PNB Housing AR

Chang ng with time.
Grow ng with change.
35th Annual Report 2022-23

What’s
04-43
inside
CORPORATE OVERVIEW
04 Performance metrics
10 MD’s message
16 Operating environment 46-151
20 Strategic priorities STATUTORY REPORTS
24 Wide ranging existence 46 Management discussion and analysis
26 Human resource 64 Director’s report
30 Corporate social responsibility 89 Corporate governance report
35 Governance 117 Business responsibility and
38 Board of Directors sustainability report
42 Leadership team
43 Recognitions
152-361
FINANCIAL STATEMENTS
152 Standalone financial statement
258 Consolidated financial statement
Key highlights* About PNB Housing Finance
PNB Housing Finance Limited is among the
leading housing finance companies in India.
The Company is operating in the Indian housing
189
Branches & outreaches
finance industry for over three and half decades
through a pan-India network. Our product
portfolio consists of retail loans, which include
individual housing loans, loans against property,
non-residential premises loans, and corporate
loans. Our strong commitment to affordable
` 59,273
Loan asset
crore
housing financing is evident through our
dedicated segment, Roshni, which focuses on
providing loans for this purpose. With a focus on
customer needs and a commitment to delivering
value, PNB Housing Finance is a trusted provider
2,60,205
of housing finance solutions.
The Company is registered with National

Active loan customer base Housing Bank (NHB). It was incorporated under
the Companies Act, 1956 and commenced its
operations on November 11 1988. PNB Housing
1,690
Finance is promoted by Punjab National Bank
(PNB). The Company came out with a public
issue of equity shares in November 2016. Its
Employees equity shares are listed on National Stock
Exchange (NSE) and BSE Ltd. with effect from
7th November 2016.
*As on 31st March 2023
As one of the leading housing finance companies
in India, we have earned our position as the
fourth largest based on our impressive Loan
Assets as of 31st March 2023. We take pride
in offering a diverse range of loan products,
catering primarily to retail customers.
PNB Housing Finance has a robust pan-India

network of 189 branches/outreaches spanning
138 unique cities, which help its customers
avail financial services (loans and deposits)
seamlessly. Additionally, we operate our sales
and distribution function through our wholly-
owned subsidiary, PHFL Home Loans and
Services Limited, which allows us to deliver
exceptional customer service.
Chang ng with time.
Grow ng with change.
As the world rapidly evolves, witnessing changing
tastes, preferences, and emerging technologies, the
demand for affordable homes is on the rise. People are
swiftly making decisions to secure their dream homes,
driven by the desire for affordable housing solutions
that cater to their evolving needs. This trend reflects
the growing importance of providing accessible and
sustainable housing options to meet the demands of a
dynamic and diverse population.
Over time, housing finance companies have had to

adapt to the changing trends across economies. At
PNB Housing Finance, we recognise the importance
of adapting to these changing dynamics and offering
innovative solutions that meet the evolving needs of
our customers.
The evolution we are currently undergoing as a

Company represents a significant shift from our roots
as a conventional mortgage lender to a more agile
and innovative provider of financial services. Our
new brand theme underscores our commitment to
embracing change and transformation (inspired by the
metamorphosis of a butterfly) to stay relevant in today’s Early Growth Goals
fast-paced business environment and to better serve As we recognised the
the evolving needs of our customers. As we embody changing world, we
this dynamic approach to our work, we are poised to sowed the seeds for a
take on new challenges and opportunities and achieve better future.
even greater success in the future.
Advanced and Developed Unit
Leading Today
Dedicatedly embracing the
processes, we emerged as
a top-tier housing finance
company, ready to lead
and shape the future.
Potential Unfolds in
Preparation for Adulthood
Adapting to the changes,
we continued to focus
on internal strengthening
to propel ourselves to
greater heights.
Limitlessly Accommodating
Residences with Vast Appetite
We eagerly devoured the
trends around us to grow.
Our Inspiration
The transformation of a butterfly into
its dazzlingly coloured, winged form
is a process that unfolds gradually,
over time and with purpose. From
the moment it emerges from its
cocoon, the butterfly sets about
mastering the art of flight, honing
its skills and adapting its body to
best showcase the vibrant hues
that will help it thrive in the world.
This metamorphosis is not a mere
momentary shift but a deliberate and
inspiring evolution that reveals the
beauty and power of change.
PERFORMANCE METRICS
Redefining success
Loan disbursement* Loan asset^
While the past few (` in crore) (` in crore)
years have been
36,079 74,023
challenging, we 68,394
63,189
have demonstrated 57,895 59,273
remarkable resilience 18,626

by swiftly adapting to 11,246
14,965
10,445
the new normal and
continuing business
operations seamlessly FY19 FY20 FY21 FY22 FY23 FY19+ FY20 FY21 FY22 FY23
throughout the year. We *Retail segment contributed to 99% of the

total loan disbursement in FY23.
leveraged the power of
digitalisation to improve Retail loan asset^ Assets under management#^
operational efficiencies, (H in crore) (` in crore)
drive sales, enhance 56,137

53,595 51,189 55,471 84,722 84,169
50,520 75,403
customer experience 66,983
66,617
and strengthen
processes and
controls and gradually
refined each of our
performance metrics. FY19+ FY20 FY21 FY22 FY23 FY19+ FY20 FY21 FY22 FY23
#Retail segment contributed to 94% of the
total AUM in FY23, whereas corporate
segment contributed to 6%.
Deposit outstanding^ Net interest income

(` in crore) (` in crore)
17,684 17,248 2,308 2,323 2,346

16,356 17,003
2,063
14,315 1,869
FY19+ FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
+ Principal outstanding including principal overdue
Îndicates dates as on 31st March
04 35th Annual Report 2022-23

Corporate Overview Statutory Reports Financial Statements
Pre-provision operating profit Profit after tax

1,192
2,062 2,069 2,052 1,046
1,923
930
1,660 836
646
FY19 FY20 FY21 FY22 FY23

FY19 FY20 FY21 FY22 FY23
Gross non-performing assets^ Net non-performing assets^

(%) (%)
8.13
5.06
4.74
3.83 2.77 2.76
2.94
1.96
0.48
0.38
FY19+ FY20 FY21 FY22 FY23
FY19+ FY20 FY21 FY22 FY23
Spread Net interest margin

(%) (%)
2.77 2.81 3.73
2.35 2.46 3.16

2.12 2.93 2.98 2.80
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
+Principal outstanding including principal overdue

PNB Housing Finance Limited 05

PERFORMANCE METRICS
Gross interest margin OPEX to ATA

(%) (%)
4.06 0.76
3.34 0.65 0.64
3.21 3.33 3.16
0.55
0.50
Cost to Income Return on asset

(%) (%)
19.61 20.24 1.61 1.61

18.67
16.89
15.06 1.23 1.24
0.80
Return on equity Gearing^

(%) (%)
17.44 9.59
8.53
6.72
10.91
9.98 5.37
8.92 4.87
8.12

CRAR^ Earnings per share

(%) (`)
23.40 24.43 71.19

62.01
17.98 18.73 55.29
49.64
13.98 38.45
Book value Disbursement per average employee

(` /share) (H in crore)
652 24.88
586
530
451 476
11.80
9.61
7.11 7.99
Loan Asset per Pre provision Operating

employee (average) profit per employee (average)
51.05 1.41
1.33 1.31 1.32
43.31 42.99 41.12 1.18
38.04
FY19+ FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
+Principal outstanding including principal overdue


Early
Growth
In the enchanting world of
butterflies, the journey begins Goals
with a humble egg. It is a
delicate offering, carefully
placed on a leaf, carrying the
promise of transformation and
growth. Similar to this wondrous
cycle, PNB Housing Finance
embarked on its path towards
success, laying the foundation
for a remarkable journey ahead.

Recognising the ever- With a clear vision and

changing dynamics of the unwavering determination, we
world and the advancing nurtured the seed of growth
preferences of our customers, within our core. We have
we envisioned ourselves to embraced the opportunities and
become the leading housing challenges that lay ahead, fully
finance company of the aware that this was just the
future. Just like the butterfly’s beginning of an extraordinary
egg holds the potential for a expedition. Like a careful
smooth transformation, the gardener, our leadership team
management at our Company provided the necessary support
understood the significance of and resources, allowing the seed
this early growth phase. to germinate and flourish.

MANAGING DIRECTOR’S MESSAGE
Addressing the
growing needs I am deeply passionate about
empowering individuals and
of India
turning their dreams of home
ownership into a reality. It is my
firm belief that owning a home
is not just a financial milestone
but a transformative experience
that brings stability, security, and
a sense of pride to individuals
and their families. And that’s
where I, as the new Managing
Director of the organisation,
sowed the seed of our growth,
driven by a deep understanding
of the market opportunities and a
strong commitment to providing
accessible housing finance
solutions at reasonable prices to
millions of individuals across India.
- Girish Kousgi
Managing Director and CEO
DEAR SHAREHOLDERS, The affordable housing segment Ever since the inception of PNB
has emerged as the key driver of Housing Finance, we have been playing
I am thrilled to present our incremental growth, with a remarkable a pivotal role in making home ownership
35th Annual Report, arriving 44%* year-on-year increase in low- dreams a reality for countless Indians.
at a crucial juncture when ticket housing loan disbursements With our commitment to the vision of
the global economy continues during FY23. This growth is primarily ‘Housing for All’, we have positioned
witnessed in tier II cities and beyond, ourselves as a catalyst for growth in
to face umpteen challenges reflecting the expanding demand in the real estate sector. As we enter a
since FY22, such as persistent these regions. new phase of our growth, we proudly
inflation, geo-political conflicts Although the asset quality, as measured
showcase our achievements and the
and financial sector issues. In blueprint for seizing the opportunities
by the Gross Non-Performing Loan
that lie before us. Going ahead, our
the face of these formidable ratios, reached its peak in FY23, there
focus will be on driving quality growth,
obstacles, it is remarkable to has been a gradual and encouraging
enhancing profitability, maintaining
trend of improvement since then. This
observe India’s resilience as it positive development signifies the
asset quality and liquidity and ensuring
continues to outperform many the highest governance standards.
resilience and stability of the housing
developed economies. With its finance sector.
substantial young population Looking ahead, the future prospects for
and strong economic the housing finance industry appear
foundations, our country is promising. By FY30(E), outstanding
housing loans are expected to reach
primed for robust growth. an impressive value of H72 trillion,
Having gained a profound reflecting a compounded annual growth The affordable housing
rate (CAGR) of 14% over the period from segment has emerged
understanding of the real FY22 to FY30E*. This growth trajectory
estate sector, it is poised for is projected to enable the financing of
as the key driver of
a period of steady growth approximately 23 million new housing incremental growth,
following a decade-long units across India. with a remarkable 44%
contraction. The sector has These figures highlight the immense year-on-year increase in
already begun its journey potential and opportunities within the low-ticket housing loan
housing finance sector, particularly in disbursements during
towards recovery, which the affordable housing segment. As
is expected to persist and the industry continues to evolve and
FY23. This growth is
further advance. According expand, it is poised to play a vital role in primarily witnessed in
to CRISIL, housing demand is meeting the housing needs of millions tier II cities and beyond,
of individuals and contributing to the reflecting the expanding
projected to exceed the levels overall growth and development of
observed before the pandemic, the nation.
demand in these regions.
indicating the commencement
of a growth cycle.
*Source: ICICI Securities Report

MD’S MESSAGE (CONTD.)
OUR PERFORMANCE IN FY23

In FY23, our retail business experienced
an impressive surge, with 94% of our
loan book coming from this segment.
This highlights our strong presence and
success in the retail market.
I am elated to inform you that as a post-balance
Aligned with our retail-first strategy,
sheet development, we have successfully completed
the business comprised H14,750 crore the Rights Issue of J2,493.76 crore in May 2023.
of our total disbursements. As per
our stated policy, we reduced our
The issue was subscribed approximately 1.21 times.
corporate loan portfolio by 48.5% The capital raise will further strengthen our balance
through resolutions and accelerated
repayments. By the end of FY23, our
sheet and act as a catalyst for growth in FY2023-24
AUM reached H66,617 crore, with the as we see robust opportunities in the prime, as well
retail segment accounting for 94% of
the AUM. Disbursements for the year
as affordable housing finance segments.
amounted to H14,965 crore, representing
a 33% year-on-year growth.
Within the retail segment, we continued maintained a liquidity position of over ESS, ensures efficient coordination
to prioritise the development of H4,000 crore with a Liquidity Coverage and execution of customer requests
our affordable housing portfolio. Ratio of 112%. across multiple channels. Even during
We expanded our presence with 82 challenging times like the pandemic, our
branches dedicated to Roshni loans. robust digital infrastructure allowed us
HOW WE SERVE OUR
Leveraging our robust distribution to deliver relief packages seamlessly
network, underwriting capabilities, and CUSTOMERS TO MAKE IT AN
and by going paperless, prioritizing the
customer service, Roshni as a segment EXPERIENCE well-being of our customers. Further,
is expected to play a significant role in We understand that owning a home we have straight-through processing
driving our growth. We disbursed H137 is a significant milestone in every for our salaried customers, accelerating
crore under Roshni in the fourth quarter individual’s life, which makes securing the primary approval process with the
of FY23. a home loan a crucial financial decision implementation of a robust business
As of 31st March, 2023, our gross for them. At PNB Housing Finance, rule engine.
Non-Performing Assets (as per Ind we strive to make this process
We are expanding our presence both
AS) stood at 3.83%, down from 8.13% seamless, convenient, transparent
online and offline to enhance customer
as on 31st March 2022. We maintained and personalised.
accessibility. On the online front, we
total provisions to total assets at Keeping up with the rapid pace of utilise blogs, affiliate marketing, SEO,
2.42%. In FY23, net interest income global technological developments video marketing, display advertising,
amounted to H2,345.54 crore, compared accompanied by a growing demand and email campaigns to engage with a
to H1,868.92 crore in FY22. Operating for home loans, we have also made wider audience. Offline, we leverage
profit increased by 23.6% year-on-year our internal processes robust and multimedia campaigns such as TV, print,
to H2,052.19 crore, while net profit highly efficient. radio, out-of-home (OOH) advertising,
experienced a growth of 25%, reaching property expos, and market activations.
H1,046 crore. Through the implementation of digital
Our goal is to make it easier for
solutions, such as our ACE onboarding
Through our renewed focus on customers to connect with us. By
tool, we can offer a contactless loan
the retail business and reduction expanding our presence both online
onboarding process. By leveraging the
in corporate loans, our Capital to and offline, we create a comprehensive
power of technology, we have enhanced
Risk-Weighted Assets Ratio (CRAR) and immersive experience for
our efficiency and made a lasting
increased to 24.43% by the end of FY23, our customers.
impact on our valued customers with
up from 23.40% in FY22. Our Tier 1 significantly reduced turnaround times.
ratio stood at 22.40%, and our leverage Our integrated CRM tool, TALISMA,
decreased from 5.37x to 4.87x. We along with AMEYO and Core Banking

CREATING A
CHEST FOR GROWTH
` 2,493.76 crore
Of Rights Issue successfully completed
I am elated to inform you that as a post-
balance sheet development, we have
successfully completed the Rights Issue
of H2,493.76 crore in May 2023. The
issue was subscribed approximately
1.21 times. The capital raise will further
strengthen our balance sheet and act
2,052.19
as a catalyst for growth in FY2023-24
as we see robust opportunities in the
` crore prime, as well as affordable housing
finance segments.
Operating profit
LASTLY,
Having firmly established our
foundation for growth, we now forge
ahead, poised to seize new market
opportunities and emerge even stronger
REMAINING RELEVANT portfolio churns and allowed our retail than today.
WITH PACE AUM to grow. We will continue to make
headways in creating an enhanced I would like to extend my heartfelt
We are confident that our journey
experience for our customers to drive appreciation to our esteemed
towards change will yield positive
business growth. customers, shareholders, industry
outcomes, as we now have sharpened
regulators, Board and employees
our business focus, enhanced our We ensure to remain relevant with for their trust and support. With the
digital capabilities, strengthened our pace by leveraging key strategic pillars. Company’s effective recovery in FY23
underwriting and collection processes, Our focus will be on retail lending, and our steadfast commitment, we are
and successfully forayed into the expanding our offering of affordable dedicated to delivering value, fostering
affordable housing sector with Roshni. housing loans. Additionally, we will growth, and upholding the highest
These initiatives will not only improve enhance underwriting and collection standards of corporate governance.
productivity and efficiency but also efficiencies to elevate the credit quality Together, we will navigate the path
position us as a leading player for of our portfolio. To drive growth, we ahead, seizing opportunities and
future growth. will embrace digitalisation, ensuring creating a prosperous future for our
As we continue to grow, we have superior customer engagement. shareholders, maintaining a strong
redefined our strategy to focus more Simultaneously, we will fortify our relationship with industry regulators,
on improving our key performance capital position and strengthen our risk and fostering a thriving environment for
areas like business growth in the retail management capabilities. our valued employees.
segment including affordable, asset Furthermore, in our organisation, we In conclusion, I am looking forward to
quality, collections and recoveries, are committed to cultivating a culture building upon our strong foundation and
and diversified sources of borrowing. for the future. We strive to become the believe that an exciting growth journey
We have already reduced our focus on preferred employer by embodying a lies ahead as we remain optimistic
the corporate segment and are seeing “People First” attitude, one of our core about making India a place where every
better opportunities in the salaried values. This principle ensures that we person owns a home.
segment within the retail sector to drive provide equal opportunities and foster
our portfolio quality. Our relentless inclusive growth for all our employees.
efforts towards early identification of By nurturing a supportive and inclusive Warm regards,
delinquency and recoveries have helped environment, we aim to attract and
significantly improve asset quality. retain top talent, creating a workplace
Further, continuous focus on growing GIRISH KOUSGI
where everyone can thrive and
the retail segment and engagement Managing Director and CEO
contribute to our collective success.
with our customers have helped arrest

Limitlessly
Absorbing
Resourc
Ambie
As the egg hatches, it forms into During this phase, we have
a caterpillar where it enters a consumed the rising demand
stage characterised by an intense for affordable housing in India,
instinctual drive to consume tapped into the untapped
any available food. This period potential of lower mortgage
is marked by insatiable hunger penetration, leveraged the power
and a remarkable ability to adapt of digitalisation, and adapted to the
to the surrounding environment, constantly evolving buying patterns
allowing the caterpillar to of our consumers. Recognising
increase its size by a factor of up the opportunities presented by
to 1000 times its original size. this dynamic business landscape,
ces
we have redoubled our efforts to
Similarly, as we cracked open strengthen our core operations
our shell, we started propelling and position ourselves for future
ourselves into a world of growth. By proactively embracing
possibilities and embracing the these opportunities, we are poised
winds of change. to capitalise on the evolving needs
and aspirations of our customers,
further solidifying our position as a
leader in the housing sector.
in a Vast
ence
OPERATING ENVIRONMENT
Promising market
opportunities
During the times of the COVID-19 pandemic, the financial sector encountered
difficulties such as limitations on travel and the collection of funds from
centralised markets. However, by successfully recognising emerging market
opportunities and capitalising on them, we were able to drive a robust financial
performance for our Company.
LOWER MORTGAGE RISING DEMAND FOR

PENETRATION AFFORDABLE HOUSING
India has a relatively low mortgage IN INDIA
penetration rate compared to other In FY23, India faced a significant
countries, with only 10.5% of its GDP housing shortage of 100 million units,
being contributed by mortgages in leading to the introduction of several
FY23. However, the real estate market impactful policies. These initiatives,
is expected to see growth in the long such as Pradhan Mantri Awas Yojna,
term, which will lead to a boost in the Credit Linked Subsidy Scheme,
housing finance sector. As a result of Housing for All, and the Resolution
various factors, such as the rapidly Framework, show the government’s
growing middle class, rising disposable unwavering commitment to addressing
income, and urbanisation, the home loan the housing shortage in the country.
market in India is expected to grow by The affordable housing segment also
14% in the near future. received a significant boost from the
government in Budget 2023-24, with an
increased allocation of H79,000 crore,
which is a 66% increase from last year.
The finance minister also provided
tax relief to the working middle class
by implementing revisions to the
tax structure. The sector has been
experiencing robust growth in recent
years and is expected to maintain its
momentum in the future.

SHIFT IN BUYING NEEDS IMPACT OF DIGITALISATION

The COVID-19 pandemic caused many As digitalisation became more OUR RESPONSE
people - who were previously living widespread, organisations in different
Drawing from our deep
in rented homes - to become more industries started using digital tools.
understanding of the external
cautious about their living conditions Housing Finance Companies (HFCs)
environment, we have taken
and prioritise their families’ safety. are using these advanced digital tools
decisive measures to capitalise
Additionally, with more people working to make the entire customer journey
on the opportunities available
from home, the need for larger, more smoother and seamless. Additionally,
in the market.
private spaces became increasingly the use of advanced analytics, data
important, further contributing to the sciences, machine learning, and − Efforts have been focused
growth of the real estate market. Some artificial intelligence is speeding up on accelerating growth
even bought homes as a source of the process of screening customers through the retail segment.
additional income by further renting during underwriting, resulting in a Further, we are expanding
them out. The government’s affordable faster turnaround time. These tools are our presence in the retail
housing scheme also led to a shift in also helping organisations to improve segment through the
buying patterns, as people were able to credit profiling, collection, and recovery establishment of affordable
find more reasonably priced options in processes while reducing costs. housing branches in tier II
the market. and III cities.
− We have improved our

underwriting process and
streamlined our collection
efficiencies by implementing
digital tools to enhance our
operational efficiency.
− Furthermore, we have
enhanced the capabilities of
ACE – our digital onboarding
platform for customers.
− Focus on increasing
collection efforts to reduce
the Gross NPA
− Realignment of our teams
and processes to achieve
our goal of growth on loan
assets with a focus on the
retail segment, growth in
the affordable segment and
asset quality improvement.
Read more on Page 46

Potential
Unfolds in
Preparation for
Adulth
Just like a caterpillar patiently waits
hood
for days, weeks, and months to grow
into its final form, the phase of growth
is an essential period for development
in preparation for adulthood. It is during
this stage that the caterpillar begins to
transform and shape itself into its final
state. Likewise, at PNB Housing Finance,
we too are in the midst of our journey
towards establishing growth for the
future, where we are working tirelessly
to streamline our strategies and become
the housing finance company of choice
for customers.
This transformational phase is marked by a diligent

focus on continuous improvement and innovation, as
we seek to adapt and evolve in response to changing
market conditions and customer needs.
We have worked diligently to decrease our leverage to
4.87 times as of March 31 2023, while also increasing
our Capital to Risk-Weighted Assets Ratio (CRAR) to a
commendable 24.43% with the Tier I capital at 22.4%.
Our well-established credit underwriting and collection
processes have enabled us to effectively manage our
large-scale business operations, enhancing productivity
and enabling prudent credit decisions. We take pride in
our ability to efficiently underwrite diverse customer
segments and build strong relationships with our
business partners and stakeholders. Gradually, we are
automating and digitising our underwriting processes
to further enhance efficiency.
Furthermore, we have accelerated our digital journey
by implementing contactless customer onboarding
and disbursal. As pioneers among HFCs in India, we
have upgraded our digital platform ACE for customer
onboarding, document verification, and disbursement.
This has helped optimise customer acquisition costs,
improve customer service, and enhance overall
operational efficiency.
These achievements underscore our commitment to
maintaining a robust financial position and establishing
a strong base for future growth.
STRATEGIC PRIORITIES
Building a strong
foundation of growth
As we chart our path for growth, we are keenly attuned to market trends
and strategically planning our approach for FY24. Our focus lies in the
retail segment, where we anticipate maximum room for expansion, while
potentially reducing our exposure in the corporate books. By aligning our
strategic pillars, we are poised to capitalise on opportunities, optimise our
resources, and drive sustainable growth.
Strategic pillar 1 Strategic pillar 2
ACCELERATE GROWTH BY FOCUSSING EXPAND AFFORDABLE HOUSING LOAN

ON RETAIL LENDING AND LEVERAGING OFFERING
OUR EXPERTISE IN THE RETAIL LOAN
SEGMENT
Key Performance Indicators Key Performance Indicators
9.8%
YoY growth in retail segment
82
Roshni-specific branches
93.6%
Of Loan Book is retail
K137 crore
Disbursement under Roshni


ENHANCE UNDERWRITING AND ACCESS TO DIVERSIFIED FUNDING
COLLECTION FRAMEWORK TO SOURCE
STRENGTHEN THE CREDIT QUALITY
98.6%
Retail collection efficiency
4.87X
Gearing as on 31st March 2023
3.83%
GNPA as on
24.43%
Capital to Risk Asset Ratio
31st March 2023,
reduced by 430 bps YoY
Strategic pillar 5
DRIVE GROWTH THROUGH
DIGITALISATION FOR BETTER
CUSTOMER ENGAGEMENT
Key Performance Indicators
33%
Improvement in customers
accessing customer portal and
mobile app for self service
Read more on page 48

Advanced and
Developed Unit
Leading
Today
Finally, as a caterpillar transforms into a butterfly,
it grows into a new shape, sheds its colours, and
expands its wings to fly. We, too, have come out
mature and ready to expand our horizons.
Through a focus on innovation and cutting-edge

technology, we have transformed into a reliable
and trusted partner for all housing finance
needs. Our dedication to providing accessible and
affordable financial solutions to people across
India has earned us the reputation of being a
customer-centric organisation committed to
providing a seamless and hassle-free experience
to our customers.
With a comprehensive range of products and

services designed to meet the diverse needs of
our customers, we are well-positioned to lead the
way in the evolving housing finance industry.
WIDE-RANGING EXISTENCE
Explore. Enhance. Expand

Our commitment to offering This year we grew and expanded to a total of 189 branches
and outreaches; we have 22 decision-making hubs for credit
comprehensive housing financial decisions. Additionally, we had over 14,000 active channel
solutions has resulted in a remarkable partners for loans and deposits in FY23. Our network spans
138 cities and 20 states and Union Territories, enabling
expansion of our business presence us to reach a wide range of customers and meet their
throughout the country. financial needs.
Our strong presence reflects our dedication towards last-

By diligently exploring our target mile financial inclusion in India. We identified specific regions
to expand our affordable housing segment, ‘Roshni’ to 82
markets and strategically seizing branches and outreaches dedicated solely to Roshni during
upon promising opportunities, we the year.
have successfully capitalised on

favourable circumstances to drive our
growth and success.
Zone-wise breakup
Loan Asset - Geographical breakup (%)
FY2021-22
FY2022-23
26.6 29.3
34.2
37.9
35.5 36.5
Disbursement - Geographical breakup (%)
FY2021-22 FY2022-23
29.8 28.3
31.7
34.2
41.9 34.1
North region West region South region

OUR OFFICE NETWORK
North Region
60 08
Branches & Hubs
outreaches
West Region
74 07
Branches & Hubs
outreaches
South Region
55 07
Branches & Hubs
outreaches

HUMAN RESOURCE
Embracing a culture
for the future
As an advanced and developed housing finance company, we recognise the
crucial role our people play in delivering exceptional cross-disciplinary service
to our customers. We prioritise the well-being and interests of our employees
over profitability, placing their satisfaction and growth at the forefront. By valuing
and investing in our workforce, we empower them to reach their full potential,
go above and beyond, and consistently provide outstanding service to our valued
customers. Our commitment to our employees ensures a positive and engaging
work environment, fostering a culture of excellence and customer-centricity.
1,690
leaders, brings invaluable insights
gained from navigating organisational
changes and cycles, enabling us to
Total employees discern effective strategies.
DIVERSITY AND INCLUSION

CORE PHILOSOPHY “Aikyam”, a Sanskrit word essentially
At the heart of our core values meaning Unity in Diversity, is our
lies “People First,” which drives flagship initiative towards diversity,
our dedication to fostering equal inclusion and empowerment. We at PNB
opportunities and inclusive growth. Housing Finance are fully committed
Consistent with this principle, we and firmly believe in diversity and
provided 64 internal job transfer inclusion, considering everyone equal.
opportunities last year, empowering We have planned initiatives around
our talented individuals with increased empowering our people taking the
responsibilities. We prioritise diversity ratio higher and building an
thorough orientation to ensure a deep inclusive culture in our organisation.
understanding of our organisational
culture, products, and services. Our Gender Distribution Zone-Wise
experienced workforce, including key
91.3% 86.8% 84.6%
72.0%
Male
28.0% Female
13.2% 15.4%
8.7%
CSO North South West

Additionally, we have also implemented Celebrating together RECRUITMENT STRATEGY

the below policies to promote diversity We foster a culture of togetherness Our recruitment strategy focuses
and inclusion in the organisation: and celebration within our on leveraging HR Tech to streamline
organisation, where we come processes, reduce transactional
Hazardous environment and together to commemorate festivals activities, and provide a delightful
security policy and acknowledge achievements. We onboarding experience to new
We prioritise the provision of a embrace people from all backgrounds, joinees. We implement data-driven HR
secure and clean work environment encouraging them to join hands in unity practices to enhance the employee
as it directly influences employee and lend their grace and support to any lifecycle journey and target initiatives
productivity. At select locations, we initiative undertaken by the Company. to retain and grow talent. By investing
have also implemented crèche facilities, Our inclusive environment ensures that in technology and personalised
further supporting the well-being of our everyone feels welcomed and valued, interventions, we ensure a smooth
employees. By maintaining a conducive promoting a sense of belonging and recruitment process and create an
work environment, we aim to enhance collective celebration. exceptional employee experience.
productivity and foster a culture of This was supported by initiatives like
employee care and satisfaction. Listening culture the employee referral programme
‘SAMPARK’ is an initiative that and listing of open positions on the
Leave policy was launched in FY23 as part career page of our official website
At our Company, we are dedicated of our engagement strategy for and LinkedIn.
to providing our employees with the employees. Its core objective is
flexibility to apply for various types ‘Connect. Care. Communicate.’ is
of leaves, including maternity and
paternity leaves. We believe in equal
opportunities for all employees,
irrespective of their caste, creed, or
essentially about creating a culture
of listening, appreciating, caring,
sharing and celebrating. We believe
in fostering deeper bonds with our
878
Total new joiners in FY23
religion. Our inclusive leave policy employees, driving a collaborative
ensures that every employee has work environment, having two-way
the freedom to avail themselves of communication with employees and
the necessary leaves they require, nurturing healthy working relationships.
promoting a fair and supportive work
environment for everyone.

HUMAN RESOURCE
TALENT MANAGEMENT
Our talent management strategy
encompasses becoming a Great
Place To Work certified organisation,
implementing succession planning for
critical roles, developing a coaching
model for leadership development, and
fostering an engaged workforce. We
focus on attracting top talent, enhancing
talent readiness, and building an internal
leadership pipeline for future success.
EMPLOYEE RECOGNITION AND

MOTIVATION
We prioritised employee recognition and aspiring to be a part of this exclusive learning, mentoring, coaching, and
motivation by revamping our variable club by exceeding their milestones self-directed learning. The goal is to
pay and incentive structures, aligning month on month. provide individuals with the tools and
them with industry benchmarks. We resources they need to achieve their
effectively communicate our total LEARNING AND DEVELOPMENT career objectives and contribute to
rewards philosophy to boost employee organisational success.
The Learning and Development function
motivation and appreciation, resulting
is committed to acting as an enabler To ensure effectiveness and
in reduced attrition and the retention of
towards the organisation’s growth and business alignment of the learning
key talent.
endeavours to create opportunities and development interventions, we
MD’s Toppers Club is a recently that help employees in acquiring new set clear learning objectives, curate
launched programme to recognise and knowledge, skills, and attitudes to customised content, design engaging
reward the valuable contributions and improve an individual’s performance delivery methods, and assessment and
superlative performance demonstrated and potential by enhancing their evaluation mechanisms to measure
by our colleagues who are putting in competencies to remain competitive progress and effectiveness. These
commendable efforts in the overall and relevant in today’s fast-paced and interventions augment our HR strategy
‘growth journey’ of our organisation. rapidly changing world. to improve employee engagement,
80 top-performing employees became retention, and performance and create
Our interventions take place as formal
part of this exclusive club as of FY23. a culture of continuous learning
training programmes, on-the-job
Our employees are fully geared up and and improvement.
HR POLICY AND GOVERNANCE

FRAMEWORK
Our HR policy and governance
framework includes a revision of
our HR Policy Manual, ensuring it is
benchmarked to market standards.
We strive to provide best-in-industry
employee policies that contribute
to a better employee experience.
By fostering an engaged workforce
we promote a positive and fulfilling
LEVERAGING TECHNOLOGY IN The launch of our employee self- work environment.
PEOPLE MANAGEMENT service payroll portal enhances
We have fully digitalised our HRMS accessibility and reduces manual
system, incorporating modules for dependency. Real-time dashboards,
recruitment, performance management, on-demand reports, and a user-friendly
and employee lifecycle management. mobile app contribute to a comfortable
and accessible experience for
our employees.

LEARNING AND DEVELOPMENT – OUR LATEST INITIATIVES INCLUDE
Strengthening core Establishing a self-learning Empowering women leaders

competencies through Vani culture through LinkedIn with Talent Nomics India
We have initiated a personalised We have introduced LinkedIn Our women leaders have enrolled
communication enhancement Learning, a learning platform in a year-long journey to develop
journey called ‘Vani’. It includes that empowers our employees to their leadership insights, cross-
tailored personal coaching sessions access world-class learning content cultural competence, build essential
designed to address the specific anytime, anywhere. This platform leadership competencies, and
needs of individuals, enabling them enables them to choose the skills mentoring skills to enhance their
to enhance their communication and competencies they wish to leadership abilities.
skills effectively. acquire, helping them stay ahead in
their careers.
Creating an adaptive
environment for new-joiners
through Prarambh
Developing sales leaders
through Parivartan
We have implemented Parivartan,
38,455
Total learning hours
Our induction and orientation an assessment-based competency
journey, Prarambh, is designed development programme
to help new hires quickly designed for our Sales Team. This
17.9
align with our organisation’s programme aims to enhance their
values, culture, and systems. It productivity by focusing on key
accelerates their productivity sales competencies and providing
by providing a comprehensive targeted training and support. Average training hours
onboarding experience. per employee

CORPORATE SOCIAL RESPONSIBILITY
Making our society

stronger together
Our goal is to help marginalised communities by delivering projects
that provide solutions for their betterment and growth, making the
maximum impact for beneficiaries. Our CSR arm, the Pehel Foundation,
implements and strengthens CSR programmes in this direction. It
represents our ongoing efforts to ensure the growth and welfare of
underserved sections of society. Our main objective is to reach as many
people as possible and improve their lives.
OUR CSR STRATEGY Women Transformation of Govt.

At our Company, we firmly believe empowerment and schools and Anganwadi
that businesses should be oriented livelihood generation
towards society. We see our
stakeholders as more than just our
customers and associates; they Skill development of Solar electrification
include the community that invests deaf women at govt. schools
their social and manual resources.
Crèche for kids E-learning

OUR INTERVENTION AREAS
of women staff at infrastructure installed

eye hospital at Govt. schools
Infrastructure Scholarships to support

development underprivileged students
of government
health centres
Equipment and Water rejuvenation

machinery support to at villages
government hospitals
Improved access to Availability of safe

healthcare services drinking water
Hearing aid imparted to Plastic waste

deaf children management

Empowering lives ...strengthening ...to bring

of construction lives in the local growth and
workers and... areas... positive change
11.39 6.41
Through our CSR initiatives, we aim
to create a positive impact on society
` CRORE ` CRORE and the environment while also
CSR spend in FY23 Planned and allocated for supporting the long-term success of
ongoing projects our business. By engaging with our
stakeholders and working together
towards a common goal, we hope to
create a better future for all.
Women empowerment
Our Women Empowerment initiative

strives to enhance women’s income
levels, foster financial independence
and self-confidence, and address
women’s health and hygiene issues
in underserved communities. By
creating an inclusive society with equal
opportunities, we believe empowering
women is a smart investment in our
collective future.

IMPACTFUL INITIATIVES Established units of spice and pickle Skill development

IN FY23 production We trained 120 rural women in 7
We have set up three units to provide centres across Rajasthan for 6 months
Developed napkin manufacturing units employment for women in spice and to develop their weaving skills. We
We established two units in Lucknow pickle production. These women provided looms to help them create
and Valsad, Gujarat, to empower operate as self-help groups, using carpets, which they now sell and profit
rural women from nearby villages. profits to expand the business and from. We also initiated a project to train
The women, identified as ‘Sanginis’ distribute among members. deaf women across 4 trades, including
produce, package, and sell napkins mixer grinder repair, LED repair, mobile
while also conducting menstrual repair, and electrical work. Through
115
hygiene awareness sessions in their this initiative, these women will gain
communities. Through this initiative, we specialised skills that can lead to
are addressing the lack of awareness greater financial independence.
and health hazards that women face in Rural women were involved
rural areas. in production, packaging and
120
selling in FY23
64
Rural women were involved
Effort on improving the quality of life
Our project aimed to improve the quality
Rural women learned
weaving skills
in production, packaging and of life for migrant workers affected

by Covid. We trained 150 women from
selling in FY23
the construction industry, equipping Established a crèche
them with advanced sewing skills We plan to support the children (up
200
using imported machines from Japan. to age 10) of female employees at LV
These women were then employed in Prasad Eye Hospital in Bhubaneswar,
the fashion industry, with an average Odisha. This initiative has empowered
Villages are targeted to reach monthly income of H10,000. women to continue working
more rural women in FY24 without having to sacrifice family
responsibilities. As a result, some
150
women who had previously left are now
reaching out to return to work.
Women trained from the

construction industry to get
better jobs
Health and well-being

At our core, we prioritise health and
well-being. Our projects aim to provide
better access to healthcare services,
advanced health infrastructure,
and improved health outcomes. We
are committed to designing and
Image to come
implementing sustainable solutions that
promote health equity for all.

Better access to healthcare

IMPACTFUL INITIATIVES
We brought buses to provide
IN FY23 transportation support to patients
residing in rural interior villages with
Transformed primary health centre
limited access to healthcare centres.
(PHC) and community health centre
This service will enable them to
(CHC)
conveniently travel to the nearest health
We refurbished the centres into better centres for medical attention.
health infrastructure by installing
advanced medical and lab equipment. Support to hearing impaired children
These upgrades include state-of-the-art We provided hearing aids to children
laboratories and testing machines. with hearing impairments. Through
this, they were able to receive
2
speech training and have now started
speaking themselves.
CHCs were transformed
4 mobile medical clinics planned

Mobile medical clinics will be set up in
Delhi, Mumbai, Kolkata, and Chennai
250
Hearing aids distributed
to provide free healthcare services
to construction workers at their
workplaces and nearby slum areas.
The initiative aims to improve access to
healthcare for workers who are unable
to reach regular health centres.
Education
IMPACTFUL INITIATIVES providing audio-visual aids for
IN FY23 learning and online interactive
classes to 4500 students every day.
− Upgradation of 4 Anganwadis is
complete, and work is in progress in − Initiation of a scholarship project for
5 others, with better infrastructure, 400 underprivileged students pan-
educational materials, play areas, India to support and motivate them to
Image to come
and toys, resulting in increased daily complete their studies.
attendance of children.
− Support for a school bus for
− Transformation of 1 school with transportation of students from
infrastructure development, several tribal villages in rural
informative wall art, innovative locations of Jharkhand, providing
play areas, Swachhata Vahini equal educational opportunity
toilets, and exclusive dining areas, to students with no access
attracting more admissions from to transportation.
We carefully select educational projects
nearby villages.
that promise to enhance students’ − Support for STEM learning in 20
learning experience and future by − Installation of solar panels in 24 schools through practical activities,
implementing advanced learning govt. schools in rural villages with workshops, hands-on practice, and
technologies, improving infrastructure, electricity connection but frequent experiential fun learning, enhancing
offering scholarships, and providing load shedding, reducing absenteeism innovative skills and problem-
learning aids. and inconvenience to students solving abilities.
during summers.
− Installation of e-learning
infrastructure in 44 govt. schools,

Environment
Safe drinking water initiatives
Two villages, Gowla and Malkitoos in
Rajasthan, now have safe drinking
water supply systems established
at the household level, benefiting
villagers, who now have direct water
pipeline connections for the first time.
An overhead tank was constructed
along with a solar water lifting system
and a water committee was formed to
ensure the sustainable functioning of
the system.
944
Villagers were benefitted
As responsible members of society, we Development of ponds Regenerating plastic waste

have taken up the task of environmental Two ponds were built from scratch to The installation of plastic bottle
rejuvenation through recharge, benefit the villagers in the surrounding crushers is ongoing at public places
recycling, and natural resource areas. This will enhance agriculture, where plastic waste is generated
management. Our efforts aim to reduce horticulture, and water availability for in huge volumes. The project aims
pollution caused by waste and provide animals, leading to an increase in the to motivate the public to dispose of
clean water to those in need. villagers’ income. plastic pet bottles in these machines,
which will crush the plastic bottles
IMPACTFUL INITIATIVES and send them directly for recycling,
27.22Mn
IN FY23 reducing tons of plastic waste from
entering landfills.
Establishment of RO plants
litres
16
Three RO plants with a capacity of
dispensing 1,000 litres of water in one Capacity of water
hour have been established in areas available annually
where sufficient water availability and Plastic bottle crushers are
quality is a major issue.
1,606
being installed
75,000
People will be benefited from 3
Villagers were benefitted
RO plants

GOVERNANCE
Leading with experience

and expertise
As a prominent housing finance company in India, we recognise the importance
of setting a positive example in the industry as a transparent and practical
organisation. Our commitment to upholding global standards of ethics and integrity
reflects our dedication to safeguarding stakeholder value over the long term.
59 years
Average age of
3 years
Average tenure of
30+ years
Average experience of Board
Board members Board members members
BOARD COMPOSITION AND COMMITTEES OF THE BOARD

Our esteemed Board of Directors
comprises seasoned professionals
with diverse expertise in areas such
Board as banking, finance, risk management,
structure regulatory affairs, and technology. We
specifically include IT experts as Non-
Managing Director (1) Executive/Independent Directors to
address the significance of digitalisation
Non-Executive Director (5) and associated risks. The Board
possesses a deep understanding of
Independent Director (6) our business model, processes, and
industry landscape. Regular updates
on company affairs, industry trends,
and regulatory guidelines are provided
to Board members. Newly appointed
− Audit committee Independent Directors undergo a
− Risk management committee comprehensive orientation process
− Credit committee and engage with functional heads
− Nomination and remuneration committee
to familiarise themselves with their
− Stakeholders relationship committee
roles and our operations. Continuous
− Corporate social responsibility committee
− IT strategy committee learning is encouraged through
participation in seminars conducted by
reputable organisations.

GOVERNANCE
DIVERSITY IN THE BOARD the business plan of the Company. Committee, IT Strategy Committee
Our Board is composed of individuals The Board also engages with Senior and ALCO.
with a wide range of expertise, Management through its committees
The risk management processes
academic backgrounds, and industry for matters related to delegated areas.
are guided by well-defined policies
experience, promoting diversity and The Risk Management Committee also
appropriate for the various risk
inclusivity. We are proud to have a meets the CRO and the Audit Committee
categories supplemented by periodic
female Independent Director on our meets the Internal Audit Head without
validations of the methods used and
Board, reflecting our commitment the presence of the management to
monitoring through the sub-committees
to gender diversity. Our Board ensure the independence of their
of the Board. The Company has Board
Diversity policy underscores our roles. The average attendance at the
approved Risk Management Policy
belief in inclusivity as a key driver Board meetings in FY23 was 89%. All
wherein risks faced by the Company are
of performance and success. The Board meetings are attended by all
identified and assessed and a business
Company recognises and embraces members of the Senior Management.
continuity plan to ensure the continuity
the significance of a diverse Board in In addition, members of the Senior
of its services to its large customers
its success and believes that a diverse Management participate in Committee
base, a cyber crisis management
Board will enhance the quality of meetings as well in relation to their
plan, information and cyber security
decisions made by utilising the different respective responsibilities.
policies. Your Company believes that
skills, qualifications, professional
our opportunity lies in risk. Since its
experience and background, gender, POLICIES FRAMEWORK FOR inception, the Company has had a
ethnicity, knowledge, length of service,
ETHICAL CONDUCT philosophy to create its niche and build
and other distinguished qualities of
Our Board adheres to a comprehensive a profitable business which reflects in
its members which are necessary for
Code of Conduct that applies to all the financials with a consistency similar
driving business results, achieving
Non-Executive Directors, including to liquidity. The Company has clarity on
competitive advantage, effective
Independent Directors, in accordance how to deal with the asset-liability issue
corporate governance, sustainable and
with regulatory requirements. This of a typical housing finance business.
balanced development.
code emphasises professional conduct, The ever-evolving global landscape
ethics, and governance in fulfilling has prompted companies to reassess
RESPONSIBILITIES OF THE
their responsibilities. Additionally, their assumptions and adapt strategies
BOARD we have distinct Codes of Conduct to a new operating environment,
The Board plays a crucial role in for Executive Directors and Senior prioritising the safety of individuals
overseeing how the management serves Management. To foster an ethical and effectively managing major risks.
the short and long-term interests of culture, we have implemented various Our Risk Management Framework,
stakeholders and the Company strives policies and frameworks covering bolstered by advanced technologies,
to maintain an effective, informed corporate governance, insider trading has enhanced our preparedness in
and independent Board. The Board, prevention, related-party transactions, responding to challenges like COVID-19.
along with its various Committees, sexual harassment prevention, CSR, This framework enables us to identify,
provides leadership and guidance to the and fair practices. These policies assess, respond to, and monitor risks
Company’s management and directs, are consistently communicated in real-time, aligning with our business
supervises and ensures the functioning to our management, employees, objectives. With a robust three lines
of the Company in the best interest of and stakeholders. of defence approach, we ensure
all the stakeholders. The Board meets business managers, risk management
regularly, at least quarterly, to discuss RISK MANAGEMENT and compliance functions, and internal
important matters including business audit work together to manage
FRAMEWORK
updates, financials, credit appraisal, risks effectively.
human resources, regulations, risk The Company has in place a Board
management, and strategy. Committee constituted Risk Management The Company gives due importance
decisions are shared with the Board Committee. The details of the to prudent lending practices and has
on an ongoing basis. The Board and Committee and its terms of reference implemented suitable measures for risk
Senior Management meet quarterly are set out in the Corporate Governance mitigation, which include verification of
or as needed. Independent Directors Report forming part of this Report. The credit history from credit information
hold separate meetings, ensuring Board is the apex governance body bureaus, personal verification of a
their independence. Virtual meetings on all matters of risk management, customer’s business and residence,
have been conducted during the last and exercises its oversight over risk technical and legal verifications,
financial year. In addition, the Board management both directly and through
meets annually to discuss and approve its Risk Management Committee, Audit

conservative loan-to-value, and

required term cover for insurance.
Key risks such as credit, market,

operational, liquidity, and cybersecurity
are addressed through Board-approved
policies and oversight by the Executive
Risk Monitoring Committee. Prudent
lending practices and risk mitigation
measures, including credit history
verification, thorough assessments,
conservative loan parameters, and
insurance coverage are implemented.
The Company has created a robust
risk management framework with the
help of technology and analytics. The
Company has strong underwriting skills,
which helps to mitigate credit risks.
Using strong customer assessment
standards also supports the Company to
mitigate credit risk. Further, the Internal
Capital Adequacy Assessment Process
(ICAAP) of the Company assesses all
the significant risks associated with
various businesses.
Our Risk Management Framework
allows us to minimise the impact Committee, ensuring transparency and Risk Management and Transaction
of risks and capitalise on market and accountability. Additionally, we Monitoring. We diligently monitor
opportunities while ensuring have implemented a robust grievance compliance with these guidelines
compliance and regular review by the redressal mechanism for our throughout the customer lifecycle.
Risk Management Committee. During customers, addressing their concerns Furthermore, we have developed a
the financial year under review, the Risk promptly. Shareholders’ grievances are targeted training module to provide
Management Committee reviewed the diligently handled through dedicated effective and focused training on anti-
risks associated with the business of email addresses, actively monitored by corruption and AML practices.
the Company, undertook its root cause our Compliance and Investor Relations
analysis and monitored the efficacy RBI for driving the anti-money
Team. We have Board-approved policies
of the measures taken to mitigate laundering initiatives advised NBFCs
in place for succession planning,
the same. including HFCs to follow certain
outsourcing, anti-corruption and anti-
customer identification procedures
bribery, information security, and cyber
for monitoring transactions of a
ADDITIONAL POLICIES crisis management, ensuring adherence
suspicious nature and their reporting.
In terms of the RBI/SEBI/MCA to statutory requirements.
The Company in terms of the RBI
regulations and various other laws guidelines, carry out money laundering
applicable to the Company and as a part ANTI-MONEY LAUNDERING and terrorist financing risk assessment
of good corporate governance and also (AML) exercise periodically to identify,
to ensure strong internal controls, the assess and take effective measures to
Our organisation has a robust Know
Board has adopted several policies and mitigate money laundering and terrorist
Your Customer (KYC) and Anti Money
has also reviewed the same from time financing risks.
Laundering (AML) policy, which is
to time.
aligned with the guidelines of the
We have established a comprehensive Reserve Bank of India (RBI) and
Whistle-blower policy that empowers the provisions of the Prevention of
all employees to report any Money Laundering Act. This policy
serious irregularities or violations has been approved by the Board and
within the organisation. Policy on encompasses essential elements
whistleblowers provides direct such as Customer Acceptance Policy,
access to the Chairperson of the Audit Customer Identification Procedures,

GOVERNANCE
Board of Directors
Mr. Goel is Managing Director & CEO of Punjab National Bank from 1st February 2022.
Earlier, he was Managing Director & CEO of UCO Bank, Executive Director of Union
Bank of India and held various positions in Allahabad Bank. He is a qualified Chartered
Accountant, having more than three decades of banking experience, large corporate,
treasury management, risk management, financial planning, investor relations,
business transformation, compliance etc. He was the Chief Financial Officer (CFO) of
Allahabad Bank.
Committee Membership
Nomination and Remuneration and
Stakeholders Relationship
MR. ATUL KUMAR GOEL
Non-Executive Nominee Director
DIN: 07266897
Date of joining: 28th April, 2022
Mr. Kaul is Managing Director of Carlyle Singapore Investment Advisors Pte Limited and
is the Head of Southeast Asia of the Carlyle Asia Buyout Advisory Team and concurrently
leads the financial services sector for the team in Asia. Before joining Carlyle 15 years
ago, he was President of Citibank Japan and Chairman of CitiCards Japan KK and
CitiFinancial Japan KK. He was also the Head of Retail Banking for Citibank in Asia,
Head of International Personal Banking for Citibank in New York and Head of Global
Transaction Services at Citibank, Japan. He has over 38 years of experience in the fields
of private equity, corporate and consumer banking. He is a graduate of IIT Bombay and
IIM Bangalore.
Nomination and Remuneration,
MR. SUNIL KAUL Stakeholders Relationship and
Non-Executive Nominee Director Risk Management
DIN: 05102910
Date of joining: 5th March, 2015
Mr. Chandrasekaran was one of the co-founders of Cognizant. He retired as the Executive
Vice Chairman of Cognizant India in March 2019. He has been widely recognised as a
significant contributor to the growth of Cognizant, including its global footprint. Prior to
joining Cognizant, he was with Tata Consultancy Services for over nine years. He has 37
years of experience in the field of information technology.
Nomination and Remuneration,
IT Strategy and Corporate
Social Responsibility
MR. R. CHANDRASEKARAN
Independent Director
DIN: 00580842
Date of joining: 7th October, 2015

Mr. Vikamsey is the former President of the Institute of Chartered Accountants of

India and is a member since 1985. He has been associated with KKC & Associates
LLP as a senior partner since 1985. He has extensive experience in the audit
and consultancy of banks, large companies, mutual funds, and financial service
sector companies.
Audit and Nomination
and Remuneration
MR. NILESH S VIKAMSEY

DIN: 00031213
Date of joining: 22nd April, 2016
Dr. Bhasin is presently Chairman of the Advisory Board for Banking Frauds
constituted by the Central Vigilance Commission in consultation with the RBI. He
was Vigilance Commissioner at the Central Vigilance Commission. He held various
positions with the Oriental Bank of Commerce and was the Executive Director of
the United Bank of India and the Chairman and Managing Director of the Indian
Bank. He has over four decades of experience in the administration, banking and
finance industry.
Audit, Risk Management and
Corporate Social Responsibility
DR. TEJENDRA MOHAN BHASIN

DIN: 03091429
Date of joining: 2nd April, 2020
Mr. Vyas superannuated as the Deputy Managing Director and Chief Operating Officer
(COO) of the State Bank of India (SBI) on 30th June 2018. He has handled several
assignments for SBI in India and abroad. He is a senior banking professional with over 36
years of experience across a wide range of functions, such as banking, credit, mortgages,
risk management and operations. Mr. Vyas is Non-Executive Director since 1st September
2020. Earlier, he was Independent Director on the Board from 15th April 2019 till 28th April
2020. He was appointed Managing Director & CEO of the Company from 28th April 2020
till 10th August 2020.
Credit, Risk
Management and Audit
MR. NEERAJ VYAS
Non-Executive Director
DIN: 07053788
Date of joining: 1st September, 2020

GOVERNANCE
Mr. Sen retired from the Reserve Bank of India as Executive Director in charge
of the regulation of banks and non-banking financial companies. In a career
spanning over 37 years, he worked in banking regulation, bank supervision, fintech
regulation, human resources, information technology, and currency management.
He has been on several major national and international committees constituted by
the RBI.
Audit, Nomination and Remuneration
and Corporate Social Responsibility
MR. SUDARSHAN SEN

DIN: 03570051
Date of joining: 1st October, 2020
Mr. Modi is a managing director at Carlyle India Advisors Private Limited and is part of the
investment team of Carlyle India for over 15 years. He holds a B. Tech degree in Computer
Science (silver medallist) from IIT Kharagpur and is a postgraduate in management
(gold medallist) from IIM Ahmedabad. He also holds CFA from CFA Institute (USA) and a
Master’s degree in business law from National Law School, Bengaluru.
IT Strategy and Credit
MR. KAPIL MODI

DIN: 07055408
Ms. Nayyar is a finance professional with over 31 years of global leadership experience
with MNC banks/VC funds and corporates. She has expertise in corporate banking, risk
and relationship management, investment banking, wealth management and fundraising.
She is also recognised for her expertise in angel investing/mentoring and advising
early-stage ventures. She serves as an Independent Director on the board of reputed
corporate organisations.
Nomination and Remuneration
and Stakeholders Relationship
MS. GITA NAYYAR

DIN: 07128438
Date of joining: 29th May, 2021

Mr. Kaushal has over 33 years of experience in the financial services sector in various
positions. Previously, he was associated with Fullerton India Credit Company Limited as
chief operating officer and IDFC First Bank Limited as Group Executive President in the
Risk Department. He is a member of the Institute of Chartered Accountants of India since
1985 and holds a Master’s degree in financial management from Jamnalal Bajaj Institute of
Management Studies.
Credit and IT Strategy
MR. PAVAN KAUSHAL

DIN: 07117387
Date of joining: 27th October, 2022
Dilip Kumar Jain has over 27 years of experience in various fields. He carries with him
several years of banking experience in various senior positions at Punjab National Bank.
He is currently the CFO of Punjab National Bank in the rank of Chief General Manager. He
is a member of the Institute of Chartered Accountants of India since 1989.
Nil
MR. DILIP KUMAR JAIN

DIN: 06822012
Date of joining: 4th November, 2022
Mr. Kousgi is the Managing Director and Chief Executive Officer of the Company. He has
over 25 years of experience in the financial services sector. Previously, he was associated
with Can Fin Homes Limited as Managing Director and Chief Executive Officer, Tata Capital
Financial Services Limited as head retail – credit & risk, IDFC Bank Limited as executive
vice president and ICICI Bank Limited as joint general manager. He is also serving as a
director on the board of our subsidiaries, namely PHFL Home Loans and Services Limited
and PEHEL Foundation. He holds an executive master’s diploma in business administration
from the Indian Institute of Commerce and Trade.
Corporate Social Responsibility,
MR. GIRISH KOUSGI Credit, Risk Management,
Managing Director & CEO Stakeholders Relationship and IT Strategy
DIN: 08524205

GOVERNANCE
Leadership team
GIRISH KOUSGI VINAY GUPTA SANJAY JAIN

Managing Director and CEO Chief Financial Officer Company Secretary &
Chief Compliance Officer
ANUJAI SAXENA DILIP VAITHEESWARAN JATUL ANAND

Chief Transformation Officer Chief Sales Officer - Retail Chief Credit & Collections Officer
AMIT SINGH AJAY KUMAR MOHANTY ANUBHAV RAJPUT

Chief People Officer Head - Internal Audit & Chief of Chief Information Officer
Internal Vigilance
ANSHUL DALELA VALLI SEKAR NEERAJ MANCHANDA

Head - Customer Service Chief Sales & Collection Chief Risk Officer
and Operations Officer - Affordable

RECOGNITIONS
Setting standards
through awards
Throughout our journey of growth and transformation, we have emerged as the
preferred housing finance company for people across India. Our commitment
to excellence in service and focus on customer centricity have earned us
numerous prestigious awards. These accolades celebrate our outstanding
performance and achievements, recognising various aspects of our business
including customer service, product offerings, innovation, and corporate
responsibility. We take great pride in these honours, which inspire us to continue
delivering exceptional experiences and setting new benchmarks in our industry.
Banking Frontiers DNA Banking Frontiers DNA Awards Banking Frontiers DNA Awards
Awards 2022 – Best Fraud 2022 – Best New Application 2022 – Best CSR Initiative
Control Initiative Development Initiative
Best Housing Finance Platinum in LACP Vision Marksmen Daily Business Icons
Company of the year Awards in the Diversified of India 2023 2nd Edition –
at 3rd Annual BFSI Financial Services for Best Mr. Girish Kousgi, MD and CEO
Technology Excellence Annual Report (Global ranking
Awards 2022 by Quantic of 28 across sectors and
Business Media Pvt. Ltd. reports)
MINT | TechCircle 8th CSR Impact Award for Global CSR Excellence &
Business Transformation Drinking Water Project at the Leadership Award for Women
Awards 2022 in the India CSR Summit 2022 Empowerment by World CSR
category - excellence in Congress
digital execution (Quality
Transformation)
CSO100 Recognition by Top 10 CPOs in 2022 by

CSO100 Events to CEO Insights Magazine –
Mr. Anubhav Rajput, CIO Mr. Amit Singh, CPO

Statutory
Reports and
Financial
Statements
46-151
STATUTORY REPORTS
46 Management discussion and analysis
64 Director’s report
89 Corporate governance report
117 Business responsibility and
sustainability report
152-361
152 Standalone financial statement
258 Consolidated financial statement
MANAGEMENT DISCUSSION AND ANALYSIS
PNB Housing Finance is one of India’s India managed to continue being one of the fastest-growing
economies globally, with a robust estimated overall GDP
largest housing finance companies growth rate of 7% for FY23.
that also accepts deposits. We focus
India has witnessed consumption-driven growth on the
on providing a wide range of mortgage backdrop of a large, young, and rising share of the upper
products to our customers and help middle–income population, coupled with strengthened
them fulfil their dreams of owning a corporate balance sheets. The demand fuelled by consumer
home. consumption persists on account of increased customer
confidence and higher disposable income.
The housing market also picked up, with higher demand for
INDIAN ECONOMY REMAINED RESILIENT
housing loans, declining inventories, and construction of
DESPITE GLOBAL HEADWINDS new dwellings.
India’s growth remains resilient despite some of the
According to the 2023 Economic Survey, while the rupee is
significant challenges faced globally, like vigorous monetary
performing better than most other currencies, it faces the
tightening by US central banks to combat record-high
challenge of depreciation due to the likelihood of the US Fed
inflation, war between Russia and Ukraine and slow recovery
increasing policy rates. The current account deficit (CAD) is
from the pandemic in some parts of the world. However,
also expected to widen as global commodity prices remain

high and the Indian economy continues to show strong HOUSING FINANCE INDUSTRY WITNESSING A
growth momentum. BOOM
Inflation remained largely beyond the tolerance levels of the India’s housing credit market is estimated at H27.8 trillion.
RBI and resulted in a series of rate hikes by the apex bank. The post-pandemic drivers of the housing sector comprise
increasing preference towards owning a home, lower interest
India’s growth outlook for FY24 remains positive, owing to rate regime and pent-up demand, among others.
a favourable policy push by the government and sustained
The home loan market in India is expected to grow by 14%*
private consumption growth. The economy projects a
over the medium term due to factors such as increasing
baseline GDP growth rate of 6.5% in real terms for FY24. The
affordability, urbanisation, and expansion to locations beyond
opening up of the Chinese economy towards the end of 2022 Tier-I cities. As India’s population grows, incomes rise
indicated the gradual normalisation of the global supply chain. and household sizes shrink, there could be a demand for
A healthy balance sheet of the financial and corporate sectors additional 26-27 million homes from 2022-2031. Further,
is expected to kick-start a healthy upward financial cycle. there is a shortage of existing homes, creating a need for
Further, digitalisation reforms and the resulting efficiency upgrades and resale demand, all contributing to the demand
gains in terms of greater formalisation, higher financial for housing. Even though the housing loan penetration rate
inclusion, and more economic opportunities will be another in FY23 remained steady at 10.5%, which is comparable to
reason for the country’s economic growth. It is expected the rate of 10.6% in FY22, it still falls significantly short of
that India will continue to be one of the fastest-growing the rates seen in developed markets such as the US, UK, and
economies in the world. China. By FY30(E), outstanding housing loans are expected
to reach H72 trillion, implying 14% CAGR over FY22-30E and
financing of incremental ~23mn housing units in India.
Affordable housing segments are driving incremental growth,
with lower-ticket housing loan disbursement growing by
25% YoY during FY23 (till Dec’22) mostly in tier II cities and
beyond. The growth in affordable housing finance is driven by
expansion and increasing penetration rather than rate cycles
or market growth.
Overall, the housing finance sector in India is expected to see
sustained growth in the coming years.
*Source: ICRA Indian Mortgage Finance Market Q2 FY2023
Trends in housing credit
28.0 26%
26.0 19.0 24%
24.0 17.7 22%
22.0 15.7 20%
20.0 18%
18.0 14.1
12.2 16%
16.0
14%
14.0 10.3
12%
12.0
10.0 10%
8.0 8%
8.3 8.8 6%
6.0 7.1
6.2 6.5 4%
4.0 5.5
2.0 2%
0.0 0%
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Sep-22
Housing Credit: HFCs Housing Credit: SCBs

Growth: HFCs Growth: SCBs Growth: Overall
Source: Indian Mortgage Finance Market Report by ICRA as of September 30, 2022

Accelerated growth in the affordable portfolio (` in crore)

