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IDBI Bank Ltd.

BSE: 500116 Sector: Financials
NSE: IDBI ISIN Code: INE008A01015
BSE 00:00 | 09 Dec 48.65 -0.25






NSE 00:00 | 09 Dec 48.65 -0.25






OPEN 49.35
VOLUME 824343
52-Week high 65.25
52-Week low 26.35
P/E 25.34
Mkt Cap.(Rs cr) 52,310
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 49.35
CLOSE 48.90
VOLUME 824343
52-Week high 65.25
52-Week low 26.35
P/E 25.34
Mkt Cap.(Rs cr) 52,310
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IDBI Bank Ltd. (IDBI) - Director Report

Company director report

Your Bank's Board of Directors is pleased to present the Report on its Business andOperations for the 3nancial year ended March 31 2021.

The Financial Year (FY) 2020-21 was characterised by unprecedented challenges to livesand livelihood posed by the COVID-19 pandemic. The socio-economic consequences of thepandemic were more severe than initially anticipated due to the uncertainty regarding itspath duration and magnitude. Thiswarrantedpolicyresponseatanunprecedentedscalefromgovernments and central banks globally. The Indian economy also experienced pandemic-ledfallout with widespread economic impact. The banking sector like most sectorsencountered challenges and uncertainties caused due to the economic disruptions. Howeverdeployment of timely and collaborative policy interventions by the Government of India(GoI) and the Reserve Bank of India (RBI) paved the way for gradual revival of theeconomic activities. The policy response was directed towards stabilising the economy andputting in place necessary enablers to kick-start the economy on a sustainable basis. Thiswas evidenced by the improvement in

India's economic performance in Q3 and Q4 of FY 2020-21 which saw positive GrossDomestic Product (GDP) growth of 0.5% and 1.6% respectively. However two consecutivequarters of decline in Q1 and Q2 of FY 2020-21 weighed down the overall growth performancewith GDP registering a contraction of 7.3% in FY 2020-21. While the 3scal and monetarysupport extended by the policymakers aided in minimising the impact of the pandemic on keysectors it was only in the second half of the year that there was an uptick in economicactivity on the back of rolling back of restrictions. As the economy is yet to reach itspotential growth trajectory it is imperative to view the performance of your Bank in thiscontext.

Financial Highlights

As on March 31 2021 your Bank's aggregate deposits and advances touched Rs.230898crore and Rs.128150 crore respectively. Your Bank's business highlights for the periodunder review are presented in Table 1.

Table 1: Key Financials

Ason Ason
March 31 2020 March 31 2021
Capital 10381 10752
Reserves & Surplus 23644 26059
Deposits 222424 230898
Borrowings 36749 15908
Other Liabilities & Provisions 6730 14147
Total Liabilities 299928 297764
Cash & Balances with RBI 10539 13013
Balances with Banks & Money at Call & Short Notice 19892 22209
Investments 81780 81023
Advances 129842 128150
Fixed & Other Assets 57875 53369
Total Assets 299928 297764
For the period 2019-20 2020-21
Total Income 25295 24557
Total Expenses (other than provisions) 20183 17466
Provisions (other than tax) 14079 4722
Profit/ (Loss) Before Tax (8967) 2369
Provision for Tax 3920 1009
Profit/ (Loss) After Tax (12887) 1359

During the year under review your Bank's total income amounted to Rs.24557 crorecomprising interest income of Rs.19932 crore and other income of Rs.4625 crore. Interestexpenses stood at Rs.11414 crore and operational expenses at Rs.6052 crore accountingfor total expenditure (excluding provisions and contingencies) of `17466 crore.

Total provisioning of your Bank declined for the year due to reversal of provisioningfor Non-Performing Assets (NPAs). The provisions include Rs.2395 crore towards provisionsfor NPAs bad debts written-off and investments. The increase in Net Interest Income(NII) other income and reduction in operating expenses and provisions enabled the Bank topost a net Profit of Rs.1359 crore during FY 2020-21.

While the Earnings per Share (EPS) during the year was

Rs.1.30 the Book Value per Share (excluding intangible assets and Deferred Tax Asset(DTA) ) stood at Rs.14.83 as at end-March 2021. Given that the ‘second wave'signi3cantly increased the number of COVID-19 cases in India and as the outlook is likelyto remain uncertain for a considerable duration the Board of Directors of the Bank atits meeting held on May 03 2021 considered it prudent to not propose dividend forthe 3nancial year ended March 31 2021.

