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ICICI Bank Ltd.

BSE: 532174 Sector: Financials
NSE: ICICIBANK ISIN Code: INE090A01021
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OPEN 720.65
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VOLUME 737874
52-Week high 859.70
52-Week low 479.00
P/E 25.55
Mkt Cap.(Rs cr) 497,421
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
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ICICI Bank Ltd. (ICICIBANK) - Director Report

Company director report

Your Directors have pleasure in presenting the Twenty-Seventh AnnualReport of ICICI Bank Limited (ICICI Bank/the Bank) along with the audited financialstatements for the year ended March 312021.

FINANCIAL HIGHLIGHTS

The financial performance for fiscal 2021 is summarised in thefollowing table:

Rs. in billion except percentages Fiscal 2020 Fiscal 2021 % change
Net interest income and non-interest income 484.23 529.12 9.3%
Operating expenses 216.15 215.61 (0.2%)
Core operating profit 268.08 313.51 16.9%
Treasury income 12.93 50.46 290.3%
Operating profit 281.01 363.97 29.5%
Provisions & contingencies (excluding tax) 140.53 162.14 15.4%
Profit before tax 140.48 201.83 43.7%
Profit after tax 79.31 161.93 104.2%
Rs. in billion except percentages Fiscal 2020 Fiscal 2021 % change
Consolidated profit before tax and minority interest 185.89 260.28 40.0%
Consolidated profit after tax and minority interest 95.66 183.84 92.2%

APPROPRIATIONS

The profit after tax of the Bank for fiscal 2021 is Rs. 161.93 billionafter provisions and contingencies of Rs. 202.04 billion (including provision for taxes ofRs. 39.90 billion). The accumulated profit is Rs. 375.20 billion taking into account thebalance of Rs. 213.27 billion brought forward from the previous year. Your Bank has aconsistent dividend payment history. Your Bank's dividend policy is based on theprofitability and key financial metrics capital position and requirements and theregulations pertaining to the payment of dividend. The Reserve Bank of India (RBI) throughits circular on 'Declaration of dividends by banks (Revised)' had directed that banksshall not make any dividend payouts on equity shares from the profits pertaining to fiscal2020. Accordingly the Board of Directors did not recommend any dividend for fiscal 2020.The Board of Directors has recommended a dividend of Rs. 2.00 per equity share for theyear ended March 31 2021 and has appropriated the disposable profit as follows:

Rs. in billion Fiscal 2020 Fiscal 2021
To Statutory Reserve making in all Rs. 297.69 billion 19.83 40.48
To Special Reserve created and maintained in terms of Section 36(1) (viii) of the Income Tax Act 1961 making in all Rs. 113.84 7.90 10.90
To Capital Reserve making in all Rs. 133.80 billion 3.96 1.30
To Investment Fluctuation Reserve making in all Rs. 16.89 billion1 6.69 (2.49)
To Revenue and other reserves making in all Rs. 56.57 billion - 14.922
Dividend paid on equity shares3 6.45 -
Leaving balance to be carried forward to the next year 213.28 310.09

 

1 Represents an amount transferred to Investment Fluctuation Reserve(IFR) from disposable profit. As per the RBI guidelines an amount not less than the lowerof net profit on sale of available-for-sale (AFS) and held-to-maturity (HFT) categoryinvestments during the year or net profit for the year less mandatory appropriations isrequired to be transferred to IFR until the amount of IFR is at least 2% of the HFT andAFS portfolio. The Bank can draw down balance available in IFR in excess of 2% of its AFSand HFT portfolio. Accordingly during fiscal 2021 the Bank has transferred an amount ofRs. 2.49 billion from IFR to Balance in Profit & Loss Account.

2 Includes transfer of accumulated balance amounting to ' 0.08billion maintained in Reserve Fund under Sri Lankan Banking Act No. 30 of 1988 to balancein Profit & Loss account due to closure of the Branch.

3 Represent dividend declared for previous financial year and paid incurrent financial year. RBI through its circular on 'Declaration of dividends by banks(Revised)' had directed that banks shall not make any dividend payment on equity sharesfrom the profits pertaining to the financial year ended March 31 2020. Accordingly theBank did not declare any dividend for fiscal 2020.