AFFORDABLE HOUSING SECTOR IN
80,000 76,598 18% SWEET SPOT
68,702 India’s growing younger population,
70,000
50%
58,323 increasing per capita income and rising
60,000
51,313 demand from beyond the top seven cities
40%
50,000 44,528 are key growth drivers of the country’s
40,000 36,439 30% housing sector, especially in the affordable
segment. Additionally, the increasing rate
30,000
20% of urbanisation and subsequent shortage
20,000 in urban dwellings have accelerated the
10,000 10% demand for residential units in the affordable
category. The Housing for All scheme by the
0 0%
Indian government is also acting as a growth
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Sep-22 catalyst for this sector. Case in point: the

demand for home loans below H25 lakh is the
HL NHL Growth On-Book POS highest in the sector accounting for two-
Source: ICRA thirds of the disbursement volumes.
Growing per Source: Morgan Stanley

capita income:
>2x growth
between 2020
and 2031
Low Housing Decline in

mortgage
sector growth average house-
penetration
drivers hold size
rate
Highest share
of population in
the working age BUSINESS OVERVIEW
category
PNB Housing Finance Limited, in the last few
years, has strengthened its processes, leveraged
digitalisation to drive superior customer experience
Significant opportunity in mortgage penetration and expanded its operations into new segments. We
(%) have embarked on an accelerated growth path with
a stable foundation to support our aspirations.
83
Growing strength to strength with our
68 strategic priorities
56
52 As we chart our path for growth, we are keenly
44 45 attuned to market trends and strategically planning
34 39
our approach for FY24. Our focus lies in the retail
18 20 segment, where we anticipate maximum room
11
for expansion, while potentially reducing our
exposure in the corporate books. By aligning our
Germany
India
China
Thailand
Malaysia
Japan
Singapore
Australia
Denmark
USA
UK
strategic pillars, we are poised to capitalise on

opportunities, optimise our resources, and drive
sustainable growth.
Source: CRISIL


ACCELERATE GROWTH BY FOCUSSING EXPAND AFFORDABLE HOUSING LOAN
ON RETAIL LENDING AND LEVERAGING OFFERING
OUR EXPERTISE IN THE RETAIL LOAN To capitalise on the favourable market conditions for
SEGMENT affordable housing, we have strategically focused on
expanding our offering in this segment. As part of
We are accelerating growth by leveraging this strategy, the Company introduced a specialised
our expertise in the retail loan segment. With division called “Roshni”, which is designed to cater
the double-digit industry growth, we aim to specifically to the needs of individuals seeking
maximise opportunities in both prime and affordable home loan solutions.
affordable segments. Our focus on the retail
Expanding our affordable housing loan offering
segment led retail disbursements to be 99% of
allows us to tap into a growing market and make a
the total disbursements done during the year.
positive social impact by enabling home ownership
The Retail Loan Book grew by 9.8% during the
for salaried and self-employed individuals. We are
year, reaching J55,471 crore compared to the
focusing on strengthening our distribution network
previous year. In FY23, the average ticket size
by increasing our presence in tier II and tier III cities.
for individual housing loans was J29 lakh, with
the salaried segment representing 71% of the
Key Developments
total.
• Built a separate affordable vertical with dedicated
Key Developments sales, credit, collections and operations
• Implemented ACE, a digital platform that enables • Identified and successfully operationalised new
secure and efficient onboarding of new retail locations to expand the Roshni-focused network
customers without physical paperwork or contact
• Target Average ticket size of H15-17 lakh for
• Successfully maintained an average ticket size customers in the affordable segment
of H29 lakh in our product offering, ensuring
suitability for our target market • Target Operating model in place with requisite
policies and processes
• Boosted login numbers to support business
growth, indicating increased customer
engagement and potential for expanded
market reach
• Targeted online marketing campaigns, engaging

content, choice of media channels, and
segmentation for better customer engagement
9.8%
YoY growth in retail segment
82
Roshni-specific branches
93.6%
Of Loan Book is retail
K137 crore
Disbursement under Roshni


ENHANCE UNDERWRITING AND ACCESS TO DIVERSIFIED FUNDING
COLLECTION FRAMEWORK TO SOURCE
STRENGTHEN THE CREDIT QUALITY We continue to maintain adequate capitalisation
We recognise the importance of accurate and levels to borrow from multiple sources at
coherent underwriting processes in mitigating risk competitive rates. During the year the Rating outlook
and ensuring loan repayments from customers. was changed to ‘Stable’ from ‘Negative’ by ICRA,
By leveraging digital and analytical tools, we aim CRISIL and India Ratings.
to further strengthen our underwriting processes
and improve the accuracy and efficiency of loan At PNB Housing Finance, we are constantly evolving
assessments. Additionally, we have implemented to meet the changing needs of our customers and
a streamlined procedure for recovering delinquent the industry as a whole. Our focus on strategic
loans, reducing the time and resources needed growth coupled with our dedication to monitoring
for overdue payment collections. Overall, the and improving key performance indicators allows
strategy focuses on utilising technology to enhance us to remain at the forefront of the housing finance
operational efficiency and the quality of our sector.
loan portfolio.
Key Developments
Key Developments • Successfully completed capital raise through
• Leveraged advance analytics and digital tools to Rights Issue of H2,493.76 crore in May 2023
automate credit appraisal journey • Maintained adequate gearing ratio and Capital to
• Augmented collections efforts led to improvement Risk Asset Ratio (CRAR)
in Gross and Net NPA
• Maintained sufficient provisions to ensure

adequate coverage
98.6% 3.83%
Retail collection GNPA as on
4.87x
Gearing as on
24.43%
Capital to Risk Asset
efficiency 31st March 2023, 31st March 2023 Ratio
reduced by 430 bps YoY

Strategic pillar 5 93.6% of Total Loan Asset. The Loan Asset stood at H59,273
crore, registering a growth of 2.4% YoY. The Asset under
Management was at H66,617 crore as against H66,983 crore
DRIVE GROWTH THROUGH
the previous year.
DIGITALISATION FOR BETTER CUSTOMER
Further, our return ratios improved significantly during the
ENGAGEMENT
year. The Spread on Loan Assets was 2.81% vs 2.12% last
By embracing digital tools, we can streamline year, and NIM was 3.73% vs 2.80% last year. Overall, ROA
our operations and deliver personalised improved significantly to 1.61% vs 1.24% in the previous
solutions to customers. Through targeted data financial year. The average cost of borrowing during the year
analysis and automation, we can effectively stood at 7.47%, reflecting a 17 bps increase over FY22 on the
identify the specific needs of each customer back of an increase in repo rate by 250 bps during FY23.
and tailor our offerings accordingly. By Our concerted efforts in strengthening our balance sheet
harnessing the power of technology, we over the years showed positive results. During the year, we
are well-positioned to enhance operational have further reduced our gearing and significantly improved
efficiencies and provide a seamless experience our CRAR. As on 31st March 2023, with the improvement in
to our customers. the external environment, the Company reduced its cash and
cash equivalents in FY23 as compared to FY22. The Company
Key Developments
had over H4,000 crore as cash and cash equivalents as on 31st
• Enhanced our website and launched a customer March 2023. The Company also has sanctioned and undrawn
mobile app to provide a better experience and lines as on 31st March 2023. Our deposits during the year
seamless interactions to our customers. de-grew 2.5% YoY and reported at H17,248 crore in line with
• Introduced rule-based sanction for digitising our strategy to maintain funding concentration as per our
credit and implemented Straight Through approved liquidity risk policy. During the year, we sourced
Processing (STP) for certain cohort of around 71,688 deposit applications amounting to a total of
loan applications. H6,068 crore.
• Optimised digital platforms, incorporated In May 2023, the Company successfully completed the Rights
WhatsApp for seamless communication, utilised Issue of H2,493.76 crore with a subscription of 1.21x. Our
remarketing strategies, all aimed at enhancing the top-4 investors viz. PNB (promoter), Carlyle, Ares SSG and
customer experience through web marketing and General Atlantic participated in the Rights Issue. Apart from
personalised offers. this, we have witnessed the participation of large domestic
and foreign institutional investors. With this capital inflow,
• Maintained higher engagement through the capital adequacy ratio will further improve. The proceeds
WhatsApp, chatbot, personalised content and from the capital raise will be utilised to fund strategic growth
marketing automation plans and capitalise on the available growth opportunities.
• Introduced lead scoring and RO mobile app for
better lead to conversion ratios ENHANCING OUR RETAIL LOAN BOOK
Over the past few years, we have heightened our focus on
Key Performance Indicators the retail loan business, which has been primarily divided into
two categories –prime and affordable segment. Under the
33%
prime segment, we cater to Individuals to fulfil their housing
requirements and offer loans against properties to customers
for meeting their immediate financing needs. The affordable
Improvement in customers accessing segment is a separate vertical under the ‘Roshni’ brand.
customer portal and mobile app for self Under the retail segment, the Company is focussing on the
service salaried segment resulting in an increase in the salaried
segment to 59% of retail loan book as on 31st March 2023 as
COMPANY’S PERFORMANCE IN THE YEAR compared to 56% as on 31st March 2022.
During the year, we sanctioned 71,839 loan applications, The Retail Loan Book grew by 9.8% to H55,471 crore as
reflecting a 25.2% increase over the previous year. We compared to the last year. The retail contribution to the total
disbursed loans amounting to H14,965 crore, an increase of loan book has increased to 93.6% in FY23 as compared to
33.1% over the corresponding period last year. With a focus 87% in FY22.
on the retail segment, the Retail Loan Asset grew by 9.8% in
FY23 to H55,471 Crore as on 31st March 2023 representing

Individual housing loans Retail loan against property

In the individual housing loan segment, we are focusing Retail loans against property for the year saw a 40.9%
largely on the salaried class of customers. With an average increase in total disbursements to H3,146 crore. The segment
ticket size of H29 lakh in FY23, the salaried segment accounted for 21% of the total disbursements during the year.
accounted for 71% of the individual housing loan segment. With a focus on the granularisation of the book, the Average
During the year, we have introduced Straight Through ticket size for the segment stood at H33 lakh reduced from
Processing for the salaried segment, to fast-track the loan H36 lakh as on 31st March 2022. The weighted average LTV
approval process for customers. Our conservative approach was maintained below 50%. Further, the focus on the salaried
towards underwriting and disbursement led to an LTV for segment resulted in a reduction in the self-employed segment
individual housing loans at 71% as on 31st March 2023. to 73% of the retail LAP book as compared to 78% as on 31st
March 2022.
ATS of individual housing loan Retail non-residential premises loan (NRPL)

Retail NRPL includes loans given for the construction of
1.43% 0.98% 0.87% commercial properties. With ATS of H37 lakh for the year
4.58% 4.06% 4.01% reduced from H39 lakh as on 31st March 2022, the segment
7.06% 6.60% 6.92%
accounted for 4% of the total loan asset at the end of the
4.97% 4.77% 5.20%
financial year under review.
33.74% 34.10% 35.80%

Affordable Segment - Roshni
Aligned with the Central Government’s mission of ‘Housing
for All’, the affordable segment was launched under the brand
‘Roshni’, to fulfil every individual’s aspiration of owning a
home. Roshni is proof of the company’s dedication to last-mile
48.22% 49.50% 47.19% financial inclusion and is designed to cater to the needs of
aspiring homebuyers who are looking for affordable financing
options. The target average ticket size for this segment is
March 2021 March 2022 March 2023
H15-17 lakh. With dedicated 82 branches in 150+ districts
Upto30 Lakh 30-75 Lakh 75-100 Lakh and over 500+ locations across the country, the business is
concentrated in 8 regions based on potential demand. Under
100-200 Lakh 200-500 Lakh >500 Lakh
this programme, loans ranging from H5 lakh to H35 lakh are
provided for the purchase of a home, self-construction,
home extension/renovation, plot purchase plus construction,
ATS of retail loan against property loan against property, and other purposes. The underlying
objective of Roshni is to widen the customer base by
including new-to-credit applicants, with a household income
16.00% 12.43% 9.36% starting as low as H10,000 a month and having serious intent
to pay. Roshni offers a customer-centric approach to housing
12.31% finance, with a robust service delivery model, minimal formal
14.37%
17.52% income documentation, flexible loan tenure, high loan-to-
10.98%
11.85% value ratio and competitive interest rates, backed by a trusted
6.10%
13.39% 6.77% brand with close to four decades of experience.
19.68%
6.77%
21.62%
19.92%
26.41% 32.96% 41.58%

82
Dedicated Roshni branches as on
March 2021 March 2022 March 2023
31st March 2023
Upto30 Lakh 30-75 Lakh 75-100 Lakh
100-200 Lakh 200-500 Lakh >500 Lakh

• Enhanced customer lifecycle management, encompassing

lead generation, streamlined application processing,
efficient customer servicing, effective cross-
selling, robust retention strategies, and strengthened
collection processes.
• Contact centres serve as an additional distribution channel,

seamlessly integrating digital marketing leads into the lead
management system, and providing pre-qualified leads to
support our customer relationship officers.
• Implemented channel engagement initiatives to strengthen

the share of the DSA channel. Energised DMA partners
in the previous fiscal year, leveraging a balanced mix of
proprietary and DMA channels. Strengthened relationships
CORPORATE LOANS
with partners by meeting their specific requirements.
As a strategy, the Company was reducing its corporate Expanded business by engaging corporate and
book which has declined by 48% in FY23. The corporate smaller DMAs.
book is at 6.4% of Loan Asset as on 31st March 2023 as
compared to 12.7% as on 31st March 2022. As of 31st March • Created a dedicated channel for our affordable housing
2023, the corporate book accounted for H3,802 crore of the business, ‘Roshni’. We have dedicated branches to drive
Loan Asset. our business operations through this channel.
Corporate loans (H crore) (% of Total Loan Asset)
12,000
41%
Of business received from DSA channel
in FY23
7,375
3,802 Disbursement origination
FY21 FY22 FY23
In-House 59%
FY21 FY22 FY23
DSA 41%
19% 12.7% 6.4%
Diverse distribution channels with widespread

geography mix
As a de-risking strategy, we have a multi-channel sourcing
model, with a wide geographic spread. We source our Loan Asset geographical breakup
business primarily through two channels - the in-house team
and Direct Selling Agents (DSAs). We continue to introduce
innovative digital tools and strategies to enhance the
productivity of both channels.
North 34%
Some of our impactful initiatives
South 29%
• Implemented acquisition strategy to enhance sales
West 37%
capabilities by focusing on branch performance, identifying
non-performing branches, setting targets, and improving
overall productivity.

Disbursement geographical breakup
Making
North 34%
South 32%
West 34%
Overall, we have made great strides in expanding our

geographical presence, with a wide network across 138
dreams for
millions
cities and 20 states and UTs in India. As of 31st March 2023,
we have established a presence through 162 branches,
27 outreaches and 22 hubs for credit decision-making. In
addition, with over 14,000 active channel partners for loans
and deposits, we are attractively positioned to serve the
needs of a diverse range of customers across the length and
breadth of the country. These achievements are a testament
to the Company’s commitment to providing accessible and
come true.
affordable housing finance solutions to our customers.
Branches & Outreaches
As on 31st Mar 23 189
As on 31st Mar 22 137
MARKETING STRATEGY HOW WE PLAN TO DO IT!

We have developed a well-defined marketing roadmap based
on three objectives to maximise growth – sourcing support Community Building
for the retail & affordable housing business areas, building the Social media and moment marketing based video
corporate brand reputation and establishing brand salience content for high engagement and brand love to
through sustained awareness and engagement initiatives. By enhance brand imagery
adopting an omnichannel approach leveraging both offline and
online marketing techniques, we are focusing on full-funnel Affinity based media
targeting to achieve greater visibility for the brand. High affinity media selection based on geographical
location - print, TV, radio, OOH, digital
As consumers are relying more on online platforms to manage
their finances, businesses need to strengthen their digital
Golocal
strategies to remain responsive to the rapidly evolving market
Content localisation and focus on regional media
dynamics. Our digital and social media strategies are designed
for improved consideration levels
to capture consumer attention at various touchpoints and cater
to their changing preferences by creating compelling content to Multi-platform marketing campaigns
maximize its reach and impact. Leveraging both online and offline platforms to
Our ISO-certified contact centre has developed as a crucial generate better visibility for the brand
mode for customers to get quick service, right from enquiries
to complaints to fraud reporting. We have a strong team of 60+ Reputation management
executives that source pre-filtered leads for the in-house sales Sustained efforts for building a positive reputation
channel, generating over sixty thousand OTP-verified loan through PR engagement
enquiries per month. Our lead-to-login conversion rate is close
Performance-led acquisition strategy
to 25% which is much higher than the industry average.
Blogs, SEO, SEM, emails, affiliate marketing, social
Additionally, we also work with new-age online business media marketing
partners like Paisabazaar, LoanTap, NoBroker, Andromeda,
Spoctree, etc. to generate new leads from their customer base.

are made electronically, among other improvements. During

the year, we mobilised fixed deposits from over 76,000
customers with an average TAT of t+1 days from cheque
clearance to the issuance of FD receipt.
ENABLING DIGITALISATION TO SMOOTHEN THE

PROCESS
We have fully embraced digitalisation across all aspects of our
business, recognising its profound impact on our customers
and internal operations. By continually improving our digital
landscape, we aim to elevate our customer service and enable
data-driven decision-making throughout our value chain.
In line with this commitment, the company has implemented

cutting-edge technology and security solutions. The existing
digital landscape is being rapidly modernised to meet the
scalability and agility requirements of our growing business.
To manage information security risks, we have implemented
an Information Security Management System certified to ISO
27001:2013 industry standards. We have also bolstered our
cyber security posture through the implementation of various
controls, tools, and policies.
We have centred our digitalisation efforts around four pillars

– enhancing operational efficiency, digital transformation,
compliance and information security, and customer
experience enhancement.
PHFL HOME LOANS & SERVICES LIMITED
Key initiatives undertaken during the year
(PHFL)
We have implemented various micro initiatives aimed at
With a view to reduce our dependence on external sources
improving stability and optimising processes. These initiatives
for new customer acquisition, we floated a wholly-owned
involve streamlining workflows, eliminating bottlenecks, and
subsidiary for sales and distribution for PNB Housing
automating manual tasks. By identifying areas of improvement
Finance. PHFL accounted for 74% of the disbursements
and implementing targeted solutions, we aim to enhance the
during the year under review.
overall efficiency of our operations.
Centralised Operations Digital transformation: We have invested significantly in digital

Our Centralised Operations team ensures operational transformation and around below focus areas:
excellence and is divided into two business units: Central • Sales and distribution: We are building digital tools to drive
Processing Centre (CPC) and Centralised Operations (COPS). the productivity of our distribution team – both in-house
The CPCs are located in Mumbai, Bengaluru, and Noida and and DSA/DMAs. This will help our partners right from
serve as the repository for customer documents such as loan onboarding to training to lead management to conversion.
files, deposit applications, repayment pouches, and business • Underwriting: We have successfully implemented the
partner applications. The CPC handles around 16,000 service business rule engine to automate our credit rule book,
requests each month including loan closure and refund enabling us to standardize and streamline our underwriting
claims, within pre-defined timelines. As a responsible lender, process. By eliminating subjectivity, we have achieved
we ensure the safety of sensitive data and have digitised greater consistency in our credit assessments and have
customer records for security. We have scanned and stored begun to implement straight-through processing for select
original loan documents of all 2.76 lakh customers on the customers, improving our operational efficiency and
cloud, thus providing faster service and mitigating the risk of enhancing the customer experience.
loss or transit damage of original documents.
• Customer service: We are launching various touch points
The COPS team processes deposit insurance reconciliation, for engaging better with our customers. We revamped our
pay-out processing, customer correspondence, and channel customer portal ACE 2.5, launched our mobile app, and
partner empanelment. We provide a paperless environment, integrated NPS into our customer survey channels.
where deposits are processed through images, and payments

• Compliance and information security: We are migrating CUSTOMER CENTRICITY

towards Zero Trust Architecture where every transaction We remain committed to delivering unparalleled customer
will be validated in a seamless manner. service that reflects our unwavering dedication and
professionalism. At the core of our onboarding, engagement,
• Customer experience: We are committed to enhancing our
and retention activities lies customer service, which we
customers’ digital experience by creating a cutting-edge
consistently strive to enhance. Our omnichannel approach
digital asset. We have revamped our customer portal and
ensures that customers can engage with us at their
also launched a customer mobile app (for both Android
convenience, whether through our branches, contact centres,
and iOS users) that provides complete visibility of loans,
email, or customer portal.
deposits and all relationships of a customer with PNBHFL.
These digital platforms also provide several self-service
70%
options like downloading schedules, tax certificate, loan
account statement and initiate changes to communication
address etc. We have seen improvement in customer
usage of these platforms given the seamless experience Of monthly requests availed through digital
that is now being delivered to our customers. For the first channels during FY23
time, we have also proactively delivered the income tax
provisional certificates to our customers on WhatsApp
during January and February period to simplify access to Despite having an extensive customer database, we faced
these critical documents for our customers. As part of our challenges with customer retention due to the general
customer-centric approach, we are also in the process of macroeconomic conditions and rate hikes. To address this
launching a WhatsApp bot to facilitate easy communication issue, we created a “retention war-room” to proactively
with our customers. educate our customers about current trends, elaborate
on the best available options, and assist them in making
• Introduced new technology: We embraced a new initiative informed decisions. These efforts have proven fruitful as
into technology by implementing ALGO, a digitised credit we successfully reduced the run off percentage from 24% in
policy administration initiative, integrating a robust FY22 to 19.4% in FY23.
business rule management system with core processing
systems for housing loan disbursements. This enhanced We take pride in TALISMA, our ERP-integrated customer
operational efficiency, enabling seamless STP of home relationship management module, which enables us to
loan applications through API-based decision making and benchmark turnaround time and maintain our service delivery
dynamic rule-based assessments using FICO rule engine. within the promised timeframes. Our simplified IVR call menu
and its self-service options extend round the clock. The
system even identifies the caller’s phone number, helping
reduce verification layers. Our ‘call back’ option introduced in
FY22, has enhanced customer experience and also ensured
zero missed calls.
Wait Time – 1
Technology min 14 secs
Initiative of
the Year
Which reduced from 3 mins in FY22
Given for ACE at Mint|TechCircle Business

Transformation Award 2022

Over 62,000 beneficiaries/borrowers have received PMAY In addition to the above, we have also taken the following
subsidy over a period of 6 years. PNB Housing Finance steps to improve our customer centricity:
has helped these borrowers in their journey of building
• E
nabled banker platform (Major banks are now equipped to
their dream homes. Furthermore, we introduced video
facilitate this payment mode)
KYC, providing an end-to-end digital, paperless, and zero-
contact customer onboarding process. It also helped us • Enabled QR Code and UPI for faster payments
control customer drop-off rates and reduce turnaround
• Participation in monthly forums of NHB where we come
time, providing a touchless transaction option for our
to know about best practices from other players and
customers. We have also provided critical documents like
implement it to improve customer service
our Fair Practice Code in vernacular languages for customer
convenience and ease. • Introduced a multilingual website, available in 6 vernacular
languages – Hindi, Marathi, Tamil, Telugu, Malayalam
One of the key retention strategies for the year was offering
and Kannada
pre-approved top-up loans to our customers. We created
a dedicated underwriting team for top up loans to help in • We have enabled documentation in Braille for visually
upselling and improving our books. Besides this, we have impaired customers
started disbursing loans through RTGS and introduced
• C
ompleted digitisation of historical documents
eNACH for EMI payment to provide ease of service to
of customers
our customers.
We believe that these initiatives will help us to further
We have also taken steps to train our channel partners and
improve our customer service and provide our customers
sensitise them towards customer complaints. This has
with the best possible experience.
effectively reduced escalation of grievances to the next
level by 21% in FY23, and facilitated regional level grievance
redressal structure.
FINANCIAL PERFORMANCE
Consolidated performance indicators (as per Ind AS)

Particulars (J in crore) FY 2022-23 FY 2021-22 Change
Net Interest Income* 2,345.54 1,868.92 25.5%
Fee and Commission Income (Net of Fees and Commission Expense) 271.74 251.43 8.1%
Other Income 2.33 4.8
Gross Income 2,619.62 2,125.15 23.3%
Operating Expenditure 519.78 456.97 13.7%
Impairment on assets held for sale 47.65 7.86
Operating Profit 2,052.19 1,660.32 23.6%
Impairment of Financial Instruments and Write Offs 691.28 576.36 19.9%
Profit Before Tax* 1,360.91 1,083.96 25.5%
Profit After Tax* 1,046.00 836.48 25.0%
Other Comprehensive Income (Net of Taxes) 77.06 97.3 -20.8%
Total Comprehensive Income 1,123.06 933.78 20.3%
Basic Earnings Per Share (H) 62.01 49.64
*Net Interest Income, Profit Before Tax & Profit After Tax increased by more than 25% on account of higher yield and lower interest expense.

Key financial ratios

Particulars FY 2022-23 FY 2021-22 Change
Average Yield 10.28% 9.42% 86 bps
Average Cost of Borrowing 7.47% 7.30% 17 bps
Spread 2.81% 2.12% 69 bps
NIM 3.73% 2.80% 93 bps
GIM 4.06% 3.16% 90 bps
Cost-to-Income 18.67% 20.24% (157) bps
Return on Asset 1.61% 1.24% 37 bps
Return on Equity 9.98% 8.92% 106 bps
Total Provision/Total Asset Ratio 2.42% 4.42% (200) bps
Gearing (x) 4.87 5.37 (50) bps
Book Value Per Share 652.26 585.51
CRAR* 24.43% 23.40% 103 bps
Tier I Capital 22.40% 20.73% 167 bps
Tier II Capital 2.03% 2.67% (64) bps
Risk-Weighted Asset (H in Crore) 42,289 40,604 4.10%
*Provisional Post Rights Issue CRAR is ~30%
Enhancing our underwriting capabilities This system allows us to approve loans quickly and efficiently,
Over the past few years, we have made consistent efforts while still maintaining our high standards of creditworthiness.
to strengthen our underwriting capabilities. We have used We have also implemented a straight-through-processing
advanced analytics and digital tools like Fusion, Perfios, (STP) journey for both Roshni and Prime segments, but
Hunter, and Credit Vidya to make the process more robust with different credit guidelines as per the segment. This
and accelerate the approval process. In addition, we have has helped us to improve the efficiency of our underwriting
implemented a green channel processing system for process and reduce the time it takes to approve loans.
high-quality loans.
How are we strengthening underwriting to collections
SPECIALISATION CUSTOMER PROFILING OTHER MITIGATING

• Professionally qualified with vast • Selective approach to MEASURES
mortgage experience customer profiling • Mark-to-market policies with
• Stable and vintage cadre of • Evidence-based income tailormade offerings
senior personnel assessment and established • Multiple checks and balances with
banking relationships maker-checker approach
• Specialised roles, distinguished
responsibilities and collective • Seasoned mass affluent • Workflow based assessment on
decision making customers with multiple assets single IT platform
and credit tested
• Predictive service standards • Use of technology verification of
• Mandatory touch base with self- customer data points and geo-
employed customers at their tagging of properties
work premises

We are committed to providing our customers with the best

possible underwriting experience. We will continue to invest
in our underwriting capabilities and strive to be the leading
3C APPROACH: COUNSEL, COLLECT provider of underwriting services in the industry.
AND CURE
Efficiently driving recovery to strengthen asset quality
• Periodic portfolio scrub for early warning signs
Asset quality has remained one of the key concerns for the
• Efficiencies through centralised banking company in the past few years. We realigned our recovery
process with the target to enhance overall quality of the book.
• In-house Contact Centre
We automated the collection system with rule-based engine
• Special cadre for resolution through legal tools and use of advanced analytics. We bucketed the risky assets
through stringent portfolio monitoring and arrested slippages.
• Collections on the go through mobility for
We focused on the initial bucket and deployed host of
effective supervision
initiatives like tele calling, phone and text alert. We introduced
digital repayment channels for ease of recovery. We strictly
implemented SARFAESI for NPAs and embarked on prompt
Our scalable hub and spoke model is designed to facilitate notice issuance, possession and auction of properties. All
customer acquisition and servicing through integrated these efforts have helped in improving the asset quality; our
modes of communication, ensuring a seamless experience gross NPA reduced by 430 bps to 3.83% as on 31st March
and expedited issue resolution. We have established 2023 from 8.13% as on 31st March 2022.
regional decision-making hubs that enable efficient credit
appraisals, loan decision-making, and underwriting vendor
platforms. These platforms assist our partners on the go,
leveraging various tools to streamline processes. In our post-
disbursement activities, we prioritize customer convenience
98.6%
Retail collection efficiency
and efficiency, with an impressive 93% resolution rate within
the specified turnaround time (TAT). This customer-centric
3.8%
approach enhances satisfaction by addressing requests
promptly and fostering a smoother experience throughout the
customer journey.
Gross NPA for FY23
Our credit underwriting, monitoring, and collection
processes are well-established and streamlined. During
loan underwriting, we perform KYC checks, credit history
assessments, and verify income through salary slips or tax
returns. The Financial Crime Unit (FCU) conducts customer
verification, while technical valuations and checks ensure
accuracy. Loan disbursement involves executing loan
agreements, preparing equitable mortgage documents,
and setting up electronic clearance instructions for EMIs.
Portfolio monitoring includes analysing delinquency aging and
early warning indicators for loans with higher delinquency
rates. For asset recovery, we employ soft collections,
repayment demands, field visits, and review of security
documents. Severe delinquencies lead to hard collections
and SARFAESI actions, such as notice issuance and property
auctions. Our comprehensive approach ensures efficient
credit management and effective recovery.
As a result of these efforts, we have been able to achieve a

high level of delinquency arrest. In the last couple of years,
we have arrested 97-98% of opening delinquency. We have
also maintained a strong legal record, with no major legal
issues in the last couple of years.

FUNDING MIX Well Diversified Borrowing Profile

Fund is the key raw material for any financing company.
Our funding mix comprises debt market instruments [non-
convertible debentures (NCDs) forming around 10%, of 9.8
14.4
the funding mix as on 31st March 2023], deposits around
32%, bank borrowings around 42%, National Housing Bank
refinance around 6%, and external commercial borrowings
around 10%. The increase in borrowing cost in the market led 32.1
33.3
to an overall increase in our cost of funds. About 67% of our
resources are in the floating category, helping replace and
reprice whenever there is an attractive opportunity. 10.2
11.3
During the year, ICRA, CRISIL and India Rating updated the
credit rating outlook for the debt instruments and banking
facilities to ‘Stable’ from Negative. Further in Q4FY23 the
Company has raised H150 crore of NCDs and 50 crore of
33.3 42.2
Commercial Papers. The Company will endeavour to look for
further diversifying the funding mix.
8.8 5.7
Borrowing Mix Borrowing Mix

31st March 2022 31st March 2023
NHB Refinance Loan from Banks ECBs

Deposits NCDs
Making our balance sheet robust

We have further strengthened our balance sheet through
deleveraging initiatives and reducing the load of high-risk
weight assets on our capital. The gearing as on 31st March
2023 stood at 4.87x against 5.37x reported as on 31st March
2022. Our CRAR stood for the year was 24.43% as on 31st
March 2023, much beyond the limit mentioned by the RBI.
Liquidity and asset-liability management

To finance our growth, we utilised various resources such
as long-term bank borrowings, CP, NCDs, and deposits. To
ensure liquidity coverage for a minimum of three months, we
maintained sufficient liquidity throughout the year. As of 31st
March 2023, we had surplus liquidity of over H4,000 crore
and additional sanctioned but undrawn lines of more than
H2,500 crore.
7.47%
Average cost of borrowing for FY23
Bank borrowings
Bank borrowings remained the largest source of funds for
the Company. During the year, we borrowed H11,738 crore as
long-term loans from both private sector and public sector
112%
banks. We also have H5,900 crore of sanctioned working
capital limits from various banks. Our total outstanding
bank loans as on 31st March 2023 stood at H22,654 crore,
Average liquidity coverage ratio for FY23 accounting for around 42% of the total borrowing.
maintained against stipulated 60%

Deposits External commercial borrowings

We are the third largest deposit book holder housing finance No fresh ECB was raised during FY23. The outstanding
company in the country. We also provide loan against balance of ECB stands at H5,508 crore as on 31 March 2023.
deposits. During the year, we sourced gross deposits to the
tune of H6,068 crore. Deposit contributes around 32% to the Securitisation
total borrowing. The outstanding Loans Sold/Assigned amounted to
H7,186 crore as on 31st Mar 2023. During the FY23, the
Non-convertible debentures Company did not securitise any new loan and currently there
The Company reinitiated borrowing through wholesale debt are no plans to securitise. The plan is to grow the retail book
market in Q4 FY23 and mobilised funds through NCDs. The going forward.
Company mobilised H150 crore in FY23 against H455 crore in
FY22 through the issuance of secured, rated and listed NCDs. NHB refinancing
The Company plans to increase its borrowings through NCD During the FY23, the Company didn’t avail any refinancing
in the next financial year. facilities from NHB. The balance outstanding of facilities
availed from NHB is H3,046 crore.
RISK MANAGEMENT
Effective management of risk is an integral component of our The Risk Management Committee of the Board regularly
business strategy. To ensure that we address potential risks reviews the effectiveness of our risk management framework
and uncertainties across our business and portfolios, we and takes necessary corrective actions. The key business
have established a comprehensive risk management process risks we face include credit risk, liquidity risk, reputation
at PNB Housing Finance. Our risk management framework is risk, and technology risk. We remain vigilant in identifying
implemented across all functions and enables us to manage and addressing these risks to ensure sustainable growth for
and mitigate risks effectively. Our risk management approach our business.
includes various measures such as risk assessment, risk
appetite framework, risk planning, risk culture, internal
controls, and robust governance.
Key Risks Our Response

Credit Risk
A risk that a company faces when its customers or counterparties We established a robust framework that identifies, assesses,
fail to meet their obligations to the company, including making full measures, monitors, controls, and reports credit risks in an effective
and timely payments of principal, interest, and other receivables. manner. We are fixing accountability of business units for effective
The failure of customers to meet their obligations can result in credit risk governance and customising risk measurement approaches
significant financial loss for the Company. for various portfolio segments/sub-segments to ensure the risk is
appropriately assessed. We can now observe early warning signs of
delinquency and taking proactive measures to maintain asset quality.
Further we are consistently reviewing Key Risk Indicators (KRIs) of
concentration and delinquency to stay ahead of potential risks and
reviewing and aligning underwriting policies and processes with the
dynamics of the business environment at micro levels to ensure risk
mitigation strategies are up to date.
Market Risk
A potential financial loss a company may face due to adverse To manage our liquidity effectively, we have invested in short-term
changes in the value of its assets and liabilities resulting from Fixed Deposits (FDs), as well as short duration Mutual Funds like
fluctuations in market variables such as interest rates, foreign Overnight Funds, Liquid Funds, and Money Market funds. In compliance
exchange rates, credit spreads, implied volatilities, and asset with Liquidity Coverage Ratio (LCR) regulations for housing finance
correlations. companies, we have been investing in central Government securities.
Keeping a close eye on the interest rate scenario, we have invested in
Government Securities of shorter durations to avoid potential Mark-
to-Market (MTM) losses due to rising interest rates. With a proactive
approach to liquidity management, we ensure financial stability and
can navigate market volatility with ease.

Key Risks Our Response

Reputation Risk
The actions, decisions, or events that affect customer trust in a We continuously engage with all stakeholders, including employees,
brand. It can arise from a range of factors including poor customer customers and suppliers, to identify potential risks and implement
service, ethical breaches, negative media coverage, or involvement preventive measures. We have a dedicated team that can be tasked
in controversial activities. with addressing customer complaints and resolving issues in a timely
manner. Additionally, a mechanism for recording and reporting risks
helps us track the risk exposure and develop effective mitigation
strategies. By taking proactive steps to identify and manage operational
risks, we protect our reputation, reduce losses, and improve our overall
performance.
Liquidity Risk
The Company’s inability to meet its financial obligations due to To mitigate the risk, we hold optimal liquidity levels to manage our
inadequate financing. To manage this risk, companies need to business requirements and maturing debt obligations. It also secures
assess potential gaps and maintain adequate reserves. It involves longer-term debt to manage the asset-liability mismatch. Projected
adjusting financing strategies in response to market conditions. cashflow planning is discussed with the business to ensure adequate
Proactive risk management can help companies avoid financial flow of funds. In addition, a ‘liquidity contingency plan’ is in place
disruptions and ensure they have the resources to support their to address any adverse liquidity position. We maintain relationships
operations with various debt providers to manage the reputation and employ
a diversified and sustainable funding mix. To further support these
measures, a strong market feedback mechanism is utilised by the Asset
Liability Committee (ALCO) to discuss and implement policy tools.
Technology risk
The risk arises from the potential loss or disruption to the We have aligned several strategies in place to mitigate the technology
Company’s operations due to outdated systems, system failures, risk. We are committed to continuously upgrading and investing in
and the ever-evolving cyber threat landscape which includes risks technology and security to ensure that systems are up-to-date and can
associated with data privacy, cybersecurity, and continuity of handle continuously evolving cyber threats. Systems are constantly
business operations. monitored for uptime and health, and disaster recovery sites have been
created for seamless operations in case of system failure. We have
in place well-articulated Information Security Policy, Cyber Security
Policy, Cloud Security Policy and Cyber Crisis Management Plan to
support our well-established Information Security Management System
Framework to protect the business information across layers.
INFORMATION AND CYBER SECURITY cyber security risk and performance indicators to assess
At PNB Housing Finance, we recognise that in today’s digital the implementation and effectiveness of various cyber
era, customer information is a highly valuable asset, and it security controls.
is our utmost responsibility to take preventive measures and We engage industry experts to perform comprehensive
ensure security of circulating information. Following the vulnerability assessments and penetration testing of
principle of “defence in depth” for implementing security underlying infrastructure, applications, and supporting
controls, we have implemented multi-layers controls for network components to test and improve the implemented
identification, prevention, detection, and response to various control measures. Our Business Continuity Policy, Disaster
cyber security threats we face today. Recovery site in tandem with backup controls ensure
Our risk-centred approach, backed by the Information continued availability of information. Implementation of Next
Security Policy, Cyber Security Policy, Cloud Security Generation Firewall along with 24x7 Security Operations
Policy, and Cyber Crisis Management Plan, reinforces our Centre (SOC) and End Point Protection (EPP) software help
well-established Information Security Management System us protect our externally facing and internal IT environment
Framework to ensure the protection of business information from various threats. We also continuously monitor our brand
across all layers, including Network, Endpoint, Perimeter, and data for any leakage over social media and dark web with
Application, Data, and Human layers. The IT Strategy help from service provider in addition to restricting internal
Committee and Information Security Committee, led by server to server communication only on authorized ports
Independent Directors, oversee cyber security risks using and services. Considering the criticality of data we process,
we have also deployed Data Loss Prevention (DLP) solution

for monitoring and restricting data loss either from endpoint, INTERNAL CONTROL SYSTEM
network, or web gateway. DLP solution is complemented The Company has instituted adequate internal control systems
with Web Proxy solution to restrict users from accessing commensurate with the nature of its business and the size of
non-work-related websites. With use and adoption of its operations. Internal Audit Department (IAD) independently
multiple digital applications we have also implemented Web carries out the evaluation of the adequacy of all internal
Application Firewall for all Internet facing applications. To controls. Risk-based internal audit has been implemented
empower employees to work from anywhere, most of the in the Company which encompasses all the functions,
users have been provided with Laptops, which are secured processes, products, and operation across geography. IAD
with Full-Disk encryption and users are made aware of ensures that operation and business units adhere to laid down
various Do’s and Dont’s of Information Security on regular internal processes and procedures as well as to regulatory &
basis. With our dependence on multiple business partners, legal requirements and recommends improvements.
we also ensure that similar security controls are practiced
The Company has adequate internal controls and processes
in safeguarding sensitive information. Cyber security
with respect to its financial statements which provide
simulation exercises are done at regular intervals to make all
reasonable assurance regarding the reliability of financial
stakeholders aware of the actions that needs to be taken in an
reporting and the preparation of financial statements. It also
event of cyber, infrastructure or natural disaster. We continue
has a mechanism of testing the financial controls at regular
to enhance our security controls and keep abreast with
intervals for their design and operating effectiveness.
industry leading practices.
The Company has been declared an NBFC under upper
BUILDING TRUST THROUGH INVESTOR layer as per the scale based regulatory framework, with
enhanced risk control and compliance requirement which is
ENGAGEMENT
implemented in the Company.
At PNB Housing Finance, we prioritise continuous
engagement with our investors to understand their needs
CAUTIONARY STATEMENT
and expectations. Our investor outreach program is designed
in alignment with their requirements and includes regular This Annual Report contains forward-looking statements
interactions such as updates, conferences, meetings, and that relate to the implementation of strategic initiatives
non-deal roadshows. Our dedicated investor relations (IR) and provide information on our business development and
team actively engages with investors, meeting with numerous commercial performance. While we believe these statements
funds and research houses during the year. We ensure timely reflect our judgment and future expectations, it’s important to
dissemination of material events including quarterly, half- note that a range of factors beyond our control could cause
yearly, and annual results through email, accompanied by actual results to differ materially from what we anticipate.
detailed investor presentations and press releases. Earnings These factors include economic conditions, government
calls are conducted each quarter, providing important regulations, natural disasters, and other important
business and financial updates and addressing market considerations. As a result, PNB Housing Finance cannot
participant queries. Furthermore, our website features a guarantee the accuracy of these forward-looking statements,
concise two-pager factsheet under the Investor Relations and we undertake no obligation to revise them to reflect
section, offering a quick overview of our company. future events or circumstances.

DIRECTORS’ REPORT
Your directors welcome the Shareholders and take pleasure Capital Adequacy Ratio (CRAR)
in presenting the 35th Annual Report together with the The Capital Adequacy Ratio (CRAR) as on March 31, 2023 was
Audited Standalone and Consolidated Financial Statements of 24.43% (comprising Tier I capital of 22.40% and Tier II capital
the Company for the Financial Year ended March 31, 2023. of 2.03%). The Reserve Bank of India (RBI) has prescribed
minimum CRAR of 15% of total risk weighted assets.
FINANCIAL RESULTS (CONSOLIDATED)
(J in crore) DIVIDEND
Particulars March 31 2023 March 31 2022
In order to conserve capital, your directors have not
Total Income 6,529.66 6,200.73 recommended any dividend for the year (Previous year nil).
Total expenditure 5,168.75 5,116.77 The dividend distribution policy is available on the website
Profit before tax 1,360.91 1,083.96 of the Company and can be accessed at https://www.
Less: Provision for Tax pnbhousing.com/investor-relations/corporate-governance/.
- Current year 87.78 249.15
- Deferred Tax 227.13 (1.67)
RIGHTS ISSUE
Profit After Tax 1,046.00 836.48 The Board of Directors on March 9, 2022 had authorized the
Company for Rights Issue up to H2,500 crore. On March 28,
Other Comprehensive income 77.06 97.30
(OCI) 2023 the Board approved issue of 9,06,81,828 fully paid-up
Total Comprehensive income 1,123.06 933.78 Equity Shares each for amount aggregating up to H2,493.76
for the year crore. The Board fixed issue price of H275 per fully paid-up
Transfer to Statutory / 212.00 165.00 Equity Share (including a premium of H265 per Equity Share).
Special reserves
The Record date for Rights share eligibility was April 05,
Balance carried to balance 911.06 768.78 2023. The issue opened for subscription on April 13, 2023 and
sheet
closed for subscription on April 27, 2023. The Board allotted
The standalone and the consolidated financial statements for 9,06,81,828 fully paid-up Equity Shares each for amount
the Financial Year ended March 31, 2023, forming part of this aggregating up to H2,493.76 crore. Pursuant to the allotment,
annual report, have been prepared in accordance with Ind AS the paid-up equity share capital of the Company has increased
notified under section 133 of the Companies Act, 2013 (‘the from H1,68,86,18,680 comprising of 16,88,61,868 fully paid-up
Act’) and other relevant provisions of the National Housing Equity Shares of H10 each to H2,59,54,36,960 comprising of
Bank Act, 1987 as amended from time to time, the Master 25,95,43,696 fully paid-up Equity Shares of H10.
Directions Non-Banking Financial Company–Housing Finance The promoter, PNB subscribed H498.75 crore as per RBI
Company (Reserve Bank) Directions, 2021 dated February approval dated June 2, 2022. Post Rights issue, promoter’s
17, 2021 (‘RBI Directions’) as amended from time to time and shareholding in the Company is 28.15% (32.52% as on
the RBI circular DOR.CRE.REC. No.60/03.10.001/2021-22 March 31, 2023).
dated October 22, 2021 on “Scale Based Regulation (SBR), a
Your Board wish to thank all the shareholders for the good
revised regulatory framework for NBFCs.
response to the Rights issue, which was oversubscribed by
The Net Interest Income for financial year 2023 stood at around 1.21 times.
H2,345.54 crore as compared to H1,868.92 crore, registering an
increase of 26% year on year. The Pre provision Operating Profit LENDING OPERATIONS
increased by 24% to H2,052.19 crore from H1,660.32 crore. The Company is a Non-Banking Financial Company - Housing
Finance Company (NBFC-HFC) and is engaged in financing
The Credit cost including write offs for financial year 2023 was
purchase and construction of residential houses, loan against
H691.28 crore registering an increase of 20% year on year.
property and loan for other related purposes. All other
The Spread on loans for financial year 2023 stood at 2.81% activities revolve around the main business.
as compared to 2.12%. Net Interest Margin for financial year During the year, the Company has sanctioned loans
2023 stood at 3.73% as compared to 2.80%. Gross Margin, amounting to H23,564 crore in respect of 71,839 loan
net of acquisition cost for financial year 2023, was at 4.06% applications, as compared to H17,495 crore in respect to
as compared to 3.16%. Return on Assets for financial year 57,360 loan applications in the previous year, growth of 25%
2023 was at 1.61% as compared to 1.24%. Return on Equity for in number of loan applications sanctioned and 35% growth in
financial year 2023 was at 9.98% as compared to 8.92%. loan sanctioned amount.
During the year, the Company has transferred a sum of During the year, the Company has disbursed loans amounting
H45.00 crore to Special Reserve and a sum of H167.00 crore to H14,965 crore as compared to H11,246 crore in the previous
to the Statutory Reserves. year, a growth of 33%.

During the year, the Company has accelerated growth as on March 31, 2022. Majority of new branches were opened
with focus on retail loans which contributed 99% of total in tier II and tier III cities to expand affordable loan business.
disbursements. The Company has built a separate affordable
The Company has 22 underwriting hubs for credit
loan vertical called ‘Roshni’ with dedicated sales, credit,
decision making.
collection, and operation. The target ticket size of a loan
under Roshni is H15-17 lakh. The affordable loan segment BORROWINGS
presence was expanded to 82 branches/outreaches in more
The outstanding borrowings as on March 31, 2023 were
than 150 districts. This segment will be one of the focus areas
H53,651 crore as compared to H53,005 crore as on
going forward.
March 31, 2022. During the year, the Company has raised
Company’s digital onboarding platform ACE was enhanced fresh resources of H24,451 crore from multiple sources.
for improving distribution and customer experience. The
Details of market borrowings are provided in the Management
Company has robust underwriting, monitoring, collection and
Discussion and Analysis Report and Notes to Accounts.
risk management practices.
The Company is in compliance with the provisions of Chapter
Loan Assets XI of RBI Master Directions for issue of Non-Convertible
Debentures on Private Placement basis. The Company has
Loan Assets as on March 31, 2023 were H59,273 crore as
been regular in payment of principal and interest on the Non-
compared to H57,895 crore as on March 31, 2022 registering
Convertible Debentures.
an increase of 2%. With focus on retail segment, during the
year, the Company’s retail loan book has grown by 10% from
DEPOSITS
H50,520 crore to H55,471 crore, whereas the corporate loan
book has declined by 48% from H7,375 crore to H3,802 crore. The Company has accepted public deposits as per RBI
The retail book constitutes around 94% of the Loan Assets as Directions as amended from time to time, erstwhile National
Housing Bank Directions, 2010 and as per the provisions of
on March 31, 2023.
the Act. The Company has paid/accrued interest on all the
The Assets Under Management (including securitized loan outstanding deposits on due dates. There has been no default
book) as on March 31, 2023 were H66,617 crore as compared on repayment of deposits or payment of interest thereon
to H66,983 crore as at March 31, 2022, a decline of 1% YoY. during the year.
Further details on lending operations are provided in the The outstanding deposits (including accrued interest) as on
Management Discussion and Analysis Report. March 31, 2023 were H17,247.90 crore (including intercorporate
deposits of H1,722.54 crore) as against H17,687.05 crore (including
Asset Quality inter-corporate deposits of H2,665.19 crore) outstanding as on
The overall Gross Non-performing Assets (GNPAs), declined March 31 2022, registering a decline of 2%. The Company has
by 430 bps to 3.83% as on March 31, 2023 as compared to raised H6,068 crore of fresh deposits during the year.
8.13% as on March 31, 2022. The retail and corporate GNPAs The deposits of the Company have been rated AA (Outlook
declined to 2.57% and 22.25% respectively as on March 31, Stable) by CRISIL and CARE AA (Outlook Stable) by CARE.
2023 as compared to 3.89% and 37.13% respectively as on
March 31, 2022. Investment in SLR
The overall Net Non-performing Assets (NNPAs), declined to The Company has maintained its Statutory Liquid Ratio (SLR) as
2.76% as on March 31, 2023 as compared to 5.06% as on March stipulated under RBI Directions. The Company was having total
31, 2022. The retail and corporate NNPAs declined to 1.74% SLR investments of H2,299.17 crore as on March 31, 2023. The
and 18.24% respectively as on March 31, 2023 as compared to Company has classified its SLR investments as per RBI Directions.
2.85% and 20.21% respectively as on March 31, 2022.
Unclaimed Deposits and NCDs
The overall ECL provision coverage as on March 31, 2023 was Out of the deposits which became due for repayment up
2.42% (retail loans 1.74% and corporate loans 12.28%). to March 31, 2023, deposits worth H29.94 crore, including
interest accrued and due relating to 1,575 depositors had
PMAY Subsidy not been claimed or renewed. The Depositors have been
During the year, the Company disbursed subsidy under PMAY intimated regarding the maturity of their deposits with a
scheme in 11,424 accounts with a sanction value of H2,140.44 request to either renew or claim the deposits and subsequent
crore. The total subsidy transferred to the beneficiary reminders have been sent.
accounts amounted to H296 crore.
Deposits remaining unclaimed for a period of seven years
from the date they became due for payment have to be
DISTRIBUTION transferred to Investor Education and Protection Fund (IEPF)
During the year, the Company expanded its branch network established by the Central Government under section 125
to 189 branches/outreaches (including 82 affordable loan of the Act. During the year, the Company has transferred an
branches/outreaches) an increase from 137 branches/ amount of H14.13 lakh to IEPF. The concerned depositors can
outreaches (including 24 affordable loan branches/outreaches) claim the deposit from the IEPF.

During the year, there was no NCDs unpaid, remaining Environmental: Jal Khushhali, water conservation project,
unclaimed after its due date. The Company is not required solar electrification in Govt. schools, providing safe drinking
to maintain debenture redemption reserve on privately water in villages, setting community based sustainable
placed NCDs. drinking water systems, plastic waste management project.
Women Empowerment: Promoting women owned spice and

CREDIT RATING snacks units, setting sanitary napkin manufacturing units,
During the year, ICRA, CRISIL and India Ratings upgraded skill development of artisans in carpet sector, developed skill-
the Company’s rating outlook to ‘Stable’ from ‘Negative’. based livelihoods of women.
The Company is rated AA ‘Stable’ from all the major rating
The details are captured in Annexure 2 to Directors Report on
agencies i.e. CARE, CRISIL, ICRA and India Ratings.
CSR activities.
The credit rating on deposits, term loans, NCDs and
commercial paper and migration during the year is disclosed HUMAN RESOURCE
in the General Shareholder Information- Annexure to As on March 31, 2023 the Company had 1,690 full time
Director’s Report. employees on its rolls. There were 10 employees employed
throughout the year, who were in receipt of remuneration of
MANAGEMENT DISCUSSION AND ANALYSIS REPORT, H1.02 crore or more per annum or receipt of remuneration of
REPORT OF THE DIRECTORS ON CORPORATE H8.5 lakh or more per month. The remuneration comprises
GOVERNANCE AND BUSINESS RESPONSIBILITY salary, allowances, perquisites/ taxable value of perquisites,
REPORT excluding perquisite value of ESOPs exercised and ex-
In accordance with the Securities and Exchange Board of gratia amount.
India (Listing Obligations and Disclosure Requirements)
In accordance with the provisions of Rule 5(2) of the
Regulations, 2015 (Listing Regulations) and directions issued
Companies (Appointment and Remuneration of Managerial
by the Reserve Bank of India, the Management Discussion and Personnel) Rules, 2014, the names and particulars of the top
Analysis Report (MD&A) and the Report of the Directors on ten employees in terms of remuneration drawn and of the
Corporate Governance form part of this report. aforesaid employees are set out in the annex to the Directors’
In accordance with the Listing Regulations, Business report. In terms of the provisions of Section 136(1) of the Act
Responsibility and Sustainability Report (BRSR) also forms read with the rule, the Directors’ report is being sent to all
part of Annual Report. Shareholders of the Company excluding the annexure. Any
Shareholder interested in obtaining a copy of the annexure
CORPORATE SOCIAL RESPONSIBILITY (CSR) may write to the Company.
The total amount allocated for CSR activities for financial year Further, disclosures on managerial remuneration are
2023 was H18.76 crore (including for PHFL Home Loans and provided in Annexure 1 appended to the Directors’ Report.
Services Limited). Out of this, the amount spent was H11.76 On-boarding of key positions and vacant positions at all
crore on various CSR activities. A sum of H7.00 crore was levels across locations were made to ensure uninterrupted
transferred to Unspent CSR Account to carry out ongoing business operations.
CSR activities. The Learning and Development (L&D) team implemented a
Pehel Foundation (wholly owned subsidiary) is the learning roadmap for employees on techno-functional and
implementation arm of the Company for CSR activities along behavioural skills. The L&D team provided physical as well
with other partnering agencies. as virtual learning interventions for existing employees and
new joinees.
During the year, the Company focused on healthcare
initiatives to strengthen healthcare infrastructure across Chief Financial Officer (CFO)
multiple locations, continued supporting projects for the
The Board appointed Mr Vinay Gupta as CFO with effect
welfare of construction workers, enabling access to formal
from October 26, 2022. Mr Kaushal Mithani was interim CFO
education by strengthening school infrastructure, water
from April 8, 2022 to August 23 2022 post resignation of Mr
conservation, livelihood generation for women and persons
Kapish Jain as CFO with effect from April 7, 2022.
with disability.
Healthcare: Strengthening of Primary Health Centers, Prevention, Prohibition and Redressal of Sexual
infrastructure at Community Health Centers, Eye Hospital, Harassment of Women at the Workplace
Govt. hospital for sick Newborn Care Unit, Operation of The Company has adopted a policy on prevention, prohibition
mobile medical care units, ambulance operation etc. and redressal of sexual harassment at the workplace.
Members of the Internal Complaints Committee constituted
Education: Setting e-learning infrastructure in Govt. schools,
by the Company are responsible for reporting and conducting
STEM learning in Govt. schools, supported tribal school with
inquiries pertaining to such complaints.
digital learning, scholarship programs for the underprivileged,
smart anganwadis, PNB Housing Finance Ki Paathshaala- a The Company on a regular basis sensitises its employees
transformation project in Govt. School. including subsidiary employees on the prevention of

sexual harassment at the workplace through workshops, We have implemented multi-layered controls for identification,
group meetings, online training modules and awareness prevention, detection, and response to various cyber
programmes. During the year, one complaint was received by security threats we face today. We have applied safeguards
the Committee, which is under investigation. for protection of customer information. We have framed
information security policy, cyber security policy and cloud
PARTICULARS OF LOANS, GUARANTEES OR security policy to support information security management
INVESTMENTS system and to protect business information at network,
Since the Company is a housing finance company, the endpoint, perimeter, application, and human layer.
disclosures regarding particulars of the loans given,
guarantees given and security provided is exempt under MAINTENANCE OF COST RECORDS
the provisions of Section 186(11) of the Act. As regards, Being a housing finance company, the Company is not
investments made by the Company, the details of the same required to maintain cost records as per sub-section (1) of
are provided in notes to the financial statements of the Section 148 of the Act.
Company for the year ended March 31, 2023.
UNCLAIMED DIVIDEND
PARTICULARS OF CONTRACTS OR ARRANGEMENTS As on March 31, 2023, dividend amounting to H7.07 lakh
WITH RELATED PARTIES had not been claimed by Shareholders of the Company. The
In accordance with the provisions of Section 188 of the Act Company has been informing these Shareholders to claim
and rules made thereunder, the transactions with related unclaimed dividend.
parties are in the ordinary course of business and on an arm’s
length pricing basis, the details of which are included in the EMPLOYEES STOCK OPTION SCHEME & RSU
notes forming part of the financial statements. The particulars SCHEME
of contracts or arrangements with related parties as During the year, 2,44,572 Equity Shares of H10 each were
prescribed in Form No. AOC–2 of the Companies (Accounts) allotted on exercise of ESOP options under ESOP Scheme
Rules, 2014, are annexed to this report. Details of related 2016 and 2018. Further, 12,691 Equity Shares of H10 each
party transactions are given in the Notes to Accounts. The were allotted on exercise of RSUs under RSU Scheme 2020.
Policy on Related Party Transactions is published elsewhere
in the Annual Report and is also placed on the Company’s Grant of fresh ESOS & RSUs
website at https://www.pnbhousing.com/investor-relations/
During the year, the Nomination and Remuneration Committee
corporate-governance/
has granted 14,78,559 ESOPs under ESOP Scheme 2016
and 2020.
PARTICULARS REGARDING CONSERVATION OF
ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN (6,78,559 options were granted at H345.30, 25,000 options at
EXCHANGE EARNINGS AND EXPENDITURE H345.20, 5,75,000 options at H444.05 and 2,00,000 options at
There is no information to disclose under the head H431.20).
‘Conservation of Energy and Technology Absorption’ given During the year, the Nomination and Remuneration Committee
in the above rules since the Company is engaged in providing has granted 25,000 RSUs under RSU Scheme 2020 at H10
housing loans. However, the Company understands the per option.
importance of energy conservation for the environment and
this is covered under Environment, Social and Governance There has been no variation in the terms of the options granted
(ESG) section. under any of these schemes and all the schemes are in
compliance with the SEBI (Share Based Employee Benefits and
There were no foreign exchange earnings, and the Company Sweat Equity) Regulations, 2021 as amended. The certificate
has incurred foreign exchange expenditure of H235.74 from the Secretarial Auditors confirming that ESOS Schemes
crore during the year primarily on account of interest on have been implemented in accordance with the SEBI (Share
borrowings from external sources. Based Employee Benefits and Sweat Equity) Regulations,
2021 and Shareholder’s resolutions has been obtained and
Business Continuity will be available for inspection of the Shareholders at the
The Company has a Business Continuity Plan (BCP), designed ensuing Annual General Meeting (‘AGM’). The Nomination and
to minimise operational, financial, legal, reputational, and Remuneration Committee monitors the compliance of these
other material consequences arising from a disaster. Schemes. The disclosures as required under the regulations
have been placed on the website of the Company at https://
The Business Continuity & Disaster Recovery policy at
www.pnbhousing.com/investor-relations/updates-events/.
PNB Housing Finance is developed with intent to prevent,
contain, and respond to potential disruptions that may impact
REGULATORY INTERVENTIONS
the continuity of business/support processes performed by
PNB Housing Finance, along with ensuring safety of PNB The RBI vide circular dated September 30, 2022 has
Housing Finance employees. classified PNB Housing Finance in Upper Layer (NBFC-UL)
category under Scale Based Regulation (SBR) for NBFCs
issued on October 22, 2021.

The Companies classified under NBFC-UL are required b) Mr. Girish Kousgi (DIN: 08524205) was appointed
to implement a comprehensive scale based regulatory Managing Director & CEO with effect from October
framework covering internal capital adequacy assessment 21, 2022. The appointment was approved by the
process (ICAAP), common equity Tier I, leverage, differential shareholders through postal ballot on December 22,
standard asset provisioning, concentration of credit and 2022 for a term of 4 years effective October 21, 2022.
investment, sensitive sector exposure, large exposure He is not liable to retire by rotation.
framework, restriction on loans to directors, their relatives
c) Mr. Pavan Kaushal (DIN: 07117387) was appointed
and senior officers, enhanced disclosure in annual report,
Independent Director with effect from October 27, 2022.
core financial services etc.
The appointment was approved by the shareholders
The RBI has issued following circulars under scale-based through postal ballot on December 22, 2022 for a term
regulation (SBR) for NBFC-UL in Financial year 2022. of 3 years effective October 27, 2022. He is not liable to
retire by rotation.
Compliance function and role of Chief Compliance Officer
(April 11), restriction on loans and advances to directors and d) Mr. Dilip Kumar Jain (DIN: 06822012) was appointed
senior officers (April 19), capital requirements (April 19), Non-Executive Nominee Director with effect from
large exposure framework (April 19), disclosure in financial November 04, 2022. The appointment was approved
statements-Notes to Accounts (April 19), compensation of by the shareholders through postal ballot on December
KMPs and senior management (April 29) and provisioning for 22, 2022. He is nominee of Punjab National Bank and is
standard assets (June 06). liable to retire by rotation.
The Company has requisite policies in compliance with During the year, following Directors have resigned from the
NBFC-UL requirements and is in compliance with the various Board or completed their term.
circulars issued by RBI for NBFC-UL.
a) Mr Ashwani Kumar Gupta (DIN 00108678) completed his
five years term as an Independent Director on
Regulatory Compliance
May 11, 2022.
The Company has implemented RBI Directions as amended
from time to time and other directions/guidelines prescribed b) Mr. Hardayal Prasad (DIN: 08024303) resigned as
by RBI regarding deposit acceptance, accounting standards, Managing Director & CEO with effect from
prudential norms for asset classification, income recognition, October 20, 2022.
provisioning, capital adequacy, credit rating, corporate c) Mr Binod Kumar (DIN 07361689) resigned as Non-
governance, information technology framework, fraud Executive Director with effect from October 21, 2022.
monitoring, concentration of investments, capital market He was nominee of Punjab National Bank.
exposure norms, guidelines on maintenance of Liquidity
Coverage Ratio (LCR), transfer of loans and know your Your Board wishes to place on record its sincere appreciation
customer and anti-money laundering. for the contributions made by these directors on the Board
and also on various Committees of the Board.
During the year, the Company has not made any application
and no proceeding is pending under the Insolvency and In accordance with the provisions of the Act and Articles of
Bankruptcy Code, 2016 (31 of 2016). The Company has not Association of the Company, Mr Sunil Kaul and Mr. Atul Kumar
entered into one-time settlement for any loans availed from Goel will retire by rotation at the ensuing AGM. They are
the Banks or Financial Institutions. eligible for re-appointment and your Board recommends their
re-appointment.
POLICIES AND CODES All the directors of the Company have confirmed that they
During the year, the Company has revised its policies as satisfy the fit and proper criteria as prescribed under the
required in terms of provisions of the Act, RBI Directions, applicable regulations and that they are not disqualified from
Listing Regulations and Insider Trading Regulations issued by being appointed as directors in terms of Section 164(2) of the
the SEBI and placed all the statutory policies on its website at Act. The Company has also received a certificate from the
https://www.pnbhousing.com/investor-relations/corporate- Practising Company Secretary confirming that none of the
governance/ directors have been debarred or disqualified.
The Company has received necessary declaration from each

DIRECTORS
Independent Director under Section 149(7) of the Act that he/
During the financial year, the Board on the recommendation she meets the criteria of Independence laid down in the Act
of Nomination and Remuneration Committee made the and Listing Regulations as amended.
following appointments of Directors.
The Board is of the opinion that the Independent Directors
a) Mr. Atul Kumar Goel (DIN: 07266897) was appointed of the Company possess requisite qualifications, experience,
Non-Executive Nominee Director with effect from and expertise. All the Independent Directors of the Company
April 28, 2022. The appointment was approved by the have registered their names with the data bank created for
shareholders in the 34th AGM on July 26, 2022. He is Independent Directors.
nominee of Punjab National Bank and is liable to retire
by rotation.

