premium) 240370.72
2 Retained earnings (127951.57)
3 Accumulated other comprehensive income (and other reserves)
4 Directly issued capital subject to phase out from CET1 (only applicable to non-joint stock companies)
Public sector capital injections grandfathered until January 1, 2018
5 Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)
6 Common Equity Tier 1 capital before regulatory adjustments 112,419.15
Common Equity Tier 1 capital: regulatory adjustments
7 Prudential valuation adjustments
8 Goodwill (net of related tax liability)
9 Intangibles other than mortgage-servicing rights (net of related tax liability) 5482.26
10 Deferred tax assets 55945.00
11 Cash-flow hedge reserve
12 Shortfall of provisions to expected losses
13 Securitization gain on sale
14 Gains and losses due to changes in own credit risk on fair valued liabilities
15 Defined-benefit pension fund net assets
16 Investments in own shares (if not already netted off paid-in capital on reported balance sheet)
17 Reciprocal cross-holdings in common equity 12.54
18 Investments in the capital of banking, financial and insurance entities that are outside the scope of
regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the
issued share capital (amount above 10% threshold)
19 Significant investments in the common stock of banking, financial and insurance entities that are outside
the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold)
20 Mortgage servicing rights (amount above 10% threshold)
21 Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax
62611.00
liability)
22 Amount exceeding the 15% threshold
23 of which: significant investments in the common stock of financial entities
24 of which: mortgage servicing rights
25 of which: deferred tax assets arising from temporary differences
26 National specific regulatory adjustments (26a+26b+26c+26d)
26a of which: Investments in the equity capital of the unconsolidated insurance subsidiaries
26b of which: Investments in the equity capital of unconsolidated non-financial subsidiaries
26c of which: Shortfall in the equity capital of majority owned financial entities which have not been consolidated
with the bank
26d of which: Unamortized pension funds expenditures
81
Regulatory Adjustments Applied to Common Equity Tier 1 in respect of Amounts Subject to Pre-Basel III
Treatment
of which: [INSERT TYPE OF ADJUSTMENT]
For example: filtering out of unrealized losses on AFS debt
securities (not relevant in Indian context)
27 Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2
to cover deductions
28 Total regulatory adjustments to Common equity Tier 1 124050.80
29 Common Equity Tier 1 capital (CET1) 11631.65
Additional Tier 1 Capital : Instruments 0.00
30 Directly issued qualifying Additional Tier 1 instruments plus related stock surplus (31+32)
31 of which: classified as equity under applicable accounting standards (Perpetual Non-Cumulative Preference
Shares)
32 of which: classified as liabilities under applicable accounting standards (Perpetual debt Instruments)
33 Directly issued capital instruments subject to phase out from Additional Tier 1
34 Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held
by third parties (amount allowed in group AT1)
35 of which: instruments issued by subsidiaries subject to phase out
36 Additional Tier 1 capital before regulatory adjustments
Additional Tier 1 Capital: regulatory adjustments
37 Investments in own Additional Tier 1 instruments
38 Reciprocal cross-holdings in Additional Tier 1 instruments
39 Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory
consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued
common share capital of the entity (amount above 10% threshold)
40 Significant investments in the capital of banking, financial and insurance entities that are outside the scope
of regulatory consolidation (net of eligible short positions)
41 National specific regulatory adjustments (41a+41b)
41a Investments in the Additional Tier 1 capital of unconsolidated insurance subsidiaries
41b Shortfall in the Additional Tier 1 capital of majority owned financial entities which have not been consolidated
with the bank
Regulatory Adjustments Applied to Additional Tier 1 in respect of Amounts Subject to Pre-Basel III Treatment
of which: [INSERT TYPE OF ADJUSTMENT e.g. DTAs]
of which: [INSERT TYPE OF ADJUSTMENT e.g. existing adjustments which are deducted from Tier 1 at 50%]
42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions
43 Total regulatory adjustments to Additional Tier 1 capital
44 Additional Tier 1 Capital (AT1)
44a Additional Tier 1 capital reckoned for capital adequacy
45 Tier 1 capital (T1 = CET1 + AT1) (29 + 44a) -11631.65
82
Tier 2 Capital : Instruments and provisions

46 Directly issued qualifying Tier 2 instruments plus related stock surplus 26922.00
47 Directly issued capital instruments subject to phase out from Tier 2
48 Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and
held by third parties (amount allowed in group Tier 2)
49 of which: instruments issued by subsidiaries subject to phase out
50 Provisions 9929.48
51 Tier 2 capital before regulatory adjustments 36,851.48
Tier 2 Capital : regulatory adjustments
52 Investments in own Tier 2 instruments
53 Reciprocal cross-holdings in Tier 2 instruments 0.00
54 Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory
consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued
common share capital of the entity (amount above the 10% threshold)
55 Significant investments13 in the capital banking, financial and insurance entities that are outside the scope
of regulatory consolidation (net of eligible short positions)
56 National specific regulatory adjustments (56a+56b)
56a of which: Investments in the Tier 2 capital of unconsolidated subsidiaries
of which: Shortfall in the Tier 2 capital of majority owned financial entities which have not been consolidated
56b
with the bank
Regulatory Adjustments Applied To Tier 2 in respect of Amounts Subject to Pre-Basel III Treatment
of which: [INSERT TYPE OF ADJUSTMENT e.g. existing adjustments which are deducted from Tier 2 at 50%]
of which: [INSERT TYPE OF ADJUSTMENT
57 Total regulatory adjustments to Tier 2 capital 0.00
58 Tier 2 capital (T2) 36,851.48
58a Tier 2 capital reckoned for capital adequacy 26396.59
58b Excess Additional Tier 1 capital reckoned as Tier 2 capital 0.00
58c Total Tier 2 capital admissible for capital adequacy (58a+58b) 26396.59
59 Total capital (TC=T1+T2) (45+58C) 14764.94
Risk Weighted Assets in respect of Amounts Subject to Pre-Basel III Treatment
of which: ...
60 Total risk weighted assets (60a+60b+60c) 1630671.22
60a of which: total credit risk weighted assets 102919.72
60b of which: total market risk weighted assets 125134.24
60c of which: total operational risk weighted assets 181775.63
Capital ratios
61 Common Equity Tier 1 (as a percentage of risk weighted assets) -0.88%
62 Tier 1 (as a percentage of risk weighted assets) -0.88%
63 Total capital (as a percentage of risk weighted assets) 1.12%
64 Institution specific buffer requirement (minimum CET1requirement plus capital conservation and
7.375%
countercyclical buffer requirements, expressed as a percentage of risk weighted assets)
83
65 of which: capital conservation buffer requirement 1.875%

66 of which: bank specific countercyclical buffer requirement NA
67 of which: G-SIB buffer requirement NA
68 Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted Assets) (Including
1.875%
point no.65 of above)
National minima (if different from Basel III)
69 National Common Equity Tier 1 minimum ratio (if different from Basel III minimum) 5.50%
70 National Tier 1 minimum ratio (if different from Basel III minimum) 7.00%
71 National total capital minimum ratio (if different from Basel III minimum) 9.00%
Amounts below the thresholds for deduction (before risk weighting)
72 Non-significant investments in the capital of other financial entities
73 Significant investments in the common stock of financial entities
74 Mortgage servicing rights (net of related tax liability)
75 Deferred tax assets arising from temporary differences (net of related tax liability)
Applicable caps on the inclusion of provisions in Tier 2
76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardized approach (prior to
9929.48
application of cap)
77 Cap on inclusion of provisions in Tier 2 under standardized approach 15193.80
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach
78
(prior to application of cap)
79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
Capital instruments subject to phase-out arrangements
(only applicable between March 31, 2017 and March 31, 2022)
80 Current cap on CET1 instruments subject to phase out arrangements
81 Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities)
82 Current cap on AT1 instruments subject to phase out arrangements
83 Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities
84 Current cap on T2 instruments subject to phase out arrangements
85 Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)
Notes to the Template
Row No. of the

Particular (` in lakhs)
template
10 Deferred tax assets associated with accumulated losses
Deferred tax assets (excluding those associated with accumulated losses) net of Deferred tax
liability
Total as indicated in row 10
If investments in insurance subsidiaries are not deducted fully from capital and instead considered
19
under 10% threshold for deduction, the resultant increase in the capital of bank
of which: Increase in Common Equity Tier I Capital
of which: Increase in Additional Tier I Capital
of which: Increase in Tier 2 Capital
84
Row No. of the

Particular (` in lakhs)
template
If investments in the equity capital of unconsolidated non-financial subsidiaries are not deducted
26b
and hence, risk weighted then:
(i) Increase in Common Equity Tier I Capital
(ii) Increase in risk weighted assets
Excess Additional Tier I capital not reckoned for capital adequacy (difference between Additional
44a
Tier I capital as reported in row 44 and admissible Additional Tier I capital as reported in 44a)
of which: Excess Additional Tier I capital which is considered as Tier 2 capital under row 58b
50 Eligible Provisions included in Tier 2 capital 9929.48
Eligible Revaluation Reserves included in Tier 2 capital 0.00
Total of row 50 9929.48
Excess Tier 2 capital not reckoned for capital adequacy (difference between Tier 2 capital as
58a
reported in row 58 and T2 as reported in 58a)
Table DF - 13
Main Features of Regulatory Capital Instruments
Disclosure template for main
S.
features of regulatory capital Equity Shares Series - VII (B) Series - VIII Series - IX Series - X
No.
instruments
1 Issuer LVB LVB LVB LVB LVB
2 Unique identifier (e.g. CUSIP, ISIN INE694C01018 INE694C08047 INE694C08054 INE694C08062 INE694C08070
or Bloomberg identifier for private
placement)
3 Governing law(s) of the instrument Companies Act, RBI Guidelines, RBI Guidelines, RBI Guidelines, RBI Guidelines,
SEBI Regulations, SEBI Regulations, SEBI Regulations, SEBI Regulations, SEBI Regulations,
RBI Guidelines, Companies Act Companies Act Companies Act Companies Act
and other related and other related and other related and other related and other related
rules regulations rules regulations rules regulations rules regulations rules regulations
etc., etc., etc., etc., etc.,
Regulatory treatment
4 Transitional Basel III rules Common Equity Tier - II Tier - II Tier - II Tier - II
Tier - I
5 Post-transitional Basel III rules Common Equity Eligible Eligible Eligible Eligible
Tier - I
6 Eligible at solo/group/ group & solo Solo Solo Solo Solo Solo
7 Instrument type Common Shares Unsecured Unsecured Non Unsecured Non Unsecured Non
Redeemable Convertible Convertible Convertible
Non Convertible Redeemable Redeemable Redeemable
Subordinated Basel III Basel III Basel III
(Tier- II) Bonds Compliant Compliant Compliant
in the nature (Tier- II) Bonds (Tier- II) Bonds (Tier- II) Bonds
of Debentures in the nature of in the nature in the nature
(Bonds) Series - Debentures of Debentures of Debentures
VII – Option - B (Bonds) Series (Bonds) Series (Bonds) Series - X
- VIII - IX
8 Amount recognized in regulatory capital 33671.38 226.00 4686.00 14010.00 8000.00
(` in lakhs )
9 Par value of instrument (` in lakhs ) ` 10 per share 10.00 10.00 5.00 5.00
10 Accounting classification Shareholders Liability Liability Liability Liability
Equity
85
Disclosure template for main

S.
features of regulatory capital Equity Shares Series - VII (B) Series - VIII Series - IX Series - X
No.
instruments
11 Original date of issuance Various Dates 10.02.2012 24.03.2014 30.09.2015 09.06.2017
12 Perpetual or dated Perpetual Dated Dated Dated Dated
13 Original maturity date No Maturity 10.02.2022 24.03.2024 30.09.2025 09.06.2024
14 Issuer call subject to prior supervisory No - - -
approval
15 Optional call date, contingent call dates NA The bank has not The bank has not The bank has not The bank has not
and redemption amount reserved any call reserved any call reserved any call reserved any call
option to redeem option to redeem option to redeem option to redeem
these bonds prior these bonds prior these bonds prior these bonds prior
to their maturity. to their maturity. to their maturity. to their maturity.
These bonds are These bonds are These bonds are These bonds are
redeemable at redeemable at redeemable at redeemable at
par. par. par. par.
16 Subsequent call dates, if applicable - - - -
Coupons / dividends - - - -
17 Fixed or floating dividend/coupon - Fixed Fixed Fixed Fixed
18 Coupon rate and any related index - 11.40% 11.80% 11.50% 10.70%
19 Existence of a dividend stopper NA No No No No
20 Fully discretionary, partially Fully Mandatory Mandatory Mandatory Mandatory
discretionary or mandatory Discretionary
21 Existence of step up or other incentive No No No No No
to redeem
22 Noncumulative or cumulative Non-cumulative Cumulative Cumulative Cumulative Cumulative
23 Convertible or non-convertible NA Non-convertible Non-convertible Non-convertible Non-convertible
24 If convertible, conversion trigger(s) NA NA NA NA NA
25 If convertible, fully or partially NA NA NA NA NA
26 If convertible, conversion rate NA NA NA NA NA
27 If convertible, mandatory or optional NA NA NA NA NA
conversion
28 If convertible, specify instrument type NA NA NA NA NA
convertible into
29 If convertible, specify issuer of NA NA NA NA NA
instrument it converts into
30 Write-down feature No No No No No
31 If write-down, write-down trigger(s) NA NA NA NA NA
32 If write-down, full or partial NA NA NA NA NA
33 If write-down, permanent or temporary NA NA NA NA NA
34 If temporary write-down, description of NA NA NA NA NA
write-up mechanism
35 Position in subordination hierarchy in NA All Depositors and All Depositors and All Depositors and All Depositors and
liquidation (specify instrument type other Creditor of other Creditor of other Creditor of other Creditor of
immediately senior to instrument) the Bank the Bank the Bank the Bank
36 Non-compliant transitioned features - - - -
37 If yes, specify non-compliant features - - - -
86
Table DF - 14
Full Terms and Conditions of Regulatory Capital Instruments
Details of Tier II Capital (Banks - Regulatory Capital instruments) raised by the Bank and the position as on 30.09.2019
Instruments Series - VII (B) Series-VIII Series - IX Series - X
Date of Allotment 10.02.2012 24.03.2014 30.09.2015 09.06.2017
Date of Redemption 10.02.2022 24.03.2024 30.09.2025 09.06.2024
Rate of Interest 11.40% 11.80% 11.50% 10.70%
Amount (` in lakhs ) 5050.00 7810.00 14010.00 10000.00
Bonds in Bonds in nature Bonds in nature Bonds in nature
nature of of of of
Nature of Instrument
Debentures Debentures Debentures Debentures
(Bonds) (Bonds) (Bonds) (Bonds)
Amount Subscribed 5050.00 7810.00 14010.00 10000.00
(` in lakhs ) Lakhs Lakhs Lakhs Lakhs
Face Value of the Bond 10.00 lakhs 10.00 lakhs 5.00 lakhs 5.00 lakhs
Issuance, Trading and Listing NSE NSE NSE NSE
Leverage Ratio (Solo) (` in lakhs)
Table DF - 18
Leverage Ratio Common Disclosure Template
Item Leverage ratio framework
On-Balance Sheet Exposure
1 On-balance sheet items (excluding derivatives and SFTs, but including collateral) 2454493.42
2 (Asset amounts deducted in determining Basel III Tier 1 capital) 5894.80
3 Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of lines 1 and 2) 2,448,598.62
Derivative Exposure
4 Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation
margin)
5 Add-on amounts for PFE associated with all derivatives transactions 4521.91
Gross-up for derivatives collateral provided where deducted from the balance sheet assets
6
pursuant to the operative accounting framework
7 (Deductions of receivables assets for cash variation margin provided in derivatives transactions)
8 (Exempted CCP leg of client-cleared trade exposures)
9 Adjusted effective notional amount of written credit derivatives
10 (Adjusted effective notional offsets and add-on deductions for written credit derivatives)
11 Total derivative exposures (sum of lines 4 to 10) 4521.91
Securities Financing Transaction Exposures
12 Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions
13 (Netted amounts of cash payables and cash receivables of gross SFT assets)
14 CCR exposure for SFT assets
15 Agent transaction exposures
16 Total securities financing transaction exposures (sum of lines 12 to 15)
87
Item Leverage ratio framework

Other off-balance sheet exposures
17 Off-balance sheet exposure at gross notional amount 131874.95
18 (Adjustments for conversion to credit equivalent amounts) 50790.90
19 Off-balance sheet items (sum of lines 17 and 18) 81084.05
Capital and total exposures
20 Tier 1 Capital -11631.65
21 Total exposures (sum of lines 3,11,16 and 19) 2,534,204.58
Leverage Ratio
22 Basel III leverage ratio (%) -0.459%
Liquidity Coverage Ratio (` in lakhs)

Total Unweighted Total Weighted
Value (Average) Value (Average)
High Quality Liquid Assets
1. Total High Quality Liquid Assets (HQLA) - 696755.67
Cash Outflows
2 Retail deposits and deposits from small business customers, of which 1871269.76 166686.68
(i) Stable Deposits 408805.95 20440.30
(ii) Less stable Deposits 1462463.81 146246.38
3 Unsecured wholesale funding, of which: 507916.82 123551.80
(i) Operational deposits (all counterparties) 0.00 0.00
(ii) Non-operational deposits (all counterparties) 507916.82 123551.80
(iii) Unsecured debt 0.00 0.00
4 Secured Wholesale funding 20933.51 0.00
5. Additional requirements, of which 616216.97 53798.72
(i) Outflows related to derivative exposures and other collateral requirements 8906.41 8906.41
(ii) Outflows related to loss of funding on debt products 0.00 0.00
(iii) Credit and Liquidity facilities 40.86 30.70
6 Other contractual funding obligations 18831.86 18831.86
7 Other contingent funding obligations 588437.84 26029.75
8 Total Cash Outflows 3016337.06 344037.20
Cash Inflows
9 Secured lending (e.g. reverse repos) 26070.04 0.00
10 Inflows from fully performing exposures 68394.63 34180.11
11 Other cash inflows 22366.16 18586.31
12 Total Cash Inflows 116830.84 52766.42
Total Adjusted Value
21 TOTAL HQLA 696755.67
22 Total Net Cash Outflows 291270.78
23 Liquidity Coverage Ratio (%) 239.21
88
CERTIFICATE ON CORPORATE GOVERNANCE
To,
The Members
The Lakshmi Vilas Bank Limited
Karur
I have examined the compliance of conditions of Corporate Governance by M/s. The Lakshmi Vilas Bank Limited for the year ended
31st March, 2020 as stipulated under Schedule V (E) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
as amended.
The compliance of the conditions of Corporate Governance is the responsibility of the management. My examination was limited to
procedures and implementation thereof, adopted by the Bank for ensuring the compliance of the conditions of Corporate Governance.
It is neither an audit nor an expression of opinion on the financial statements of the Bank.
In my opinion and to the best of my information and according to the explanations given to me, I certify that the Bank has compiled with
the conditions of Corporate Governance as stipulated in the above-mentioned SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended.
I state that no investor grievance is pending for a period exceeding one month against the Bank and as per the records maintained
by the Stakeholders Relationship Committee.
I further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or effectiveness with
which the management has conducted the affairs of the Bank.
KALIAPPAGOUNDER MUTHUSAMY
Place : Coimbatore Company Secretary in Practice
Date : 15.06.2020 M No: F 5865; CP: 3176
UDIN: F005865B000342971
Auditor’s Certificate on ESOS
This is to certify that M/s. The Lakshmi Vilas Bank Ltd has implemented the Employees Stock Option Scheme 2010 (ESOS -
2010) & Employees Stock Option Scheme 2017 (ESOS - 2017) in accordance with the resolutions passed by the Shareholders on
04th August 2010 and 18th July 2017 respectively. The implementation of both the said Schemes is in accordance with the applicable
SEBI Regulations.
During the FY 2019-20, no options have been granted under ESOS 2010 and ESOS 2017.
For M/s. P CHANDRASEKAR LLP

FRN: 000580S/S200066
S. SRIRAM
Place : Chennai Partner
Date : 10th July 2020 Membership No. 205496
UDIN: 20205496AAAADE6896
89
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015)
To
The Members
Lakshmi Vilas Bank Limited,
Salem Road, Kathaparai,
Karur – 639006.
I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Lakshmi Vilas Bank
Limited having CIN L65110TN1926PLC001377and having registered office at Salem Road, Kathaparai, Karur – 639006 (hereinafter
referred to as ‘the Bank’), produced before me by the Bank for the purpose of issuing this Certificate, in accordance with Regulation
34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
In my opinion and to the best of my information and according to the verifications (including Directors Identification Number (DIN)
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Bank & its officers, I hereby
certify that none of the Directors on the Board of the Bank as stated below for the Financial Year ending on 31st March, 2020 have
been debarred or disqualified from being appointed or continuing as Directors of companies / Bank by the Securities and Exchange
Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.
Sr. No. Name of Director DIN Date of appointment in the Bank

1 Bodavaram Krishnasetty Manjunath 00319891 06/06/2017
2 Subramanian Sundar 08655632 31/12/2019
3 Yapamakala Narayanasety Lakshminarayanamurthy 07534836 10/06/2016
4 Sudhakara Gupta Gunneswaran 00005150 27/09/2017
5 Upendra Hosdurg Sundar Kamath 02648119 20/04/2018
6 Narayanan Saiprasad 00137910 30/03/2019
7 Gorinka Jaganmohan Rao 06743140 02/12/2019
8 Raghuraj Gujjar 02734451 02/12/2019
9 Shakti Sinha 02876853 02/12/2019
10 Satish Kumar Kalra 01952165 02/12/2019
11 Meeta Makhan 07135150 23/01/2020
12 Kare Ramanarasimhasetty Pradeep 00153097 23/01/2020
13 Rajnish Kumar 07833241 17/05/2017
14 Sundaram Shankar 08633367 18/11/2019
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of the
Bank. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the
future viability of the Bank nor of the efficiency or effectiveness with which the management has conducted the affairs of the Bank.
Place: Coimbatore Kaliappagounder Muthusamy

Date : 15.06.2020 Company Secretary in Practice
M. No:5865 CP: 3176
UDIN: F005865B000342817
90
Annexure - A
MANAGEMENT DISCUSSIONS AND ANALYSIS