The Bank prepares its financial statements in accordance with theapplicable accounting standards RBI guidelines and other applicable laws/regulations.RBI under its risk- based supervision exercise carries out the risk assessment of theBank on an annual basis. This assessment is initiated subsequent to the finalisationcompletion of audit and publication of audited financial statements for a financial yearand typically occurs a few months after the financial year-end. As a part of thisassessment RBI separately reviews asset classification and provisioning of creditfacilities given by the Bank to its borrowers. The divergences if any in classificationor provisioning arising out of the supervisory process are given effect to in thefinancial statements in subsequent periods after conclusion of the exercise.

In terms of the RBI circular no. DBR.BP!BC.No.32/21.04.018/ 2018-19dated April 12019 banks are required to disclose the divergences in asset classificationand provisioning consequent to RBI's annual supervisory process in their notes to accountsto the financial statements wherever either

(a) the additional provisioning requirements assessed by RBI exceed 10%of the reported net profits before provisions and contingencies or

(b) the additional gross NPAs identified by RBI exceed 15% of thepublished incremental gross NPAs for the reference period or both. Based on the conditionmentioned in RBI circular no disclosure on divergence in asset classification andprovisioning for NPAs is required with respect to RBI's supervisory process for fiscal2020.

SHARE CAPITAL

During the year under review the Bank allotted 24232771 equityshares of Rs. 2.00 each pursuant to exercise of stock options under the Employee StockOption Scheme.

On August 15 2020 allotment of 418994413 equity shares of facevalue Rs. 2.00 each was made to eligible qualified institutional buyers at the issue priceof Rs. 358.00 per equity share i.e. at a premium of Rs. 356.00 per equity share.

For details refer to Schedule 1 of the financial statements.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS

Pursuant to Section 186(11) of the Companies Act 2013 the provisionsof Section 186 of the Companies Act 2013 except sub-section (1) do not apply to a loanmade guarantee given or security provided by a banking company in the ordinary course ofbusiness. The particulars of investments made by the Bank are disclosed in Schedule 8 ofthe financial statements as per the applicable provisions of the Banking Regulation Act1949.

SUBSIDIARY ASSOCIATE AND JOINT VENTURE COMPANIES

There is no change in the subsidiaries and associates of the Bankduring fiscal 2021. The Bank does not have any joint venture company. As at March 312021 your Bank had following subsidiaries (16) and associate (8) Companies:

Name of the Subsidiary Company % of shares held
ICICI Bank UK PLC 100
ICICI Bank Canada 100
ICICI Securities Limited 75.00
ICICI Securities Holding Inc.1 100
ICICI Securities Inc.2 100
ICICI Securities Primary Dealership Limited 100
ICICI Venture Funds Management Company Limited 100
ICICI Home Finance Company Limited 100
ICICI Trusteeship Services Limited 100
ICICI Investment Management Company Limited 100
ICICI International Limited 100
ICICI Prudential Pension Funds Management Company Limited3 100
ICICI Prudential Life Insurance Company Limited 51.37
ICICI Lombard General Insurance Company Limited 51.88
ICICI Prudential Asset Management Company Limited 51.00
ICICI Prudential Trust Limited 50.80

 

1 ICICI Securities Holding Inc. is a wholly owned subsidiary o^ ICICISecurities Limited.

2 ICICI Securities Inc. is a wholly owned subsidiary of ICICISecurities Holding Inc.

3 ICICI Prudential Pension Funds Management Company Limited is a whollyowned subsidiary of ICICI Prudential Life Insurance Company Limited.

Name of the Associate Company % of shares held
I-Process Services (India) Private Limited 19.00
NIIT Institute of Finance Banking and Insurance Training Limited 18.79
ICICI Merchant Services Private Limited 19.01
India Infradebt Limited 42.33
Arteria Technologies Private Limited 19.98
Rajasthan Asset Management Company Private Limited# 24.30
OTC Exchange of India Limited# 20.00
Falcon Tyres Limited# 26.39

 

# These companies are not considered as associates in the financialstatements in accordance with the provisions of /4S 23 on 'Accounting forInvestments in Associates in Consolidated Financial Statements'.

HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES ASSOCIATES AND JOINT VENTURECOMPANIES AND THEIR CONTRIBUTION TO THE OVERALL PERFORMANCE OF THE COMPANY

The performance of subsidiaries and associates and their contributionto the overall performance of the Bank as on March 31 2021 is given in "ConsolidatedFinancial Statements of ICICI Bank Limited - Schedule 18 - Note 12 - Additionalinformation to consolidated accounts" of this Annual Report. A summary of keyfinancials of the Bank's subsidiaries is also given in "Statement Pursuant to Section129 of Companies Act 2013" of this Annual Report.