The details on the number of Board/ Committee Meetings DIRECTORS’ RESPONSIBILITY STATEMENT
held are provided in the Corporate Governance Report, which
In accordance with the provisions of Section 134(3)(c)
forms part of this report.
of the Act and based on the information provided by the
The evaluation of the Board, its committees and individual management, your directors state that:
Directors was carried out in terms of the provisions of the
a) In the preparation of annual accounts, the applicable
Act and Listing Regulations. (Refer Corporate Governance
accounting standards have been followed;
Report).
b) Accounting policies selected have been applied
STATUTORY AUDITORS consistently. Reasonable and prudent judgements and
The Reserve Bank of India has issued Guidelines for estimates have been made so as to give a true and fair
Appointment of Statutory Central Auditors (SCAs)/Statutory view of the state of affairs of the Company as on March
Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs 31, 2023 and of the profit of the Company for the year
and NBFCs (including HFCs) on April 27, 2022. ended on that date;
The Shareholders in the 33rd AGM have appointed M/s. T c) Proper and sufficient care has been taken for
R Chadha & Co, LLP, Chartered Accountants (ICAI Firm the maintenance of adequate accounting records
Registration No. 006711N/N500028) and M/s. Singhi & Co., in accordance with the provisions of the Act for
Chartered Accountants (ICAI Firm Registration No. 302049E) safeguarding the assets of the Company and for
as the Joint Statutory Auditors of the Company for a period preventing and detecting frauds and other irregularities;
of three years from the conclusion of 33rd Annual General
d) The annual accounts of the Company have been
Meeting till the conclusion of the 36th AGM of the Company.
prepared on a going concern basis;
During the year, the Statutory Auditors were paid
e) Internal financial controls have been laid down to be
remuneration of H1.08 crore (The subsidiaries Statutory
followed by the Company and such internal financial
Auditor was paid remuneration of H0.09 crore). The
controls are adequate and operating effectively; and
remuneration pertains to fees for audit, internal financial
control reporting, limited reviews, tax audits and taxation f) Systems to ensure compliance with the provisions of
services, certifications and other matters and reimbursement all applicable laws are in place and were adequate and
of expenses. operating effectively.
In addition, the Statutory Auditors were paid fees in relation
to the Rights Issue related services amounting to H0.65 crore
INTERNAL FINANCIAL CONTROL
(excluding applicable taxes). The Company has put in place adequate policies and
procedures to ensure that the system of internal financial
During the year under review, the Statutory Auditors have
control is commensurate with the size and nature of the
not reported any matter under Section 143 (12) of the Act.
Company’s business.
Therefore, no details are required to be disclosed under
Section 134 (3) (ca) of the Act. These systems provide a reasonable assurance in respect
of providing financial and operational information, complying
The Statutory Auditors have confirmed that they continue
with applicable statutes, safeguarding of assets of the
to satisfy the eligibility norms and independence criteria as
Company, prevention and detection of frauds, accuracy and
prescribed by RBI guidelines and the Companies Act, 2013.
completeness of accounting records and ensuring compliance
with Company’s policies.
SECRETARIAL AUDIT REPORT
Pursuant to the provisions of Section 204 of the Act, the
EXTRACTS OF ANNUAL RETURN
Board has appointed M/s Chandrasekaran Associates, a
The Annual Return in Form MGT-7 as on March 31, 2023 is
firm of Company Secretaries in practice, to undertake the
available on the website of the Company at https://www.
Secretarial Audit of the Company.
pnbhousing.com/investor-relations/annual-reports/.
Secretarial Audit Report forms part to Directors Report as
annexure. The Secretarial Compliance Report forms part of SIGNIFICANT AND MATERIAL ORDERS PASSED BY
the Annual Report. REGULATORS
During the year, the Company has complied with applicable During the year, there were no significant or material
Secretarial Standards i.e. SS-1 and SS-2, relating to orders passed by the regulators or courts or tribunals that
“Meetings of the Board of Directors” and “General would impact the going concern status or operations of the
Meetings”, respectively. Company in the future.

Settlement Order passed by SEBI A report on the performance and financials of PHFL, as per
Act and rules made thereunder (the “Act”) is provided in Form
A settlement application was filed on Suo motto basis with
AOC - 1 attached to the Consolidated Financial Statements
SEBI on January 17, 2022 on behalf of the Company and its
forming an integral part of the Annual Report.
directors, in terms of the SEBI (Settlement Proceedings)
Regulations, 2018 (“Settlement Regulations”), seeking
Pehel Foundation
settlement of all the matters that may arise in connection with
Preferential Issue of Equity Shares for an aggregate amount It is a wholly owned non-profit subsidiary Company
of H4,000 crore, without admitting or denying the findings incorporated under Section 8 of the Act. It is an
of fact or conclusions of law. Pursuant to completion of the implementation arm to carry out various CSR activities of
requirements under the Settlement Regulations, SEBI has PNB Housing Finance and PHFL.
notified a Settlement Order dated July 18, 2022. The Company
paid settlement amount of H72.76 lakh to SEBI including the ACKNOWLEDGEMENTS
legal expenses of H44.27 lakh. The Directors place on record their gratitude for the support
of various regulatory authorities including Reserve Bank
PARTICULARS OF CONTRACT OR ARRANGEMENTS of India, National Housing Bank, Securities and Exchange
ENTERED MATERIAL CHANGES, DETAILS OF Board of India, Ministry of Housing and Urban Affairs,
SUBSIDIARIES AND LITIGATIONS Ministry of Corporate Affairs, Registrar of Companies,
There has been no material change or commitment, affecting Financial Intelligence Unit (India), the Stock Exchanges and
the financial position of the Company which has occurred the Depositories.
between the close of the Financial Year 2023 to which the The Company acknowledges the role of all its key
financial statement relates and the date of the Report. stakeholders - Shareholders, borrowers, channel partners,
There has been no change in the nature of business of depositors, deposit agents, lenders and Registrar for their
the Company. continued support.
The Directors express their appreciation for the dedication

PHFL Home Loans and Services Limited (PHFL) and commitment with which the employees of the Company at
PHFL is a wholly owned subsidiary and is the distribution arm all levels have worked during the period.
for PNB Housing Finance, offering doorstep services to the
prospective customers. The Subsidiary has trained workforce For and on behalf of the Board
to source business for the loans and deposits offered by
PNB Housing Finance. Girish Kousgi Atul Kumar Goel
During the year, the PHFL has sourced loan applications Managing Director & CEO Non-Executive Director
in respect of 74% of total loans disbursed by PNB Housing
Finance. The annual accounts of PHFL are enclosed along Place: New Delhi
with the Annual Accounts of PNB Housing Finance. Date: June 22, 2023

ANNEXURE TO DIRECTORS’ REPORT - 1
DISCLOSURES ON MANAGERIAL REMUNERATION:

Details of remuneration required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided below:
1. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the
financial year 2022-23:
Ratio of remuneration of each Director to the median employees’ remuneration for FY 2022-23:
Ratio of remuneration to
Name Designation the median employees’
remuneration
Mr. Atul Kumar Goel Non-Executive Nominee Director (appointed w.e.f April 28, 2022) -
Mr. Sunil Kaul Non-Executive Nominee Director -
Mr. Ramakrishnan Chandrasekaran Independent Director -
Mr. Nilesh S Vikamsey Independent Director -
Dr Tejendra Mohan Bhasin Independent Director -
Mr. Sudarshan Sen Independent Director -
Mr. Kapil Modi Non-Executive Nominee Director -
Ms. Gita Nayyar Independent Director -
Mr. Neeraj Vyas Non-Executive Director -
Mr. Girish Kousgi Managing Director & CEO (appointed w.e.f October 21, 2022) 25.6:1
Mr. Pavan Kaushal Independent Director (appointed w.e.f October 27, 2022) -
Mr. Dilip Kumar Jain Non-Executive Nominee Director (appointed w.e.f November 04, 2022) -
Past directors
Mr. Ashwani Kumar Gupta Independent Director (ceased w.e.f May 11, 2022) -
Mr. Hardayal Prasad Managing Director & CEO (ceased w.e.f October 20, 2022) 26.3:1
Mr. Binod Kumar Non-Executive Nominee Director (resigned w.e.f October 21, 2022) -
2. Percentage increase in the remuneration of the Managing Director, Chief Financial Officer and Company Secretary, if any,
in the financial year 2022-23; During the year, there was no increase in remuneration of Managing Director & CEO and of
Chief Financial Officer. There was 10% increase in remuneration of Company Secretary.
3. The performance linked bonus paid in FY 2022-23: During the year, the Company Secretary was paid an amount
H14.48 lakh.
Note: Mr. Hardayal Prasad, was paid H2.50 crore as ex-gratia amount in lieu of performance bonus for the previous
financial year 2021-22, pro-rata performance bonus for the services rendered till the exit date during the financial year
2022-23, salary in lieu of 90 days’ notice period as ex-gratia and goodwill payment as additional ex-gratia.
a. First tranche: H1.25 crore was paid in FY 2023.
b. Second tranche: H1.25 crore was paid in FY 2024.
c. The percentage increase in the median remuneration of employees in the financial year 2022-23 stood at 10%
d. The Company has 1690 permanent employees as on March 31, 2023.
e. Average percentile increase already made in salaries of employees other than managerial personnel in last financial
year and its comparison with the percentile increase in the managerial remuneration and justification thereof and
point out if there are any exceptional circumstances for increase in the managerial remuneration:
The average increase in the remuneration of managerial personnel stood at 10% and non-managerial personnel was 10%.
The average increase in the remuneration of both the managerial and non-managerial personnel is determined based on
the overall performance of the Company and as per the remuneration policy. Further, the criteria for increasing salary of
non-managerial personnel is based on an internal evaluation of Key Performance Indicators (KPIs), while for managerial
personnel it is based on the remuneration policy as recommended by the Nomination & Remuneration Committee and
approved by the Board of Directors.
The remuneration of key managerial personnel is based on the overall performance of the Company. The Company further
reiterates that there were no exceptional circumstances which warranted an increase in managerial remuneration which
was not justified by the overall performance of the Company.

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
1. Brief outline on the CSR Policy of the Company

The CSR Policy of the Company is designed to ensure effective and sustained CSR programme to manifest in the form of
a progressive, socially responsible and enlightened attitude. Company’s policies on CSR are oriented towards stakeholder-
participation approach, where the target groups are seen as stakeholders in the community whose well-being is integral
to the long-term success of the Company and not a charity-oriented approach. The Company through its CSR initiatives
enables the marginalized community to be empowered and become self-reliant. We have built a sustainable business
model and created value for our stakeholders. We are aiming to improve the lives of under privileged and reinforce our
humble collective efforts towards nation building.
The Company has adopted CSR Policy approved by CSR Committee and the Board of Directors, in accordance with the
provisions of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 read with the Companies
(Corporate Social Responsibility Policy) Rules, 2014 and Schedule VII of the Companies Act, 2013 (“the Act”).
The CSR Policy of the Company is based on following guiding principles:
− Sustainability
− Transparency
− Accountability
− Employee Engagement
− ESG Framework
− Non-discriminatory
The broad framework for CSR initiatives to be undertaken by the Company would be as per section 135 and schedule VII
of Companies Act, 2013 as amended. The focus areas for CSR initiatives are:
− Healthcare
− Education
− Welfare of construction workers and skill development
− Women empowerment
− Environmental sustainability and water conservation
2. Composition of CSR Committee
Number of Number of
Sl. meetings of CSR meetings of CSR
Name of Director Designation/ Nature of Directorship
No. Committee held Committee attended
during the year during the year
1. Dr Tejendra Mohan Bhasin Chairman Independent Director 4 4
2. Mr. Ramakrishnan Chandrasekaran Independent Director 4 4
3. Mr. Sudarshan Sen Independent Director 4 3
4. Mr. Girish Kousgi w.e.f Oct. 21, 2022 Managing Director & CEO 2 2
5. Mr. Hardayal Prasad (ceased Oct. 20, 2022) Past MD & CEO 2 2
3. Web-link where composition of CSR Committee, CSR Policy and CSR Projects approved by the Board are disclosed on
the website of the Company.
Web-link of CSR Committee composition https://www.pnbhousing.com/wp-content/uploads/2020/08/Board-Committees.pdf

Weblink of CSR Policy pnbhousing.com/wp-content/uploads/2020/02/PNB-Housing-CSR-policy-2020.pdf
Weblink of CSR projects approved by the pnbhousing.com/wp-content/uploads/2023/04/PNBHFL-List-of-CSR-Projects-FY-22-23.pdf
Board

4. Provide the executive summary along with the web-link(s) of Impact Assessment of CSR Projects carried
out in pursuance of sub-rule (3) of rule 8, if applicable:
Pursuant to sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, PNB Housing
Finance has conducted the impact assessments of the following CSR projects to monitor and evaluate its strategic
CSR programs.
Sl.
Project Name Location NGO Partner Project Amount
No.
1 Promoting research and innovation in health care at New Delhi AIIMS New Delhi 3,60,40,032
AIIMS New Delhi
2 a. Setting up a 20 bedded ICU Facility Raipur, Chhattisgarh American India Foundation 2,31,07,350
b. Setting up a 50 bedded ICU Facility Palwal, Haryana
3 Supporting day care centres for children of Multiple locations Mobile Creches 1,13,86,631
construction workers
4 Provide 3D Printer for Prosthetics to NIEPMD Chennai NIEPMED 2,47,71,545
through Altem Technologies at Chennai
The detailed executive summary of the impact assessment can be accessed at Annexure 2A and Company’s website at
www.pnbhousing.com.
5. (a) Average Net Profit of the Company as per Section 135(5)

The average Net Profit of the Company as per Section 135(5) for financial year 2022-23 is H889.77 crore.
(b) Two percent of average Net Profit of the Company as per section 135(5).
H17.80 crore is the two percent of the average Net Profit.
(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.
There was no surplus amount arising from the CSR projects or programmes or activities that were carried out in the
previous financial year.
(d) Amount required to be set-off for the financial year, if any.

There was no amount set off for the financial year.
(e) Total CSR obligation for the financial year (5b+5c-5d).

The total CSR obligation for the financial year 2022-23 is H17.80 crore.
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project):
The total amount spent on CSR projects (both ongoing and other than ongoing project) in financial year 2022-23 is
H10.85 crore.
(b) Amount spent in Administrative Overheads:

H0.54 crore was spent in Administrative Overheads during the financial year 2022-23.
(c) Amount spent on Impact Assessment, if applicable:

No amount has been spent on impact assessment during the financial year 2022-23.
(d) Total amount spent for the Financial Year (6a+6b+6c).

Total amount spent in financial year 2022-23 is H11.39 crore.

(e) CSR amount spent or unspent for the Financial Year:
Amount Unspent (In J)

Total Amount spent for the Total amount transferred to unspent CSR Amount transferred to any fund specified under Schedule VII as
Financial Year. (In J) Account as per Section 135(6) per proviso to section 135(5)
Amount Date of transfer Name of the fund Amount Date of transfer
H11.39 crore H6.41 crore April 29, 2023 - - -
(f) Excess amount for set off, if any: NA
Sl.
Particulars Amount (J in crore)
No
(i) Two percent of average net profit of the Company as per section 135(5) 17.80
(ii) Total amount spent for the Financial Year 11.39
(iii) Excess amount spent for the financial year [(ii)-(i)] Nil
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any Nil
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] Nil
7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
Balance Amount transferred to a Fund

Amount
Amount in as specified under Schedule Amount
transferred
Unspent CSR Amount VII as per second proviso to remaining
to Unspent
Account spent in the subsection (5) of section 135, to be
Sl. CSR Account Deficiency,
Preceding Financial Year(s) under sub- Financial if any spent in
No under if Any
section (6) of Year (in J) succeeding
subsection (6)
section 135 Amount Date of Financial
of section 135
(in J) (in J) transfer Years (in J)
(in J)
1 FY-1 (March 31, 2022) Nil NA NA NA NA NA NA

8. (a) Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in
the Financial Year: (see note below)
(b) If yes, enter the number of Capital assets created/ acquired:

Note: The Company has not created or acquired any capital assets directly from CSR amount spent in FY 22-23.
However, following assets have been created by the partners/vendors of the implementing agency, Pehel Foundation.
(c) Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount
spent in the Financial Year:
Short particulars of the Details of entity/ Authority/ beneficiary of the registered owner
Pin code Amount
property or asset(s) CSR
Sl. of the Date of of CSR
(including complete Registration
No property or creation amount Name Registered address
address and location of Number, if
asset(s) spent
the property) applicable
1 Snack production unit 313801 25/03/23 7,91,561 CSR00000074 Manjari Paduna Chowki, Gram
Foundation Panchayat Bhawan Pass
Paduna, Girwa, Udaipur
2 Pickles production 263160 17/01/23 4,72,236 CSR00000074 Manjari Durgapur no. 02, Near Kids
unit Foundation Paradise School, Dineshpur
Road Rudrapur Uttrakhand,
3 Sanitary Napkin 226201 30/12/22 32,00,160 CSR00006306 The Desai Sahbhagi Shikshan Trust,
production unit Foundation Trust Chhatha Meel, behind Police
Fire Station, Sitapur Road,
Lucknow-226 201, Uttar
Pradesh.
4 Sanitary Napkin 396385 07/02/23 32,00,160 CSR00006306 The Desai Shantaben Vidhyabhavan,
production unit Foundation Trust At & Po. Untdi, Via Dungri,
Ta & Dist. Valsad-396 385,
Gujarat.

Pin code Amount
asset(s) spent
5 Solar Electrification 122103 31/03/23 42,50,000 NA Govt Schools Sohna,Gurgram, Haryana
in Government Following are the schools:
Secondary School, Government Secondary
Hazipur School, Hazipur
GSS, Silani GSS, Silani
GSS, Harchandpur GSS, Harchandpur
GSS, Dhaula GSS, Dhaula
GPS, Kiranki khedli GPS, Kiranki khedli
GPS, Johlaka GPS, Johlaka
GMS, Kuliyaka GMS, Kuliyaka
GPS, Chamanpura GPS, Chamanpura
GPS, Badashapur GPS, Badashapur Tenther
Tenther GPS, Mandawar
GPS, Mandawar
6 Solar Electrification in 122506 31/03/23 29,75,000 NA Govt Schools Farrukhna
GGMS, Patherheri gar, Gurgram, Haryana
GMS, Mubarikpur Following are the schools:
GMS, Judola GGMS, Patherheri
GGMS, Patli GMS, Mubarikpur
GMS, Fazilpur Badli GMS, Judola
GMS, Sultanpur GGMS, Patli
GMS, Kherki Majra GMS, Fazilpur Badli
GMS, Sultanpur
GMS, Kherki Majra
7 Solar Electrification 221712 31/03/23 8,50,000 NA Govt Schools Ghaziabad, UP-
in Composite School, Following are the schools:
Maharajpur Composite School,
Inter Balika College, Maharajpur
Prakash Industrial Inter Balika College, Prakash
Estate Industrial Estate
8 Solar Electrification in 201204 31/03/23 4,25,000 NA Govt Schools Modinagar, UP
Dayawati Modi Kanya Dayawati Modi Kanya JHS,
JHS, Sikari Sikari
9 E-Learning support in 122001 31/03/23 6,78,912 NA Govt Schools Gurgaon, Haryana
GMPS Sector-5 Following are the schools:
GMSPS RR Camp GMPS Sector-5
GMPS Sector-15, GMSPS RR Camp
Part-1 GMPS Sector-15,Part-1
GMPS Bal No.1 Girls GMPS Bal No.1 Girls
GMPS Sector-14 GMPS Sector-14
GMPS New Colony GMPS New Colony
GMSPS Islampur GMSPS Islampur
GMSPS Shivji Park GMSPS Shivji Park
GMPS DLF Phase-1 Following are the schools:
GMPS Chakkarpur GMPS DLF Phase-1
GMSPS Sikanderpur GMPS Chakkarpur
Ghosi GMSPS Sikanderpur Ghosi
GMPS Dhanwapur Following are the schools:
GMPSS Gwal Pahari GMPS Dhanwapur
GMPS Wazirabad Boys GMPSS Gwal Pahari
GMPS Wazirabad Boys
12 E-Learning support in 122004 31/03/23 84,864 NA Govt Schools Gurgaon, Haryana GMSPS
GMSPS Khandsa Khandsa
13 E-Learning support 122006 31/03/23 3,39,456 NA Govt Schools Gurgaon, Haryana
in GMPS Gurugram Following are the schools:
Village GMPS Gurugram Village
GMPS Basai GMPS Basai
GMPS Panchawali GMPS Panchawali
GGSSS Jacobpura GGSSS Jacobpura
14 E-Learning support in 122016 31/03/23 84,864 NA Govt Schools GMPS Dundahera, Gurgaon,
GMPS Dundahera Haryana

Pin code Amount
asset(s) spent
GMSPS Bajghera Following are the schools:
GMSPS Carterpuri GMSPS Bajghera
GMSPS Carterpuri
16 E-Learning support 122022 31/03/23 70,775 NA Govt Schools GMSPS Sushant Lok C2,
in GMSPS Sushant Gurgaon Haryana
Lok C2
GMSPS Kasan Boys Following are the schools:
GMPSS Manesar GMSPS Kasan Boys
GGMSPS Manesar GMPSS Manesar
GGMSPS Manesar
18 E-Learning support 122052 31/03/23 1,69,728 NA Govt Schools Gurgaon, Haryana
in GMSPS Naharpur Following are the schools:
Rupa GMSPS Naharpur Rupa
GMSS Kasan Naharpur GMSS Kasan Naharpur Boys
Boys
GMSPS Kadipur Following are the schools:
GMPS Fazilpur Jharsa GMSPS Kadipur
GMSPS Badshahpur GMPS Fazilpur Jharsa
Boys GMSPS Badshahpur Boys
20 E-Learning support in 122102 31/03/23 84,864 NA Govt Schools GMS Kuliyaka Gurgaon,
GMS Kuliyaka Haryana
GSSS Harchand Pur Following are the schools:
GSSS Dhaula GSSS Harchand Pur
GSSS Hazipur GSSS Dhaula
GPS Mandawar GSSS Hazipur
GPS Mandawar
GMSPS Wazirpur Following are the schools:
GMSPS Dhani GMSPS Wazirpur
Shadrana GMSPS Dhani Shadrana
GMSPS Nawada GMSPS Nawada Fatehpur
Fatehpur GMSPS Mankrola
GMSPS Mankrola GMSPS Dhankot
GMSPS Dhankot
23 E-Learning support in 122506 31/03/23 84,864 NA Govt Schools GMPS Farrukh Nagar Boys
GMPS Farrukh Nagar Gurgaon, Haryana
Boys
24 E-Learning support in 122029 31/03/23 84,864 NA Govt Schools GMPS Nathupur Gurgaon,
GMPS Nathupur Haryana
25 E-Learning support in 122202 31/03/23 84,864 NA Govt Schools GMSPS Mubarikpur Gurgaon,
GMSPS Mubarikpur Haryana
26 Handlooms unit and 303804 15/11/23 1,94,817 NA Gopi Ram Gopiram Raigar ka ghar, gred
Tin Shade set up ke pas raigaro ka mohalla,
Tigariya, tah. Chomu, Jaipur
Rajasthan 303804
27 Handlooms unit and 303807 15/11/23 3,59,459 NA Mangali Devi Moolchand Raigar ka
Tin Shade set up ghar, Raigaron ka mohalla,
Udaipuriya, Chomu, Jaipur,
Rajasthan 303807
28 Handlooms unit and 303601 15/11/23 1,58,682 NA Kanta Devi Mohanlal kuldeep ka ghar,
Tin Shade set up raigaro ka mohalla, Amarsar,
tahsil Shahpura, Jaipur
Rajasthan 303601
29 Handlooms unit and 303601 15/11/23 3,79,870 NA Mamta Devi Shankarlal Mohanpuria ka
Tin Shade set up ghar, raigaro ka mohalla,
Hanutpura tah. Shahpura,
Jaipur, Rajasthan 303601

Pin code Amount
asset(s) spent
30 Handlooms unit and 303103 15/11/23 1,07,484 Manju Devi Prakashchand Chandoliya ka
Tin Shade set up ghar, Raigaron ka mohalla,
Barijori, tah. ghar, Raigaron
ka mohalla, Barijori, tah.
Shahpura, Jaipur Rajasthan
303103 Shahpura, Jaipur
Rajasthan 303103
31 Handlooms unit and 303803 15/11/23 1,78,943 NA Arti Devi Makkhanlal Raigar ka
Tin Shade set up ghar, Raigaro ka mohalla
Govindpura Basri, tah.
Shahpura, Jaipur Rajasthan
303803
32 Handlooms unit and 303804 15/11/23 1,09,837 NA Sharvani Devi Kanaram kuldeep ka ghar,
Tin Shade set up Raigaro ka mohalla, Dayra,
Tigariya, tah. Chomu, Jaipur
Rajasthan 303804
33 Ward no 8, Ambedkar 122506 16/03/23 29,26,350 NA Ambedkar Sabha Ward no 8, Chand Nagar
Park, Farrukhnagar, Farrukhnagar Road,Farrukhnagar, Dist
Dist. Gurugram, Gurugram, Haryana-122506
Haryana
34 Devi Shakti Geeta 122006 07/02/23 29,26,350 NA Devi Shakti Geeta 21, Old Railway Rd, Bhim
Saar Mandir, Saar Mandir Trust Nagar, Sector 6, Gurugram,
21, Old Railway Rd, Haryana,122006
Bhim Nagar,
Sector 6, Gurugram,
Haryana
35 Geeta Bhavan, New 122001 09/02/23 29,26,350 NA Shri Sanatan Geeta Bhavan, New colony,
colony, Gurugram, Dharam Sabha Gurugram,Haryana - 122001
Haryana (regd)
36 Medical equipment 382110 31/03/23 10,48,973 NA (Medical Referral Hospital and
and Infrastructure Superintendent) Community Health Centre,
support to 2 CHC Sanand, Ahmedabad, Gujarat
37 Medical equipment 382460 31/03/23 42,06,040 NA (Medical Referral Hospital and
and Infrastructure Superintendent) Community Health Centre,
support to 2 CHC Dhandhuka, Ahmedabad,
Gujarat
38 Solar Power Panel set 122103 31/03/23 15,00,000 NA Govt Schools Atta and Kiranj village in Nuh
up in 2 govt. school Haryana
39 Solar Power Panel set 301406 31/03/23 7,50,000 NA Govt Schools Khareda village in Alwar
up in 1 govt. school Rajasthan.
9. Specify the reason(s), if the Company has failed to spend two percent of the average net profit as per
section 135(5)
New project(s) / program(s) of on-going nature were identified and launched during the FY on account of which the entire
mandated CSR spend amount could not be consumed within the FY under review. The unspent amount against the said
project(s) / program(s) has since been transferred into the “Unspent CSR Account” to be utilized for these project(s) /
program(s) within the next three financial years.
Date: June 22, 2023 Girish Kousgi Dr Tejendra Mohan Bhasin

Place: New Delhi Managing Director & CEO Chairman CSR Committee

ANNEXURE-2A
SUMMARY OF IMPACT ASSESSMENTS CONDUCTED
Name of Project – Promoting research and innovation in health care at AIIMS New Delhi
Name of Partner-AIIMS Delhi
Project Timeline: FY20-21
Project Cost: J3,60,40,000
About the Project: The Neurosurgery Education and Training School (NETS) at All India Institute of Medical Sciences (AIIMS),
New Delhi, was supported with Stratasys’s J750 digital anatomy printer, which allows printing of anatomical structures with
properties similar to real tissues. The state-of-the art 3D printer allows the printing of anatomical structures with haptic
properties similar to real tissues.
Need: The project was designed to tackle the challenges faced by the NETS lab: 1. Reduced availability of cadavers due to
COVID 2. Ethical Concerns 3. High cost of synthetic cadavers 4.Mismatch between human anatomy and synthetic cadavers.
Objective: 1.To enable medical practitioners to create prototypes of human anatomy using 3D Printer 2.To help surgeons
reduce the surgery time and help them analyse the case before operating a patient 3.To train surgeons in a safe repeatable and
controlled environment.
Impact Evaluated: Total of 62 doctors from AIIMS from Neurosurgery, Surgery, Dental, Orthopedics and ENT have been
trained so far. 6 doctors from Madhya Pradesh and Telangana have benefitted by training. The initiative supported by PNB
Housing Finance Limited has helped in: 1. Training surgeons in safe and controlled environment 2. Analysing cases before
actually operating them, leading to less error while operating 3. Reducing surgery time. 939 Sessions have been conducted for
surgeons on high-speed drilling, neuro-endoscopy simulations, and micro neurosurgery simulations.
Name of Project: Setting up a 20 bedded ICU Facility in Raipur, Chhattisgarh and 50 bedded ICU Facility in Palwal, Haryana
Name of Partner-American India Foundation
Project Timeline: FY 21-22
About the Project: India experienced a massive surge in COVID-19 cases, particularly during the second wave in early 2021.
The rapid increase in infections overwhelmed the healthcare infrastructure, including hospitals, ICU beds, and medical
resources. PNB Housing Finance Limited and its implementation partner American India Foundation (AIF), in response to need
for hospital beds, provided 50 and 20 beds of portable units at Palwal and Raipur district hospitals.
Need: The surge in covid cases led to a shortage of hospital beds, particularly in the worst-affected regions. Many hospitals
reached full capacity, making accommodating all COVID-19 patients requiring hospitalisation challenging.
Objective: 1. To provide additional capacity of beds in hospitals to accommodate the increased number of COVID-19. 2. To
strengthen the medical infrastructure overwhelmed with COVID-19 cases.
Impact Evaluated: 500+ patients’ footfall at both health care facilities. 20 years of lifetime of the equipment. 4 patients can be
treated on each bed per month 3360 patients can be treated each year.
Name of the Project: Supporting day care centres for children of construction workers
Name of Partner: Mobile Creche
Project Timeline: FY20-21
About the Project: The Mobile Creche project is an initiative providing childcare services to construction workers and other
vulnerable communities at construction sites across India. It aims to address the challenges faced by migrant workers who
often have limited access to safe and affordable childcare facilities. PNB Housing Finance has supported the Mobile Creche
project as part of its Corporate Social Responsibility (CSR) initiatives. Through its CSR program, PNB Housing Finance has
extended financial assistance and other resources to the Mobile Creches project to establish and operate mobile creches at
construction sites.
Need: Approximately 20 million children under the age of six live in poverty in urban India. Parents of such children are
primarily daily wage labourers without additional benefits or social security from their employers or government. PNB Housing
Finance Limited, through its mobile creche initiative, aims to improve the overall well-being and development of children from
marginalised communities by addressing their childcare needs.

Objective: 1. To ensure the safety and well-being of construction workers’ children while they are away for work. 2. To provide
early childhood education to support their overall development. 3.To ensure that children of construction workers receive
nutritious meals.
Impact Evaluated: 70% of the respondents’ children accessed the creche facility for all weekdays. 90% of the respondents
mentioned that their children received 3 meals a day. Growth monitoring was undertaken regularly, 92% of the respondents
were aware of the medical consultation provided at the creche facility, 84% of the respondents affirmed that their children
receive educational support, medical support such as deworming, immunisation and health supplements were provided to
children, 78% of the respondents have observed the benefits of the facility in terms of the child’s growth.
Name of the Project: Provide 3D Printer for Prosthetics to NIEPMD through Altem Techologies at Chennai
Name of Partner: NIEPMD, Chennai
Project Timeline: FY 21-22
About the Project: 3D printing and scanning technology aims to facilitate and reduce the delivery time in terms of easy
beneficiary-specific data collection, reduced fabrication time, minimising human errors, scientifically designed & developed,
lightweight and more cosmetic appealing aids and assistive devices which will ultimately improve user satisfaction and more
acceptance of such devices. The introduced technology helps not only people with disabilities but also the staff associated
with NIEPMD.
Need: While healthcare infrastructure in India has improved, access to quality healthcare remains challenging, particularly
in rural areas. This can result in delayed or inadequate treatment for injuries, leading to the need for prosthetic solutions.
Prosthetics can be crucial in restoring mobility and functionality for individuals with limb loss or limb impairment.
Objective: 1. To minimise human errors in developing prosthetics/ orthotics devices. 2.To provide more scientifically designed
devices which are lightweight and appealing to people with disabilities. 3.To improve access to quality prosthetics/ orthotics in
rural India.
Impact Evaluated: 40+ beneficiaries received support through this initiative, 100% of the beneficiaries received the
rehabilitation devices free of cost. Average savings of H25,000 per unit. Lengthy fabrication time has been reduced after the
introduction of 3D Printing technology, 80% of the respondents are satisfied with the quality of the rehabilitation device.

FORM MR -3
SECRETARIAL AUDIT REPORT
For the financial year ended March 31, 2023
(Pursuant to Section 204 (1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014)
To, (a) The Securities and Exchange Board of India

The Members, (Substantial Acquisition of Shares and Takeovers)
PNB Housing Finance Limited Regulations, 2011 (“SAST Regulations”);
9th Floor, Antriksh Bhavan,
(b) The Securities and Exchange Board of India
22 Kasturba Gandhi Marg,
(Prohibition of Insider Trading) Regulations, 2015;
New Delhi - 110001
(c) The Securities and Exchange Board of India (Issue of
We have conducted the Secretarial Audit of the compliance
Capital and Disclosure Requirements) Regulations, 2018;
of applicable statutory provisions and the adherence to good
corporate governance practices by PNB Housing Finance (d) The Securities and Exchange Board of India (Share
Limited (hereinafter called “the Company”). Secretarial Audit Based Employee Benefits and Sweat Equity)
was conducted in a manner that provided us a reasonable Regulations, 2021 to the extent applicable;
basis for evaluating the corporate conducts/ statutory
(e) Securities and Exchange Board of India (Issue and
compliances and expressing our opinion thereon.
Listing of Non- Convertible Securities) Regulations, 2021;
Based on our verification of the Company’s books, papers,
(f) The Securities and Exchange Board of India
minute books, forms and returns filed and other records
(Registrars to an Issue and Share Transfer Agents)
maintained by the Company and also the information
Regulations, 1993 regarding the Companies Act and
provided by the Company, its officers, agents and authorized
dealing with client to the extent of securities issued;
representatives during the conduct of secretarial audit, we
hereby report that in our opinion, the Company has, during (g) The Securities and Exchange Board of India (Delisting
the audit period covering the financial year ended on March of Equity Shares) Regulations, 2021; Not applicable
31, 2023 complied with the statutory provisions listed
(h) The Securities and Exchange Board of India (Buyback
hereunder and also that the Company has proper Board-
of Securities) Regulations, 2018; Not applicable
processes and compliance-mechanism in place to the extent,
in the manner and subject to the reporting made hereinafter. (i) The Securities and Exchange Board of India
(Debenture Trustee) Regulations, 1993 (in relation
We have examined the books, papers, minute books, forms
to obligations of Issuer Company);
and returns filed and other records maintained by the
Company for the financial year ended on March 31, 2023 (vi) The other laws, as informed and certified by the Management
according to the provisions of: of the Company which are specifically applicable to the
Company based on the Sectors/ Industry are:
(i) The Companies Act, 2013 (“the Act”) and the rules
made thereunder; a) National Housing Bank Act, 1987 and the Guidelines
and circulars issued thereunder from time to time;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the rules made thereunder circulars, guidelines issued b) Guidelines/Circulars/Regulations/Rules prescribed
thereunder by the Securities and Exchange Board of India; by the National Housing Bank for Housing Finance
Companies as amended from time to time.
(iii) The Depositories Act, 1996 and the Regulations and Bye-
laws framed thereunder to the extent of Regulation 76 c) Reserve Bank of India Act, 1934 and rules,
of Securities and Exchange Board of India (Depositories regulations & directions issued from time to time.
and Participants) Regulations, 2018;
d) Master Direction – Non-Banking Financial Company
(iv) Foreign Exchange Management Act, 1999 and the – Housing Finance Company (Reserve Bank)
rules and regulations made thereunder to the extent of Directions, 2021
Foreign Direct Investment, Overseas Direct Investment
e) Guidelines/Circulars/Regulations/Clarifications
and External Commercial Borrowings;
issued by RBI for HFCs from time to time.
(v) The following Regulations and Guidelines prescribed
We have also examined compliance with the applicable
under the Securities and Exchange Board of India Act,
clauses/Regulations of the following:
1992 (‘SEBI Act’):

(i) Secretarial Standards issued by The Institute 2. The Company has allotted 2,57,263 Equity Shares
of Company Secretaries of India and notified by of Face Value of H10 each fully paid up under ESOP
Ministry of Corporate Affairs. and RSU Schemes of the Company.
(ii) SEBI (Listing Obligations and Disclosure 3. Pursuant to the Board of Directors approval dated
Requirements) Regulations, 2015 (“SEBI (LODR), March 09, 2022 for issue of equity shares by way
2015”): of rights issue (“Rights Issue”) for an amount not
exceeding H2500 crore, the Company had filed
During the period under review, the Company has
Letter of Offer on March 29, 2023. The issue opened
generally complied with the provisions of the Act, Rules,
for subscription on April 13, 2023, and closed on
Regulations, Guidelines, Standards, etc. mentioned above
April 27, 2023. The rights issue was oversubscribed
except as mentioned below:
1.21 times. The Board on May 4, 2023 approved
1. Consequent upon the cessation of Mr. Ashwani the allotment of 9,06,81,828 fully paid-up equity
Kumar Gupta as the Independent Director (“ID”) of shares at a price of H275 per equity share (including
the Company on completion of his first term of five premium of H265 per equity share) aggregating to
consecutive-years on May 11, 2022, the Company H2,493.76 crore to the eligible shareholders.
had a shortfall of one Independent Director on its
4. Approval of Restricted Stock Unit Scheme 2022 of
Board in terms of Regulation 17 of SEBI (LODR),
the Company pursuant to shareholders approval in
2015 till October 21, 2022.
the Annual General Meeting held on July 26, 2022.
2. The Company has made delay in intimation
5. Approval of Employees Stock Option Scheme
regarding fixation of record date under Regulation
(ESOP Scheme III 2022) of the Company pursuant
60(2) of SEBI (LODR), 2015 for the maturity of
to shareholders approval in the Annual General
Non-Convertible Debentures, which was required
Meeting held on July 26, 2022.
to be made on or before March 25, 2022.
6. Mr. Kapish Jain resigned as Chief Financial Officer
We further report that,
(“CFO”) of the Company w.e.f. April 07, 2022.The Board
The Board of Directors of the Company is duly constituted designated Mr. Kaushal Mithani as the Interim CFO of
with proper balance of Non-Executive Directors and the Company w.e.f. April 08, 2022 and he resigned from
Independent Directors except as mentioned above with the position of Interim CFO on August 23, 2022. The
respect to Independent Director. The changes, if any, Board of Directors on October 07, 2022 approved the
in the composition of the Board of Directors that took appointment of Mr. Vinay Gupta as CFO of the Company,
place during the period under review were carried out in and he joined the office from October 26, 2022.
compliance with the provisions of the Act.
7. Mr. Hardayal Prasad resigned as Managing Director
Adequate notice is given to all directors to schedule the and Chief Executive Officer of the Company w.e.f.
Board/ Committee Meetings. Agenda and detailed notes on October 20, 2022. The Board of Directors has
agenda were sent in advance (and at a shorter notice for appointed Mr. Girish Kousgi as Managing Director
which necessary approvals obtained, if any) and a system and Chief Executive Officer of the Company w.e.f.
exists for seeking and obtaining further information and October 21, 2022.
clarifications on the agenda items before the meeting and
For Chandrasekaran Associates
for meaningful participation at the meeting.
Company Secretaries
All decisions at Board Meetings and Committee Meetings FRN: P1988DE002500
are carried out unanimously as recorded in the minutes Peer Review Certificate No.: 1428/2021
of the meetings of the Board of Directors or Committee
Sd/-
of the Board, as the case may be.
Dr. S. Chandrasekaran
We further report that there are adequate systems and Senior Partner
processes in the Company commensurate with the size and Membership No. FCS 1644
operations of the Company to monitor and ensure compliance Certificate of Practice No. 715
with applicable laws, rules, regulations and guidelines. Date: June 22, 2023
We further report that during the audit period, following major Note:
events have happened which are deemed to have major
bearing on the Company’s affairs in pursuance of the above (i) This report is to be read with our letter of even date
referred laws, rules, regulations, guidelines, standards, etc. which is annexed as Annexure A and forms an integral
part of this report.
1. The Company has obtained the approval of
shareholders in their Annual General Meeting held (ii)The management has confirmed that the records submitted to
on July 26, 2022 for issuance of Non – Convertible us are true and correct. This Report is limited to the Statutory
Debentures of face value aggregating up to H12,000 Compliances on laws / regulations / guidelines listed in our
Crore (Rupees Twelve Thousand crore) to eligible report of which, the due date has been ended/expired on or
investors from time to time in one or more tranches. before March 31, 2023 pertaining to Financial Year 2022-23.

ANNEXURE-A
To,
The Members,
PNB Housing Finance Limited
New Delhi - 110001
Our Report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We 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 the random test basis to ensure that
correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a
reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations
and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of management. Our examination was limited to the verification of procedures on random test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.

Company Secretaries
FRN: P1988DE002500
Peer Review Certificate No.: 1428/2021
Sd/-
Dr. S. Chandrasekaran
Senior Partner
Membership No. FCS 1644
Certificate of Practice No. 715
Date: June 22, 2023

SECRETARIAL COMPLIANCE REPORT OF PNB HOUSING FINANCE LIMITED

for the financial year ended March 31, 2023
To,
The Board of Directors
9th Floor, Antriksh Bhawan,
22, Kasturba Gandhi Marg,
New Delhi – 110001
We Chandrasekaran Associates, Company Secretaries have examined:
(a) All the documents and records made available to us and explanation provided by PNB Housing Finance Limited
(“the Listed Entity/Company”),
(b) The filings/ submissions made by the listed entity to the stock exchanges,
(c) Website of the listed entity,
(d) Any other document/ filing, as may be relevant, which has been relied upon to make this certification,
for the financial year ended on March 31, 2023 (“Review Period”) in respect of compliance with the applicable provisions of:
(a) the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations, circulars, guidelines issued
thereunder; and
(b) the Securities Contracts (Regulation) Act, 1956 (“SCRA”), rules made thereunder and the Regulations, circulars,
guidelines issued thereunder by the Securities and Exchange Board of India (“SEBI”);
The specific Regulations, whose provisions and the circulars/ guidelines issued thereunder, have been examined and include:-
(a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI
(LODR) Regulations 2015”);
(b) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(c) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 to the
extent applicable;
(d) Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018; Not Applicable;
(e) Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;
(f) Securities and Exchange Board of India (Issue and Listing of Non- Convertible Securities) Regulation, 2021;
(g) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(h) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder to the extent of Regulation 76 of
Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 to the extent applicable;
(i) 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 to the extent of securities issued;
(j) Securities and Exchange Board of India (Investor Protection and Education Fund) Regulations, 2009;
(k) Securities and Exchange Board of India (Debenture Trustee) Regulations, 1993 (in relation to obligations of Issuer
Company):

We have examined the compliance of above regulations, circulars, guidelines issued thereunder as applicable during the review
period and based on confirmation received from management of the Company as and wherever required and affirm that:
S. Compliance Status Observations/

Particulars
No. (Yes/No/NA) Remarks by PCS
1. Secretarial Standard Yes
The compliances of the listed entity are in accordance with the applicable Secretarial Standards
(SS) issued by the Institute of Company Secretaries India (ICSI).
We have examined the Secretarial Standards issued by Institute of Company Secretaries of India
and as notified by Ministry of Corporate Affairs.
2. Adoption and timely updation of the Policies: Yes
a. All applicable policies under Securities Exchange Board of India (‘SEBI’) Regulations are
adopted with the approval of Board of Directors of the listed entity.
b. All the policies are in conformity with SEBI Regulations and has been reviewed & timely
updated as per the regulations / circulars / guidelines issued by SEBI
3. Maintenance and disclosures on Website: Yes
a. The listed entity is maintaining a functional website
b. Timely dissemination of the documents/ information under a separate section on the website
c. Web-links provided in annual corporate governance reports under Regulation 27(2) are
accurate and specific which redirects to the relevant document(s)/ section of the website
4. Disqualification of Director: Yes
None of the Director of the Company are disqualified under Section 164 of Companies Act, 2013
5. To examine details related to Subsidiaries of listed entity: NA The Listed entity
a) Identification of material subsidiary companies had identified that
during the period
under review,
there was no
Material Subsidiary
Company.
b) Requirements with respect to disclosure of material as well as other subsidiaries Yes
6. Preservation of Documents: Yes
The listed entity is preserving and maintaining records as prescribed under SEBI Regulations and
disposal of records as per Policy of Preservation of Documents and Archival policy prescribed
under SEBI LODR Regulations, 2015
7. Performance Evaluation: Yes
The listed entity has conducted performance evaluation of the Board, Independent Directors and
the Committees at the start of every financial year as prescribed in SEBI Regulations
8. Related Party Transactions: Yes
(a) The listed entity has obtained prior approval of Audit Committee for all Related party
transactions.
(b) In case no prior approval obtained, the listed entity shall provide detailed reasons along with N.A.
confirmation whether the transactions were subsequently approved/ratified/rejected by the Audit
committee.
9. Disclosure of events or information: Yes
The listed entity has provided all the required disclosure(s) under Regulation 30 along with
Schedule III of SEBI LODR Regulations, 2015 within the time limits prescribed thereunder.
10. Prohibition of Insider Trading: Yes
The listed entity is in compliance with Regulation 3(5) & 3(6) SEBI (Prohibition of Insider Trading)
Regulations, 2015
11. Actions taken by SEBI or Stock Exchange(s), if any: Yes Except as
No Actions taken against the listed entity/ its promoters/directors/ subsidiaries either by SEBI or mentioned at point
by Stock Exchanges (including under the Standard Operating Procedures issued by SEBI through (a) below.
various circulars) under SEBI Regulations and circulars/ guidelines issued thereunder with
respect to the listed entity.
12. Additional Non-compliances, if any: Yes Except as
No any additional non-compliance observed for all SEBI regulation / circular /guidance note etc. mentioned at point
(a) below.

Further, based on the above examination, we hereby report, during the review period that:
(a) The listed entity has generally complied with the provisions of the above Regulations and circulars/ guidelines issued
thereunder, except in respect of matters specified below:-
S. No 1
Compliance Requirement (Regulations/circulars / SEBI (LODR) Regulations, 2015
guidelines including specific clause)
Regulation/ Circular No. Regulation 17
Deviations The composition of the Board of Directors of the Company was not as per the
Regulation 17 of the SEBI (LODR) Regulations, 2015.
Action Taken by BSE and NSE
Type of Action (Advisory/Clarification/Fine/Show Imposition of Fine
Cause Notice/ Warning, etc.)
Details of Violation The Board of Directors of the Company did not have requisite number of directors
upon cessation of Mr. Ashwani Kumar Gupta as the Independent Director (“ID”) of the
Company on May 11, 2022. The vacancy caused was not filled by the Board within 3
months from the date of such vacancy.
Fine Amount BSE and NSE each imposed fine of H4,24,800 for not having the requisite number
of IDs on its Board as on September 30, 2022 and for the period commencing from
October 01, 2022 till October 21, 2022.
Observations/ Remarks of the Practicing Company Consequent upon cessation of Mr. Ashwani Kumar Gupta as the Independent Director
Secretary of the Company on May 11, 2022, the Company had a shortfall of one Independent
Director on its Board till October 20, 2022.
Management Response The composition of the Board was in order with effect from October 21, 2022. The
delay in appointment happened due to finding a suitable person as an Independent
Director.
Remarks -
S. No 2
Deviations Delay in submission of intimation on or before March 25, 2022 of record date for the
maturity of Non-Convertible Debentures.
Action Taken by NSE
Details of Violation Delay in submission of intimation of record date for the maturity of Non Convertible
Debentures.
Fine Amount H11,800 (inclusive of GST)
Observations/ Remarks of the Practicing Company An intimation to be made on or before March 25, 2022 has been delayed for the
Secretary submission of record date for the maturity of NCDs.
Management Response The Company has made the representation for waiver in this regard.
Remarks

(b) The listed entity has taken the following actions to comply with the observations made in previous reports:
S. No 1
Deviations There was an intermittent vacancy of Independent Woman Director on the Board
of Directors of the Company due to resignation of Ms. Shubhalakshmi Panse w.e.f.
January 05, 2021 and there was no woman director on the board of the Company as
on till May 28, 2021.
Action Taken by BSE and NSE
Details of Violation Non – Compliance with Section 149(1) of the Companies Act, 2013 read with Rule
3 of the Companies (Appointment and Qualification of Directors) Rules, 2014, and
Regulation 17(1)(a) of the Listing Regulations
Fine Amount H3,18,600 (including GST)
Observations/ Remarks of the Practicing Company There was no woman Director in the Company w.e.f. January 05, 2021 and as on
Secretary March 31, 2021
Management Response Ms Gita Nayyar was appointed on the board w.e.f May 29, 2021. The delay in
appointment happened due to finding a suitable person as an independent director.
Remarks -
S. No 2
Regulation/ Circular No. Regulation 57(4)
Deviations Delay in disclosures has been made by the Company under Regulation 57(4) of Listing
Regulations for quarter ended December 2021.
Action Taken by -
Type of Action (Advisory/Clarification/Fine/Show -
Details of Violation Delay in disclosures has been made by the Company under Regulation 57(4) of SEBI
(LODR) Regulations, 2015 for quarter ended December 2021.
Fine Amount -
Observations/ Remarks of the Practicing Company The Company has made delayed intimation in submission of the disclosures in
Secretary terms of Regulation 57(4) of SEBI (LODR) Regulations, 2015 for the quarter ended
December 2021.
Management Response It escaped the attention of the management and adequate safeguards have been
developed for future.
Remarks

S. No 3
Compliance Requirement (Regulations/circulars / SEBI Circular
Regulation/ Circular No. SEBI Circular No. SEBI/HO/DDHS/CIR/P/2019/115 dated October 22, 2019 and FAQs
for listing of Commercial Papers
Deviations Delay filing as required under SEBI Circular No. SEBI/HO/DDHS/CI R/P/2019/115
dated October 22, 2019 and FAQs for listing of Commercial Papers.
Action Taken by -
Type of Action (Advisory/Clarification/Fine/Show -
Details of Violation Delay filing as required under SEBI Circular No.
SEBI/HO/DDHS/CI R/P/2019/115 dated October 22, 2019 and FAQs for listing of
Commercial Papers.
Fine Amount -
Observations/ Remarks of the Practicing Company The Company has made intimation beyond the prescribed timeline stated under SEBI
Secretary Circular No. SEBI/HO/DDHS/CIR/ P/2019/115 dated October 22, 2019 read with FAQs
issued by SEBI for listing of Commercial Papers.
Management Response It escaped the attention of the management and adequate safeguards have been
developed for future.
Remarks During the period under review NSE vide notice dated September 29, 2022 imposed
fine of H1,43,960 for delay in submission to stock exchanges during FY 2021-22,
under 57 of SEBI (LODR), 2015 read with SEBI Circular No. SEBI/HO/DDHS/CIR/
P/2019/115 dated October 22, 2019.
(c) The listed entity has suitably included the conditions as mentioned in para 6(A) and 6(B) of the SEBI Circular CIR/CFD/
CMD1/114/2019 dated October 18, 2019 in terms of appointment of statutory auditor of the Listed entity.

Company Secretaries
FRN: P1988DE002500
Peer Review Certificate No: 1428/2021
Sd/-
Shashikant Tiwari
Partner
Membership No. F11919
UDIN: F011919E000405323
Date: 29.05.2023
Place: Delhi
Notes: The management has confirmed that the records submitted to us are the true and correct. This certificate is limited to
the Statutory Compliances on laws/ Regulations/ Guidelines listed in our certificate of which, the due date has been ended/
expired on or before March 31, 2023 pertaining to the Financial Year 2022-23.

CERTIFICATE ON COMPLIANCE WITH THE CONDITIONS OF
CORPORATE GOVERNANCE UNDER LISTING REGULATIONS, 2015
The Members
New Delhi - 110001
We have examined all relevant records of PNB Housing Finance Limited (“the Company”) for the purpose of certifying of all
the conditions of the Corporate Governance under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
(“SEBI LODR”) for the financial year ended March 31, 2023. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of certification.
The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was
limited to the procedures and implementation thereof.
This certificate is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which
the management has conducted the affairs of the Company.
On the basis of our examination of the records produced explanations and information furnished, we certify that the Company
has complied with the conditions of the Corporate Governance under SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 except that consequent upon cessation of Mr. Ashwani Kumar Gupta as the Independent Director of the
Company on May 11, 2022, the Company had a shortfall of one Independent Director on its Board till October 20, 2022 as
required under Regulation 17 of the SEBI LODR. Further, National Stock Exchange of India Limited and BSE Limited each
imposed fine of H4,24,800 for not having the requisite number of Independent Directors on its Board as on September 30,
2022 and for the period commencing from October 01, 2022 till October 21, 2022 and as confirmed by the Management same
has been paid by the Company.

Company Secretaries
FRN: P1988DE002500
Peer Review Certificate No.: 1428/2021
Sd/-
Shashikant Tiwari
Partner
Membership No. FCS 11919
Date: June 22, 2023

Place: Delhi
Note: The management has confirmed that the records submitted to us are the true and correct. This Report is limited to the
Statutory Compliances on laws / regulations / guidelines listed in our report of which, the due date has been ended/expired on
or before March 31, 2023 pertaining to Financial Year 2022-23.

REPORT OF THE DIRECTORS ON CORPORATE LIST OF CORE SKILLS/ EXPERTISE/ COMPETENCIES

GOVERNANCE IDENTIFIED BY THE BOARD OF DIRECTORS AS
REQUIRED IN THE CONTEXT OF ITS BUSINESS AND
Company’s Philosophy on Corporate Governance SECTOR FOR WHICH IT FUNCTION EFFECTIVELY AND
Corporate governance at PNB Housing Finance is THOSE ACTUALLY AVAILABLE WITH THE BOARD
implemented through robust board governance processes, The Board should provide valuable leadership and guidance
internal control systems and processes, and strong audit to the company. The directors should possess extensive
mechanism. These are articulated through corporate knowledge of the operations of the company and the people
governance guidelines, charters of various sub-committees involved. The Company deals with mortgages and operates in
of Board and Company’s policy on disclosure. the financial sector. The Board should possess the wisdom of
The Company ensures to exercise principles of corporate various lifecycles of the financial sector, the key challenges
ethics, accountability, integrity and maintaining high being faced, the competition, it should have the required
standards of corporate governance. The Company has framed experience with credit cycles, workouts and remedial
its policies as per applicable laws and regulatory guidelines. management. The Board with its collective wisdom should
Company has been constantly reviewing and revising them provide oversight to the company during challenging times.
as per business needs and changes in laws/ regulations The Company’s Board has people with extensive experience
from time to time. PNB Housing Finance believes that good in the financial sector, economics, mortgages, banking,
Corporate Governance emerges from the application of the international operations, fintech regulation, currency
best management practices and compliance with the law management, risk management, credit and information
coupled with the highest standards of integrity, transparency, technology. The Directors are highly qualified and have held
accountability and ethics in all business matters. leadership positions in high performing institutions. They
The Company practices ethical standards in all its dealings. are fully equipped to provide leadership and guidance to the
The Company continues to maintain healthy relationship with Company in its quest to achieve growth and quality of business
its depositors, loan customers, business partners, its various and attain leadership position in the mortgage industry. The
other stakeholders and financers. Company has transparently brief profiles of Directors are given in the Annual Report.
disclosed information through its public documents, annual
reports, financial results etc. COMPOSITION
As on March 31, 2023, the Board consisted of twelve
Over the years, the Company has strengthened its corporate
Members comprising six Independent Directors, five Non-
practices and disclosures. The Company has complied with
Executive Directors and one Managing Director & CEO.
the applicable provisions of the SEBI (Listing Obligations
During the year, following appointments/ cessations took
and Disclosure Requirements) Regulations, 2015 (“Listing
place amongst the Board Members.
Regulations”) as amended, Master Direction – Non-Banking
Financial Company – Housing Finance Company (Reserve a) Mr. Atul Kumar Goel was appointed as Non-Executive
Bank) Directions, 2021 dated February 17, 2021 (“RBI Nominee Director with effect from April 28, 2022. He is
Directions”) (as amended from time to time), various circulars nominee of Punjab National Bank and is liable to retire
issued under Scaler based Regulation, which are applicable to by rotation.
the Company and other circulars and notifications issued by
b) Mr Ashwani Kumar Gupta completed his first five-year
RBI, SEBI, MCA and other statutory bodies.
term as an Independent Director on May 11, 2022.
As permitted by MCA, the Board and its Committees have
c) Mr. Hardayal Prasad resigned as MD & CEO, with effect
functioned largely using virtual mode for its meetings. The
from October 20, 2022.
Company has ensured adequate precautions while conducting
audio video meetings. The technology interventions ensured d) Mr. Girish Kousgi was appointed as MD & CEO, with
that all the business activities were completed in time, the effect from October 21, 2022 for a term of 4 years.
Board & Committee meetings were held in time, dissemination
e) Mr. Binod Kumar resigned as Non-Executive Nominee
of adequate and correct public information was ensured.
Director with effect from October 21, 2022.
The following is the Board’s report on corporate governance.
f) Mr. Pavan Kaushal was appointed as Independent
Director with effect from October 27, 2022 for a term of
BOARD OF DIRECTORS
3 years.
The Board is overall responsible to oversee the Company’s
management and to protect the long-term interest of g) Mr. Dilip Kumar Jain was appointed Non-Executive
the stakeholders. Nominee Director with effect from November 04, 2022.
He is nominee of Punjab National Bank and is liable to
retire by rotation.

None of the Independent Directors of the Company have resigned before the expiry of his/her tenure during the Financial Year
2022–23.
Appointment of Directors AGM dated July 26, 2022: The Shareholders have appointed Mr. Atul KumarGoel as a Non-Executive
Nominee Director. The Shareholders by postal ballot on December 22, 2022 have appointed Mr. Girish Kousgi as Managing
Director and Chief Executive Officer, Mr. Pavan Kaushal as an Independent Director and Mr. Dilip Kumar Jain as a Non-
Executive Nominee Director.
Details of the Board of Directors in terms of their directorships/memberships in committees of public companies (including
PNB Housing Finance Limited) as per Regulation 26 of the Listing Regulations is given hereunder:
Number of
Sr. Committees**
Directors Category DIN Name of Companies and Designation* Skills/ Expertise
No. Chair-
Member
Person
1. Mr. Atul Kumar Non-Executive 07266897 1. PNB Housing Finance Limited 3 0 He is a qualified Chartered
Goel Nominee (‘L’ stands for Listed) Accountant, having more than
Director of 2. Punjab National Bank (L) – three decades of Banking
Punjab National Managing Director and CEO experience. He was Chief
Bank Financial Officer (CFO) in
3. The Oriental Insurance Allahabad Bank.
Company Limited (‘UL’ stands
for unlisted)– Non-Executive He is currently Managing Director
Director & CEO of Punjab National Bank
from February 1, 2022. Earlier, he
4. PNB Metlife India Insurance was Managing Director & CEO of
Co. Ltd (UL)– Non-Executive UCO Bank, Executive Director in
Director Union Bank of India and worked
5. National Credit Guarantee in various positions in Allahabad
Trustee Company Limited (UL) – Bank.
Non-Executive Director
2. Mr. Sunil Kaul Non-Executive 05102910 1. PNB Housing Finance Limited (L) 2 0 He is B. Tech from IIT Bombay
Nominee 2. Yes Bank Limited (L)- Nominee and MBA from IIM Bangalore.
Director Director He is an experienced Investment
of Quality Advisor. He has extensive
Investment experience in corporate and
Holdings Pcc consumer banking in several
parts of the world. He has held
leadership positions for Citibank.
He has experience in capital
investment, financial sector,
treasury, risk management,
credit, human resource, and
credit card industry.
3. Mr. Nilesh S Independent 00031213 1. PNB Housing Finance Limited (L) 10 5 He is a qualified Chartered
Vikamsey Director 2. Thejo Engineering Limited (L) – Accountant and Past President
Independent Director of Institute of Chartered
Accountants of India. He has
3. Thomas Cook (India) Limited (L) extensive experience of Audits/
– Independent Director Consultancy of Banks, large
4. IIFL Finance Limited (L) – Companies, Mutual Funds,
Independent Director Financial Services Sector
5. Gati Limited (L) – Independent companies. He has extensive
Director experience in credit and human
resource management.
6. Allcargo Logistics Limited - (UL)
– Independent Director
7. 360 ONE WAM LIMITED (UL) –
8. SOTC Travel Limited (UL) –
9. Gati-Kintetsu Express Private
Limited (UL) – Independent
Director

Number of
Sr. Committees**
No. Chair-
Member
Person
4. Mr. R Independent 00580842 1. PNB Housing Finance Limited (L) 3 1 He is Bachelor of Engineering
Chandrasekaran Director 2. L&T Technology Services Ltd. (L) from Madras University and MBA
– Independent Director from IIM Bangalore. He was one
of the professional co-founders of
3. LTI Mindtree Limited (L) – Cognizant. He has held leadership
Independent Director position in the IT industry, setting
4. Aujas Cybersecurity Limited up business in India and several
(UL) – Director countries, the U.S., Europe,
5. NSEIT Limited (UL) – Director South America, The Philippines
and China, driving best-in-class
6. KSL Digital Ventures Limited
delivery excellence at scale.
(UL) – Director
Besides IT, he has extensive
experience in operations and
human resource management.
5. Mr. Neeraj Vyas Non-Executive 07053788 1. PNB Housing Finance Limited (L) 1 0 He a senior professional with
Director experience in banking, credit,
mortgages, risk management
and operations. He was part
of State Bank of India for over
three decades and has handled
several assignments for the bank
in various locations in India and
abroad. He was Deputy Managing
Director and Chief Operating
Officer of State Bank of India.
He is MSc. and CAIIB.
6. Dr Tejendra Independent 03091429 1. PNB Housing Finance Limited (L) 8 3 He is PhD from University of
Mohan Bhasin Director 2. PNB Gilts Limited (L)- Madras and MBA from FMS Delhi.
Independent Director He is an experienced retired
banker who held the position
3. SBI Cards and Payment Services of Chairman and Managing
Limited (L)- Independent Director of Indian Bank. He has
Director been conferred with honorary
4. Patanjali Foods Limited (L) - fellowship by Indian Institute of
Independent Director Banking and Finance. He was
5. SBI Life Insurance Company earlier vigilance commissioner
Limited (L)- Independent in Central Vigilance Commission.
Director He has over 42 years of
experience in administration,
banking and finance industry, risk
management, credit management
and operations.
7. Mr. Sudarshan Independent 03570051 1. PNB Housing Finance Limited (L) 2 0 He is MSc from Delhi University
Sen Director 2. Federal Bank Ltd. (L) - and MBA from University of
Independent Director Birmingham. He retired from the
Reserve Bank of India as Executive
Director in charge of regulation
of banks and non-banking
financial companies. He has
extensive experience in banking
regulation, bank supervision,
fintech regulation, human resource,
information technology and
currency management.
8. Mr. Kapil Modi Non-Executive 07055408 1. PNB Housing Finance Limited (L) 2 0 He is B. Tech from IIT Kharagpur,
Nominee 2. Nxtra Data Limited (UL)-Non MBA from IIM Ahmedabad
Director Executive Nominee Director (Gold Medallist) and Master of
of Quality Business Law from National
Investment 3. Hexaware Technologies Limited Law School, Bangalore. He is an
Holdings Pcc (UL)- Non-Executive Nominee experienced Investment Advisor.
Director He has strong network of
4. VLCC Health Care Limited (UL)- relationships across investment
Non-Executive Nominee Director banks, Consultants and operating
management teams primarily
in financial services and
technology sector.