Report on the Performance and Financial Position of Subsidiaries and Joint Ventureincluded in the Consolidated Financial Statement as on March 31 2021

Net Assets i.e. total assets minus total liabilities Share in Profit or loss
Name of the Entity As % of Consolidated Net Assets Amount (in Rs.crore) As % of Consolidated Profit or Loss Amount (in Rs.crore)
Parent : IDBI Bank Ltd. 97.54% 36811.07 89.79% 1359.46
Indian :
1. IDBI Capital Markets & Securities Ltd. 0.83% 312.76 0.50% 7.51
2. IDBI Intech Ltd. 0.24% 90.06 0.80% 12.07
3. IDBI Asset Management Ltd. 0.30% 113.38 0.30% 4.53
4. IDBI MF Trustee Co. Ltd. 0.00% 1.61 0.00% 0.03
5. IDBI Trusteeship Services Ltd. 0.66% 249.41 2.65% 40.09
Foreign : NA NA NA NA
Minority Interest in all Subsidiaries 0.30% 112.98 1.20% 18.16
Associates (Investment as per the equity method)#
1. Biotech Consortium India Ltd. NA NA 0.00% 0.00
2. National Securities Depository Ltd. NA NA 5.51% 83.46
3. North Eastern Development Finance Corporation NA NA 0.00% 0.00
4. Pondicherry Industrial Promotion Development & NA NA NA NA
Investment Corporation Ltd. ( PIPDICL)
Foreign : NA NA NA NA
Joint Ventures (as per proportionate consolidation/investment as per the equity method)
1. Ageas Federal Life Insurance Company Ltd. 0.69% 259.65 2.19% 33.22
Foreign NA NA NA NA
Total 100.56% 37950.91 100.54% 1522.22
Elimination -0.56% -209.89 -0.54% -8.25
Net Total 100.00% 37741.02 100.00% 1513.97


Note: None of the above subsidiaries have any subsidiary.

# - The financials of four Associates viz. National Securities DepositoryLtd.(26.10%) North Eastern Development Finance Corporation Ltd. (25%) Biotech ConsortiumIndia Ltd. (27.93%) and Pondicherry Industrial Promotion Development & InvestmentCorporation Ltd. (21.14%) are not considered for consolidation on account of non-receiptof Financial Statements for Q4 of FY 2020-21 impact of which on the ConsolidatedFinancial Statements is not material. In case of Pondicherry Industrial PromotionDevelopment & Investment Corporation Ltd. the investment in the said company has beenwritten down to `1.

Material changes and commitments if any affecting 3nancial position of IDBI Bankwhich have occurred during the end of 3nancial year and the date of Board Report.

There were no material changes and commitments affecting the 3nancial position of theBank which occurred between the end of the 3nancial year of the Bank i.e. March 31 2021and the date of the Directors' Report.

The details in respect of adequacy of internal 3nancial controls with reference to the3nancial statements.

According to Section 143(3)(i) of the Companies Act 2013 with effect from FY 2015-16the report of the Statutory Auditors should state whether the Bank has adequate InternalFinancial Controls (IFCs) system in place and the operating effectiveness of suchcontrols in the context of the 3nancial statements. IFCs as referred to in Section143(3)(i) of the Companies Act relate to Internal Financial Controls Over FinancialReporting (IFCO-FR). The Bank's Management is responsible for establishing and maintaininginternal 3nancial controls based on the internal control over 3nancial reporting criteriaestablished by the Bank considering the essential components of internal control stated inthe Guidance Note on Audit of IFCO-FR issued by the Institute of Chartered Accountants ofIndia (ICAI). These responsibilities include the design implementation and maintenance ofadequate internal 3nancial controls that were operating effectively for ensuring theorderly and ef3cient conduct of its business including adherence to the Bank's policiessafeguarding of its assets prevention and detection of frauds and errors accuracy andcompleteness of the accounting records and timely preparation of reliable 3nancialinformation as required under the Companies Act 2013 the Banking Regulation Act 1949and the guidelines issued by the RBI. Your Bank has put in place an IFCO-FR Framework forevaluation of the existing internal 3nancial controls system and appointed a Consultantfor validating the compliances with respect to the documentation certi3cation reportingprocess of the controls across all business verticals/ departments and ascertaining theadequacy and effectiveness of the controls in the Bank in all material respects withrespect to 3nancial reporting.