The highlights of the performance of key subsidiaries are given as apart of Management's Discussion & Analysis under the section "Consolidatedfinancials as per Indian GAAP".

The Bank will make available separate audited financial statements ofthe subsidiaries to any Member upon request. These documents/details will be available onthe Bank's website at https://www.ICICIbank.com/aboutus/ annual.html and will also beavailable for inspection by any Member or trustee of the holder of any debentures of theBank. As required by Accounting Standard 21 (AS-21) issued by the Institute of CharteredAccountants of India the Bank's consolidated financial statements included in this AnnualReport incorporate the accounts of its subsidiaries and other consolidating entities.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS ORTRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY AND ITS FUTURE OPERATIONS

There are no significant and/or material orders passed by theregulators or courts or tribunals impacting the going concern status or future operationsof the Bank.

UPDATE ON COVID-19

The COVID-19 pandemic has impacted most economies and banking systemsglobally including India. The nationwide lockdown in April-May 2020 substantiallyimpacted economic activity. The easing of lockdown measures subsequently led to gradualimprovement in economic activity and progress towards normalcy. For the banking sectorthese developments resulted in lower demand for loans and fee-based services andregulatory measures like moratorium on payment of dues and standstill in assetclassification to mitigate the economic consequences on borrowers. It also resulted inincrease in provisioning reflecting higher actual and expected additions to nonperformingloans following the cessation of moratorium and asset classification standstill. Pursuantto the second wave of COVID-19 pandemic since March 2021 the number of new cases hasincreased significantly across India in both urban and rural areas and it has resulted inre-imposition of localised/regional lock-down measures in various parts of the country.

In these challenging times the Bank's employees have shown strongresilience and the ability to adapt to changing circumstances. The health and well-beingof employees and customers and business continuity is of utmost importance to the Bank.The Bank formed a quick response team to take steps to protect the health of the employeesand provide essential services to the customers. About 97% of the branches were functionalwith reduced working hours during the national lockdown in fiscal 2021. The branches werestaffed based on the customer footfalls and employees were rostered. Excluding theemployees working at the branches and some of the team members from Operations and IT themajority of the employees continue to work from home. The Bank continues to do a thoroughrisk assessment for augmenting IT security controls and curb any gaps and potentialthreats in the current working arrangement.

The Bank continues to see opportunities to grow and strengthen itsfranchise and it is using these opportunities to further accelerate the digital journey ofthe Bank and its customers. In March 2020 the Bank launched a comprehensive digitalbanking platform called ICICI STACK which offers nearly 500 services to ensureuninterrupted banking experience to retail business banking SME and corporate customers.Other major digital initiatives include WhatsApp banking Video KYC for digital onboardingof customers cardless cash withdrawal at ATMs and a mobile banking app iMobile Pay thatextends the mobile banking facility to non-ICICI Bank customers. We have launched digitalproducts like InstaBIZ and supply chain financing solutions for our small businesscustomers including APIs from the API Banking Portal to integrate various payment andproduct solutions. Our digital offerings for large corporates and their ecosystems includedigital platforms for domestic and international trade and industry specific solutionsacross the value chain. The Bank is seeing increased utilisation of its digital channelsand platforms by its customers and has ensured that the IT infrastructure is able tohandle any unexpected surge in digital transactions. The Bank continues to monitor thesituation in the country and would take necessary steps to ensure safety of its people andcontinuity of its business operations. In its effort to support the nation in its fightagainst the COVID-19 outbreak the ICICI Group has committed a sum of Rs. 1.00 billionincluding Rs. 800.0 million to the PM Cares Fund. ICICI Bank and ICICI Foundation haveworked actively to assist various agencies including hospitals the police paramilitaryforces municipalities and government bodies in their tireless efforts to safeguard thecitizens of the country.

Going forward economic activity will depend on the trajectory of theCOVID-19 pandemic the progress of the vaccination programme and the restrictions onactivity and the period for which they continue. A prolonged period of economic weaknesscaused by the second wave of the pandemic and uncertainty regarding normalisation couldcontinue to impact banking sector loan growth revenues margins asset quality and creditcosts in fiscal 2022. In view of the continuing uncertainties and rising risks in theoperating environment the Bank would continue to focus on ensuring a resilient balancesheet and maintaining strong capital levels. The Bank's capital and liquidity position isstrong and would continue to be a focus area for the Bank during this period.

MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THEBANK

There are no material changes and commitments affecting the financialposition of the Bank which have occurred between the end of the financial year of the Bankto which the financial statements relate and the date of this Report. For the impact ofCOVID-19 on the performance of the Bank and the Group refer "note no. 59 of schedule18 - Notes forming part of the accounts" of financial statements of the Bank and"note no. 19 of schedule 18 - Notes forming part of the accounts" ofconsolidated financial statements of the Bank.

DIRECTORS AND OTHER KEY MANAGERIAL PERSONNEL

Changes in the composition of the Board of Directors and other KeyManagerial Personnel

The Members at the last Annual General Meeting (AGM) held on August 142020 approved the re-appointment of Vishakha Mulye as a wholetime Director (designated asExecutive Director) for a period of five years effective from January 19 2021 subject tothe approval of Reserve Bank of India (RBI). RBI through its letter dated January 8 2021approved the re-appointment of Vishakha Mulye as Executive Director of the Bank for aperiod of three years effective from January 19 2021.

Further the Members at the last AGM approved the re-appointment ofGirish Chandra Chaturvedi as an Independent Director of the Bank for a period of threeyears effective from July 1 2021. The Members also approved the re-appointment of GirishChandra Chaturvedi as Non-Executive (part-time) Chairman of the Bank for a period of threeyears effective from July 1 2021 subject to the approval of RBI. RBI through its letterdated June 8 2021 approved the re-appointment of Girish Chandra Chaturvedi asNon-Executive (part-time) Chairman of the Bank for a period of three years with effectfrom July 12021.

RBI through its letter dated December 22 2020 communicated itsapproval for the appointment of Sandeep Batra as Executive Director of the Bank for aperiod of three years from the date of his taking charge as Executive Director. The Boardof Directors through a circular resolution dated December 23 2020 recorded December 232020 as the effective date of appointment and taking charge by Sandeep Batra as ExecutiveDirector of the Bank.

The Board of Directors on April 24 2021 based on the recommendation ofthe Board Governance Remuneration & Nomination Committee approved the re-appointmentof Anup Bagchi as a wholetime Director (designated as Executive Director) for a period offive years or date of retirement whichever is earlier effective from February 1 2022subject to the approval of Members and RBI. The re-appointment is being proposed in theNotice of the forthcoming AGM through item no.10.

In terms of Section 203(1) of the Companies Act 2013 Sandeep BakhshiManaging Director & CEO Anup Bagchi Executive Director Sandeep Batra ExecutiveDirector Vishakha Mulye Executive Director Rakesh Jha Chief Financial Officer andRanganath Athreya Company Secretary are the Key Managerial Personnel of the Bank.

Declaration of Independence

All Independent Directors have given declarations that they meet thecriteria of independence as laid down under Section 149 of the Companies Act 2013 asamended (the Act) and Regulation 16 of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 (SEBI Listing Regulations)which have been relied on by the Bank and were placed at the Board Meeting held on April24 2021. In the opinion of the Board the Independent Directors fulfil the conditionsspecified in the Act and the SEBI Listing Regulations and are independent of theManagement.

Retirement by rotation

In terms of Section 152 of the Companies Act 2013 Sandeep Bakhshiwould retire by rotation at the forthcoming AGM and is eligible for re-appointment.Sandeep Bakhshi has offered himself for re-appointment.

AUDITORS

Statutory Auditors

M/s Walker Chandiok & Co LLP Chartered Accountants werere-appointed as auditors by the Members at their Twenty-Sixth Annual General Meeting (AGM)held on August 14 2020 to hold office till conclusion of the Twenty-Seventh AGM. M/sWalker Chandiok & Co LLP Chartered Accountants have been auditors of the Company forthree consecutive years which is the maximum term for statutory auditors of bankingcompanies as per the circular issued by Reserve Bank of India (RBI) on 'Guidelines forAppointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) of CommercialBanks (excluding RRBs) UCBs and NBFCs (including HFCs)' dated April 27 2021. Hence theywould be retiring at the conclusion of the forthcoming AGM. The Audit Committee and theBoard of Directors have placed on record their appreciation of the professional servicesrendered by M/s Walker Chandiok & Co LLP during their association with the Company asits auditors.