Number of
Sr. Committees**
No. Chair-
Member
Person
9. Ms. Gita Nayyar Independent 07128438 1. PNB Housing Finance Limited - (L) 4 2 She is a BA in Economics from
Director 2. Oriental Hotels Limited (L)- Delhi University and holds an
Independent Director MBA from Amos Tuck School
of Business Administration,
3. Transport Corporation of Dartmouth College, USA. She is
India Limited (L)- Independent a finance professional with over
Director 30 years of global leadership
4. Glenmark Life Sciences Limited experience with MNC banks/
(L)- Independent Director VC funds and corporates. She
5. Taj Sats Air Catering Limited has expertise in corporate
(UL) - Independent Director banking, risk and relationship
management, investment
banking, wealth management
and fund raising. She is also
recognised for her expertise in
angel investing/mentoring and
advising early-stage ventures and
has a successful track record of
Investing and founding early-
stage enterprises.
10. Mr. Pavan Independent 07117387 1. PNB Housing Finance Limited - (L) 2 0 He holds a bachelor’s degree in
Kaushal Director 2. Lendingkart Finance Limited commerce from University of
(UL) - Additional Director Calcutta and a master’s degree
in financial management from
3. Asset Reconstruction Company Jamnalal Bajaj Institute of
(India) Limited (UL) - Director Management Studies, University
4. Baroda Global Shared Services of Bombay. He is a member of the
Limited (UL) - Additional Institute of Chartered Accountants
Director of India since 1985. He has over
33 years of experience in the
financial services sector and risk
management.
11. Mr. Dilip Kumar Non-Executive 06822012 1. PNB Housing Finance Limited - (L) 0 0 He holds a bachelor’s degree
Jain Nominee 2. India SME Asset Reconstruction in commerce from Rajasthan
Director of Company Limited (UL)- Director University. He is also a member
Punjab National of the Institute of Chartered
Bank Accountants of India since
1989. He has over 26 years
of experience in the banking
sector, having worked in various
positions. He is CFO of Punjab
National Bank.
12. Mr. Girish Managing 08524205 1. PNB Housing Finance Limited - (L) 1 0 He has extensive experience of
Kousgi Director & CEO 2. PHFL Home Loans And Services managing assets and liabilities,
Limited (UL)- Director mortgage, retail lending, SME
and Agri business. He has dealt
with a variety of loan products,
handling sales, product, credit
underwriting, risk and operations.
He has experience of retail
banking for over 22 years apart
from an experience of about 11
years in risk management. He
is a Post-graduate in Business
Administration (MBA) and
graduate in Commerce.
*Excluding foreign companies, private limited companies and companies under section 8 of the Companies Act, 2013.

**Audit Committee and Stakeholders Relationship Committee. Act, 2013 and the LODR and as approved by the Board. All
the Independent Directors fulfil the criteria prescribed in
DISCLOSURE OF RELATIONSHIPS BETWEEN the Listing Regulations and other applicable laws and are
DIRECTORS INTER-SE; independent of the management of the Company.
None of the Board of Directors are related inter-se except for The Independent Directors are not liable to retire by rotation.
the nominee Directors. A formal letter of appointment was issued to the Independent
Directors in terms of the provisions of the Companies Act,
NUMBER OF SHARES AND CONVERTIBLE 2013. A copy of the letter detailing the terms and conditions of
INSTRUMENTS HELD BY NON- EXECUTIVE appointment of the independent directors has been placed on
DIRECTORS the Company’s website, www.pnbhousing.com.
None of the Board of Directors hold shares of the Company in
as on March 31, 2023, except Ms Gita Nayyar who holds 8,936 FAMILIARISATION PROGRAMME
shares as on date. The main objective of a familiarisation programme is to
ensure that the Non-Executive Directors are updated on
RESPONSIBILITIES the business and regulatory environment and the overall
The Board is responsible for the long-term strategic planning operations of the Company to make informed decisions in
and direction of the Company. It is responsible for the everybody’s interest. All the Independent Directors have
long-term value of the shareholders, to protect the interest been taken through familiarization programme about the
of all other stakeholders and to provide guidance to the Company, its business environment, competitors, Company’s
management with strategic direction. The Board functions portfolio etc.
through its various Committees, which have been assigned
The Company has a policy on familiarisation programme for
various roles and responsibilities. These Committees closely
the independent directors, which is placed on the website
monitor the performance of the Company.
of the Company www.pnbhousing.com. An overview of the
The Board reviews Company’s overall performance at familiarisation programme during the year has been placed on
regular interval. The Board has a formal schedule of matters the Company’s website and can be accessed at https://www.
reserved for its consideration and decision, apart from legally pnbhousing.com/investor-relations/corporate-governance/
required matters.
BOARD MEETINGS
ROLE OF INDEPENDENT DIRECTORS As permitted by MCA, the Company held majority of Board
Company’s Independent Directors are persons of eminence Meetings by audio-video means. As per MCA guidelines,
from diverse fields in banking, finance, accountancy, all the precautions were taken, rules for safe and secure
economics, credit, risk management and information conduct of Board meetings were followed and proceedings
technology. They play an important role on the Board and on were recorded. Board Meetings are scheduled well in
the various Committees of the Board. They provide inputs advance and prior notice of each Board Meeting is given
to the Board and help the Board in arriving at decisions on through electronic mode to every director. The Board meets
matters of strategic importance. at least once a quarter to review the quarterly performance
and financial results of the Company.
The Independent Directors ensure that all the matters brought
to Board and its Committees are adequately discussed and The Company Secretary, in consultation with the Managing
decisions are arrived at in the best interest of the Company. Director & CEO prepares the detailed agenda for the
An Independent Director has been nominated as the Chairman Meetings. The detailed Board agenda is circulated to the
on various Committees, namely Audit Committee, Nomination Directors in advance. The Members of the Board can also
and Remuneration Committee, Stakeholders Relationship recommend inclusion of any matter in the agenda for
Committee, Corporate Social Responsibility Committee and IT discussion. The Senior Management attends the Board
Strategy Committee. Meetings to provide additional inputs on the items being
discussed by the Board. The minutes of each Board Meeting
All the Committees of the Board function within the defined
are finalised and recorded in the minute book maintained by
terms of reference in accordance with the Companies
the Company Secretary.

During the year under review, the Board met eighteen times on April 04, April 28, April 29, May 30, June 14, July 28, August
04, August 26, October 07, October 20, October 27, November 04, November 29, December 12, December 14, January 24,
February 03 and March 28, 2023. The attendance of the Directors at the Board Meetings and the 34th Annual General Meeting
held on July 26, 2022 are listed below.
Sr. Attendance at the

Directors Board Meetings* Sitting fee paid (J)
No. 34th AGM
1. Mr. Atul Kumar Goel 10 Yes -
2. Mr. Sunil Kaul 18 Yes -
3. Mr. R Chandrasekaran 15 Yes 13,50,000
4. Mr. Nilesh S Vikamsey 17 Yes 15,50,000
5. Mr. Neeraj Vyas 18 Yes 16,50,000
6. Dr Tejendra Mohan Bhasin 18 Yes 16,50,000
7. Mr. Sudarshan Sen 10 Yes 9,50,000
8. Mr. Kapil Modi 18 Yes -
9. Ms Gita Nayyar 17 Yes 15,50,000
10. Mr. Girish Kousgi 8 NA -
11. Mr. Pavan Kaushal 7 NA 7,00,000
12. Mr. Dilip Kumar Jain 6 NA -
Past directors
1. Mr. Hardayal Prasad 8 Yes -
2. Mr. Ashwani Kumar Gupta 3 NA 1,50,000
3. Mr. Binod Kumar 7 Yes -
*Leave of absence was granted to the concerned directors who could not attend the Board Meetings.
COMMITTEES OF THE BOARD ii) It reviews quarterly, half yearly and yearly financial
The Board has delegated powers to various Committees. statements as prepared by the Company before
Each of the Board’s Committee has been delegated with submission to the Board.
specific responsibilities/ matters as per the provisions of iii) It reviews and monitors the Auditors’
the Companies Act, 2013, the Listing Regulations and RBI independence, performance and effectiveness of
Directions as amended and as per the business requirements. audit process.
The minutes of all Committee Meetings are finalised and
recorded in the minute book maintained by the Company iv) As per Related Party Policy, it gives approval to
Secretary. The Minutes of Committee Meetings are placed related party transactions and also monitor related
before the Board. party transactions.
The various Board Committees, their roles and their members v) It reviews functioning of whistle
are given below. blower mechanism.
vi) It reviews functioning of internal audit.

a. Audit Committee
vii) It recommends appointment, remuneration
The charter of the Audit Committee is as per section 177
and terms of appointment of statutory and
of the Companies Act, 2013 and the Listing Regulations,
internal auditor.
as amended. The main role of the Audit Committee is;
The Audit Committee calls members of senior
i) It assists the Board in fulfilling its oversight
management as it considers appropriate to be present at
responsibilities for the financial reporting process
the meetings of the Committee. The Statutory Auditors
to regulatory authorities, public, it oversees the
also attend the meeting of the Audit Committee, where
system of internal control, the audit process, and
financial statement is discussed. The Audit Committee
company’s process for monitoring compliance with
discuss with the Statutory Auditors their findings on
laws and regulations and the code of conduct.
the working of the Company without the presence of
the Management.

During the year, the Audit Committee had met fourteen

Number of
times on April 26, April 28, July 28, July 30, August 05, Sr.
Directors Meetings Sitting fee (J)
No.
August 09, August 12, October 12, October 27, November attended
03, November 28, 2022, January 24, January 28 and 3. Mr. Nilesh S Vikamsey 12 5,20,000
March 27, 2023. The details of attendance at the Audit 4. Ms Gita Nayyar 11 4,70,000
Committee Meetings are as under.
5. Mr Sudarshan Sen 11 5,10,000
6. Mr Atul Kumar Goel (from 6 -
Number of 05.05.2022)
Sr.
No. Mr. Binod Kumar (Ceased on 3 -
attended
21.10.2022)
1. Mr. Nilesh S Vikamsey, 14 6,60,000
Chairman Leave of absence was granted to the concerned directors who could
2. Mr. Sudarshan Sen 10 4,60,000 not attend the Meeting.
3. Dr Tejendra Mohan Bhasin 14 6,60,000

c. Corporate Social Responsibility Committee (CSR)
4. Mr. Neeraj Vyas 12 6,00,000
CSR Committee exercises the roles and responsibilities
Leave of absence was granted to the concerned director who could
not attend the meeting.
as per section 135 of the Companies Act, 2013 as
amended. It oversees Corporate Social Responsibilities
of the Company, recommend from time-to-time
b. Nomination and Remuneration Committee (NRC)
amendments to CSR Policy of the Company. It formulates
The Committee has been delegated powers, role and annual action plan and recommend to the Board for its
responsibilities as required under section 178 of the approval. It approves implementing agencies for the
Companies Act, 2013 and as per the Listing Regulation CSR activities. It oversees the functioning of Executive
as amended. Committee of CSR Management.
The NRC formulates criteria for determining During the year, the CSR Committee met four times on June
qualifications, positive attributes and independence of 24, September 23, 2022, February 7 and March 29, 2023.
a director. It recommends to the Board a policy relating The details of attendance at the CSR Meetings are as under;
to the remuneration of the Directors, Key Managerial
Personnel, Senior Management, and other employees. It
Number of
identifies persons who are qualified to become Directors Sr.
No.
and who may be appointed in the Senior Management in attended
accordance with the criteria laid down and recommend to 1. Dr Tejendra Mohan Bhasin, 4 2,00,000
the Board their appointment and removal. The Company Chairman
has in place Policy on Fit and Proper Criteria of Directors 2. Mr. R Chandrasekaran 4 2,00,000
and Nomination and Remuneration Policy for Directors, 3. Mr. Sudarshan Sen 3 1,50,000
Key Managerial Personnel, Senior Management, and 4. Mr. Girish Kousgi 2 -
other employees in terms of the provisions of the (From 21/10/2022)
Companies Act, 2013, and the Listing Regulations and can Mr. Hardayal Prasad 2 -
be accessed at https://www.pnbhousing.com/investor- (Ceased from 20/10/2022)
relations/corporate-governance/. Details of remuneration
paid to all the Directors forms part of the annual return d. Stakeholders Relationship Committee (SRC)
MGT-7, available on the website. The Committee oversees investor relations, recommend
The annual compensation package of the Managing to the Board raising of equity share capital and allotment
Director & CEO is recommended by the NRC to the of equity shares and investors’ grievances. The Committee
Board. The NRC approves compensation package of all has been delegated powers, role and responsibilities as
the functional heads. required under section 178 of the Companies Act, 2013 and
as per the Listing Regulations, as amended.
During the year, the NRC had met thirteen times on
April 04, April 12, April 25, May 09, June 03, June 29, During the year, the SRC Committee has met five times
August 01, August 08, September 01, September 08, on June 16, November 29, 2022, February 09, March 22
October 20, December 19 and December 24, 2022. The and March 27, 2023.
details of attendance at the NRC Meetings are as under:
Number of
Sr.
No.
attended
Number of
Sr.
Directors Meetings Sitting fee (J) 1. Ms Gita Nayyar, Chairperson 5 2,50,000
No.
attended
2. Mr Atul Kumar Goel 5 -
1. Mr. R Chandrasekaran, 11 4,70,000 (From 05.05.2022)
Chairman
3. Mr. Sunil Kaul 5 -
2. Mr. Sunil Kaul 13 -

risk and other objectives such as a return on average
Number of
Sr.
Directors Meetings
assets, return on average equity, tier 1 leverage ratio,
Sitting fee (J)
No.
attended total risk-based capital ratio and NIM on average interest
4. Mr. Girish Kousgi 4 - earning assets.
(From 21/10/2022)
The objective of Market Risk Policy is to assist in
Mr. Hardayal Prasad 1 -
maximizing the risk adjusted rate of return by providing
(Ceased from 20/10/2022)
inputs regarding market risk profile and portfolio
performance, establish the guidelines to manage the
e. Risk Management Committee
market risks identified, to ensure risks are measured
The Board has approved Risk Management Policies and monitored and to establish limit framework and
of the Company. The Committee oversee and reviews ensure that positions taken are within the approved
various aspects of risk management and review the risk tolerance limits. The Stress Testing policy defines
major risk exposures of the Company. It assists the different types of stress tests such as, Regular and Ad-
Board in determining the nature and extent of the hoc stress tests in scenarios for liquidity, market, credit
significant risks, including credit risk, liquidity and and operational risks.
funding risk, market risk, product risk and reputational
risk. It oversees the guidelines, policies and processes The objective of IT policy is to maximize IT value and
for monitoring and mitigating such risks. The Committee promote the most productive usage of IT products and
has been delegated powers, roles, and responsibilities as services. The objective of Information Security policy is
per the Listing Regulation, as amended. to ensure that appropriate measures are put in place to
protect corporate information and IT systems, services
The Committee has met six times during the year on May & equipment.
17, August 16, October 29, November 15, 2022, February
15, and March 23, 2023. None of the risks faced by the Company threaten its
existence. The Company has in place the board level
Risk Management Committee. The terms of reference
Number of
Sr. and the composition forms part of the Report. The
No.
attended Company has also in place the designated Chief Risk
1. Dr T M Bhasin, Chairman 6 2,80,000 Officer in compliance of the RBI Master Directions. The
2. Mr. Sunil Kaul 5 - Risk Management Committee reviews various risks
3. Mr. Neeraj Vyas 6 2,80,000 faced by the Company and also monitor the measures
undertaken to mitigate the same.
4. Mr. Girish Kousgi (From 4 -
21/10/2022)
f. Credit Committee (CCB)
(Ceased from 20/10/2022) It reviews and formulates credit policy parameters
Leave of absence was granted to the concerned Director who could for loans to various segments, review the feedback
not attend the Committee Meetings mechanism to policy to improve and to maximize risk/
return matrix. The CCB reviews the credit performance
Risk Management policies and collection effectiveness of the loan portfolio. The
The Company has implemented a comprehensive Board has also delegated powers to sanction loans to
Enterprise Risk Management Policy along with the Committee.
functional level risk management policies covering the During the year, the CCB had met thirteen times on May 18,
following policies. The “Integrated Risk Management” June 15, July 25, August 10, September 05, December 15,
(IRM) policy provides broad direction to all activities, December 23, December 31,2022, January 04, January 18,
associated with risk management including credit, February 13, February 25 and March 17, 2023. The details
market and operational risk management and other of attendance at the CCB Meetings are as under.
risks. It defines the governance model and fixes the
role and responsibility of each constituent of risk
Number of
management framework. Sr.
No.
attended
The credit risk management policy facilitates the
1. Mr. Neeraj Vyas, Chairman 12 5,80,000
Company to take appropriate risks to achieve its
2. Mr. Kapil Modi 11 -
business objectives within the acceptable level of risk
tolerance. The Credit Risk policy sets out the principles, 3. Mr. Pavan Kaushal (From 8 4,00,000
27/10/2022)
standards and approach for credit risk management
at the Company level and details a comprehensive 4. Mr. Girish Kousgi (From 8 -
21/10/2022)
framework to identify, assess, measure, monitor, control
and report credit risks in a timely and efficient manner.
(Ceased from 20/10/2022)
The Assets Liability Management Policy provides for
liquidity management, management of interest rate Leave of absence was granted to the concerned directors who could
not attend the Committee Meetings

g. IT Strategy Committee MEETING OF INDEPENDENT DIRECTORS

The Committee approves IT strategy, IT policy The Independent Directors met on April 04, 2022 and
documents, cyber security and IT security. It guides March 29, 2023. The Independent Directors met without the
the management to put in place an effective strategic presence of Non-Independent Directors. The Independent
planning process. It ascertains that the Management has Directors have evaluated the performance of Chairperson
implemented processes and practices to ensure that the of the Board, Non-Independent Directors and of the Board
IT delivers value to the business, that the IT investments during the year and quality of Board performance, timeliness
represent a balance of risks, benefits and IT budget. of flow of information with the Board.
It monitors the method that the management uses to
determine the IT resources needed to achieve strategic REMUNERATION OF DIRECTORS
goals and provide high level direction for sourcing and Independent Directors and Non-Executive Non-Nominee
use of IT resources. It monitors IT risks and controls. Directors are paid sitting fees and commission on net profits.
During the year, the IT Strategy Committee had met During the year under review, the sitting fees payable to
four times on June 21, October 06, November 15, 2022 Independent Directors for attending meetings of the Board
and March 21, 2023. The details of attendance at the IT of Directors of the Company was revised from H50,000 to
Committee Meetings are as under. H1,00,000 per Board Meeting w.e.f. 30/05/2022. The sitting
fees for attending the meetings of Committees of Board
was revised from H30,000 to H50,000 per meeting w.e.f.
Number of
Sr. 30/05/2022. The Commission payable to all the independent
No.
attended directors is restricted to 0.25% of the net profits of the
1. Mr. R Chandrasekaran, 4 2,00,000 Company as approved by the Shareholders of the Company.
Chairman
Details of sitting fees and commission paid during Financial
2. Mr. Kapil Modi 4 -
Year 2022-23 is provided in the Form MGT-7 which is placed
3. Mr. Pavan Kaushal (From 1 50,000
on the website of the Company.
27/10/2022)
4. Mr. Girish Kousgi (From 2 -
Sitting Fees paid
21/10/2022)
S. Committee/ Commission
Mr. Hardayal Prasad 2 - Name Board Total
No. other paid
(Ceased from 20/10/2022) Meetings
Meetings
1 Mr. R 13,50,000 9,50,000 15,00,000 38,00,000
KEY MANAGERIAL PERSONNEL Chandrasekaran
2 Mr. Nilesh S 15,50,000 12,60,000 15,00,000 43,10,000
Pursuant to the provisions of Section 203 of the Companies Vikamsey
Act, 2013 read with Rules made thereunder, following are the 3 Mr. Neeraj Vyas 16,50,000 14,60,000 15,00,000 46,10,000
Key Managerial Personnel of the Company:
4 Dr Tejendra Mohan 16,50,000 12,20,000 15,00,000 43,70,000
Bhasin
a. Mr. Girish Kousgi, Managing Director & CEO (w.e.f.
5 Mr. Sudarshan Sen 9,50,000 12,00,000 15,00,000 36,50,000
21/10/2022)
6 Ms. Gita Nayyar 15,50,000 8,00,000 12,50,000 36,00,000
b. Mr. Vinay Gupta, Chief Financial Officer (w.e.f. 26/10/ 7 Mr. Pavan Kaushal 7,00,000 5,00,000 - 12,00,000
2022)
8 Mr. Ashwani Kumar 1,50,000 30,000 15,00,000 16,80,000
Gupta (Ceased on
c. Mr. Sanjay Jain, Company Secretary and Chief 11.05.2022)
Compliance Officer Total 95,50,000 74,20,000 1,02,50,000 2,72,20,000
Mr. Hardayal Prasad resigned as Managing Director &
CEO, with effect from October 20, 2022. Mr Kapish Jain, Managing Director & CEO
resigned as Chief Financial Officer w.e.f. April 07, 2022 and Mr. Girish Kousgi is the Managing Director and CEO of the
Mr. Kaushal Mithani, Chief Financial Officer (Interim) resigned Company for a period of four years with effect from
w.e.f. August 23, 2022. October 21, 2022, till October 20, 2026. Mr. Hardayal Prasad
The status of shareholders’ complaints during Financial Year was the Managing Director and CEO of the Company up to
2022-23, is mentioned below: October 20, 2022.
The remuneration of the Managing Director & CEO is

Complaints received Complaints resolved Complaints pending at recommended by the Nomination & Remuneration Committee
during the year during the year the end of the year
and approved by the Board. The key objective of the
(in Nos.) (in Nos.) (in Nos.)
remuneration is to ensure that it is aligned to the overall
0 N.A. N.A.
performance of the Company. The remuneration package
However, the Company has received few requests for of the Managing Director & CEO comprises of salary,
revalidation of dividend warrants and physical copy of performance linked variable pay and usual perquisites as
annual report. The same has been taken into consideration per Company’s HR policy approved by the Board. In addition,
and closed. he is entitled to ESOPs. The Managing Director & CEO of

the Company has not received any commission from the functioning and to assess the balance of skills, knowledge
subsidiaries of the Company. and experience on the Board.
Details of remuneration paid/payable to the Managing The evaluation of performance of the Board of Directors,
Director during the year under review is provided in Form Board Committees and individual Directors was carried out
MGT-7. Details of ESOP Options of Managing Director: during the year on the basis of a structured questionnaire
comprising of evaluation criteria forming part of the
Remuneration to Managing Director, Whole-time Directors and/ policy, through peer evaluation, excluding the Director
or Manager: being evaluated.
Evaluation criteria for Board includes communication

Total amount (J)
Sl. with management, succession planning, independence,
Particulars of remuneration Mr. Hardayal Mr. Girsih
No. remuneration, strategy and performance, conflict of interest,
Prasad Kousgi
culture, frequency of meetings, agenda, training, qualification,
1 Gross Salary
evaluation of risk, performance evaluation, access to
a) Salary (as per provisions 1,30,88,447 1,09,83,494
management etc. Evaluation criteria for Committees includes
contained in section 17(1) of
the Income tax Act, 1961 contribution, effectiveness, independence, composition,
b) Value of perquisites under - - structure and meetings.
section 17(2) of the Income
Evaluation criteria for individual directors includes fulfilment
tax Act, 1961
of functions, knowledge and skill, participation and
c) Profits in lieu of salary under - -
section 17(3) of the Income
personal attributes.
tax Act, 1961
2 Stock Option Separate Table Separate Table INVESTOR GRIEVANCES
3 Sweat Equity - - In accordance with the Listing Regulations, the Board has
4 Commission as % of profit - - appointed Mr. Sanjay Jain, Company Secretary, as the
Compliance Officer of the Company.
5 Performance Bonus *
Total 1,30,88,447 1,09,83,494 During the year, the Company has not received any
* Hardayal Prasad, was paid H2.50 crore as ex-gratia amount in lieu of
complaints from the investors. The Company has received
performance bonus for the previous financial year FY 2021-22, pro-rata few requests for physical copy of Annual Reports and
performance bonus for the services rendered till the exit date during the revalidation of dividend warrants which has been taken into
financial year 2022-23, salary in lieu of 90 days’ notice period as ex- consideration and closed.
gratia and goodwill payment as additional ex-gratia.
a. First tranche: H1.25 crore was paid in FY 2023. SUBSIDIARY COMPANIES

b. Second tranche: H1.25 crore was paid in FY 2024. The Company has two wholly owned subsidiaries, “PHFL
Home Loan and Services Limited” and ‘PEHEL Foundation’.
Options No. of options PHFL Home Loans was incorporated on August 22, 2017.
Name Grant Date Vesting Period
Granted exercised The Company is a distribution arm for PNB Housing Finance,
Mr. Hardayal August 19, 5,50,000 The ESOPs 1,65,000 offering doorstep services to the prospective customers.
Prasad 2020 vesting was (The balance
10% in Year 1, 70% options Pehel Foundation is a wholly owned subsidiary of PNB
20% in Year 2, have lapsed Housing Finance Limited incorporated on October 14, 2019. It
30% in Year post his
is incorporated as a CSR Foundation of the Company with the
3 and 40% in resignation
Year 4. from the main objective to implement projects, programmes and such
Board w.e.f other activities as specified in Schedule VII of Companies Act,
Oct. 20, 2013, as may be necessary under CSR Policy of PNB Housing
2022)
Finance Limited and/or its group companies and/or other
Mr. Girish October 21, 5,75,000 The ESOPs - donors/companies in terms of Section 135 of the Companies
Kousgi 2022 shall vest 20%
in Year 1, 20%
Act, 2013.
in Year 2, 30%
The subsidiaries are not material subsidiary within the
in Year 3 and
30% in Year 4. meaning of the Listing Regulations. The Company has
formulated a policy for determining material subsidiary,
which is available on Company’s website at https://www.
BOARD EVALUATION
pnbhousing.com/investor-relations/corporate-governance/.
This Board’s evaluation process has been adopted by the
Company in terms of the Companies Act, 2013 and the EMPLOYEE STOCK OPTION SCHEME (ESOS)/
circular issued by the SEBI. It applies to all the Directors RESTRICTED STOCK UNIT SCHEME
of the Company. Its main objective is to ensure effective
The disclosures as required under SEBI (Share Based
and efficient Board operations towards corporate goals and
Employee Benefits and Sweat Equity) Regulations, 2021 as
objectives, to identify ways to improve Board member’s
amended, have been placed on the website of the Company.

PROCEEDS FROM PRIVATE PLACEMENT OF DEBT Company towards its various stakeholders and lays down the
ISSUES Corporate Governance practices of the Company. The said
Policy is available on the website of the Company and can be
During the year, the Company has raised H150 crore of
accessed at https://www.pnbhousing.com/investor-relations/
secured NCDs through private placements in one series. As
corporate-governance/
specified in the offer document, the funds were utilised for
onward lending.
GENERAL PROCEDURE FOR POSTAL BALLOT
TRANSACTIONS WITH NON-EXECUTIVE DIRECTORS 1. The notices containing the proposed resolutions and
explanatory statement are sent to the Shareholders at
The Non-Executive Directors of the Company do not have any
the addresses registered with the Company along with
pecuniary relationship or transactions with the Company.
a Postal Ballot Form and a postage pre-paid envelope
None of the Directors are related to each other. containing the address of the Scrutinizer appointed by
the Board for carrying out the Postal Ballot process.
SHAREHOLDING OF DIRECTORS
2. The Postal Ballot Forms received within 30 days of
The details of shareholding of Directors are disclosed in MGT- despatch are considered by the Scrutinizer.
7 form available on the website of the Company at https://
www.pnbhousing.com/investor-relations/annual-reports/. 3. The Scrutinizer submits his report to the Chairman/
authorized person of the Company, who based on the
PREVENTION OF INSIDER TRADING report announces the results.
The Board has adopted a Code of Practices & Procedures for 4. e-voting facility is provided to the Shareholders. Under
Fair Disclosure of Unpublished Price Sensitive Information this facility, the Shareholders are provided an electronic
(UPSI) and Share Dealing Code for Prevention of Insider platform to participate and vote on the resolutions to be
Trading in terms of SEBI (Prevention of Insider Trading) passed through Postal Ballot.
Regulations, 2015. The Code has been amended in compliance
with the provisions of SEBI (Prevention of Insider Trading) TOTAL FEES PAID TO STATUTORY AUDITORS BY
Regulations, as amended from time to time. COMPANY AND ITS SUBSIDIARY FOR ALL THE
SERVICES DURING FINANCIAL YEAR 2022-23
The Code ensures that the employees deal in the shares
of the Company only at a time when any price sensitive During the year, the Statutory Auditors received a total
information that could be known to the employee is also remuneration of H1.08 crore from the Company and H0.09
known to the public at large. This Code is applicable to crore from its subsidiaries. The remuneration pertains to
designated employees, their immediate relatives and fees for audit, internal financial control reporting, limited
Directors of the Company. reviews, tax audits and taxation services, certifications and
other matters and reimbursement of expenses. In addition,
CODE OF CONDUCT the Statutory Auditors were paid fees in relation to the Rights
Issue related services amounting to H0.65 crore (excluding
The Board has laid down a Code of Conduct for all the Board
applicable taxes).
Members and designated employees of the Company. The
Code of Conduct is posted on the website of the Company.
INTERNAL FINANCIAL CONTROL
For the year under review, all Directors and members of
Management have affirmed their adherence to the provisions The Company has an Internal Audit Department to conduct
of the Code. audit of functional areas and operations of the Company, the
adequacy of compliance with policies, procedures, statutory
VIGIL MECHANISM AND WHISTLE BLOWER POLICY and regulatory requirements. The Internal Audit Department
monitors and evaluates the efficacy and adequacy of internal
The Board has approved the vigil mechanism and whistle
control system in the Company, its compliance with operating
blower policy of the Company, which provides a framework
systems, accounting procedures and policies at all locations
to promote a responsible and secure whistle blowing. It
of the Company.
protects employees wishing to raise concern about serious
irregularities within the Company. The Audit Committee Significant audit observations and corrective actions thereon
oversees the vigil mechanism and employees have access to are presented to the Audit Committee every quarter. The
the Audit Committee. The policy is placed on the website of Audit Committee reviews and evaluates adequacy and
the Company. effectiveness of the Company’s internal control environment
and monitors the implementation of audit recommendations.
INTERNAL GUIDELINES ON CORPORATE
The Audit Committee and Board of Directors have approved a
GOVERNANCE
documented framework for the internal financial control to be
During the year under review, the Company has adhered to followed by the Company and such policies and procedures
the internal Guidelines on Corporate Governance adopted adopted by the Company for ensuring the orderly and efficient
in accordance with the clause 55 of the Chapter IX of the - conduct of its business, including adherence to Company’s
Corporate Governance of RBI Directions, which, inter-alia, policies, safeguarding of its assets, prevention and detection
defines the legal, contractual and social responsibilities of the of frauds and errors, accuracy and completeness of the

accounting records and timely preparation of reliable financial course of business. The relevant extracts from Related Party
information and disclosures. Transaction Policy is given in a separate annexure. For full
details please refer our website www.pnbhousing.com
DISCLOSURES
Accounting Standards / Treatment
Related Party Transactions
The Company has complied with Indian Accounting Standards
The Policy on Related Party Transactions as approved by the (‘Ind AS’) notified under Section 133 of the Companies Act
Board is available on Company’s website at https://www. 2013 (‘the Act’) and rules made thereunder. The financial
pnbhousing.com/investor-relations/corporate-governance/. statements for the year have been prepared in accordance
There were no material transactions with related parties that with Schedule III to the Companies Act, 2013.
may have potential conflict of interest with the Company.
Details of related party transactions entered into by the Management Discussion and Analysis Report
Company in the ordinary course of its business and at
The Management Discussion and Analysis Report forms part
arm’s length are included in the notes forming part of the
of the Directors’ Report.
financial statements. There were no financial or commercial
transactions by the senior management with the Company
General Meetings
where they have personal interests that may have a potential
conflict with the interests of the Company at large. During the The Annual General Meetings for the last 3 years were held
year, the Company has obtained credit facility viz. term loans, on August 05, 2020 at 3.00 pm, September 03, 2021 at 3.00
overdraft, with Punjab National Bank. All the transactions pm and July 26, 2022 at 3.00 pm. One EGM was held on June
were in the ordinary course of business and at arm’s length. 22, 2021 at 3.00 pm. Due to pandemic, the AGM/EGM were
held through Video Conferencing (VC)/ Other Audio-Visual
The Company has taken approval from the shareholders for Means (OAVM) as permitted by MCA circular.
entering into various banking and other transactions with
Punjab National Bank and PNB Gilts Limited in the ordinary
Eight special resolutions were passed at the previous four General Meetings.
Number of Special
S.No Particulars of General Meetings Venue, location and time Nature of resolutions
resolutions
1 AGM - August 05, 2020 Through Video Conferencing 1 To borrow funds and issue of bonds/
(VC)/ Other Audio-Visual Means non-Convertible debentures and other
(OAVM) debt securities.
2 AGM - September 03, 2021 do 1 To borrow funds and issue of bonds/
non- Convertible debentures and other
debt securities.
3 EGM - June 22, 2021 do 2 Re-appointment of Mr. Chandrasekaran
Ramakrishnan (DIN 00580842) as an
Independent Director for a second term of
5 (five) years
Re-appointment of Mr. Nilesh S Vikamsey
(DIN 00031213) as an Independent Director
for a second term of 5 (five) years.
4 AGM – July 26, 2022 do 4 To borrow funds and issue of Non-Convertible
Debentures (NCDs) on private placement basis.
Approval of Restricted Stock Unit Scheme
2022 of the Company
Approval of Employees Stock Option Scheme
(ESOP Scheme III 2022) of the Company
Approval of amendment in the Employees Stock
Option Scheme 2016.
During the year, the Company had issued following Postal a. On March 09, 2022 for appointment of Mr Binod
Ballot notices under Section 110 of the Companies Act, Kumar as Non-Executive Nominee Director. As per the
2013 read with Rule 22 of the Companies (Management and Scrutinizer’s Report, the resolution was approved as
Administration) Rules, 2014; General Circular Nos 14/2020, embodied in the Postal Ballot Notice with the requisite
17/2020, 33/2020, 39/2020, 10/2021 and 20/2021 issued majority as on the last date of e-voting on
by the Ministry of Corporate Affairs (“MCA”) dated April 08, April 08, 2022.
2020, April 13, 2020, September 28, 2020, December 31,
b. On April 13, 2022 for approval of material related party
2020, June 23, 2021 and December 08, 2021 respectively,
transactions with Punjab National Bank and PNB Gilts
(“MCA Circulars”), for seeking the consent of Shareholders
Limited. The resolution was approved as embodied in the
for approval.

Postal Ballot Notice with the requisite majority as on the as the Registrar’s Office (RTA), serves as a contact point
last date of e-voting on May 18, 2022. for shareholders.
c. On November 21, 2022 for appointment of Mr. Girish Since listing, along with the financial results, other
Kousgi (DIN 08524205) as Managing Director and information as per the listing regulations such as Annual
Chief Executive Officer of the Company, appointment Report and Shareholding Pattern, are being uploaded on BSE
of Mr. Pavan Kaushal (DIN 07117387) as an Independent website under “BSE Listing Centre” and on NSE website
Director and appointment of Mr. Dilip Kumar Jain (DIN under “NSE Electronic Application Processing System
06822012) as Non-Executive Nominee Director on the (NEAPS)”. Post listing, the presentation on quarterly results
Board of the Company. As per the Scrutinizer’s Report, and performance of the Company is placed on the website of
the resolutions were approved as embodied in the Postal the Company and furnished to stock exchanges for the benefit
Ballot Notice with the requisite majority as on the last of the investors.
date of e-voting on December 22, 2022.
The quarterly, half yearly and annual financial results of the
The Company had appointed Dr S. Chandrasekaran Company are published in newspapers and are communicated
(Membership No. FCS 1644, CP NO. 715) failing him to the stock exchanges as per the provisions of the Listing
Mr. Rupesh Agarwal (Membership No. ACS 16302, Regulations, as amended and uploaded on Company’s
CP NO. 5673), failing him Mr. Shashikant Tiwari website. In addition, the Company also publishes quarterly
(Membership No, FCS 11919, CP. No. 13050), Partners of Investor deck, which is placed on the website of the Company.
M/s Chandrasekaran Associates, Company Secretaries,
The Ministry of Corporate Affairs (MCA) and the Companies
New Delhi as the Scrutinizer for conducting the e-Voting
Act, 2013, has taken a “Green Initiative” in corporate
process in a fair and transparent manner. Accordingly,
governance by allowing paperless compliances by the
the above Postal Ballot(s) were conducted by the
Companies through electronic mode. The Listing Regulations
scrutinizer and a report was submitted.
and the Companies Act, 2013 permits companies to send soft
Details of voting pattern and scrutinizer’s report is placed copies of the Annual Report to all those shareholders who
on the website of the company www.pnbhousing.com. have registered their e-mail addresses with the Company/
Depository participant. Accordingly, the Annual Report for the
As of now, no special resolution is proposed to be
Financial Year 2022-23, notice for AGM etc., are being sent
conducted through postal ballot.
in electronic mode to shareholders who have registered their
e-mail addresses with the Company/ depository participants.
Dematerialisation of shares
As per circular no. SEBI/HO/DDHS/DDHS-RACPOD1/P/
All the shares of the Company are available for trading with CIR/2023/001 dated January 5, 2023 the Company will not be
National Securities Depository Ltd. (NSDL) and with Central sending Annual Report in physical form.
Depository Services (India) Limited (CDSL). The ISIN allotted
to Company’s equity shares is INE572E01012. As on March The Annual Report also contains a section on ‘Shareholders’
31, 2023 except 6 shares, remaining equity shares of the Information’ which inter alia provides information relating
Company are held in dematerialized form. to the AGM date, time and venue, shareholding pattern,
distribution of shareholding, top shareholders, the monthly
The Company has paid the listing fees for the year high and low quotations of the equity share during the year
2022-23 as per the Listing Regulations to the respective and other corporate governance information as required
stock exchanges. under the Listing Regulations and amendments thereto. The
Board has appointed CFO as Chief Investor Relations Officer
Investor Relations of the Company.
The Company has 1,08,269 shareholders as on March 31,
2023. The main source of information for the shareholders MEANS OF COMMUNICATION
is the Annual Report that includes, the Directors’ Report, In accordance with the Listing Regulations, the quarterly/
the shareholders’ information and the audited financial half-yearly/annual results are submitted to the National Stock
results. The Annual Report has Report of Directors on Exchange and Bombay Stock Exchange and published in
Corporate Governance and Management Discussion and leading business newspapers.
Analysis Report.
The official press releases are posted on Company’s
The Company has an evolved investor relations program. website (www.pnbhousing.com). Company’s website has
The Company’s information is available on the website helped to keep investors updated on material developments
under Investor Relations section. The shareholders are also about the Company such as; Board profile, press release,
intimated through the press, email and Company’s website, financial results, annual reports, shareholding pattern, stock
www.pnbhousing.com about the quarterly performance and information, announcements, investor presentations etc.
financial results of the Company. Shareholders will get an
opportunity to attend the Annual General Meeting where the The Company has conducted Earning’s Calls post
business outlook will be presented and Company’s operations announcement of quarterly/half-Yearly/ annual results,
can be discussed. In addition, the Corporate Office as well which were well attended by the analysts/ investors and the
transcripts were uploaded on Company’s website.

CERTIFICATION OF FINANCIAL REPORTING AND DECLARATION ON CODE OF CONDUCT
INTERNAL CONTROLS / (CEO/CFO CERTIFICATE)
In accordance with the Listing Regulations, as amended, I confirm that for the year under review Directors
Mr. Girish Kousgi, the Managing Director & CEO and and Senior Management have affirmed compliance
Mr. Vinay Gupta, the Chief Financial Officer of the Company, with the Code of Conduct of Board of Directors and
have inter alia, certified and confirmed to the Board about Senior Management.
the correctness of the financial statements, adequacy of New Delhi Managing Director & CEO
internal control measures and matters to be reported to the Date: June 22, 2023
Audit Committee.
NON-MANDATORY REQUIREMENTS EXTRACTS FROM POLICY ON RELATED PARTY

The Company is moving towards a regime of unqualified TRANSACTIONS
financial statements. The Company shall endeavour to adopt
I. INTRODUCTION
non-mandatory requirements, as and when necessary.
PNB Housing Finance Limited (‘the Company’) is a
COMPLIANCE public limited company incorporated on November 1,
1988 under the Companies Act, 1956 (Corporate Identity
The Company has complied with the mandatory requirements
Number L65922DL1988PLC033856). The Company
as stipulated under Regulation 17 to 27, 46, 34(3) and 53 of the
is registered as a Housing Finance Company with the
Listing Regulations. The Company has submitted the quarterly
National Housing Bank (NHB) under the NHB Act, 1987.
compliance status report to the stock exchanges within the
prescribed time limit. The Company has also received a The SEBI (Listing Obligations and Disclosure
certificate from the Practising Company Secretary confirming Requirements) Regulations, 2015 (“SEBI Listing
that none of the Directors have been debarred or disqualified. Regulations”) and Master Direction – Non-Banking
During the year under review, the Company has not raised any Financial Company – Housing Finance Company
funds through Preferential Allotment or Qualified Institutions (Reserve Bank) Directions, 2021 requires a
Placement as specified under the Listing Regulations. Company to adopt a policy on materiality of Related
Party Transactions and on dealing with Related
STRICTURES AND PENALTIES DURING LAST 3 YEARS Party Transactions.
a. During FY 2022-23, BSE Limited and NSE Limited have In view of the above, the Board of Directors (“Board”)
levied a penalty of H4.25 lakh each plus GST each on of the Company has adopted the Policy on Related Party
21/11/2022 and 21/02/2023 for non-compliance with Transactions (“Policy”).
the proviso to Regulation 17 (1) (b) of Listing Regulations
i.e., the Board of Directors of the listed entities where II. OBJECTIVE OF THE POLICY
the listed entity does not have a regular non-executive
The objective of this Policy is to set out:
chairperson, at least half of the board of directors shall
comprise of independent directors. i. Materiality of Related Party Transactions;
b. During FY 2021-22, BSE Limited and National Stock ii. Manner of dealing with the transactions between
Exchange of India Limited have levied a penalty of H2.70 the Company and its Related Parties and other
lakh each plus GST each for delay in appointment of Related Party Transactions, as may be required,
woman director. The National Housing Bank has imposed a in accordance with the Companies Act, 2013,
monetary penalty of H0.80 lakh plus GST on the Company Regulation 23 of the SEBI Listing Regulations
for non-adherence of policy circular no. 58 and 75. and any other statute, law, standards, regulations
relating to Related Party Transactions; and
c. During FY 2020-21, the National Housing Bank
has imposed a penalty of H190.00 lakh plus GST on iii. Laying down the guiding principles and mechanism
the Company. to ensure proper approval, disclosure and reporting
of transactions as applicable in the best interest of
SECRETARIAL STANDARDS the Company
The Company has complied with the applicable provisions
of Secretarial Standards issued by The Institute of Company III. DEFINITIONS
Secretaries of India. i. ‘ Act’ means the Companies Act, 2013, as amended
from time to time.
ii. ‘Arm’s Length Transaction’ means a transaction

between the Company and its Related Party(ies)
that is conducted as if they are unrelated, so that
there is no conflict of interest.

iii. ‘Audit Committee’ means Audit Committee of Board royalty shall also be considered material if the
of Directors of the Company constituted under transaction(s) to be entered into individually
provisions of the Act and SEBI Listing Regulations. or taken together with previous transactions
during a financial year, exceed five percent
iv. ‘Board of Directors’ or ‘Board’ means Board of
of the annual consolidated turnover of the
Directors of the Company as constituted from time
Company as per the last audited financial
to time.
statements of the Company.
v. ‘Company’ means PNB Housing Finance Limited.
B. Under the Act:
vi. ‘Compliance Officer’ may be a Company Secretary
means transactions as defined under Section
of the Company or any other person as may be
188(1) of the Act with Related Parties as defined
authorized by the Board for this purpose.
under Section 2(76) of the Act where the aggregate
vii. “Material modification” shall mean any modification value of the transaction/ transactions to be
made in the terms and conditions of any ongoing or entered into individually or taken together with
proposed Related Party Transaction, as originally previous transactions during a financial year,
approved which, individually or taken together exceeds the limits as prescribed under the Act
with previous modifications during a financial year, from time to time. Rule 15 of Companies (Meeting
results in variation in the value of the Related Party of Board and its Power) Rules, 2014 prescribes
Transaction, as tabulated in the Annexure (except the specified transactions and threshold limits as
for the specified transactions covered as per the tabulated below:
Act) or has significant impact on the nature, tenure,
exposure, as may be determined by the Audit Prescribed transaction
Threshold Limits
Committee from time to time; categories
Sale, purchase or supply Amounting to 10 per cent
Provided that a modification shall be material, if by of any goods or material or more of turnover of
such modification, the terms of the contract cease (directly or through an the Company
to be arms’ length. agent)
Selling or otherwise Amounting to 10 per cent
Provided further that the following shall not be
disposing of, or buying, or more of net worth of
considered as material modification - property of any kind the Company
(directly or through an
− modifications which may be mandated pursuant to agent)
change in law;
Leasing of property of any Amounting 10 per cent
− modifications pursuant to and in accordance with kind or more of turnover of
the Company
the terms of the approved transaction/contract apart
Availing or rendering of any Amounting to 10 per cent
from the above defined material modification;
services or more of turnover of
− modifications resulting from change in constitution (directly or through an the Company
agent)
of either of the parties pursuant to schemes of
arrangement (e.g. merger, amalgamation, demerger, Appointment to any office Remuneration exceeding
or place of profit in the H2.5 lakh per month of
etc.) approved by appropriate authority; company, subsidiary the Company
company or associate
− modifications which are purely technical and do not
company
result in substantive change or alteration of rights,
Underwriting the Remuneration exceeding
interests, and obligations of any of the parties; subscription of any one per cent of net worth
securities or derivatives of of the Company
− modifications uniformly affected for similar
the company
transactions with unrelated parties;
Related Party(ies)’ shall have the same meaning as
ix.
viii. ‘Material Related Party Transaction’
defined under the Act, SEBI Listing Regulations and
A. Under the SEBI Listing Regulations: Indian Accounting Standards (Ind AS) including all
amendments and modifications thereof from time
a. means transaction with a Related Party if the
to time.
transaction(s) to be entered into individually
or taken together with previous transactions Further, as per SEBI Listing regulation:
during a financial year, exceeds H1,000 crore
(a) any person or entity forming a part of the
or ten percent of the annual consolidated
promoter or promoter group of the listed
turnover of the Company as per the last
entity; or
audited financial statements of the Company,
whichever is less. (b) any person or any entity, holding
equity shares:
b. a transaction involving payments made to a
Related Party with respect to brand usage or (i) of twenty per cent or more; or

(ii) of ten per cent or more, with effect from April ii. The Chief Financial Officer shall maintain a
1, 2023; complete list of Related Parties, and update the
same as and when any change is necessitated.
in the listed entity either directly or on a beneficial
The list shall be disseminated to all business
interest basis as provided under section 89 of
functionaries for their ready reference while
the Companies Act, 2013, at any time, during
undertaking any transaction.
the immediate preceding financial year; shall be
deemed to be a related party. iii. Besides, the Chief Financial Officer shall also
maintain a list of Related Parties of its subsidiaries,
‘Related Party Transaction’ means a transaction
x.
which may be sourced from respective subsidiaries
involving transfer of resources, services or
on a periodic (quarterly) basis or as and when
obligations between:
needed. Adequate systems must be in place to
(i) the Company or any of its subsidiaries on one ensure that the RPTs in which the Company is
hand and a related party of the listed entity or not a party, but the subsidiary is a party, shall
any of its subsidiaries on the other hand with be brought to the information of the Company
effect from April 1, 2022; or in a timely manner, for necessary approvals,
wherever required.
(ii) the Company or any of its subsidiaries on one
hand, and any other person or entity on the iv. The Chief Financial Officer will be responsible for
other hand, the purpose and effect of which is providing prior notice to the Compliance Officer
to benefit a related party of the listed entity or of any potential Related Party Transaction. He
any of its subsidiaries, with effect from April 1, will also be responsible for providing additional
2023; whether a price is charged or not. information about the transaction that may be
required, for placing before the Audit Committee,
A transaction with a Related Party shall be
the Board or shareholders, as the case may be.
construed to include a single transaction or a group
of transactions in a contract. v. The suggested details and list of records and
supporting documents which are required to
‘SEBI Listing Regulations’ mean the
xi.
be provided to the Audit Committee, Board and
SEBI (Listing Obligations and Disclosure
shareholders of the Company for the proposed
Requirements) Regulations, 2015 including any
Related Party Transaction are provided in
amendments thereof.
Annexure II to this Policy.
“Specified Transaction” means the transaction
xii.
vi. If required, the Company may refer any potential
which has been specified in Section 188 of the Act.
Related Party Transaction to any external legal
‘Stock Exchange’ means the stock exchange where
xiii. consultant/ expert for obtaining his/ her opinion
equity shares of the Company are listed. on any legal/ regulatory issues involved in the
potential Related Party Transaction and the
xiv. ‘ Turnover’ Turnover or Net Worth shall be on the
outcome or opinion of such exercise shall be
basis of the Audited Financial Statement of the
brought to the notice of the Audit Committee. The
preceding Financial year.
Audit Committee shall have the right to obtain
Unless the contrary is apparent from context, words and external professional advice in relation to related
expressions used and not defined in this Policy shall party transactions.
have the same meaning as contained in the Act read with
rules made thereunder, the SEBI Listing Regulations or IV.2. Approval Mechanism for Related Party Transaction
any other cognate statute.
IV.2.1. Approval by the Audit Committee
IV. MANNER OF DEALING WITH RELATED PARTY All Related Party Transactions and Material
TRANSACTION Modification(s) thereto shall require prior approval
of the Audit Committee irrespective of whether such
IV.1. Identification of Related Parties and Related Party transactions are in the ordinary course of business and/
Transactions: or at arm’s length or not.
i. Every Director and/or Key Managerial Personnel
Prior approval of the Audit Committee of the listed
of the Company shall disclose to the Compliance
entity shall also be required in case of a related party
Officer in form MBP-1, at the time of his
transaction to which the subsidiary of the Company is a
appointment, in beginning of every financial
party but the Company is not a party, if the value of such
year and wherever there is any changes in the
transaction whether entered into individually or taken
disclosures so made, about all persons, entities,
together with previous transactions during a financial
firms, or other organizations in which he/ she is
year exceeds 10% of annual consolidated turnover (w.e.f.
interested along with unique identification number/
April 1, 2023, 10% of the annual standalone turnover,
PAN, whether directly or indirectly including details
as per the last audited financial statements of the
of relatives etc.

subsidiary), as per the last audited financial statements d) review, at such intervals as the Audit
of the Company; Committee may deem fit, Related Party
Transaction entered into by the Company
However, such prior approval shall not be required for
pursuant to each of the omnibus
(i) a related party transaction wherein Regulation 23 is
approval made;
applicable to such subsidiary, since in that case prior
approval of the audit committee of the subsidiary will e) Transactions which cannot be subject to the
be obtained; and (ii)such other transactions which may omnibus approval by the Audit Committee.
be exempted under the Listing Regulations, from time
ii. The omnibus approval granted by the Audit
to time.
Committee shall indicate the following :-
Approval of the Audit Committee shall not be required
a. name of the Related Party(ies);
for any transaction which has been entered into by
the Company with its wholly owned subsidiary or b. nature and duration of the transaction;
transactions entered into between two wholly- Owned
c. maximum amount of transaction that can be
subsidiaries of the Company, whose accounts are
entered into;
consolidated with the Company and placed before the
General Meeting for approval. However, approval shall d. the indicative base price or current contracted
be required in case of Specified Transaction between price and the formula for variation in the price,
the Company and its wholly owned subsidiary company. if any; and
Transactions for which prior approval has been e. any other information relevant or important
accorded by the Audit Committee, should be placed for for the Audit Committee to take a decision on
review by the Audit Committee at such intervals, as the proposed transaction:
may be decided by the Audit Committee, but least on an
iii. Where need of the Related Party Transaction cannot
annual basis.
be foreseen and above details are not available,
Only those members of the Audit Committee who are the Audit Committee may grant omnibus approval
independent directors, shall approve Related Party subject to the value per transaction shall not exceed
Transactions. Any member of the Audit Committee who by H1,00,00,000 (Rupees One Crore Only).
has a potential interest in any Related Party Transaction
iv. The Audit Committee shall review, at least on
will recuse himself and abstain from discussion and
a quarterly basis, the details of Related Party
voting on the approval of the Related Party Transaction.
Transactions entered into by the Company pursuant
to each of the omnibus approvals given.
Omnibus approval of Related Party Transactions:
In the case of repetitive transactions which are in the v. The omnibus approval provided by the Audit
normal course of business of the Company, the Audit Committee shall be valid for a period not exceeding
Committee may grant omnibus approval keeping in mind one financial year and shall require fresh approval
repetitiveness and justification for the need for the after the expiry of such financial year.
omnibus approval. vi. Such omnibus approval shall not be made by the
While granting omnibus approval, the Audit Committee Audit Committee for the transactions in respect
shall satisfy itself on the need for omnibus approval for of selling or disposing of the undertaking of
transactions of repetitive nature and such approval shall the Company.
be in the interest of the Company.
IV.2.2. Approval by the Board
Criteria for making the omnibus approval: i. Related Party Transaction shall require Board
i. The Audit Committee shall, after obtaining approval approval in the following cases:
of the Board of Directors, specify the criteria for a. If the Related Party Transaction is not in the
making the omnibus approval which shall inter alia ordinary course of business or not at Arm’s
include the following, namely: Length Basis; or
a) maximum value of the transactions, in b. the Audit Committee determines that a Related
aggregate, which can be allowed under the Party Transaction should be brought before
omnibus route in a year; the Board; or
b) the maximum value per transaction which can c. the Board in any case elects to review any
be allowed; Related Party Transaction suo moto; or
c) extent and manner of disclosures to be made d. the Related Party Transaction needs to be
to the Audit Committee at the time of seeking approved by the Board under any law for the
omnibus approval; time being in force.

ii. Approval of the Board of Directors shall not be The Audit Committee/ Board shall, inter-alia, consider
required for the transaction entered into by the the following factors to the extent relevant to
Company with its wholly owned subsidiary or the transaction:
with any other party, if such transaction is in
i. Whether the terms of the Related Party Transaction
the ordinary course of business and on an arm’s
are in the ordinary course of the Company’s
length basis.
business and are on an arm’s length basis;
iii. The considerations set forth above in case of
ii. Whether there are any compelling business
Audit Committee shall also apply to the Board’s
reasons for the Company to enter into the Related
review and approval of the proposed Related Party
Party Transaction and the nature of alternative
Transaction with such modification as may be
transactions, if any;
necessary or appropriate under the circumstances.
iii. Whether the Related Party Transaction includes
iv. Any member of the Board who has a potential
any potential reputational risks that may arise as
interest in any Related Party Transaction will
a result of or in connection with the proposed
recuse himself and abstain from discussion
transaction; and
and voting on the approval of the Related
Party Transaction. iv. Whether the Related Party Transaction would affect
the independence or present a conflict of interest
IV.2.3. Approval by the Members for any Director or Key Managerial Personnel of
Unless exempted under the Act/SEBI Listing the Company.
Regulations., as the case may be, all Material
Related Party Transactions and subsequent Material V. RELATED PARTY TRANSACTIONS NOT
Modifications shall require prior approval of the PREVIOUSLY APPROVED
shareholders by way of an ordinary resolution. No In the event of any Director, Key Managerial Personnel or
Related Party(ies) shall vote to approve such resolutions any other employee becoming aware of any Related Party
whether the person/entity is a related party to the Transaction(s) that the transaction has been omitted to
particular transaction or not. be approved by the Audit Committee/ Board/ Members,
as the case may be, or is in deviation of this Policy, such
Approval of the members shall not be required for any
person shall promptly inform to the Chief Financial Officer/
transaction which has been entered into by the Company
Compliance Officer about such transaction and such
with its wholly owned subsidiary or transactions
transaction shall be placed before the Audit Committee,
entered into between two wholly-owned subsidiaries
Board or Members, as may be required in accordance with
of the Company, whose accounts are consolidated with
this Policy for review and approval. The Audit Committee,
the Company and placed before the General Meeting
Board or Members, as the case may be, shall consider all
for approval.
relevant facts and circumstances and may decide necessary
actions as it may consider appropriate including ratification,
Approving body
Type of RPT
revision, or termination of such transaction in accordance
Audit
Committee
Board Shareholders with the provisions of the Act/Listing Regulations.
Material RPTs
VI. DISCLOSURES AND REPORTING
Material modifications
The Company shall make all disclosures and reporting
in RPTs, where RPT is
material in accordance with the provisions of applicable laws,
Material modifications
including the following -
in RPTs, where RPT is
i. As required under section 188 of the Act read with
not material
the Rules made thereunder, all the Specified
Not in ordinary course
/ arm’s length & not
Transactions with related party(ies) as defined
material under the Act, which are not on arm’s length basis
Not in ordinary course or are material in nature, shall be disclosed in the
/ arm’s length & Board’s Report of the Company.
material
ii. The Annual Report shall contain Related Party
disclosure in accordance with all applicable
IV.3. Consideration by the Audit Committee/ Board in approving
laws, including accounting standards and RBI
the proposed transactions
Master Directions.
The Audit Committee/ Board shall take into account all
relevant facts and circumstances including the terms of iii. The Compliance Officer shall also make necessary
the transaction, purpose of the transaction, benefits to entries in the Register of Contracts or Arrangement
the Company and benefit to the Related Party and any required to be maintained under the Act.
other relevant matters.

iv. Details of all Material Related Party Transactions − buy-back of securities;

with its Related Parties and ‘Loans and advances
− Acceptance of fixed deposits by the Company
in the nature of loans to firms/companies in which
at the terms uniformly applicable/offered to all
directors are interested by name and amount shall
shareholders/public, subject to disclosure of
be disclosed in the quarterly compliance report on
the same along with the disclosure of Related
corporate governance as per the provisions of SEBI
Party Transactions every six months to the stock
Listing Regulations.
exchange(s), in the format at specified by the Board
v. The Company shall submit within 15 days from
− such other exclusions and exemptions as may be
the date of publication of its standalone and
provided under the Act/ SEBI Listing Regulations, or
consolidated financial results for the half year (and
other applicable laws from time to time.
on the date of publication of its standalone and
consolidated financial results, w.e.f. April 1, 2023),
VIII. POLICY REVIEW AND DISSEMINATION
disclosures of Related Party Transactions on a
consolidated basis, in the format specified in the This Policy shall be reviewed annually by the Board or at
SEBI Listing Regulations as amended from time to earlier intervals as deemed necessary. Consequent upon
time and publish the same on its website. any change in the SEBI Listing Regulations/Act or any
other applicable law/ regulatory guidelines, if any, such
vi. The Company shall disclose the Policy on dealing change to the extent applicable to the Company, shall be
with Related Party Transactions on its website and deemed to be a part of this Policy.
also in the Annual Report, in accordance with RBI
Master Directions. The Company shall upload this Policy on its website
and a web link of the same will be provided in the
VII. NON APPLICABILITY Annual Report.
Notwithstanding anything contained anywhere else

IX. INTERPRETATION
in this Policy, following shall be exempted from the
purview of this Policy: Any ambiguities, interpretative issues, difficulties will
be resolved by the Board of Directors of the Company
The issue of specified securities on a preferential basis, in line with the broad intent of this Policy read with the
subject to compliance of the requirements under the applicable provisions of the Act, rules made thereunder,
Securities and Exchange Board of India (Issue of Capital and the SEBI Listing Regulations.
and Disclosure Requirements) Regulations, 2018;
In the event of any conflict between the provisions of
The following corporate actions by the listed this Policy and the Act or the SEBI Listing Regulations or
entity which are uniformly applicable/offered to all any other statutory enactments or rules, the provisions
shareholders in proportion to their shareholding: of the SEBI Listing Regulations / the Act or statutory
− payment of dividend; enactments, rules made thereunder shall prevail over to
this Policy and the part(s) so repugnant shall be deemed
− subdivision or consolidation of securities; to be severed from the Policy and the rest of the Policy
− issuance of securities by way of rights issue or a shall remain in force.
bonus issue; and

ANNEXURE I
Material Modification on type of Related Party Transactions
Variation in
the value of Variation in
Type of Transactions Variation in the nature Variation in exposure
transaction tenure (%)
(%)
Loans raised 10 Secured converted to 10 Likely to exceed the thresholds
− External commercial borrowings unsecured or vice versa prescribed by the regulator or the
− Non-Convertible debentures underlying policy approved by the Board
/ Committee governing the policy.
− Commercial Paper
− Term Loans/ working capital loans/
Overdraft/ cash credit
− Fee/charges in relation to above
Interest expense on the loan raised NA Secured converted to 10 Likely to exceed the thresholds
unsecured or vice prescribed by the regulator or the
versa underlying policy approved by the Board
Fixed deposit made 10 Premature withdrawal / NA Likely to exceed the thresholds
Variation in the basis of prescribed by the regulator or the
computation of deposit rates underlying policy approved by the Board
Fixed deposit accepted 10 Variation in the basis of NA Likely to exceed the thresholds
computation of prescribed by the regulator or the
deposit rates underlying policy approved by the Board
Interest income / expense on fixed deposit NA NA NA Likely to exceed the thresholds
made / accepted prescribed by the regulator or the
underlying policy approved by the Board
Assignment of loan including the servicing 10 NA NA Likely to exceed the thresholds
fees earned in relation to the assignment prescribed by the regulator or the
Routine banking transactions in the current NA NA NA NA
account maintained with bank in line with
bank mandate (including collection or
disbursement of loans and incidental bank
charges)
Sale / purchase of government 10 NA NA Likely to exceed the thresholds
securities prescribed by the regulator or the
Rent, maintenance and other fees/charges 10 NA NA Likely to exceed the thresholds
prescribed by the regulator or the
Remuneration, sitting fees, commission etc. NA NA NA The underlying policy approved by the
to Key Managerial / Management Personnel Board / Committee governing the policy.
Donation for CSR NA NA NA The underlying policy approved by the
Board / Committee governing the policy.