During FY 2020-21 the said Consultant has submitted the Internal Compliance Certi3catefor the quarters ended June 2020 to December 2020 after carrying out the testing andvalidation of all the underlying processes as per the Bank's IFCO-FR framework. TheConsultant reviewed the compliance of 570 Risk Control Matrices as on December 31 2020and reported 3ve open issues for further compliance. The departments concerned are workingclosely for addressing the open issues.

Details of signi3cant changes (i.e. change of 25% or more as compared to the immediateprevious 3nancial year) in key 3nancial ratios along with a detailed explanation thereofincluding:

Particulars 2019-20 2020-21 Comments
Net Interest Margin (%) 2.61% 3.38% Interest Income increased due to increase in interest on income tax refund by `943 crore to Rs.1313 crore for FY 2020-21 as against Rs.370 crore for FY 2019-20 and decrease in interest expenses by Rs.2433 crore.
Return on Assets -4.26% 0.46% Net Profit for FY 2020-21 is Rs.1359 crore as compared to loss of Rs.12887 crore in FY 2019-20.
Net NPA% to Net Advances 4.19% 1.97% Net NPA decreased by Rs.2920 crore.
Debt to Equity ratio 3.16 1.00 Borrowings made in India and outside India signi3cantly decreased by Rs.20841 crore and Net Worth improved by Rs.4319 crore.

Capital Adequacy

In adherence to the Pillar 1 guidelines of the RBI under Basel III framework your Bankcomputes the regulatory capital requirement for credit market and operational risks on aquarterly basis. As per the Basel guidelines banks in India are mandated to maintainCapital Conservation Buffer (CCB) in a phased manner commencing from March 31 2016. Inline with the RBI's noti3cation dated September 29 2020 whereby the transitionalarrangements of Basel III capital regulations were reviewed the applicable CCB for March31 2021 was stipulated at 1.875%. Accordingly the minimum regulatory requirement of ‘TotalCapital + CCB' was 10.875% as on March 31 2021. Your Bank's ‘Total Capital +CCB' ratio was 15.59% as on March 31 2021. Similarly your Bank's


‘Common Equity Tier 1 (CET1)+CCB' ratio was 13.06% as against the regulatoryrequirement of 7.375%. Your Bank's ‘Tier 1+CCB' ratio stood at 13.06% as onMarch 31 2021 as against the regulatory requirement of 8.875%. Your Bank's Leverage Ratioas on March 31 2021 was 6.08% against the applicable minimum regulatory requirement of3.50%. Your Bank has a Board-approved policy on Internal Capital Adequacy AssessmentProcess (ICAAP) in line with the Pillar 2 norms of the Basel III framework. This policyenables your

Bank to internally assess and quantify those risks which are not covered under Pillar 1as well as to develop appropriate strategies to manage and mitigate risks under normal andstressed conditions.

Your Bank has also put in place a comprehensive stress testing framework in line withthe RBI guidelines. The stress testing framework enables your Bank to assess itsperformance under exceptional but plausible events and facilitates appropriate proactivestrategies to meet unforeseen contingencies. The framework also includes scenario analysisand reverse stress testing. Scenario analysis enables the Bank to understand the impact ofadverse macroeconomic indicators on the capital and Profitability of the Bank. Your Bankalso separately created scenarios to make a preliminary assessment of the detrimentalimpact of the COVID-19 pandemic on the various sectors to which the Bank has exposurewhich in turn will adversely affect the Bank's Profitability. The mechanism of reversestress testing has been added to the framework to 3nd the level of stress which mayadversely impact the capital to take it to a pre-determined 3oor level.

Your Bank has adopted a Disclosure Policy in accordance with the Pillar 3 requirementsunder the Basel norms. Accordingly disclosures as at the end of each quarter are hostedon your Bank's website thereby exhibiting high degree of transparency. Your Bank followsthe Standardised Approach under Credit Risk for computation of capital charge. Your Bankfollows Basic Indicator Approach (BIA) to compute regulatory capital charge forOperational Risk. A comprehensive set of Key Risk Indicators (KRIs) and Risk & ControlSelf-Assessment (RCSA) framework have been rolled out across different business segmentsfor ensuring effective control mechanism. For Market Risk your Bank uses StandardisedMeasurement Method (SMM) to compute regulatory capital requirements.