As per the above-mentioned RBI guideline the statutory audit needs tobe conducted under joint audit of a minimum of two audit firms with effect from FY2022.Accordingly as recommended by the Audit Committee the Board has proposed the appointmentof M/s MSKA & Associates Chartered Accountants and M/s Khimji Kunverji & Co LLPChartered Accountants as Joint Statutory Auditors for the year ending March 31 2022(fiscal 2022). Their appointment has been approved by RBI on July 8 2021. The appointmentof the auditors is being proposed to the Members in the Notice of the forthcoming AGMthrough item nos. 4 and 5.

There are no qualifications reservation or adverse remarks made by thecurrent statutory auditors in the audit report.

Secretarial Auditors

The Board appointed M/s. Parikh Parekh & Associates a firm ofCompany Secretaries in Practice to undertake the Secretarial Audit of the Bank for fiscal2021. The Secretarial Audit Report is annexed herewith as Annexure A. There are noqualifications reservation or adverse remark or disclaimer made by the auditor in thereport save and except disclaimer made by them in discharge of their professionalobligation.

The Annual Secretarial Compliance Report for fiscal 2021 is availableon the website of the Bank at www.ICICIbank.com and on the websites of the stock exchangesi.e. BSE Limited at www.bseindia.com and National Stock Exchange of India Limited atwww.nseindia.com.

Maintenance of Cost Records

Being a Banking Company the Bank is not required to maintain costrecords as specified by the Central Government under Section 148(1) of the Companies Act2013.

Reporting of Frauds by Auditors

During the year under review there were no instances of fraud reportedby the statutory auditors branch auditors and secretarial auditor under Section 143(12)of the Companies Act 2013 to the Audit Committee or the Board of Directors.

PERSONNEL

The statement containing particulars of employees as required underSection 197(12) of the Companies Act 2013 read with Rule 5(2) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 is given in an Annexureand forms part of this report. In terms of Section 136(1) of the Companies Act 2013 theannual report and the financial statements are being sent to the Members excluding theaforesaid Annexure. The Annexure is available for inspection and any Member interested inobtaining a copy of the Annexure may write to the Company Secretary of the Bank.

INTERNAL CONTROL AND ITS ADEQUACY

The Bank has adequate internal controls and processes in place withrespect to its financial statements which provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements. Thesecontrols and processes are driven through various policies procedures and certifications.The processes and controls are reviewed periodically. The Bank has a mechanism of testingthe controls at regular intervals for their design and operating effectiveness toascertain the reliability and authenticity of financial information.

DISCLOSURE UNDER FOREIGN EXCHANGE MANAGEMENT ACT 1999

The Bank has obtained a certificate from its statutory auditors that itis in compliance with the Foreign Exchange Management Act 1999 provisions with respect toinvestments made in its consolidated subsidiaries and associates during fiscal 2021.

RELATED PARTY TRANSACTIONS

The Bank has a Board-approved Group Arm's Length Policy which requirestransactions with the group companies to be at arm's length. All the related partytransactions between the Bank and its related parties entered during the year ended March31 2021 were on arm's length basis and were in the ordinary course of business. Therewere no related party transactions to be reported under section 188(1) of the CompaniesAct 2013 in Form No. AOC-2 pursuant to Rule 8(2) of the Companies (Accounts) Rules2014.

All related party transactions as required under Accounting StandardAS-18 are reported in note no. 50 of schedule 18 - Notes to Accounts of standalonefinancial statements and note no. 2 of schedule 18 - Notes to Accounts of consolidatedfinancial statements of the Bank.

The Bank has a Board-approved policy on Related Party Transactionswhich has been disclosed on the website of the Bank and can be viewed at(https://www.ICICIbank. com/aboutus/other-policies.page?#toptitle).

ANNUAL RETURN

The Annual Return in Form No. MGT-7 will be hosted on the website ofthe Bank at (https://www.ICICIbank.com/ aboutus/annual.html).

BUSINESS RESPONSIBILITY REPORTING

The Business Responsibility Report as stipulated under Regulation 34 ofthe Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 will be hosted on the Bank's website at(https://www.ICICIbank.com/aboutus/annual.html). Any Member interested in obtaining a copyof the Report may write to the Company Secretary of the Bank.

The Bank has been releasing the Environmental Social and GovernanceReport since fiscal 2020. The report for fiscal 2021 will be hosted on the Bank's websiteat (https://www.ICICIbank.com/aboutus/annual.html).

INTEGRATED REPORTING

The Bank has adopted the principles of the International IntegratedReporting Framework as developed by the International Integrated Reporting Council (IIRC)in its Annual Report since fiscal 2019. For accessing the Report for fiscal 2021 pleaserefer to the Integrated Report section of the Annual Report 2020-21.