ANNEXURE II
INFORMATION TO BE PROVIDED IN RELATION TO THE PROPOSED RELATED PARTY TRANSACTION (TO THE
EXTENT RELEVANT TO THE TRANSACTION)
i. Name, PAN of the Related Party and nature of relationship;
ii. Nature and duration of the contract/transaction and particulars thereof;
iii. Material terms of the contract or arrangement or transaction including the value, if any;
iv. In case of existing or approved contracts, transactions, details of proposed variations to the duration, current price/ value
and / or material terms of the contract or arrangement including a justification to the proposed variations;
v. Any advance paid / received or to be paid / received for the contract or arrangement, if any;
vi. Manner of determining the pricing and other commercial terms, whether or not included as part of contract;
vii. Copy of the draft MOU, agreement, contract, purchase order or correspondence etc. if any.
viii. Applicable statutory provisions, if any;
ix. Valuation reports in case of sale or purchase or leasing/ renting of capital assets or securities; if any.
x. Justification as to the arm’s length nature of the proposed transaction;
xi. Declaration whether the transaction is in the ordinary course of business;
xii. Any other information prescribed under applicable regulation or relevant for the Committee / Board to take a decision on
the proposed transaction.

ANNEXURE 4
GENERAL SHAREHOLDERS’ INFORMATION
[Pursuant to Point 9 of Para C of Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]
35th Annual General Meeting

Date: August 10, 2023
Day: Thursday
Time: 4:00 P.M. (IST)
Venue: Audio Video Means
FINANCIAL YEAR
The Company follows financial year starting from April 1st of every year and ending on March 31st of the following year.
DIVIDEND PAYMENT
The Board of Directors of Company have not declared any dividend for the Financial Year 2022-23.
LISTING ON STOCK EXCHANGE

Equity Shares of PNB Housing Finance Limited are listed on the below mentioned Stock Exchanges. The International
Securities Identification Number (ISIN) in respect of the equity shares of the Company is INE572E01012.
Stock Exchange National Stock Exchange of India Limited (NSE) BSE Limited (BSE)
Address National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers,
Exchange Plaza, C-1, Block G, Dalal Street,
Bandra Kurla Complex, Mumbai- 400001
Bandra(E)
Mumbai – 400 051
Telephone number +91 22 2659 8100/114 +91 22 2272 1233/34
Website www.nseindia.com www.bseindia.com
Scrip Code PNBHOUSING 540173
DEBT SECURITIES & COMMERCIAL PAPER

The Non-Convertible Debentures (NCDs) and Commercial Papers of PNB Housing Finance are listed for trading on the National
Stock Exchange (NSE).
LISTING FEES
The Company confirms payment of Annual Listing fees to NSE and BSE for the financial year 2023-24.
STOCK MARKET PRICE DATA

The High and Low price (based on daily closing prices) and the volume of equity shares traded during each month in FY 2023
on NSE and BSE, are as under:
NSE BSE
Month Total Equity Total Equity
High(J) Low(J) High(J) Low(J)
Volume Volume
Apr-2022 426.60 375.00 68,10,324 426.15 375.20 6,45,473
May-2022 377.85 311.45 27,99,325 377.90 312.00 4,29,017
Jun-2022 409.00 318.05 1,26,85,507 409.95 317.50 7,49,734
Jul-2022 365.00 324.10 38,62,461 365.00 323.40 3,05,419
Aug-2022 378.75 341.50 66,80,608 378.90 341.95 3,63,973
Sep-2022 454.00 349.95 2,06,97,935 453.80 348.55 23,63,731
Oct-2022 460.90 380.15 1,39,43,090 460.70 380.85 9,74,442
Nov-2022 454.35 415.00 61,48,288 454.10 411.45 5,33,210
Dec-2022 543.00 420.30 4,31,29,345 542.70 420.10 21,89,490
Jan-2023 600.50 521.05 3,97,69,056 600.85 520.45 22,17,739
Feb-2023 611.85 506.25 1,38,02,183 612.00 505.90 8,64,341
Mar-2023 654.80 462.50 2,67,80,899 654.25 464.00 12,28,663
Source: www.nseindia.com and www.bseindia.com

Performance of the Share Price of Company in comparison to broad base indices

PNBHFL share price & NSE Nifty 50 movement
250
200
150
100
50
0
May, 2022
April, 2022
June, 2022
July, 2022
September, 2022
October, 2022
Nonember, 2022
Janiuary, 2023
February, 2023
March, 2023
August, 2022
December, 2022
PNBHFL Share Price NSE NIFTY
Note: PNB Housing Finance share price and NSE Nifty 50 index values on April 1, 2022, have been baselined to 100.
PNBHFL share price & BSE Sensex 50 movement
250
200
150
100
50
0
May, 2022
April, 2022
June, 2022
July, 2022
September, 2022
October, 2022
Nonember, 2022
Janiuary, 2023
February, 2023
March, 2023
August, 2022
December, 2022
PNBHFL Share Price BSE Sensex
Note: PNB Housing Finance share price and BSE Sensex index values on April 1, 2022, have been baselined to 100.

REGISTRAR AND TRANSFER AGENT
Link Intime India Private Limited is the Registrar and Transfer Agents for Equity and Debt securities of the Company. Their
contact details are as below:
Link Intime India Pvt. Ltd

C 101, 247 Park,
L.B.S. Marg, Vikhroli (West),
Mumbai – 400083
SHARE TRANSFER SYSTEM

All the equity shares of the Company are held in Dematerialized form except 6 shares which are held in physical form. The
Registrar and Transfer Agent receives a weekly report from the Depository about the details of beneficiary and update their
records. Certificates are being obtained and submitted to Stock Exchanges on yearly basis, from a Company Secretary in
practice towards due compliance of share transfer formalities by the company within the due dates, in terms of Regulation 40
(9) of SEBI LODR Regulations, 2015.
DISTRIBUTION OF SHAREHOLDING AS ON MARCH 31, 2023
S. NO. OF SHARE TOTAL NO. % OF TOTAL

Number of Shares % OF TOTAL
NO. HOLDERS SHARES SHARES
1 1 to 500 1,06,829 97.01 49,16,380 2.91
2 501 to 1000 1,704 1.55 13,13,032 0.78
3 1001 to 2000 736 0.67 10,90,114 0.65
4 2001 to 3000 288 0.26 7,15,214 0.42
5 3001 to 4000 115 0.10 4,08,270 0.24
6 4001 to 5000 101 0.09 4,72,232 0.28
7 5001 to 10000 144 0.13 10,56,820 0.63
8 10001 to above 207 0.19 15,88,83,756 94.09
Total 1,10,124 100.00 16,88,55,818 100.00
SHAREHOLDING PATTERN AS ON MARCH 31, 2023

0.71
0.70
1.09
1.85
6.75
32.52
Promoters 32.52
Quality Investment Holdings 32.09
Foreign Institutional Investors 24.29
24.29
Mutual Funds 1.85
Insurance 1.09
Bodies Corporates 0.70
Alternate Investment Fund 0.71
Public & Others 6.75
32.09

Top 10 shareholders of the Company as on March 31, 2023
Sl. Number of equity Percentage of

Particulars
No. shares held holding
1 Punjab National Bank 5,49,14,840 32.52
2 Quality Investment Holdings PCC 5,41,92,300 32.09
3 Investment Opportunities V Pte. Limited 1,66,87,956 9.88
4 General Atlantic Singapore Fund FII Pte Ltd 1,65,93,240 9.83
5 Tata Mutual Fund- Tata Equity P/E Fund 16,00,000 0.95
6 Pioneer Investment Fund 10,80,000 0.64
7 United India Insurance Company Limited 8,97,502 0.53
8 Vanguard Emerging Markets Stock Index Fund, A Series of Vanguard International Equity 8,05,946 0.48
Index Funds
9 Vanguard Total International Stock Index Fund 7,94,055 0.47
10 Morgan Stanley Asia (Singapore) Pte. - ODI 7,42,859 0.44
DEMATERIALIZATION OF SHARES AND LIQUIDITY

Equity Shares of the Company are traded under compulsory dematerialized mode and are available for trading with both the
depositories i.e. NSDL and CDSL.
The Company obtains annual certificate of compliance with the share transfer formalities as required under Regulation 40(9) of
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 from a Company Secretary in practice and files the
copy of the certificate with the Stock Exchanges.
OUTSTANDING CONVERTIBLE INVESTMENTS

The Company does not have any outstanding convertible instruments as on March 31, 2023.
COMMODITY PRICE RISK OR FOREIGN EXCHANGE RISK AND HEDGING ACTIVITIES

During Financial Year 2022-23, the Company has managed the foreign exchange risk by hedging the entire principal on its
foreign currency borrowings. The foreign currency and interest rate risk on the borrowings have been actively hedged through
a combination of forward contracts, principal only swaps, interest rate swaps and / or cross currency swaps.
SUSPENSION OF SECURITIES
The securities of the Company were never suspended from trading since its listing.
PLANT LOCATIONS
PNB Housing Finance Limited is engaged in providing housing loans. There is no plant location as such.
ADDRESS FOR CORRESPONDENCE

Registered and Head Office:
New Delhi 110001
Phone Number : 1800 120 8800 (011-23555206)
Email Address: loans@pnbhousing.com, investor.services@pnbhosuing.com

CREDIT RATING
Ratings assigned by Credit Rating Agencies and migration of rating during the year:
Latest Ratings Assigned

Instrument Rating Agency Migration during the year Rating as on April 01, 2022
(As on March 31, 2023)
Fixed Deposit CRISIL Limited AA (Outlook-Stable)* Outlook revised from Negative FAA+ (Outlook-Negative)
to Stable
CARE Ratings Limited AA (Outlook- Stable) No change AA (Outlook- Stable)
Non-Convertible CRISIL Limited AA (Outlook-Stable)* Outlook revised from Negative AA (Outlook- Negative)
Debentures to Stable
ICRA Limited AA (Outlook- Stable)^ Outlook revised from Negative AA (Outlook- Negative)
to Stable
India Ratings Limited AA (Outlook- Stable)# Outlook revised from Negative AA (Outlook- Negative)
to Stable
Commercial CRISIL Limited A1+ No change A1+
Papers CARE Ratings Limited A1+ No change A1+
Bank Loans CRISIL Limited AA (Outlook-Stable)* Outlook revised from Negative AA (Outlook- Negative)
to Stable
ÎCRA revised the outlook of rating to stable from negative vide press release dated April 12, 2022.
*CRISIL revised the outlook of rating to stable from negative vide press release dated October 21, 2022.
#India Ratings Limited revised the outlook of rating to stable from negative vide press release dated February 27, 2023.

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]
The Members
9th Floor, Antriksh Bhawan,
22 K G Marg, New Delhi-110001
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of PNB Housing
Finance Limited having CIN L65922DL1988PLC033856 and having registered office at Office no. 9th Floor, Antriksh Bhawan, 22
KG Marg, New Delhi- 110001 (hereinafter referred to as ‘the Company’), produced before us by the Company 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 our opinion and to the best of our 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 us by the Company & its
officers, we hereby certify that none of the Directors on the Board of the Company, as stated below, have been debarred or
disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India
(SEBI), Ministry of Corporate Affairs, or any such other Statutory Authority, for the Financial Year ended on March 31, 2023.
Sl. Date of Date of cessation,

Name of Directors Category DIN
No. appointment if any
1. Mr. Sunil Kaul Non-Executive - Nominee Director 05102910 05.03.2015 -
2. Mr. Chandrasekaran Ramakrishnan Non-Executive - Independent Director 00580842 07.10.2015 -
3. Mr. Nilesh Shivji Vikamsey Non-Executive - Independent Director 00031213 22.04.2016 -
4. Mr. Ashwani Kumar Gupta Non-Executive - Independent Director 00108678 12.05.2017 11.05.2022
5. Mr. Tejendra Mohan Bhasin Non-Executive - Independent Director 03091429 02.04.2020 -
6. Mr. Neeraj Madan Vyas Non-Executive - Non Independent Director 07053788 01.09.2020 -
7. Mr. Sudarshan Sen Non-Executive- Independent Director 03570051 01.10.2020 -
8. Mr. Kapil Modi Non-Executive - Nominee Director 07055408 01.10.2020 -
9. Ms. Gita Nayyar Non-Executive - Independent Director 07128438 29.05.2021 -
10. Mr. Hardayal Prasad Managing Director and CEO 08024303 10.08.2020 20.10.2022
11. Mr. Binod Kumar Non-Executive - Nominee Director 07361689 12.01.2022 21.10.2022
12. Mr. Dilip Kumar Jain Non-Executive - Nominee Director 06822012 04.11.2022 -
13. Mr. Atul Kumar Goel Non-Executive - Nominee Director 07266897 28.04.2022 -
14. Mr. Kousgi Sreenivasa Murthy Girish Managing Director and CEO 08524205 21.10.2022 -
15. Mr. Pavan Pal Kaushal Non-Executive - Independent Director 07117387 27.10.2022 -
- Mr. Binod Kumar (07361689) was appointed as Additional Director on 12th January, 2022 and on 08th April, 2022 was appointed as Nominee
Director through Postal Ballot. Furthermore, he is ceased to be Director w.e.f. 21st October, 2022.
- Mr. Atul Kumar Goel (DIN: 07266897) was appointed as Additional Director w.e.f. 28th April, 2022 and on 26th July, 2022, was appointed as a
Nominee Director through the resolution passed at AGM.
- Mr. Kousgi Sreenivasa Murthy Girish (DIN: 08524205) was appointed as Managing Director and Chief Executive Officer w.e.f. 21st October, 2022
and on 22nd December, 2022, was appointed as Managing Director and Chief Executive Officer through Postal Ballot.
- Mr. Pavan Pal Kaushal (DIN: 07117387) was appointed as Additional Director w.e.f. 27th October, 2022 and on 22nd December, 2022, was appointed
as Independent Director through Postal Ballot.
- Mr. Dilip Kumar Jain (DIN: 06822012) was appointed as Nominee Director w.e.f. 04th November, 2022 and on 22nd December, 2022, was appointed
as Nominee Director through Postal Ballot.
Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the management of the
Company. 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 Company nor of the efficiency or effectiveness with which management has conducted the affairs of the Company.
For VLA & Associates

Practicing Company Secretaries
Sd/-
Vishal Lochan Aggarwal
(Proprietor)
Membership No.: F7241
Date: 06.06.2023 C. P. No.: 7622
Place: New Delhi UDIN: F007241E000459902

FORM AOC- 2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
FORM FOR DISCLOSURE OF PARTICULARS OF CONTRACTS/ARRANGEMENTS ENTERED INTO BY THE

COMPANY WITH RELATED PARTIES REFERRED TO IN SUB SECTION (1) OF SECTION 188 OF THE COMPANIES
ACT, 2013 INCLUDING CERTAIN ARM’S LENGTH TRANSACTION UNDER THIRD PROVISO IS GIVEN BELOW:
1. Details of contracts or arrangements not at Arm’s length basis : NIL
2. Details of material contracts or arrangements or transactions at Arm’s length basis are as under*:
Name of the Party Salient terms of the

Date of approval at
S. with which the Duration of contracts or arrangements Amount paid as
Nature of Contract/ Transaction the meeting of the
No. contract is entered Contract or transaction including advances, if any,
Board
into the value, if any
1. Punjab National (i) Banking Transactions/ loan April 01, All the transactions The Company has Nil
Bank transactions/ credit facility/ 2022 to were in the ordinary taken omnibus
(Promoter) term deposit/investment March 31, course of business and approval of the
in securities issued by the 2023 at arms’ length and Audit Committee on
Company were duly approved by March 26, 2022.
(ii) Assignment/ securitisation/ the Audit Committee of
sale of loan assets Board and Members of
the Company.
(iii) Acceptance/Placing of Fixed
Deposits The transactions with
Punjab National Bank
(iv) Any other related transactions are banking transactions
for the relevant period on an with a large public
ongoing basis. sector bank.
(The value of transactions is
disclosed in notes to accounts)
2. PNB Gilts Limited (i) Sale/purchase of securities - do- All the transactions are The Company has Nil
(Subsidiary of (ii) Maintenance of SGL Account in ordinary course of taken omnibus
Promoter) business and at arms’ approval of the
(iii) Any other related transactions length and were duly Audit Committee on
for the relevant period on an approved by the Audit March 26, 2022.
ongoing basis. Committee of Board
(The value of transactions are and Members of the
disclosed in notes to accounts) Company.
The transactions with
PNB Gilts Limited
(Subsidiary of PNB)
are in the nature of
sale and purchase of
securities and payment
of brokerage and fees.
*All related party transactions are benchmarked for arm’s length, approved by Audit Committee and reviewed by Statutory Auditors. The above
disclosures on material transactions are based on threshold of 10 percent of consolidated turnover for the purpose of Section 188(1) of the Act.
For and on behalf of the Board
Date: June 22, 2023 Girish Kousgi Atul Kumar Goel

Place: New Delhi Managing Director & CEO Non-Executive Director

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR)
PNB Housing Finance Limited is at the convergence of organic The company understands that the value of realization lies
growth which is responsible and sustainable at same time. The in meeting stakeholder expectations and earning their trust.
basic philosophy and vision to empower the common people Being a responsible corporate, it is the company’s moral duty to
of India to own their dream of a house is what the Company communicate the performance to all stakeholders in most fair
believes is the fundamental reason of growth, amalgamated with and transparent manner, which is also one of the purposes of
the non-tiring efforts of the team and valued stakeholders. The the Business Responsibility and Sustainability Report (BRSR)
Company’s success story stands as a testament to the resilience mandated by SEBI. This is the first edition of our Business
and truly embodies its commitment to provide faster and better Responsibility and Sustainability Report (BRSR) that has made
services to customers. As a result, PNB Housing Finance Limited its way into regulatory provisions through an amendment to
has become synonymous with timeliness, customer delight, and Regulation 34(2)(f) of the Listing Regulations, in which the
unparalleled customer experience, setting a benchmark for the company is reporting on its diverse non-financial performance
industry in the nation. which includes the Environment, Social, and Governance
parameters, as well as their impact, in accordance with BRSR
Sustainability for the Company is not just a strategy but a
guidelines. This report not only fulfills regulatory requirements
responsibility that it holds towards its entire value chain and
but also goes beyond exploring the environmental, social, and
planet at large. With over three decades of presence in housing
governance (ESG) dimensions of business activities and helps
finance, the Company has a robust network of branches spread
both company and stakeholders to make conscious decisions.
across the country which helps the customers avail financial
services (loans and deposits) seamlessly. The tenets of the PNB Housing Finance Limited acknowledges the obligation
company are drivers of its fundamental approach to embrace the to include environmental, social, and governance (ESG)
technology and digital transformation in its operations adopted considerations into the business activities and strive for
parallelly with the strategic growth planning and implementation profitable growth while maintaining a strong focus on exceptional
to secure larger customer base, focusing on retail segment. The governance and responsiveness to the requirements of the
priority of the company is to employ cutting edge technology environment and society. The focus lies on building a strong
that enables a leap to its vision of sustainable growth while relationship with customers, who are at the center of business,
bringing the utmost satisfaction to its customers. The working existence and growth.
principles of the company are focused directly or indirectly to
From the leaders to a new entrant, everyone is encouraged to
address aspects like climate change, conserving resources,
embrace the steppingstones – Values, Culture, and Commitments
strengthening governance and fulfilling social responsibility
to lead the teams and extended networks to a brighter future.
through CSR initiatives.
CONTENTS
SECTION A GENERAL DISCLOSURES
SECTION B MANAGEMENT AND PROCESS DISCLOSURES
SECTION C PRINCIPLE-WISE PERFORMANCE DISCLOSURE
Ethics, Transparency and Accountability
PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is ethical, transparent,
and accountable
Product Life Cycle Sustainability
PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe
Employees Well- Being
PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those in their value chains
Stakeholders Engagement
PRINCIPLE 4 Businesses should respect the interests of and be responsive to all its stakeholders
Human Rights
PRINCIPLE 5 Businesses should respect and promote human rights
Environment Stewardship
PRINCIPLE 6 Businesses should respect and make efforts to protect and restore the environment
Policy Advocacy
PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible
and transparent
Inclusive Growth
PRINCIPLE 8 Businesses should promote inclusive growth and equitable development.
Customer Value
PRINCIPLE 9 Businesses should engage with and provide value to their customers in a responsible manner.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR)
SECTION A: GENERAL DISCLOSURES
1. Details of the listed entity
Corporate Identity Number (CIN) of the Listed Entity L65922DL1988PLC033856

Name of the Listed Entity PNB Housing Finance Limited
Year of incorporation 1988
Registered office address 9th Floor, Antriksh Bhawan, 22, K G, Marg, New Delhi-110001
Corporate address 9th Floor, Antriksh Bhawan, 22, K G, Marg, New Delhi-110001
E-mail investor.services@pnbhousing.com
Telephone 011-23445200
Website www.pnbhousing.com
Financial year for which reporting is being done FY 2022-23 (April 1, 2022, to March 31, 2023)
Name of the Stock Exchange(s) where shares are listed National Stock Exchange of India Limited (NSE) and BSE Limited (BSE)
Paid-up Capital H168.86 crore
Name and contact details (telephone, email address) of the person who Mr. Sanjay Jain
may be contacted in case of any queries on the BRSR report
Company Secretary and Chief Compliance Officer
Email Id: sanjay.jain@pnbhousing.com
Telephone Number: 011-23445200
REPORTING BOUNDARY The disclosures made are on the standalone basis for PNB Housing
Are the disclosures under this report made on a standalone basis (i.e., Finance Limited only consisting of all the locations including the
only for the entity) or on a consolidated basis (i.e., for the entity and all corporate office.
the entities which form a part of its consolidated financial statements, *Environment data is included only for 20 locations wherein the office
taken together). premises has an area of more than 3000 square feet.
2. Products/services
Details of business activities (accounting for 90% of the turnover):
% of turnover of
S.
Description of main activity Description of business activity the entity
no.
(FY22-23)
1. Financial and Insurance Service Other financial activities 100%
3. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
We are engaged in financing purchase and construction of residential houses, loan against property and loan for other
related purposes. All other activities revolve around the main business. Our housing loan services aim to empower
individuals and corporate bodies to fulfill their dreams of owning a home or commercial property. We understand that
owning a property is a significant milestone in one’s life, and we strive to make this process as smooth and hassle-
free as possible. We believe in providing flexible and customized loan options that suit the unique requirements of our
customers, along with competitive interest rates and easy repayment options. Our team of experienced professionals
is always ready to assist our customers at every step of the way, from application to disbursement of the loan. With our
housing loan services, we hope to make the dream of owning a property a reality for everyone, irrespective of their
financial background.
S. % of total turnover
Product/Service NIC Code
No. contributed
1. Our main business is financing by way of loan for purchase/ construction/ repair or 64192 100%
upgradation of residential houses, commercial real estate and certain other purposes. All the
other activities of the Company revolve around the main business.
As of 31st March 2023, in terms of loan composition on loan asset basis, individual housing
loans contributes 66.5%, loan against property forms 22.6%, non-residential premises loan
and loan to corporates contributes 4.5% and 6.4% to respectively.

4. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of plants Number of offices Total

National Not Applicable* 212^ 212^
International Nil Nil
*The Company is a Non-Banking Financial Company - Housing Finance Company (NBFC-HFC) and hence does not undertake any manufacturing
activity.
^212 offices, which includes: 162 branches, 27 Outreach offices, 22 Hubs and 1 Corporate office as on March 31, 2023.
5. Markets served by the entity:

We believe in staying closer to our customers and meeting their needs so that we can build a strong long-lasting
relationship with our valuable customers. We have focused on building our strategic physical presence across the country
to address their growing needs. Our 189 branches /outreaches are present across 138 unique cities and towns across the
country, fulfilling the requirements of our lakhs of customers.
a. Number of locations
Locations Number
National (No. of States) 20
International (No. of Countries) Nil. We do not have offices/business in international locations.
b. What is the contribution of exports as a percentage of the total turnover of the entity?
Not applicable.
c. A brief on types of customers

Our Company serves customers of all income levels because we believe in maintaining a strong relationship with our
customers. We are making significant efforts to concentrate on loans to the affordable market, where there is a high
demand for housing loans. Being a responsible company, our focus has also been towards supporting the diverse range of
customers to be benefitted under the Government initiatives such as “Housing for All” through PMAY-CLSS scheme and
over the years we have been making disbursement help through significant amount of loan accounts in the category of
EWS/LIG and MIG I/MIG II.
Individual Housing Loan disbursed in

FY 2022-23
Category Household Income/ annum
% in Number
% in ValueTerms
Terms
Economically Weaker Section Up to H3 lakh 6.81% 2.71%
Low Income Group Above H3 lakh up to H6 lakh 32.17% 20.18%
Middle Income Group Above H6 lakh up to H18 lakh 47.49% 46.81%
High Income Group Above H18 lakh 13.53% 30.30%
Total 100% 100%
Total 36,081 J10,990 crore
Based on individual loans disbursed during the year, the key characteristics of individual loans were:
− 71% were salaried customers, while 29% were self-employed (including professionals).
− The average size of individual loans stood at H29 lakh.
− The average loan to value ratio at origination was 71%.
− The average age of the customer was 40 years.

Depositors:
PNB Housing Finance also has a large number of depositors, which predominantly comprise of retail depositors. As at
March 31, 2023, total outstanding deposits stood at H17,248 crore and the number of deposit accounts approximately stood
at 2.3 lakh.
6. Employees
Details as at the end of Financial Year:
a. Employees and workers (including differently abled)
S. Male Female
Particulars Total (A)
No. No. (B) % (B / A) No. (C) % (C / A)
EMPLOYEES
1. Permanent (D) 1,690 1,432 84.73% 258 15.27%
2. Other than Permanent (E) Nil Nil Nil Nil Nil
3. Total 1,690 1,432 84.70% 258 15.29%
WORKERS
4. Permanent (F) Nil Nil Nil Nil Nil
5. Other than Permanent (G)* 469 433 92.32% 36 7.68%
6. Total workers (F+G) 469 433 92.32% 36 7.68%
*Security, housekeeping & facility management staff on third party contract
b. Differently abled Employees and workers
S. Male Female
No. No. (B) % (B / A) No. (C) % (C / A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 1 1 100% 0 0%
2. Other than Permanent (E) Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
3. Total differently abled 1 1 100% 0 0%
employees (D+E)
DIFFERENTLY ABLED WORKERS
4. Permanent (F) Not Applicable
5. Other than Permanent (G) Nil Nil
6. Total differently abled
Nil Nil
workers (F+G)
7. Participation/Inclusion/Representation of women
No. and percentage of females

No (A) %(B/A)
Board of Directors 12 1 8.33%
Key Management Personnel 3 0 0%
8. Turnover rate for permanent employees and workers
FY 2022-23 FY 2021-22 FY 2020-21

Particulars
Male Female Total Male Female Total Male Female Total
Permanent Employees* 24.30% 26.60% 24.70% 30.96% 34.76% 31.58% 17.82% 21.54% 18.48%
Permanent Workers Nil Nil Nil Nil Nil Nil Nil Nil Nil
*voluntary turnover

9. Holding, Subsidiary and Associate Companies (including joint ventures)
(a) Names of holding / subsidiary / associate companies / joint ventures
Name of the holding

Indicate whether
/ subsidiary /
S. holding/ Subsidiary/ % of shares held by Does the entity indicated in column A participate in the Business Responsibility
associate
No. Associate/ Joint listed Entity initiatives of the listed entity? (Yes/No)
companies / joint
Venture
ventures (A)
1. PHFL Home Loans Subsidiary 100% PHFL Home Loans and Services Limited works inline with the ethos of
and Services PNBHFL Business Responsibility initiatives
Limited
2. Pehel Foundation Subsidiary 100% PEHEL Foundation is a non-profit subsidiary of the Company to carry out
various CSR activities of PNB Housing Finance Limited and PHFL Home
Loans and Services Limited.
10. CSR Details:
(i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No)
Yes. CSR is applicable as per section 135 of Companies Act,2013.
(ii) Turnover (in J) - H6,492.39 crore.
(iii) Net worth (in J) – H10,952.57 crore.
11. Transparency and Disclosures Compliances

Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct:
FY 2022-23 FY 2021-22
Grievance Redressal Current Financial Year Previous Financial Year
Mechanism in Place (Yes/No) Number of
Stakeholder group from whom Number of
(If yes, then provide web-link Number of complaints Number of
complaint is received complaints pending
for grievance redress complaints filed pending complaints filed
policy) resolution at close
during the year resolution at close during the year
of the year
of the year
Communities Yes Nil Nil Nil Nil
Investors Yes Nil Nil Nil Nil
(Other than shareholders)
Shareholders Yes Nil Nil Nil Nil
Employees and Workers Yes Nil Nil Nil Nil
Customers Yes 1,794 10 2,270 10
Value Chain Partners Yes Nil Nil Nil Nil
Others (Please specify) - - - - -
*We have considered direct selling agents (DSA) as value chain partners. We shall progressively start reporting on other value chain partners
in coming years.
Our family includes customers, depositors, shareholders, debenture holders, and channel partners. We have a strong
grievance mechanism and a well-established procedure in place for recording and addressing complaints from each
of these groups. Our website also includes a grievance redressal mechanism advised by the National Housing Bank
(NHB), which also includes an escalation chart for investor concerns. Quarterly reporting to the senior management
and the audit committee of the board is being done regarding the status of requests/complaints received, redressed, and
outstanding from its customers and stakeholders, as well as the nature of the complaints and their mode of redressal.
We have an active investor outreach program, and the investor relations team maintains regular touch with market players
globally. All information, including quarterly results, half-yearly results, and annual results, are communicated to stock
exchanges, and posted on the website. Market participants and shareholders are also notified with the information. There
is a robust system to address shareholders’ grievances, wherein they can send their complaints to us through dedicated
email IDs: investor.services@pnbhousing.com and investor.relations@pnbhousing.com.
All customer requests and complaints are registered in the CRM system. Throughout the year, we received service
requests and escalations from loan and deposit customers out of which most of them were addressed within the
stipulated timeframe. Our head of customer service reviews day-to-day customer support requests and escalations.
Complaints forwarded by regulatory and supervisory bodies are recorded electronically and tracked separately.
We have a portal “V connect “wherein our Direct Selling Agents (DSA) can log in and raise their concerns which are
addressed within a stipulated time frame.

12. Overview of the entity’s material responsible business conduct issues
Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social

matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
mitigate the risk along-with its financial implications, as per the following format.
Financial implications of
S. Indicate whether risk or Rationale for identifying In case of risk, approach to the risk or opportunity
Material issue identified
No. opportunity (R/O) the risk / opportunity adapt or mitigate (Indicate positive or negative
implications)
We have initiated the process for identification and analyzing our key material aspects for the company and the same will be disclosed in
our upcoming report post approval by the Board.
SECTION B: MANAGEMENT AND PROCESS DISCLOSURE
Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
POLICY AND MANAGEMENT PROCESSES
1. a. Whether your Yes Yes Yes Yes Yes Yes No Yes Yes
entity’s policy/
policies cover each
principle and its
core elements of
the NGRBCs. (Yes/
No)
b. Has the policy been Yes Yes Yes Yes Yes Yes No Yes Yes
approved by the
Board? (Yes/No)
c. Web Link of Anti This policy is Whistle Code of Nomination & This policy is Not CSR Grievance
the Policies, if Bribery included in Blower Practices & Remuneration included in available. Policy Redressal
available** & Anti- our internal / SHAW Procedures Policy our internal Mechanism
Corruption policies Policy for policies KYC Policy
Policy which are Disclosure which are
accessible of UPSI accessible Privacy
Fair Policy
Practice to internal to internal
Code stakeholders. stakeholders.
Whistle-
Blower
Policy
Code of
Conduct
2. Whether the entity has Yes Yes Yes Yes Yes Yes No Yes Yes
translated the policy We have developed the policies as per the best industry practices and have translated the policies as applicable
into procedures. (Yes / into the procedures in conducting the business activities. The Board has seven Committees such as Audit
No) Committee, Risk Management Committee, Credit Committee of the Board, Nomination and Remuneration
Committee, Stakeholders Relationship Committee, Corporate Social Responsibility Committee, and IT Strategy
Committee to oversee the functioning of various policies.
3. Do the enlisted policies Yes Yes Yes Yes Yes Yes No Yes Yes
extend to your value
chain partners? (Yes/
No)
4. Name of the national and international codes/certifications/labels/ standards (e.g., Forest Stewardship Council, Fairtrade, Rainforest
Alliance, Trustea) standards (e.g., SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle.
Principle 1 Not available

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Principle 9 We are an ISO 9001:2015 (Quality Management System) certified organization and ISO 27001 (Information
security management system) certified.
5. Specific commitments, Being a responsible corporate and consistently working towards delivering our services in most sustainable
goals and targets set by manner, we strive towards achieving various targets such as environmental protection, reducing our carbon
the entity with defined footprint, women empowerment and livelihood generation, housing for all, a gender-inclusive environment,
timelines, if any. nurturing employees, responsible governance, access to health and safety and consumer protection. We are under
the process of developing various commitments and defining strategic goals and targets.
6. Performance of the This is the first time we have published our BRSR report. We are in the process of identifying & setting up targets
entity against specific and will report our performance against them in subsequent BRSR reports.
commitments, goals,
and targets along with
reasons in case the
same are not met.
GOVERNANCE, LEADERSHIP, AND OVERSIGHT
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements
(listed entity has flexibility regarding the placement of this disclosure)
We are presenting our first ever BRSR this financial year with an aspiration to communicate our ESG performance to all our stakeholders in
a better and more transparent manner, in compliance with the guidelines and format provided by SEBI. We at PNB Housing Finance Limited
assist millions of Indians accomplish their dream of owning a house through our initiatives such as HOUSING FOR ALL. As a responsible
corporate citizen, we have taken multiple initiatives towards a green & sustainable environment and environment protection has been a key
part of our long-term CSR initiatives. For more details, please refer to the message from the Managing Director and CEO on page number 10
of this report.
8. Details of the highest Mr. Sanjay Jain
authority responsible Company Secretary and Chief Compliance Officer
for implementation Email Id: sanjay.jain@pnbhousing.com
and oversight of the Telephone Number: 011-23445200
Business Responsibility
policy/policies
9. Does the entity have The Board of Directors of PNB Housing Finance Limited is responsible for determining the strategic direction of
a specified Committee the Company and safeguarding the interest of all our stakeholders. ESG is viewed as one of the strategic priorities
of the Board/ Director of the BODs. Our sustainability strategy involves proactively identifying ESG-related risks and opportunities,
responsible for setting goals/targets, and finally implementing policy-driven procedures to turn our commitments into actions.
decision making on For us, the responsibility to conduct business sustainably lies with each one of us. This is further looked upon
sustainability related by the Board through its various functional committees, who meet on regular intervals to review the process,
issues? (Yes / No). If systems and implementation required for responsible decision making. Additionally, such committees look after
yes, provide details. different aspects, policies, and procedures covered under the larger umbrella of sustainability.
10. Details of Review of NGRBCs by the Company:
Indicate whether review was undertaken by Director / Frequency

Subject for Review Committee of the Board/ Any other Committee (Annually/ Half yearly/ Quarterly/ Any other – please specify)
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance Responsibility and accountability to the various aspects of sustainability performance lies with the entire team of PNB
against above Housing Finance Limited. The Company has embarked on the sustainability journey and in the process of formulating
policies and follow the ESG policy which encompasses all the principle of BRSR. Further, the board will monitor initiatives through
up action its several functional committees, who will meet on a regular basis to review the procedures, frameworks, and
implementation for various ESG related business systems and processes in line with the principles of BRSR.
Compliance As a socially responsible company, we wholeheartedly embrace a steadfast commitment to adhering to all applicable
with statutory laws and standards. At the core of our operations, we prioritize zero non-compliances and continuously strive to meet
requirements and exceed industry best practices. Our unwavering dedication to compliance is reinforced by the zero-tolerance
of relevance to policy, ensuring no deviations from legal and regulatory requirements. We diligently abide by all statutory laws and
the principles, compliance obligations that pertain to our organization, safeguarding our principles at every step.
and rectification
of any non-
compliances

11 as the entity
H P1 P2 P3 P4 P5 P6 P7 P8 P9
carried out
independent The processes and compliances are subject to scrutiny by internal/statutory auditors and regulatory compliances, as
assessment/ applicable on a regular basis. In the light of good corporate governance practices, policies are reviewed annually/
evaluation of the periodically and approved by the senior management and/or the Board.
working of its We are an ISO 9001: 2015 & ISO 27001 certified company and our processes conform to the ISO standards. Since the
policies by an
external agency?
control audit of the processes are carried on an annual basis by an external agency, external review of the policies
(Yes/No). If yes, may not be required.
provide the name of
the agency.
12. If answer to question (1) above is “No” i.e., not all Principles are covered by a policy, reasons to be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The entity does not NA* NA* NA* NA* NA* NA* No^ NA* NA*
consider the principles
material to its business
(Yes/No)
The entity is not at a NA* NA* NA* NA* NA* NA* No^ NA* NA*
stage where it is in a
position to formulate and
implement the policies
on specified principles
(Yes/No)
The entity does not have NA* NA* NA* NA* NA* NA* No^ NA* NA*
the financial or/human
and technical resources
available for the task
(Yes/No)
It is planned to be done NA* NA* NA* NA* NA* NA* Yes^ NA* NA*
in the next financial year
(Yes/No)
Any other reason (please NA* NA* NA* NA* NA* NA* No^ NA* NA*
specify)
NA* -Not Applicable
No^/Yes ^- We have initiated the process for identification and analyzing our key material aspects for the company and the same will be
disclosed in our upcoming report post approval by the Board.
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
Principle 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable.
Being a customer-centric business, we have ingrained the fundamentals of responsible business beyond our obligation to
conduct and govern ourselves with utmost fairness and integrity and confirming to compliance. We have in place the code
of conduct which provides guidance on matters related to professional conduct, ethics, and governance, for the directors of
the board. Also, we have an additional code of conduct envisaging all fundamental principles of business ethics for executive
directors and senior management. In our commitment to nurture a culture of ethical behavior, the board has approved and
adopted different policies and frameworks that encourage appropriate business conduct. Further, these policies are available
publicly and communicated regularly to the management, employees, and other stakeholders. We understand that it is equally
vital that we administer and conduct training and awareness programs for all our stakeholders including board members,
employees, workers, and value chain partners who are an important part of our larger work of PNB Housing Finance Limited
stakeholder group and help foster an ethical environment within our value chain.
Essential Indicators
1. Percentage coverage by training and awareness programs on any of the principles during the financial year:
Our people are our most crucial asset. Adhering to our agenda of upskilling our employees, we periodically conduct
training and awareness programs on diverse aspects such as code of conduct, anti-bribery& anti-corruption, information
security and women’s empowerment, etc., which articulates standards for ethical corporate conduct and appropriate
employee behavior. As part of our continuous practice, we provide induction training to all new employees so that they
can grasp our organizations’ values and get aligned with them. These training courses also include topics related to
ethics, HR policies and values. Promoting the aspects of Digital Learning, employees are provided with access to the
LinkedIn learning platform so that they can acquire new skills.

(J in crore)
%age of persons in
Total number
respective category
of training and Topics / principles
Segment covered by the
awareness covered under the training and its impact
awareness
programs held
Programs
Board of Directors 10 The BoD spent 34 hours of training on various topics 100%
that included Information Technology, Cyber security,
Business Plan, Financial updates, Risk Management,
Internal Controls, Regulatory Updates, Peer group
analysis, Business transformation, Talk on Tech Trends
etc.
Induction programs were also conducted for them
covering deep insights about the Company and aspects
comprise Business– Affordable, Underwriting and
Collection, Finance and Treasury, Human Resource,
CSR, Deposits & Cross Sell etc.
Key Managerial Personnel 6 Anti-Bribery & Anti-Corruption Policy 100%
Employees other than BoD and KMPs 6 Anti Money Laundering & KYC 100%
Code of Conduct Policy
Information Security Awareness
Prevention of Sexual Harassment
Whistle Blower Policy
Workers Awareness programs on health, safety, working conduct, etc. are done on periodic basis;
however, we are in the process of developing the mechanism to capture the data. We shall
progressively report in the coming years.
2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the
entity or by directors / KMPs) with regulators/ law enforcement agencies/judicial institutions, in the financial year, in
the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of
SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):
Monetary
Name of the
regulatory/ Has an
NGRBC Enforcement appeal
Amount (In J) Brief of the Case
Principle agencies/ been preferred? (Yes/
judicial No)
institutions
Penalty/ Fine Principle 1 SEBI 8,49,600 During the financial year ended March 31, No
2023, Regulators have imposed a penalty
for delay in appointment of independent
directors on Board pursuant to Regulation
17 (1) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015
Settlement Principle 1 SEBI 72,76,533 SEBI had made certain observations with No
respect to the preferential issue approved
by the Board on May 31, 2021, and called
upon the Company and its directors to
provide their explanations. The Company
and its directors had responded to SEBI
with respect to these communications.
Subsequently, on suo motto basis, the
Company filed a settlement application
with SEBI on January 17, 2022, seeking
settlement of any proceedings initiated or
which may be initiated against the Company
and/ or its directors in this connection,
without admitting or denying the findings of
fact or conclusions of law. Settlement Order
dated July 18, 2022, has been passed by
SEBI in the regard.
Compounding fee NA NA NA NA NA

Non-Monetary
Name of the
regulatory/
NGRBC enforcement
Brief of the Case Has an appeal been preferred? (Yes/No)
Principle agencies/
judicial
institutions
Imprisonment NA NA NA NA
Punishment NA NA NA NA
NA- Not Applicable.
3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or
non-monetary action has been appealed.
Case Details Name of the regulatory/ enforcement agencies/ judicial institutions

Not Applicable.
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a
web-link to the policy.
Yes. The Company has an anti-bribery and anti-corruption policy, which is applicable to all the stakeholders or the
person associated with the Company and who may be acting on behalf of PNB Housing Finance and set out conduct that
must be adhered to at all times. This Policy has been tailored in accordance with Company’s code of conduct and other
related policies, as well as anti-bribery and anti-corruption statutes and regulations in India. The policy lays down a clear
philosophy which enforces and reiterates our moral business commitment of zero tolerance for any form of bribery or
corruption. The policy facilitates ethical decision making and reinforces culture of transparency in all the dealings.
The policy is publicly available at the website of our company and link for the same is given below:

https://www.pnbhousing.com/wp-content/uploads/2022/09/Policy-on-Anti-Bribery-and-Anti-Corruption-01-11-2021-website.pdf
5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement
agency for the charges of bribery/ corruption.
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Directors Nil Nil

KMPs Nil Nil
Employees Nil Nil
Workers Nil Nil
6. Details of complaints with regard to conflict of interest:
FY 2022-23 FY 2021-22
Number Remarks Number Remarks
Number of complaints received in relation to issues of Nil - Nil -
Conflict of Interest of the Directors
Number of complaints received in relation to issues of Nil - Nil -
Conflict of Interest of the KMPs
7. Provide details of any corrective action taken or underway on issues related to fines / penalties /action taken by
regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.
No correction action were taken or underway on issues related to fines / penalties /action taken by regulators/ law
enforcement agencies/ judicial institutions, as there were no cases of corruption and conflicts of interest.

Leadership Indicators
1. Awareness programs conducted for value chain partners on any of the principles during the financial year:
Stakeholders in our value chain are the key partners of our growth. We believe in a philosophy to take along society and
all those who are associated with us in this journey where we embrace the working principles of a responsible business.
Over the entire reporting year, we engaged with a multiple value chain partners, through various engagement programs
and have made them aware of multiple aspects that are directly or indirectly associated to our business at large.
%age of value chain partners covered (by value

Total number of awareness programs held Topics / principles covered under the training of business done with such partners) under the
awareness programmes
We conduct various training and awareness Product and policy knowledge 100% of our Direct Marketing Agents are
programs for our value chain partners . covered
However, we will be progressively tracking
the numbers in the coming years.
2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/
No) If yes, provide details of the same.
Yes, Our Company’s code of conduct covers the issues related to conflict of interest on the Board of Directors and
specifies that all members of the board should attempt to avoid circumstances where they have a conflict of interest. All
members concerned in a conflict scenario must withdraw from any conversations or decisions on the subject. We have
developed appropriate processes and mechanisms to avoid or manage disputes among members.
Principle 2: Businesses should provide goods and services in a manner that is sustainable and safe
This principle emphasizes the need of providing services in a sustainable way by including components of social, ethical, and
environmental indicators into the process. We create value for our stakeholders by providing services that are aligned with
sustainability principles. We believe in driving action towards the sustainable development through a variety of initiatives
such as the adoption of cloud based network promotion of virtualization, the optimization of data center energy, paperless
processing, the replacement of physical customer correspondence with e-communication etc.
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental
and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.
Details of improvements in environmental

Particulars FY 2021-22
and social impacts
R&D Given the nature of business of the Company, The capex Greater adoption of digital platforms
Capex the relevance of the above is largely restricted incurred towards not only brings in increased efficiencies
to information technology (IT) CAPEX. The capex IT hardware of operations, but also ensures
incurred towards IT hardware and software, which and software, conservation of resources.
facilitated enhanced digital initiatives of the Company, which facilitated
was 0.21% of total revenue. enhanced digital
initiatives of the
Company, was
0.22% of total
revenue.
2. Does the entity have procedures in place for sustainable sourcing? (Yes/No) b. If yes, what percentage of inputs were
sourced sustainably?
We lay significant emphasis on sustainable procurement. In the pursuit of this objective, we are focused on adhering to
practices that help us to procure resource-efficient goods and services but also, help our vendors to grow along with us.
We have been at the forefront in taking initiatives that would help us make responsible procurement decisions, some of
the major aspects in this endeavor include
1. Increased focus towards digitization and automation of our sourcing process and systems and by adopting digital
tools to increase the efficiency.
2. Striving to reduce consumption of resources like electricity, paper, printing ink, plastic etc. at our office locations
3. Encouraging paperless business operations/services to conserve the environment and save resources.
4. Preferential sourcing from local suppliers to support the small-scale businesses thereby supporting government’s
agenda of Aaatma Nirbhar Bharat Abhiyaan.

3. Describe the processes in place to safely reclaim your products for reusing, recycling, and disposing at the end of life,
for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
We have suitable systems in place for sustainably treating / disposing of the waste we generate, as per the applicable
guidelines. We don’t generate any hazardous waste. Additionally, e-waste generated are disposed through government
authorized recyclers.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the
waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control
Boards? If not, provide steps taken to address the same.
Not applicable
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing
industry) or for its services (for service industry)? If yes, provide details in the following format?
Boundary for which the Results communicated

Whether conducted by
Name of Product / % of total Turnover Life Cycle Perspective in public domain (Yes/
NIC Code independent external
Service contribute /Assessment was No) If yes, provide the
agency (Yes/No)
conducted web link.
Considering the nature of the business, we have not conducted the LCAs for our services.
2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your
products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means,
briefly describe the same along-with action taken to mitigate the same.
Name of Product/ Service Description of the risk/concern Action Taken

Not Applicable
3. Percentage of recycled or reused input material to total material (by value) used in production
(For manufacturing industry) or providing services (for service industry).
Recycled or re-used input material to total material

Indicate input material FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Not applicable.
4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and
safely disposed of.
FY 2022-23 FY 2021-22
Re-Used Recycled Safely Disposed Re-Used Recycled Safely Disposed
Plastics (Including packaging)
E-waste
Not applicable
Hazardous waste
Other waste

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Indicate product category Reclaimed products and their packaging materials as % of total products sold in respective category
Not applicable.
Principle 3: Businesses should respect and promote the well-being of all employees, including those in their value
chains
Our commitment to our employees ensures a positive and engaging work environment, fostering a culture of excellence
and customer-centricity. At the heart of our core values lies “People First,” which drives our dedication to fostering equal
opportunities and inclusive growth. Employee connect to the last mile, recognition of merit, fair & equitable policies and health
& safety form the basis of various people initiatives of the Company.
1.a. Details of measures for the well-being of employees.

HR policies and various benefit programs provides framework for well-being of employees. Without focus on “People
First”, our efforts are continually focused on promoting a healthy, safe and secure work environment.
− Taking various measures during the pandemic to protect employees and providing care for those who had contracted
the virus
− Providing best-in-class practices with respect to maternity, paternity and adoption related leave and compensation
policies, besides extending the choice of examination leave and sabbaticals, among others.
− Providing access to LinkedIn learning platform for employees to take motivational seminars, yoga and meditation
sessions, and financial planning sessions.
− Providing medical support at fingertips like e-consultation with doctors, sponsored health checks & diagnostic
tests etc
− Organizing health events like doctor visits, yoga day to promote healthy lifestyle

% of employees covered by
Health Insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
Category
Total (A)
Number Number Number Number Number
% (B /A) % (C /A) % (D /A) % (E /A) % (F /A)
(B) (C) (D) (E) (F)
PERMANENT EMPLOYEES
Male 1,432 1,432 100% 1,432 100% NA NA 1,432 100% Nil Nil
Female 258 258 100% 258 100% 258 100% NA NA 55 21.31%
Total 1,690 1,690 100% 1,690 100% 258 100% 1,432 100% 55 3.25%
OTHER THAN PERMANENT EMPLOYEES
Male
Female Not Applicable
Total
b. Details of measures for the well-being of workers:

(J in crore)
% of workers covered by
Health Insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
Category
Total (A) Number Number Number Number Number
% (B /A) % (C /A) % (D /A) % (E /A) % (F /A)
(B) (C) (D) (E) (F)
PERMANENT WORKERS
Male
Female Not Applicable
Total
NON- PERMANENT WORKERS
Balance with banks in
current accounts
Bank deposit with
Not Applicable
maturity of less than 3
months (Refer Note 3.1)
Total
2. Details of retirement benefits.

(J in crore)
FY 2022-23 FY2021-22
No. of No. of
No. of workers Deducted and Deducted and
Benefits employees employees No. of workers
covered as deposited with deposited with
covered as covered as covered as a %
a % of total the authority a % of total of total workers
the authority
a % of total (Y/N/N.A.)
workers (Y/N/N.A.) employees
employees
PF 100% NA# Y 100% NA# Y
Gratuity 100% NA# Y 100% NA Y
ESI NA NA# Y NA NA# Y
Others – please Specify - - - - - -
#We ensure that the PF, ESI & Gratuity contribution as applicable, is being made by the contracting agencies
NA- Not Applicable
3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of

the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
Our efforts are aligned with the requirements of the Rights of Persons with Disabilities Act, 2016. Most of the Company
offices are located in commercial establishments, including the Corporate Office, that are equipped with ramps and
elevators for easy accessibility of differently abled persons.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide
a web-link to the policy.
Aspects of equal employment opportunity are embedded within the Human Resources Policy that directs and strengthens
our efforts to establish and maintain an inclusive, non-discriminatory, and equal opportunity workplace while emphasizing
merit as the primary criterion for employment and development. The company has incorporated equal opportunity
philosophy in all its actions and motives through its Equal Opportunity Policy in accordance with Rights of Persons with
Disabilities Act, 2016. The Company strongly believes in encouraging diversity and creating an inclusive workplace for
differently abled persons.
5. Return to work and Retention rates of permanent employees and workers that took parental leave.
(J in crore)
Permanent employees Permanent workers
Gender
Return to work rate Retention rate Return to work rate Retention rate
Male 100% 93.30% NA NA
Female 100% 100% NA NA
Total 100% 95.08% NA NA
NA – Not Applicable
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and
workers? If yes, give details of the mechanism in brief.
(If yes, then give details of the mechanism in brief)

Permanent Workers Yes. The Company has a grievance procedure in place that ensures all complaints are properly
Other than Permanent Workers documented and consistently handled in an unbiased, discrete, and transparent manner. We have
an internal complaints committee that deals with sexual harassment cases in accordance with the
Permanent Employees Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013
Other than Permanent Employees of India (POSH Act). Whistleblower Policy of the Company allows employees to report unethical
behavior to uphold the highest standards of morality and business conduct while conducting
business. The Code of Conduct sets guidelines to create an enduring and robust culture of
corporate governance.. All employees are sensitized periodically on these policies.
7. Membership of employees and worker in association(s) or Unions recognized by the listed entity:
(J in crore)
FY 2022-23 FY2021-22
No. of No. of
employees / employees /
Total
workers in Total employees workers in
Category employees /
respective / workers in respective
workers in % (B / A) % (D / C)
category, who respective category, who
respective category (C) are part of
are part of
category (A) association(s)
association(s)
or Union (B) or Union (D)
Total Permanent Employees

Male
Female
We are not associated with any association or unions during FY 2022-23 and FY2021-22.
Total Permanent Workers
Male
Female

8. Details of training given to employees and workers:
FY 2022-23 FY2021-22
On Health and safety On Health and safety
On Skill upgradation On Skill upgradation
measures measures
Deducted Deducted Deducted
No. of
Category and and and
Total (A) workers Total (D)
deposited deposited deposited
covered
with the with the with the No. (E) % (E / D) No. (F) % (F / D)
as a %
authority authority authority
of total
(Y/N/ (Y/N/ (Y/N/
workers
N.A.) N.A.) N.A.)
EMPLOYEES
Male 1,429 NA NA 1,009 70.54% 1,189 NA NA 973 81.83%
Female 258 NA NA 197 76.36% 233 NA NA 179 76.82%
Total* 1,687 NA NA 1,205 71.43% 1,422 NA NA 1,152 81.01%
WORKERS
Male
Awareness programs on health, safety and working conduct are done on periodic basis . However, we don’t
Female
capture the data currently. We will set up processes to capture the details for workers in future.
Total
NA – Not Available. Awareness programs on health & safety are done on periodic basis . However, we don’t capture the data currently. We will
set up processes to capture the details for employees in future.
* This data excludes KMP’s.
9. Details of performance and career development reviews of employees and worker:

All employees undergo an annual performance appraisal process set up by us based on which their increments, bonuses
& ESOP grants are decided. The Performance Management Policy of the Company defines the way performance
evaluation process is implemented across the Company to promote a performance driven culture.
(J in crore)
FY 2022-23 FY2021-22
Category
Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)
EMPLOYEES
Male 1,432 1,432 100% 1,192 1,192 100%
Female 258 258 100% 233 233 100%
Total 1,690 1,690 100% 1,425 1,425 100%
WORKERS
Male
Female Not Applicable.
Total
10. Health and safety management system:
a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No).
If yes, what is the coverage of such a system?
We are committed to devoting resources towards strengthening systems and processes to ensure the safety and
well-being of our employees. The Company provides a bouquet of physical and mental wellness benefits to all its
employees. Further, all our office premises are in commercial buildings that maintains compliance to all applicable
health and safety aspects. Periodic inspections and mock drills are undertaken to review the health and safety
readiness check of systems which include aspects like fire mock drills, inspection of fire extinguishers and alarms,
review of floor evacuation plans, etc.

b. What are the processes used to identify work- incidents, or potential health and safety risks. This
related hazards and assess risks on a routine and proactive reporting allows us to take swift action
non-routine basis by the entity? to address any issues and implement necessary
We proactively conduct routine inspections to safety measures to prevent future incidents. The
identify potential hazards and ensure the proper HR department plays a critical role in managing
functioning of fire extinguishers in all our offices workplace safety and ensuring compliance with
as well as elevators and provide training to our relevant laws and regulations. Further, employees
employees for the proper usage of these safety are periodically given awareness sessions on
tools so that they can take prompt action in case of fire and workplace safety on ways to identify and
an emergency. This proactive approach to safety report potential hazards.
not only helps us to prevent accidents and mitigate
risk but also fosters the culture of safety and d. Do the employees/ workers of the entity
preparedness amongst our employees. have access to non-occupational medical and
healthcare services? (Yes/ No).
c. Whether you have processes for workers to All employees are insured through group
report the work-related hazards and to remove Mediclaim, group term life insurance, and group
themselves from such risks. personal accident policies to reduce financial
Given the nature of business of the Company, this risk in the event of any medical occurrences.
is not directly applicable to us, however, to ensure Additionally, we provide our employees with health
a safe and healthy work environment, employees and wellness benefits including routine checkups,
are encouraged to promptly notify their respective doctor visits, and diagnostic testing.
HR representatives of any workplace hazards,
11. Details of safety related incidents, in the following format:

(J in crore)
As at As at
Particulars Category
March 31, 2023 March 31, 2022
Lost Time Injury Frequency Rate (LTIFR) Employees Nil Nil

(per one million-person hours worked) Workers Nil Nil
Total recordable work-related injuries Employees Nil Nil
Workers Nil Nil
No. of fatalities Employees Nil Nil
Workers Nil Nil
High consequence work-related injury or ill-health (excluding fatalities) Employees Nil Nil
Workers Nil Nil
12. Describe the measures taken by the entity to ensure a safe and healthy workplace.
We emphasize on the importance of maintaining a safe and healthy workplace and we have taken measures for workplace
safety by providing all offices and premises with fire extinguishers and conducting regular drills and awareness sessions
to ensure that employees are well-informed about fire hazards and equipped with the necessary knowledge to respond in
case of an emergency. We prioritize the security of all employees, implementing measures such as access controls, CCTV
monitoring, and security personnel to ensure a safe working environment. All our offices are maintained as per local laws
and regulations on safety and public health hazards guidelines.

13. Number of complaints on the following made by employees and workers.
(J in crore)
FY 2022-23 FY2021-22
Pending Pending
Category Filed
Filed during resolution at resolution at the
Remarks during the year Remarks
the year the end of year end of year
Working Conditions Nil Nil Nil Nil Nil Nil

Health & Safety Nil Nil Nil Nil Nil Nil
14. Assessments for the year
Particulars % of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety practices 100% done by third parties as a part of office premise maintenance.
Working Conditions 100% done by third parties as a part of office premise maintenance.
15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant
risks / concerns arising from assessments of health & safety practices and working conditions.
There is no identified risk related to the health & safety practices and working conditions for the employees. However, the
Company continues to assess the risk related to any health & safety practices and working conditions and is committed to
taking corrective action to mitigate that risk.
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B)
Workers (Y/N).
Yes. We have a health/accidental/term insurance policy that provides insurance coverage for all permanent employees,
and adequate safeguards to families of deceased employees. Further, all benefits like PF, F&F settlements, Gratuity,
Pension etc. are processed on priority to provide necessary support to the family of the employees.
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the
value chain partners.
We ensure that taxes applicable to the transactions within the remit of the Company are deducted and deposited in
accordance with the regulations. We expect value chain partners to uphold business responsibility principles and values
of transparency and accountability.
3. Provide the number of employees / workers having suffered high consequence work related injury / ill-health
/ fatalities (as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable
employment or whose family members have been placed in suitable employment:
No. of employees/workers that are

rehabilitated and placed in suitable
Total no. of affected employees/ workers
employment or whose family members
have been placed in suitable employment
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Employees Nil
Workers Nil
4. Does the entity provide transition assistance programs to facilitate continued employability and the management of
career endings resulting from retirement or termination of employment? (Yes/ No)
We provide trainings related to building new competencies, knowledge and skills. These initiatives help our employees to
maintain gainful engagement or employability post retirement and/or end of service.

5. Details on assessment of value chain partners
Particulars % of value chain partners (by value of business done with such partners) that were assessed
Health and safety conditions We expect our value chain partners to follow extant regulations, including health and safety practices
Working conditions and working conditions.
6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
No corrective action was necessitated . We expect our value chain partners to adhere to all the laws of the land to ensure
the health and safety of their employees.
Principle 4: Businesses should respect the interests of and be responsive to all its stakeholders
This principle anchors on recognizing and addressing the interests of stakeholders. Our key stakeholders include employees,
customers, communities, investors, research analysts, lenders, rating agencies, regulatory agencies etc. We acknowledge and
value the contributions and concerns of our stakeholders and engage with them on a constant basis to understand their issues,
analyze their needs, and respond to them effectively.
1. Describe the processes for identifying key stakeholder groups of the entity.
Over the course of our business journey, we have been able to understand and identify various stakeholders that are
vital for continuity of our business. It is through the diverse business segments/products/services that we have ventured
into which helps us to get engaged with more relevant and diverse range of stakeholders group. For us, each business
segment/department has identified their key stakeholders with whom they have established reliable and transparent
communication channels to address their grievances, concerns, suggestions etc.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
Channels of communication
Whether identified Frequency of
(Email, SMS, Newspaper, Purpose and scope of engagement including
as Vulnerable & engagement (Annually/
Stakeholder Group Pamphlets, Advertisement, key topics and concerns raised during such
Marginalized Group Half yearly/ Quarterly /
Community Meetings, Notice engagement
(Yes/No) others – please specify)
Board, Website), Other
Employees No Email, virtual and physical Daily For performance review, feedback, employee
meetings grievance, company performance sessions,
trainings, engagement programs, etc. The
Company follows an open-door policy.
Customers Yes, if they qualify Email, SMS, website, Frequent and need For customer complaints and resolution, loan
based on specified communication letters, based discussions, feedback, and to stay in touch
criteria such as advertising, grievance and with the customer throughout the life cycle
income, gender feedback channels and other of the loan and address any issues that the
etc. multiple channels customer may have.
Communities Yes Community meetings As an when required, For CSR interventions.
quarterly, annually
Investors No Email, SMS, newspaper Frequent and need For discussing Company’s performance,
advertisement, notice board, based investor complaints, new initiatives and to
website, annual general keep them abreast of developments on the
meetings, intimation to stock Company.
exchanges, annual/ quarterly
financials and investor
meetings/ conferences
Insurance No Website and Email Need based For various operational activities.
Partners &
Deposit Agents
Regulatory No Discussion forums and Need based For compliance procedures.
authorities associations
Rating agencies No Email, meetings, concalls Need based Keep updated on the Company, reviews,
compliance procedures.