Industry Developments:
Key investments and developments in India’s banking industry include:
• In August 2019, the Government announced major mergers of public sector banks, which included United Bank of India and Oriental
Bank of Commerce to be merged with Punjab National Bank, Allahabad Bank to be amalgamated with Indian Bank and Andhra
Bank and Corporation Bank to be consolidated with Union Bank of India.
• As per Union Budget 2019-20, the Government proposed fully automated GST refund module and an electronic invoice system
that will eliminate the need for a separate e-way bill.
• The Indian banking sector embarked on the digital transformation journey a few years ago. While the initial objective may have
been to counter the competition from tech-savvy, new-age players, the COVID-19 crisis could be a game changer, pushing banks
to adopt digital technology.
• RBI introduced mobile app, ‘MANI’, for visually challenged people to help them identify currency notes.
• SEBI allowed mutual funds to invest an additional 15% of Assets Under Management (AUM) of corporate bond, banking and PSU
and credit risk funds in government securities and treasury bills.
• RBI announced the creation of a Payments Infrastructure Development Fund.
• RBI directed member banks to waive charges to their savings bank account holders for funds transfers done through NEFT system
which are initiated online effective from January 1, 2020.
• Growth of Agriculture and allied activities & Public Administration, Defence, and other services’ was higher in the first half of
2019-20 in comparison to second half 2018-19.
• The Income Tax Department has launched a new tool for the banks and post offices that will ensure Tax Deduction at Source
(TDS) on the cash withdrawals beyond the threshold.
Opportunities and Threats:

Opportunities
The banking industries have many opportunities within the industry and for consumers:
• Technological Advancements
The banking industry has always been dependent on technology. This is evident in the slew of digital services being offered by
banks today. However, instead of resting on their laurels, banks should continue to adopt the latest technological innovations. They
should concentrate on bringing out newer products and services in order to attract future generations.
• Rural Expansion Opportunities

The limited presence in rural areas is one of the weak points of the banking industry. But it can actually convert this weakness
into an opportunity. By expanding into villages and offering their services to the rural population, banks can expand their customer
base considerably.
• Social Evolution
Human society is evolving both economically and culturally. In this dynamic landscape, the needs and demands of customers with
rising income levels are bound to change. Banks need to adapt to this changing society. By providing better services the industry
can solidify its place in the future.
Threats
• The biggest threat of all – recession
The biggest threat to any industry handling money is a recession. It’s the most critical threat that can make or break a business. If
small and big businesses fall, it’ll have a direct consequence on the banking industry. The COVID pandemic has severely impacted
the economy and as a result the Banks have also been affected. While RBI and Government have initiated measures such as
moratorium, line of credit, the actual result will be visible once the economy is fully opened up post lockdown.
91
• Data breaches
Customers expect banks to provide an expert level of security when it comes to their sensitive data. This requires Banks to ensure
that the payment gateways used by these companies are highly secured and in compliance with The Payment Card Industry Data
Security Standard (PCI DSS). However, it is seen that customers give other websites details/access to their bank accounts/cards to
receive and transfer money. Any breach of these companies’ security systems can compromise and allow unauthorized access
to their personal bank accounts. Although there is nothing banks can do for breaches on other websites they can make sure their
own systems are adequately secured and also continuously educate their customers about the risk of sharing their account details
with other entities.
• Lack of Proper Cyber Security

The modern banking industry is entirely dependent on the cyber-world. Everything is stored digitally whether it be data storage,
monetary transactions or personal information. This makes the banking industry a prime target for hackers who seek to gain
financially by exploiting weaknesses in the digital infrastructure of the banks. Unless the banks take proper cyber security measures
to protect their data, they can face a serious threat from cyberspace.
• Stiff Competition
Banks worldwide face stiff competition. Not only from other banks but also institutions such as Non-Banking Financial Corporations
and Small Finance Banks which also offer a number of financial products. This has led to a shifting of the customer base from the
banks to NBFCs which find greater acceptance among the new breed of professionals.
• Global Economic Instability

Currently, the world is going through tough economic times. Trade wars, protectionist policies, and global downturns have all had
an effect on the international banking system. Unless the world economic conditions improve, banks can be facing a dire future.
The lockdown post COVID-19 has made countries more inward looking and it may take years before the old order is restored.
Outlook of the Bank:

• PCA has been imposed on the Bank on 27th September 2019, in view of continuing losses, mounting NPAs and inadequate capital
adequacy ratio. However, PCA will not restrict our operations for taking/repaying deposits or granting of loans.
• The Board approved merger of 7 branches, 6 in Mumbai and 1 in Chennai and RBI also gave general approval to the Bank to
close Metro/Urban branches. Accordingly, 6 branches in Mumbai were merged in the fourth quarter of FY 2019-20, with nearby
branches after following the relevant RBI guidelines in this regards.
• To have the optimization of cost, branches were merged where all the customers were shifted to the nearby branches, so that
customers are not inconvenienced, at the same time branch gets the benefit on rent and other operating expenses. More such
mergers are planned.
• CASA increased to 26.60%, marginally up from 25.67% in the last year. Our concentration was mainly on the retail deposits with
the bulk deposits constituting around 4.86% of the total deposits only. The bank has very good liquidity coverage of 273% and
another important indicator is that our provision coverage ratio (PCR), stands high at 71.25%.
• Bank has shifted all its ATMs to OPEX model from CAPEX model and they are now operated by two identified vendors. The new
ATMs belong to the latest technology, state-of-art ATMs with windows 10, having all the security requirement which banks have
been asked to provide by Reserve Bank of India. Outsourcing would result in lower costs for the Bank as there is no need to incur
capital expenditure to purchase and maintain ATMs. Further, deployment of ATMs under OPEX model with end-to-end solution,
e-surveillance capabilities and committed high uptimes, Bank will be able to focus on its core business, reduce costs and increase
resultant fee income.
• Government introduced guarantee backed loan, based on which our Bank has introduced Lakshmi Guaranteed Emergency Credit
Line. Our Credit Department has been very active in selecting the customers, and extending the benefits.
• Bank introduced a VRS for the employees and about 69 employees opted for the VRS. Another 300 employees have chosen to
pursue other careers.
• Bank has also withdrawn the mandate given to IBA for the 11th Bipartite Settlement that has been going on since November 2017.
• Bank has now signed a preliminary non-binding letter of intent with Clix Capital Services Pvt. Ltd and Clix Finance India Pvt. Ltd
(collectively CLIX group) for amalgamation of Clix Group with the Bank and due diligence is underway.
92
Risk & Concern:

During the year the Bank has taken steps to strengthen its risk management framework in order to keep pace with requirements in
terms of RBI guidelines and Basel prescriptions. Towards this, the Bank has strengthened the risk management team during the year
through induction of senior and experienced professionals. During the year there have been several meetings of executive level risk
committees headed by the MD & CEO. A number of steps have been taken under their aegis to improve the control environment. The
Bank has also conducted studies in the area of IT Risk and steps are being taken to improve the Bank’s capabilities in the IT area
from twin perspectives of business partnership and control environment. A comprehensive project to upgrade the risk management
framework and practice and align to the advanced approach of Basel has been taken up during the year. This will improve the Bank’s
maturity level in the domain of risk. The risk management framework has been interlinked with process improvements to bring about
lasting impact on the Bank’s operations. For the year ended March 31, 2020 the Bank maintained a Capital Adequacy Ratio of 1.12%
as against the regulatory required threshold of 10.875%. In order to meet regulatory requirements and business requirements, the
Bank is working on raising further capital, subject to requisite approval of shareholders and regulators.
Internal Control Systems:

The Bank has put in place well-articulated internal control measures in tune with the complexity of business operations, organization’s
size and supervisory compliance standards. The financial transactions are under maker/checker concepts, Monitoring of High value
transactions at Controlling Office, Surprise visits and periodical branch visits by the Controlling Offices, Monitoring of branches by
Audit Department showing spurt in advances for ensuring proper conduct of business as per the laid down systems and procedures,
Increase in frequency of the Jewel reappraisals and increase in periodicity of audits of high risk branches for a better compliance, staff
awareness is impressed up on for timely reporting of unethical incidents happening in the branches through secretalert@lvbank.in are
few of the control measures implemented for effective control mechanism.
There is continuous review of the efficacy of the systems and the following audit & inspections are carried out:
• Risk based internal audit to measure the risk in branches and work out mitigation.
• Credit Audit (Post Disbursement), Stock & Receivable Audit and Legal Audit.
• Revenue Audit / Income leakage audit and various snap audits to review specific areas of operation including compliance to
inspection observation.
• Concurrent Audit is carried out by empanelled Chartered Accountant firms.
• Information System Audit is carried out by information system auditors and qualified external auditors.
• Statutory Audit of branches and controlling offices by Chartered Accountant firms in terms of guidelines of the Reserve Bank of
India.
• Management Audit of controlling offices/departments at Corporate Office by trained internal inspectors of branches.
• Vigilance Audit of select branches by internal inspectors of branches.
Software application has been implemented to enhance the efficiency and effectiveness of risk based internal audit and to have robust
MIS on the risks and controls. Compliance function is strengthened through an independent compliance department and implementation
of application software for monitoring statutory, regulatory and internal compliance. An executive level committee consisting of top
executives, reviews every inspection report and the minutes of the said committee meetings are reviewed by Audit Committee of the
Board. The Audit Committee of the Board oversees the entire audit function of the Bank and the compliance thereof.
Discussion on Financial Parameters with respect to Performance:

Business Segmentation:
As on 31.03.2020
Deposit ` in Crore % Advances (Net) ` in Crore %

Demand Deposit 1383.97 6.45 Bills purchased & discounted 92.89 0.67
Cash Credits, overdrafts & loans
Savings Deposit 4327.59 20.19 7130.96 51.57
repayable on demand
Term Deposit 15731.63 73.36 Term Loan 6604.04 47.76
Total 21443.19 100.00 Total 13827.89 100.00
93
• Business mix reduced by ` 13118.87 crore (-25.61%) from ` 51235.40 crore to ` 38116.53 crore Y-o-Y.
• Although CASA portfolio has reduced by ` 1803.99 crore from ` 7514.76 crore to ` 5710.77 crore, on account of reduction in total
deposits, CASA % increased from 25.67% to 26.63%.
• NIM for 2019-20 stood at 1.56% (PY 1.65%).
• Operating loss was ` 15.46 crore as against ` 11.97 crore
• Net Loss of ` 836.04 crore for 2019-20 as against the net loss of ` 894.10 crore for 2018-19
• Cost to Income ratio increased to 101.98% (PY 101.48%)
• Asset Quality – Gross NPA 25.39% (PY 15.30%) and Net NPA 10.04% (PY 7.49%)
• Provision Coverage Ratio improved to 71.25% (PY 62.08%)
• Capital Adequacy Ratio (Basel III) stood at 1.12% (PY 7.72%)
• ROA and ROE stood at (-) 2.59% (PY (-) 2.32%) and (-) 60.54% (PY (-) 46.19%)
Staff / Industrial Relations:

The Bank’s staff strength was 4349 at the end of the financial year 2019-20. Specialist Officers / Executives have been recruited
in the areas of Credit, Law, Information Technology, Treasury, MSME and other specialized verticals. Manpower requirements are
assessed on a continuous basis.
Training is imparted towards reskilling and up skilling of the employees so as to develop the manpower to meet the emerging business
challenges and newer forms of risk driven by technology and market. Credit skills enhancement, NPA Management, Risk Management,
KYC compliance, IT & Cyber Security and Enhanced Customer Service are given emphasis by nominating the employees for training
in the Banks’ Staff Learning and Development Centre or in the reputed external training institutions.
Bank has evolved training and succession planning with a view to build an internal pool for managing the Bank’s ambitious growth
plans by
I. Identification of employee’s career growth plan through HRMS.
II. Analysis of training requirements for shouldering higher positions.
III. Mentoring the Successor on the job by assigning additional responsibilities.
The Bank maintains cordial relations with the Employees’ Union and Officers’ Association and working for fast-tracking the growth and
augment the productivity of the Bank.
Key Financial Ratios:

Key Financial Ratios & details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial
year) in Key Financial Ratios, along with detailed explanations therefor, or sector-specific equivalent ratios, as applicable.
Sr.No. Particulars FY 2019-20 FY 2018-19

i CRAR% 1.12% 7.72%
ii Tier I Capital (-)0.88% 5.72%
iii Tier II Capital 2.00% 2.00%
iv Gross NPA 25.39% 15.30%
v Net NPA 10.04% 7.49%
vi ROA (-)2.59% (-)2.32%
vii NIM 1.56% 1.65%
viii Interest Income as a % to Working Funds 6.84% 7.41%
ix Operating Profit as a % to Working Funds (-)0.05% (-)0.03%
x Leverage Ratio (-)0.46% 3.01%
xi Book Value Per Share (`) * 31.21 53.48
xii Earning Per Share (`) (-)25.16 (-)34.66
* Book value adjusted for DTA, Intangible assets is ` (-) 5.63 (31.03.2020) and ` 25.08 (31.03.2019).
94
The Bank’s Gross Non Performing Loans (GNPA) have increased from ` 3358.99 crore as on 31.03.2019 to ` 4233.21 crore as
on 31.03.2020 due to general stress in the economy coupled with some loan accounts in the stressed sectors falling in to the NPA
category. The Net NPA (NNPA) reduced from ` 1506.29 crore an on 31.03.2019 to ` 1387.86 crore as on 31.03.2020.
Further the Bank’s loan book had to be narrowed for want of sufficient capital support. These happenings have affected the interest
margins and earnings of the Bank. Added to this, depreciation on the Bank’s investments also increased due to unrelenting rise in the
market yield of Bonds. Consequent upon the above factors, the Bank’s operating margins, net profit, NPA levels and Capital Adequacy
Ratios impacted and the ratios representing GNPA, NNPA, CRAR, ROA, NIM, Operating Profit, Leverage Ratio and Book Value per
Share at the end of March 2020 were lower/adverse by more than 25% when compared to the position as on 31.03.2019.
Details of change in Networth:

• Return on Networth (RONW) for the year 2019-20 was (-) 60.54% as compared to (-) 46.19% for the year 2018-19, due to Net
Loss of ` 836.04 crore for the year 2019-20.
Disclosure of Accounting Treatment:

• The financial statements are prepared following the going concern concept, on historical cost basis and confirm to the Generally
Accepted Accounting Principles (GAAP) in India which encompasses applicable statutory provisions, regulatory norms prescribed
by Reserve Bank of India (RBI) from time to time, notified Accounting Standards (AS) issued under Section 133 of the Companies
Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 to the extent applicable to Banks and current
practices prevailing in the banking industry in India. Income and Expenditure are generally accounted on accrual basis, unless
otherwise stated and comply with requirements as per RBI guidelines and the provisions of Banking Regulation Act, 1949. Accounting
Policies adopted in the preparation of financial statements are consistent with those followed in the previous year.
95
Annexure - B
BOARD OF DIRECTORS AND COMMITTEES

The composition of the Board of Directors is governed by the provisions of the Companies Act, 2013, Banking Regulation Act, 1949,
Listing Agreement entered with National Stock Exchange of India Limited, Mumbai and BSE Limited, Mumbai and Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended to the extent applicable.
The Board had 14 Directors as on 31.03.2020, of which 1 Director is an Executive Director (MD&CEO), 4 Directors are Non-Executive
and Non-Independent Directors, 7 Directors are Non-Executive and Independent Directors including the Non-executive Chairman
and 2 RBI Additional Directors. None of the Directors are related to each other. The members of the Board are eminent persons with
considerable professional expertise and experience in Banking, Accountancy, Agriculture, Small Scale Industry, Risk Management,
Payment & Settlement Systems, Finance, Economics, Cooperation, Law, Finance and Human Resources and Business Management.
During the year under review, twenty seven (27) Board Meetings were held. The Meetings were held on 05.04.2019, 12.04.2019,
22.04.2019, 03.05.2019, 28.05.2019, 14.06.2019, 26.06.2019, 04.07.2019, 05.07.2019, 25.07.2019, 06.08.2019, 28.08.2019,
19.09.2019, 26.09.2019, 27.09.2019, 09.10.2019, 02.11.2019, 09.11.2019, 20.11.2019, 02.12.2019, 18.12.2019, 31.12.2019,
31.12.2019, 23.01.2020, 14.02.2020, 27.02.2020, 28.02.2020.
Committees of Directors:
The Board has constituted various Committees of Board to deal with matters, which need special and continued focus and timely
monitoring of the activities falling within the terms of reference of the Committees and in compliance with the various regulatory
requirements. The details pertaining to the Directors, Composition of the Board Committees, the details of the Chairman and Members
and the details of the Meetings held and that of the attendance during the year under review, are provided in Annexure C.
The details of such specialized Board Committees as on 31.03.2020 are as under:
Audit Committee:
Audit Committee of the Board, is chaired by Shri B.K.Manjunath, an Independent Director of the Bank.The Audit Committee provides
direction and oversees the operation of total audit function of the Bank as per RBI guidelines. The terms of reference of Audit Committee
are in accordance with RBI guidelines, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies
Act, 2013 and include the following:
• Overseeing the Bank's financial reporting process and the disclosure of its financial information to ensure correct, adequate and
credible disclosure of financial information.
• Recommending the appointment of auditors, their terms of appointment including remuneration and reviewing the performance of
auditors including statutory auditors.
• Reviewing with management the annual financial statements before submission to the Board with special emphasis on accounting
policies and practices, compliance with accounting standards and other legal requirements concerning financial statements.
• Reviewing the adequacy of the Audit and Compliance function, including their policies, procedures, techniques and other
regulatoryrequirements.
During the year, fifteen (15) meetings were held. The Meetings were held on 05.04.2019, 12.04.2019, 03.05.2019, 27.05.2019,
14.06.2019, 04.07.2019, 25.07.2019, 06.08.2019, 28.08.2019, 18.09.2019, 19.10.2019, 02.11.2019, 09.11.2019, 22.01.2020,
14.02.2020.
Nomination, Remuneration and Compensation Committee:

The Nomination, Remuneration and Compensation Committee is chaired by Shri Y N Lakshminarayana Murthy, Non-Executive
Independent Director. The Committee is constituted as per the legal and regulatory requirements under the Banking Regulation Act,
the SEBI Regulations and the Companies Act, 2013.
The scope of the Committee includes the following:
• Scrutiny of the declarations submitted by the Directors and for carrying out the due diligence process for the appointment of directors
as per RBI Circular DBOD.No.BC.104/08.139.001/2003-04 dated 25.06.2004.
• Overseeing the framing, review and implementation of compensation policy of the Bank on behalf of the Board as laid down in
Reserve Bank of India circular pertaining to the guidelines issued on the compensation of Whole Time Directors / Chief Executive
Officers / Risk takers and Control function staff, etc.
96
• Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the
Board a policy, relating to the remuneration of the directors, key managerial personnel and other employees;
• Formulation of criteria for evaluation of performance of Independent Directors and the Board;
• Identifying persons who are qualified to become directors and who may be appointed in senior management in accordance with
the criteria laid down, and recommend to the Board their appointment and removal.
• Framing of detailed terms and conditions of the ESOS as per Securities and Exchange Board of India (Share Based Employee
Benefits) Regulations, 2014, besides the administration and superintendence of the ESOS scheme and further to ensure that
thereis no violation of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, by any employee
or the Bank in this regard. The scope and role of the Committee shall also include such other assignments as is and as may be
assigned by the regulatory / statutory authorities from time to time.
The details pertaining to the criteria for performance evaluation for Independent Directors is mentioned in the Directors' Report.
During the year, eleven (11) meetings were held. The meetings were held on 27.05.2019, 14.06.2019, 25.07.2019, 24.10.2019,
31.10.2019, 20.11.2019, 29.11.2019, 17.12.2019, 31.12.2019, 22.01.2020, 21.03.2020
Stakeholders Relationship Committee:

The Stakeholders Relationship Committee is chaired by Shri N Saiprasad, a Non-Executive & Non-Independent Director.
The Stakeholders Relationship Committee specifically looks into the redressal of grievances of shareholders and other security
holders including complaints related to transfer of shares, non-receipt of annual report and non-receipt of declared dividends. Details
of name of the Chairman & members of the Committee, Compliance Officer, meetings and attendance during the year are provided
in another part of this Annual Report. The terms of reference of Stakeholders Relationship Committee are in accordance with SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
During the year, four (4) meetings were held. The Meetings were held on 14.06.2019, 27.09.2019, 18.12.2019, 27.02.2020.
Risk Management Committee:

The Risk Management Committee, constituted as per RBI guidelines, formulates Bank's credit and Market risk policies and reviews
the Assets and Liabilities of the Bank based on periodical structural liquidity and dynamic liquidity statements on outflows and inflows
and also analyses the interest rate sensitivity of assets and liabilities.
Special Committee for monitoring and following up cases of Frauds:

Pursuant to the directions of the Reserve Bank of India, the Bank has constituted a Special Committee for monitoring and following up
cases of Frauds, exclusively dedicated to the monitoring and following up of cases of fraud involving amounts of ` 1.00 crore and above.
The objective of this Committee is to monitor the effective detection of frauds and ensuring prompt reporting thereof to regulatory and
enforcement agencies, monitoring the preventive measures for curbing of frauds, recovery measures follow up on fraud accounts, etc.
During the year, five (5) meetings were held. The Meetings were held on 14.09.2019, 19.10.2019, 18.12.2019, 23.01.2020, 27.02.2020.
Customer Service Committee:

Pursuant to the directions of the Reserve Bank of India, the Bank has constituted a Customer Service Committee exclusively dedicated
to bring about improvement in the quality of customer service provided by the bank.
During the year, two (2) meetings were held. The Meetings were held on 18.09.2019 and 21.03.2020.
Management Committee:
Pursuant to the directions of the Reserve Bank of India, the Bank has constituted a Management Committee of the Board which
isvested with full powers for sanction / ratification of all kinds of loans and advances normally falling within the purview of the lending
policies framed by the Board from time to time and full powers for approving compromise proposals in respect of loans and advances
normally falling within the purview of the compromise policy framed by the Bank from time to time and approval of capital and revenue
expenditure, filing suits / appeals, premises approval, infrastructure improvement, investments and any other matter referred to /
delegated to the Committee by the Board.
During the year, fifteen (15) meetings were held. The Meetings were held on 27.05.2019, 29.06.2019, 10.07.2019, 26.07.2019,
07.09.2019, 14.09.2019, 18.09.2019, 03.11.2019, 02.12.2019, 17.12.2019, 10.01.2020, 18.01.2020, 20.01.2020, 21.01.2020,
20.03.2020.
97
IT Strategy Committee:
Pursuant to the directions of the Reserve Bank of India, the Bank has constituted an IT Strategy Committee of the Board and the roles
and responsibilities of this Committee includes oversight of the IT strategy and policy documents, measuring the contribution of IT to
business and ensuring that the IT organizational structure complements the business model. The Committee also exercises the powers
to approve the requisite proposals and their related expenditure pertaining to Information Technology and Alternate Channels & ATMs.
HR Committee:
The role of the HR Committee of Board includes powers for framing policies for recruitment, compensation, incentives, training,
promotion, transfer, service conditions, disciplinary proceedings, performance appraisal, etc.
During the year, four (4) meetings were held.The Meetings were held on 22.04.2019, 27.09.2019, 19.10.2019, 02.12.2019.
CSR Committee:
Formulated as per Section 135 and Schedule VII of the Companies Act, 2013 read with Companies (Corporate Social Responsibility
Policy) Rules 2014, the Committee exercises such powers as laid down under the applicable provisions of the Act and the Rules thereto.
During the year, a meeting of the Committee was held on 06.08.2019.
Committee of Directors for Capital Raising:

The Board has constituted a Committee for Capital Raising, which deals with capital raising plans and such relevant scope as the
Board may authorize from time to time.
Meeting of Independent Directors:

In accordance with Section 149(7) and Schedule IV of the Companies Act, 2013 an exclusive meeting of the Independent Directors
of the Bank was held on 21.03.2020.
Review Committee on Willful Defaulter and Non-cooperative Borrowers

This Committee has been formulated in line with the RBI Master Circular on Wilful Defaulter dated 01st July 2014 and 07th January
2015. This Committee also functions as the Review Committee on Non-cooperative borrowers.
NPA Review Committee:

NPA Review Committee has been constituted on 23.01.2020.
The terms of reference of the Committee, inter-alia, include the following:
1. Periodical review of the advances appearing in SMA;
2. Periodical review of Non-performing Assets and monitoring the recovery in such accounts;
3. All powers vested with Management Committee of the Board (MCB) for approving settlement proposals in respect of NPAs / initiating
recovery actions including legal actions against the borrowers / such other powers of the MCB as per the Recovery Policy of the
Bank.
4. Any other relevant matters as may be advised by the Board.
During the year, ten (10) meetings were held. The Meetings were held on 29.01.2020, 05.02.2020, 06.02.2020, 13.02.2020, 20.02.2020,
22.02.2020, 16.03.2020, 17.03.2020, 18.03.2020, 19.03.2020.
Details of Sitting Fees Paid to Directors:

All the Non-Executive Directors were paid remuneration only by way of sitting fees for each Board / Committee Meetings. No stock
options were granted to any of the Non-Executive Directors. The Non-Executive Directors were paid ` 35,000/- as sitting fees which
is within the limits prescribed under the Companies Act, 2013.
Additional Information pertaining to Directors’ Retiring by Rotation:

At this 93rd AGM, Shri N.Saiprasad, Director is retiring by rotation and being eligible, offers himself for re-appointment and the additional
information to be provided to the Shareholders pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 about the retiring director seeking re-election is furnished in the Notice to the members.
98
ANNEXURE - C
Composition of the Board of Directors together with the attendance at meetings of the Board, its specialised Committees and General Meetings and directorship held from 01.04.2019 to 31.03.2020
Name of the Director,

DIN & No. of Shares
held by them as on
Board
Meeting
Committee
(1 meeting)
Regulations
31.03.2020
(4 meetings)
(27 meetings)
(15 meetings)
(15 meetings)
(10 meetings)
as on 31.03.2020
Corporate Social
the Board ( MCB)
Committee (SRC)
(HRC) (4 meeting)
(CSC)(2 meetings)
Name of the Other
(RMC)(4 meetings)
up cases of Frauds
(CSRC) (1 meeting)
Director (1 meeting)
Willful Defaulter and
(NRCC)(11 meetings)
Review Committee on
held as on 31.03.2020
Representation as per
Extraordinary General
Special Committee for
Audit Committee (ACB)

Meeting of Independent
Banking Regulation Act

NPA Review Committee
Chairman of the Board /

COD for Capital Raising
Annual General Meeting
Board (ITSC)(4 meetings)
(SCM&FUCF)(5 meetings)
Monitoring and following-

Responsibility Committee
his/her Directorship, if the
is a Director & category of
No. of Other Directorships
Stakeholders Relationship
Other Companies in which
director is in a listed entity
Management Committee of
Nomination, Remuneration
Noncooperative Borrowers
(RCWDR&NCB) (1 meeting)
HR Committee of the Board

Companies in which he/she
he/she is a Chairman of any
Committee as on 31.03.2020
& Compensation Committee
IT Strategy Committee of the
Category as per SEBI (LODR)

Risk Management Committee
Customer Service Committee
Shri B.K.Manjunath
Non-
Non-Executive Chairman
ACB, ITSC & Majority - Executive M/s. Bhramaputra Power
DIN 00319891 27 15 NA 14 1 NA 5 4 4 10 1 1 9 1 1 Yes Yes 1 Nil
CSRC Accountancy - Independent Pvt Ltd
(Number of Shares:
Director
212839)
Shri S.Sundar
Managing Director & CEO SCMF, CSC,
DIN 08655632 MCB, HRC,
Majority -
(Number of Shares: Nil) COD for Executive
Banking and 4 NA NA 5 1 1 2 1 NA NA NA NA 6 NA NA NA NA Nil Nil Nil
(From 31.12.2019 as CR, RCWD Director
Accountancy
Additional Director & & NCB &
from 01.01.2020 as MD NPARC
& CEO)
Shri Parthasarathi
Mukherjee Managing
Majority - Executive
Director & CEO 11 NA NA 2 1 NA NA 1 1 NA 1 1 NA NA 1 NA Yes NA NA NA
Banking Director
DIN 02446180
(Till 31.08.2019)
Shri Y.N.Lakshminarayana Non-
Majority -
Murthy Executive
NRCCB Agriculature and 25 8 4 7 1 2 1 NA NA 11 1 NA 10 1 NA Yes No Nil Nil Nil
DIN 07534836 - Independent
Rural Economy
(Number of Shares: 6626) Director
Non-
Shri Kusuma R Muniraju
Executive
DIN 02111974 Majority - Law 6 5 NA NA NA NA NA NA 1 2 NA NA NA NA NA NA No NA NA NA
99
- Independent
(Till 19.06.2019)
Director
Promoter
Group - Non-
Smt.Anuradha Pradeep
Executive
DIN 00291763 Minority - Law 15 6 2 NA 2 1 2 1 3 5 NA NA NA NA 1 Yes No NA NA NA
- Non
(Till 01.11.2019)
Independent
Director
1. Amaryllis Properties
Private Limited
Promoter 2. Magenta RE Asset
Group - Non- Private Limited
Shri G.Sudhakara Gupta
Minority - Executive 3. Holzwerk Interior Private
DIN 00005150 25 4 3 NA 1 1 2 3 NA NA NA NA NA NA NA Yes Yes 5 Nil
Business - Non Limited
(Number of Shares: 2666)
Independent 4. Jacaranda Properties
Director Private Limited
5. Pristine Propservices
Private Limited
1. M/s.Ram Ratna
Majority Wires Limited-Listed-
- Banking Independent Director
Non- Chairman of Audit
Shri H S Upendra Kamath (Practical 2. M/s.MFAR Holding
Executive Committee of the Board
DIN 02648119 Experience) 25 14 NA 14 4 NA 5 1 4 NA NA 1 10 1 NA Yes Yes 4 Private Limited
- Independent in M/s.Online PSB Loans
(Number of Shares: Nil ) and Small Scale 3. M/s.Green Bridge Capital
Director Limited
Industry (Special Advisory Private Limited
Knowledge) 4. M/s.Online PSB Loans
Limited
Promoter
Shri N.Saiprasad Group - Non-
DIN 00137910 Minority - Executive
SRC 27 1 2 11 2 NA 1 3 3 6 1 NA NA NA 1 Yes Yes Nil Nil Nil
(Number of Shares: Business - Non
63865) Independent
Director
DIN & No. of Shares
held by them as on
Board
Meeting
Committee
(1 meeting)
Regulations
31.03.2020
(4 meetings)
(27 meetings)
(15 meetings)
(15 meetings)
(10 meetings)
as on 31.03.2020
Corporate Social
the Board ( MCB)
Committee (SRC)
(HRC) (4 meeting)
(CSC)(2 meetings)
Name of the Other
(RMC)(4 meetings)
up cases of Frauds
(CSRC) (1 meeting)
(NRCC)(11 meetings)
Review Committee on
held as on 31.03.2020






Smt.Supriya Prakash Sen Majority - Non-
DIN 07932937 Information Executive
9 NA NA NA 1 NA NA 1 NA NA NA NA NA NA NA Yes NA NA NA NA
(From 14.06.2019 till Technology & -Independent
01.10.2019) Finance Director
Majority - Risk
Shri Gorinka Jaganmohan Management,
Non-
Rao Payment &
Executive M/s.lndia Bulls Trustee
DIN 06743140 RMC Settlement 7 2 NA 1 2 NA NA 2 NA 1 NA NA NA 1 NA NA NA 1 Nil
-Independent Company Limited
(Number of Shares: Nil) Systems,
Director
(From 02.12.2019) Finance and
Banking
1. M/s.Innovaneer Realtors
Private Limited
2. M/s.Mahadeshwara
Power Private Limited
Shri Raghuraj Gujjar Non-
3. M/s.Pranava City
DIN 02734451 Executive
Minority - Complex Private Limited
(Number of Shares: - Non- 7 NA 2 NA NA NA NA NA NA 4 NA NA NA NA NA NA NA 5 Nil
Accountancy 4. M/s.Brindavan
766948) Independent
Hydropower Private
(From 02.12.2019) Director
Limited
5. M/s.Kare Power
Resources Private
Limited
Majority -
100
Shri Shakti Sinha Economics, Non-
DIN 02876853 Cooperation, Executive
6 NA NA NA NA 1 3 1 NA NA NA NA NA 1 NA NA NA Nil Nil Nil
(Number of Shares: Nil) Law, Finance -Independent
(From 02.12.2019) and Human Director
Resources
Chairman of Risk
Majority -
Management Committee & IT
Banking, Risk
Strategy Committee, Member
Shri Satish Kumar Kalra Management, Non-
of Audit Committee of Board,
DIN 01952165 Business Executive M/s.PNB Gilts Limited-
7 NA NA 1 2 NA 2 NA NA NA NA NA NA 1 NA NA NA 1 Nomination & Remuneration
(Number of Shares: Nil) Management, -Independent Listed-Independent Director
Committee, Share Transfer
(From 02.12.2019) Finance Director
and Issue of duplicate
and Human
Shares Committee in M/s.
Resources
PNB Gilts Limited
1. M/s.Asian Hotels
(West) Limited-Listed-
Independent Director
Smt. Meeta Makhan Minority - Non-
2. M/s.Doundo Services Chairman of Shareholders
DIN 07135150 Banking & Executive
3 NA NA 1 1 NA NA NA NA NA NA NA NA 1 NA NA NA 4 Private Limited Grievance Committee in M/s.
(Number of Shares: Nil) Business -Independent
3. M/s.Advent Enterprises Asian Hotels (West) Limited
(From 23.01.2020) Management Director
Private Limited
4. M/s.One File Technology
Private Limited
DIN & No. of Shares
held by them as on
Board
Meeting
Committee
(1 meeting)
Regulations
31.03.2020
(4 meetings)
(27 meetings)
(15 meetings)
(15 meetings)
(10 meetings)
as on 31.03.2020
Corporate Social
the Board ( MCB)
Committee (SRC)
(HRC) (4 meeting)
(CSC)(2 meetings)
Name of the Other
(RMC)(4 meetings)
up cases of Frauds
(CSRC) (1 meeting)
(NRCC)(11 meetings)
Review Committee on
held as on 31.03.2020






Shri Sanjay Kumar
Minority - Non-
Khemani
Accountancy Executive
DIN 00072812 2 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
& Finance -Independent
(From 23.01.2020 to
Category Director
18.03.2020)
1. M/s. Pranava Electronics

Private Ltd.
2. M/s. Kare Electronics
and Development
Private Limited.
3. M/s. Kare Power
Resources Private Ltd
Promoter 4. M/s. Brindavan
Shri K R Pradeep
- Non- Hydropower Pvt Ltd
DIN 00153097 Minority -
Executive 5. M/s. Pranava City
(Number of Accountancy 1 NA NA NA NA 1 NA NA NA NA NA NA NA NA NA NA NA 10 Nil
- Non Complex Private Limited
Shares:6730378) & Law
Independent 6. M/s. Innovaneer Realtors
(From 23.01.2020)
Director Private Limited
7. M/s.Pranava DMCC
8. M/s. Vision EL-Tech and
Services Pvt Ltd.
9. M/s. Celestial Techsoft
and Services Pvt. Ltd.
10. M/s. Soni Exim Private
Limited
Shri Suvendu Pati
101
RBI Additional
DIN 07452701 NA 14 12 NA NA NA NA NA NA NA NA NA NA NA NA NA No No NA NA NA
Director
(Till 17.11.2019)
Shri Rajnish Kumar

RBI Additional
(DIN 07833241) NA 21 13 NA NA NA NA NA NA NA NA NA NA NA NA NA No No Nil Nil Nil
Director
(No. of Shares: Nil)
Shri Sundaram Shankar

(DIN 08633367) RBI Additional
NA 6 2 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Nil Nil Nil
(No. of Shares: Nil) Director
(From 18.11.2019)
ATTENDANCE AT AUDIT COMMITTEE MEETINGS FOR THE FY 2019-2020

Meeting details
Name of the Committee Whether Whether
Members Category of Director Held during the attended last attended
% of
(Sarvashree / Smt.) tenure of director / Attended AGM (Y/N) EGM (Y/N)
total
invitee
B.K.Manjunath - Chairman of
Non Executive Chairman / Independent 15 15 100% YES YES
the Committee
Y.N.Lakshminarayana Murthy Non - Executive Director / Independent 8 8 100% YES NO
G.Sudhakara Gupta Non - Executive Director / Non Independent 5 4 80% YES YES
H.S.Upendra Kamath Non - Executive Director / Independent 15 14 93% YES YES
N.Saiprasad Non - Executive Director / Non Independent 2 1 50% YES YES
Gorinka Jaganmohan Rao Non - Executive Director / Independent 2 2 100% NA NA
Rajnish Kumar - RBI Additional
Non - Executive - Nominee 15 13 87% NO NO
Director
Sundaram Shankar - RBI
Non - Executive - Nominee 2 2 100% NA NA
Additional Director
Kusuma R Muniraju Non - Executive Director / Independent 5 5 100% NA NO
Anuradha Pradeep Non - Executive Director / Non Independent 6 6 100% YES NO
Suvendu Pati - RBI Additional
Non - Executive - Nominee 13 12 92% NO NO
Director
ATTENDANCE AT NOMINATION, REMUNERATION & COMPENSATION COMMITTEE MEETINGS FOR THE FY 2019-2020
Name of the Committee Meeting details
Members Held during the
Category of Director Attended % of total
tenure of director /
(Sarvashree / Smt.) invitee
B.K.Manjunath - Chairman of
Non Executive Chairman / Independent 10 10 100%
the Committee
Y.N.Lakshminarayanamurthy Non Executive Director / Independent 11 11 100%
N.Saiprasad Non Executive Director /Non- Independent 6 6 100%
Gorinka Jaganmohan Rao Non Executive Director / Independent 1 1 100%
Raghuraj Gujjar Non Executive Director / Non-Independent 4 4 100%
Kusuma R Muniraju Non Executive Director / Independent 2 2 100%
Anuradha Pradeep Non Executive Director / Non -Independent 5 5 100%
STAKEHOLDER'S RELATIONSHIP COMMITTEE FOR THE FY 2019-2020

Name of the Non Executive Director heading the Committee Shri N.Saiprasad
Non Executive Director / Non Independent
Name and designation of Compliance Officer Shri N.Ramanathan
Company Secretary & Compliance Officer
Number of shareholders' complaints received so far 1
Number not solved to the satisfaction of shareholders Nil
Number of pending complaints Nil
102
INFORMATION ABOUT SHARE TRANSFER WORK TO A DELEGATED AUTHORITY

Description of Telephone
Full Address of delegated authority Fax Numbers E-Mail ID
delegated authority Numbers
Name and designation Shri N.Ramanathan 044 - 22205306 044 -22205317 secretarial@lvbank.in
of officer Company Secretary & Compliance Officer
of the Company The Lakshmi Vilas Bank Limited
Corporate Office, "LVB House"
Name of Board Stakeholders Relationship Committee 044 - 22205306 044 -22205317 saiprasad.narayanan@
Committee Shri N.Saiprasad gmail.com
and Chairman's Name The Lakshmi Vilas Bank Limited
Corporate Office, "LVB House"
The Registrar and M/s.Integrated Registry Management 044 - 28140801 044- 28142479 lvb@integratedindia.in
Share Services Private Limited, 28140802 28143378
Transfer Agents II Floor, "Kences Towers" 28140803
North Usman Road,
T.Nagar, Chennai - 600 017
103
Annexure - D
GENERAL SHAREHOLDERS’ INFORMATION

Means of Communication:
The Bank published its quarterly and annual financial results in English language in "Business Standard" (All India Edition)
newspaper and in vernacular language in "Dinamani" (Trichy Edition) newspaper. The results are displayed on the Bank's website at
www.lvbank.com. The official news releases and the presentations made to the institutional investors or to the analysts are also
displayed in the website.
Management discussions and analysis forms part of the Annual Report, which has been sent to the shareholders of the Bank.
Financial Year - 1st April, 2019 to 31st March, 2020

93rdAnnual General Meeting:
Date & Time: 25th September, 2020 at 11.00 a.m.
Venue: Meeting will be held through Video Conferencing
Details of last three Annual General Meetings held and Special Resolutions passed thereat are as below:
S.No. of Financial Day, Date, Time & Special Resolutions passed in the previous three
AGM Year Venue Annual General Meetings
90 2016-2017 Tuesday, 18th July, 2017 • Item No.12 – Raising of capital through QIP, GDR, ADR etc.
at 10.00 a.m at • Item No.13 – Approval for borrowing / raising funds in Indian / foreign
Registered Office, currency by issue of debt securities upto ` 250.00 crores to eligible
Karur. investors on private placement basis.
• Item No. 14 – ESOP 2017 scheme approval.
91 2017-2018 Wednesday, • Item No. 07 – Raising of capital through QIP, GDR, ADR etc.
8th August, 2018 • Item No. 08 – Approval for borrowing / raising funds in Indian / foreign
at 10.00 a.m at currency by issue of debt securities to eligible investors on private
Registered Office, placement basis.
Karur.
92 2018-2019 Friday, • Item No. 08 – Raising of capital through QIP, GDR, ADR etc.
27th September, 2019 • Item No. 09 – Approval for borrowing / raising funds in Indian / foreign
at 10.00 a.m at currency by issue of debt securities to eligible investors on private
Registered Office, placement basis.
Karur.
Postal Ballot
During the last financial year ending 31.03.2020, no postal ballot was conducted. As on date, there is no proposal requiring approval
of the members through special resolution to be passed through postal ballot.
Annual General Meeting for FY 2020-21 will be held on or before 30th September, 2021 in line with the provisions under the
Companies Act.
Board Meetings:
Results for the quarter ending June 2020 - On or before 14th August, 2020 (Results already published on 30th July 2020).
Results for the quarter ending September 2020 - On or before 14th November, 2020.
Results for the quarter ending December 2020 - On or before 14th February, 2021.
Results for the quarter ending March 2021 - On or before 30th May, 2021.
104
Compliance with Regulation 34(3) & Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:
Name, Address and Stock Code of the Stock Exchanges where the securities of the Lakshmi Vilas Bank Limited are listed are as below:
NAME AND ADDRESS OF THE STOCK EXCHANGE STOCK CODE

The National Stock Exchange of India Limited (Equity Shares and Tier II Bonds) Exchange Plaza, 5th Floor, LAKSHVILAS
Plot No. C/1, G Block, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 051
The BSE Limited (Equity Shares) Floor 25, PJ Towers, Dalal Street, Mumbai - 400 001 534690
Bank confirms that the applicable Annual Listing Fees has been paid to the above mentioned stock exchanges.
Stock Market Data
Listed with NSE on 21.06.2000

Month High Low No. of Shares Traded
April 2019 97.40 75.25 97113250
May 2019 83.35 70.00 24785543
June 2019 75.65 53.70 37869060
July 2019 73.90 45.75 34715651
August 2019 49.20 36.50 39384483
September 2019 41.90 34.70 31009154
October 2019 33.00 13.35 67380706
November 2019 22.10 16.15 73831324
December 2019 21.50 17.15 22948118
January 2020 17.75 15.00 14236354
February 2020 21.75 14.30 20988843
March 2020 16.40 10.40 31485954
Listed with BSE on 24.09.2012

Month High Low No. of Shares Traded
April 2019 97.35 75.65 11733009
May 2019 83.50 68.35 10137449
June 2019 76.00 53.90 3293404
July 2019 73.75 46.00 1710876
August 2019 49.45 36.85 3598806
September 2019 41.85 34.75 12212391
October 2019 33.05 13.35 14401583
November 2019 22.10 16.20 11470933
December 2019 21.50 17.10 2146540
January 2020 17.75 15.10 2364906
February 2020 21.90 14.40 3819827
March 2020 16.45 10.45 3710127
105
Performance of the Equity Shares relating to NSE Nifty Index during the year 2019-20
120 14000
100 12000
10000
80
8000
60
6000
40
4000
20 2000
0 0
LVB NIFTY
Performance of the Equity Shares relating to BSE Index during the year 2019-20
120 45000
40000
100
35000
80 30000
25000
60
20000
40 15000
10000
20
5000
0 0
LVB SENSEX
The Registrar and Share Transfer Agent is M/s. Integrated Registry Management Services Private Limited.
Share Transfer Process:

All requests pertaining to shares held in physical form are processed by the Registrar and Share Transfer Agent of the Bank -M/s.
Integrated Registry Management Services Private Limited and approved by the Company Secretary, being vested with the authority
by the Board of Directors of the Bank and the certificates are dispatched to the transferees within a maximum period of 15 days from
the date of receipt of the transfer documents by M/s. Integrated Registry Management Services Private Limited, provided if the share
106
documents are valid in all respects. Share transfers, dividend payments, demat requests and all other investor related activities are
attended to and processed at the office of our Registrar and Share Transfer Agent. In compliance with Regulation 40 (9) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, a half-yearly compliance certificate from a Company Secretary
in Practice is obtained, which is also filed with the Stock Exchanges.
Further, the shareholders may note that SEBI vide its circular dated April 20, 2018 and notification dated June 08, 2018 had emphasized
on dematerialization of shares, in cases where shares of a listed entity, have been held in physical mode. Therefore, for their own
safety and interests, the shareholders who hold shares in physical form are requested to get their physical shares dematerialised by
making application to depository participants.
Shareholders' Correspondence should be addressed to:

M/s. Integrated Registry Management Services Private Limited
II Floor, "Kences Towers", No.1 Ramakrishna Street
North Usman Road, T. Nagar, Chennai - 600 017
Ph: 044-28140801/2/3 Fax: 044-28142479
E-mail: lvb@integratedindia.in
Contact details of Debenture Trustees of the Bank for Tier-II Bonds (Debentures):
The Bank has raised capital by way of Tier II Bonds (debentures) through various Series during certain financial years and the same
are listed with the WDM segment of the NSE. The details of the debenture trustee for all the series of Tier II Bonds is as below:
IDBI Trusteeship Services Limited
Regd. Office: Asian Building, Ground Floor,
17, R. Kamani Marg, Ballard Estate, Mumbai - 400 001.
Phone: 022-40807012 / 7000 | Fax: 022-66311776 | E-mail: itsl@idbitrustee.com
Details of Credit Rating assigned by Rating Agencies and any revision thereto for the Unsecured Redeemable Non-Convertible
Subordinated Lower Tier-II Bonds in the nature of Debentures issued by the Bank:
Outstanding Series
Current Rating Rating Revisions during the year 2019-2020
& ISIN
Series – VII B Brickwork Rating: “BWR BB+” (BWR • Revised from “BWR BBB-” (Credit Watch with Developing
INE694C08047 Double B Plus) (Credit watch with Implications) to “BWR BB+” (Credit Watch with Developing
Developing Implications). Implications) on 09.10.2019.
C A R E R a t i n g : “ C A R E B B + ; • Revised from ‘’CARE BBB’’ (Triple B; Credit Watch with negative
Negative” (Double B Plus; Outlook: implications) to ‘’CARE BBB’’ (Triple B; Credit Watch with developing
Negative). implications) on 12.04.2019.
• Revised from ‘’CARE BBB’’ (Triple B) (Credit Watch with developing
implications) to ‘’CARE BBB-’’ (Triple B Minus) (Credit Watch with
developing implications) on 10.09.2019.
• Revised from “CARE BBB-“(Triple B Minus) (Credit Watch with
developing implications) to “CARE BB+; Negative” (Double B Plus;
Outlook: Negative) on 11.10.2019.
Series – VIII C A R E R a t i n g : “ C A R E B B + ; • Revised from ‘’CARE BBB’’ (Triple B; Credit Watch with negative
INE694C08054 Negative” (Double B Plus; Outlook: implications) to ‘’CARE BBB’’ (Triple B; Credit Watch with developing
Negative). implications) on 12.04.2019.
Series – IX • Revised from ‘’CARE BBB’’ (Triple B) (Credit Watch with developing
INE694C08062 implications) to ‘’CARE BBB-’’ (Triple B Minus) (Credit Watch with
developing implications) on 10.09.2019.
Series – X
INE694C08070 • Revised from “CARE BBB-“ (Triple B Minus) (Credit Watch with
developing implications) to “CARE BB+; Negative” (Double B Plus;
Outlook: Negative) on 11.10.2019.
107
Compliance with Regulation 6 (2) (d) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:
SEBI has advised the listed companies to designate an exclusive email ID for redressal of Investor Complaints under Regulation 6(2)
(d) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Accordingly, an exclusive and separate e-mail id
“investorsgrievances@lvbank.in” has been designated for redressal of investors' complaints and the Compliance Officer monitors the
same.
Distribution of Shareholding under different category as on 31.03.2020 is given below:

Category Number of Records % Number of Shares %
Upto 500 65280 69.59 9583616 2.85
501 - 1000 11053 11.78 8627346 2.56
1001 - 2000 7235 7.71 10765258 3.20
2001 - 3000 3154 3.36 7957667 2.36
3001 - 4000 1495 1.59 5287786 1.57
4001 - 5000 1252 1.33 5806843 1.72
5001 - 10000 2282 2.43 16508014 4.90
ABOVE 10001 2057 2.19 272177221 80.83
TOTAL 93808 100.00 336713751 100.00
Dematerialization:
Bank has 93808 shareholders as on 31.03.2020, being fully paid shares of ` 10/- each. Of this 80580 folios representing 33,02,86,983
(98.09%) shares are held in Demat Form.
Bank's Equity shares ISIN: INE694C01018
The shares of the Bank are admitted under demat mode with both the depositories viz., National Securities Depository Limited and
Central Depository Services (India) Limited.
Nomination Facility:
Shareholders who hold shares in physical form may avail of the Nomination Facility at any time by submitting Nomination Form in
Form No.SH – 13 as prescribed under Section 72 of the Companies Act, 2013. While the Form is available in the MCA website, the
form may also be obtained from our Registrar & Share Transfer Agent M/s. Integrated Registry Management Services Private Limited.
The duly filled in form should be submitted to our Registrar & Share Transfer Agent for registering the nomination.
Shareholders holding shares in electronic form are requested to contact their Depository Participants directly for recording their
nomination.
Bank Account Details:

In order to avoid fraudulent encashment of dividend warrants, the members holding shares in physical form are requested to provide their
Bank Account details to our Registrar and Share Transfer Agent in order to credit the applicable dividend to their concerned account.
Unclaimed Dividend / Refund:

As per Section 124(5) read with Section 125 of the Companies Act, 2013 and Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016 ('IEPF Rules'), as amended, the dividends which were unclaimed for a
period of seven years or more have to be transferred to "Investor Education and Protection Fund" ('IEPF Fund') maintained with
Central Government. In compliance with the same, the Bank had transferred the unclaimed dividend amount pertaining to the year
2011-12 amounting to ` 43,14,453.50 to the Investors Education and Protection Fund and the unclaimed dividend pertaining to the year
2012-13 will be transferred to the IEPF Fund after the due date.
As per Section 124 (6), read with the IEPF Rules, the Bank is also required to transfer the related equity shares in respect of which
dividends are not claimed for the last 7 consecutive years for credit to IEPF Suspense account in Dematerialized form. In line with the
applicable proviso, during the year, the Bank has already transferred 62354 shares pertaining to the unclaimed dividend for the years
2011-2012 to the IEPF Authority. The details of the unclaimed dividend are uploaded in the website of Investor Education and Protection
Fund and in the website of the Bank and the shareholders may verify their details from the said websites and approach us for claim.
108
As per the IEPF Rules, any person whose shares, unclaimed dividend, unclaimed refund has been transferred to the IEPF fund, may
claim the shares under Section 124(6) or apply for refund under Section 125(3) (a), to the authority by submitting an online application
in Form IEPF 5 available on the website www.iepf.gov.in. The Bank has also appointed a nodal officer and a deputy nodal officer for
the purpose of coordination with IEPF authority. The contact information of the officers are as below and the same has also been made
available online as per the IEPF Rules and can be accessed at https://www.lvbank.com/shareholder-info.aspx
Contact Information of Nodal Officer for IEPF Authority:

N. Ramanathan, Company Secretary,
Secretarial Department, The Lakshmi Vilas Bank Ltd.,
Corporate Office, LVB House, No.4, Sardar PatelRoad, Guindy, Chennai - 600 032
Phone No. 044-22205306
E-mail ID: Ramanathan.Natarajan@lvbank.in
Contact Information of Deputy Nodal Officer for IEPF Authority:

M.Ramesh, Senior Manager – Secretarial Department
The Lakshmi Vilas Bank Limited
Corporate Office, LVB House, No.4, Sardar Patel Road,
Guindy, Chennai – 600 032
Phone No. 044-22205306
E-mail ID: ramesh.muthugopalan@lvbank.in
Disclosure under INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

Details of the transfer/s to the IEPF made during the year as mentioned below:
Amount of unclaimed/unpaid dividend and the corresponding shares; Details given elsewhere in the report
Redemption amount of preference shares; Not Applicable
Amount of matured deposits, for companies other than banking companies, along Not Applicable
with interest accrued thereon
Amount of matured debentures along with interest accrued thereon Not Applicable
Application money received for allotment of any securities and due for refund along Not Applicable
with interest accrued;
Sale proceeds of fractional shares arising out of issuance of bonus shares, merger Not Applicable
and amalgamation;
Details of the resultant benefits arising out of shares already transferred to the IEPF Not Applicable
The amount of donation, if any, given by the company to the IEPF Nil
Such other amounts transferred to the IEPF, if any, during the year Nil
Information in respect of Unclaimed Dividend & Refund and last date for making claim is given below:
Unclaimed Dividend:
Amount as on
Financial Year Date of Declaration Number of Shares Last date for claim
31.03.2020 in `
2012-13 06.08.2013 46,34,979.00 7248 04.09.2020
2013-14 26.09.2014 18,82,083.00 8510 25.10.2021
2014-15 03.09.2015 39,43,412.00 8016 02.10.2022
2015-16 10.06.2016 56,84,112.00 8111 09.07.2023
2016-17 18.07.2017 53,09,811.90 8227 16.08.2024
2017-18 08.08.2018 Dividend was not declared for the year
2018-19 27.09.2019 Dividend was not declared for the year
Unclaimed Refund:
Amount
Rights Issue Year Date of Refund Last date for claim
as on 31.03.2020 in `
2014-15 02.09.2014 1,07,700.00 01.09.2021
2017-18 04.01.2018 4,40,176.00 03.01.2025
109
Shares lying in Unclaimed Suspense Account:

Records / No. of
Particulars Shares
shareholders
Opening Balance as on April 1, 2019 18 12235
Add: Transfer during the year 2019-20 0 0
Less: Claims received and shares transferred * 0 0
Less: Shares transferred to IEPF account 0 0
Closing Balance as on March 31, 2020 ** 18 12235
* Number of shareholders who approached the Bank for the transfer of shares from the suspense account.
** Voting rights on these shares shall remain frozen till the rightful owners of such shares claim these shares.
Shares held in Electronic form:

All instructions regarding bank account details, which the shareholders wish to be incorporated in their dividend warrant will have to
be submitted to their depository participants. Instructions already given by them in respect of shares held in physical form will not be
automatically applicable to the dividend paid on shares held in electronic form and the Bank or Share Transfer Agent (STA) will not
entertain any request for deletion / change of Bank details already printed on dividend warrants. Only those Bank account details as
per information received from the depositories will be considered.
All instructions regarding change of address, nomination, power of attorney etc., shall be given directly to their depository participants
and the Bank or STA will not entertain any such requests at their end. Shareholders having their shareholdings partly in demat form
and partly in physical form, should follow the steps narrated above separately.
Other Disclosures:
Certificate on Corporate Governance:
The Bank has complied with conditions of corporate governance prescribed under SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. A Certificate to this effect from Practising Company Secretary is available in another part in this Annual report.
Mandatory requirements and adoption of non–mandatory requirements:

The Bank complies with all the mandatory requirements with the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 and amendments thereon.
With respect to compliance with Discretionary Requirements as mentioned in Part E of Schedule II of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 the Bank is in compliance with the following;
1. Being a banking entity, as mandated by Reserve Bank of India's directive, the Bank appoints separate persons to the post of
Chairperson and Managing Director & CEO.
2. Apart from internal direct reporting to the appropriate authority, the Internal Auditor also has a lateral reporting line to Audit Committee
of the Board.
Certificate under Regulation 34 (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:
Certificate from Practicing Company Secretary pursuant to Regulation 34 (3) read with Schedule V of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 that none of the directors on the Board of the company have been debarred or disqualified
from being appointed or continuing as directors of companies by the Board / Ministry of Corporate Affairs or any such statutory authority
is available in another part in this Annual report.
Disclosures on materially significant Related Party Transactions:

During the financial year, the Bank did not enter into any materially significant related party transaction which could have a potential
conflict of interest with its promoters, directors, management or relatives etc., except the transactions entered into in the normal course
of banking business.
The Bank's policy on dealing with related party transaction is provided in the website of the Bank and can be viewed at:
https://www.lvbank.com/policies.aspx
110
Commodity Price Risk or Foreign Exchange Risk and Hedging Activities

The details with respect to commodity price risk in terms of SEBI circular no. EBI/HO/CFD/CMD1/CIR/P/2018/0000000141 dated
15th November 2018 is as follows:
1. Risk management policy of the listed entity with respect to commodities including through hedging (Such policy shall take into
account total exposure of the entity towards commodities, commodity risks faced by the entity, hedged exposures, etc. as specified
below)
2. Exposure of the listed entity to commodity and commodity risks faced by the entity throughout the year:
a. Total exposure of the listed entity to commodities in INR
b. Exposure of the listed entity to various commodities:
% of such exposure hedged through commodity derivatives

Exposure in
Exposure in
Quantity terms
Commodity INR towards
towards the Domestic market International market
Name the particular
particular Total
commodity
commodity
OTC Exchange OTC Exchange
NIL
c. Commodity risks faced by the listed entity during the year and how they have been managed. - Not Applicable
Penalties or Strictures imposed on matters related to capital markets:

There are no penalties or strictures imposed on the Bank by Stock Exchanges or SEBI or any statutory authority, on any matter related
to capital markets, during the last three years.
There were no significant and material orders passed by the regulators, courts, tribunals impacting the going concern status and
Bank's operations in future.
The Bank has not issued any ADR or GDR during the FY of the Annual Report or any earlier FYs. The bank’s equity shares or debt
securities have not been suspended from trading by any of the Stock Exchanges.
Fees paid to Statutory Auditors:

The total fees for all services paid by the Bank to the Statutory Auditor (no other entities related to the Bank) is provided herein below:
Amount in `
Particulars
(inclusive of GST)
Quarterly review of accounts 8,26,000
Annual Central Audit fee 21,24,000
LFAR Fee 1,77,000
Tax Audit Fee 3,54,000
Fee for branches allotted 13,67,620
Certification fee for Amalgamation 2,95,000
GST Annual Certification fee 5,90,000
Other Certification fee 2,360
Out of pocket expenses 4,49,447
Total 61,85,427
Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:
Details of the number of complaints received, disposed and pending during the year 2019-20 pertaining to sexual harassment of
women at workplace, are provided in this report in another part.
111
Details of utilization of funds raised through preferential allotment or qualified institutions placement as specified under
Regulation 32 (7A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:
The Bank has utilized the funds raised through Preferential Allotment during FY 2019-20 for the purposes as mentioned in the notice
of the Extra Ordinary General Meeting held on May 20, 2019, wherein the shareholders had approved the raising of funds. There was
no Qualified Institutions Placement made during the year under review.
Whistle Blower Policy:

The Bank has laid down a Whistle Blower Policy, in line with the regulatory requirements which is available in our Bank’s website
at https://www.lvbank.com/policies.aspx. During the year, no person has been denied access to the Audit Committee of the Board.
CEO / CFO Certification:

The Compliance certificate under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 furnished by the Chief
Executive Officer and Chief Financial Officer has been duly submitted to the Board.
Code of Conduct:
The Board of Directors at its meeting held on 15.04.2005, approved the Code of Conduct for all the Directors and Senior Management
Personnel, which is available in our Bank’s website at https://www.lvbank.com/code-of-conduct.aspx. This Annual Report contains a
declaration signed by the CEO affirming compliance to the Code of Conduct by Directors and Senior Management Personnel.
DECLARATION BY MD & CEO:

The Board of Directors and the Senior Management Personnel of the Bank have affirmed confirming to the Code of Conduct of the
Bank for the year ended 31.03.2020.
S Sundar
Managing Director & CEO (Interim)
112
Annexure - E
ANNUAL REPORT ON CSR ACTIVITIES

In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013. The Ministry of Corporate Affairs has notified
Section 135 and Schedule VII of the Companies Act 2013 as well as the provisions of the Companies (Corporate Social Responsibility
Policy) Rules, 2014 to come into effect from April 1, 2014. The Act defines CSR as activities that promote poverty reduction, education,
health, environmental sustainability, gender equality, and vocational skills development.
Vision & Mission

Through the CSR projects, our bank intends to contribute in its own small way to the social and economic upliftment of needy individuals /
areas, mostly in the places in which it operates.
Scope
CSR policy will apply to all projects / programs undertaken as part of the Bank’s Corporate Social Responsibility activities. It will be
developed, reviewed and updated by reference to relevant codes of Corporate Governance and International standards (or) best
practices while keeping it always in line with the CSR Rules (Sec. 135 of Companies Act 2013)
Preferred CSR intervention areas

The CSR intervention areas will be as prescribed under Section 135 of the Companies Act as amended from time to time with the
preferred scope being as below:
a) Promoting Education
b) Promoting Rural Sports
c) Setting up old age homes
d) Catering to needs of needy and downtrodden section of society
e) Participation in “Swachh Bharat Abhiyan” of Government of India
f) Focus on the developmental needs of Girl Children
g) Meeting infrastructural requirements of needy Government / Semi-Government educational institutions
h) Any other area approved by CSR committee
The Bank’s CSR policy is available on the website www.lvbank.com/download/Corporate_Social_Responsibility_policy.pdf
Composition of CSR Committee

The Bank has a Board-Level CSR committee that provides oversight of CSR policy execution. Our CSR committee comprises:
 Shri B.K.Manjunath, Chairman of the Committee
 Shri S.Sundar, MD & CEO, Member
 Shri Shakti Sinha, Member
Financial details
Section 135 of the Companies Act, 2013 and Rules made thereunder prescribe that every company having a net worth of ` 500 crore
or more, or turnover of ` 1,000 crore or more or a net profit of ` 5 crore or more during any financial year shall ensure that the company
spends, in every financial year, at least 2% of the average net profits made during the three immediately preceding financial years, in
pursuance of its Corporate Social Responsibility Policy. The financial details as sought by the Companies Act, 2013 are as follows:
Average Net profit of the Bank for last three financial years ` 12669.07 Lacs
Prescribed CSR expenditure (2% of Average Net profit) for FY 2019-20 ` 253.38 Lacs
Amount to be spent for the current fiscal ` 253.38 Lacs
113
Amount unspent in the last financial year upto (2018-19) ` 1360.44 Lacs
Total amount to be spent for the financial year ` 1613.82 Lacs
Amount spent during the current fiscal ` 20.23 Lacs
Amount unspent for FY 2019-20 ` 1593.59 Lacs
CSR activities undertaken by your Bank are as under

(Amount in Lacs)
(1) (2) (3) (4) (5) (6) (7) (8)
S. CSR project (or) Sector in which Projects or Amount Amount spent Cumulative Amount
No. activity identified the project is programs (1) Local outlay on the projects expenditure spent: Direct
covered area or other (budget) or programs upto to the or through
(2) Specify the projects or Sub-heads (1) reporting implementing
state and district programs Direct expenditure period agency*
where projects or wise on projects or
programs were programs (2)
undertaken Overheads
1. Promoting Promotion of Bangalore & Karur 14.40 + 15.20 15.20 Direct – 4.53
Education Education app. taxes (inclusive of taxes) Implementing
agency –
10.66
2. Health Care Health Care Karur 5.00 + 5.00 5.00 Direct – 5.00
app. taxes (inclusive of taxes)
3. Contribution to the BharatKeVeer NA 0.03 + 0.03 (inclusive of 0.03 Direct – 0.03
Prime Minister's Corpus Fund app. taxes taxes)
National Relief Fund
or any other fund
setup by the Central
Government or the
State Governments
for socio-economic
development and
relief and funds
Amount Spent (`) 20.23

* Details of the implementing agencies are listed below:
Promoting Education: Vidyashilp Community Trust and Karnataka Arya Vysya Charitable Trust
Your Bank has done all the preliminary work like identification of priority areas, checking the due diligence etc. so that amount
can be spent on CSR activities as per statutory requirements. Further, the bank has decided to set up a foundation named as
“LVB Foundation” for carrying out the CSR related activities in a full-fledged manner.
Our CSR responsibilities

We hereby affirm that the CSR policy, as approved by the Board, has been implemented and the CSR committee monitors the
implementation of the CSR projects and activities in compliance with our CSR objectives.
S.Sundar B.K.Manjunath
MD & CEO Chairperson - CSR committee
114
Annexure - F
Particulars pursuant to Section 197(12) of the Companies Act, 2013 and Rule 5 of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
Sl. No Particulars Disclosure
1. The ratio of remuneration of each director to the median MD&CEO: MEDIAN 5.29:1
employees remuneration of the Company for the financial
year (FY)
2. The percentage increase in remuneration of each Director, Mr. Parthasarathi Mukherjee, MD & CEO: NIL
Chief Financial Officer, Chief Executive Officer, Company
Mr. Sundar.S, CFO: NIL
Secretary in the FY
Mr. Sundar.S, MD & CEO: NIL
Mr. Ramanathan.N, CS: 21.93%
3. The percentage increase in the median remuneration of 9.32%

employees in the financial year
4. The number of permanent employees on the rolls of company 4349
5. Average percentile increase already made in the salaries of The average percentage increase made in the salaries of
employees other than the managerial personnel in the last total employees excluding Managerial Personnel for the
financial year and its comparison with the percentile increase FY 2019-20 is around 4.30% and the average percentage
in the managerial remuneration and justification thereof. increased in the remuneration of the Managerial Personnel
is around 27.50%.
6. Affirmation that the remuneration is as per the remuneration The remuneration paid is as per the remuneration policy of
policy of the Bank. the bank.
115
Information required under Sub Rule (2) of Rule 5 of Companies (Appointment and Remuneration of managerial personnel) Rules, 2014:
The percentage of equity

Nature of Whether any such employee
Qualifi- Date of shares held by the employee
Employment The age is a relative of any director or
Name Remuneration cations and commence- The last employment held by such in the company within the
Designation of Employee whether of such manager of the company and
(Sarvashree) received experience of ment of employee before joining the Bank meaning of
contractual or employee if so, name of such director or
employee employment clause (iii) of sub-rule (2)
otherwise manager:
above
Top ten employees in terms of remuneration drawn
Ex-Senior Vice President & Head B.Sc Vice President & Sr. Private Banker
Mr Peeush Jain 53,63,272.00 Regular 14.05.2014 45 8100 No
- Retail Banking 23 years - The Royal Bank of Scotland
B.Com,
CEO – Enterprise Financial
Ex-President & Chief Operating M.Com,
Mr Narayanan P P 49,07,050.00 Regular 05.02.2018 57 Services, Janalakshmi Financial 1333 No
Officer CAIIB
Service
32 Years
B.A. Regional Head – North Corporate
Mr Sanjay Kumar Rai Ex-Senior Vice President 48,81,346.38 Regular 19.01.2018 53 Nil No
24 years Coverage Group, Axis Bank
Senior Vice President & Head
– Treasury Present tenure
M.COM,
(Earlier tenure from 01.04.19 to – 25.11.2019
Mr Gurumurthy R.K 44,86,480.42 Contractual CAIIB 60 Treasurer, Bank One Ltd., Mauritius 6800 No
14.11.19) Earlier tenure -
28 years
(Engagement post retirement 30.01.2014
from 25.11.19 onwards)
116
B.Com, Head – Corporate Banking
Senior Vice President & Head -
Mr Nachiappan N 43,69,824.00 Regular ICWA, CAIIB 19.01.2017 58 Branch, Bangalore & Chennai, Nil No
Commercial Banking Operations
38 years Axis Bank
Ex-Senior Vice President &
B.E, PGDM Head – Global Markets (Ex-India),
Mr Vasant Shukla Head - ALM and Interest Rates, 41,00,668.89 Regular 20.10.2016 44 2000 No
18 years Axis Bank, Singapore
Treasury
Senior Vice President & Head- M.SC, M.B.A Vice President-Banking &
Mr Padmanabhan Premkumar 40,68,835.00 Regular 02.06.2014 57 1000 No
HR, Business and Operations 34 years Treasury - Punj Lloyd Ltd.
Senior Vice President & Head B.Sc, LLB