Quali3ed Institutional Placement (QIP)

Your Bank had raised Equity Capital amounting to Rs.1435.18 crore through the Quali3edInstitutional Placement (QIP) route in Q3 of FY 2020-21. The Bank raised capital for the3rst time after a gap of 25 years since its maiden Initial Public Offering (IPO) in 1995.Under this QIP 44 Quali3ed Institutional Buyers (QIB) participated and were issued equityshares of 371808177 (nos.) at Rs.10/- each fully paid up with a share premium ofRs.28.60 per share aggregating to `1435.18 crore.

Business Strategy

FY 2020-21 commenced in the midst of the 3rst phase of the nationwide lockdown imposedby the GoI as a preventive measure to mitigate the spread of the coronavirus. Theimmediate imperative before the Bank as a provider of essential service was to ensureuninterrupted banking services without compromising on the safety measures for bothcustomers and employees. Apart from ensuring that most branches were functional withproper COVID-19 protocols for providing in-person servicing where essential your Bankredirected key business processing activities to alternate locations within the countryfor uninterrupted and time-bound processing of customer requests. Furthermore customerswere also encouraged to use digital and other alternate channels to carry out theirbanking transactions. DuringtheyearyourBankcontinuedtopursuearisk-calibrated businessstrategy to ensure stable and Profitable growth especially in view of the challengingoperating environment. In tandem with its overall business strategy of re-orienting itselfas a retail-centric bank your Bank augmented its retail asset book with increased focuson Structured Retail Assets (SRA) Agri and MSME loan portfolio while simultaneouslylimiting its corporate exposure. On the liability side your Bank continued to boost theshare of its low-cost deposit base i.e. CASA deposits to the total deposits while reducingreliance on bulk term deposits. Consequent upon the majority stake acquisition by the LifeInsurance Corporation of India (LIC) the Bank has been accelerating its efforts torealise the full potential arising out of business synergies with the LIC. Apart fromaugmenting income the Bank also continued to make concerted efforts to rationalise itsexpenses in order to ensure a robust bottom-line. Recognising the importance of assetquality in ensuring a Profitable and sustained turnaround your Bank has been aggressivelypursuing recovery and upgradation of its delinquent asset portfolio through legal andregulatory routes in a bid to resolve the existing stress in its asset book. Your Bank hasalso set up dedicated teams to drive recovery in corporate and retail portfolio.Additionally as a proactive measure your Bank has also strengthened its creditmonitoring mechanism in order to closely monitor the onset of stress in its portfolio andto prevent slippages in asset quality. These initiatives have aided in reducing incipientstress containing slippage and improving credit quality of your Bank.

Your Bank has also undertaken measures to strengthen its risk management and corporategovernance framework. In addition to this your Bank also continued to promote a strongcompliance culture by adhering to key laws rules regulations internal policies &procedures and various codes of conduct to maintain its reputation and win the trust ofcustomers investors and regulators. Your Bank has always been committed towards itsvision of emerging as a trusted and preferred bank in India's banking space. Towards thisend your Bank has adopted a customer-centric policy to focus on enhancing customerdelight and experience. Your Bank has also been leveraging its data analytics capabilitiesto introduce a wide-range of customised products and services to cater to the emergingcustomer preferences. Furthermore your Bank has continued to invest in technologicalinnovation and up-gradation in order to ensure better customer service and experience.Your Bank has also remained committed towards the GoI's Enhanced Access and ServiceExcellence (EASE) to ensure ease of banking.

These strategic measures were supplemented by a number of structural and systemicimprovements which paved the way for a smooth and successful turnaround process.