1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social
topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
The Company keeps constant interaction with the key stakeholders to communicate and update about the Company
and understand what the stakeholders are looking from the Company. The Board is updated on a quarterly basis and as
required on the developments and feedback.
2. Whether stakeholder consultation is used to support the identification and management of environmental, and social
topics (Yes / No). If so, provide details of instances as to how the input received from stakeholders on these topics were
incorporated into the policies and activities of the entity.
We are aligned to our principle of working towards implementation of systems and practices that are in harmony with
societal welfare and environment protection. We foster a culture where suggestions, discussions, feedback and other
modes of engagement with our stakeholders are used as a repository to deliver on aspects beneficial to environment and
society at large.
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized
stakeholder groups.
Our Company believes that by fulfilling low and middle-income communities’ financial requirements and assisting them
in becoming homeowners, we are achieving an essential social objective. We fully endorse and support the government’s
attempts to put its flagship initiative, the Pradhan Mantri Awas Yojana, into action. Through our CSR efforts, we have
collaborated with NGOs on programs aimed at disadvantaged and marginalized segments of society. To engage with
the marginalized community and the vulnerable groups the common strategy followed for all CSR project is designing
and implementation following the need-based assessments, focus group discussions, involvement of the community,
involvement of the panchayats, school management committee, different volunteer groups, etc. which helps us to
understand the issues and design the program accordingly to benefit the community. Please refer to our CSR section for
initiatives undertaken by us in principle 8 of this report.
Principle 5: Businesses should respect and promote human rights

We abide by all human rights laws included in the Indian constitution, as well as any other statutory bodies that encompass
human rights issues such as child labour prevention, forced labour prevention, woman empowerment, and so on. We cultivate
cordial and open relationships with all stakeholders, including employees, and continue to conduct business in a way that
respects everyone’s rights and dignity.
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the
following format:
There are regular training programs conducted for our employees on Code of Conduct, Whistle Blower, Prevention of
sexual harassment. Every new joiner is expected to undergo a mandatory set of training assigned to them.
(J in crore)
FY 2022-23 FY 2021-22
No. of No. of
Category employees employees
Total (A) % (B / A) Total (C) % (D / C)
/ workers / workers
covered (B) covered (D)
EMPLOYEES
Permanent 1,687 1,613 95.61% 1,422 1,396 98.17%
Other than permanent Not Applicable
Total employees* 1,687 1,613 95.61% 1,422 1,396 98.17%
WORKERS
Permanent Not Applicable
Other than permanent Not Available. We will be progressively reporting on this information once we set up processes to
capture the data in future.
Total workers

2. Details of minimum wages paid to employees and workers, in the following format
FY 2022-23 FY 2021-22
Equal to minimum More than minimum Equal to minimum More than minimum
Category
Total (A) wage wage Total (D) wage wage
No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D)
EMPLOYEES
Permanent 1,687 Nil Nil 1,687 100% 1,422 Nil Nil 1,422 100%
Other than permanent Not Applicable Not Applicable
Total employee* 1,687 Nil Nil 1,687 100% 1,422 Nil Nil 1,422 100%
WORKERS
Permanent Not Applicable
Other than
We ensure that our service providers conform to all applicable laws and government regulations.
permanent
Total workers
3. Details of remuneration/salary/wages, in the following format:

(J in crore)
Male Female
Median Median
Gender remuneration/ remuneration/
Number Number
salary/ wages of salary/ wages of
respective category respective category
Board of Directors (BoD) Please refer to Director’s Report Annexure 3
Key Managerial Personnel 3 1,08,75,839 0 Nil
Employees other than BoD and KMP (Key Managerial 1,429 7,79,994 258 6,55,906
Personnel)
Workers* Not Applicable
*permanent workers
4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business? (Yes/No)
We have various forums in place like the Grievance Redressal Committee and Whistleblower Policy to provide necessary
support to employees in case of any human rights issues in the workplace. We recognize and uphold all human rights
regulations created in accordance with the Indian Constitution as well as other laws that support principles of human
rights, including the prevention of child labor, forced labor, and the empowerment of women. Further, given our nature of
business, we have not envisaged human rights issues caused by our business.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
Whistle Blower Policy provides a neutral and unbiased forum for the directors and employees of our Company to voice
their concerns in a responsible and effective manner. We have an internal complaints committee that deals with sexual
harassment cases in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and
Redressal) Act, 2013 of India (POSH Act).The Company provides reasonable safeguards for employees to raise and obtain
resolution for all grievances in a safe and secure environment.

6. Number of Complaints on the following made by employees and workers:
(J in crore)
FY 2022-23 FY 2021-22
No. of No. of
Category employees employees
Total (A) % (B / A) Total (C) % (D / C)
/ workers / workers
covered (B) covered (D)
Sexual Harassment 1 1 Investigation 1 Nil

ongoing as of
31 March 2023
Discrimination at workplace Nil Nil Nil Nil
Child Labour Nil Nil Nil Nil
Forced Labour/Involuntary Labour Nil Nil Nil Nil
Wages Nil Nil Nil Nil
Other human rights related issues Nil Nil Nil Nil
7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
People First, one of our core values, ensures that we stay committed to enabling equal opportunity and inclusive growth.
We have zero tolerance towards harassment and / or discrimination based on gender, age, race, religion, sex, nationality,
origin, disability, sexual orientation, political opinion, medical condition. Whistleblower Policy, Code of Conduct & POSH
Policy provides the necessary framework for employees to raise concerns in an environment free of discrimination
and harassment.
8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)
Majority of the service agreements between PNB Housing Finance Limited and the service provider, have a specific clause that
states mandates the service provider to abide and comply with all the applicable laws of the land. This clause in the agreement
ensures that the service providers act in accordance with the laid down regulations for human rights requirements.
9. Assessments of the year
Child labour
Forced/involuntary labour
Sexual harassment The Company ensures all statutory compliances in accordance with the laws of the land through
Discrimination at workplace regular internal reviews
Wages
Others – please specify
10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 9 above.
The Company continues to ensure that such risks do not arise. No cause of concerns were identified in this regard.
1. Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints.
We progressively work on improving our systems based on the regular feedback from our key stakeholders, following an
approach to continual improvement.
2. Details of the scope and coverage of any Human rights due diligence conducted
For FY 2022-23 we did not conduct any human rights due diligence exercise.
3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of
Persons with Disabilities Act, 2016?
We are progressively identifying and enabling facilities to accommodate the diverse requirements of specially abled
visitors at our office locations. Most of our offices are in commercial establishments that provide various access facilities
such as ramps, elevators etc., for our differently abled visitors. We also provide them with special assistance as and when
required. We continually strive to comply with all the legal requirements related to inclusion of people with disabilities in
accordance with the Rights of Persons with Disabilities Act, 2016.

4. Details on assessment of value chain partners:
Sexual harassment
Discrimination at workplace As per the POSH laws, any person can file a complaint against the employee and hence all the value
chain partners are covered.
Child labour
The Company expects its value chain partners to adhere to the same values, principle and business
Forced/involuntary labour
ethics upheld by the Company in all their dealings. No specific assessment in respect to value chain
Wages partners have been carried out.
5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 4 above.
No corrective actions were necessitated for the mentioned period
Principle 6: Businesses should respect and make efforts to protect and restore the environment
As a responsible organization, we are continually identifying and taking measures to safeguard the environment. As a Housing
Finance Company, our consumption of environmental resources is limited. However, we are taking necessary steps for energy
conservation and environment protection by rationalizing consumption of electricity and usage of natural resources to save
energy. We have embraced electronic communication with all stakeholders thus transforming ourselves digitally.
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:
The Company has taken several measures to promote a green and sustainable environment, such as the adoption of cloud
computing technology, the promotion of virtualization, optimization of data center energy, and so on.
(J in crore)
FY 2022-23 FY 2021-22
Parameter (Current Financial (Previous Financial
Year) Year)
Total electricity consumption (A) 10,031.60 GJ 10,010.72 GJ

Total fuel consumption (B) 512.11 GJ 512.61GJ
Energy consumption through other sources (C)
Total energy consumption (A+B+C) 10,543.72 GJ 10,523.33 GJ
Energy intensity per rupee of turnover 1.62 (GJ/Turnover 1.71 (GJ/Turnover
(Total energy consumption/ turnover in rupees) in crore) in crore)
Energy intensity (optional) – the relevant metric may be selected by the entity 6.24 (GJ / Full 7.38 (GJ / Full
time employees) time employees)
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency.
No.

2. Does the entity have any sites / facilities identified as designated customers (DCs) under the Performance, Achieve and
Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have
been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
We do not have any sites / facilities identified as designated customers (DCs) under the Performance, Achieve and Trade
(PAT) Scheme of the Government of India as we are a non-banking financial institution and not engaged in manufacturing
of tangible products.
3. Provide details of the following disclosures related to water, in the following format:
Our Company’s usage of water is only for human consumption. We along with our CSR arm, Pehel Foundation,
have collaborated on several water conservation initiatives. The project’s purpose is to increase the location’s
capacity for groundwater recharge and to boost local administration’s capability to improve the delivery of essential
government services.
(J in crore)
FY 2022-23 FY 2021-22
Year) Year)
WATER WITHDRAWAL BY SOURCE (IN KILOLITER'S)

(i) Surface water
(ii) Groundwater
(iii) Third party water (Municipal water supplies)
(iv) Seawater / desalinated water Since we are in the service industry,
(v) Others we use water for human consumption
Total volume of water withdrawal (in kiloliter's) (i+ii+iii+iv+v) only.
Total volume of water consumption (in kiloliter's)

Water intensity per rupee of turnover (Water consumed / turnover)
Water intensity (optional) – the relevant metric may be selected by the entity
(Y/N) If yes, name of the external agency.
Considering the nature of the business, the usage of water is limited to human consumption.
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
No
5. Please provide details of air emissions (other than GHG (greenhouse gas) emissions) by the entity, in the following
format:
FY 2022-23 FY 2021-22
Parameter Please specify unit (Current Financial (Previous Financial
Year) Year)
NOx (Nitrogen oxides) Considering the nature of the business, we do not have
Sox any significant other air emissions, There is only usage of
DG sets at our various sites as power backup options.
Particulate matter (PM)
Persistent organic pollutants (POP)
Volatile organic compounds (VOC)
Hazardous air pollutants (HAP)
(Y/N) If yes, name of the external agency –
No.

6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:
FY 2022-23 *FY 2021-22

Parameter Unit (Current (Previous Financial
Financial Year) Year)
Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, Metric Tons CO2e 1,061.56 1,062.36
PFCs, SF6, NF3, if available) equivalent
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, Metric Tons CO2e
2,201.38 2,196.80
PFCs, SF6, NF3, if available) equivalent
Total Scope 1 and Scope 2 emissions per rupee of turnover 0.50 (Metric Tons 0.53 (Metric Tons
Metric Tons CO2e
CO2e equivalent/ CO2e equivalent/
equivalent / H
Turnover in crore) Turnover in crore)
Total Scope 1 and Scope 2 emission intensity (optional) – the relevant metric Metric Tons CO2e
may be selected by the entity equivalent / Full 1.93 2.28
time employees
No.
7. Does the entity have any project related to reducing Greenhouse Gas emission? If yes, then provide details.
Through a number of initiatives on environmental sustainability, we are making efforts to lower greenhouse
gas emissions.
− We have teamed up with Give India to establish an Integrated garbage Management (IWM) system in Dehradun,
Uttarakhand, with a composting machine and a garbage pickup truck.
− We collaborated with the SMEC trust to plant (using the Miyawaki technique) 6,300 seedlings in Bengaluru, 2,000 in
Narela, and in New Delhi to further our commitment to environmental preservation.
− For an end-to-end digital, paperless, and zero-contact customers onboarding procedure, we implemented video KYC
and replaced traditional customer correspondence with electronic communication, among other things. We have given
our customers smooth access to digital platforms like Homie and ACE by using technology.
− In our workplaces, we employ equipment’s that consumes the least amount of energy possible. Regular maintenance
on the air conditioning system also helps to save costs and energy.
− We continue to support a green and sustainable environment by encouraging virtualization, working from home/
teleworking platforms, and adopting cloud computing technology.
8. Provide details related to waste management by the entity, in the following format:
(J in crore)
FY 2022-23 FY 2021-22
Year) Year)
TOTAL WASTE GENERATED (IN METRIC TONS)

Plastic waste (A) Considering the nature of our
E-waste (B) business, our waste generation is
limited However, we have suitable
Bio-medical waste (C) systems in place for sustainably
Construction and demolition waste (D) treating / disposing of the waste
we generate, as per the applicable
Battery waste (E) guidelines. During the reporting year
Radioactive waste (F) FY 2022-23 we sold 360 number of
battery waste to the respective vendor
Other Hazardous waste. Please specify, if any. (G)
under buy back scheme.
Other Non-hazardous waste generated (H). Please specify, if any. Further, we are also committed to
(Break-up by composition i.e., by materials relevant to the sector) taking various initiatives to reduce
any form of process waste, such
Total (A+B+C+D+E+F+G+H)
as reducing paper waste through
adopting the latest digital systems and
processes and cutting down on paper
printing requirements.

(J in crore)
FY 2022-23 FY 2021-22
Year) Year)
FOR EACH CATEGORY OF WASTE GENERATED, TOTAL WASTE RECOVERED THROUGH RECYCLING, RE-USING OR OTHER
RECOVERY OPERATIONS (IN METRIC TONNES)
Category of waste
(i) Recycled
(ii) Re-used
NA
(iii) Other recovery operations
Total
FOR EACH CATEGORY OF WASTE GENERATED, TOTAL WASTE DISPOSED BY NATURE OF DISPOSAL METHOD
(IN METRIC TONNES)
Category of waste
(i) Incineration
(ii) Landfilling
NA
(iii) Other disposal operations
Total
NA- Not applicable.
No.
9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by
your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices
adopted to manage such wastes.
Considering the nature of the business, the waste generation is limited. The only significant waste products are e-waste
and battery waste, and all the waste generated at the company’s offices is managed in accordance with the waste disposal
method. Used batteries are exchanged in the buyback program, and the vendor is liable to dispose of the waste further.
For other wastes, such as laptops and desktop computers, we donate it to NGO’s and our workers.
10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental
approvals / clearances are required, please specify details in the following format:
Whether the conditions of environmental approval / clearance are being

S.
Location of operations/offices Type of operations complied with? (Y/N) If not, the reasons thereof and corrective action
No.
taken, if any.
Not Applicable. We do not have any offices in an ecologically sensitive area as mentioned by regulatory authorities
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
current financial year:
Whether conducted by Results communicated

Name and brief details
EIA Notification No. Date independent external in public domain Relevant Web link
of project
agency (Yes / No) (Yes / No)
Considering the nature of the business, the environmental impact is limited.
12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India, such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and
rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format:
Specify the law / regulation / Any fines / penalties / action taken by

S. Provide
guidelines which was not complied regulatory agencies such as pollution Corrective action taken if any
No. details of the noncompliance
with control boards or by courts
We are following environmental norms mentioned above as applicable to our company based on the nature of our work.

1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources, in
the following format:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
FROM RENEWABLE SOURCES

Total electricity consumption (A) Nil Nil
Total fuel consumption (B) Nil Nil
Energy consumption through other sources (C) Nil Nil
Total energy consumed from renewable sources (A+B+C) Nil Nil
FROM NON-RENEWABLE SOURCES
Total electricity consumption (D) 10,031.60 GJ 10,010.72 GJ
Total fuel consumption (E) 512.11 GJ 512.61GJ
Energy consumption through other sources (F) 0 0
Total energy consumed from non-renewable sources (D+E+F) 10,543.72 GJ 10,523.33 GJ
2. Provide the following details related to water discharged:

(J in crore)
FY 2022-23 FY 2021-22
Year) Year)
WATER DISCHARGE BY DESTINATION AND LEVEL OF TREATMENT (IN KILOLITRES)

(i) To Surface water
- No treatment
- With treatment – please specify level of treatment
(ii) To Groundwater
- No treatment
(iii) To Seawater Considering the nature of our
- No treatment business, our water usage is
limited to human consumption and
- With treatment – please specify level of treatment the discharge is done as per the
(iv) Sent to third-parties maintenance policies of our premises.
- No treatment
(v) Others
- No treatment
Total water discharged (in kilolitres)

3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): For each facility / plant located in
areas of water stress, provide the following information:
(i) Name of the area:
(ii) Nature of operations:
(iii) Water withdrawal, consumption and discharge in the following format:

(J in crore)
FY 2022-23 FY 2021-22
Year) Year)
WATER WITHDRAWAL BY SOURCE (IN KILOLITRES)

(i) Surface water
(ii) Groundwater
(iii) Third party water
We require water only for human
(iv) Seawater / desalinated water consumption hence we do not
(v) Others withdraw, consume, or discharge any
Total volume of water withdrawal (in kilolitres) water in the areas of water stress as
of FY 2022-23 and FY 2021-22.
Total volume of water consumption (in kilolitres)
Water intensity per rupee of turnover (Water consumed / turnover)
Water intensity (optional) – the relevant metric may be selected by the entity
WATER DISCHARGE BY DESTINATION AND LEVEL OF TREATMENT (IN KILOLITRES)
(i) Into Surface water
- No treatment
(ii) Into Groundwater
- No treatment
(iii) Into Seawater
- No treatment
(iv) Sent to third-parties
- No treatment
(v) Others
- No treatment
Total water discharged (in kilolitres)
4. Please provide details of total Scope 3 emissions and its intensity, in the following format:
FY 2022-23 *FY 2021-22

Parameter Unit (Current (Previous Financial
Financial Year) Year)
Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs,
PFCs, SF6, NF3, if available)
We have not recorded our Scope 3 emissions for the FY
Total Scope 3 emissions per rupee of turnover
2022-23 and FY 2021-22.
Total Scope 3 emission intensity (optional) – the relevant metric may be
selected by the entity
5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details of
significant direct and indirect impact of the entity on biodiversity in such areas along-with prevention and remediation
activities.
Not Applicable. We do not have any of our offices in ecologically sensitive areas as mentioned by various
government authorities.

6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same
as well as outcome of such initiatives, as per the following format:
S. Details of the initiative (Web-link, if any, may be

Initiative undertaken Outcome of the initiative
No. provided along-with summary)
Considering the nature of our business, the environmental impact is limited.
7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Yes. We have a business continuity management (BCM) Committee and have a board approved business continuity plan (BCP).
A detailed business impact analysis has been carried out considering various conventional threat vectors and cyber threats.
This analysis determines the core business functions and critical business sites that are covered under the resiliency program.
The majority of company operations are supported through automation with the help of technology. As a result, IT resilience
plays a crucial role in BCP. All crucial business operations have Recovery Time Objectives (RTO) and Recovery Point Objectives
(RPO) specified and the IT Disaster Recovery Plan ensures that the defined RTO and RPO are met. The BCP defines the overall
governance and monitoring of the business continuity function, including setting up of Emergency Response Teams (ERT) and
Function Recovery Teams (FRT). Business continuity spans people, processes and technology. Requisite training programs have
been conducted for the teams to be prepared to respond in a crisis. Disaster drills and tabletop exercises are conducted at regular
intervals to test whether the set procedures are working as defined within the pre-defined RTO and RPO and whether people
understand and follow it appropriately. Such drills are audited through external CERT-In (Indian Computer Emergency Response
Team) certified auditors. Observations received from such audits are considered as a part of continuous improvements. The plan
is reviewed at periodic intervals and the management and board are kept abreast of any developments or changes in the BCP.
8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or
adaptation measures have been taken by the entity in this regard.
Owing to the nature of the business, there has been no adverse impact on the environment from any business activities of
our Company.
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
Currently none of the value chain partners are assessed for environmental impacts.
Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that
is responsible and transparent
This principle focuses on the appropriate conduct of business with the public, apart from the stakeholders with whom we are directly
or indirectly associated. We recognize that the housing and real estate industries are critical to the Indian economy, thus we encourage
housing construction and financing activities and aim to increase house ownerships. We continue offering recommendations/
representations to various institutions, regulators, forums, and groups to further advance the housing finance industry.
1. a. Number of affiliations with trade and industry chambers/ associations.

We have affiliations with 7 trade and industry associations as mentioned in the response below in part (b).
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such a body)
the entity is a member of/ affiliated to.
S. Reach of trade and industry chambers/ associations

Name of the trade and industry chambers/ associations
No. (State/National)
1 Confederation of Indian Industry (CII) National
2 CREDAI* Amravati National
3 CREDAI MCHI National
4 CREDAI Ahmednagar National
5 CREDAI Pune Metro National
6 CREDAI Surat National
7 National Real Estate Development Council (NAREDCO) West National
Foundation
* The Confederation of Real Estate Developers’ Associations of India (CREDAI)

2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity,
based on adverse orders from regulatory authorities.
Name of the authority Brief of the case Corrective action taken

No corrective action was taken or underway on any issues related to anti-competitive conduct by our company, based on adverse orders
from regulatory authorities as there were no cases reported on the same.
1. Details of public policy positions advocated by the entity:
Frequency of Review by
Whether information
S. Method resorted for such Board (Annually/ Half
Public policy advocated available in the public Web Link, if available
No. advocacy yearly/ Quarterly / Others –
domain? (Yes/No)
please specify)
PNB Housing Finance being one of the largest housing finance companies is invited by various governing bodies for the views while
formulating strategies and policies related to housing finance sector. We do not participate in any form of lobbying.
Principle 8: Businesses should promote inclusive growth and equitable development

PNB Housing Finance recognizes its responsibility towards society and have undertaken various initiatives for the upliftment
of the society . The Company is a participant in the Pradhan Mantri Awas Yojana (PMAY) and has collaborated with the
nodal agencies in the distri.bution of interest subsidies under the Government’s Credit Linked Subsidy Scheme (CLSS) for
the FY 2022-23 that contributes to the general development of the society, with a particular emphasis on disadvantaged,
vulnerable, and marginalized populations. Our organization emphasizes the need for partnership among enterprises,
government agencies, and civil society to achieve inclusive growth and equitable development.
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current
financial year.
Whether conducted by Results communicated

Name and brief details
SIA Notification No Date of notification independent external in public domain Relevant Web link
of project
agency (Yes / No) (Yes / No)
Not applicable1, none of our projects qualify for the SIA as per the applicable laws.
1Note: As per the BRSR, this section pertains to Social Impact Assessment in compliance with Right to Fair Compensation & Transparency in
Land Acquisition, Rehabilitation and Resettlement Act, 2013. Considering the nature of the business of the Company, this is not applicable.
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your
entity, in the following format:
S. Name of Project for No. of Project Affected % of PAFs covered by Amounts paid to PAFs
State District
No. which R&R is ongoing Families (PAFs) R&R in the FY (In J)
Not Applicable1
3. Describe the mechanisms to receive and redress grievances of the community.

The Company believes in sustainably conducting its business and respects views of the community it is involved in. We
welcome concerns and suggestions of the community on a continual basis. We also have grievance redressal mechanisms
for various stakeholders.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
FY 2022-23
*FY 2021-22
Parameter (Current
(Previous Financial Year)
Financial Year)
Directly sourced from MSMEs/ small producers
Not Applicable1.
Sourced directly from within the district and neighboring districts

1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above):
Details of negative social impact

Corrective action taken
identified
Not Applicable1
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as
identified by government bodies:
S. Amount spent
State Aspirational District
No. (In J)
1. Haryana Nuh H48,44,300
2. Jharkhand West Singhbhum and Khunti H6,52,910
3. Uttarakhand Uddham Singh Nagar H36,91,700
4. Rajasthan Baran H12,94,900
3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalized /vulnerable groups? (Yes/No)
(b) From which marginalized /vulnerable groups do you procure?
(c) What percentage of total procurement (by value) does it constitute?

We do not have any preferential procurement policy giving preference to suppliers from marginalized/vulnerable
suppliers, however we are actively seeking ways to engage and provide them with the right opportunities.
4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the
current financial year), based on traditional knowledge:
S. Intellectual Property based on

Owned/ Acquired (Yes/No) Benefit shared (Yes / No) Basis of calculating benefit share
No. traditional knowledge
We do not have intellectual properties owned or acquired based on traditional knowledge in the FY 2022-23.
5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes
wherein usage of traditional knowledge is involved.
Name of authority Brief of the case Corrective action taken

Not Applicable. Refer point 4 above.
6. Details of beneficiaries of CSR Projects:

We understand the importance of giving back to the communities in which we operate. As part of our CSR interventions,
we have partnered with different NGOs through PEHEL Foundation to design and execute various programs that
address key societal challenges and contribute to the overall well-being of the communities we serve. These programs
are focused on a range of thematic areas, including upskilling and vocational training, improving access to quality
healthcare and sanitation, ensuring education to underprivileged communities, promoting environmental sustainability and
conservation, and providing critical relief work during times of crisis, such as the COVID-19 pandemic. Our partnership
with implementing agencies enables us to leverage their expertise and experience, reach a wider audience and have
a more significant impact on the communities we serve. We believe that our CSR interventions not only benefit the
communities we serve but also help to build stronger and more sustainable relationships with our stakeholders and
contribute to the long-term success of our business.
For more details, please refer to annexure-2 of our annual report FY 2022-23

The link to our CSR policy is PNB-Housing-CSR-policy-2020.pdf (pnbhousing.com)
% of
No. of persons
S. beneficiaries from
CSR Project benefited from
No. vulnerable and
CSR Projects
marginalized groups
HEALTH
1. Provided hearing aid to hearing impaired children in Telangana. 250 100%
2. Strengthened infrastructure at two primary public healthcare centers, community health 1,00,000 100%
centers in Ahmedabad, Gujarat.
3. Supported a 42-seater patient transport bus to make eye care services more accessible 40,000 100%
to the underprivileged community by providing free transportation to the eye hospital in
Secunderabad, Telangana.
4. Strengthened a primary health center in Mallasandra, Hoskote Karnataka. 7,000 100%
5. Provided medical equipment support to set up 10 bedded sick newborn care Unit (SNCU) in 600 100%
district hospital in Noida, Uttar Pradesh.
6. Supported four mobile medical clinics for a year at Delhi/NCR, Mumbai, Chennai, and Kolkata. 1,00,000 100%
7. Provided safe accommodation facilities for construction workers. 100 100%
EDUCATION
1. Implemented solar electrification of twenty government schools in Gurugram, Haryana and 5,885 100%
Ghaziabad, Uttar Pradesh.
2. Started PNB Housing Finance Ki Paathshaala - A transformation project in 1 Government 454 100%
School in Nuh, Haryana.
3. Upgraded 4 anganwadi center near Gurugram, Haryana. 837 100%
4. Developed e-learning infrastructure in government schools in Gurugram, Haryana. 16,223 100%
5. Built a solar power grid of 7KW each in three schools in Alwar, Rajasthan and Nuh, Haryana. 1,431 100%
6. Upgraded 5 anganwadi into PEHEL smart anganwadis for improving service delivery of health, 130 100%
nutrition, and education at designated anganwadis in Rajkot, Gujarat.
7. Provided 2 STEM Mobile Van in Ahmedabad, Gujarat. 3,800 100%
8. Supported fencing and gates around childcare homes in Bhimtal, Uttarakhand. 120 100%
9. Provided scholarship support to poor and needy students 400 100%
10. Supported various tribal schools. 1,080 100%
WOMEN EMPOWERMENT
1. We set up and promoted women owned spice-based units at Udaipur and Baran, Rajasthan and 115 100%
Rudrapur, Uttarakhand.
2. We set up two sanitary napkin manufacturing units at Valsad, Gujarat and Lucknow, Uttar 64 100%
Pradesh.
3. Developed skill-based livelihoods and mainstream children of migrant workers into formal 184 100%
education, Gurugram Haryana.
4. Conducted skill development of Artisans in Carpet Sector in Jaipur, Rajasthan. 120 100%
5. Started “Panah- A Daycare center” - creche for kids of women workers in the hospital in 70 100%
Bhubaneswar, Orrisa.
6. Supported skill development of especially abled women. 420 100%
NATURAL RESOURCES MANAGEMENT AND ENVIRONMENT
1. Started Jal Khushaali II- A water conservation project in Bastpur, Gwalior, Madhya Pradesh. 1,606 100%
2. Provided safe drinking water in Udaipur, Rajasthan. 994 100%
3. We set up a community based sustainable drinking water system in the villages near 75,000 100%
Gurugram, Haryana.
4. We set up a plastic bottle recycling machines in Mumbai, Maharashtra. 7,50,000 footfalls 100%
5. We have distributed smokeless chulhas to rural families in the Delhi NCR area. - -

Principle 9: Businesses should engage with and provide value to their customers in a responsible manner
This principle speaks about customer relations and protecting their sensitive information from various IT risks and cyber
threats. Investing in customer services is critical because it helps us build stronger relationships with our customers, We are
continually upgrading towards the the best data protection practices to serve our customers responsibly.
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Considering the nature of our business, customer complaints and feedback is a critical aspect of our business. Customer
walk-ins, e-mails, phone calls, letters / physical communication (excluding those sent to the BO/RBI), website, regulator/
statutory authority can all be used by the customers to file a complaint or query. We have also introduced a new way of
communicating with our customers and addressing their complaints with the medium of our recently launched mobile
application. We have won one of the most prestigious awards, i.e., Best Digital Customer Experience Initiative (ACE 2.5)
award for our continuous commitment to providing our customers with a seamless digital experience.
The detailed grievance redressal mechanism is prescribed on the website of the company is as below:
Grievance-Redressal-Mechanism-2023.
2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:
As a percentage to
total turnover
Environmental and social parameters relevant to the product 100%
Safe and responsible usage 100%
Recycling and/or safe disposal NA
NA- Not applicable
3. Number of consumer complaints in respect of the following:

(J in crore) (J in crore)
FY 2022-23 FY 2021-22
Remarks Pending Remarks
As at As at Received
resolution at end
March 31, 2023 March 31, 2023 during the year
of year
Data privacy Nil Nil Nil Nil
Advertising Nil Nil Nil Nil
Cyber-security Nil Nil Nil Nil
Delivery of essential 418 2 563 6
services
Restrictive Trade Practices Nil Nil Nil Nil
Unfair Trade Practices Nil Nil Nil Nil
Other 1,376 8 1,707 4
4. Details of instances of product recalls on account of safety issues:
Name of authority Brief of the case Corrective action taken

Voluntary recalls Considering the nature of our business, we did not have
Forced recalls any instances of voluntary or forced product recalls due to
safety issues in the FY 2022-23.

5. Does the entity have a framework/ policy on cyber 6. Provide details of any corrective actions taken or
security and risks related to data privacy? (Yes/No) If underway on issues relating to advertising, and delivery
available, provide a web-link of the policy. of essential services; cyber security and data privacy
We believe that in this digital age, customer information of customers; re-occurrence of instances of product
is one of the most valuable assets we have and applying recalls; penalty / action taken by regulatory authorities
safeguards for protection of this information is one of on safety of products / services.
our prime responsibilities. With ‘defence in depth’ as the There were no cases relating to advertising, and delivery
principle for implementing security controls, we have of essential services; cyber security and data privacy of
implemented multi-layers controls for identification, customers; re-occurrence of instances of product recalls
prevention, detection, and response to various cyber and hence no corrective actions taken or underway by
security threats we face today. regulatory authorities on safety of products / services.
Our risk centred approach supported with information

security policy, cyber security policy and cloud security
policy support our well-established information 1. Channels / platforms where information on products
security management system framework to protect and services of the entity can be accessed (provide
business information at network, endpoint, perimeter, web link, if available).
application, endpoint data, and human layer. The IT
Information about our products and services can be
strategy committee and information security committee
accessed on our official website www.pnbhousing.
chaired by independent director’s helms cyber security
com. We also keep informing our customers and other
risks with help of cyber security risk and performance
stakeholders through various e-mailers about our
indicators for implementation and effectiveness of
products and services.
various cyber security controls.
We engage industry experts to perform comprehensive 2. Steps taken to inform and educate customers about
security testing of underlying infrastructure, applications, safe and responsible usage of products and/or services.
and supporting network components to test and improve We have established non-branch and alternate
the implemented control measures. Our disaster recovery communication methods via which customers may
site is in tandem with backup controls that ensure communicate and transact seamlessly. Customers may
continued availability of information. Implementation access loan and deposit information and other services via
of next generation firewall along with 24x7 Security mobile applications. Customers can check the progress
Operations Centre (SOC) and End Point Protection (EPP) of their loan application using the loan application
software help us protect our externally facing and internal tracker. We are continually investing in technological
IT environment from various threats. We also constantly upgrades and acquisitions and have introduced a new
monitor our brand and data for any leakage over social way of communicating with our customers through our
media and dark web with the help from service provider mobile application where we can address their queries
in addition to restricting internal server to server and complaints and educate them about our products
communication only on authorized ports and services. and services. We have begun document digitalization so
Considering the criticality of data we process, we have that customers may access digital copies of their loan
also deployed Data Loss Prevention (DLP) solution for documents via various digital interfaces. Our mechanisms
monitoring and restricting data loss either from endpoint, are fair and clear to customers at every stage and to
network, or web gateway. DLP solution is complemented provide this clarity we use the CRM system that provides
with Web Proxy solution to restrict users from accessing on-the-job training and skill enhancement for the
non-work-related websites. With use and adoption of relationship management employees, including customer
multiple digital applications we have also implemented web recommendations and feedback.
application firewall for all internet facing applications.
3. Mechanisms in place to inform customers of any risk of
To empower employees to work from anywhere, most disruption/discontinuation of essential services.
of them have been provided with laptops, which are secured
We notify our customers through emails and SMS of any
with full-disk encryption and are made aware of various dos
possibility of disruption/discontinuation of vital services.
and don’ts of information security on regular basis. With our
We want our customers to be aware of the services we
dependence on multiple business partners, we also ensure
provide so that they may take suitable decisions.
that similar security controls are practiced in safeguarding
sensitive information. We continue to enhance our security
4. Does the entity display product information on the
controls and keep abreast with industry leading practices.
product over and above what is mandated as per local
Web Link: https://www.pnbhousing.com/privacy/ laws? (Yes/No/Not Applicable) If yes, provide details in
brief. Did your entity carry out any survey with regard
to consumer satisfaction relating to the major products /

services of the entity, significant locations of operation of of satisfaction with the product and transaction experience
the entity or the entity as a whole? (Yes/No) are measured as part of this effort. These inputs are then
Yes, we display product information over and above examined, and the insights gained are used to improve
what is mandated as per local laws. Before financing, the products and procedures and customer service quality.
features of home loan schemes are communicated to the Furthermore, significant diagnostic research in certain areas
applicant. We also display product information at each of is done regularly to find opportunities for improvement in the
our branch offices throughout India. Details of product products and services provided to customers and to suggest
attributes, relevant information on the products and relevant action points for change.
services offered, fees and charges, benchmark interest
rates, and other important notifications such as ‘Most 5. Provide the following information relating to data
Important Terms and Conditions’, grievance redressal breaches:
mechanism are available in all offices and on our
a. Number of instances of data breaches along-with
company’s website. We seek to ensure that information
impact
about our products and services is transparent, accurate,
relevant and is distributed through our advertising There were no instances of data breaches in the
material and the information shown on the digital FY 2022-23.
platforms controlled by us. We promote appropriate
and responsive communication with all stakeholders, b. Percentage of data breaches involving personally
including customers, the media, and employees. identifiable information of customers
There were no data breaches involving personally
We continuously assess our customers’ involvement and
identifiable information of customers in the
satisfaction levels across multiple products and digital
FY 2022-23.
contact points. Our customers’ recommendations and levels

INDEPENDENT AUDITORS’ REPORT
To the Members of PNB Housing Finance Limited Basis for Opinion

We conducted our audit of the Standalone Financial
REPORT ON THE AUDIT OF THE STANDALONE Statements in accordance with the Standards on Auditing
FINANCIAL STATEMENTS (SAs), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described
Opinion
in the ‘Auditor’s Responsibilities for the Audit of the
We have audited the accompanying Standalone Financial Standalone Financial Statements’ section of our report. We
Statements of PNB Housing Finance Limited (“the Company”), are independent of the Company in accordance with the ‘Code
which comprise the Balance sheet as at March 31, 2023, the of Ethics’ issued by the Institute of Chartered Accountants of
Standalone Statement of Profit and Loss, including standalone India together with the ethical requirements that are relevant
Other Comprehensive Income, the standalone Statement of to our audit of the Standalone Financial Statements under
Cash Flow and and the standalone Statement of Changes in the provisions of the Act and the Rules thereunder, and we
Equity for the year then ended, and notes to the Standalone have fulfilled our other ethical responsibilities in accordance
Financial Statements, including a summary of significant with these requirements and the Code of Ethics. We believe
accounting policies and other explanatory information that the audit evidence we have obtained is sufficient and
(hereinafter referred to as “the Standalone Financial appropriate to provide a basis for our audit opinion on the
Statements”). Standalone Financial Statements.
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid Key audit matters
Standalone Financial Statements give the information Key audit matters are those matters that, in our professional
required by the Companies Act, 2013 (“the Act”) in the judgment, were of most significance in our audit of the
manner so required and give a true and fair view in Standalone Financial Statements for the financial year
conformity with the Indian Accounting Standards prescribed ended March 31, 2023. These matters were addressed in the
under section 133 of the Act read with the Companies (Indian context of our audit of the Standalone Financial Statements
Accounting Standards) Rules, 2015, as amended (“Ind AS”) as a whole, and in forming our opinion thereon, and we do
and other accounting principles generally accepted in India, of not provide a separate opinion on these matters. We have
the state of affairs of the Company as at March 31, 2023, its determined the matters described below to be the key audit
profit including standalone other comprehensive income, its matters to be communicated in our report.
standalone cash flows and the standalone changes in equity
for the year ended on that date.
Key audit matters How our audit addressed the key audit matter
Allowance for Expected Credit Loss (ECL) on loan assets
The Company has reported total gross loans of H59,341.37 crore and Our audit approach was a combination of test of internal controls and
H1,432.84 crore of allowance for expected credit loss as on March 31, substantive procedures which included the following:
2023 (Refer Note 6).
a) Testing the design and effectiveness of internal controls over the
The allowance for ECL on loan assets involves significant key following:
judgements and estimates in respect of timing and measurement of
− key controls over the completeness and accuracy of the key
expected credit loss (Refer Note 2.21). As part of our risk assessment,
inputs, data and assumptions into the Ind AS 109 impairment
we determined that the allowance for ECL on loan assets has a
models.
high degree of estimation, with a potential impact on the financial
statements. − key controls over the application of the staging criteria
consistent with the definitions applied in accordance with
The major elements of estimating ECL are the following:
the policy approved by the Board of Directors including the
a) Application of ECL model requires several data inputs. appropriateness of the qualitative factors.
b) Judgmental models used to estimate ECL which involves − management’s controls over authorisation and calculation
determining Probability of Default (“PD”), Loss Given Default of post model adjustments and management overlays to the
(“LGD”), and Exposures at Default (“EAD”). The PD and the LGD output of the ECL model.
are the key drivers of estimation complexity in the ECL and as a
b) In addition to above the following audit procedures have been
result are considered the most significant judgmental aspect of the
applied;
Company’s modelling approach.
− testing of key inputs, data and assumptions impacting ECL
c) Qualitative and quantitative factors used in staging of loan assets.
calculations to assess the completeness, accuracy and
d) Ind AS 109 requires the Company to measure ECL on an unbiased relevance of data, reasonableness of economic forecasts,
forward-looking basis reflecting a range of future economic weights, and model assumptions applied;
conditions. Significant management judgement is applied in
determining the economic scenarios used and the probability
weights applied to them.

Key audit matters How our audit addressed the key audit matter
e) Completeness and valuation of post model adjustments. − with the support of the team of modelling specialists employed
by the Company to make the models, we tested/relied upon
In view of the high degree of management’s judgement involved in the assumptions, inputs and formulas used in a sample of ECL
estimation of ECL and the overall significance of the impairment models. This included assessing the appropriateness of model
loss allowance to the standalone financial statements, it is design and formulas used, the ‘Probability of Default’, ‘Loss
considered as a key audit matter. Given Default’, ‘Exposure at Default’, historical loss rates used,
and the valuation of collateral.
− tested mathematical accuracy and computation of the
allowances by using the input data used by the Company;
c) Evaluating the appropriateness of the Company’s impairment
methodologies as required under Ind AS 109 and reasonableness
of assumptions used including management overlays ensuring that
the adjustment to ECL Model was in conformity with the policy
approved by the Audit Committee.
Information Technology (IT) Systems and Controls

The Company uses ERP system for financial reporting which interface Our key audit procedures on this matter included, but were not limited,
with other business operation softwares that process transactions to the following:
related to loans, deposits and borrowings.
(a) obtained an understanding of the Company’s information
The Company’s key financial accounting and reporting processes are processing systems, IT General Controls and automated IT controls
highly dependent on the automated controls implemented in IT systems. for applications, databases and operating systems relevant to our
If there exist gaps in the IT control environment, then it could result audit;
in the financial accounting and reporting records being materially
misstated. (b) Also, obtained an understanding of the changes that were made to
the IT applications during the audit period;
Therefore, due to the complexity of the IT environment, the assessment
of the general IT controls and the application controls specific to the (c) Also, performed following procedures:
accounting and preparation of the financial information is considered to (i) tested the IT General Controls around user access
be a key audit matter. management, changes to IT environment and segregation
of duties around program maintenance and security
administration relating to key financial accounting and
reporting processes;
(ii) tested the Company’s periodic review of access rights. We
also tested requests of changes to systems for approval and
authorization; and
(iii) tested the automated controls like interfaces, configurations
and information generated by the entity’s information
processing systems for loans, borrowings, deposits, interest
income, interest expense and other significant financial
statement items.
Other Information there is a material misstatement of this other information,

The Company’s management and Board of Directors are we are required to report that fact. When we read the Annual
responsible for the other information. The other information Report, if we conclude that there is a material misstatement
comprises the information included in the Company’s Annual therein, we are required to communicate the matter to those
Report, but does not include the Standalone Financial charged with governance and take necessary actions, as
Statements and our auditor’s report thereon. The Annual applicable under the applicable laws and regulations.
Report is expected to be made available to us after the date of
this auditor’s report. Our opinion on the Standalone Financial Responsibilities of Management for the Standalone
Statements does not cover the other information and we do Financial Statements
not express any form of assurance conclusion thereon. The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
In connection with our audit of the Standalone Financial
the preparation of these Standalone Financial Statements
Statements, our responsibility is to read the other information
that give a true and fair view of the standalone financial
and, in doing so, consider whether the other information
position, financial performance including standalone other
is materially inconsistent with the Standalone Financial
comprehensive income standalone cash flow and standalone
Statements or our knowledge obtained during the course of
changes in equity of the Company in accordance with the
our audit or otherwise appears to be materially misstated.
accounting principles generally accepted in India, including
If, based on the work we have performed, we conclude that
the Indian Accounting Standards (Ind AS) specified under

section 133 of the Act read with the Companies (Indian from fraud is higher than for one resulting from error, as
Accounting Standards) Rules, 2015, as amended. This fraud may involve collusion, forgery, intentional omissions,
responsibility also includes maintenance of adequate misrepresentations, or the override of internal control.
accounting records in accordance with the provisions of
− Obtain an understanding of internal control relevant to
the Act for safeguarding of the assets of the Company and
the audit in order to design audit procedures that are
for preventing and detecting frauds and other irregularities;
appropriate in the circumstances. Under section 143(3)
selection and application of appropriate accounting policies;
(i) of the Act, we are also responsible for expressing our
making judgments and estimates that are reasonable and
opinion on whether the Company has adequate internal
prudent; and the design, implementation and maintenance
financial controls system in place and the operating
of adequate internal financial controls, that were operating
effectiveness of such controls.
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and − Evaluate the appropriateness of accounting policies used
presentation of the Standalone Financial Statements that give and the reasonableness of accounting estimates and
a true and fair view and are free from material misstatement, related disclosures made by management.
whether due to fraud or error.
− Conclude on the appropriateness of management’s use
In preparing the Standalone Financial Statements, of the going concern basis of accounting and, based
management is responsible for assessing the Company’s on the audit evidence obtained, whether a material
ability to continue as a going concern, disclosing, as uncertainty exists related to events or conditions that
applicable, matters related to going concern and using the may cast significant doubt on the Company’s ability to
going concern basis of accounting unless management either continue as a going concern. If we conclude that a material
intends to liquidate the Company or to cease operations, or uncertainty exists, we are required to draw attention
has no realistic alternative but to do so. in our auditor’s report to the related disclosures in the
Standalone Financial Statements or, if such disclosures
Board of Directors are also responsible for overseeing the
are inadequate, to modify our opinion. Our conclusions
Company’s financial reporting process.
are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions
Auditor’s Responsibilities for the Audit of the
may cause the Company to cease to continue as a
Standalone Financial Statements
going concern.
Our objectives are to obtain reasonable assurance about
whether the Standalone Financial Statements as a whole − Evaluate the overall presentation, structure and content
are free from material misstatement, whether due to fraud of the Standalone Financial Statements, including the
or error, and to issue an auditor’s report that includes our disclosures, and whether the Standalone Financial
opinion. Reasonable assurance is a high level of assurance, Statements represent the underlying transactions and
but is not a guarantee that an audit conducted in accordance events in a manner that achieves fair presentation.
with SAs will always detect a material misstatement when Materiality is the magnitude of misstatements in the
it exists. Misstatements can arise from fraud or error and Standalone Financial Statements that, individually or in
are considered material if, individually or in the aggregate, aggregate, makes it probable that the economic decisions of
they could reasonably be expected to influence the economic a reasonably knowledgeable user of the Standalone Financial
decisions of users taken on the basis of these Standalone Statements may be influenced. We consider quantitative
Financial Statements. materiality and qualitative factors in (i) planning the scope of
As part of an audit in accordance with SAs, we exercise our audit work and in evaluating the results of our work; and
professional judgment and maintain professional skepticism (ii) to evaluate the effect of any identified misstatements in
throughout the audit. We also: the Standalone Financial Statements.
− Identify and assess the risks of material misstatement of We communicate with those charged with governance
the Standalone Financial Statements, whether due to fraud regarding, among other matters, the planned scope and
or error, design and perform audit procedures responsive timing of the audit and significant audit findings, including
to those risks, and obtain audit evidence that is sufficient any significant deficiencies in internal control that we identify
and appropriate to provide a basis for our opinion. The during our audit.
risk of not detecting a material misstatement resulting

We also provide those charged with governance with a disqualified as on March 31, 2023 from being appointed
statement that we have complied with relevant ethical as a director in terms of Section 164 (2) of the Act;
requirements regarding independence, and to communicate
(f) With respect to the adequacy of the internal financial
with them all relationships and other matters that may
controls with reference to these Standalone Financial
reasonably be thought to bear on our independence, and
Statements of the Company and the operating
where applicable, related safeguards.
effectiveness of such controls, refer to our separate
From the matters communicated with those charged with Report in “Annexure B” to this report;
governance, we determine those matters that were of
(g) With respect to the other matters to be included in
most significance in the audit of the standalone financial
the Auditor’s Report in accordance with Rule 11 of
statements for the financial year ended March 31, 2023
the Companies (Audit and Auditors) Rules, 2014,
and are therefore the key audit matters. We describe these
as amended in our opinion and to the best of our
matters in our auditors’ report unless law or regulation
information and according to the explanations given
precludes public disclosure about the matter or when,
to us:
in extremely rare circumstances, we determine that a
matter should not be communicated in our report because i. The Company has disclosed the impact of pending
the adverse consequences of doing so would reasonably litigations on its financial position in its Standalone
be expected to outweigh the public interest benefits of Financial Statements – Refer Note 40 to the
such communication. Standalone Financial Statements;
ii. The Company has recognised provision, as required

Report on Other Legal and Regulatory Requirements
under the applicable law or accounting standards,
1. As required by the Companies (Auditor’s Report) Order, for material foreseeable losses, if any, on long term
2020 (“the Order”), issued by the Central Government contracts including derivative contracts - Refer
of India in terms of sub-section (11) of section 143 of Note 15 to the standalone financial statements;
the Act, we give in the “Annexure A” a statement on the
matters specified in paragraphs 3 and 4 of the Order. iii. The Company was regular in depositing the
amounts required to be transferred to the Investor
2. As required by Section 143(3) of the Act, we report that: Education and Protection Fund;
(a) We have sought and obtained all the information and iv. a. The management has represented that, to the
explanations which to the best of our knowledge and best of it’s knowledge and belief, no funds
belief were necessary for the purposes of our audit; (which are material either individually or in
(b) In our opinion, proper books of account as required by the aggregate) have been advanced or loaned
law have been kept by the Company so far as it appears or invested (either from borrowed funds or
from our examination of those books; share premium or any other sources or kind
of funds) by the Company to or in any other
(c) The standalone Balance Sheet, the standalone persons or entities, including foreign entities
Statement of Profit and Loss including standalone Other (“Intermediaries”), with the understanding,
Comprehensive Income, the standalone Statement of whether recorded in writing or otherwise,
Cash Flow and standalone Statement in Equity dealt that the Intermediaries shall, whether,
with by this Report are in agreement with the books directly or indirectly lend or invest in other
of account; persons or entities identified in any manner
(d) In our opinion, the aforesaid Standalone Financial whatsoever by or on behalf of the Company
Statements comply with the Accounting Standards (“Ultimate Beneficiaries”) or provide any
specified under Section 133 of the Act, read with guarantee, security or the like on behalf of the
Companies (Indian Accounting Standards) Rules, 2015, Ultimate Beneficiaries;
as amended; b. The management has represented, that,
(e) On the basis of the written representations received to the best of it’s knowledge and belief, no
from the directors as on March 31, 2023 taken on record funds (which are material either individually
by the Board of Directors, none of the directors is or in the aggregate) have been received by
the Company from any persons or entities,

including foreign entities (“Funding Parties”), v. The Company has not declared or paid any dividend
with the understanding, whether recorded in during the year and has not proposed any dividend
writing or otherwise, that the Company shall, for the year. Therefore, reporting in this regard is
whether, directly or indirectly, lend or invest not applicable to the Company.
in other persons or entities identified in any
vi. Proviso to Rule 3(1) of the Companies (Accounts)
manner whatsoever by or on behalf of the
Rules, 2014 for maintaining books of account
Funding Party (“Ultimate Beneficiaries”) or
using accounting software which has a feature of
provide any guarantee, security or the like on
recording audit trail (edit log) facility is applicable
behalf of the Ultimate Beneficiaries; and
to the Company with effect from April 1, 2023.
c. Based on such audit procedures, we have Therefore, reporting in this regard is not applicable.
considered reasonable and appropriate in
3. In our opinion, the remuneration paid/ provided by
the circumstances, nothing has come to our
the Company for its directors and managers for the
notice that has caused us to believe that the
year ended March 31, 2023 is in accordance with the
representations under sub-clause (i) and (ii)
provisions of section 197 read with Schedule V to
of Rule 11(e), as provided under (a) and (b)
the Act.
above contain any material misstatement;
For Singhi & Co. For T R Chadha & Co LLP

Chartered Accountants Chartered Accountants
Firm Reg. No. 302049E Firm Reg. No. 006711N/N500028
BIMAL KUMAR SIPANI NEENA GOEL

Partner Partner
Membership No. 088926 Membership No. 057986
UDIN: 23088926BGXBAG3781 UDIN: 23057986BGVLHI8293
Date: May 18, 2023 Date: May 18, 2023

Place: New Delhi Place: New Delhi

Annexure A to Independent Auditor’s Report of even date to the members of PNB Housing Finance Limited on the
Standalone Financial Statements as at and for the year ended March 31, 2023 (Referred to in paragraph 1 of our
report on the other legal and regulatory requirements)
(i) a. (A) The Company has maintained proper records the basis of security of current assets. We have
showing full particulars, including quantitative not come across any difference between the
details and situation of property, plant information submitted in the quarterly returns /
& equipment. statements filed by the Company with such banks
or financial institutions when compared with the
(B) The Company is maintaining proper records
books of account (principal outstanding) and other
showing full particulars of intangible assets.
relevant information provided by the Company.
b. The Company has a regular programme of physical
(iii) a. The Company’s principal business is to give loans.
verification of its property, plant and equipment
Therefore, the provisions of clause 3(iii)(a) of the
by which property, plant and equipment are
Order are not applicable to the Company.
verified once in two years, which in our opinion,
is reasonable having regard to the size of the b. According to the information and explanations
Company and nature its property, plant and given to us, the Company has not provided any
equipment. In accordance with this programme, guarantees or given any security or advances in
property, plant and equipment were not physically the nature of loan during the year. Further, the
verified during the year. investments made and the terms and conditions
of the grant of loans during the year, are not prima
c. According to the information and explanations
facie prejudicial to the interest of the Company.
given to us and based on examination of the
records and registered sale deeds / transfer deeds c. In respect of loans asset, the schedule of
/ conveyance deeds provided to us, the title deeds, repayment of principal and payment of interest has
comprising all the immovable properties included in been stipulated. Except for loans where there are
Note 12 of financial statements (i.e Property, Plant delays or defaults in repayment of principal and /
& Equipment), are held in the name of the Company or payment of interest as at the balance sheet date,
as at the balance sheet date. in respect of which the Company has disclosed
the accounting policy in note no 2.21 and asset
d. The Company has not revalued its property, plant
classification / staging in note 6.2 to the Standalone
and equipment (including right of use assets) and
Financial Statements in accordance with Ind AS
intangible assets during the year. Therefore, the
and the guidelines issued by the regulators, the
provisions of clause 3(i)(d) of the Order are not
parties are repaying the principal amounts, as
applicable to the Company.
stipulated, and are also regular in payment of
e. According to information and explanations given interest, as applicable. Having regard to the nature
by the management and based on examination of of the Company’s business and the voluminous
the records, no proceedings have been initiated or nature of loan transactions involved, it is not
are pending against the Company for holding any practicable to furnish entity wise list of loan assets
benami property under the Prohibition of Benami where delinquencies in the repayment of principal
Property Transactions (Prohibition) Act, 1988, as and interest have been identified.
amended and rules made thereunder. Therefore,
d. The total amount overdue for more than ninety
provisions of clause 3(1)(e) of the Order are not
days, in respect of loans and advances in the nature
of loans including interest thereon, as at March 31,
(ii) a. Based on our examination of the books of accounts 2023 is H1,933.10 crore (3,804 cases). Reasonable
of the Company, the Company has no inventory. steps have been taken by the Company for recovery
Therefore, the provisions of clause 3(ii)(a) of the of the principal and interest as stated in the
Order are not applicable to the Company. applicable Regulations and Loan agreements.
b. As per the information and explanations given to e. According to the records of the Company examined
us, the company has been sanctioned working by us, the Company is engaged primarily in lending
capital limits in excess of five crore rupees, in activities. Therefore, the provisions of clause 3(iii)
aggregate, from banks or financial institutions on (e) of the Order are not applicable to the Company.

f. According to the records of the Company examined of India or by any other court or tribunal with regard to
by us, the Company has not granted any loans or aforesaid deposits.
advances in the nature of loans either repayable
(vi) The maintenance of cost records has not been specified
on demand or without specifying any terms or
by the Central Government under Section 148(1) of
period of repayment during the year. Therefore, the
the Act for the business activities carried out by the
provisions of clause 3(iii)(f) of the Order are not
Company. Therefore, the provisions of clause 3(vi) of the
(iv) The Company has not granted any loans, made
(vii) a. According to the records of the Company examined
investments or provided guarantee or securities that are
by us, the Company is generally regular in
covered under the provision of section 185 or 186 of the
depositing undisputed statutory dues including
Act during the year. Therefore, the provisions of clause
Goods and Service Tax, Provident Fund, Employees
3(iv) of the Order are not applicable to the Company.
State Insurance, Income-tax, Sales tax, Service
(v) The Company has complied with the directives issued tax, Duty of customs, Duty of excise, Value Added
by the Reserve Bank of India with regard to the deposits tax, Cess and other statutory dues as applicable,
accepted and amounts deemed to be deposits during the with the appropriate authorities. There were no
year. The Company being a Housing Finance Company undisputed outstanding statutory dues as at the
registered with National Housing Bank provisions of year end for a period of more than six months from
sections 73 to 76 or any other relevant provisions of the date they became payable.
the Act, and the Companies (Acceptance of Deposits)
b. According to the information and explanation given
Rules, 2014, as amended are not applicable. According
to us and the records of the Company examined
to the information and explanations given to us, no
by us, there are no statutory dues referred to
order has been passed by the Company Law Board or
in sub-clause (a) on account of any dispute
the National Company Law Tribunal or Reserve Bank
except followings:
Amount
Name of Statue Nature of disputed dues Period to which it relates Forum where dispute is pending
(J in crore)*
Income Tax Act Income Tax Demand/ Penalty/ Interest 1.96 A.Y. 2014-15 High Court
Income Tax Act Income Tax Demand/ Penalty/ Interest 45.92 A.Y. 2017-18 to A.Y. 2020-21 National Faceless Assessment Center
Income Tax Act Income Tax Demand/ Penalty/ Interest 0.01 A.Y. 2020-21 Assessing Officer
* net of amount deposited under protest applied for the purposes for which the loans were
raised other than temporary deployment pending
(viii) According to the information and explanation given to us
application of proceeds.
and based on examination of the records, there were no
transactions which have not been recorded in the books d. According to the information and explanations
of account, have been surrendered or disclosed as given to us, and the procedures performed by
income during the year in the tax assessments under the us, and on an overall examination of the financial
Income Tax Act, 1961 (43 of 1961). Therefore, provisions statements of the Company, we report that funds
of clause 3(viii) of the Order are not applicable to raised on short-term basis have, prima facie not
the Company. been used for long-term purposes by the Company.
(ix) a. The Company has not defaulted in repayment of e. According to the information and explanations
loan or other borrowings or in the payment of given to us and on an overall examination of the
interest thereon during the year. financial statements of the Company, we report
that the Company has not taken any funds from
b. According to information and explanations given
any entity or person on account of or to meet the
by the management, the Company has not been
obligations of its subsidiaries.
declared willful defaulter by any bank or financial
institution or other lender during the year. f. According to the information and explanations
given to us and procedures performed by us, we
c. According to the information and explanations
report that the Company has not raised loans
given to us and based on examination of the
during the year on the pledge of securities held in
records, the term loans raised during the year were
its subsidiaries

(x) a. The Company has not raised any money by way of (xv) According to the information and explanations given
initial public offer or further public offer (including to us, in our opinion the Company has not entered into
debt instruments) during the year. Therefore, the any non-cash transactions with its directors or persons
provisions of clause 3(x)(a) of the Order are not connected with them during the year hence provision of
applicable to the Company. section 192 of the Act are not applicable to the Company.
Therefore, the provisions of clause 3(xv) of the Order
b. The Company has not made any preferential
are not applicable to the Company.
allotment or private placement of shares or
convertible debentures (fully, partially or optionally) (xvi) a. The Company is not required to be registered under
during the year. Therefore, the provisions of section 45-IA of the Reserve Bank of India Act,
clause 3(x)(b) of the Order are not applicable to 1934. Therefore, the provisions of clause 3(xvi)(a)
the Company. of the Order are not applicable to the Company.
(xi) a. Based upon the audit procedures performed for b. The Company has conducted Housing Finance
the purpose of reporting the true and fair view of activities during the year with a valid Certificate of
the Standalone Financial Statements and according Registration (CoR) from the National Housing Bank.
to the information and explanations given to us,
c. The Company is not a Core Investment Company
we have neither come across any instance of
(CIC) as defined in the regulations made by the
fraud by the Company or on the Company noticed
Reserve Bank of India. Therefore, the provisions of
or reported during the year nor have we been
clause 3(xvi)(c) of the Order are not applicable to
informed of any such case by the management
the Company.
except frauds discovered by the Company
aggregating H5.44 Cores committed by customers d. According to the representations given by the
by falsification of documents. management, there is no CIC as part of the Group.
Therefore, the provisions of clause 3(xvi)(d) of the
b. According to the information and explanation given
to us and to the best of our knowledge, no report
under subsection (12) of section 143 of the Act has (xvii) The Company has not incurred cash losses in current
been filed in Form ADT-4 as prescribed under Rule year and in immediately preceding financial year.
13 of Companies (Audit and Auditors) Rules, 2014 Therefore, the provisions of clause 3(xvii) of the Order
with the Central Government, during the year and are not applicable to the Company.
upto the date of this report.
(xviii) There was no resignation of statutory auditors during
c. We have taken into consideration the whistle the year. Therefore, the provisions of clause 3(xviii) of
blower complaints received by the Company during the Order are not applicable to the company.
the year and provided to us, when performing
(xix) According to the information and explanations given to
our audit.
us and on the basis of the financial ratios,ageing and
(xii) The Company is not a Nidhi Company. Therefore, the expected dates of realization of financial assets and
provisions of clause 3(xii) of the Order are not applicable payment of financial liabilities, assets liability maturity
to the Company. (ALM) pattern and other information accompanying the
Standalone Financial Statements, our knowledge of the
(xiii) In our opinion and according to the information and
Board of Directors and management plans and based
explanations given to us, all transactions with the related
on our examination of the evidence supporting the
parties are in compliance with sections 177 and 188 of
assumptions, nothing has come to our attention, which
the Act, where applicable, and the requisite details have
causes us to believe that any material uncertainty exists
been disclosed in the standalone financial statements, as
as on the date of the audit report that the Company
required by the applicable Indian Accounting Standards.
is not capable of meeting its liabilities existing at the
(xiv) a. Based on our examination, the Company has an date of balance sheet as and when they fall due within
adequate internal audit system commensurate with a period of one year from the balance sheet date. We,
the size and nature of its business; however, state that this is not an assurance as to the
future viability of the Company. We further state that
b. We have considered, the internal audit reports
our reporting is based on the facts up to the date of
of the Company issued till date for the period
the audit report and we neither give any guarantee nor
under audit.
any assurance that all liabilities falling due within a
period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due.

(xx) (a) There are no unspent amounts towards Corporate (b) In respect of ongoing projects, the Company
Social Responsibility (“CSR”) on other than ongoing has transferred unspent Corporate Social
projects requiring a transfer to a Fund specified Responsibility (CSR) amount, to a Special account
in Schedule VII to the Companies Act, 2013 in before the date of this report and within a period
compliance with second proviso to sub-section of 30 days from the end of the financial year in
(5) of Section 135 of the said Act. Accordingly, compliance with the provision of section 135(6) of
reporting under clause 3(xx)(a) of the Order is not the Act.
applicable for the year.


Partner Partner
Date: May 18, 2023 Date: May 18, 2023

Annexure B to Independent Auditor’s Report of even date to the members of PNB Housing Finance Limited on the
Standalone Financial Statements for the year ended March 31, 2023 (Referred to in paragraph 2(f) of our report
on the other legal and regulatory requirements)
We have audited the internal financial controls with reference AUDITOR’S RESPONSIBILITY
to Standalone Financial Statements of PNB Housing Finance Our responsibility is to express an opinion on the Company’s
Limited (“the Company”) as of March 31, 2023 in conjunction internal financial controls with reference to Standalone
with our audit of the Standalone Financial Statements of the Financial Statements based on our audit. We conducted
Company for the year ended on that date. our audit in accordance with the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting (the
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL “Guidance Note”) and the Standards on Auditing, issued
FINANCIAL CONTROLS by Institute of Chartered Accountants of India and deemed
The Company’s management is responsible for establishing to be prescribed under section 143(10) of the Companies
and maintaining internal financial controls based on Act, 2013, to the extent applicable to an audit of internal
the internal control over the financial reporting criteria financial controls, both applicable to an audit of internal
established by the Company considering the essential financial controls, both issued by the Institute of Chartered
components of internal control stated in the Guidance Note on Accountants of India. Those Standards and the Guidance Note
Audit of Internal Financial Controls over Financial Reporting require that we comply with ethical requirements and plan
issued by the Institute of Chartered Accountants of India. and perform the audit to obtain reasonable assurance about
These responsibilities include the design, implementation whether adequate internal financial controls with reference
and maintenance of adequate internal financial controls to Standalone Financial Statements was established and
that were operating effectively for ensuring the orderly maintained and if such controls operated effectively in all
and efficient conduct of its business, including adherence material respects.
to Company’s policies, the safeguarding of its assets, the
Our audit involves performing procedures to obtain audit
prevention and detection of frauds and errors, the accuracy
evidence about the adequacy of the internal financial controls
and completeness of the accounting records, and the timely
system with reference to Standalone Financial Statements
preparation of reliable financial information, as required
and their operating effectiveness. Our audit of Internal
under the Companies Act, 2013.
Financial Controls with reference to Standalone Financial
Statements included obtaining an understanding of Internal

Financial Controls with reference to Standalone Financial authorizations of management and directors of the company;
Statements, assessing the risk that a material weakness and (3) provide reasonable assurance regarding prevention
exists, and testing and evaluating the design and operating or timely detection of unauthorized acquisition, use, or
effectiveness of internal control based on the assessed disposition of the company’s assets that could have a material
risk. The procedures selected depend on the auditor’s effect on the Standalone Financial Statements.
judgement, including the assessment of the risks of material
misstatement of the Standalone Financial Statements, INHERENT LIMITATIONS OF INTERNAL FINANCIAL
whether due to fraud or error. CONTROLS WITH REFERENCE TO STANDALONE
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit Because of the inherent limitations of internal financial
opinion on the Company’s internal financial controls system controls with reference to Standalone Financial Statements,
with reference to Standalone Financial Statements. including the possibility of collusion or improper management
override of controls, material misstatements due to error or
MEANING OF INTERNAL FINANCIAL CONTROLS fraud may occur and not be detected. Also, projections of any
WITH REFERENCE TO STANDALONE FINANCIAL evaluation of the internal financial controls with reference to
STATEMENTS Standalone Financial Statements to future periods are subject
to the risk that the internal financial controls with reference
A Company’s Internal Financial Controls with reference
to Standalone Financial Statements may become inadequate
to Standalone Financial Statements is a process designed
because of changes in conditions, or that the degree of
to provide reasonable assurance regarding the reliability
compliance with the policies or procedures may deteriorate.
of financial reporting and the preparation of Standalone
Financial Statements for external purposes in accordance
OPINION
with generally accepted accounting principles. A company’s
internal financial control with reference to Standalone In our opinion, the Company has, in all material respects,
Financial Statements includes those policies and an adequate internal financial controls with reference to
procedures that (1) pertain to the maintenance of records Standalone Financial Statements and such internal financial
that, in reasonable detail, accurately and fairly reflect the controls with reference to Standalone Financial Statements
transactions and dispositions of the assets of the company; were operating effectively as at March 31, 2023, based on the
(2) provide reasonable assurance that transactions are internal control over financial reporting criteria established
recorded as necessary to permit preparation of Standalone by the Company considering the essential components of
Financial Statements in accordance with generally accepted internal control stated in the Guidance Note on Audit of
accounting principles, and that receipts and expenditures Internal Financial Controls Over Financial Reporting issued by
of the company are being made only in accordance with the Institute of Chartered Accountants of India.