Mr Ravindra Kumar G 39,22,704.00 Regular 16.08.2012 56 Chief Manager, Canara Bank 1500 No
- Law 28 years
Senior Vice President & Chief B.Sc, M.S Chief Manager (Officiating),
Mr Manikandan M 38,15,582.80 Regular 08.04.2009 44 Nil No
Technology Officer 23 years Lakshmi Vilas Bank
President & Head – Stressed
Assets (Earlier tenure from Present
01.04.2019 to 03.05.2019) Tenure –
B.E, CAIIB General Manager,
Mr Meenakshi Sundaram RM President – Wholesale Banking 37,65,206.00 Contractual 09.09.2019 62 Nil No
37 years Canara Bank
(MRC & Corporate Banking) Earlier Tenure
(Present tenure from 09.09.2019 – 29.09.2014
onwards)
Employees who were employed throughout the financial year and was in receipt of remuneration for that year which, in the aggregate, was not less than one crore and two lakh rupees:
The percentage of equity
Nature of shares held by the employee Whether any such employee
Qualifi- Date of
Employment The age in the company within the is a relative of any director or
Name Remuneration cations and commence- The last employment held by such
Designation of Employee whether of such meaning of manager of the company and
(Sarvashree) received experience of ment of employee before joining the Bank
contractual or employee if so, name of such director or
otherwise manager:
above
NIL
Employees who were employed part of the financial year and was in receipt of remuneration for any part of that year, at a rate which, in the aggregate, was not less than eight lakh and fifty thousand rupees per month:
The percentage of equity Whether any such

Nature of shares held by the employee is a relative
Qualifi- Date of
Employment The age employee in the company of any director or
Name Designation of Remuneration cations and commence- The last employment held by such
whether of such within the meaning of manager of the Month / Gross
(Sarvashree) Employee received experience of ment of employee before joining the Bank
contractual or employee company and if so,
otherwise name of such director
above or manager:
NIL
10. Details of every employee, if employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as the case may be, at a
rate which, in the aggregate, is in excess of that drawn by the Managing Director or Whole Time Director and holds by himself or along with his spouse and dependent children not
less than two percent of the equity shares of the Company:
117
NIL
ANNEXURE – G
ENPLOYEE STOCK OPTION SCHEMES (ESOSs)
Disclosure Pursuant to the provisions of the Securities and Exchange Board of India
(Share Based Employee Benefits) Regulations, 2014
A. Relevant Disclosures in terms of the ‘Guidance Note on accounting for employee share-based payments’ issued by ICAI has been
made in Notes to Accounts attached to the Annual Report.
B. Diluted EPS on issue of shares pursuant to the Schemes
Diluted earnings per share pursuant to the issue of share on Diluted earnings per share of the company calculated after
exercise of options calculated in accordance with AS - 20, considering the effect of potential equity shares arising on
"Earnings Per Share" account of exercise of options is ` (25.16)
The details of stock options as on 31st March 2020 under the Employee Stock Option Scheme 2010 and Employee Stock Option
Scheme 2017 (“ESOS 2010 & ESOS 2017”):
Scheme Specific Disclosures
i) General Disclosures:
Description of each ESOS that existed at any time during the year, including the general terms and conditions of each ESOS –
Sr.
Particulars ESOS 2010 ESOS 2017
No.
1 General Information The Employee Stock Option Scheme The Employee Stock Option Scheme
of the Bank known as LVB ESOS 2010 of the Bank known as LVB ESOS 2017
was formulated as per Securities and was formulated as per The Securities
Exchange Board of India (Employees and Exchange Board of India (Share
Stock Option Scheme and Employees Based Employee Benefits) Regulations,
Stock Purchase Scheme) Guidelines, 2014. The scheme was approved by
1999. The scheme was approved by the shareholders to create, issue, grant
the shareholders to create, issue, grant / allot to the eligible present and future
/ allot to the eligible present and future employees including Directors of the
employees including Directors of the Bank which entitles the option holders
Bank which entitles the option holders to subscribe to 1 (one) equity share of
to subscribe to 1 (one) equity share of the Bank of ` 10/- each and in aggregate
the Bank of ` 10/- each and in aggregate 50,00,000 equity shares of the face value
50,00,000 equity shares of the face value of ` 10/- at such price, in such manner,
of ` 10/- at such price, in such manner, during such period and on such terms and
during such period and on such terms and conditions and in the manner as may be
conditions and in the manner as may be determined by the Board in accordance
determined by the Board. with the provisions of the applicable laws
and the provisions of ESOS 2017.
2 Date of shareholder’s approval August 04, 2010 July 18, 2017
3 Total number of options approved 50,00,000 50,00,000
under ESOS
4 Vesting requirements Options granted under LVB ESOS 2010 Options granted under LVB ESOS 2017
would vest not less than one year and would vest not less than one year and
not more than three years from the date not more than three years from the date
of grant of such options of grant of such options
5 Exercise price or pricing formula The exercise price shall be the Market The exercise price shall be the Market
price of the equity shares discounted price of the equity shares discounted
by such percentage not exceeding by such percentage not exceeding
50% as determined by the Nomination, 50% as determined by the Nomination,
Remuneration and Compensation Remuneration and Compensation
Committee of the Board. Committee of the Board
118
Sr.
Particulars ESOS 2010 ESOS 2017
No.
6 Maximum term of options granted 5 years from the date of vesting 5 years from the date of vesting
7 Source of shares (primary, secondary Primary Primary
or combination)
8 Variation in terms of options No Variation in terms of options No Variation in terms of options
9 Method used for accounting of ESOS Intrinsic Value method Intrinsic Value method
(Intrinsic or fair value)
10 Weighted average exercise price of the No options granted during the year No options granted during the year
options whose: 2019-20 2019-20
• exercise price equals market price
• exercise price exceeds market price
• exercise price is less than market
price
11 Weighted average fair value of the No options granted during the year No options granted during the year
options whose: 2019-20 2019-20
• exercise price equals market price
• exercise price exceeds market price
• exercise price is less than market
price
A Summary of Status of ESOPs Granted

The position of the existing schemes is summarized as under -
Particulars ESOS 2010

1 Date of Shareholder's Approval 04/08/2010
2 Total Number of Options approved under ESOPs 50,00,000
Options granted under LVB ESOS 2010 would vest not
3 Vesting requirement less than one year and not more than three years from the
date of grant of such options
The exercise price shall be the Market price of the equity
shares discounted by such percentage not exceeding 50%
4 Exercise Price or Pricing Formula
as determined by the Compensation Committee of the
Board
5 Maximum term of Options granted 5 years from date of grant
6 Source of shares Primary
7 Variation in terms of ESOP No Variation in terms of options
8 Method used to account for ESOP Intrinsic Value Method
119
B The stock-based compensation cost calculated as per the intrinsic value method for the financial year 2019-20 is ` 41,29,127. If
the stock-based compensation cost was calculated as per the fair value method, the total cost to be recognised in the financial
statements for the year 2019-20 would be ` 11,92,153. The effect of adopting the fair value method on the net income and earnings
per share is presented below:
C Pro Forma Adjusted Net Income and Earning Per Share
Particulars `
Net Income As Reported (8,360,446,881)
Add: Intrinsic Value Compensation Cost 4,129,127
Less: Fair Value Compensation Cost 1,192,153
Adjusted Pro Forma Net Income (8,357,509,907)
Earning Per Share: Basic
As Reported (25.16)
Adjusted Pro Forma (25.17)
Earning Per Share: Diluted
As Reported (25.16)
Adjusted Pro Forma (25.17)
D Option Movement during the year 2019-20

Sr. Wt. Avg Remaining
Particulars Numbers
No. Exercise price Contratual life
1 Options outstanding at the beginning of the year 1,863,878 55.36 4.53
2 Number of options granted during the year - NA
3 Options Forfeited / Surrendered during the year 949,167 39.26
4 Options Vested during the year 395,396 72.08
5 Options Exercised during the year 10,521 72.00
6 Options Lapsed during the year - NA
7 Total number of shares arising as a result of exercise of options 10,521 NA
8 Money realised by exercise of options 757,512.00 NA
9 Options outstanding at the end of the year 904,190 72.07 3.68
10 Options exercisable at the end of the year 904,190 72.07 3.68
Option Movement during the year 2018-19

Sr. Wt. Avg Remaining
Particulars Numbers
No Exercise price Contratual life
1 Options outstanding at the beginning of the year 2,219,431 57.76 5.47
2 Number of options granted during the year - -
3 Options Forfeited / Surrendered during the year 274,779 69.82
4 Options Vested during the year 831,604 50.68
5 Options Exercised during the year 78,149 72.00
6 Options Lapsed during the year 2,625 72.00
7 Total number of shares arising as a result of exercise of options 78,149 -
8 Money realised by exercise of options 5,626,728.00 -
9 Options outstanding at the end of the year 1,863,878 55.36 4.53
10 Options exercisable at the end of the year 1,433,261 50.34 4.25
The weighted average market price of options exercised during the year 65.60
120
E Weighted average exercise price of options granted during 2019-20 whose
(a) Exercise price equals market price (`) Nil

(b) Exercise price is greater than market price Nil
(c) Exercise price is less than market price Nil
Weighted average fair value of options granted during 2019-20 whose

(a) Exercise price equals market price (`) Nil
(b) Exercise price is greater than market price Nil
(c) Exercise price is less than market price Nil
F Employee-wise details of options granted during the financial year 2019-20 to:
(i) Senior managerial personnel
Name Exercise Price (`) No of Options Granted
No Options Granted during the year
(ii) Employees who were granted, during any one year, options amounting to 5% or more of the options granted during
the year
% to total options granted during the
Name No. of options granted
year
(iii) Identified employees who were granted option, during any one year equal to or exceeding 1% of the issued capital
(excluding outstanding warrants and conversions) of the company at the time of grant.
Name No. of options granted % to total options granted
G Method and Assumptions used to estimate the fair value of options granted during the year:
The fair value has been calculated using the Black Scholes Option Pricing model
The Assumptions used in the model are as follows:
Variables Weighted Avg
1. Risk Free Interest Rate
2. Expected Life
3. Expected Volatility No Options Granted During the year
4. Dividend Yield
5. Price of the underlying share in market at the time of the option grant.(`)
Assumptions:
Stock Price: Closing price on National Stock Exchange on the date of grant has been considered.
Volatility: The historical volatility over the expected life has been considered to calculate the fair value.
Risk-free rate of return: The risk-free interest rate being considered for the calculation is the interest rate applicable for a maturity
equal to the expected life of the options based on the zero-coupon yield curve for Government Securities.
Exercise Price: Exercise Price of each specific grant has been considered.
Time to Maturity: Time to Maturity / Expected Life of options is the period for which the Company expects the options to be live.
Expected divided yield: Expected dividend yield has been calculated as an average of dividend yields for five financial years preceding
the date of the grant.
Rationale and Assumptions

We have reviewed the information made available to us for overall consistency and have not carried out any detailed tests in the
nature of audit to establish the accuracy of such information. Accordingly, we assume no responsibility and make no representations
with respect to the accuracy or completeness of any information provided by and on behalf of the Company.
121
Annexure - H
Form No. MR-3
SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31st March 2020
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To
The Members,
Karur
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices
by M/s. Lakshmi Vilas Bank Limited (hereinafter called the Bank). Secretarial Audit was conducted in a manner that provided me a
reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the bank’s books, papers, minute books, forms and returns filed and other records maintained by the Bank
and also the information provided by the Bank, its officers, agents and authorized representatives during the conduct of secretarial
audit, I hereby report that in my opinion, the Bank has, during the audit period covering the financial year ended on 31st March 2020,
complied with the statutory provisions listed hereunder and also that the Bank has proper Board-processes and compliance-mechanism
in place to the extent, in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Bank for the financial
year ended on 31st March 2020 according to the provisions of:
i. The Companies Act, 2013 (‘the Act’) and the rules made there under;
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under;
iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
iv. Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial Borrowings;
v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’)
as amended from time to time:-
a) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
b) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
c) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
d) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
e) The Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014;
f) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
g) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding
the Companies Act and dealing with client, which does not apply to the bank;
h) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, which is not applicable as there
was no delisting during the year; and
i) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018, which is not applicable to the
company as there was no buyback during the year;
vi. The following laws applicable to the banking companies:

a) Bankers’ Books Evidence Act 1891;
b) Reserve Bank of India Act 1934;
122
c) Banking Regulation Act 1949;

d) Banking Companies Rules 1949;
e) Reserve Bank of India (Amendment and Misc. Provisions) Act 1953;
f) Banking companies (Period of preservation of Records) rules 1985;
g) Securitization and Reconstruction of Financial Assets and Enforcement of security Interest (SARFAESI) Act 2002;
h) Prevention of Money Laundering Act (PMLA) 2002;
i) Prevention of Money Laundering (Maintenance of Records, etc) Rules 2005;
j) Banking Ombudsman Scheme 2006;
I have also examined compliance with the applicable clauses of the Secretarial Standards 1 and 2 issued by The Institute of Company
Secretaries of India. As the bank has not declared dividend during the year, Secretarial Standards 3 is not applicable.
During the period under review the Bank has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.
mentioned above.
I further report that The Board of Directors of the Bank is duly constituted with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under
review were carried out in compliance with the provisions of the Act / SEBI Regulations /RBI directives.
Adequate notice is given to all Directors to schedule the Board/ Committee Meetings, agenda and detailed notes on agenda were sent
adequately in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before
the meeting and for meaningful participation at the meeting. The Minutes of the meetings have recorded the discussions, observations,
directions and resolutions of the Board/Board Committees.
I further report that there are adequate systems and processes in the Bank commensurate with the size and operations of the Bank
to monitor and ensure compliance with other applicable laws, rules, regulations and guidelines.
I further report that during the period under review, the bank had allotted 10,521 equity shares to eligible employees who had exercised
their options under LVB ESOS 2010 scheme. The allotment of shares under LVB ESOS 2010 Scheme are in compliance with the
applicable regulatory requirements.
I further report that during the Audit Period the Bank had raised Rs.188.16 crores through issue and allotment of 1,68,00,000 equity
shares of face value of Rs. 10/- each through Preferential issue for increasing the capital adequacy ratio in line with RBI norms. The
issue and allotment of shares under Preferential issue are in compliance with the applicable regulatory requirements.
I further report that during the period under review, the Bank had submitted an application seeking Reserve Bank of India (RBI) approval
on May 07, 2019 for voluntary amalgamation of Indiabulls Housing Finance Limited and Indiabulls Commercial Credit Limited into and
with the Lakshmi Vilas Bank Limited, however Reserve Bank of India vide letter dated October 09, 2019, informed that the application
for voluntary amalgamation of lndiabulls Housing Finance Limited and lndiabulls Commercial Credit Limited with The Lakshmi Vilas
Bank Limited ("LVB" or "Transferee Company") cannot be approved.
Kaliappagounder Muthusamy
Company Secretary in Practice
Place: Coimbatore M No: F 5865; CP: 3176
Date : 15.06.2020 UDIN:F005865B000342586
123
To
The Members,
Karur.
Our Secretarial Audit Report of even date is to be read along with this letter.
1. Maintenance of secretarial records is the responsibility of the management of the bank. My responsibility is to make a report based
on the secretarial records produced for my audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the
contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial
records. I believe that the processes and practices I followed provide a reasonable basis for our report.
3. Due to the situation arising out of outbreak of COVID-19, the audit of the bank was conducted remotely with records made available
by the bank through electronic means.
4. I have not verified the correctness and appropriateness of financial records and books of accounts of the bank.
5. Compliance with the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of the
management. My examination was limited to the verification of procedures on a test basis.
6. While forming an opinion on compliance and issuing the secretarial audit report, I have also taken into consideration the compliance
related action taken by the bank after 31st March, 2020 but before issue of the report.
7. I have obtained the Management's representation about the compliance of laws, rules and regulations and happening of events,
wherever required.
8. I have considered actions carried out by the bank based on independent legal / professional opinion as being in compliance with
law, wherever there was scope for multiple interpretations.
9. My Secretarial Audit report is neither an assurance as to the future viability of the bank nor of the efficacy or effectiveness with
which the management has conducted the affairs of the bank.
Kaliappagounder Muthusamy
Place: Coimbatore Company Secretary in Practice
Date : 15.06.2020 M No: F 5865; CP: 3176
124
Annexure - I
DIVIDEND DISTRIBUTION POLICY

I. Introduction:
The Lakshmi Vilas Bank Limited (“LVB”) is a listed private sector bank incorporated under the provisions of Companies Act and
operating under the provisions of the Banking Regulation Act, 1949. As on 31st March, 2017, the equity shares of the Bank are
listed and traded in the National Stock Exchange of India Limited (“NSE”) and BSE Limited (“BSE”).
II. Purpose:
Being a Banking entity, the Bank is required to ensure compliance with the provisions of the Banking Regulation Act, 1949,
guidelines and circulars issued by the Reserve Bank of India on declaration and payment of dividend. Besides the same, being
a public limited company listed with NSE and BSE and having ranked within Top 500 of the listed entities in terms of Market
Capitalization as on 31st March 2017, the Bank is also required to ensure compliance with the provisions of Companies Act, 2013
and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015, to the extent
applicable to Banking Companies in terms of a policy with regard to Dividend Distribution.
Accordingly, this policy is framed under Regulation 43 A of the SEBI Listing Regulations, approved and adopted by the Board of
Directors of the Bank.
III. Policy:
The Policy will be called as `Lakshmi Vilas Bank Dividend Distribution Policy’ and shall be effective from the Financial Year
2016-17.
IV. Criteria for recommending Dividend:

The intent of the Bank is to reward the shareholders of the Bank by sharing a portion of the profits, whilst also ensuring that
sufficient funds are retained for growth of the Bank.
The Bank shall declare and pay dividend only in compliance with the provisions of the Banking Regulation Act, regulatory
guidelines/directions issued by the Reserve Bank of India on declaration and payment of dividend by Banks from time to time,
the provisions of the Companies Act and SEBI Listing Regulations to the extent applicable to Banking Companies.
The term Dividend includes both Interim and Final Dividend.
a) Circumstances under which the shareholders may or may not expect dividend:
The recommendation of dividend by the Board is dependent on various factors including eligibility criteria imposed by the
regulators for recommendation & declaration of dividend, capital and reserve position of the Bank and other key financial
parameters. Based on the applicable regulatory framework and financial position, the Board of directors may or may not
decide to recommend dividend.
b) Financial and other parameters:
The Board of directors would consider the following financial parameters along with the statutory restrictions and directions
applicable to Banks before recommending dividend to shareholders:
• Profitability and Key Financial Metrics.
• Any interim dividends paid.
• Auditors' qualifications pertaining to the statement of accounts, if any;
• Bank's capital position and requirements as per Internal Capital Adequacy Assessment Process (ICAAP) projections
and other regulatory norms.
• Any other parameters as may be imposed by the regulators from time to time.
125
c) Internal and External factors:

The Board of Directors of the Bank would take into account both internal and external factors as may be applicable at the
time of considering the proposal on the declaration of the dividend. Some of the major aspects are as under:
• The state of the economy of the country;
• Statutory and regulatory provisions/restrictions;
• Tax regulations including the treatment of deferred tax assets;
• Capital market conditions;
• Expectation of shareholders;
• Business Growth plan of the bank;
• Future Capital requirement;
• Cost of Raising funds;
• Replacement of Capital Assets;
• Ability to make timely coupon payments/redemption towards debt instruments issued by the Bank;
• Such other factors and material events which the Board may consider as relevant.
d) Utilization of Retained Earnings:
The Bank may utilize its retained earnings in the manner beneficial to the interest of the Bank and its stakeholders. The
Bank would utilise the retained earnings for general corporate purposes, including organic growth. The Board may decide
to employ the retained earnings in ensuring maintenance of an optimal level of capital adequacy, meeting the Bank's future
growth/expansion plans, other strategic purposes and/or distribution to shareholders, subject to applicable regulations.
e) Parameters that shall be adopted with regard to various classes of shares:
Since the Bank has only one class of shareholders and does not have any other class of shares (including shares with
differential voting rights), the dividend declared will be distributed among the shareholders, based on their shareholding on
the record date fixed for ascertaining the dividend entitlement.
f) Regulatory Parameters (RBI):
(i) Eligibility criteria for declaring dividends:
 The Bank should be in compliance with Section 15 (relating to restrictions as to payment of Dividend) and
Section 17 (relating to creation of reserve fund) of the Banking Regulation Act, 1949 including prevailing regulations /
guidelines issued by RBI in this regard.
 CRAR of at least 9% for preceding two completed years and the accounting year for which it proposes to declare
dividend.
 Net NPA level of less than 7%.
 In case the Bank does not meet the above CRAR norm, but it is having CRAR of at least 9% for the accounting
year for which it proposes to declare dividend, it may still declare the dividend provided the Bank’s Net NPA ratio
is less than 5%.
 The proposed dividend should be paid out of the current year’s profit only.
The Bank may not declare dividend for a particular year in case it does not meet any of the above eligibility criteria.
(ii) On satisfying the eligibility criteria as specified above, the Bank shall pay dividends subject to following conditions:
 The dividend payout ratio shall not exceed 40% and shall be as per the matrix furnished below contained in the
RBI circular no. RBI/2004- 05/451 DBOD. No. BP. BC. 88 / 21 .02067/2004-05 dt. 04.05.2005; dividend payout
ratio shall be computed as a percentage of dividend payable in a year (excluding dividend tax) to the net profit
during the year,
126
Matrix of Criteria for maximum permissible range of

Dividend Payout Ratio
Net NPA Ratio

More than
From 3% to From 5% to
Category CRAR Zero zero but less
less than 5% less than 7%
than 3%
Range of Dividend Payout Ratio
A 11% or more for each of the last 3 years Up to 40 Up to 35 Up to 25 Up to 15
B 10% or more for each of the last 3 years Up to 35 Up to 30 Up to 20 Up to 10
C 9% or more for each of the last 3 years Up to 30 Up to 25 Up to 15 Up to 5
D 9% or more in the Current year Up to 10 Up to 5 Nil
 In case the profits for the relevant period includes any extraordinary profits/ income, the payout ratio shall be
computed after excluding such extraordinary items for reckoning compliance with prudential payout ratio;
 The financial statements pertaining to the financial year, for which the bank is declaring dividend, should be free of
any qualifications by the statutory auditors, which have an adverse bearing on the profits during the year. In case
of any qualification to that effect, the net profit should be suitably adjusted while computing the dividend payout
ratio.
V. Quantum of Dividend payable:

The Quantum of dividend payable would be subject to the Bank fulfilling the eligibility criteria set out by the relevant Acts and the
Reserve Bank of India and the same shall be decided by the Board of Directors from time to time.
VI. Amendments and Review:

This policy will be reviewed annually by the Board of Directors of the Bank and this Policy will be in force till the time it is not
amended or revoked by the Board.
VII. Disclosure:
The policy will be made available in the Bank’s website – www.lvbank.com and will also be disclosed in the Annual Report as
required under the SEBI Listing Regulations.
127
Annexure - J
Form No. MGT-9
EXTRACT OF ANNUAL RETURN

as on the financial year ended on 31/03/2020
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:

(i) CIN : L65110TN1926PLC001377
(ii) Registration Date : 03/11/1926
(iii) Name of the Company : LAKSHMI VILAS BANK LIMITED
(iv) Category / Sub-Category of the Company : COMPANY LIMITED BY SHARES /

INDIAN NON-GOVERNMENT COMPANY
(v) Address of the Registered office and : SALEM ROAD, KATHAPARAI,

contact details KARUR – 639006
TAMIL NADU
Tel: 04324 - 258501
Email: secretarial@lvbank.in
Website: www.lvbank.com
(vi) Whether listed company : YES (The National Stock Exchange of India Ltd & BSE Ltd)
(vii) Name, Address and Contact details of : INTEGRATED REGISTRY MANAGEMENT SERVICES PRIVATE LIMITED
Registrar and Transfer Agent, if any II Floor, ‘Kences Towers’
North Usman Road, T.Nagar
Chennai – 600 017
Tel: +91 44 28140801/2/3
Fax: +91 44 28142479
Website: www.intergratedindia.in
Email: lvb@integratedindia.in
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

All the business activities contributing 10% or more of the total turnover of the company shall be stated:-
Sl. Name and Description of NIC Code of the % to total turnover of the
No. main products / services Product / service company
1 BANKING 64191 100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:
Sl. Name and Address of the CIN/ Holding / Subsidiary / % of shares Applicable
No Company GLN Associate held Section
Not Applicable
128
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
(i) Category-wise Share Holding:
NO. OF SHARES HELD AT THE BEGINNING NO. OF SHARES HELD AT THE END
OF THE YEAR OF THE YEAR % CHANGE
CAT
% OF % OF DURING
CODE CATEGORY OF SHAREHOLDERS
DEMAT PHYSICAL TOTAL TOTAL DEMAT PHYSICAL TOTAL TOTAL THE YEAR
SHARES SHARES
SHAREHOLDING OF PROMOTER
A
AND PROMOTER GROUP
(1) Indian
a Individual / Hindu Undivided Family 7353121 0 7353121 2.30 7539956 0 7539956 2.24 -0.06
b Central Government 0 0 0 0 0 0 0 0 0
c State Government 0 0 0 0 0 0 0 0 0
d Bodies Corporate 15385011 0 15385011 4.81 15370016 0 15370016 4.56 -0.25
e Financial Institutions / Banks 0 0 0 0 0 0 0 0 0
f Any other (specify) 0 0 0 0 0 0 0 0 0
SUB TOTAL A(1) 22738132 0 22738132 7.11 22909972 0 22909972 6.80 -0.31
(2) Foreign
a Individual (Non resident / foreign) 0 0 0 0 0 0 0 0 0
b Bodies corporate 0 0 0 0 0 0 0 0 0
c Institutions 0 0 0 0 0 0 0 0 0
d Qualified Foreign Investor 0 0 0 0 0 0 0 0 0
e Any other (specify) 0 0 0 0 0 0 0 0 0
SUB TOTAL A(2) 0 0 0 0 0 0 0 0 0
Total Shareholding of promoter and
22738132 0 22738132 7.11 22909972 0 22909972 6.80 -0.31
Promoter Group(A)=A(1)+A(2)
B Public Shareholding
(1) Institutions
a Mutual funds / UTI 142 0 142 0.00 28011 0 28011 0.01 0.01
b Financial Institutions / Banks 9209732 0 9209732 2.88 6894956 0 6894956 2.05 -0.83
c Central Government 518894 0 518894 0.16 580170 0 580170 0.17 0.01
d State Government(s) 0 0 0 0 0 0 0 0 0
e Venture Capital Funds 0 0 0 0 0 0 0 0 0
f Insurance Companies 591904 0 591904 0.19 16102221 0 16102221 4.78 4.59
g Foreign Institutional Investors 0 10200 10200 0.00 0 10200 10200 0.00 0.00
h Foreign Venture Capital Investors 0 0 0 0 0 0 0 0 0
i Qualified Foreign Investor 0 0 0 0 0 0 0 0 0
Any other (Foreign Portfolio Investor
j 53593180 0 53593180 16.75 37401962 0 37401962 11.11 -5.64
- Corporate)
SUB TOTAL B(1) 63913852 10200 63924052 19.98 61007320 10200 61017520 18.12 -1.86
(2) Non-Institutions
a Bodies Corporate (Indian / foreign /
105681430 7451 105688881 33.04 102656079 5159 102661238 30.49 -2.55
Overseas)
b Individuals (Resident / NRI / Foreign
National)
(i) Individual shareholders holding
50544484 6598747 57143231 17.86 57203005 5955496 63158501 18.76 0.90
Nominal share Capital upto ` 1 Lakh
(ii) Individual shareholders holding
57542098 638198 58180296 18.19 83173674 455913 83629587 24.84 6.65
Nominal share Capital above ` 1 Lakh
c Any other (Clearing Member, Corporate
Body – Limited Liability Partnership,
Corporate CM/TM - Client Margin A/c,
Corporate CM/TM-Collateral Account, 12228638 0 12228638 3.82 3336933 0 3336933 0.99 -2.83
Corporate CM/TM-Proprietary Account,
Limited Liability Partnership, LLP-PMS,
Trust-PMS, Trusts)
SUB TOTAL B(2) 225996650 7244396 233241046 72.91 246369691 6416568 252786259 75.07 2.16
Total Public Share Holding
289910502 7254596 297165098 92.89 307377011 6426768 313803779 93.20 0.31
(B)=B(1)+B(2)
TOTAL (A)+(B) 312648634 7254596 319903230 100.00 330286983 6426768 336713751 100.00 0.00
C Shares held by Custodians and
against which Depository Receipts 0 0 0 0 0 0 0 0 0
have been issued
GRAND TOTAL (A)+(B)+(C) 312648634 7254596 319903230 100.00 330286983 6426768 336713751 100.00 0.00
129
(ii) Shareholding of promoters:

Shareholding at the beginning Shareholding at the end
of the year of the year
% change in
Sl. % of shares % of shares shareholding
NAME % of total % of total
No. Pledged / Pledged / during the
No. of shares No. of shares
encumbered encumbered year
shares of the shares of the
to total to total
company company
shares shares
1 K R Pradeep 6420378 2.01 0.00 6730378 2.00 0.00 -0.01
2 Anuradha Pradeep 8288 0.00 0.00 8288 0.00 0.00 0.00
3 Kare Electronics and Development Private
1679425 0.53 0.00 1679425 0.50 0.00 -0.03
Limited
4 Pranava Electronics P Ltd 4549952 1.42 0.00 4549952 1.35 0.00 -0.07
5 S G Prabhakharan 5338 0.00 0.00 Transmission 0.00
6 Usha R Prabakaran 153674 0.05 0.00 159012 0.05 0.00 0.00
7 G P Prajnesh 18933 0.01 0.00 53643 0.02 0.00 0.01
8 G Sudhakara Gupta 2666 0.00 0.00 2666 0.00 0.00 0.00
9 Ariston Capital Asset Holdings Private
2463411 0.77 0.64 2548416 0.76 0.72 -0.01
Limited
10 Tangerine Capital Asset Holdings LLP 2694881 0.84 0.84 2594881 0.77 0.77 -0.07
11 XS Real Properties Private Limited 18677 0.01 0.00 18677 0.01 0.00 0.00
12 M P Shyam 180829 0.06 0.00 182186 0.05 0.00 0.00
13 M S Sharmila 159826 0.05 0.05 159826 0.05 0.00 0.00
14 M K Panduranga Setty 2761 0.00 0.00 2761 0.00 0.00 0.00
15 P Vasantha 21619 0.01 0.00 18905 0.01 0.00 0.00
16 M S Nivedita 13333 0.00 0.00 13333 0.00 0.00 0.00
17 Advaith Motors Pvt Ltd 2630020 0.82 0.62 2630020 0.78 0.59 -0.04
18 Cauvery Motors Pvt Ltd 1348645 0.42 0.31 1348645 0.40 0.30 -0.02
19 N Malayalaramamirtham 79634 0.03 0.00 24634 0.01 0.00 -0.02
20 M Geetha 17522 0.01 0.00 2522 0.00 0.00 -0.01
21 M Balasubramanian 8707 0.00 0.00 8707 0.00 0.00 0.00
22 N Susila 11965 0.00 0.00 11965 0.00 0.00 0.00
23 N Saiprasad 134865 0.04 0.00 63865 0.02 0.00 -0.02
24 N Sivakumar 76777 0.02 0.00 76777 0.02 0.00 0.00
25 M Shalini 8633 0.00 0.00 8633 0.00 0.00 0.00
26 V N Jayaprakash 26620 0.01 0.00 11855 0.00 0.00 0.00
27 N Dwarakanathan 753 0.00 0.00 0 0.00 NA 0.00
28 Sasikaladhevi M R 0 0.00 NA 0 0.00 NA 0.00
29 Shri Gayathiri & Co 0 0.00 NA 0 0.00 NA 0.00
30 Anirudh P Kare 0 0.00 NA 0 0.00 NA 0.00
31 Parinita P Kare 0 0.00 NA 0 0.00 NA 0.00
32 K R Nagesh 0 0.00 NA 0 0.00 NA 0.00
33 K R Satish 0 0.00 NA 0 0.00 NA 0.00
34 G. Chandralakshmi 0 0.00 NA 0 0.00 NA 0.00
35 M P Vikram Setty 0 0.00 NA 0 0.00 NA 0.00
36 Sheela Rani Chunkath (New inclusion
NA NA NA 0 0.00 NA 0.00
w.e.f 02.01.2020)
37 Kare Power Resources Private Limited 0 0.00 NA 0 0.00 NA 0.00
38 Kare Investments Private Limited 0 0.00 NA 0 0.00 NA 0.00
39 Brindavan Hydropower Pvt Ltd 0 0.00 NA 0 0.00 NA 0.00
40 Innovaneer Realtors Pvt. Ltd.
0 0.00 NA 0 0.00 NA 0.00
(formerly Greenbanyan Power Pvt Ltd.)
41 MPrime Premises Pvt Ltd 0 0.00 NA 0 0.00 NA 0.00
42 ILMS Projects Pvt Ltd 0 0.00 NA 0 0.00 NA 0.00
43 ILMS Builders Pvt Ltd 0 0.00 NA 0 0.00 NA 0.00
44 Milestone Plot Developers Pvt Ltd 0 0.00 NA 0 0.00 NA 0.00
45 Pranava DMCC 0 0.00 NA 0 0.00 NA 0.00
130
Shareholding at the beginning Shareholding at the end

of the year of the year
% change in
Sl. % of shares % of shares shareholding
NAME % of total % of total
No. Pledged / Pledged / during the
No. of shares No. of shares
encumbered encumbered year
shares of the shares of the
to total to total
company company
shares shares
46 Pranava City Complex Pvt Ltd 0 0.00 NA 0 0.00 NA 0.00
47 Holzwerk Interior Private Limited 0 0.00 NA 0 0.00 NA 0.00
48 Alpine Holdings LLP 0 0.00 NA 0 0.00 NA 0.00
49 Chrysalis Play School Private Limited
0 0.00 NA 0 0.00 NA 0.00
(formerly Chrysalis Play-School LLP)
50 Scotwood Estate LLP 0 0.00 NA 0 0.00 NA 0.00
51 Tangerine Stock Estate LLP 0 0.00 NA 0 0.00 NA 0.00
52 XS Real Properties Service LLP 0 0.00 NA 0 0.00 NA 0.00
53 Acestar Properties Private Limited 0 0.00 NA 0 0.00 NA 0.00
54 Helios Estate Private Limited 0 0.00 NA 0 0.00 NA 0.00
55 Amaryllis Properties Private Limited 0 0.00 NA 0 0.00 NA 0.00
56 Magenta Ceramik Systems Private Limited 0 0.00 NA 0 0.00 NA 0.00
57 Enveedu Properties LLP 0 0.00 NA 0 0.00 NA 0.00
58 Magenta Re Asset Private Limited 0 0.00 NA 0 0.00 NA 0.00
59 Pallava Estate LLP 0 0.00 NA 0 0.00 NA 0.00
60 Holzwerk Jardins Interior LLP 0 0.00 NA 0 0.00 NA 0.00
61 Jacaranda Properties Pvt Ltd 0 0.00 NA 0 0.00 NA 0.00
62 Allbless Tracon Private Limited 0 0.00 NA 0 0.00 NA 0.00
63 Dotmark Vinimay Private Limited 0 0.00 NA 0 0.00 NA 0.00
64 Alllike Marketing Private Limited 0 0.00 NA 0 0.00 NA 0.00
65 Akshara Motors Private Limited 0 0.00 NA 0 0.00 NA 0.00
66 Ananya Software Private Limited 0 0.00 NA 0 0.00 NA 0.00
67 Advaith Spares & Accessories Private Limited 0 0.00 NA 0 0.00 NA 0.00
68 Advaith Automation Private Limited 0 0.00 NA 0 0.00 NA 0.00
69 Mysore Snack Foods Limited 0 0.00 NA 0 0.00 NA 0.00
70 Mysore Vegetable Oil Products Limited 0 0.00 NA 0 0.00 NA 0.00
71 Advaith Marketing Private Limited 0 0.00 NA 0 0.00 NA 0.00
72 Lathangi Motors Private Limited 0 0.00 NA 0 0.00 NA 0.00
73 Lathangi Automobiles Private Limited 0 0.00 NA 0 0.00 NA 0.00
74 Wilworth Earth Movers Private Limited 0 0.00 NA 0 0.00 NA 0.00
75 Lathangi Cycle And Carriage Private Limited 0 0.00 NA 0 0.00 NA 0.00
76 Wilway Engineering And Constructions
0 0.00 NA 0 0.00 NA 0.00
Private Limited
77 Lathangi Equipments Private Limited 0 0.00 NA 0 0.00 NA 0.00
78 Yashaswini Motors Private Limited 0 0.00 NA 0 0.00 NA 0.00
79 Krishna Industries Private Limited 0 0.00 NA 0 0.00 NA 0.00
80 Venkateshwara Exports 0 0.00 NA 0 0.00 NA 0.00
81 K.V.N Finance 0 0.00 NA 0 0.00 NA 0.00
82 Shri Gayathiri Credit Co 0 0.00 NA 0 0.00 NA 0.00
83 Shri Gayathiri Financiers 0 0.00 NA 0 0.00 NA 0.00
84 Shri Gayathiri Chits 0 0.00 NA 0 0.00 NA 0.00
85 K.N.Viswanatha Chettiyar & Co 0 0.00 NA 0 0.00 NA 0.00
86 Susila Leasings 0 0.00 NA 0 0.00 NA 0.00
87 Gayathiri Finance Corporations 0 0.00 NA 0 0.00 NA 0.00
88 Shri Gayathiri Finance & Investments 0 0.00 NA 0 0.00 NA 0.00
89 Dhanesh Chits 0 0.00 NA 0 0.00 NA 0.00
90 Gayathiri Associates 0 0.00 NA 0 0.00 NA 0.00
91 Gayathiri Leasings 0 0.00 NA 0 0.00 NA 0.00
92 Gayathiri Credits 0 0.00 NA 0 0.00 NA 0.00
TOTAL 22738132 7.11 2.46 22909972 6.80 2.37 -0.31
131
(iii) Change in Promoters’ Shareholding (please specify, if there is no change):

Shareholding at the Cumulative Shareholding
Increase / Decrease
beginning of the year during the year
Sl.
NAME % of total % of total % of total
No. No. of No. of No. of
shares of the shares of the shares of the
Shares shares Shares
Company Company Company
K R Pradeep
1
Opening Balance as on 01/04/2019 6420378 2.01
09/08/2019 Market Purchase 200000 0.06 6620378 1.97
19/08/2019 Market Purchase 110000 0.03 6730378 2.00
Closing Balance as on 31/03/2020 6730378 2.00
2 Anuradha Pradeep
Opening Balance as on 01/04/2019 8288 0.00 No Change
3 Kare Electronics and Development Private Limited
4 Pranava Electronics P Ltd
S G Prabhakharan
5
Transmission of shares to
02/01/2020 -5338 0.00 0 0
Mrs.Usha R Prabakaran (spouse)
Closing Balance as on 31/03/2020 0 0
6 Usha R Prabakaran
Transmission of shares from
02/01/2020 5338 0.00 159012 0.05
Mr. S.G.Prabhakharan (spouse)
Closing Balance as on 31/03/2020 159012 0.05 0.05
7 G P Prajnesh
18/03/2020 Market Purchase 34710 0.01 53643 0.02
8 G Sudhakara Gupta
9 Ariston Capital Asset Holdings Private Limited
18/03/2020 Market Purchase 40000 0.01 2503411 0.74
19/03/2020 Market Purchase 21505 0.01 2524916 0.75
23/03/2020 Market Purchase 23500 0.01 2548416 0.76
Tangerine Capital Asset Holdings LLP

10
19/08/2019 Market Sale -100000 -0.03 2594881 0.77
132

Increase / Decrease
Sl.
11 XS Real Properties Private Limited
12 M P Shyam
01/04/2019 Market Purchase 1357 0.00 182186 0.06
13 M S Sharmila
14 M K Panduranga Setty
15 P Vasantha
01/04/2019 Market Sale -2714 0.00 18905 0.01
16 M S Nivedita
17 Advaith Motors Pvt Ltd
18 Cauvery Motors Pvt Ltd
19 N Malayalaramamirtham
14/11/2019 Off-Market Sale -40000 -0.01 39634 0.01
23/03/2020 Off-Market Sale -15000 0.00 24634 0.01
20 M Geetha
13/11/2019 Market Sale -15000 0.00 2522 0.00
21 M Balasubramanian
22 N Susila
133

Increase / Decrease
Sl.
23 N Saiprasad
14/11/2019 Off-Market Sale -50000 -0.01 84865 0.03
17/03/2020 Market Sale -10000 0.00 74865 0.02
19/03/2020 Market Sale -10000 0.00 64865 0.02
24/03/2020 Market Sale -1000 0.00 63865 0.02
24 N Sivakumar
25 M Shalini
26 V N Jayaprakash
14/11/2019 Market Sale -5000 0.00 21620 0.01
18/03/2020 Market Sale -12000 0.00 9620 0.00
19/03/2020 Transmission of shares from spouse 2235 0.00 11855 0.00
27 N Dwarakanathan
19/11/2019 Market Sale -753 0.00 0 0.00
28 Sasikaladhevi M R 0 0 No Change 0 0
29 Shri Gayathiri & Co 0 0 No Change 0 0
30 Anirudh P Kare 0 0 No Change 0 0
31 Parinita P Kare 0 0 No Change 0 0
32 K R Nagesh 0 0 No Change 0 0
33 K R Satish 0 0 No Change 0 0
34 G. Chandralakshmi 0 0 No Change 0 0
35 M. P. Vikram Setty 0 0 No Change 0 0
36 Sheela Rani Chunkath NA NA No Change 0 0
37 Kare Power Resources Private Limited 0 0 No Change 0 0
38 Kare Investments Private Limited 0 0 No Change 0 0
39 Brindavan Hydropower Pvt Ltd 0 0 No Change 0 0
40 Innovaneer Realtors Pvt. Ltd. (formerly Greenbanyan Power
0 0 No Change 0 0
Pvt Ltd.)
41 Mprime Premises Pvt Ltd 0 0 No Change 0 0
42 ILMS Projects Pvt Ltd 0 0 No Change 0 0
43 ILMS Builders Pvt Ltd 0 0 No Change 0 0
44 Milestone Plot Developers Pvt Ltd 0 0 No Change 0 0
45 Pranava DMCC 0 0 No Change 0 0
46 Pranava City Complex Pvt Ltd 0 0 No Change 0 0
47 Holzwerk Interior Private Limited 0 0 No Change 0 0
134

Increase / Decrease
Sl.
48 Alpine Holdings LLP 0 0 No Change 0 0
49 Chrysalis Play School Private Limited (formerly Chrysalis
0 0 No Change 0 0
Play-School LLP)
50 Scotwood Estate LLP 0 0 No Change 0 0
51 Tangerine Stock Estate LLP 0 0 No Change 0 0
52 XS Real Properties Service LLP 0 0 No Change 0 0
53 Acestar Properties Private Limited 0 0 No Change 0 0
54 Helios Estate Private Limited 0 0 No Change 0 0
55 Amaryllis Properties Private Limited 0 0 No Change 0 0
56 Magenta Ceramik Systems Private Limited 0 0 No Change 0 0
57 Enveedu Properties LLP 0 0 No Change 0 0
58 Magenta Re Asset Private Limited 0 0 No Change 0 0
59 Pallava Estate LLP 0 0 No Change 0 0
60 Holzwerk Jardins Interior LLP 0 0 No Change 0 0
61 Jacaranda Properties Pvt Ltd 0 0 No Change 0 0
62 Allbless Tracon Private Limited 0 0 No Change 0 0
63 Dotmark Vinimay Private Limited 0 0 No Change 0 0
64 Alllike Marketing Private Limited 0 0 No Change 0 0
65 Akshara Motors Private Limited 0 0 No Change 0 0
66 Ananya Software Private Limited 0 0 No Change 0 0
67 Advaith Spares & Accessories Private Limited 0 0 No Change 0 0
68 Advaith Automation Private Limited 0 0 No Change 0 0
69 Mysore Snack Foods Limited 0 0 No Change 0 0
70 Mysore Vegetable Oil Products Limited 0 0 No Change 0 0
71 Advaith Marketing Private Limited 0 0 No Change 0 0
72 Lathangi Motors Private Limited 0 0 No Change 0 0
73 Lathangi Automobiles Private Limited 0 0 No Change 0 0
74 Wilworth Earth Movers Private Limited 0 0 No Change 0 0
75 Lathangi Cycle And Carriage Private Limited 0 0 No Change 0 0
76 Wilway Engineering And Constructions Private Limited 0 0 No Change 0 0
77 Lathangi Equipments Private Limited 0 0 No Change 0 0
78 Yashaswini Motors Private Limited 0 0 No Change 0 0
79 Krishna Industries Private Limited 0 0 No Change 0 0
80 Venkateshwara Exports 0 0 No Change 0 0
81 K.V.N Finance 0 0 No Change 0 0
82 Shri Gayathiri Credit Co 0 0 No Change 0 0
83 Shri Gayathiri Financiers 0 0 No Change 0 0
84 Shri Gayathiri Chits 0 0 No Change 0 0
85 K.N.Viswanatha Chettiyar & Co 0 0 No Change 0 0
86 Susila Leasings 0 0 No Change 0 0
87 Gayathiri Finance Corporations 0 0 No Change 0 0
88 Shri Gayathiri Finance & Investments 0 0 No Change 0 0
89 Dhanesh Chits 0 0 No Change 0 0
90 Gayathiri Associates 0 0 No Change 0 0
91 Gayathiri Leasings 0 0 No Change 0 0
92 Gayathiri Credits 0 0 No Change 0 0
135
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
Increase / Decrease
Sl.
Shares of the Shares of the Shares of the
Shares Shares Shares
1 Indiabulls Housing Finance Limited
Preferential Issue allotment dated
26/07/2019 16800000 4.99 16800000 4.99
04.07.2019
2 India Opportunities Growth Fund Ltd - Pinewood Strategy
10/05/2019 Market Purchase 5580000 1.74 12580000 3.93
09/08/2019 Market Purchase 900000 0.27 13480000 4.00
01/11/2019 Market Purchase 1000000 0.30 14480000 4.30
15/11/2019 Market Sale -1000000 -0.30 13480000 4.00
3 Srei Infrastructure Finance Limited
23/08/2019 Market Purchase 1000000 0.30 2510294 0.75
30/08/2019 Market Purchase 500000 0.15 3010294 0.89
27/09/2019 Market Purchase 750000 0.22 3760294 1.12
20/12/2019 Market Purchase 1500000 0.45 5260294 1.56
27/12/2019 Market Purchase 1200000 0.36 6460294 1.92
17/01/2020 Market Purchase 910000 0.27 7370294 2.19
20/03/2020 Market Purchase 3875000 1.15 11245294 3.34
4 JM Financial Services Ltd.
05/04/2019 Market Sale -47552 -0.01 963778 0.30
12/04/2019 Market Sale -307771 -0.10 656007 0.21
19/04/2019 Market Sale -208562 -0.07 447445 0.14
26/04/2019 Market Purchase 346769 0.11 794214 0.25
03/05/2019 Market Purchase 107164 0.03 901378 0.28
10/05/2019 Market Sale -263116 -0.08 638262 0.20
17/05/2019 Market Sale -92067 -0.03 546195 0.17
24/05/2019 Market Purchase 67945 0.02 614140 0.19
31/05/2019 Market Sale -420736 -0.13 193404 0.06
07/06/2019 Market Sale -56310 -0.02 137094 0.04
14/06/2019 Market Purchase 103195 0.03 240289 0.08
21/06/2019 Market Purchase 25760 0.01 266049 0.08
28/06/2019 Market Sale -29606 -0.01 236443 0.07
29/06/2019 Market Sale -571 0.00 235872 0.07
04/07/2019 Market Sale -19679 -0.01 216193 0.06
05/07/2019 Market Purchase 705076 0.21 921269 0.27
12/07/2019 Market Sale -778120 -0.23 143149 0.04
136