Key Business Initiatives

Your Bank as a customer-centric bank offers an entire gamut of banking and investmentproducts and services to cater to the emerging 3nancial requirements of its customers. Inorder to minimise the pandemic-led disruptions your Bank has been ramping up its digitalcapabilities by embracing technological innovation and also by upgrading and augmentingits software/ hardware capabilities. While the Bank continued to serve its customersthrough its network of 1886 branches 3388 ATMs and 58 e-lounges the strengthening ofits digital infrastructure enabled your Bank to offer a number of digital and contactlesssolutions to its customers in a safe and secure manner thereby ensuring last-mileconnectivity to its customers. This proactive measure by your Bank also enabled it toremain connected with its customers and provide uninterrupted and seamless bankingservices without diluting the safety measures and social-distancing norms. In response tothe evolving customer preferences and requirements your Bank introduced a number ofinnovative products and services viz. WhatsApp banking online account opening facilitythrough mobile app – ‘I Quick' Account Opening/ Re-KYC through Video KYC(VAO) virtual debit card doorstep banking facility for senior citizens anddifferently-abled persons state-of-the-art Loan Processing System for Agri and MSMEloans among others to ensure ease of banking and customer delight. Your Bank continuedto remain committed towards supporting the priority sectors by signi3cantly contributingto Priority Sector Lending (PSL) thereby also adhering to the RBI's mandate. Your Bank isproactively promoting the national agenda of 3nancial inclusion with interventions inthree key areas viz. ensuring access to appropriate 3nancial products and services by thevulnerable sections of the society at an affordable cost in a fair and transparent mannermaking extensive use of technology to connect with customers and enhancing customerawareness through 3nancial literacy. Your Bank has also been engaging its network ofBusiness Correspondents (BCs)/ Business Facilitators (BFs) in an effort to increasepenetration in rural and semi-urban areas. This has aided in furthering the 3nancialinclusion agenda as also providing an added impetus to its PSL business. Your Bank hasbeen leveraging the business synergies with the LIC by offering a wide array ofinnovative specialised/ customised products and services to the employees agents andsubsidiaries of the LIC for meeting their banking and investment requirements.

Your Bank offers a wide range of Trade Finance (TF) products and services to its largecorporate mid corporate and retail customers. As a part of its transformation plan yourBank has transitioned to a centralised trade processing system which operates on ahub-and-spoke model at three major metro centres viz. Mumbai Chennai and Delhi andfacilitates standardised processing ef3cient communication and faster turnaround time.Your Bank as an Authorised Dealer (AD) Category I bank has 39 dedicated TF centreswhich are authorised to handle all types of foreign exchange transactions. Your Bank actsas an agent for Central Government and State Governments to manage their receipts andpayments. Your Bank is authorised to collect Central Government Taxes State Receipts inselect States and Union Territories. Your Bank is also authorised by the Government tooffer Small Savings Schemes through its branches and disburse Central Civil Defence andRailway Pensions. Your Bank also provides 24x7 internet banking facilities for taxpayments. Your Bank has enabled online collection of Employees' Provident FundOrganisation (EPFO) and Employees' State Insurance Corporation (ESIC) dues. Your Bank iscommitted towards providing state-of-the-art Cash Management Services (CMS) to helpcorporates accelerate their collections handle their bulk payments ef3ciently andsmoothen their 3ow of funds. Your Bank offers a comprehensive range of CMS collectionspayment and transaction banking solutions to suit the needs of corporates so that theyhave a complete control of their cash position.

Your Bank is setting up a dedicated Financial Institutions Group (FIG) to focus ondomestic and foreign Financial Institutions (FIs) for offering various products/ servicesof the Bank. This group shall act as a coverage group for offering products/ servicesrelated to trade cash management services payments treasury forex derivatives moneymarket & capital markets and retail banking. The FIG shall also engage with the FIsfor increasing the breadth of coverage and deepen the FI business.

To address the economic fallout of the pandemic your Bank undertook a number ofmeasures such as providing moratorium to all the eligible customers extending additionalfunding by way of Working Capital Term loan to MSMEs/ business enterprises and individualborrowers launching a Credit Guarantee Scheme for Subordinated Debt (CGSSD) to providepersonal loans to the promoters of the stressed MSMEs introducing Loan Resolution Planfor borrowers having 3nancial stress on account of COVID-19 among other measures to helpits customers.

Your Bank has a dedicated Centre of Excellence for Data Analytics which works acrossbusiness areas on projects related to business analytics decision strategies forecastingmodels machine learning and rule engines. Your Bank continues to leverage technology andanalytics for deeper insights into customer on-boarding micro-segmentation of customersbehavioural pattern smooth and frictionless transaction spending behaviour riskportfolio etc. Data analytics and Machine Learning (ML) have enabled your Bank to getbetter at acquiring serving and retaining customers by offering analytics-driven nextbest products. Your Bank is leveraging these technologies to maximise its digital impactand make its digital campaigns more intelligent sharp and cost-ef3cient. The detaileddescription of the Bank's initiatives undertaken during the year is outlined in theManagement Discussion and Analysis section of the Annual Report.

Impact of the COVID-19 pandemic on the Bank's business

The SARS-CoV2 virus responsible for the COVID-19 has resulted in a signi3cant declineand volatility in global and Indian markets and economic activity. Implementation oflockdown and extensions has resulted in disruptions of business and common life. The Bankis gearing itself on all fronts to meet the challenges imposed by the COVID-19 pandemicincluding the likelihood of rise in customer defaults and an increase in provisioningrequirements. The second wave of the COVID-19 from mid-March 2021 is again threatening todisrupt the economic activities in many states where the pandemic is more severe withpossibilities of lockdown getting extended in case the situation does not improve. TheBank's capital and liquidity position is strong and would continue to be the focus areafor the Bank during this period.