Partner Partner
Date: May 18, 2023 Date: May 18, 2023


STANDALONE BALANCE SHEET
as at March 31, 2023
(J in crore)
As at As at
Particulars Notes
March 31, 2023 March 31, 2022
ASSETS
Financial assets
Cash and cash equivalents 3 3,667.41 4,964.37
Bank balance other than cash and cash equivalents 4 25.16 150.47
Derivative financial instruments 15 660.04 242.25
Receivables 5
Trade receivables - 38.98
Other receivables 0.01 0.04
Loans 6 57,908.53 55,380.74
Investments 7 3,188.02 3,472.02
Other financial assets 8 754.64 673.91
66,203.81 64,922.78
Non-financial assets
Current tax assets (net) 9 251.57 37.55
Deferred tax assets (net) 10 145.55 398.80
Investment property 11 0.52 0.53
Property, plant and equipment 12 66.05 71.33
Right of use assets 12 65.53 60.39
Capital work-in-progress 12.1 0.08 -
Intangible assets under development 12.2 3.08 3.54
Other Intangible assets 13 13.75 17.74
Other non-financial assets 14 55.02 27.81
Assets held for sale 35 - 108.83
601.15 726.52
Total 66,804.96 65,649.30
LIABILITIES AND EQUITY
Liabilities
Financial liabilities
Payables
Trade payables 16
Total outstanding dues of micro enterprises and small enterprises 1.74 -
Total outstanding dues of creditors other than micro enterprises and small 42.73 27.14
enterprises
Other payable
Total outstanding dues of micro enterprises and small enterprises - -
Total outstanding dues of creditors other than micro enterprises and small - -
enterprises
Debt securities 17 3,994.09 6,201.97
Borrowings (other than debt securities) 18 31,174.70 27,715.84
Deposits 19 17,213.96 17,605.13
Subordinated liabilities 20 1,238.35 1,438.18
Other financial liabilities 21 1,943.98 2,546.78
55,609.55 55,535.04
Non-financial liabilities
Provisions 22 17.39 17.12
Other non-financial liabilities 23 225.45 296.60
242.84 313.72
Equity
Equity share capital 24 168.86 168.60
Other equity 25 10,783.71 9,631.94
Total equity 10,952.57 9,800.54
Total 66,804.96 65,649.30
Overview and significant accounting policies 1&2
The accompanying notes are an integral part of the standalone financial statements.
In terms of our report of even date
For T R Chadha & Co LLP For and on behalf of the Board of Directors
Chartered Accountants
FR No.: 006711N/N500028
Neena Goel Girish Kousgi Neeraj Vyas
Partner Managing Director & CEO Director
M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.
FR No.: 302049E
Bimal Kumar Sipani Vinay Gupta Sanjay Jain
Partner Chief Financial Officer Company Secretary
M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi
Date: May 18, 2023

STANDALONE STATEMENT OF PROFIT AND LOSS

for the year ended March 31, 2023
(J in crore)
Particulars Notes Current Year Previous Year
Revenue from operations

Interest income 26 6,172.91 5,792.65
Fees and commission income 27 273.03 239.34
Net gain on fair value changes 28 33.71 109.10
Income on derecognised (assigned) loans 10.90 -
Total revenue from operations 6,490.55 6,141.09
Other income 1.84 4.83
Total income 6,492.39 6,145.92
Expenses
Finance costs 29 3,899.58 4,065.63
Impairment on financial instruments and write-offs 30 691.24 576.38
Employee benefits expenses 31 214.34 180.05
Fees and commission expenses 8.91 9.00
Depreciation, amortisation and impairment 51.23 53.18
Others expenses: 32
- Impairment/loss on assets held for sale 47.65 7.86
- Other expenses 212.63 191.05
Total expenses 5,125.58 5,083.15
Profit before exceptional items & tax 1,366.81 1,062.77
Exceptional items - -
Profit before tax 1,366.81 1,062.77
Tax expense/(credit)
Current tax 33 83.38 242.56
Deferred tax [charge/(credit)] 33 227.16 (1.71)
Profit for the year 1,056.27 821.92
Other comprehensive income/(loss)
A (i) Items that will not be reclassified to profit or loss
Remeasurement (loss)/gain on defined benefit plan (1.31) 0.43
(ii) Tax relating to items that will not be reclassified to profit or loss 0.33 (0.11)
Subtotal (A) (0.98) 0.32
B (i) Items that will be reclassified to profit or loss
Cash flow hedge 103.67 128.69
(ii) Tax relating to items that will be reclassified to profit or loss (26.09) (32.39)
Subtotal (B) 77.58 96.30
Other comprehensive income/(loss) (A+B) 76.60 96.62
Total comprehensive income for the year 1,132.87 918.54
Earnings per equity share (Face value of J10 each fully paid up)
Basic (H) 34 62.62 48.78
Diluted (H) 34 62.56 48.67
Overview and significant accounting policies 1&2
FR No.: 006711N/N500028
M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.
FR No.: 302049E
M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi
Date: May 18, 2023

STANDALONE STATEMENT OF CHANGES IN EQUITY
A. Equity share capital*

As at March 31, 2023
(J in crore)
Changes in Equity Restated balance
Balance as at Change during the Balance as at
Particulars Share Capital due to as at
April 01, 2022 year March 31, 2023
prior period errors April 01, 2022
Equity share capital 168.60 - 168.60 0.26 168.86

(J in crore)
Particulars Share Capital due to as at
*Refer note 24.
B. Other equity*
(J in crore)
Other
Reserves and surplus comprehensive
income
Share Total other
Particulars
application Share option Effective equity
Securities Special Statutory Retained
money outstanding portion of cash
premium reserve reserve earnings
pending account flow hedges
allotment
Balances as at April 01, 2021 - 4,047.90 1,010.76 126.97 73.29 3,656.70 (216.71) 8,698.91
Changes in accounting policy/prior - - - - - - - -
period errors
Restated balance at the beginning of - 4,047.90 1,010.76 126.97 73.29 3,656.70 (216.71) 8,698.91
the year
Profit for the year - - - - - 821.92 - 821.92
Fair value changes on derivatives - - - - - - 96.30 96.30
Remeasurement of net defined - - - - - 0.32 - 0.32
benefit liabilities/assets
Total comprehensive income for - - - - - 822.24 96.30 918.54
the year
Transfer to special reserve# - - 124.00 - - (124.00) - -
Transfer to statutory reserve## - - - 41.00 - (41.00) - -
Premium on shares issued during - 10.82 - - - - - 10.82
the year
Employee stock option exercised - 3.69 - - (3.69) - - -
during the year (Refer Note 24.8)
Share based payment to employees - - - - 3.67 - - 3.67
(Refer Note 24.8 (iv))
Transfer on account of stock option - - - - (17.73) 17.73 - -
lapsed/ expired
Balances as at March 31, 2022 - 4,062.41 1,134.76 167.97 55.54 4,331.67 (120.41) 9,631.94
Changes in accounting policy/prior - - - - - - - -
period errors
the year
Profit for the year - - - - - 1,056.27 - 1,056.27
Remeasurement of net defined - - - - - (0.98) - (0.98)
Total comprehensive income for - - - - - 1,055.29 77.58 1,132.87
the year

STANDALONE STATEMENT OF CHANGES IN EQUITY

(J in crore)
Other
income
Share Total other
Particulars
allotment
Share application money received 0.20 - - - - - - 0.20
during the year
the year
lapsed/ expired
Balances as at March 31, 2023 0.20 4,072.48 1,179.76 334.97 50.01 5,189.12 (42.83) 10,783.71
*Refer Note 25 for nature and the purpose of reserves.
#As per Section 29C(i) of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profit every year to a reserve
before any dividend is declared. For this purpose any Special Reserve created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961
is considered to be an eligible transfer. The Company has transferred an amount of I 45.00 crore (Previous year I 124.00 crore) to Special Reserve in
terms of Section 36(1) (viii) of the Income Tax Act, 1961.
##The Company has transferred an amount of I167.00 crore (Previous year H41.00 crore) to Statutory Reserve u/s 29C of the National Housing Bank
Act, 1987.

FR No.: 006711N/N500028
M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.
FR No.: 302049E
M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi
Date: May 18, 2023

STANDALONE STATEMENT OF CASH FLOW
(J in crore)
Particulars Current Year Previous Year
Cash flow from operating activities

Adjustment to reconcile profit before tax to net cash flows:
Depreciation and amortisation 51.23 53.18
Net loss on derecognition of property, plant and equipment 0.19 0.19
Impairment on financial instruments (1,046.96) 14.35
Net loss on financial instruments at fair value through profit and loss 2.80 10.06
Share based payment expense 11.95 3.67
Effective interest rate on financial assets (48.37) 33.50
Effective interest rate on financial liabilities 15.78 109.64
Interest expenses 3,893.41 4,059.12
(Income)/unwinding on derecognised (assigned) loans (84.39) 232.13
Restructure loss/(gain) on financial assets 4.86 (13.93)
Interest on leases including modification gain/(loss) 5.67 6.51
Advances written-off 2.23 -
Bad debts written-off 1,738.20 562.03
4,594.25 5,078.31
Operating profits before changes in working capital 5,961.06 6,141.08
Working Capital changes
Increase/(decrease) in trade payables 17.33 (0.66)
Decrease in provisions (1.04) (0.42)
(Decrease)/increase in other financial liabilities (519.76) 203.97
(Decrease)/increase in non-financial liabilities (71.15) 47.36
(Increase)/decrease in loans at amortised cost (3,081.78) 4,722.27
Decrease/(increase) in receivables 39.05 (23.99)
Decrease in other financial assets 3.03 0.53
(Increase)/decrease in other non-financial assets (27.21) 7.82
Proceeds from sale of asset held for sale 61.18 19.79
Decrease/(increase) in bank balance other than cash and cash equivalents 125.31 (150.40)
(3455.04) 4,826.27
Cash generated from/(used in) operations before adjustments for interest and taxes paid 2506.02 10,967.35
Interest Paid (3,980.99) (4,405.19)
Taxes paid (net of refunds) (297.07) (345.81)
Net cash (used in)/generated from operating activities (1772.04) 6,216.35
Cash flow from investing activities
Purchase of property, plant and equipment and other intangible assets (12.74) (13.97)
Capital work-in-progress and intangible assets under development (net) (1.85) (1.16)
Proceeds from derocognition of property, plant and equipment and other intangible assets 0.17 0.13
Investments (net) 188.05 (1,461.23)
Net cash generated from/(used in) investing activities 173.63 (1,476.23)

STANDALONE STATEMENT OF CASH FLOW

(J in crore)
Cash flow from financing activities*

Proceeds from
Debt securities and subordinated liabilities 149.99 455.00
Borrowings from banks 17,771.75 19,648.26
Deposits (net) (394.80) 903.21
Commercial paper 50.00 -
Repayment of
Debt securities and subordinated liabilities (2,560.00) (4,673.00)
Borrowings from banks (14,636.84) (21,920.17)
Commercial paper (50.00) (1,125.00)
Lease Liability (35.84) (31.64)
Proceeds from issue of share capital including securities premium 7.21 11.15
Net cash generated from/(used in) financing activities 301.47 (6,732.19)
Net changes in cash & cash equivalents (1,296.94) (1,992.07)
Cash and cash equivalents at the beginning of the year 4,914.36 6,906.43
Cash and cash equivalents at the end of the year 3,617.42 4,914.36
Net (decrease)/increase of cash & cash equivalents during the year (1,296.94) (1,992.07)
Components of cash and cash equivalents
Cash on hand 1.49 1.12
Balances with banks in current accounts 558.31 511.65
Bank deposit with maturity of less than 3 months 3,107.61 4,451.60
Stamps on hand 0.00 0.00
Less: Overdraft facility against term deposits (as per note 18 to the financial statements) (49.99) (50.01)
3,617.42 4,914.36
*Refer Note no. 44 for change in liabilities arising from financing activities.
Note: Figures in bracket denotes application of cash.

FR No.: 006711N/N500028
M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.
FR No.: 302049E
M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi
Date: May 18, 2023

NOTES TO STANDALONE FINANCIAL STATEMENTS
1. OVERVIEW The standalone financial statements are presented in Indian

Rupees (H) which is the functional and presentation currency
1.1. Overview of the Company and all values are rounded to the nearest
PNB Housing Finance Limited (‘PNBHFL’, ‘the Company’) crore with two decimals, except when otherwise indicated.
was incorporated on November 11, 1988. The Company is
Balance sheet analysis regarding recovery or settlement
primarily engaged in the business of providing loans to
within 12 months after the reporting date and more than 12
individuals and corporate bodies for purchase, construction,
months after the reporting date is presented in note 45.
repair and up-gradation of houses. It also provides loans
for commercial space, loan against property and loan for Accounting policies have been consistently applied except
purchase of residential plots. The Company is deposit taking where a newly issued Ind AS is initially adopted or a revision
Housing Finance Company registered with National Housing to an existing Ind AS requires a change in the accounting
Bank (NHB) under Section 29A of the National Housing Bank policy hitherto in use.
Act, 1987. The Company is listed on BSE Limited and National
Stock Exchange of India Limited. The Company’s registered 2. SIGNIFICANT ACCOUNTING POLICIES
office is at 9th floor, Antriksh Bhawan, 22, K.G. Marg, New
Delhi -110001. 2.1. Use of estimates, judgements and assumptions
The preparation of financial statements in conformity with Ind
These standalone financial statements are approved and
AS requires the management to make judgments, estimates
adopted by the Board of Directors of the Company in their
and assumptions that affect the reported amounts of
meeting held on May 18, 2023. However, the shareholders
revenues, expenses, assets and liabilities and the disclosure
have the power to amend the financial statements after issue.
of contingent liabilities, at the end of the reporting year.
Although these estimates are based on the management’s
1.2. Statement of Compliance and basis of preparation
best knowledge of current events and actions, uncertainty
and presentation
about these assumptions and estimates could result in the
The standalone financial statements are prepared in outcomes requiring a material adjustment to the carrying
accordance with provision contained in section 129 of the amounts of assets or liabilities in future periods. Estimates
Companies Act, 2013, read with Division III of Schedule III as and underlying assumptions are reviewed on an ongoing
amended from time to time. The Statement of Cash Flows has basis. Revisions to the accounting estimates are recognised in
been prepared and presented as per Ind AS 7 “Statement of the period in which the estimates are known or materialised.
Cash Flows”.
Some of the judgements, which have a significant risk of
The standalone financial statements have been prepared causing a material adjustment to the carrying amounts of
under the historical cost convention on accrual basis except assets and liabilities are:
where quantum of accruals cannot be ascertained with
reasonable certainty. Following are measured on each a) Business model assessment
reporting date:
Classification and measurement of financial assets
− Certain financial assets and liabilities (including derivative depends on the results of the solely payments of
instruments) that is measured at fair value. principal and interest (SPPI) and the business model
test. The Company determines the business model at
− Defined benefit liability/(assets): present value of defined
a level that reflects how groups of financial assets are
benefit obligation less fair value of plan assets.
managed together to achieve a particular business
− Financial instrument - measured at fair value. objective. This assessment includes judgement
reflecting all relevant evidence including how the
The standalone financial statements comply in all material
performance of the assets is evaluated and measured,
aspects with the Indian Accounting Standards (Ind AS) as per
the risks that affect the performance of the assets and
the Companies (Indian Accounting Standards) Rules, 2015
how these are being managed. The Company monitors
as amended from time to time, notified under section 133
financial assets on a continuous basis to assess
of the Companies Act, 2013 and the relevant provisions of
whether the business model for which the financial
the National Housing Bank Act, 1987 as amended from time
assets are held continues to be appropriate and if it
to time and the Non-Banking Financial Company–Housing
is not appropriate whether there has been a change
Finance Company (Reserve Bank) Directions, 2021 (‘RBI
in business model and so a prospective change to the
Directions’) as amended from time to time and the RBI
classification of the assets.
circular DOR.CRE.REC. No.60/03.10.001/2021-22 dated
October 22, 2021, on “Scale Based Regulation (SBR): A
Revised Regulatory Framework for NBFCs


b) Fair value of financial instruments remote, or probable, but a reliable estimate cannot be
The fair value of financial instruments is the price that made, a contingent liability is disclosed for the same.
would be received upon selling of an asset or paid
upon transfer of a liability in an orderly transaction f) Defined benefit plans
in the principal (or most advantageous) market at the The cost of the defined benefit gratuity plan and the
measurement date under current market conditions present value of the gratuity obligation are determined
(i.e. an exit price) regardless of whether that price is using actuarial valuations. An actuarial valuation
directly observable or estimated using another valuation involves making various assumptions that may differ
technique. When the fair values of financial assets and from actual developments in the future. These include
financial liabilities recorded in the balance sheet cannot the determination of the discount rate, future salary
be derived from active markets, they are determined increases and mortality rates. Due to the complexities
using a variety of valuation techniques that include the involved in the valuation and its long-term nature, a
use of valuation models. The inputs to these models defined benefit obligation is highly sensitive to changes
are taken from observable markets where possible, in these assumptions. All assumptions are reviewed at
but where this is not feasible, estimation is required each reporting date.
in establishing fair values. Judgements and estimates
include considerations of liquidity and model inputs g) Deferred tax assets
related to items such as credit risk (both own and The extent to which deferred tax assets can be
counterparty), funding value adjustments, correlation recognised is based on an assessment of the probability
and volatility. of the future taxable income against which the deferred
tax assets can be utilised.
c) Effective Interest Rate (EIR) method
EIR methodology recognises interest income / expense h) Useful life of Property, Plant and Equipment (PPE) and
using a rate of return that represents the best estimate Intangible assets
of a constant rate of return over the expected behavioral The Company reviews its estimate of the useful life of
life of loans given / taken and recognises the effect of PPE and intangible assets at each reporting date, based
potentially different interest rates at various stages and on the expected utility of the PPE and intangible assets.
other characteristics of the product life cycle (including Uncertainties in these estimates relate to technical and
prepayments, penalty interest and charges). economic obsolescence that may change the utility
This estimation, by nature, requires an element of of PPE and intangible assets. In case of a revision of
judgement regarding the expected behavior and life- useful life, the unamortised depreciable amount is
cycle of the instruments, as well as expected changes charged over the remaining useful life of the PPE and
to interest rates and other fee income/expense that are intangible assets.
integral parts of the instrument.
i) Share-Based Payments
d) Impairment of financial asset The Company measures the cost of equity-settled
The measurement of impairment losses across all transactions with employees using Black-Scholes Model
categories of financial assets requires judgement, in to determine the fair value of the liability incurred on
particular, the estimation of the amount and timing the grant date. Estimating fair value for share-based
of future cash flows and collateral values when payment transactions requires determination of the most
determining impairment losses and the assessment of a appropriate valuation model, which is dependent on the
significant increase in credit risk. These estimates are terms and conditions of the grant.
driven by a number of factors, changes in which can This estimate also requires determination of the most
result in different levels of allowances (Refer note 2.21). appropriate inputs to the valuation model including the
expected life of the share option, volatility and dividend
e) Provisions and other contingent liabilities yield and making assumptions about them.
The Company operates in a regulatory and legal
environment that, by nature, has a heightened element 2.2 Cash and cash equivalents
of litigation risk inherent to its operations. Cases where Cash and cash equivalent comprises cash/ stamp on
Company can reliably measure the outflow of economic hand, demand deposits and time deposits with original
benefits in relation to a specific case and considers such maturity of less than three months from the date of
outflows probable, it recognises a provision against the acquisition, highly liquid investments that are readily
same. Where the probability of outflow is considered convertible in the known amounts of cash and which

are subject to insignificant risk of change in value, debit then whole of the interest spread and net servicing
balance in cash credit account. fees (over the expected life of the asset) is recognised
at present value on the date of derecognition itself as
Time deposits held with bank, with original maturity
interest-only strip / net servicing fees receivable and
of more than three months but less than twelve
correspondingly recognised as profit on derecognition of
months is a part of bank balance other than cash and
financial asset.
cash equivalents.
For the purpose of the statement of cash flow, cash and d) Fees and commission income
cash equivalents consists of cash at banks and on hand Fees and commissions income i.e. login fee, penal
and short term deposits, as defined above. interest on defaults, pre-payment / other charges,
fees for advertising in offices / website etc. (other
2.3 Revenue Recognition than for those items to which Ind AS 109 Financial
Instruments are applicable) is recognised in accordance
a) Interest and related income
with the terms of the relevant contracts / agreements
Interest income for all financial instruments measured and when it is probable that the Company will collect
either at amortised cost or at fair value through other the consideration.
comprehensive income, is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts e) Other income
the estimated future cash payments or receipts over
Income from operating leases are recognised
the expected life of the financial instrument or a shorter
in the statement of profit and loss as per the
period, where appropriate, to the gross carrying
contractual rentals.
amount of the financial asset. The calculation takes into
account all contractual terms of the financial instrument Interest on tax refunds and other claims where quantum
(for example - prepayment options) and includes any of accruals cannot be ascertained with reasonable
discount or premium on acquisition, fees or incremental certainty, are recognised as income only when
costs that are directly attributable and are an integral revenue is virtually certain which generally coincides
part of the EIR, but not future credit losses. with receipts.
The Company calculates interest income by applying Other Income represents income earned from the
the EIR to the gross carrying amount of financial assets activities incidental to the business and is recognised
other than credit-impaired assets. When a financial asset when the right to receive the income is established as
becomes credit-impaired and is, therefore, regarded per the terms of the contract.
as ‘Stage 3’, the Company calculates interest income
by applying the EIR on net amount (i.e. gross carrying 2.4 Property, plant and equipment (PPE) and
amount less allowance for expected credit loss) . If the Intangible assets
financial assets cures and is no longer credit-impaired,
the Company reverts to calculating interest income on a a) PPE
gross basis. PPE are stated at cost (including directly attributable
expenses) less accumulated depreciation and
Interest income on all trading assets measured at fair
impairment losses, if any. Cost includes deemed cost
value through profit and loss (FVTPL) is recognised
which represents the carrying value of PPE recognised
using the contractual interest rate under interest income
as at April 1, 2017 measured as per the previous
and the fair value impact is recognised in net gain / loss
Generally Accepted Accounting Principles (GAAP).The
on fair value changes.
cost of PPE comprises the purchase price (excluding
tax credits availed, if any) and any attributable cost
b) Dividend income
of bringing the asset to its working condition for its
Dividend income is recognised when the Company’s intended use. Subsequent expenditure related to PPE
right to receive the payment is established, it is probable are capitalised only when it is probable that future
that the economic benefits associated with the dividend economic benefits associated with these will flow to the
will flow to the entity and the amount of the dividend Company and the cost of item can be measured reliably.
can be measured reliably. This is generally when Other repairs and maintenance costs are expensed off
shareholders approve the dividend. as and when incurred.
c) Profit on derecognition of financial assets An item of PPE and any significant part initially
recognised is derecognised upon disposal or when no
When the Company transfers the financial asset in a
future economic benefits are expected from its use.
transfer that qualifies for derecognition in its entirety
Any gain or loss arising on derecognition of the asset


(calculated as the difference between the net disposal Depreciation on sale / derecognition of PPE is provided
proceeds and the carrying amount of the asset) is for up to the date of sale / derecognition, as the case
included in the statement of profit and loss when the may be.
asset is derecognised.
The residual values, useful lives and methods of
Capital work in progress includes assets which depreciation of PPE are reviewed at each financial year-
are not ready for the intended use at the end of the end and changes (if any) are then treated as changes in
reporting year and is carried at cost including directly accounting estimates.
attributable expenses.
b) Amortisation
b) Intangible assets Intangible assets are amortised over a period of five
Intangible assets acquired separately are measured on years or less on straight-line method except website
initial recognition at cost (excluding tax credits availed, development costs, which are amortised over a period of
if any) and are capitalised only when it is probable three years on a straight-line basis from the date when
that future economic benefits associated with these the assets are available for use or the life whichever
will flow to the Company and the cost of item can be is less.
measured reliably. Cost comprises the purchase price
The amortisation period and the amortisation method for
(excluding tax credits availed, if any) and any attributable
these Intangibles with a finite useful life are reviewed at
cost of bringing the asset to its working condition for
each financial year-end. Changes in the expected useful
its intended use. Subsequent expenditure related to
life or the expected pattern of consumption of future
Intangible assets are capitalised only when it is probable
economic benefits embodied in the asset are accounted
that future economic benefits associated with these
for by changing the amortisation period or methodology,
will flow to the Company and the cost of item can be
as appropriate, which are then treated as changes in
measured reliably. Subsequent to initial recognition,
accounting estimates.
intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment
2.6 Investment Property
losses (if any).
Investment property comprises freehold properties that are
An intangible asset is derecognised upon disposal held to earn rentals or for capital appreciation or both.
or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on Investment properties are measured initially at cost,
derecognition of the asset (calculated as the difference including transaction costs. Subsequent to initial recognition,
between the net disposal proceeds and the carrying investment properties are stated at cost less accumulated
amount of the asset) is included in the statement of depreciation and accumulated impairment loss, if any.
profit and loss when the asset is derecognised. Subsequent expenditure is capitalised to the assets carrying
Intangible assets which are not ready for the intended amount only when it is probable that future economic benefit
use at the end of the reporting year are disclosed as associated with the expenditure will flow to the Company and
Intangible assets under development. the cost of the item can be measured reliably. All other repair
and maintenance costs are recognised in statement of profit
2.5 Depreciation and amortisation or loss as incurred.
Investment properties are depreciated using the straight-

a) Depreciation
line method over their estimated useful lives prescribed in
Depreciation on PPE is provided on straight-line method Schedule II of the Companies Act, 2013.
as per the useful life prescribed in Schedule II to the
Companies Act, 2013, except for networking equipment Though the Company measures investment property using
and mobile phone instruments that are depreciated over cost based measurement, the fair value of investment
a period of five years and three years respectively based property is disclosed in the notes. Fair values are determined
on technical evaluation. Leasehold improvements are based on an annual evaluation performed by a registered
amortised over the period of five years however, where independent valuer.
the lease term is less than five years amortisation is Investment properties are derecognised either when they
restricted to the underlying lease term. have been disposed off or when they are permanently
All PPE individually costing H5,000 or less are fully withdrawn from use and no future economic benefit is
depreciated in the year of purchase. expected from their disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is
Depreciation on additions to PPE is provided on a pro- recognised in profit or loss in the period of derecognition.
rata basis from the date the asset is available for use.

2.7 Foreign currency In calculating the present value of lease payments, the
Transactions in foreign currencies are initially recorded by Company uses its incremental borrowing rate at the lease
the Company at their respective functional currency spot commencement date because the interest rate implicit in the
rates at the date the transaction first qualifies for recognition. lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect
Foreign currency denominated monetary assets and liabilities the accretion of interest and reduced for the lease payments
are translated at the functional currency spot rates of made. In addition, the carrying amount of lease liabilities is
exchange at the reporting date and exchange gains and losses remeasured if there is a modification, a change in the lease
arising on settlement and restatement are recognized in the term, a change in the lease payments or a change in the
statement of profit and loss except for differences arising on assessment of an option to purchase the underlying asset.
cash flow hedges.
Short-term leases and leases of low-value assets - The
Non–monetary items that are measured at historical cost in a Company applies the short-term lease recognition exemption
foreign currency are translated using the spot exchange rates to its short-term leases (i.e., those leases that have a lease
as at the date of initial recognition. term of 12 months or less from the commencement date
and do not contain a purchase option). It also applies the
2.8 Leases lease of low-value assets recognition exemption to leases of
The Company assesses at contract inception whether a office equipment that are considered to be low value. Lease
contract is, or contains, a lease. That is, if the contract payments on short-term leases and leases of low-value
conveys the right to control the use of an identified asset for a assets are recognised as expense.
period of time in exchange for consideration.
Company as a lessor
Company as a lessee The Company as an intermediate lessor, accounts for the
The Company applies a single recognition and measurement head lease and the sublease as two separate contracts.
approach for all leases, except for short-term leases and The sub-lease is classified as a finance or operating lease
leases of low-value assets. The Company recognises lease by reference to the right-of-use asset arising from the
liabilities to make lease payments and right-of-use assets head lease.
representing the right to use the underlying assets.
2.9 Borrowing costs
The Company determines the lease term as the non-
cancellable term of the lease, together with any periods Borrowing costs consists of interest and other cost that the
covered by an option to extend the lease if it is reasonably Company incurred in connection with the borrowing of funds.
certain to be exercised, or any periods covered by an option Borrowing costs charged to the Statement of Profit and Loss
to terminate the lease, if it is reasonably certain not to on the basis of effective interest rate method.
be exercised.
2.10 Impairment of non-financial assets
Right-of-use assets - The Company recognises right-of-
The carrying amount of assets is reviewed at each reporting
use assets at the commencement date of the lease (i.e.,
date. If there is any indication of impairment based on
the date the underlying asset is available for use). Right-
internal/external factors, an impairment loss is recognised
of-use assets are measured at cost, less any accumulated
in the statement of profit and loss wherever the carrying
depreciation and impairment losses (if any), and adjusted for
amount of an asset exceeds its recoverable amount.
any remeasurement of lease liabilities. The cost of right-of-
use assets includes the amount of lease liabilities recognised, After impairment, depreciation/amortisation is provided on
initial direct costs incurred and lease payments made at or the revised carrying amount of the asset over its remaining
before the commencement date less any lease incentives useful life.
received. Right-of-use assets are depreciated on a straight-
If at the reporting date there is an indication that previously
line basis over the lease term.
assessed impairment loss no longer exists, the recoverable
Lease liability - At the commencement date of the lease, amount is reassessed and the asset is reflected at the
the Company recognises lease liabilities measured at the recoverable amount subject to maximum of depreciable
present value of lease payments to be made over the lease historical cost.
term. The lease payments include fixed payments less
any lease incentives receivable. Variable lease payments 2.11 Provisions
that do not depend on an index or a rate are recognised as Provisions are recognised when the Company has a present
expenses (unless they are incurred to produce inventories) obligation (legal or constructive) as a result of a past event
in the period in which the event or condition that triggers the and it is probable that an outflow of resources embodying
payment occurs. economic benefits will be required to settle the obligation


and a reliable estimate can be made of the amount of valuation at each year-end using projected unit
the obligation. credit method.
Re-measurements, comprising of actuarial gains and

2.12 Contingent liabilities, Contingent assets and
losses, excluding amounts included in net interest on
Commitments
the net defined benefit liability, the effect of the asset
The Company does not recognise a contingent liability but ceiling, and the return on plan assets (excluding amounts
discloses its existence in the financial statements. included in net interest on the net defined benefit
a) Contingent liability is disclosed in case of – liability), are recognised immediately in the balance
sheet with a corresponding debit or credit to retained
− A present obligation arising from past events, when earnings through OCI in the period in which they occur.
it is not probable that an outflow of resources will be Re-measurements are not reclassified to profit or loss in
required to settle the obligation. subsequent periods.
− A present obligation arising from past events, when Past service costs are recognised in the statement of
no reliable estimate is possible. profit and loss on the earlier of:
− A possible obligation arising from past events, unless − The date of the plan amendment or curtailment, and
the probability of outflow of resources is remote.
− The date that the Company recognises related
Contingent liabilities are reviewed at each balance restructuring costs.
sheet date.
The Company recognises the following changes in the
b) Contingent assets are not recognised in the net defined benefit obligation as an employee benefits
financial statements. expense in the statement of profit and loss:
c) Commitments are future liabilities for contractual − Service costs comprising current service costs, past-
expenditure and is disclosed in case of – service costs, gains and losses on curtailments and
− Estimated amount of contracts remaining to be non-routine settlements; and
executed on capital account and not provided for; − Net interest expense or income
− Other non-cancellable commitments, if any, to the
extent they are considered material and relevant in b) Short term and other long term employee benefits
the opinion of management. A liability is recognised for benefits to employees in
respect of wages and salaries, annual leave, sick leave
2.13 Employee Benefits and short-term employee benefits in the year the related
service is rendered. The undiscounted amount of short-
a) Retirement and other employee benefits term employee benefits expected to be paid in exchange
for the services rendered by employees are recognised
Defined contribution plan
during the year when the employees render the service.
Retirement benefit in the form of provident fund These benefits include performance incentive and
and Employee State Insurance Scheme is a defined compensated absences, which are expected to occur
contribution scheme. The Company has no obligation, within twelve months after the end of the period in
other than the contribution payable to the provident fund which the employee renders the related service.
and Employee State Insurance scheme. The Company
recognises contribution payable to the provident fund In case of accumulated compensated absences, when
and Employee State Insurance scheme as an expense, employees render the services that increase their
when an employee renders the related service. If the entitlement of future compensated absences and
contribution payable to the scheme for service received liabilities recognised in respect of other long-term
before the balance sheet date exceeds the contribution employee benefits are measured at the present value
already paid, the deficit payable to the scheme is of the estimated future cash outflows expected to be
recognised as a liability after deducting the contribution made by the Company in respect of services provided by
already paid. employees up to the reporting date.
Defined Benefit Plan c) Share based payments

The Company has defined benefit plans as Compensated The Company operates a number of Employee Stock
absences and Gratuity for all eligible employees, the Option Scheme/ Restricted stock units (‘the Scheme’)
liability for which is determined based on actuarial which provides for the grant of options to acquire equity
shares of the Company to its employees. The options

granted to employees vest in a graded manner and these Deferred tax liabilities are recognised for all taxable
may be exercised by the employees within a specified temporary differences.
period. These equity-settled share based payments to
Deferred tax assets are recognised for all deductible
employees are measured at the fair value of the equity
temporary differences, the carry forward of unused
instruments at the grant date.
tax credits and any unused tax losses. Deferred tax
The fair value determined at the grant date of the assets are recognised to the extent that it is probable
equity-settled share based payments is expensed on that taxable profit will be available against which
a straight line basis over the vesting period, based on the deductible temporary differences, and the carry
the Company’s estimate of equity instruments that will forward of unused tax credits and unused tax losses can
eventually vest, with a corresponding increase in equity be utilised.
(Share option outstanding account). The fair value of
The carrying amount of deferred tax assets is reviewed
options is estimated using valuation techniques, which
at each reporting date and reduced to the extent that it
incorporate exercise price, term, risk-free interest rates,
is no longer probable that sufficient taxable profit will
the current share price, its expected volatility etc.
be available to allow all or part of the deferred tax asset
At the end of each reporting period, the Company to be utilised. Unrecognised deferred tax assets are
revises its estimate of the number of equity instruments re-assessed at each reporting date and are recognised
expected to vest. The impact of the revision of the to the extent that it has become probable that future
original estimates, if any, is recognised in statement taxable profits will allow the deferred tax asset to
of profit and loss such that the cumulative expenses be recovered.
reflects the revised estimate, with a corresponding
Deferred tax assets and liabilities are measured at the
adjustment to the share option outstanding account.
tax rates that are expected to apply in the year when
The dilutive effect of outstanding options is reflected as the asset is realised or the liability is settled, based
additional share dilution in the computation of diluted on tax rates (and tax laws) that have been enacted or
earnings per share. substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit

2.14 Taxes
and loss is recognised outside profit and loss (either in
Taxes on income other comprehensive income or in equity). Deferred tax
items are recognised in correlation to the underlying
Tax expense comprises current and deferred tax.
transaction either in OCI or directly in equity.
a) Current tax Deferred tax assets and deferred tax liabilities are offset
Current tax assets and liabilities are measured at the if a legally enforceable right exists to set off current tax
amount expected to be recovered from or paid to the assets against current tax liabilities and the deferred
taxation authorities in accordance with Income Tax Act, taxes relate to the same taxable entity.
1961, Income Computation and Disclosure Standards and
other applicable tax laws. The tax rates and tax laws Goods and services input tax credit
used to compute the amount are those that are enacted Goods and Services tax input credit is recognised in the
or substantively enacted, at the reporting date. period in which the supply of goods or service received
is recognised and the conditions to avail the credit are
Current tax relating to items recognised outside profit
fulfilled as per the underlying law.
and loss is recognised outside profit and loss (either in
other comprehensive income or in equity). Current tax
2.15 Earnings per share
transaction either in OCI or directly in equity. Basic earnings per share are calculated by dividing the net
profit or loss for the year attributable to equity shareholders
Current tax assets and liabilities are offset if a legally by the weighted average number of equity shares outstanding
enforceable right exists to set off the recognised during the period.
amounts, and it is intended to realise the asset and settle
the liability on a net basis or simultaneously. For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
b) Deferred tax shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
Deferred tax is provided on temporary differences at
all dilutive potential equity shares except where the result
the reporting date between the tax bases of assets
would be antidilutive.
and liabilities and their carrying amounts for financial
reporting purposes.


2.16 Financial instruments losses arising from impairment are recognised in the
A financial instrument is any contract that gives rise to a statement of profit and loss.
financial asset of one entity and a financial liability or equity
instrument of another entity. Financial assets (debt instruments) at FVTOCI
Financial asset (debt instruments) is classified as at the
a) Financial Assets FVTOCI if both of the following criteria are met:
Initial recognition and measurement i) The objective of the business model is achieved
both by collecting contractual cash flows and
Financial assets, with the exception of loans and
selling the financial assets, and
advances to customers, are initially recognised on the
trade date, i.e. the date that the Company becomes a ii) The asset’s contractual cash flows represent SPPI.
party to the contractual provisions of the instrument.
Financial assets included within the above category
Loans and advances to customers are recognised when
are measured initially as well as at each reporting date
funds are disbursed to the customers. The classification
at fair value. Fair value movements are recognised in
of financial assets at initial recognition depends on
the other comprehensive income (OCI). However, the
their purpose, characteristics and the intention of the
Company recognises interest income, impairment losses
management’s while acquiring the same. All financial
or reversals and foreign exchange gain or loss in the
assets measured at fair value through profit or loss
profit and loss. On derecognition of the asset, cumulative
(FVTPL) are recognised initially at fair value. Financial
gain or loss previously recognised in OCI is reclassified
assets measured at amortised cost or at fair value
from the equity to profit and loss. Interest earned whilst
through other comprehensive income (FVTOCI) is
holding FVTOCI debt instrument is reported as interest
recorded at fair value plus transaction costs that are
income using the EIR method.
attributable to the acquisition of that financial asset.
Trade receivable that does not contain a significant
Financial asset at FVTPL
financing component are measured at transaction price.
Financial asset which does not meet the criteria for
Classification and subsequent measurement categorisation as at amortised cost or as FVTOCI, is
classified as at FVTPL. Financial assets classified under
For purposes of subsequent measurement, financial
FVTPL category are measured at fair value with all
assets are classified in three categories:
changes recognised in the statement of profit and loss.
− Financial asset at amortised cost
b) Financial liabilities
− Financial asset (debt instruments) at FVTOCI
Financial liabilities are classified and measured
− Financial asset at FVTPL at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for
Financial asset at amortised costs trading or it is designated as on initial recognition to be
Financial asset is measured at the amortised cost if both measured at FVTPL. All financial liabilities, other than
the following conditions are met: classified at FVTPL, are classified at amortised cost in
which case they are initially measured at fair value, net
i) The asset is held within a business model whose
of transaction costs and subsequently at amortised cost
objective is to hold assets for collecting contractual
using effective interest rate.
cash flows, and
Amortised cost is calculated by taking into account
ii) Contractual terms of the asset give rise on
any fees, commission / brokerage and ancillary costs
specified dates to cash flows that are solely
incurred in relation to the financial liability.
payments of principal and interest (SPPI) on the
principal amount outstanding.
c) Equity instruments
After initial measurement, such financial assets are An equity instrument is any contract that evidences
subsequently measured at amortised cost using the a residual interest in the assets of an entity after
effective interest rate (EIR) method less impairment deducting all of its liabilities. Equity instruments are
(if any). Amortised cost is calculated by taking into recognised at the face value and proceeds received
account any discount or premium on acquisition and in excess of the face value are recognised as
fees received and the costs incurred on acquisition share premium.
of financial asset. The EIR amortisation is included in
interest income in the statement of profit and loss. The

Offsetting a financial asset and a financial liability A cash flow hedge is a hedge of the exposure to variability in
Financial assets and financial liabilities are offset and the net cash flows that is attributable to a particular risk associated
amount is reported in the balance sheet if there is an intention with a recognised asset or liability (such as all or some future
to settle on a net basis, to realize the assets and settle the interest payments on variable rate debt) or a highly probable
liabilities simultaneously. forecast transaction and could affect profit or loss.
For designated and qualifying cash flow hedges, the effective

2.17 Derivative financial instruments portion of the cumulative gain or loss on the hedging
A derivative is a financial instrument or other contract with instrument is initially recognised directly in OCI within equity
all three of the following characteristics: (cash flow hedge reserve). The ineffective portion of the gain
or loss on the hedging instrument is recognised immediately
− Its value changes in response to the change in a specified
in net gain/loss on fair value changes in the profit and
interest rate, financial instrument price, commodity price,
loss statement.
foreign exchange rate, index of prices or rates, credit
rating or credit index, or other variable, provided that, in When the hedged cash flow affects the statement of profit
the case of a non-financial variable, it is not specific to a and loss, the effective portion of the gain or loss on the
party to the contract (i.e. the ‘underlying’). hedging instrument is recorded in the corresponding income
or expense line of the statement of profit and loss. When the
− It requires no initial net investment or an initial net
forecast transaction subsequently results in the recognition
investment that is smaller than what would be required
of a non-financial asset or a non-financial liability, the gains
for other types of contracts expected to have a similar
and losses previously recognised in OCI are reversed and
response to changes in market factors.
included in the initial cost of the asset or liability.
− It is settled at a future date.
When a hedging instrument expires, is sold, terminated,
The Company holds derivative to mitigate the risk of changes exercised, or when a hedge no longer meets the criteria
in exchange rates on foreign currency exposures as well as for hedge accounting, any cumulative gain or loss that has
interest fluctuations. The counterparty for such contracts are been recognised in OCI at that time remains in OCI and
generally banks. is recognised when the hedged forecast transaction is
ultimately recognised in the statement of profit and loss.
Derivatives are recorded at fair value and carried as assets
When a forecast transaction is no longer expected to occur,
when their fair value is positive and as liabilities when their
the cumulative gain or loss that was reported in OCI is
fair value is negative. Changes in the fair value of derivatives
immediately transferred to the statement of profit and loss.
are included in net gain on fair value changes unless hedge
accounting is applied.
2.19 Reclassification of financial assets and liabilities
2.18 Hedge accounting The Company doesn’t reclassify its financial assets
subsequent to their initial recognition, apart from the
The Company makes use of derivative instruments to manage
exceptional circumstances in which the Company acquires,
exposures to interest rate and foreign currency. In order
disposes of, or terminates a business line. Further, whenever
to manage particular risks, the Company applies hedge
there is a change in the business model the underlying
accounting for transactions that meet specified criteria.
affected financial asset are reclassified. Financial liabilities
At the inception of a hedge relationship, the Company has not been reclassified.
formally designates and documents the hedge relationship to
which the Company wishes to apply hedge accounting and 2.20 Derecognition of financial assets and liabilities
the risk management objective and strategy for undertaking
the hedge. The documentation includes the Company’s risk a) Financial Assets
management objective and strategy for undertaking hedge, A financial asset (or, where applicable, a part of a
the hedging/ economic relationship, the hedged item or financial asset or part of a group of similar financial
transaction, the nature of the risk being hedged, hedge ratio assets) is derecognised when the rights to receive
and how the entity will assess the effectiveness of changes in cash flows from the financial asset have expired. The
the hedging instrument’s fair value in offsetting the exposure Company also derecognised the financial asset if it has
to changes in the hedged item’s fair value or cash flows transferred the financial asset and the transfer qualifies
attributable to the hedged risk. Such hedges are expected for derecognition.
to be highly effective in achieving offsetting changes in fair
The Company has transferred the financial asset if and
value or cash flows and are assessed on an ongoing basis
only if, either:
to determine that they actually have been highly effective
throughout the financial reporting periods for which they − It has transferred its contractual rights to receive
were designated. cash flows from the financial asset


Or b) Financial liabilities
− It retains the rights to the cash flows, but has A financial liability is derecognised when the obligation
assumed an obligation to pay the received cash flows under the liability is discharged, cancelled or expires.
in full or in part without material delay to a third party Where an existing financial liability is replaced
under a ‘pass-through’ arrangement by another from the same lender on substantially
different terms or the terms of an existing liability are
Pass-through arrangements are transactions whereby substantially modified, such an exchange or modification
the Company retains the contractual rights to receive is treated as a derecognition of the original liability and
the cash flows of a financial asset (the ‘original asset’), the recognition of a new liability. The difference between
but assumes a contractual obligation to pay those cash the carrying value of the original financial liability and
flows to one or more entities (the ‘eventual recipients’), the consideration paid is recognised in the statement of
when all of the following three conditions are met: profit and loss.
− The Company has no obligation to pay amounts to the
eventual recipients unless it has collected equivalent 2.21 Measurement of Expected Credit Loss (ECL)
amounts from the original asset The Company records allowance for expected credit losses
for all loans, other debt financial assets not held at FVTPL
− The Company cannot sell or pledge the original asset
together with the financial guarantee contracts. Equity
other than as security to the eventual recipients.
instruments are not subject to impairment under Ind AS 109.
− The Company has to remit any cash flows it
The ECL allowance is based on the credit losses expected to
collects on behalf of the eventual recipients without
arise over the life of the asset (the lifetime expected credit
material delay.
loss or LTECL), unless there has been no significant increase
In addition, the Company is not entitled to reinvest such in credit risk (SICR) since origination, in which case, the
cash flows, except for investments in cash or cash allowance is based on the 12 months’ expected credit loss
equivalents including interest earned, during the period (12mECL).
between the collection date and the date of required
remittance to the eventual recipients. Default
A transfer only qualifies for derecognition if either: Classification of default is based on the regulatory definition
of Non-Performing Assets (NPA). Our regulator i.e. Reserve
− The Company has transferred substantially all the Bank of India defines NPA in Paragraph 8.3.5 in its Master
risks and rewards of the asset Directions – Non Banking Financial Company – Housing
Or Finance (Reserve Bank) Directions, 2021 as exposures where
interest or principal is in arrears for a period of more than
− The Company has neither transferred nor retained ninety days.
substantially all the risks and rewards of the asset,
but has transferred control of the asset. The Company will maintain the definition of default in line
with any amendments made by the regulator from time to
The Company considers control to be transferred if and time through its circulars and through its Master Circular
only if, the transferee has the practical ability to sell published from time to time.
the asset in its entirety to an unrelated third party and
is able to exercise that ability unilaterally and without Staging
imposing additional restrictions on the transfer.
The Company while assessing whether there has been a
When the Company has neither transferred nor SICR of an exposure since origination, it compares the risk
retained substantially all the risks and rewards and of a default occurring over the expected life of the financial
has retained control of the asset, the asset continues instrument as at the reporting date with the risk of default as
to be recognised only to the extent of the Company’s at the date of initial recognition. The Company classifies the
continuing involvement, in which case, the Company also accounts into three stages.
recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that
reflects the rights and obligations that the Company
has retained.

The mechanics and key inputs for classifying the stages and computing the ECL are defined below:
Stage Definition Details Classification

Stage 1 Low credit risk Financial instruments are treated as stage 1 which are not credit impaired and for which the
Days Past Due (DPD) 0-30 credit risk has not increased significantly since initial recognition. The company calculates the
12 month ECL allowance.
Stage 2 DPD 31-90 Financial instruments having SICR since initial recognition (origination of facilities) are classified
Qualitative indicators of SICR under (if not impaired) Stage 2. The Company calculates the lifetime ECL allowance.
Stage 3 90+/ NPA Remaining financial instruments which are credit impaired are treated as Stage 3.
The Company uses regulatory definition as a consistent measure for default across all product
classes.
The Company records an allowance for the LTECLs.
Key components for computation of expected credit loss are: − Loss Given Default (LGD)
− Probability of Default (PD) The Loss given default (LGD) is an estimate of the loss arising
Probability of Default (PD) is one of the three risk in the case where a default occurs at a given time. It is based
components needed to estimate ECL under Ind AS 109. PD on the expected cash flows, including from the realisation of
is defined as the probability that a borrower will be unable any collateral.
to meet their debt obligations over a stipulated time. The PD − Exposure at default (EAD)
estimate incorporates information relevant for assessing the
borrower’s ability and willingness to repay its debts, as well Exposure at default (EAD) is an estimate of the exposure at a
as information about the economic environment in which the future default date, taking into account expected changes in
borrower operates. the exposure after the reporting date, including repayments of
principal and future interests.
The Company uses 12-month PD for stage 1 assets and
lifetime PD for stage 2 and Stage 3 assets.
The Company has adopted the following methodology for ECL computation:
Particulars PD LGD
Retail Loans Multinomial logistic regression Workout Method
Corporate Loans Pluto-Tasche Asset coverage based / Expected Collateral Realisation (ECR)
Broadly, the Company has grouped the portfolio into retail and who are falling in early warning signal pool like customers
corporate category. ECL computation is based on collective who have had experienced delinquency with other financial
approach except for a few large exposure of corporate institutions but remained good with us, customers showing
finance portfolio where loss estimation is based on ECR. very early signs of stress in emerging delinquencies.
Further, given the characteristics and inherent risks of the
various sub categories of the portfolio the Company has used Loss given default
appropriate PD / LGD computation techniques which are The LGD for the retail portfolio is modelled through a workout
detailed below: approach. Historical NPA data of last few years has been
used to arrive at LGD. Loss estimation have been done
Retail loans either basis distressed value or actual/expected recoveries,
depending on resolution strategies already materialised or in
Probability of default
the process of materialisation. Multiple factors are considered
The retail portfolio is segregated into homogenous pools at for determining the LGD including time taken for resolutions,
the product level and occupational level. geographies, collection feedback, underlying security etc.
For ECL computation, basis risk emergence curve movement,
the Company has adopted statistical techniques of Exposure at default
multinomial logistic regression, Observed Default Rate based EAD is the sum of the outstanding principle, interest
on customer classification etc using behaviour and credit outstanding and future interest receivables for the expected
variables. For life time PDs computation, the Company has life of the asset, computed basis the behavioral analysis of the
used survival analysis using Kaplan-Meier technique. Company’s historical experience.
Previous year(s) portfolio behaviour of homogenous pools

is considered for PD estimation. The Company has further
stressed the PDs for such selective group of customers


Corporate loans velocity, asset coverage ratio, resolution team feedback etc.
Basis the review and management overlay, the Company
Probability of default identifies assets where likelihood of deterioration in credit
PDs for the corporate portfolio are determined by using quality is high and for such assets SICR has been triggered.
external ratings as cohorts along with ever default behavior
of an account in last 12 months (basis external ratings based Incorporation of forward looking information
statistical technique of Pluto-Tasche). PD s are further Ind AS 109 requires entities to model their ECL and apply
stressed basis operational variables like construction forward looking macroeconomic scenarios taking into
variance, sales velocity, resolution team feedback etc. For consideration possibility of favorable, neutral, adverse
life time PDs computation, the Company has used survival and stressed economic conditions. Multiple scenarios are
analysis using Kaplan-Meier technique. required to be applied to the ECL and a probability weighted
ECL is then computed. In order to compute probability
Loss given default weighted ECL considering the impact of COVID-19 several
For LGD estimates, the Company has used ECR approach and macroeconomic variables such as GDP at constant
have applied business logic based on security coverage ratio prices, Housing Price Index (HPI) inflation, Gross national
of existing portfolio. Sensitivity analysis, resolution feedbacks savings, unemployment rate etc. were considered from the
are applied on probability weighted scenarios to compute loss International Monetary Fund (IMF), NHB and RBI websites and
given default. the Company’s historical data were analysed.
A model was then built, and forecasts were generated,

Exposure at Default
and scenario creation carried out to finally arrive at the
EAD is the sum of the outstanding principle, interest final macroeconomic overlay. Identification of relevant
outstanding and future interest receivables for the expected macroeconomic variables was done combining statistical
life of the asset, computed basis the behavioral analysis of the analysis (correlation) and business intuition (sign of
Company’s historical experience. correlation).
Significant increase in credit risk (SICR) The macroeconomic variables (MEVs) of the final model
were used to generate multiple simulations for forecasting
The Company monitors all financial assets that are subject to
under different probabilistic scenarios, i.e., favorable, neutral,
impairment requirements to assess whether there has been
adverse and stress scenarios. Under each scenario, based
a significant increase in credit risk since initial recognition.
on the independent variable forecasts, the forecasted default
If there has been a significant increase in credit risk in the
rates are obtained using the final model relationship between
assets falling in stage 1 then the Company measures the
the default rates and macroeconomic variables. The scenarios
loss allowance over the lifetime of the loan instead of 12
are identified based on the probability of occurrence, i.e.
month ECL.
expected probability of the future economic state. An anchor
variable (GDP) analysis was performed in order to select
Retail Loans:
a particular scenario for future quarters. Accordingly, the
Given the prevalent environment, the qualitative criteria for probability weighted ECL is computed using the likelihood
triggering SICR in retail exposure is: as weights.
i. Those stage 1 loan assets where underlying property is
under construction and expected construction progress 2.22 ECL on financial guarantee contracts
is likely to remain slow based on historical data / ECL on financial guarantee contracts has been computed
market feedback. basis the methodologies defined under note 2.21.
ii. Those stage 1 assets which are restructured under RBI
2.23 Write offs
OTR scheme of Aug 2020 and May 2021 and have shown
higher degree of risk basis their performance with us The Company undertakes write off on a loan, in full or in
and/or with other financial institutions. part, when the amount is construed as irrecoverable after
enforcement of available means of resolution. The authority
Corporate Loans: of write off is vested with committee of senior officials of
the Company. In case the company writes off an asset, the
The Company has its own qualitative assessment criteria
recoveries resulting from the write off activity may result in
comprising various operational and repayment variables like
impairment gains.
construction variance, historical delinquency rates, sales

2.24 Collateral 2.27 Securities premium

The Company is in business of secured lending and all Securities premium is credited:
loans are adequately covered by either residential collateral
− when shares are issued at premium;
or commercial collateral. The collaterals are assessed at
the time of origination and are being re-assessed as and − with the fair value of the stock options which are treated
when required. as expense (if any), in respect of shares allotted pursuant
to Employee Stock Options Scheme
The illustrative factors considered while evaluation of
collateral are liquidity, enforceability, marketability, ease and Securities premium can be utilised only for limited purposes
efficiency in custody and settlement. The Company complies such as issuance of bonus shares or adjustment of share
with local by-laws and relevant jurisdictions to ensure issue expenses, net of tax, as permissible under section
that the collaterals are free from all encumbrances. The 52(2) of the Companies Act, 2013, to the extent of balance
assessment of collateral is undertaken by empanelled team of available and thereafter, the balance portion is charged to the
independent and qualified technical / legal agencies. statement of profit and loss, as incurred.
The Company has specified the maximum loan-to-value ratio
2.28 Assets held for sale
for various types of asset to be accepted as collateral. Such
ratios commensurate with the relative risk of the assets as The Company repossess properties or other assets to settle
prescribed by NHB and provides an adequate buffer against outstanding recoverable and the surplus (if any) post auction
potential losses. is refunded to the obligors. These assets acquired by the
company under SARFAESI Act, 2002 has been classified
On case-to-case basis, the Company may ask for additional as assets held for sale, as their carrying amounts will be
security, which may in the form of guarantee or financial recovered principally through a sale of asset. In accordance
assets or any other real estate assets. with Ind AS 105, the company is committed to sell these
The Company may take actions as provided in the SARFAESI assets and they are measured at the lower of their carrying
Act which enables it to enforce the underlying collateral of amount and the fair value less costs of disposal.
stage 3 assets without court intervention.
2.29 Segment reporting
2.25 Dividend Operating segments are reported in a manner consistent
The Company recognises a liability to make cash distributions with the internal reporting provided to the chief operating
to equity holders when the distribution is authorised and the decision maker (CODM). CODM is responsible for allocating
distribution is no longer at the discretion of the Company. the resources, assess the financial performance and position
Final dividends on shares are recorded as a liability on the of the Company and makes strategic decision. Company’s
date of approval by the Shareholders and interim dividends main business is to provide loans against/for purchase,
are recorded as a liability on the date of declaration by the construction, repairs & renovations of houses/ flats/
Company’s Board of Directors. commercial properties etc. All other activities of the Company
revolve around the main business. As such, there are no
2.26 Unclaimed Deposits separate reportable segment, as per the Operating Segments
(Ind AS 108), notified by the Companies (Accounting
Deposits, which has become overdue but have not been
Standard) Rules, 2015 as amended from time to time.
presented for payment or renewal, are transferred to
unclaimed deposits. Deposit remaining unclaimed for more
2.30 Investment in subsidiaries
than seven years have been transferred to the Investor
Education and Protection Fund (IEPF). Interest for the period Investments in subsidiaries are measured at cost as per Ind
from last maturity date to the date of renewal of unclaimed AS 27 – Separate Financial Statements.
deposits is accounted for during the year of its renewal.


NOTE 3: CASH AND CASH EQUIVALENTS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022

Balance with banks in current accounts 558.31 511.65
Bank deposit with maturity of less than 3 months (Refer Note 3.1) 3,107.61 4,451.60
Total 3,667.41 4,964.37
Note 3.1: Short-term deposits earn interest at the respective short-term deposit rates.
NOTE 4: BANK BALANCE OTHER THAN CASH AND CASH EQUIVALENTS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Bank Deposit (More than 3 months & up to 12 months) (Refer Note 4.1) 25.09 150.40
Earmarked balances with bank (Refer Note 4.2) 0.07 0.07
Total 25.16 150.47
Note 4.1: Bank deposit amounting to ` 25.00 crore has been pledged against the bank guarantee dated April 6, 2023 issued for
Rights Issue of the Company.
Note 4.2: Earmarked balances with bank represents unclaimed dividend on equity shares.
NOTE 5: RECEIVABLES
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Trade receivables
Receivable considered good - Secured - -
Receivable considered good - Unsecured - -
Receivables from related parties - Unsecured (Refer Note 5.2) - 38.98
Receivables which have significant increase in credit risk - -
Receivables – credit impaired - -
- 38.98
Other receivables
Receivable considered good - Unsecured (Refer Note 5.2) 0.01 0.04
0.01 0.04
Less: Provision for impairment - -
Total 0.01 39.02

Note 5.1: Trade Receivables ageing

(J in crore)
Outstanding for following periods from due date of payment
Particulars Not due
Less than 6 months - More than
1-2 years 2-3 years Total
6 months 1 year 3 years
Undisputed trade and other receivables – - 0.01 - - - - 0.01
considered good
Undisputed trade and other receivables – - - - - - - -
which have significant increase in credit risk
credit impaired
Disputed trade and other receivables – - - - - - - -
considered good
Disputed trade and other receivables – which - - - - - - -
have significant increase in credit risk
Disputed trade and other receivables – credit - - - - - - -
impaired
Unbilled trade and other receivables - - - - - - -
(J in crore)
Particulars Not due
Undisputed trade and other receivables – 38.98 0.04 - - - - 39.02
considered good
credit impaired
Disputed trade and other receivables – - - - - - - -
considered good
impaired
Note 5.2: No trade or other receivable are due from directors or other officers of the Company either severally or jointly with
any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director
is a partner, director or member.