RISK MANAGEMENT FRAMEWORK

The Bank's risk management framework is based on a clear understandingof various risks disciplined risk assessment and measurement procedures and continuousmonitoring. The Board of Directors has oversight on all the risks assumed by the Bank.Specific Committees have been constituted to facilitate focused oversight of variousrisks as follows:

• The Risk Committee of the Board inter alia reviews riskmanagement policies of the Bank pertaining to credit market liquidity operational andoutsourcing risks and business continuity management. The Committee also reviews the RiskAppetite and Enterprise Risk Management frameworks Internal Capital Adequacy AssessmentProcess (ICAAP) and stress testing. The stress testing framework includes a range ofBank-specific market (systemic) and combined scenarios. The ICAAP exercise covers thedomestic and overseas operations of the Bank banking subsidiaries and non-bankingsubsidiaries. The Committee reviews setting up of limits on any industry or countrymigration to the advanced approaches under Basel II and implementation of Basel Ill andthe activities of the Asset Liability Management Committee. The Committee reviews thelevel and direction of major risks pertaining to credit market liquidity operationaIreputation technology information security compliance group and capital at risk as apart of the risk dashboard. In addition the Committee has oversight on risks ofsubsidiaries covered under the Group Risk Management Framework. The Risk Committee alsoreviews the Liquidity Contingency Plan for the Bank and the various thresholds set out inthe Plan.

• The Credit Committee of the Board apart from sanctioning creditproposals based on the Bank's credit approval authorisation framework reviewsdevelopments in key industrial sectors (along with exposure to these sectors) the Bank'sexposure to large borrower accounts and borrower groups. The Credit Committee also reviewsmajor credit portfolios non-performing loans accounts under watch overdues incrementalsanctions etc.

• The Audit Committee of the Board provides direction to andmonitors the quality of the internal audit function oversees the financial reportingprocess and also monitors compliance with inspection and audit reports of RBI otherregulators and statutory auditors.

• The Asset Liability Management Committee provides guidance formanagement of liquidity of the overall Bank and management of interest rate risk in thebanking book within the broad parameters laid down by the Board of Directors/RiskCommittee.

Summaries of reviews conducted by these Committees are reported to theBoard on a regular basis.

Policies approved from time to time by the Board ofDirectors/Committees of the Board form the governing framework for each type of risk. Thebusiness activities are undertaken within this policy framework. Independent groups andsubgroups have been constituted across the Bank to facilitate independent evaluationmonitoring and reporting of various risks. These groups function independently of thebusiness groups/subgroups.

The Bank has dedicated groups namely the Risk Management GroupCompliance Group Corporate Legal Group Internal Audit Group and the Financial CrimePrevention & Reputation Risk Management Group with a mandate to identify assess andmonitor all of the Bank's principal risks in accordance with well-defined policies andprocedures. The Risk Management Group is further organised into Credit Risk ManagementGroup Market Risk Management Group Operational Risk Management Group and InformationSecurity Group. The Chief Risk Officer (CRO) reports to the Risk Committee constituted bythe Board which reviews risk management policies of the Bank. The CRO for administrativepurposes reports to an Executive Director in the Bank. The above mentioned groups areindependent of all business operations and coordinate with representatives of the businessunits to implement the Bank's risk management policies and methodologies.

The Internal Audit Group acts as an independent entity and isresponsible to evaluate and provide objective assurance on the effectiveness of internalcontrols risk management and governance processes within the Bank and suggestimprovements. The Internal Audit Group maintains appropriately qualified personnel tofulfill its responsibilities. The Internal Audit and Compliance groups are responsible tothe Audit Committee of the Board.

INFORMATION REQUIRED UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE(PREVENTION PROHIBITION & REDRESSAL) ACT 2013

The Bank has a policy against sexual harassment and a formal processfor dealing with complaints of harassment or discrimination. The said policy is in linewith the requirements of 'The Sexual Harassment of Women at the Workplace (PreventionProhibition & Redressal) Act 2013'. The Bank has complied with provisions relating tothe constitution of Internal Complaints Committee under the said Act.

Pursuant to the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 the details pertaining tonumber of complaints during the year has been provided below:

a. number of complaints filed during the financial year: 33

b. number of complaints disposed of during the financial year: 33

c. number of complaints pending1 at end of the financialyear: Nil

 

1 All complaints received during fiscal 2021 have been closed withinthe applicable turnaround time (90 days).

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