Increase / Decrease
Sl.
19/07/2019 Market Purchase 5896 0.00 149045 0.04
26/07/2019 Market Sale -541 0.00 148504 0.04
02/08/2019 Market Purchase 2172 0.00 150676 0.04
09/08/2019 Market Purchase 24404 0.01 175080 0.05
16/08/2019 Market Sale -7899 0.00 167181 0.05
23/08/2019 Market Sale -25521 -0.01 141660 0.04
30/08/2019 Market Sale -121335 -0.04 20325 0.01
06/09/2019 Market Purchase 1291 0.00 21616 0.01
13/09/2019 Market Sale -9691 0.00 11925 0.00
20/09/2019 Market Purchase 20298 0.01 32223 0.01
27/09/2019 Market Purchase 399073 0.12 431296 0.13
30/09/2019 Market Sale -1340 0.00 429956 0.13
04/10/2019 Market Purchase 1783014 0.53 2212970 0.66
11/10/2019 Market Purchase 394462 0.12 2607432 0.77
18/10/2019 Market Purchase 2115 0.00 2609547 0.78
25/10/2019 Market Sale -27579 -0.01 2581968 0.77
01/11/2019 Market Purchase 119601 0.04 2701569 0.80
08/11/2019 Market Sale -119197 -0.04 2582372 0.77
15/11/2019 Market Purchase 1471619 0.44 4053991 1.20
22/11/2019 Market Sale -262315 -0.08 3791676 1.13
29/11/2019 Market Sale -689238 -0.20 3102438 0.92
06/12/2019 Market Sale -174176 -0.05 2928262 0.87
13/12/2019 Market Purchase 1528 0.00 2929790 0.87
20/12/2019 Market Sale -24116 -0.01 2905674 0.86
27/12/2019 Market Purchase 4515 0.00 2910189 0.86
31/12/2019 Market Purchase 7725 0.00 2917914 0.87
03/01/2020 Market Sale -14490 0.00 2903424 0.86
10/01/2020 Market Sale -101552 -0.03 2801872 0.83
17/01/2020 Market Sale -31663 -0.01 2770209 0.82
24/01/2020 Market Purchase 152 0.00 2770361 0.82
31/01/2020 Market Purchase 36459 0.01 2806820 0.83
07/02/2020 Market Purchase 4300 0.00 2811120 0.83
14/02/2020 Market Purchase 7410 0.00 2818530 0.84
21/02/2020 Market Sale -10990 0.00 2807540 0.83
28/02/2020 Market Purchase 6535395 1.94 9342935 2.77
06/03/2020 Market Purchase 478 0.00 9343413 2.77
13/03/2020 Market Purchase 90803 0.03 9434216 2.80
20/03/2020 Market Sale -91648 -0.03 9342568 2.77
27/03/2020 Market Purchase 48942 0.01 9391510 2.79
31/03/2020 Market Sale -39700 -0.01 9351810 2.78
137

Increase / Decrease
Sl.
5 DHFL Pramerica Life Insurance Co. Ltd
6 Capri Global Holdings Private Limited
14/06/2019 Market Sale -134496 -0.04 5445504 1.70
05/07/2019 Market Sale -601000 -0.18 4844504 1.44
12/07/2019 Market Sale -40610 -0.01 4803894 1.43
30/08/2019 Market Purchase 1507696 0.45 6311590 1.87
01/11/2019 Market Purchase 2500410 0.74 8812000 2.62
7 Aviator Emerging Market Fund
13/09/2019 Market Purchase 8378378 2.49 8378378 2.49
8 Capri Global Advisory Services Pvt Ltd
25/10/2019 Market Purchase 1500000 0.45 1500000 0.45
01/11/2019 Market Purchase 5000000 1.48 6500000 1.93
22/11/2019 Market Purchase 220000 0.07 6720000 2.00
9 M N DASTUR and Company Private Limited
05/04/2019 Market Sale -750000 -0.23 7260482 2.27
12/04/2019 Market Sale -350000 -0.11 6910482 2.16
07/06/2019 Market Sale -50000 -0.02 6860482 2.15
14/06/2019 Market Sale -180000 -0.06 6680482 2.09
28/06/2019 Market Sale -35000 -0.01 6645482 2.08
04/07/2019 Market Sale -15000 0.00 6630482 1.97
05/07/2019 Market Sale -151118 -0.04 6479364 1.92
12/07/2019 Market Sale -98882 -0.03 6380482 1.89
10. Aditya Birla Sun Life Insurance Company Limited
05/04/2019 Market Purchase 169515 0.05 6154439 1.92
11 Belgrave Investment Fund
12/07/2019 Market Sale -1410000 -0.42 12633100 3.75
23/08/2019 Market Sale -1000000 -0.30 11633100 3.45
30/08/2019 Market Sale -1000000 -0.30 10633100 3.16
138

Increase / Decrease
Sl.
20/09/2019 Market Sale -1500000 -0.45 9133100 2.71
27/09/2019 Market Sale -1000000 -0.30 8133100 2.42
20/12/2019 Market Sale -2700000 -0.80 5433100 1.61
12 Max Life Insurance Co Ltd A/C Participating Fund
25/10/2019 Market Sale -1014879 -0.30 10617568 3.15
01/11/2019 Market Sale -10617568 -3.15 0 0.00
13 Aviator Global Investment Fund
06/09/2019 Market Sale -8378378 -2.49 0 0.00
14 Nomura Singapore Limited
12/04/2019 Market Purchase 185692 0.06 8119231 2.54
19/04/2019 Market Purchase 75000 0.02 8194231 2.56
03/05/2019 Market Sale -5580000 -1.74 2614231 0.82
10/05/2019 Market Sale -260692 -0.08 2353539 0.74
15 Karvy Stock Broking Ltd
05/04/2019 Market Purchase 391925 0.12 8004019 2.50
12/04/2019 Market Purchase 114440 0.04 8118459 2.54
19/04/2019 Market Purchase 158657 0.05 8277116 2.59
26/04/2019 Market Purchase 219814 0.07 8496930 2.66
03/05/2019 Market Purchase 9262 0.00 8506192 2.66
10/05/2019 Market Purchase 123055 0.04 8629247 2.70
17/05/2019 Market Purchase 4158 0.00 8633405 2.70
24/05/2019 Market Purchase 490553 0.15 9123958 2.85
31/05/2019 Market Purchase 2659 0.00 9126617 2.85
07/06/2019 Market Sale -4006 0.00 9122611 2.85
14/06/2019 Market Purchase 144515 0.05 9267126 2.90
21/06/2019 Market Sale -69076 -0.02 9198050 2.88
28/06/2019 Market Sale -14468 -0.00 9183582 2.87
29/06/2019 Market Purchase 37 0.00 9183619 2.87
04/07/2019 Market Sale -9898 0.00 9173721 2.72
05/07/2019 Market Sale -19626 -0.01 9154095 2.72
12/07/2019 Market Purchase 43185 0.01 9197280 2.73
19/07/2019 Market Sale -1015342 -0.30 8181938 2.43
26/07/2019 Market Sale -10677 0.00 8171261 2.43
139

Increase / Decrease
Sl.
02/08/2019 Market Purchase 27177 0.01 8198438 2.43
09/08/2019 Market Purchase 1386 0.00 8199824 2.44
16/08/2019 Market Sale -7157 0.00 8192667 2.43
23/08/2019 Market Purchase 13143 0.00 8205810 2.44
30/08/2019 Market Sale -97226 -0.03 8108584 2.41
06/09/2019 Market Purchase 6127 0.00 8114711 2.41
13/09/2019 Market Purchase 12963 0.00 8127674 2.41
20/09/2019 Market Purchase 73301 0.02 8200975 2.44
27/09/2019 Market Sale -19349 -0.01 8181626 2.43
30/09/2019 Market Purchase 6270 0.00 8187896 2.43
04/10/2019 Market Sale -2668 0.00 8185228 2.43
11/10/2019 Market Sale -3452 0.00 8181776 2.43
18/10/2019 Market Purchase 17879 0.01 8199655 2.44
25/10/2019 Market Sale -18015 -0.01 8181640 2.43
01/11/2019 Market Purchase 122151 0.04 8303791 2.47
08/11/2019 Market Sale -59905 -0.02 8243886 2.45
15/11/2019 Market Sale -2850631 -0.85 5393255 1.60
22/11/2019 Market Sale -4682713 -1.39 710542 0.21
29/11/2019 Market Sale -110636 -0.03 599906 0.18
06/12/2019 Market Sale -368267 -0.11 231639 0.07
13/12/2019 Market Sale -4987 0.00 226652 0.07
27/12/2019 Market Sale -2371 0.00 224281 0.07
31/12/2019 Market Sale -2205 0.00 222076 0.07
03/01/2020 Market Sale -2226 0.00 219850 0.07
10/01/2020 Market Sale -103688 -0.03 116162 0.03
17/01/2020 Market Sale -504 0.00 115658 0.03
24/01/2020 Market Sale -9150 0.00 106508 0.03
14/02/2020 Market Sale -6048 0.00 100460 0.03
21/02/2020 Market Sale -1160 0.00 99300 0.03
16 Eriska Investment Fund Ltd
02/08/2019 Market Sale -4000000 -1.19 2500000 0.74
09/08/2019 Market Sale -2500000 -0.74 0 0.00
140
(v) Shareholding of Directors and Key Managerial Personnel:
Shareholding at the Cumulative shareholding

Increase / Decrease
Sl.
Name % of total % of total % of total
1 B.K. Manjunath
Non-Executive Chairman
2 S Sundar
0 0.00 No Change 0 0.00
Managing Director & CEO (from 01/01/2020)
3 Y N Lakshminarayana Murthy
03/12/2019 Market Purchase 5000 0.00 6626 0.00
4 G Sudhakara Gupta
5 H S Upendra Kamath 0 0.00 No Change 0 0.00
6 N Saiprasad
14/11/2019 Off-Market Sale -50000 -0.01 84865 0.03
17/03/2020 Market Sale -10000 0.00 74865 0.02
19/03/2020 Market Sale -10000 0.00 64865 0.02
24/03/2020 Market Sale -1000 0.00 63865 0.02
7 Gorinka Jaganmohan Rao (from 02/12/2019) 0 0.00 No Change 0 0.00
8 Raghuraj Gujjar (from 02/12/2019)
9 Shakti Sinha (from 02/12/2019) 0 0.00 No Change 0 0.00
10 Satish Kumar Kalra (from 02/12/2019) 0 0.00 No Change 0 0.00
11 Meeta Makhan (from 23/01/2020) 0 0.00 No Change 0 0.00
12 K R Pradeep (from 23/01/2020)
09/08/2019 Market Purchase 200000 0.06 6620378 1.97
19/08/2019 Market Purchase 110000 0.03 6730378 2.00
13 Rajnish Kumar – RBI Additional Director 0 0.00 No Change 0 0.00
Sundaram Shankar – RBI Additional Director (from
14 0 0.00 No Change 0 0.00
18/11/2019)
15 N Ramanathan – Company Secretary 0 0.00 No Change 0 0.00
16 S Sundar – Chief Financial Officer (till 31/12/2019) 0 0.00 No Change 0 0.00
141
Shareholding at the Cumulative shareholding

Increase / Decrease
Sl.
Name % of total % of total % of total
17 Kusuma R Muniraju (till 19/06/2019)
18 Parthasarathi Mukherjee
(MD&CEO till 31/08/2019)
29/11/2019 Market Sale -9500 0.00 470500 0.14
06/12/2019 Market Sale -19500 -0.01 451000 0.13
13/12/2019 Market Sale -6000 0.00 445000 0.13
20/12/2019 Market Sale -8000 0.00 437000 0.13
27/12/2019 Market Sale -6000 0.00 431000 0.13
31/12/2019 Market Sale -8260 0.00 422740 0.13
03/01/2020 Market Sale -2500 0.00 420240 0.12
10/01/2020 Market Sale -27130 -0.01 393110 0.12
17/01/2020 Market Sale -6000 0.00 387110 0.11
14/02/2020 Market Sale -130000 -0.04 257110 0.08
13/03/2020 Market Sale -10000 0.00 247110 0.07
20/03/2020 Market Sale -15000 0.00 232110 0.07
19 Supriya Prakash Sen (from 14/06/2019 till 02/10/2019) 0 0.00 No Change 0 0.00
20 Anuradha Pradeep (till 01/11/2019)
21 Suvendu Pati – RBI Additional Director (till 17/11/2019) 0 0.00 No Change 0 0.00
22 Sanjay Kumar Khemani (from 23/01/2020 till 19/03/2020) 0 0.00 No Change 0 0.00
Note:
1. Wherever the exact dates of Market purchase/sale are not available with us, we have considered the dates on which the statements of beneficial
ownerships are received by us from the depositories through Registrar.
2. Wherever there is change in the percentage but not shares, the same is on account of allotment of shares under Employee Stock Option Scheme
and Preferential Issue during the year 2019-20.
3. The percentages in all cases are calculated with respect to the paid up capital of the Bank on that date.
142
V. INDEBTEDNESS:
Indebtedness of the Bank including interest outstanding/accrued but not due for payment.
(` in crore)
Secured Loans
Unsecured Total
excluding Deposits*
Loans indebtedness
deposits
Indebtedness at the beginning of the financial year
i) Principal Amount - 921.26 - 921.26
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 19.18 - 19.18
Total (i+ii+iii) - 940.44 - 940.44
Change in Indebtedness during the financial year
• Addition - 87.00 - 87.00
• Reduction - 268.17 - 268.17
Net Change - -181.17 - -181.17
Indebtedness at the end of the financial year
i) Principal Amount - 755.70 - 755.70
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 3.56 3.56
Total (i+ii+iii) - 759.26 - 759.26
* Since deposits accepted are in ordinary course of banking business, this disclosure is not applicable to the Bank.
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (Amount in `)
Shri Parthasarathi
Shri S Sundar
Mukherjee
Sl. MD & CEO** Total
Particulars of Remuneration MD & CEO*
No. (01.01.2020 to Amount
(01.04.2019 to
31.03.2020)
31.08.2019)
1 Gross Salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 - 12,45,000.00 12,45,000.00
(b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961 3,00,000.00 - 3,00,000.00
(c) Profits in lieu of salary under section 17(3) of the Income-tax Act, 1961 - - -
2 Stock Option - - -
3 Sweat Equity - - -
Commission
4 - as % of profit - - -
- others, specify…
Others (Entertainment Expenditure, Petrol Expenses, Insurance Premium Payment,
5 12,41,844.00 4,35,000.00 16,76,844.00
Gratuity, Medical & PL Encashment)
Total (A) 15,41,844.00 16,80,000.00 32,21,844.00
Being a banking company regulated by the Reserve
Bank of India, the remuneration paid to whole-time
Ceiling as per the Act directors are subject to prior approval of RBI. However,
the remuneration paid are well within the overall ceiling
as per the Companies Act, 2013
* Shri Parthasarathi Mukherjee: Salary for MD for the period from 01.04.2019 to 31.08.2019 has been waived by himself.
** Shri S.Sundar: Appointed as Managing Director & Chief Executive Officer (Interim) w.e.f 01.01.2020.
143
B. Remuneration to other Directors:

Sl. Name of Director Total Amount
Particulars of Remuneration
No. (Shri /Smt.) (in `)
1. Honorarium Paid to Part-Time Chairman 12,00,000.00
B K Manjunath
Fee for attending Board/Committee Meetings 37,45,000.00
2. Independent Directors
• Fee for attending Board/Committee Meetings Y.N. Lakshminarayana Murthy 28,00,000.00
H.S. Upendra Kamath 31,15,000.00
Gorinka Jaganmohan Rao1 5,25,000.00
1
Shakti Sinha 3,85,000.00
Satish Kumar Kalra1 4,20,000.00
2
Meeta Makhan 1,75,000.00
Kusuma R Muniraju3 4,90,000.00
4
Supriya Prakash Sen 3,85,000.00
Sanjay Kumar Khemani5 70,000.00
• Commission NIL
• Others, please specify NIL
Total (1) 1,33,10,000.00
3. Other Non-Executive Directors
• Fee for attending Board/Committee Meetings G Sudhakara Gupta 15,40,000.00
N Saiprasad 21,00,000.00
Raghuraj Gujjar1 4,55,000.00
2
K.R. Pradeep 1,75,000.00
Anuradha Pradeep6 16,10,000.00
• Commission NIL
• Others, please specify NIL
Total (2) 58,80,000.00
Total (B)= (1+2) 1,91,90,000.00
Total Managerial Remuneration (A) + (B) 2,24,11,844.00
Overall Ceiling as per the Act Being a banking company regulated by the Reserve
Bank of India, the remuneration paid to whole-
time directors or part time chairman or any other
directors are subject to prior approval of RBI. The
remuneration paid to the MD & honorarium paid
to Part-Time Chairman are well within the overall
ceiling as per the Companies Act, 2013. No other
directors are paid any remuneration.
1
Co-opted as Additional Director on 02.12.2019.
2
Co-opted as Additional Director on 23.01.2020.
3
Attained Superannuation on 19.06.2019.
4
Co-opted as Additional Director on 14.06.2019 and resigned on 02.10.2019.
5
Co-opted as Additional Director on 23.01.2020 and resigned on 19.03.2020.
6
Resigned on 01.11.2019.
144
C. Remuneration to Key Managerial Personnel other than MD/MANAGER/WTD: (Amount in `)

Key Managerial Personnel
Sl. Shri S.Sundar

Particulars of Remuneration Chief Financial Officer* Shri N.Ramanathan Total
No.
(01.04.2019 to Company Secretary
31.12.2019)
(a) Salary as per provisions contained in section 17(1) of the Income-
37,35,000.00 26,19,760.29 63,54,760.29
tax Act, 1961
1. (b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961 - - -
(c) Profits in lieu of salary under section 17(3) of the Income-tax
- - -
Act, 1961
2. Stock Option - - -
3. Sweat Equity - - -
4. Commission
- as % of profit - - -
- others, specify…
5. Others (Employers’ Contribution to Provident Fund, Petrol
Expenses, Entertainment Expenditure, Medical, Other taxable, - 7,08,571.50 7,08,571.50
LFC, Incentive)
Total 37,35,000.00 33,28,331.79 70,63,331.79
* Resigned on 31.12.2019.
VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES:
Section of Details of Authority

the Brief Penalty / Punishment / [RD / Appeal made, if any
Type
Companies Description Compounding fees NCLT/ (give Details)
Act imposed COURT]
A. COMPANY
No penalty was levied under the Companies Act by any Authorities as prescribed. However, the Bank had been levied
the following penalties by Reserve Bank of India at separate instances, which are given below:
 The Bank was imposed a monetary penalty of ` 1.00 crore for non-adhering to IRAC norms observed in statutory
Penalty inspection with respect to financial position as on March 31, 2017.
 The Bank was imposed a total penalty of ` 83,250/- on account of deficiency like mutilated notes etc., observed in
Soiled Notes remittances made by our currency chest transactions and incoginito visit by RBI officials to respective
branch.
Punishment
NIL
Compounding
B. DIRECTORS
Penalty
Punishment
NIL
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
NIL
Compounding
145
INTEGRATED TREASURY TECHNOLOGY CENTER