Board of Directors

Your Bank's Board of Directors is broad-based and its constitution is governed by theprovisions of the Banking Regulation Act 1949 the Companies Act 2013 the Articles ofAssociation of the Bank and the requirements of corporate governance as envisaged in theSEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (LODRRegulations). The Board functions directly as well as through various Board levelcommittees constituted to provide focussed governance in the important functional areas ofthe Bank. As per the Articles of Association the Board of Directors shall not be lessthan three and more than 3fteen members consisting of the Chairman of the LIC asNon-Executive Chairman of the Bank MD & CEO two DMDs one Of3cial Nominee Directorof the LIC two Nominee Directors of GoI and eight Independent Directors including oneWoman Independent Director.

As on March 31 2021 the Board comprised fourteen Directors viz. Shri M. R. KumarNon-Executive Chairman Shri Rakesh Sharma MD & CEO Shri Samuel Joseph Jebaraj andShri Suresh Khatanhar DMDs as Whole Time Directors; Ms. Meera Swarup and Shri AnshumanSharma as Government Nominee Directors and Shri Rajesh Kandwal LIC Nominee Director asNon-Executive Directors; Shri Gyan Prakash Joshi Shri Bhuwanchandra B. Joshi ShriSamaresh Parida Shri N. Jambunathan Shri Deepak Singhal Shri Sanjay Gokuldas Kallapurand Smt. P. V. Bharathi as Independent Directors. The present strength of fourteenDirectors on the Board meets the requirement provided under Article 114(a) of the Articlesof Association.

Apex Committees

The Board has a total of thirteen committees to oversee various functional areas ofyour Bank's business and operations. The Board committees include Audit Committee of theBoard Executive Committee Nomination & Remuneration Committee Stakeholders'Relationship Committee HR Steering Committee Frauds Monitoring Committee RecoveryReview Committee Risk Management Committee Corporate Social Responsibility CommitteeNon-Cooperative Borrowers' Review Committee Customer Service Committee WilfulDefaulters' Review Committee and Information Technology Strategy Committee.

Corporate Governance

Your Bank is committed to adopt the best corporate governance practices. It believesthat effective corporate governance is not just a requirement for regulatory compliancebut also a facilitator for excellence in governance including enhancement of stakeholders'value. The details of your Bank's corporate governance practices are given in this AnnualReport as a separate section under Corporate Governance Report.

Business Responsibility Report

Securities and Exchange Board of India (SEBI) vide Gazette Noti3cation dated December26 2019 amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations2015. As per the amendment the Annual Report of the top one thousand listed entitiesbased on market capitalisation must include Business Responsibility Report (BRR). The BRReport should describe initiatives taken by the listed entity from an environmentalsocial and governance perspective. The Bank's Business Responsibility Report has beenhosted on the website of the Bank (

Statement under Section 134 of the Companies Act 2013 read with Rule 5 of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014

There were no personnel in your Bank's service during the 3nancial year under reviewwho received remuneration of over Rs.1.02 crore annually. Besides there were no personnelin the service of the Bank for a part of the year who received remuneration in excess ofRs.8.50 lakh per month. Further there were no personnel employed throughout the 3nancialyear or part thereof who was in receipt of remuneration at a rate which in the aggregatewas in excess of that drawn by Managing Director & CEO or Deputy Managing Director ofthe Bank and who held by himself or along with his spouse and dependent children not lessthan 2% of the equity shares of the Bank.

Statement under Rule 5(2) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 for year ended March 31 2021 – Details of Top Ten Employees

Sr. No. Name Designation Annual Remuneration received (`) Nature of employment whether contractual or otherwise Quali3cations and experience of the employee Date of commencement of employment Age of such employee The last employment held by such employee before joining the company
1 Shri Ashok Kumar Gautam ED 7943711.67 Contractual MBA B.Sc. (Statistics) FRM Diploma in Treasury Diploma in Bank Management CAIIB Experience in IDBI Bank: 1 year 9 months 24-Jun-19 58 years 2 months Axis Bank
2 Ms. Sonali Subudhi Head Data Analytics 5207174.34 Contractual Masters in Statistics MBA - EPBM Experience in IDBI Bank: 1 year 9 months 24-Jun-19 41 years 10 months Johnson & Johnson Pvt. Ltd.
3 Shri Padmabhushan Bahadure Chief Technology Of3cer 5161007.34 Contractual B.E. Electronics Executive Senior Management Programme - Strategy Management P.G. Diploma in Supply Chain Management Executive P.G. Diploma in International Business Experience in IDBI Bank: 1 year 7 months 01-Aug-19 44 years 8 months SBI
4 Shri Badri Srinivasa Rao CGM 4625782.71 Employee B.E. M.B.A COBOL Certi3cate in IBM Main Frame PRAGYA (Hindi Quali3cation) Experience in IDBI Bank: 20 years 1 month 14-Feb-01 54 years 1 month M/s. Dredging Corporation of India Ltd.
5 Shri Naresha Chandra Baral GM 4525925.15 Employee B.E. D.B.M Advanced Diploma in Management Experience in IDBI Bank: 26 years 2 months 30-Jan-95 52 years 9 months Indian Charge Chrome Ltd.
6 Shri Manishi Chatterjee GM 4125557.06 Employee B.Sc. M.Sc. Prevention of Cyber Crimes and Fraud Management CAIIB Experience in IDBI Bank: 32 years 4 months 01-Nov-88 56 years 9 months Birla Institute of Technology
7 Narayanamurthy Vishnubhotla ED 4115778.73 Employee B.Com (Hons) M.A. M.F.M. Certi3cation Programme in IT and Cyber Security for Senior Management CAIIB Experience in IDBI Bank: 32 years 7 months 02-Aug-88 57 years 7 months Tata Share Registry Ltd.
8 Shri Pradip Kumar Das ED 3946454.75 Employee B.Sc. M.B.A NCFM - AMFI Mutual Fund (Advisors) Module Certi3cation Programme in IT and Cyber Security for Senior Management CAIIB Experience in IDBI Bank: 20 years 2 months 23-Jan-01 59 years Central Bank of India
9 Shri Sunit Sarkar CGM 3937400.29 Employee B. Tech. Post Graduate Diploma in Business Management I.C.W.A. CAIIB Experience in IDBI Bank: 27 years 6 months 01-Sep-93 54 years 7 months ESAB India Ltd.
10 Shri Iswar Padhan CGM 3912470.55 Employee B.A. M.A. CAIIB JAIIB Experience in IDBI Bank: 23 years 3 months 03-Dec-97 52 years 8 months National Productivity Council


1. The percentage of shares held by such employee if any is negligible.

2. None of such employee is a relative of any director or manager of the Bank.

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

a) Conservation of Energy

Your Bank has taken the following measures towards conservation of energy:

_ t_ $POWFOUJPOBM_MJHIU_yYUVSFT_IBWF_CFFO_SFQMBDFE_ with energy ef3cient LED light3xtures/ lamps/ tubes to save power consumption at the Bank's Head Of3ce building atMumbai as well as all other of3ce and residential buildings of the Bank.

_ t_ 5IF_ OFX_ TJHOBHFT_ PG_ UIF_ #BOL_T_ CSBODIFT_ are being 3tted with LED lights inplace of conventional power consuming light 3xtures.


_ -&%_ lights are being used in place of conventional 3uorescent/ PL lamps.

_ t_ 4PMBS_QBOFMT_IBWF_CFFO_JOTUBMMFE_GPS_DPNNPO_ lighting pumps etc. in the Bank'snew of3ce buildings as well as residential buildings developed by NBCC (India) Ltd. at NewDelhi and new residential buildings at the Jawaharlal Nehru Institute of Banking andFinance (JNIBF)

Hyderabad. The Bank has also been considering LED light 3xtures for furnishing of newof3ce premises.