The Ruby Towers – 6th floor, Navin’s WSS Tower, 8th Floor,
29, Senapati Bapat Marg, Tulsi Pipe Road, No.1, Langs Garden Road (Adithanar Salai),
Dadar West (A-Wing), Mumbai 400 028 Pudupet,
Email: team_treasury@lvbank.in Chennai – 600 002.
Phone: 022-40925100 Email : lvb_itc@lvbank.in
Fax: 022-40925181 Phone : 044-66881201, 66881301
REGIONAL OFFICES:
BENGALURU CHENNAI
No. 93, 2nd Floor, T.K.N. Mansion, K.H. Road Plot No.136,
(Double Road), Opp. to KSRTC Head Office, 2nd Floor,
Bengaluru - 560 027. P.M.Towers, Greams Road,
Karnataka Chennai - 600 006 Tamil Nadu
Email : Bangalorerohrd_admin@lvbank.in Email : Chennairohrd_admin@lvbank.in
Phone : 080-46766310, 46766325 Phone : 044-40064159, 40064160, 40064161
COIMBATORE DELHI
LVB Platinum Jubilee Building, Flat. No. 29, Road No. 35,
No. 68, Oppanakara Street, First Floor, West Punjabi Bagh,
Ist Floor & IInd Floor, Near Shivaji Park Metro Station,
Coimbatore - 641 001 New Delhi-110 026..
Tamil Nadu Email : Delhirohrd_admin@lvbank.in
Email : coimbatorerohrd_admin@lvbank.in Phone : 011-45753412, 45753408
Phone : 0422-2385800, 2384004
KARUR
HYDERABAD Registered Office Building,
No. 2B & 2C, Ground Floor, Aditya Trade Centre, 2nd Floor,
Lane Adjacent to Huda Mythrivanam, Salem Main Road, Kathaparai,
Ameerpet, Hyderabad - 500 038 Karur - 639 006
Telangana Email : karurro_admin@lvbank.in
Email : Hyderabadrohrd_admin@lvbank.in Phone : 04324-258501, 258412
Phone : 040-23759224, 23759211
MUMBAI
The Lakshmi Vilas Bank Ltd.,
Regional Office,
The Ruby Towers – 6th Floor, (Unit-6N,29)
Senapati Bapat Marg, Tulsi Pipe Road,
Dadar West, Mumbai 400 028.
Maharashtra.
Email : Mumbairohrd_admin@lvbank.in
Phone : 022-40925000, 40925055
146
BRANCH OFFICES
ANDHRA PRADESH 67 Vinukonda 124 Kanakapura Main Road (Bengaluru)
1 Addanki - Vijayawada 68 Vishakapatnam 125 Karwar - Bengaluru
2 Adoni 69 Vizianagaram 126 Kengeri (Bengaluru)
3 Amalapuram 127 Kollegal
4 Anakapalle CHATTISGARH 128 Koramangala (Bengaluru)
5 Ananthapur 70 Dhamtari 129 Langford Town (Personal Banking
6 Ananthavarappadu 71 Durg Branch- Bengaluru)
7 Angalakuduru 72 Mahasamund 130 Malleshwaram (Bengaluru)
8 Annamayya Circle (Tirupathi) 73 Raipur 131 Mandya
9 Bhavanipuram 132 Mangaluru
10 Bhimavaram GUJARAT 133 Mudbidri
11 C.Kothapeta 74 Ahmedabad 134 Mysuru
12 Chittoor 75 Anand 135 Puttur
13 Cuddapah 76 Bharuch 136 Raichur
14 Doddavaram 77 Gandhidham 137 Rajarajeshwari nagar (Bengaluru)
15 Dommaranandyala 78 Gandhinagar 138 Ranebennur
16 Dondapadu 79 Jamnagar 139 RT Nagar (Bengaluru)
17 Eluru 80 Navasari 140 Shimogga
18 Gajuwaka- Hyderabad 81 Rajkot 141 Sirsi
19 Gopalpatnam (Vizag) 82 Sanand (Mumbai) 142 Thippasandra (Bengaluru)
20 Governorpet ( Vijayawada) 83 Surat I 143 Tumakuru
21 Guntur 84 Surat II 144 Udupi - Bengaluru
22 Gurunanak Colony - Vijayawada 85 Vadodara 145 Ulaibettu
23 Jaggaiahpet - Vijayawada 86 Vapi 146 Ulsoor (Bengaluru)
24 Kadiam 147 Vijayanagar (Mysuru)
25 Kakinada HARYANA 148 Vijayapura - Bengaluru
26 Kapavaram 87 Faridabad 149 Vishveswarapura (Bengaluru)
27 Kovvur 88 Gurgaon 150 Yadgir
28 Krishnapatnam 89 Karnal 151 Yelahanka (Bengaluru)
29 Kurnool 90 Panipat
30 Lakshmipuram - Guntur KERALA
31 Lam JHARKHAND 152 Alappuzha
32 Machilipattinam - Vijayawada 91 Jamshedpur 153 Calicut
33 Mangalagiri 92 Ranchi 154 Chalakudy
34 Marichetlapalem 155 Ernakulam (Cochin)
35 Markapur KARNATAKA 156 Guruvayoor
36 MVP Colony (Vishakapatnam) 93 Ballari 157 Kollam
37 Nandigama 94 Bagalkot - Bengaluru 158 Kottayam
38 Nandiyal 95 Banashankari (Bengaluru) 159 Malapuram
39 Narasaraopet 96 Bangalore-main 160 Palakkad
40 Narasipatnam - Vijayawada 97 Bangarpet 161 Perumbavoor
41 Nellore 98 Bannerghatta Road – (Bengaluru) 162 Thiruvananthapuram
42 Ongole 99 Basavanagudi (Bengaluru) 163 Thrissur
43 Palasa - Kassibugga 100 Basaveshwaranagar (Bengaluru) 164 Vavvakavu
44 Parvathipuram - Vijayawada 101 Belgaum
45 Pedapulipaka 102 Bellandur (Bengaluru) MADHYA PRADESH
46 Peddapuram - Vijayawada 103 Bommanahalli (Bengaluru) 165 Ashta
47 Piduguralla 104 BTM Layout (Bengaluru) 166 Bhopal
48 Ponnur 105 Byadgi (Bengaluru) 167 Indore
49 Prodattur 106 Cantonment (Bengaluru) 168 Jabalpur
50 Rajamundri 107 Channarayapatna
51 Ramachandrapuram-East Godavari 108 Chikballapur MAHARASHTRA
52 Ravulapalem - Vijayawada 109 Chitradurga 169 Andheri (Mumbai)
53 Ring Road - Vijayawada 110 City market (Bengaluru) 170 Boisar
54 Salur - Vijayawada 111 Davangere 171 Borivili (Mumbai)
55 Sattenapalle - Vijayawada 112 Devanahalli (Bengaluru) 172 Chembur (Mumbai)
56 Sivakodu 113 Dharwad 173 Fort (Mumbai)
57 Srikakulam 114 Gadag 174 Ghatkopar (Mumbai)
58 Sulthanagaram 115 Hassan 175 Kalyan (Mumbai)
59 Tadepalli 116 HBR – Layout – (Bengaluru) 176 Kharghar (Mumbai)
60 Tadepalligudam 117 Honnasandra 177 Kolhapur
61 Tanuku 118 Hospet 178 Matunga (Mumbai)
62 Tenali 119 HSR Layout (Bengaluru) 179 Nagpur
63 Thimmapuram 120 Hubli 180 Nasik
64 Thurputallu 121 Jalahalli (Bengaluru) 181 Nerul (Mumbai)
65 Tirupathi 122 Jayanagar (Bengaluru) 182 Pune
66 Vijayawada 123 Kalaburagi 183 Thane (Mumbai)
147
184 Vasai (Mumbai) 242 C.K.Street (Salem) 311 Kombai

185 Vashi (Mumbai) 243 Cantonment (Trichy) 312 Kondalampatti (Salem)
244 Cathedral Road (Chennai) 313 Kondamanaickenpatty
NEW DELHI 245 Chellapillaikuttai (Salem) 314 Kondikulam
186 Ashok vihar (New Delhi ) 246 Chengalpattu 315 Koodalnagar (Madurai)
187 Chandigarh (New Delhi) 247 Chennai-Main 316 Kottivakkam (Chennai)
188 Jamukoli 248 Cheyyar (Chennai) 317 Koundampalayam (Coimbatore)
189 Janpath (New Delhi) 249 Chidambaram 318 Kovaipudur (Coimbatore)
190 Kalkaji (New Delhi) 250 Chinna Salem 319 Kovilpatti
191 Karolbagh (New Delhi) 251 Chinnadharapuram 320 Krishnagiri
192 Krishnanagar (New Delhi) 252 Chinthalavadi 321 Kulithalai
193 Ludhiana 253 Chittode 322 Kumbakonam
194 Mahavir Nagar (New Delhi) 254 Chrompet (Chennai) 323 Kuniyur
195 Rohini (New Delhi) 255 Coimbatore - MAIN 324 Kurumbapatti
196 Shalimar Bagh (New Delhi) 256 Cuddalore 325 La Gudalur
257 Cumbum 326 Lakkapuram
ODISHA 258 Denkanikottai (Salem) 327 Lalgudi
197 Bhubaneshwar 259 Devakottai (Madurai) 328 M.N.Palayam
198 Cuttack 260 Dharapuram 329 M.Puthur
199 Jharsuguda (Delhi) 261 Dharmapuri 330 Madipakkam (Chennai)
200 Majhihara 262 Dindigul 331 Madukkur North
263 Eachanari(Coimbatore) 332 Madurai Main
PUDUCHERY 264 Erode 333 Mahadhanapuram
201 Ambagarathur 265 Four road ( Kumbakonam) - Karur 334 Manamedu
202 Karaikal 266 G.N.Street (Chennai) 335 Manapparai
203 Lawspet (Puduchery) 267 Ganapathy (Coimbatore) 336 Mangarai
204 Puducherry 268 Gandhigramam (Karur) 337 Mannargudi
205 Reddiyarpalyam (Puduchery) 269 Gandhimanagar (Coimbatore) 338 Marakkottai
270 Gandhipuram (Coimbatore) 339 Marandahalli
RAJASTHAN 271 Gingee 340 Markkampatti
206 Bhilwara 272 Gobichettipalayam 341 Mathur (Erode)
207 Jaipur 273 Gopalapatti 342 Mathur (Krishnagiri)
274 Guduvancheri (Chennai) 343 Mayiladuthurai
TAMILNADU 275 Gugai (Salem) 344 Mecheri
208 Abhiramapuram(Personal Banking 276 Hastampatti (Salem) 345 Melur
Branch- Chennai) 277 Hosur 346 Melasheshamangalam
209 Adambakkam (Chennai) 278 Idayakottai 347 Mettupalayam
210 Adyar (chennai) 279 Iyyampalayam 348 Mettur Dam
211 Alathur 280 J.Veeranam 349 Michalpatti
212 Ambasamudram 281 Jalakandapuram 350 Mogappair (Chennai)
213 Ambattur (Chennai) 282 Jegadabi 351 Mohanur
214 Ambilikai 283 K K Nagar (Chennai) 352 Moolangudi
215 Ambur 284 K.Vadamadurai (Coimbatore) 353 Moolapalayam(Erode)
216 Ammapet (Salem) 285 Kachirapalayam 354 Mount Road (Chennai)
217 Anaindaperumal Nadanur (Madurai) 286 Kadalangudi 355 Mowlivakkam(Chennai)
218 Anbil 287 Kadambuliyur 356 Mudhugampatti
219 Anna Nagar (Chennai) 288 Kalangani 357 Muthugapatty
220 Anna Nagar (Madurai) 289 Kallakurichi 358 Muthupet
221 Annur 290 Kallalangudy 359 Muthur
222 Arakandanallur 291 Kambarasampettai 360 Mylambadi
223 Arakonam (Chennai) 292 Kancheepuram 361 Mylapore (Chennai)
224 Arantangi 293 Kandili 362 Nagankulam (Madurai)
225 Arasappapillaipatti 294 Kangayam 363 Nagapattinam
226 Arcot (chennai) 295 Kangayam Road -TUP (Coimbatore) 364 Nagercoil
227 Ariyalur 296 Kanjampatti 365 NaickerNew Street ( Madurai)
228 Arni 297 Kanmai Soorangudi 366 Namakkal
229 Aruppukkottai 298 Karaikudi 367 Nathakadaiyur
230 Attur 299 Karanodai 368 Nathamedu
231 Avadi (Chennai) 300 Karur Main (Karur) 369 Nedumpuli
232 Avalpoondurai 301 Karur West (Karur) 370 Neelagiri (Thanjavur) - Karur
233 Ayothiapattinam (Salem) 302 Kathaparai (Karur) 371 Nerinjipettai
234 Balasamudram 303 Kattugudalur 372 Neyveli
235 Bargur 304 Kattuputhur 373 Nidur
236 Batlagundu 305 Kavaraipettai (Chennai) 374 Nungambakkam (Chennai)
237 Bhuvanagiri 306 Kaveripattinam 375 Oddanchathram
238 Bibikulam (Madurai) 307 KK Pudur (Coimbatore) 376 Olapalayam
239 Bodinayakanur 308 Kodambakkam (Chennai) 377 Ondipudur (Coimbatore)
240 Bye Pass Road, Madurai 309 Kolappakam (Chennai) 378 Othakadai(Madurai)
241 C. Pudupatti 310 Kolathur (Chennai) 379 P.Ayeepalayam
148
380 Palacode 449 Thirumangalam 516 Jagtial

381 Palani 450 Thiruvaiyaru 517 Jammikunta (Hyderabad)
382 Palayamkottai 451 Thiruvallur(Chennai) 518 Jangaon
383 Pallipalayam 452 Thiruvarur 519 Karim Nagar
384 Panruti 453 Thiruvidaikazhi 520 Karmanghat (Hyderabad)
385 Papanad 454 Thittagudi 521 Kesamudram (Hyderabad)
386 Papanasam 455 Thokkavadi 522 Khammam
387 Pattukottai 456 Thorapakkam (Chennai) 523 Kompally
388 Peelamedu (Coimbatore) 457 Thottiyam 524 Kothapeta (Hyderabad)
389 Pennagaram 458 Tindivanam 525 Kukatpally (Hyderabad)
390 Perambalur 459 Tirpur 526 Luxttipet (Hyderabad)
391 Perambur(Chennai) 460 Tiruchengode 527 Madhapur (Hyderabad)
392 Peravurani 461 Tirukadaiyur 528 Malipuram (Hyderabad)
393 Periyakulam 462 Tirukoilur 529 Malkajgiri (Hyderabad)
394 Perungalathur(Chennai) 463 Tirunelveli Town 530 Mallemadugu
395 Podakudy 464 Tiruthuraipoondi 531 Mancherial
396 Pollachi 465 Tiruvannamalai 532 Mehabubnagar
397 Pothuravuthanpatty (Karur) 466 Tiruvottriyur (Chennai) 533 Mehdipatnam (Hyderabad)
398 Pudukkottai 467 Trichy (Main) 534 Miryalguda
399 Pugalur 468 Triplicane (Chennai) 535 Nalgonda
400 Puliyakulam(Coimbatore) 469 Turaiyur 536 Navandgi
401 Punavasal East 470 Tuticorin 537 New Gaddianaram (Hyderabad)
402 Purasawalkam (Chennai) 471 Udayamarthandapuram 538 Nizamabad
403 R S Puram(Coimbatore) 472 Udumalpet 539 Peruvancha
404 R.Pudupatti 473 Ulipuram 540 PG Road (Hyderabad)
405 Rajapalayam 474 Unjalur 541 Ponnal
406 Rajendram 475 Upilipalayam (Coimbatore) 542 Punjagutta(Hyderabad)
407 Ramanathapuram 476 Uranganpatti 543 Ramachandrapuram (Hyderabad)
408 Ramanathapuram (Coimbatore) 477 Uttamarkoil(Trichy) 544 Sadasivet (Hyderabad)
409 Ramapuram(Chennai) 478 Vadavalli(Coimbatore) 545 Secundrabad (Hyderabad)
410 Rasipuram 479 Vadugapalayam 546 Seethaphalmandi (Hyderabad)
411 Rayakotta 480 Valasarawalkam (Chennai) 547 Sircilla(Hyderabad)
412 Royapuram (Chennai) 481 Velacherry (Chennai) 548 Suryapet
413 Saidapet(Chennai) 482 Vellakoil 549 Vanasthalipuram
414 Salem Town 483 Velliyani 550 Vikarabad(Hyderabad)
415 Saligramam (Chennai) 484 Vellore (NA) 551 Vikrampuri (Hyderabad)
416 Sambankulam 485 Velur (Namakkal) 552 Warangal
417 Sankarapuram 486 Vengaivasal(Chennai) 553 West Maredpally (Hyderabad)
418 Sankari 487 Vengamedu (Karur)
419 Sathyamangalam 488 Venjuvancheri(Chennai) UTTAR PRADESH
420 Sattur 489 Venkatakrishnapuram 554 Ghaziabad
421 Seevalaperi (Satellite branch) 490 Vettavalam 555 Noida
422 Selaiyur (Chennai) 491 Vichoor (Chennai)
423 Sendarapatti 492 Vilangudi WEST BENGAL
424 Senthamangalam (Salem) 493 Villapuram (Madurai) 556 Garia
425 Shevapet (Salem) 494 Villivakkam (Chennai) 557 Kolkata
426 Siddhapudur (Coimbatore) 495 Villupuram 558 Kolkata - New Alipur
427 Sikkal 496 Virudhunagar 559 Salt Lake-Kolkata
428 Sindalapatti 497 Vridhachalam
429 Sirumayangudi 498 West Mambalam (Chennai) COMMERCIAL BANKING BRANCHES
430 Sivakasi 499 West Tambaram (Chennai) 560 Bengaluru - Langford Town
431 South Masi Street(Madurai) 500 Yethapur 561 Chennai - Cenotaph Road
432 Sriperumbudur(Chennai) 562 Coimbatore - Avinashi Road
433 Srirangam (Trichy) TELANGANA 563 Delhi - Karol Bagh
434 Srivilliputhur 501 A.S Rao Nagar (Hyderabad) 564 Hyderabad - Srinagar Colony
435 Sundarapandiam 502 Aswaraopet 565 Karur - Kathaparai, Salem Main Road
436 Suramangalam (Salem) 503 Adilabad 566 Mumbai - Fort Mumbai
437 Surandai (Madurai) 504 Alwal - Secundrabad
438 Swarnapuri (Salem) 505 Ameerpet (Hyderabad)
439 T.Nagar (Chennai) 506 Asifabad
440 Tanjore 507 Atevelle
441 Tenkasi 508 Banjara Hills (Hyderabad)
442 Thallakulam (Madurai) 509 Bhupalpalle (Hyderabad)
443 Thayanur 510 Boduppal
444 Theni 511 Chityala
445 Thillai Nagar (Trichy) 512 Habsiguda (Hyderabad)
446 Thimmanandal 513 Hanumakonda
447 Thindal 514 Hyderabad Main
448 Thirukattupalli 515 Jadcherla
149
A DECADE OF PROGRESS
(Amount given in Lakhs)
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Paid-up Capital 9752.58 9752.58 9754.07 9756.07 17916.67 17946.16 19144.67 25599.38 31990.32 33671.38
Reserve & Surplus 79490.91 86083.93 91680.38 95603.85 137697.60 158413.25 194489.50 207167.45 157267.31 89309.12
Deposits 1114951.07 1411414.00 1561897.79 1857288.21 2196421.22 2543096.15 3055335.35 3330948.29 2927944.08 2144319.41
Advances 809442.28 1018867.97 1170279.56 1288918.96 1635201.90 1964373.90 2372891.14 2576820.17 2010325.93 1382789.04
Investments 351885.03 439511.80 432454.68 568867.76 605115.62 654540.46 865173.03 1076774.83 843016.53 538382.95
Net Profit / Loss 10113.68 10702.22 9157.45 5965.55 13228.59 18023.58 25607.21 -58486.61 -89409.71 -83604.46
Number of
274 290 291 361 400 460 481 548 569 566
Branches
Staff Position 2626 3054 3149 3292 3459 3565 4043 4623 4557 4349
Earning Per Share

10.37 10.97 9.39 6.11 9.16 10.05 14.07 -28.29 -34.66 -25.16
(`)
Book Value (`) 83.23 90.14 92.88 100.16 82.48 88.70 102.74 84.39 53.48* 31.21*
Market Price 98.00 85.05 81.35 71.15 101.60 81.15 166.40 98.50 71.00 10.95
Dividend Per
2.50 3.50 3.00 1.00 2.00 3.00 2.70 Nil Nil Nil
Share (`)
* Book value adjusted for DTA, intangible assets is ` 25.08 (31.03.2019) and ` (-)5.63 (31.03.2020).
150
93rd ANNUAL REPORT 2019 - 2020
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LVB 93rd Annual Report 2019-20

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LVB 93rd Annual Report 2019-20

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93rd ANNUAL REPORT 2019 - 2020

Printed at LS Graphic Prints

Shri G.SuDHAKARA GuPTA Shri n.SAIPRASAD Shri GORInKA JAGAnmOHAn RAO

Smt. mEETA mAKHAn Shri K.R.PRADEEP Shri B.K.mAnJunATH

Shri Y.n.lAKSHmInARAYAnA muRTHY Shri RAJnISH KumAR Shri SunDARAm SHAnKAR

REGISTRAR AND SHARE TRANSFER AGENT

CONTENTS Page No.

Profit & Loss Account 29

Cash Flow Statement 30

BASEL III - Pillar 3 Disclosures 69

Certificate on Corporate Governance and ESOS 89

A Decade of Progress 150

DIRECTORS’ 93rd ANNUAL REPORT

For the year ended (` in crores)

For the year ended (` in crores)

6. STATEMENT OF DEVIATION OR VARIATION

7. EPS / BOOK VALUE

8. NET OWNED FUNDS / CAPITAL ADEQUACY RATIO

9. POSITION OF IND-AS IMPLEMENTATION

10. DIVERGENCE IN ASSET CLASSIFICATION AND PROVISIONING FOR NPAs

11. NON-PERFORMING ASSETS (NPA)

12. BRANCH AND ATM NETWORK

13. FINANCIAL INCLUSION

14. INTERNATIONAL BUSINESS

15. LIABILITIES PRODUCTS

17. WEALTH MANAGEMENT / PARABANKING ACTIVITIES:

19. INTERNAL CONTROLS

20. HUMAN RESOURCES

21. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE BANK

23. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

24. OUTLOOK OF THE BANK 2020-21

The Banking sector:

25. CORPORATE GOVERNANCE

26. NUMBER OF MEETINGS OF THE BOARD

28. DECLARATION BY INDEPENDENT DIRECTORS

29. CONFIRMATION ON INDEPENDENT DIRECTORS

30. FAMILIARISATION PROGRAMME

31. BOARD OF DIRECTIOS & KEY MANAGERIAL PERSONNEL

Resignations / Cessation of tenure of appointment

RBI Additional Director:

Re-appointment of Director retiring by rotation:

Relationship between Directors inter-se:

Key Managerial Personnel

32. LIST OF CORE SKILLS / COMPETENCIES IDENTIFIED BY THE BOARD

Sl. No. Name of the Director Areas of Expertise

Sl. No. Name of the Director Areas of Expertise

34. SOCIAL INITIATIVES 2019-2020

Corporate Social Responsibility (CSR)

35. BUSINESS RESPONSIBILITY REPORT

36. ANNUAL RETURN

37. STATEMENT ON COMPLIANCE TO APPLICABLE SECRETARIAL STANDARDS

38. PARTICULARS OF EMPLOYEES

39. EMPLOYEES STOCK OPTION SCHEME

43. OTHER PENALTIES IMPOSED BY REGULATORS

Number of complaints pending as on the beginning of the financial year - Nil

45. VIGIL MECHANISM / WHISTLE BLOWER POLICY

48. LISTING AGREEMENT WITH STOCK EXCHANGES

For and on behalf of the Board of Directors

INDEPENDENT AUDITOR’S REPORT

Report on the Audit of the Financial Statements

Basis for Qualified Opinion

Material uncertainty related to going concern

Key Audit Matters

S. No. Key Audit Matter Auditor’s Response to Key Audit Matter