_ t_ 8BUFS_IBSWFTUJOH_GBDJMJUZ_IBT_BMTP_CFFO_QSPWJEFE_ in new residential buildingsconstructed at the JNIBF Hyderabad.

b) Technology Absorption

Your Bank accords top priority to technology-led banking. Your Bank believes thatdigital is the way forward and tech-led initiatives would empower its customers as well asits business functions. It would also take the Bank forward in addressing the challengesof the future. Your Bank adopted a few noteworthy technology-driven reforms such as makingof3cial e-mail available on-the-go to the employees and providing Virtual Private Network(VPN)/ Virtual Desktop Infrastructure (VDI) based access to the Bank's systems adaptingto e-tendering and video conference-based bidding procedures up-gradation of the SecurityOperations Centre (SOC) at the Data Centre (DC) location and setup of a SOC at theDisaster Recovery (DR) location in Chennai implementation of a Domain-based MessageAuthentication Reporting and Conformance (DMARC) analytics platform implementation ofHoney Pot solution implementation of an Enterprise Network Monitoring Solution (ENMS)implementation of satellite/ GPS based Network Time Protocol (NTP) solution andupgradation of the Bank's ATM switch software version introduction of Video KYC AccountOpening (VAO) I-Quick mobile application for account opening roll-out of WhatsAppBanking facility launch of a fully digitised Loan Processing System (LPS) for variousMSME and Agri loan products and implementation of Automated Data Flow (ADF) application.Under the Enterprise Data Warehouse project (EDW) your Bank has built various analytical/predictive models for Non-Performing Asset (NPA) prediction for various loan productschurn prediction for portfolio of Agri/ MSME current/ saving account cross-sell/ up-sellmodel customer pro3ling and segmentation etc.

Your Bank is in advanced stage of implementation of many technology-based solutions andenhancements which include implementation of Voice Onetime Password (OTP) and softwaretoken-based authentication as an alternate to SMS-based OTP implementation of anApplication Performance Monitoring solution implementing Application ProgrammingInterface Management (APIM) solution implementation of chat bot facility for 24x7customer assistance and exploring the usage of new age security technologies such asSecurity Orchestration Automation & Response (SOAR) Network Behaviour AnomalyDetection (NBAD) Packet Capture (PCAP) User & Entity Behaviour Analytics (UEBA)& Threat Intelligence Platform (TIP) for building a Next Generation SOC at both DC& DR locations.

Details of other initiatives taken in the Information Technology space have beenprovided in the Management Discussion and Analysis section of this Annual Report.

c) Foreign Exchange Earnings and Outgo

During the year the total foreign exchange earned by the Bank was Rs.51.36 crore(excluding foreign currency cash 3ows in derivatives and foreign currency exchangetransactions) and the total foreign exchange outgo was Rs.36.23 crore towards theoperating and capital expenditure requirements.

Exit from the RBI's Prompt Corrective Action (PCA) framework

Your Bank has provided a commitment to the RBI that it would comply with the norms ofminimum regulatory capital Net Non-Performing Asset (NPA) and Leverage ratio on anon-going basis and has apprised the RBI of the structural and systemic improvements thatit has put in place which would help the Bank in continuing to meet these commitments.Based on the commitment and the Bank's reported Capital To Risk Weighted Asset Ratio(CRAR) at 14.47% Common Equity Tier 1 (CET1) at 12.22% Net NPA at 1.94% and LeverageRatio at 5.71% as at end-December 2020 which were not in breach of the PCA framework theRBI vide its letter dated March 10 2021 has decided to lift the restrictions imposed onthe Bank under the PCA framework subject to certain conditions and continuous monitoring.

Directors' Responsibility Statement

The Board of Directors hereby declares and con3rms that:

a. In the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;

b. The Directors had selected such accounting policies and applied them consistentlyand made judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Bank at the end of the 3nancial year and of theProfit and loss of the Bank for that period;

c. The Directors had taken proper and suf3cient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the Bank and for preventing and detecting fraud and other irregularities;

d. The Directors had prepared the annual accounts on a going concern basis;

e. The Directors had laid down internal 3nancial controls to be followed by the Bankand that such internal 3nancial controls are adequate and were operating effectively; and

f. The Directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.


Your Bank's Board of Directors is sincerely grateful to the GoI the RBI all otherstatutory/ regulatory authorities and the LIC for their valuable cooperation and guidance.The Board also acknowledges with gratitude the co-operation and support received fromvarious State Governments and other banks/ 3nancial institutions. The Board thanks variousmultilateral institutions and international banks/ institutions for their support. TheBoard takes this opportunity to put on record its deep sense of gratitude to its loyalshareholders and customers for extending their support during the year and looks forwardto their continued association in the years ahead. The Board appreciates the sincere anddevoted services rendered by its entire staff and highly values their commitment towardsthe Bank.

[Suresh Khatanhar] [Samuel Joseph Jebaraj] [Rakesh Sharma]
Deputy Managing Director Deputy Managing Director Managing Director & CEO

Place: Mumbai

Date: May 03 2021