NOTE 6: LOANS (AT AMORTISED COST)

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Term Loans 59,341.37 57,939.68

Total Gross 59,341.37 57,939.68
Less: Impairment loss allowance 1,432.84 2,558.94
Total Net 57,908.53 55,380.74
Secured by tangible assets 59,341.37 57,939.68
Total Gross 59,341.37 57,939.68
Total Net 57,908.53 55,380.74
Loans in India
Public Sector - -
Others 59,341.37 57,939.68
Total Gross 59,341.37 57,939.68
Total Net (a) 57,908.53 55,380.74
Loans outside India - -
Less: Impairment loss allowance - -
Total Net (b) - -
Total Net (a+b) 57,908.53 55,380.74
Note 6.1: Detail of loans & advances sanctioned to Directors/ KMP/ Senior officers/ Related Parties.
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Directors and their relatives - -

Entities associated with directors and their relatives - -
KMP /Senior Officers and their relatives 2.65 -
2.65 -
Note 6.2: Loans - Staging analysis#
Analysis of change in gross carrying amount of loans is as follows:

(J in crore)
As at March 31, 2023 As at March 31, 2022
Particulars
Stage 1^ Stage 2 Stage 3 Total Stage 1^ Stage 2 Stage 3 Total
Opening gross carrying amount 51,251.68 1,981.83 4,706.17 57,939.68 56,399.18 3,833.89 2,998.41 63,231.48
Increase in EAD - new asset 14,890.80 14.65 3.19 15038.88 11,190.22 33.72 125.85 11,349.79
originated or purchased / further
increase in existing asset (net)
Asset paid in part or full (excluding (10580.51) (278.98) (636.66) (11496.15) (15,729.45) (252.34) (100.42) (16,082.21)
write off) (net)
Stressed loans transferred to ARC - - (271.74) (271.74) - - - -
Asset derecognised/co-lending (179.79) - - (179.79) - - - -
Asset written off (28.17) (68.36) (1592.98) (1689.51) (13.27) (7.71) (538.40) (559.38)
Transfer to stage 1 883.97 (644.37) (239.60) - 1,639.59 (1,481.06) (158.53) -
Transfer to stage 2 (994.06) 1,142.00 (147.94) - (1,144.39) 1,170.43 (26.04) -
Transfer to stage 3 (179.04) (141.64) 320.68 - (1,090.20) (1,315.10) 2,405.30 -
Closing gross carrying amount 55,064.88 2,005.13 2,271.36 59,341.37 51,251.68 1,981.83 4,706.17 57,939.68

(J in crore)
Particulars
Retail Loans 52,109.19 2,005.13 1,425.44 55,539.75 46,635.90 1,960.45 1,968.12 50,564.47
Total 52,109.19 2,005.13 1,425.44 55,539.75 46,635.90 1,960.45 1,968.12 50,564.47
% of total 93.82% 3.61% 2.57% 100.00% 92.23% 3.88% 3.89% 100.00%
Movement (in %) of loan assets is as follows: Current Year Previous Year

a) Movement of Stage 1:
i) % of loan assets moved out of books by year end 12.16% 16.61%
ii) Residual portfolio either remained in stage 1 or had forward flows
b) Movement of Stage 2:
ii) Residual portfolio either remained in stage 2 or had forward or backward flows
c) Movement of Stage 3:
ii) Residual portfolio either remained in stage 3 or had backward flows
(J in crore)
Particulars
Corporate Loans 2,955.69 - 845.92 3,801.61 4,615.78 21.38 2,738.05 7,375.21
Total 2,955.69 - 845.92 3,801.61 4,615.78 21.38 2,738.05 7,375.21
% of total 77.75% 0.00% 22.25% 100.00% 62.58% 0.29% 37.13% 100.00%

Note 6.3: Expected Credit Loss (ECL) - Staging analysis#

(J in crore)
Particulars
Retail Loans 244.87 254.63 466.66 966.16 283.21 197.35 527.83 1,008.39
Total 244.87 254.63 466.66 966.16 283.21 197.35 527.83 1,008.39
ECL movement as on March 31, 2022 and March 31, 2023

a) The loan assets in stage 2 were 3.61% as on March 31, 2023 as against 3.88% as on March 31,2022. The Company has
applied qualitative SICR criteria owing to which stage 1 assets of H584.70 Crore has moved to stage 2 assets. Pre SICR,
the stage 2 loan assets as on March 31, 2023 would be 2.56% against 2.25% as on March 31, 2022.
b) ECL % POS has increased by 2.63% as on March 31, 2023 in stage 2.
c) Overall ECL % POS have decreased by 25 bps on accounts improvement in Asset quality.



a) The loan assets in stage 2 were 3.88% as on March 31, 2022 as against 5.17% as on March 31, 2021. The Company has
applied qualitative SICR criteria owing to which stage 1 assets of H823.17 crore has moved to stage 2 assets. Pre SICR, the
stage 2 loan assets as on March 31, 2022 would be 2.25% against 3.46% as on March 31, 2021.
b) ECL % POS has decreased by 1.29% as on March 31, 2022 in stage 2 due to transition of stage 2 accounts to stage 3
(as an impact of RBI Circular No. RBI/2021-2022/125 DOR.STR.REC.68/21.04.048/2021-22)
c) Overall ECL % POS have increased by 24 bps on accounts of conservatism approach adopted by the Company.
(J in crore)
Particulars
Corporate Loans 279.95 - 186.73 466.68 300.10 3.07 1,247.38 1,550.55
Total 279.95 - 186.73 466.68 300.10 3.07 1,247.38 1,550.55

a) Stage 1 ECL % of POS increased from 6.50% to 9.47%.
b) The loan assets in stage 2 were decresed to nil as on March 31, 2023 from 0.29% as on March 31, 2022 majorly due to
decreasing corporate portfolio.
c) The Company’s stage 3 asset ratio has decreased from 37.13% as on March 31, 2022 to 22.25% as on March 31, 2023
owing to this ECL has also decreased.

a) Stage 1 ECL % of POS increased from 4.31% to 6.50%. This is due to restructuring cases carrying higher provisions.
b) The loan assets in stage 2 were decresed to 0.29% as on March 31, 2022 from 9.90% as on March 31,2021 majorly due to
shift of stage 2 asset to stage 3.
c) The Company’s stage 3 asset ratio has increased from 13.46% as on March 31, 2021 to 37.13% as on March 31, 2022 owing
to this ECL has also increased.
^The restructuring was done for Stage 1 accounts, total restructured assets were H967 crore (Previous year H1,647
crore), against which provision of H102 (Previous year H204 crore) is held.
#Refer Note 2.21, 2.22, 2.23 and 46.1.
Note 6.4: Loans due from borrowers are secured wholly or partly by any one or all of the below as applicable:
Tangible securities
i) Equitable/ Simple/ English Mortgage of immovable property;
ii) Mortgage of Development Rights/ FSI/ any other benefit flowing from the immovable property;
iii) Hypothecation of rent receivables, cash flow of the project, debt service reserve account, fixed deposit, current and
escrow accounts;
Intangible securities
i) Demand Promissory Note;
ii) Post dated cheques towards the repayment of the debt;
iii) Personal/Corporate Guarantees;
iv) Undertaking to create a security;
v) Letter of Continuity.

NOTE 7: INVESTMENTS
(J in crore)
Particulars At fair value

Amortised cost through profit or Others* Total
loss
Investments in India (a)
Government securities^ (Refer Note 36.31) 2,276.42 413.18 - 2,689.60
Debt securities - 457.67 - 457.67
Subsidiaries
2,50,000 (March 31, 2022: 2,50,000) equity shares of face value - - 0.25 0.25
of H10 each of PHFL Home Loans and Services Limited
50,000 (March 31, 2022: 50,000) equity shares of face value of - - 0.05 0.05
I 10 each of PEHEL Foundation
ACRE-122-Trust - 119.00 - 119.00
Total gross 2,276.42 989.85 0.30 3,266.57
Investments outside India (b) - - - -
Total gross (a+b) 2,276.42 989.85 0.30 3,266.57
Less: Allowance for impairment loss (c) (78.55) - (78.55)
Total net (a+b-c) 2,276.42 911.30 0.30 3,188.02
(J in crore)

loss
Mutual funds - 100.02 - 100.02
Government securities^ (Refer Note 36.31) 2,234.18 1,044.83 - 3,279.01
Subsidiaries
2,50,000 (March 31, 2021: 2,50,000) equity shares of face value - - 0.25 0.25
of H10 each of PHFL Home Loans and Services Limited
50,000 (March 31, 2021: 50,000) equity shares of face value of - - 0.05 0.05
H10 each of PEHEL Foundation
Total gross 2,234.18 1,237.54 0.30 3,472.02
Total gross (a+b) 2,234.18 1,237.54 0.30 3,472.02
Less: Allowance for impairment loss (c) - - - -
Total net (a+b-c) 2,234.18 1,237.54 0.30 3,472.02
Ownership interest
Principle place of
Name of Subsidiaries As at As at
business/operations
March 31, 2023 March 31, 2022
PHFL Home Loans and Services Limited India 100.00% 100.00%

PEHEL Foundation India 100.00% 100.00%
*Others include investment in subsidiaries which have been carried at cost.
Êxpected credit loss provision has not been recognised on investments made in government securities.


NOTE 8: OTHER FINANCIAL ASSETS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Receviable considered good- Unsecured

Receivables on assignment and co-lending of loans (Refer Note 8.1, 8.2 and 8.3) 728.37 647.47
Security deposits 16.79 16.95
Other Receivables 11.34 11.15
Security deposits - credit impaired 0.54 0.11
Total gross (a) 757.04 675.68
Less: Impairment loss allowance (b) 2.40 1.77
Total net (a-b) 754.64 673.91
Note 8.1: During the year ended March 31 2023, the Company has sold some loans and advances measured at amortised cost
under co-lending deals through assignment mode, as a source of finance. As per the terms of deal, the derecognition criteria
as per IND AS 109, including transfer of substantially all the risks and rewards relating to assets being transferred to the buyer
is met and the assets have been derecognised.
The table below summarises the carrying amount of the derecognised financial assets:
(J in crore)
As at As at
Loans and advances measured at amortised cost
March 31, 2023 March 31, 2022
Carrying amount of derecognised financial assets 7,344.70 9,088.02

Since the Company transferred the above financial asset in a transfer that qualified for derecognition in its entirety therefore
the whole of the interest spread and net servicing fees (over the expected life of the assets) is recognised at present value
on the date of derecognition as interest-only strip/net servicing fees receivable (“Receivables on assignment of loan”) and
correspondingly recognised as profit on derecognition of financial assets.
Note 8.2: Includes receivable from related party H0.44 crore (Previous year H0.61 crore).
Note 8.3: Disclosure pursuant to RBI Notification dated September 24, 2021 on “Transfer of Loan Exposures” are given below:
(a) The Company has not acquired any stressed loans or loans not in default during the year ended March 31, 2023 and
March 31, 2022.
(b) Details of loans not in default transferred:
(J in crore)
Assignment through colending
Particulars
Current Year Previous Year
Total amount of loans transferred through colending 179.79 -
Weighted average residual maturity (in months) 220 -
Weighted average holding period (in months) 7 -
Retention of beneficial economic interest 20% -
Coverage of tangible security coverage 100% -
Rating-wise distribution of rated loans unrated -
(c) Details of stressed loans transferred:

(J in crore)
To Asset Reconstruction Companies
Particulars (ARC) - NPA- Retail
Number of accounts 35 -
Aggregate principal outstanding of loan transferred 62.52 -
Weighted average residual tenor of the loans transferred (years) 12.66 -
Net book value of loans transferred (at the time of transfer) 43.76 -
Aggregate consideration 31.26 -
Additional consideration realized in respect of accounts transferred in earlier years - -
Excess provisions reversed to the profit and loss account on account of sale - -

(J in crore)
To Asset Reconstruction Companies
Particulars (ARC) - NPA-Corporate*
Additional consideration realised in respect of accounts transferred in earlier years - -
* Security Receipts are rated as IVR RR2.
NOTE 9: CURRENT TAX (NET)

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Net current tax asset/(liability) at the beginning (a) 37.55 (65.59)
Current tax expense (b) 83.02 290.13
Current tax paid (c) 297.07 345.81
Current tax refund (d) - -
Tax related to earlier years (e) 0.03 (47.46)
Net current tax asset/(liability) at the end (a-b+c-d-e) 251.57 37.55
NOTE 10: DEFERRED TAX ASSETS (NET)

(J in crore)
Other
Deferred Tax Deferred Tax (Charged)/ credit
Particulars comprehensive
Asset Liabilities during the year
income
Depreciation on property, plant and equipment and amortisation 12.31 - 0.59 -
of other Intangible assets
Provision for employee benefits 4.38 - 0.07 -
Impairment allowance for financial assets 380.39 - (192.64) -
Derivative instruments in cash flow hedge 14.40 - - (26.09)
Expenses paid in advance (net of income received in advance) - 80.44 (15.85) -
Interest spread on assigned loans - 174.85 (21.24) -
Fair valuation of financial instruments held for trading 4.29 - 0.70 -
Others temporary differences 2.99 17.92 1.21 -
Total 418.76 273.21 (227.16) (26.09)

(J in crore)
Other
Deferred Tax (Charged)/ credit
Particulars Deferred Tax Asset comprehensive
Liabilities during the year
income
of other Intangible assets
Provision for employee benefits 4.31 - (0.21) -
Interest spread on assigned loans - 153.61 58.42 -
Others temporary differences 3.00 19.14 (43.05) -
Total 636.14 237.34 1.71 (32.39)

NOTE 11: INVESTMENT PROPERTY
(J in crore)
Gross carrying value Depreciation Net carrying value
Particulars Adjustments/ Adjustments/

As at Addition during As at As at As at As at As at
Deductions For the year Deductions
April 01, 2022 the year March 31, 2023 April 01, 2022 March 31, 2023 March 31, 2023 March 31, 2022
Buildings 0.58 - - 0.58 0.05 0.01 - 0.06 0.52 0.53
Total 0.58 - - 0.58 0.05 0.01 - 0.06 0.52 0.53
(J in crore)

Buildings* 0.58 - - 0.58 0.04 0.01 - 0.05 0.53 0.54
Total 0.58 - - 0.58 0.04 0.01 - 0.05 0.53 0.54
*Assets pledged and hypothecated against borrowings.
Note 11.1: The Company has leased out its investments properties and same has been classified as operating leases on account that there was no transfer of substantial risk
and rewards incidental to the ownership of the assets. Recognition of income and related expenses in profit or loss for investment properties are tabulated below:
Corporate Overview
(J in crore)
Rental Income 0.12 0.08

Profit from investment properties before depreciation 0.12 0.08
Depreciation (0.01) (0.01)
Profit from investment properties 0.11 0.07
Note 11.2: Investment properties are leased to tenants under long-term operating leases with rentals receivable on monthly basis. Minimum undiscounted lease payments
receivable under non-cancellable leases of investment properties after the reporting period:
Statutory Reports
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Within one year 0.04 0.11

Later than one year but not later than five year 0.04 0.08
Later than five years - -

Financial Statements
189
190
Note 11.3: The fair value of the investment property has been determined on the basis of valuation carried out at the reporting date by a registered valuer as defined
under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair value measurement for investment property has been categorised as Level 2 based on
the valuation techniques used and inputs applied. The main inputs considered by the valuer are government rates, property location, market research, contracted rentals,
discount rates and comparable values, as appropriate. The best estimate of fair value is current prices in an active market for similar properties. Fair value are as follows:
Reconciliation of fair value
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 5.55 5.55

Addition during the year - -

Deletion during the year - -

Variation in Fair value 0.09 -
Closing balance 5.64 5.55
NOTE 12: PROPERTY PLANT AND EQUIPMENT

(J in crore)

Buildings 37.72 - - 37.72 2.81 1.20 - 4.01 33.71 34.91
Furniture & Fixtures 19.68 0.45 1.02 19.11 10.01 1.87 0.72 11.16 7.95 9.67
Vehicles 0.10 - 0.10 - 0.05 0.01 0.06 - - 0.05
Computers 31.91 9.31 0.05 41.17 21.91 4.43 0.05 26.29 14.88 10.00
Office Equipment & Others 31.71 1.44 1.49 31.66 23.71 3.80 1.36 26.15 5.51 8.00
Leasehold Improvements 42.67 0.27 3.36 39.58 33.97 4.94 3.33 35.58 4.00 8.70
Total 163.79 11.47 6.02 169.24 92.46 16.25 5.52 103.19 66.05 71.33
(J in crore)

Buildings 37.72 - - 37.72 1.61 1.20 - 2.81 34.91 36.11
Vehicles 0.10 - - 0.10 0.04 0.01 - 0.05 0.05 0.06
Computers 24.43 7.50 0.02 31.91 19.14 2.79 0.02 21.91 10.00 5.29
Office Equipment & Others 29.85 0.65 (1.21) 31.71 18.03 5.36 (0.32) 23.71 8.00 11.82
Leasehold Improvements 42.50 - (0.17) 42.67 26.98 6.97 (0.02) 33.97 8.70 15.52
Total 156.70 8.25 1.16 163.79 75.02 18.28 0.84 92.46 71.33 81.68
(i) Buildings pledged and hypothecated against borrowings.
(ii) There were no revaluation carried out by the Company during the years reported above.
NOTE 12: PROPERTY PLANT AND EQUIPMENT (Contd.)
Right of use
(J in crore)
Particulars Disposal/ Disposal/

modification For the year modification
Building 140.99 34.71 5.96 169.74 80.60 27.24 3.63 104.21 65.53 60.39
Total 140.99 34.71 5.96 169.74 80.60 27.24 3.63 104.21 65.53 60.39
(J in crore)
Particulars Disposal/ Disposal/

Building 132.13 8.87 0.01 140.99 54.13 26.48 0.01 80.60 60.39 78.00
Total 132.13 8.87 0.01 140.99 54.13 26.48 0.01 80.60 60.39 78.00
Note 12.1: Capital Work-in-Progress

Corporate Overview
(a) Capital Work-in-Progress ageing
(J in crore)
Particulars CWIP for a period of
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress 0.08 - - - 0.08
Projects temporarily suspended - - - - -
(J in crore)
Statutory Reports

Projects in progress - - - - -
(b) The Company does not have any material project which is overdue or has exceeded its cost compared to its original plan.

191
192
Note 12.2: Intangible assets under development
(a) Intangible assets under development ageing
(J in crore)
Projects in progress 1.90 1.17 0.01 - 3.08

(J in crore)
(b) For Intangible assets under development, where completion is overdue or has exceeded its cost compared to its original plan
(J in crore)
Particulars To be completed in
Project 1 - - - - -
(J in crore)
Project 1 (Software) - 2.18 - - 2.18

NOTE 13: OTHER INTANGIBLE ASSETS
(J in crore)
Gross carrying value Amortisation Net carrying value

Software 56.89 3.74 - 60.63 39.15 7.73 - 46.88 13.75 17.74
Total 56.89 3.74 - 60.63 39.15 7.73 - 46.88 13.75 17.74
(J in crore)

Software 51.35 5.72 0.18 56.89 30.92 8.41 0.18 39.15 17.74 20.43
Total 51.35 5.72 0.18 56.89 30.92 8.41 0.18 39.15 17.74 20.43
Corporate Overview
Page has been left blank intentionally

Statutory Reports

193
NOTE 14: OTHER NON-FINANCIAL ASSETS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Unsecured considered good
Prepaid expenses 10.85 6.49
GST input credit 33.24 18.44
Others 10.93 2.88
Total 55.02 27.81
NOTE 15: DERIVATIVE FINANCIAL INSTRUMENTS*

(J in crore)
Particulars Notional Fair value Fair value Notional Fair value Fair value
amounts assets liabilities amounts assets liabilities
Currency derivatives:
Spot and forwards 734.17 0.73 38.67 729.17 0.01 50.08
Currency swaps 5,508.54 657.29 - 6,034.25 332.87 -
(i) 6,242.71 658.02 38.67 6,763.42 332.88 50.08
Interest rate derivatives:
Forward rate agreements and interest rate 3,823.08 63.02 - 3,525.03 - 40.55
swaps
(ii) 3,823.08 63.02 - 3,525.03 - 40.55
Margin money received from/(paid to) - - 22.33 - - -
counter party bank
(iii) - - 22.33 - - -
Total derivative financial instruments 10,065.79 721.04 61.00 10,288.45 332.88 90.63
(i)+(ii)+(iii)
Included in above are derivatives held for
hedging and risk management purposes as
follows:
Cash flow hedging:
Currency derivatives 6,242.71 658.02 61.00 6,763.42 332.88 50.08
Interest rate derivatives 3,823.08 63.02 - 3,525.03 - 40.55
* Refer Note 18.3, 43 and 46.2.
NOTE 16: TRADE PAYABLES

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total outstanding dues of creditors other than micro enterprises and small enterprises 28.18 16.11
Due to related parties 14.55 11.03
Total 44.47 27.14


Note 16.1: Trade Payables ageing

(J in crore)
Particulars
More than
Unbilled Less than 1 year 1-2 years 2-3 years Total
3 years
(i) Micro, Small and Medium 1.69 0.05 - - - 1.74
Enterprises
(ii) Others 27.93 14.80 - 0.00 - 42.73
(iii) Disputed dues – Micro, Small - - - - - -
and Medium Enterprises
(iv) Disputed dues – Others - - - - - -
(J in crore)
Particulars As at March 31, 2022
Unbilled Less than 1 year 1-2 years 2-3 years More than 3 years Total
(i) Micro, Small and Medium - - - - - -
Enterprises
(ii) Others 15.87 11.14 0.05 0.08 - 27.14
(iii) Disputed dues – Micro, Small - - - - - -
Note 16.2: The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium
Enterprises Development Act, 2006 (MSMED Act) has been determined to the extent such parties have been identified on the
basis of Information available with the Company. The amount of principal and interest outstanding during the year is as follows:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
1. Principal amount due and remaining unpaid 0.05 -
2. Interest due on (1) above and the unpaid interest - -
3. Interest paid on all delayed payment under the MSMED Act 0.00 -
4. Payment made beyond the appointed day during the year 0.10 0.05
5. Interest due and payable for the period of delay other than (3) above - -
6. Interest accrued and remaining unpaid 0.00 0.00
7. Amount of further interest remaining due and payable in succeeding years - -
Total 0.15 0.05

NOTE 17: DEBT SECURITIES

(J in crore)
Designated Designated
Particulars At At fair value At At fair value
at fair value at fair value
amortised through Total amortised through profit Total
through cost or loss
through profit
cost profit or loss or loss
profit or loss
Secured
Redeemable 3,994.09 - - 3,994.09 6,201.97 - - 6,201.97
non‑convertible
debentures
Total 3,994.09 - - 3,994.09 6,201.97 - - 6,201.97
Debt securities in India 3,994.09 - - 3,994.09 6,201.97 - - 6,201.97
Debt securities outside - - - - - - - -
India
Total 3,994.09 - - 3,994.09 6,201.97 - - 6,201.97
Note 17.1: Nature of security and terms of repayment:
a) Nature of security
Redeemable non-convertible debentures are secured by hypothecation of specific book debts to the extent of 1.10 to 1.25
times of outstanding amount.
b) Terms of repayment
Maturities
≤ 1 year 1 - 3 years 3 - 5 years > 5 years ≤ 1 year 1 - 3 years 3 - 5 years > 5 years
Rate of interest
6.01% - 7.00% - 455.00 - - - 455.00 - -
7.01% - 8.00% - - - - 1,275.00 - - -
8.01% - 9.00% 600.00 650.00 1,000.00 1,000.00 555.00 600.00 1,000.00 1,500.00
9.01% - 10.00% 300.00 - - - 530.00 300.00 - -
900.00 1,105.00 1,000.00 1,000.00 2,360.00 1,355.00 1,000.00 1,500.00
Note 17.2: The rate of interest and amount of repayment appearing in note 17.1(b) are as per the term of the debt instruments
(i.e. excluding impact of effective interest rate). Further, refer note 44.1, 44.2 and 44.3 for compliance in relation to the
utilisation of the borrowed fund and submission of underlying returns/statements.


NOTE 18: BORROWINGS (OTHER THAN DEBT SECURITIES)

(J in crore)
amortised through Total amortised through Total
through cost profit or loss
through
cost profit or loss profit or loss
profit or loss
Secured
Term loans
National housing bank 3,046.20 - - 3,046.20 4,665.21 - - 4,665.21
Banks 18,029.00 - - 18,029.00 13,385.84 - - 13,385.84

External commercial 3,312.83 - - 3,312.83 3,988.89 - - 3,988.89
borrowing
Bank overdraft 49.99 - - 49.99 50.01 - - 50.01
Loans from related party 4,636.68 - - 4,636.68 4,325.89 - - 4,325.89
Unsecured
Term loans
Banks 2,100.00 - - 2,100.00 1,300.00 - - 1,300.00
Total 31,174.70 - - 31,174.70 27,715.84 - - 27,715.84
Borrowings in India 25,683.12 - - 25,683.12 21,718.06 - - 21,718.06
Borrowings outside India 5,491.58 - - 5,491.58 5,997.78 - - 5,997.78
Total 31,174.70 - - 31,174.70 27,715.84 - - 27,715.84
Note 18.1: Refinance from National Housing Bank (NHB):
(i) All the present and outstanding refinancing from NHB are secured by hypothecation of specific loans/ book debts to
the extent of 1.0 to 1.20 times of outstanding amount.
(ii) During FY 23, the Company has availed I Nil and during FY 22 I 1490.00 crore was availed under “Special Refinance
Facility 2021 Assistance Facility Scheme” of NHB for short-term liquidity support to provide refinance assistance in
respect of eligible individual Housing loans”.
(J in crore)
Maturities
4.00% - 6.00% 132.46 281.46 - - 504.95 353.20 130.40 -
6.01% - 8.00% 418.04 821.19 400.42 155.12 583.41 1,369.76 946.08 777.41
8.01% - 10.00% 123.78 330.08 308.48 75.17 - - - -
674.27 1,432.73 708.90 230.29 1,088.36 1,722.96 1,076.48 777.41
Note 18.2: Term loan from Banks:
i) Term loan from Punjab National Bank (related party) are secured by hypothecation by way of exclusive charge on
specific standard book debts of the Company with minimum asset cover of 1.10 times to be maintained at all times.
ii) Term loans from banks other than Punjab National Bank are secured by hypothecation of specific book debts to the
extent of 1.0 to 1.12 times of outstanding amount.

(J in crore)
Maturities
from related party:
5.10% - 5.89% - - - - 796.67 333.33 - -
5.90% - 7.00% - - - - 412.49 574.50 200.00 -
7.01% - 9.00% 1,891.30 566.63 - - - - - -
from others:
4.00% - 7.00% 500.00 - - - 6,185.61 4,009.19 1,882.30 100.00
7.01% - 9.00% 7,570.34 6,693.26 3,823.27 559.55 1,445.57 1,040.94 30.00 -
9.01% - 9.11% 166.67 666.67 166.67 - - - -
10,128.31 7,926.56 3,989.94 559.55 8,840.34 5,957.96 2,112.30 100.00
Note 18.3: External commercial borrowing:
i) The ECB borrowings are secured against eligible housing loans/book debts and are hedged through currency swaps,
interest rate swaps and forward contracts as per the applicable RBI guidelines.
ii) The derivative contracts are initially recognised at fair value on the date of the transaction and all outstanding
derivative transactions, on the date of balance sheet, are subsequently measured at fair value on that date. Where
cash flow hedge accounting is used, fair value changes of the derivative contracts are recognised through the cash
flow hedge reserve (through other comprehensive income) which is reclassified to profit and loss account as the
hedged item effects profit and loss. Premium paid/discount received in advance (if any) on the derivative contracts,
which are not intended for trading or speculation purposes, are amortised over the period of the contracts, if such
contracts relate to monetary items as at the balance sheet date.
iii) As at March 31, 2023, the Company has outstanding ECB of USD 670.00 million (equivalent to I 5,508.53 crore)
(March 31, 2022 USD 796.00 million (equivalent to I 6,034.25 crore)). The Company has undertaken cross currency
swaps and principal only swaps to hedge the foreign currency risk of the ECB principal. Whereas the Company
has entered into floating to fixed coupon only swaps and interest rate swaps along with forward contracts to
hedge the floating interest and foreign currency risk of the coupon payments respectively. All the derivative
instruments are purely for hedging the underlying ECB transactions as per applicable RBI guidelines and not for any
speculative purpose.
(J in crore)
Maturities
from related party:
USD LIBOR + 110 - 200 bps 2,178.75 - - - - 2,008.89 - -
from others:
USD LIBOR + 110 - 200 bps 1,890.98 1,438.80 - - 955.17 2,501.64 568.55 -
4,069.73 1,438.80 - - 955.17 4,510.53 568.55 -
Note 18.4: Bank overdraft:
Overdraft facilities are secured by hypothecation of specific book debts to the extent of 1.0 to 1.12 times of outstanding amount.


b) Terms of Repayment
(J in crore)
Maturities
6.50% -8.00% 49.99 - - - 50.01 - - -
Note 18.5:
The rate of interest and amount of repayment appearing in note 18.1(b), 18.2(b) and 18.3(b) are as per the term of the respective
instruments.(i.e. excluding impact of effective interest rate). Further, refer note 44.1, 44.2 and 44.3 for compliance in relation to
the utilisation of the borrowed fund and submission of underlying returns/statements.
NOTE 19: DEPOSITS

(J in crore)
Particulars At fair value At fair value
Amortised at fair value Amortised at fair value
through Total through Total
Cost through Cost
profit or loss
through
profit or loss profit or loss
profit or loss
Unsecured
Deposits
(i) From public 15,513.00 - - 15,513.00 14,939.94 - - 14,939.94
(Refer note 36.31)
(ii) From banks 325.84 - - 325.84 411.91 - - 411.91
(Refer note 19.2)
(iii) From others 1375.12 - - 1375.12 2,253.28 - - 2,253.28
Total 17,213.96 - - 17,213.96 17,605.13 - - 17,605.13
Note 19.1: Refer note 44.1, 44.2 and 44.3 for compliance in relation to the utilisation of the borrowed fund and submission of
underlying returns/statements.
Note 19.2: Includes amount payable to related party `114.06 crore.
NOTE 20: SUBORDINATED LIABILITIES

(J in crore)
Cost through Cost
profit or loss
through
profit or loss
Unsecured
Redeemable non-convertible 1,238.35 - - 1,238.35 1,438.18 - - 1,438.18
debentures
Total 1,238.35 - - 1,238.35 1,438.18 - - 1,438.18
Subordinated liabilities in India 1,238.35 - - 1,238.35 1,438.18 - - 1,438.18
Subordinated liabilities outside - - - - - - - -
India
Total 1,238.35 - - 1,238.35 1,438.18 - - 1,438.18


Redeemable non-convertible subordinated debentures are subordinated debt to present and future senior indebtedness
of the Company and based on the balance term to maturity as at March 31, 2023, I 337.70 crore (March 31, 2022 I 577.50
crore) qualify as Tier II Capital under regulatory guidelines for assessing capital adequacy.
(J in crore)
Maturities
Rate of interest
8.01% - 9.00% 499.00 410.00 290.00 - - 699.00 500.00 -
9.01% - 10.00% - - - 39.70 200.00 - - 39.70
499.00 410.00 290.00 39.70 200.00 699.00 500.00 39.70
Note 20.2:
The rate of interest and amount of repayment appearing in note 20.1(b) are as per the term of the debt instruments (i.e.
excluding impact of effective interest rate). Further, refer note 44.1, 44.2 and 44.3 for compliance in relation to the utilisation of
the borrowed fund and submission underlying returns/statements.
NOTE 21: OTHER FINANCIAL LIABILITIES

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Interest accrued but not due on deposits 3.72 38.07
Interest accrued but not due on borrowings (Refer Note 21.1) 262.46 315.69
Unpaid matured deposits and interest accrued thereon 29.94 43.84
Amount payable under assignments (Refer Note 21.2) 167.11 265.15
Book overdraft 1,117.57 1,407.22
Unpaid dividends 0.07 0.07
Other liabilities 288.44 406.61
Lease liabilities (Refer Note 37) 74.67 70.13
Total 1,943.98 2,546.78
Note 21.1: Includes amount payable to related party I 2.23 crore (Previous year I 0.49 crore).
Note 21.2: Includes amount payable to related party I 79.29 crore (Previous year I 124.94 crore).
NOTE 22: PROVISIONS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Retirement benefits 17.39 17.12

Total 17.39 17.12
NOTE 23: OTHER NON-FINANCIAL LIABILITIES

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Advance received from customers 134.75 207.07

Statutory dues payable 73.43 68.52
Total 225.45 296.60


NOTE 24: EQUITY SHARE CAPITAL

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Authorised
50,00,00,000 equity shares of H10 each (March 31, 2022: 50,00,00,000) 500.00 500.00
500.00 500.00
Issued, subscribed and paid-up
16,88,55,818 equity shares of H10 each fully paid up (March 31, 2022: 16,85,98,555) 168.86 168.60
Total 168.86 168.60
Note 24.1: Reconciliation of number of shares outstanding and the amount of share capital at the beginning and end of the year:

Particulars
No. of shares J in crore No. of shares J in crore
At the beginning of the year 16,85,98,555 168.60 16,82,68,123 168.27
Add: Share allotted pursuant to exercise of stock option 2,57,263 0.26 3,30,432 0.33
Outstanding at the end of the year 16,88,55,818 168.86 16,85,98,555 168.60
Note 24.2: Detail of equity shareholding of Promoter

(J in crore)
Promoter name % Change during
No. of shares % of total shares
the year*
Punjab National Bank 5,49,14,840 32.52% (0.05%)
(J in crore)
the year*
* Change during the year on account of exercise of ESOPs by employees.
Note 24.3: Details of shareholders holding more than 5% of equity shares in the Company:
(J in crore)
Particulars
No. of shares % of Holding No. of shares % of Holding
Punjab National Bank 5,49,14,840 32.52 5,49,14,840 32.57
Quality Investments Holdings 5,41,92,300 32.09 5,41,92,300 32.14
Investment Opportunities V Pte. Limited 1,66,87,956 9.88 1,66,87,956 9.90
General Atlantic Singapore FII Pte. Limited 1,65,93,240 9.83 1,65,93,240 9.84
Note 24.4: Terms/Rights attached to equity shares shares will be entitled to receive remaining assets of the
The Company has only one class of shares referred to as Company, after distribution of all preferential amounts. The
equity shares having a par value of H10 per share. Each distribution will be in proportion to the number of equity
holder of equity shares is entitled to one vote per share. shares held by the shareholders.
The Company declares and pays dividend in H. Dividend Note 24.5: The Company has not allotted any share pursuant
distribution is for all equity shareholders who are eligible to contracts without payment being received in cash nor it
for dividend as on record date. The dividend proposed by has issued any bonus shares or bought back any shares,
the Board of Directors is subject to the approval of the during the period of five years immediately preceding the
shareholders in the ensuing Annual General meeting. In the reporting date.
event of liquidation of the Company, the holders of equity

Note 24.6: The Company has not: structure, the Company may adjust the amount of dividend
i. Issued any securities convertible into equity/ payment to shareholders, return of capital to shareholders or
preference shares. issue capital securities.
ii. Issued any shares where calls are unpaid. No changes have been made to the objectives, policies and
processes from the previous years and they are reviewed by
iii. Forfeited any shares. the Board of Director’s at regular intervals.
Note 24.7: Capital Management: Regulatory capital consists of Tier I capital, which includes
owned funds comprising share capital, share premium,
The Company maintains an actively managed capital base to
retained earnings including current year profit and free
cover risks inherent in the business and is meeting the capital
reserves less cash flow hedge reserve, deferred revenue
adequacy requirements as per the directives of the regulator.
expenditure and intangible assets. The book value of
The adequacy of the Company capital is monitored using,
investment in shares of other non-banking financial
among other measures, the regulations issued by NHB & RBI
companies including housing finance companies and in
from time to time.
shares, debentures, bonds, outstanding loans and advances
Company has complied in full with all its externally imposed including hire purchase and lease finance made to and
capital requirements. deposits with subsidiaries and companies in the same group
exceeding, in aggregate 10% of owned funds will be reduced
The primary objectives of the Company capital management
while arriving at the Tier I capital.
policy are to ensure that it complies with externally imposed
capital requirements and maintains strong credit ratings and The other component of regulatory capital is Tier II Capital
healthy capital ratios in order to support its business and to Instruments, which includes non-convertible preference
maximise shareholder’s value. shares, revaluation reserve, general provision and loss
reserves to the extent of one and one fourth percent of risk
The Company manages its capital structure after taking in to
weighted asset, hybrid capital instruments and subordinated
consideration the inherent business risk and the changes in
debts.(Refer Note 36.1)
economic conditions. In order to maintain or adjust the capital
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Debt securities 3,994.09 6,201.97
Borrowings (other than debt securities) 31,174.70 27,715.84
Deposits 17,243.90 17,648.97
Subordinated liabilities 1,238.35 1,438.18
Less: Cash and cash equivalents (3,667.41) (4,964.37)
Less: Bank balance other than cash and cash equivalents (other than earmarked balances) (25.09) (150.40)
Net debt 49,958.54 47,890.19
Total equity - shareholder funds 10,952.57 9,800.54
Net debt to equity ratio 4.56 4.89
Note 24.8: Shares reserved for issue under ESOS

(i) Employee Stock Option Scheme and related scheme wise details are as follows:
Particulars ESOS - 2016 Tranche I ESOS - 2016 Tranche II ESOS - 2016 Tranche III ESOS - 2016 Tranche IV
Date of grant April 22, 2016 August 30, 2017 February 23, 2018 July 27, 2018
Number of options granted 38,07,690 4,05,700 1,00,000 1,36,485
Exercise price per option H338.00 H1,600.60 H1,206.35 H1,333.35
Date of vesting The vesting will be as under:
25% on April 22, 2017 25% on August 30, 2018 20% on February 23, 2019 25% on July 27, 2019
- - 20% on February 23, 2023 -
Exercise period Within 3 years from the date of respective vesting
Method of settlement Through allotment of one equity share for each option granted
Vesting conditions Employee to remain in service on the date of vesting


Date of grant July 27, 2018 July 27, 2018 March 19, 2019 August 19, 2020
Number of options granted 18,15,000 2,35,000 1,81,200 45,000
Exercise price per option H1,333.35 H1,333.35 H847.40 H261.15
15% on July 27, 2020 25% on July 27, 2019 25% on March 19, 2020 10% on August 19, 2021
ESOS - Restricted stock ESOS - Restricted stock

Particulars ESOS - 2016 Tranche V ESOS - 2016 Tranche VI
units 2020 Tranche I units 2020 Tranche II
Date of grant August 19, 2020 October 21, 2022 February 15, 2021 April 26, 2022
Exercise price per option H261.15 H444.05 H10.00 H10.00
Date of vesting The vesting will be as under: The vesting will be as under:
10% on August 19, 2021 20% on October 21, 2023 10% on February 15, 2022 10% on April 26, 2023
Exercise period Within 3 years from the date of respective vesting Within 1 year from the date of respective vesting
Method of settlement Through allotment of one equity share for each Through allotment of one equity share for each
option granted option granted
Vesting conditions Employee to remain in Employee to remain in Employee to remain in service on the date of vesting and
service on the date of service on the date of other applicable performance conditions.
vesting vesting and other applicable
performance conditions.
Particulars ESOS - 2018 Tranche V ESOS - 2018 Tranche VII ESOS - 2018 Tranche VI ESOS - 2018 Tranche VIII
Date of grant July 26, 2021 October 28, 2021 October 08, 2021 December 10, 2021
Number of options granted 1,00,000 75,000 22,000 75,000
10% on July 26, 2022 10% on October 28, 2022 10% on October 08, 2022 10% on December 10, 2022
Exercise period Within 3 years from the date of respective vesting Within 3 years from the date Within 3 years from the date
of respective vesting of respective vesting
Method of settlement Through allotment of one equity share for each option Through allotment of one Through allotment of one
granted equity share for each option equity share for each option
granted granted
Vesting conditions Employee to remain in service on the date of vesting Employee to remain in Employee to remain in
and other applicable performance conditions. service on the date of vesting service on the date of
vesting and other applicable

Particulars ESOS - 2018 Tranche IX ESOS - 2018 Tranche X ESOS - 2018 Tranche XI
Date of Grant June 09, 2022 August 08, 2022 October 27, 2022
Number of options granted 25,000 6,78,559 2,00,000
Exercise price per option H345.20 H345.30 H431.20
20% on June 09, 2023 20% on August 08, 2023 20% on October 27, 2023
Vesting conditions Employee to remain in service on the date of vesting and other applicable performance conditions.
Note: During the year the Company has approved Employee Stock Option Scheme III 2022 and Restricted stock unit Scheme 2022 where in maximum
number of options/RSU available for grant in scheme are 20.00 lakh and 8.50 lakh respectively. However, no grant has been made under these
schemes.
(ii) Employee Stock Option Scheme movement and related weighted average exercise price are as follows:

Particulars ESOS - 2016 ESOS - 2016 ESOS - 2016
Tranche I Tranche II Tranche IV
Options outstanding at the beginning of the year (a) - - 7,872
Options exercisable at the beginning of the year (b) 1,14,871 1,12,025 36,113
Options granted during the year (c) - - -
Options lapsed/expired during the year (d) 24,999 60,375 24,871
Options vested during the year (e) - - 7,872
Options exercised during the year (f) 79,572* - -
Options forfeited during the year (g) - - -
Options outstanding at end of the year (h) = (a+c-e-g) - - -
Options exercisable at the end of the year (i) = (b+e-d-f) 10,300 51,650 19,114
Weighted average exercise price per option (H) 338.00 1,600.60 1,333.35
Weighted average remaining contractual life (year) 0.01 0.23 0.04

Particulars ESOS - 2018 ESOS - 2018 ESOS - 2018 ESOS - 2018
Tranche I Tranche II Tranche III Tranche IV
Options outstanding at the beginning of the year (a) 3,23,759 14,875 23,375 40,500
Options exercisable at the beginning of the year (b) 3,32,456 60,375 70,125 2,000
Options granted during the year (c) - - - -
Options lapsed/expired during the year (d) 1,42,575 40,375 47,825 5,000
Options vested during the year (e) 1,50,919 14,125 11,150 9,000
Options exercised during the year (f) - - - -
Options forfeited during the year (g) 33,640 750 12,225 17,500
Options outstanding at end of the year (h) = (a+c-e-g) 1,39,200 - - 14,000
Options exercisable at the end of the year (i) = (b+e-d-f) 3,40,800 34,125 33,450 6,000
Weighted average exercise price per option (H) 1,333.35 1,333.35 847.40 261.15
Weighted average remaining contractual life (year) 1.06 0.50 1.74 2.03


Particulars ESOS - Restricted ESOS - Restricted

ESOS - 2016 ESOS - 2016
stock units 2020 stock units 2020
Tranche V Tranche VI
Tranche I Tranche II
Options outstanding at the beginning of the year (a) 4,95,000 - 1,42,367 -
Options exercisable at the beginning of the year (b) 55,000 - 14,204 -
Options granted during the year (c) - 5,75,000 - 25,000
Options lapsed/expired during the year (d) - - 1,513 -
Options vested during the year (e) 1,10,000 - 23,194 -
Options exercised during the year (f) 1,65,000** - 12,691** -
Options forfeited during the year (g) 3,85,000 - 37,964 -
Options outstanding at end of the year (h) = (a+c-e-g) - 5,75,000 81,209 25,000
Options exercisable at the end of the year (i) = (b+e-d-f) - - 23,194 -
Weighted average exercise price per option (H) 261.15 444.05 10.00 10.00

Tranche V Tranche VI Tranche VII Tranche VIII
Options Outstanding at the beginning of the year (a) 1,00,000 22,000 75,000 75,000
Options exercisable at the beginning of the year (b) - - - -
Options lapsed/expired during the year (d) - - 1,000 -
Options vested during the year (e) 10,000 - 2,500 7,500
Options forfeited during the year (g) - 22,000 59,000 -
Options outstanding at end of the year (h) = (a+c-e-g) 90,000 - 13,500 67,500
Options exercisable at the end of the year (i) = (b+e-d-f) 10,000 - 1,500 7,500
Weighted average remaining contractual life (year) 2.86 - 3.10 3.21

Tranche IX Tranche X Tranche XI
Options outstanding at the beginning of the year (a) - - -
Options exercisable at the beginning of the year (b) - - -
Options granted during the year (c) 25,000 6,78,559 2,00,000
Options lapsed/expired during the year (d) - - -
Options vested during the year (e) - - -
Options exercised during the year (f) - - -
Options forfeited during the year (g) - 1,11,969 -
Options outstanding at end of the year (h) = (a+c-e-g) 25,000 5,66,590 2,00,000
Options exercisable at the end of the year (i) = (b+e-d-f) - - -
Weighted average exercise price per option (H) 345.20 345.30 431.20


Options outstanding at the beginning of the year (a) - 52,875 40,000 27,243
Options exercisable at the beginning of the year (b) 5,07,527 1,60,875 60,000 28,492
Options lapsed/expired during the year (d) 64,724 99,350 60,000 8,750
Options vested during the year (e) - 50,500 - 16,371
Options exercised during the year # (f) 3,27,932 - - -
Options forfeited during the year (g) - 2,375 40,000 3,000
Options outstanding at end of the year (h) = (a+c-e-g) - - - 7,872
Options exercisable at the end of the year (i) = (b+e-d-f) 1,14,871 1,12,025 - 36,113
Weighted average exercise price per option (H) 338.00 1,600.60 1206.35 1,333.35
Weighted average remaining contractual life (year) 0.14 0.53 - 0.21

Options outstanding at the beginning of the year (a) 9,02,870 65,500 53,250 45,000
Options exercisable at the beginning of the year (b) 1,60,455 65,500 55,750 -
Options lapsed/expired during the year (d) 1,34,989 37,000 9,000 -
Options exercised during the year## (f) - - - 2,500
Options forfeited during the year (g) 2,72,121 18,750 6,500 -
Options outstanding at end of the year (h) = (a+c-e-g) 3,23,759 14,875 23,375 40,500
Weighted average exercise price per option (H) 1,333.35 1,333.35 847.40 261.15

Particulars ESOS - 2016 ESOS - Restricted
Tranche V stock units 2020
Options outstanding at the beginning of the year (a) 5,50,000 2,63,586
Options exercisable at the beginning of the year (b) - -
Options granted during the year (c) - -
Options lapsed/expired during the year (d) - 215
Options vested during the year (e) 55,000 14,419
Options exercised during the year (f) - -
Options forfeited during the year (g) - 1,06,800
Options outstanding at end of the year (h) = (a+c-e-g) 4,95,000 1,42,367
Options exercisable at the end of the year (i) = (b+e-d-f) 55,000 14,204
Weighted average exercise price per option (H) 261.15 10.00
Weighted average remaining contractual life (year) 2.92 2.39



Options outstanding at the beginning of the year (a) - - - -

Options granted during the year (c) 1,00,000 22,000 75,000 75,000
Options lapsed/expired during the year (d) - - - -
Options vested during the year (e) - - - -
Options forfeited during the year (g) - - - -
Options exercisable at the end of the year (i) = (b+e-d-f) - - - -
* Weighted average share price on the date of the exercise of the stock option is H520.28
** Weighted average share price at the date of the exercise of the stock option is H433.53
*** Weighted average share price at the date of the exercise of the stock option is H395.86
# Weighted average share price at the date of the exercise of the stock option is H718.47
### Weighted average share price at the date of the exercise of the stock option is H524.75
(iii) Black-Scholes Model have been used to derive the fair value of the stock option granted, taking in to account the
terms and conditions upon which the share options were granted. The fair value of each stock options and the related
parameters considered for the same are:
ESOS - 2016 ESOS - 2016 ESOS - 2016 ESOS - 2016

Particulars
Estimated value of stock option (H) 111.71 546.15 487.10 511.64

Share price at Grant Date (H) 338.00 1,600.60 1,206.35 1,333.35
Exercise Price (H) 338.00 1,600.60 1,206.35 1,333.35
Expected Volatility (%)* 0.4065 0.4097 0.3560 0.3560
Dividend Yield Rate (%) 1.24 0.31 0.39 0.55
Expected Life of Options** (year) 3.00 3.00 4.50 4.00
Risk Free Rate of Interest (%) 7.23 6.30 7.43 7.79

Particulars
Estimated Value of Stock Option (H) 593.17 511.64 321.87 120.56

Share Price at Grant Date (H) 1,333.35 1,333.35 847.40 261.15
Exercise Price (H) 1,333.35 1,333.35 847.40 261.15
Dividend Yield Rate (%) 0.53 0.55 1.06 -
ESOS - Restricted ESOS - Restricted

ESOS - 2016 ESOS - 2016
Particulars stock units 2020 stock units 2020
Share Price at Grant Date (H) 261.15 444.05 356.4 388.20
Exercise Price (H) 261.15 444.05 10.00 10.00
Dividend Yield Rate (%) - - - -


Particulars

Exercise Price (H) 690.35 644.70 507.20 588.10
ESOS - 2018 ESOS - 2018 ESOS - 2018

Particulars
Estimated Value of Stock Option (H) 166.72 166.16 208.11
Share Price at Grant Date (H) 345.20 345.30 431.20
Exercise Price (H) 345.20 345.30 431.20
Expected Volatility (%)* 51.30 51.03 50.65
Dividend Yield Rate (%) - - -
Expected Life of Options** (year) 4.21 4.21 4.21
Risk Free Rate of Interest (%) 6.94 6.92 7.19
*Expected volatility has been computed basis the expected life.
**Expected life of the share option is based on the date of grant and is not necessarily indicative of exercise pattern that may occur.
(iv) The expenses recognised for the employee services received during the year are as follows:
(J in crore)
Expenses arising from equity settled share based payment transaction 11.95 3.67
Expenses arising from cash settled share based payment transaction - -
Total 11.95 3.67
Note 24.9: Dividend declared and paid
Net profit for the

Rate of dividend Amount of Dividend pay out
Particulars accounting period
(percent) dividend ratio (percent)
(J in crore)
April 2022-March 2023 1,056.27 - - -
April 2021-March 2022 821.92 - - -
Dividend paid during the financial year:

(J in crore)
Dividend on ordinary shares:
Final dividend for 2023: H Nil per share - -
Total - -


NOTE 25: OTHER EQUITY (Nature and purpose of Act, 1961 and the same is considered to be an eligible transfer
reserves) for the purposes of Section 29C (i).
Share application money Share option outstanding accounts

Share application money pending allotment whereby the The cost of equity settled transactions is determined by
amount has been received on the application, of which the fair value at the date when the grant is made using the
allotment is yet to be made. Black‑Scholes Model. The cumulative expense recognised
for equity settled transaction is credited to share option
Securities premium outstanding account in equity.
Securities premium includes :
Retained earnings
− amount of premium received on issue of equity shares and;
Retained earnings are profits earned by the Company
− fair value of the stock options which are treated as after transfer to general reserve and payment of dividend
expense, if any, in respect of shares allotted pursuant to to shareholders.
Employee Stock Options Scheme.
The securities premium can be utilised only for limited Effective portion of cash flow hedges
purposes such as issuance of bonus shares, issue expenses The Company uses hedging instruments as part of its
of securities which qualify as equity instruments in management of foreign currency risk and interest rate risk
accordance with the provisions of the Companies Act, 2013. associated on borrowings. For hedging foreign currency
and interest rate risk, the Company uses foreign currency
Special reserve and Statutory reserve forward contracts, cross currency swaps and interest rate
In accordance with Section 29C(i) of the National Housing swaps. To the extent these hedges are effective, the change in
Bank Act, 1987, the Company is required to transfer at least fair value of the hedging instrument is recognised in the cash
20% of its net profit every year to a reserve fund (statutory flow hedging reserve. Amounts recognised in the cash flow
reserve) before any dividend is declared. hedging reserve is reclassified to the statement of profit or
loss when the hedged item affects profit or loss (e.g. interest
The Company has created a special reserve in terms of payments).
clause (viii) of sub-section (1) of Section 36 of the Income-tax
NOTE 26: INTEREST INCOME

(J in crore)
Interest income Interest income
On financial on financial on financial
Particulars On financial
assets measured assets classified assets classified
Total assets measured Total
at Amortised as fair value at Amortised cost
as fair value
cost through profit through profit or
or loss loss
Loans 5,816.41 - 5,816.41 5,535.98 - 5,535.98

Investments
Financial investments - Debt 169.82 - 169.82 158.45 - 158.45
Financial asset valued at fair - 81.22 81.22 - 44.92 44.92
value through profit and loss
Deposits with banks 101.95 - 101.95 49.95 - 49.95
Other Interest income
Loan against deposits 3.51 - 3.51 3.35 - 3.35
Total 6,091.69 81.22 6,172.91 5,747.73 44.92 5,792.65

NOTE 27: FEES AND COMMISSION INCOME

(J in crore)
Fees Income 135.65 136.53
Other charges recovered 137.38 102.81
Total 273.03 239.34
NOTE 28: NET GAIN ON FAIR VALUE CHANGES

(J in crore)
Net gain on financial instruments at fair value through profit or loss
Others
- Investments 33.71 109.10
Total 33.71 109.10
Fair value changes:
- Realised 44.64 119.16
- Unrealised (10.93) (10.06)
Total 33.71 109.10
NOTE 29: FINANCE COSTS

(J in crore)
On financial On financial
Particulars liabilities liabilities
liabilities liabilities
measured at fair Total measured at fair Total
measured at value through
measured at
value through Amortised cost
Amortised cost Profit or loss
Profit or loss
Interest on debt securities - 395.68 395.68 - 704.37 704.37
Interest on borrowings - 2,051.22 2,051.22 - 1,913.08 1,913.08
Interest on deposits - 1,316.46 1,316.46 - 1,308.24 1,308.24
Interest on subordinated liabilities - 119.25 119.25 - 124.28 124.28
Interest on lease liabilities - 6.17 6.17 - 6.51 6.51
Interest on Income tax - 0.05 0.05 - 0.47 0.47
Fee and other charges - 10.75 10.75 - 8.68 8.68
Total - 3,899.58 3,899.58 - 4,065.63 4,065.63
NOTE 30: IMPAIRMENT ON FINANCIAL INSTRUMENTS AND WRITE-OFFS

(J in crore)
On financial
On financial On financial On financial
Particulars instruments
instruments instruments instruments
measured at fair Total Total
measured at measured at fair measured at
value through value through OCI Amortised cost
Amortised cost
OCI
Loans - (1,126.10) (1,126.10) - 14.84 14.84
Bad debts written-off (net) - 1,738.20 1,738.20 - 562.03 562.03
Investments - 78.55 78.55 - - -
Other receivables - 0.59 0.59 - (0.49) (0.49)
Total - 691.24 691.24 - 576.38 576.38


NOTE 31: EMPLOYEE BENEFITS EXPENSES

(J in crore)
Salaries, allowances and benefits 188.32 164.26
Contribution to provident and other funds 10.41 9.70
Share based payments to employees 11.95 3.67
Staff welfare expenses 3.66 2.42
Total 214.34 180.05
NOTE 32: OTHER EXPENSES

(J in crore)
Rent expenses 2.06 1.40
Rates and taxes 0.26 0.27
Electricity and water expenses 8.71 7.39
Repairs and maintenance 24.51 17.61
Office running and maintenance expenses 29.26 24.89
Business support services 30.13 19.40
Legal and professional charges 53.66 60.77
Advertisement and publicity 11.34 10.23
Corporate social responsibility expenses (Refer Note 32.1) 17.80 21.13
Communication costs 7.93 9.49
Travelling and conveyance 8.69 4.66
Printing and stationery 5.38 3.82
Training and recruitment expenses 6.70 5.16
Director's fees, allowances and expenses 2.92 2.10
Auditor's fees and expenses (Refer Note 32.2) 0.99 0.75
Insurance 0.66 0.54
Bank charges 1.44 0.42
Miscellaneous expenses - 0.83
Total 260.28 198.91

Note 32.1: Corporate Social Responsibility expense (CSR)

As per Section 135 of the Companies Act, 2013 along with Companies (Corporate Social Responsibility Policy) Rules 2021
as amended, the Company is required to spent for CSR activities in accordance with its CSR policy. The details of the CSR
expenses for the year are as under:
(J in crore)
a) Gross amount required to be spent by the Company during the year 17.80 21.11
b) Amount spent during the year
i) Construction/acquisition of any asset - -
ii) On purposes other than (i) above
- Contribution to various Trust/ NGOs/ Societies/ Agencies and utilisation thereon 10.85 20.06
- Expenditure on administrative overheads for CSR^ 0.54 1.07
Total 11.39 21.13
c) Shortfall at the end of year 6.41 -
d) Total of previous years shortfall - -
e) Reason for shortfall Refer note 32.1 (i) NA
f) Details of related party transactions, contribution to a trust controlled by the Company in relation to
CSR expenditure trust
- Pehel Foundation 10.85 16.21
g) Nature of CSR activities
Nature of CSR activities undertaken by the Company are in relation to:
- Healthcare
- Education
- Women Empowerment
- Environmental Sustainability
- Promoting education for the differently abled
- Employment enhancing vocational skills, training for women
- Contribution towards Prime minister relief fund
h) CSR amount spent or unspent for the financial year
- Total amount spent for the financial year 11.39 21.13
- Total amount transferred to Unspent CSR Account as per Section 135(6) 6.41 -
- Amount transferred to Unspent Corporate Social Responsibility Account with in specified period Yes NA
- Amount transferred to any fund specified under Schedule VII as per second proviso to Section - -
135(5)
Note 32.1 (i): In relation to Financial Year 2022-23, for optimal and proper utilization of the CSR funds, projects were reviewed and to implement the
project effectively and create long term impact, projects were revised as ongoing projects and funds for the same projects will be utilised as planned
from unspent account in the subsequent financial years.
^The administrative overheads considered on the actual CSR amount spent and not on unspent account.
Note 32.2: Auditor’s fees and expenses*

(J in crore)
Statutory audit fee 0.39 0.34
Tax audit fee 0.07 0.06
Limited review fee 0.28 0.20
Other certification fee 0.14 0.08
Out of pocket expenses 0.03 0.01
GST expenses on Auditor's fees and expenses 0.08 0.06
Total 0.99 0.75
*Excluding fees in relation to the rights issue related services by the statutory auditor’s amounting to H0.65 crore excluding applicable taxes (Previous
Year H Nil).


NOTE 33: INCOME TAXES

The components of income tax expense are:
(J in crore)
Current tax 83.35 290.02
Adjustments in respect of current income tax of prior years 0.03 (47.46)
Deferred tax relating to origination and reversal of temporary differences (including impact of change in 227.16 (1.71)
tax rate)
Total 310.54 240.85

Deferred tax (Refer Note 10) 227.16 (1.71)
Note 33.1: Reconciliation of tax expense and the accounting profit multiplied by statutory income tax rate for the year ended
March 31, 2023 and March 31, 2022 is as follows:
(J in crore)
Accounting profit before tax (a) 1,366.81 1,062.77
Statutory income tax rate (%) (b) 25.168 25.168
Tax at statutory income tax rate (c) = (a*b) 344.00 267.48
Adjustments in respect of current income tax of prior years (d) 0.03 (47.46)
Impact of:
- Income not subject to tax (e) (38.33) (20.37)
- Non-deductible expenses (f) (211.21) 89.22
- Deduction under section 36 (1) (viii) (g) (11.10) (31.03)
- Other deductions (h) (0.01) (15.28)
Total current tax expense (c+d+e+f+g+h) 83.38 242.56
Effective tax rate (%) 22.72 22.66
Other comprehensive income
Tax expense on re-measurement gains/ (losses) on defined benefit plan 0.33 (0.11)
Total tax on other comprehensive income 0.33 (0.11)
NOTE 34: EARNINGS PER SHARE

i) The Earnings Per Share (EPS) is calculated as follows:
Particulars Unit Current Year Previous Year

a) Amount used as the numerator for basic EPS profit for the year (H in crore) 1,056.27 821.92
b) Weighted average number of equity shares for basic EPS Number 16,86,79,926 16,85,05,508
c) Weighted average number of equity shares for diluted EPS Number 16,88,44,989 16,88,74,383
d) Nominal value per share (in H) 10 10
e) Earnings per share:
- Basic (a/b) (in H) 62.62 48.78
- Diluted (a/c) (in H) 62.56 48.67

ii) The basic earnings per share has been computed by dividing the net profit after tax attributable to equity share holders
of the Company by the weighted average number of equity shares outstanding during the year. The diluted earnings per
share has been computed by dividing the net profit after tax attributable to equity share holders of the Company by the
weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The
dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at
fair value (i.e. the average market value of the outstanding equity shares). Diluted potential equity shares are deemed
converted as of the beginning of the period unless issued at a later date. Diluted potential equity shares are determined
independently for each period presented. Diluted earnings per share does not include conversion or exercise of potential
ordinary shares that would have an anti-dilutive effect on earnings per share.
Reconciliation of equity shares used in computation of basic and diluted earnings per equity share is as follows:
Year ended Year ended

Particulars
March 31, 2023 March 31, 2022
Weighted average number of equity shares at the beginning of the year 16,85,98,555 16,82,68,123
Weighted average number of equity shares issued during the year 81,371 2,37,385
Weighted average number of equity shares for computation of basic earnings per share 16,86,79,926 16,85,05,508
Effect of dilutive equity shares - share option outstanding 1,65,063 3,68,875
Weighted average number of equity shares for computation of dilutive earnings per share 16,88,44,989 16,88,74,383
NOTE 35: ASSETS HELD FOR SALE

The Company has taken possession of mortgage properties (residential/commercial) and is in the process of disposing the
same. These properties are classified as assets held for sale.
Whether title deed

holder is promoter,
Description Gross Title deeds Property held Reason for not being held
director or relative
Period Particulars of item of carrying held in the since which in the name of
of promoter/ director
property value name of date the Company
or employee of
promoter/ director
March 31, 2023 Assets held for Land - NA NA NA Possession of
sale assets taken under
March 31, 2023 Assets held for Building - NA NA NA Securitisation and
sale Reconstruction of
Financial Assets and
March 31, 2022 Assets held for Land 73.20 Respective No Between Enforcement of Security
sale borrowers -January 2013 Interest Act, 2002
to March 2020 (SARFAESI Act) and
March 31, 2022 Assets held for Building 148.63 Respective No Between the Security Interest
sale borrowers -January 2013 (Enforcement) Rules,
to March 2021 2002
NOTE 36: DISCLOSURE AS PER NON-BANKING FINANCIAL COMPANY-HOUSING FINANCE COMPANY

(RESERVE BANK) DIRECTIONS, 2021
The following additional disclosures have been given in compliance with:
(i) Non-Banking Financial Company-Housing Finance Company (Reserve Bank) Directions, 2021”” (‘RBI directions””) issued
by RBI vide notification number RBI/2020-21/73/DOR.FIN.HFC.CC.No.120/03.10.136/2020-21 dated February 17, 2021; and
(ii) RBI notification number RBI/2022-23/26/DOR.ACC.REC.No.20/21.04.018/2022-23 dated April 19, 2022 in relation to
Scale Based Regulation.


Note 36.1: Capital to Risk Assets Ratio (CRAR)

As at As at
Particulars
March 31, 2023 March 31, 2022
i) CRAR (%)^ 24.43 23.40

ii) CRAR – Tier I Capital (%) 22.40 20.73
iii) CRAR – Tier II Capital (%) 2.03 2.67
(iv) Amount of subordinated debt raised as Tier-II Capital - -
(v) Amount raised by issue of Perpetual Debt Instruments - -
^The CRAR is computed by dividing the total capital fund of the Company with aggregated risk-weighted assets/exposure.
Note 36.2: Reserve Fund u/s 29C of NHB Act, 1987

(J in crore)
Balance at the beginning of the year
(a) Statutory Reserve u/s 29C of NHB Act, 1987 167.97 126.97
(b) Amount of Special Reserve u/s 36 (1)(viii) of Income Tax Act, 1961 taken into account for the 1,134.76 1,010.76
purposes of Statutory Reserve u/s 29C of NHB Act, 1987
(c) Total 1,302.73 1,137.73
Addition / Appropriation / Withdrawal during the year
Add:
(a) Amount transferred u/s 29C of the NHB Act, 1987 167.00 41.00
(b) Amount of Special Reserve u/s 36 (1)(viii) of Income Tax Act, 1961 taken into account for the purpose 45.00 124.00
of Statutory Reserve u/s 29C of NHB Act, 1987
Less:
(a) Amount appropriated from Statutory Reserve u/s 29C of the NHB Act, 1987 -
(b) Amount withdrawn from Special Reserve u/s 36 (1)(viii) of Income Tax Act, 1961 which has been - -
taken into account for the purpose of provision u/s 29C of NHB Act, 1987
Balance at the end of the year
purposes of Statutory Reserve u/s 29C of the NHB Act, 1987
(c) Total 1,514.73 1,302.73
Note 36.3: Investments

(J in crore)
Value of Investments
(i) Gross value of Investments
(a) In India 3,266.57 3,472.02
(b) Outside India - -
(ii) Provisions for Depreciation
(a) In India 78.55 -
(iii) Net value of Investments
(a) In India 3,188.02 3,472.02
Movement of provisions held towards depreciation on investments
(i) Opening balance - -
(ii) Add: Provisions made during the year 78.55 -
(iii) Less: Write-off / Written-back of excess provisions during the year - -
(iv) Closing balance 78.55 -

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Current investments 870.85 1,237.54

Non-current investments 2,317.17 2,234.48
Total 3,188.02 3,472.02
Note 36.4: Derivatives

i) Forward Rate Agreement (FRA) / Interest Rate Swap (IRS)
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
(i) The notional principal of swap agreements 10,065.79 10,288.45

(ii) Losses which would be incurred if counterparties failed to fulfil their obligations under the 721.04 332.88
agreements
(iii) Collateral required by the HFC upon entering into swaps Nil Nil
(iv) Concentration of credit risk arising from the swaps@ 10,065.79 10,288.45
(v) The fair value of the swap book 660.04 242.25
@ The Company has entered into swap and forward agreements with various banks having almost equal exposure with each of them. Hence, there is
no concentration of credit risk which could be exposure to particular industries or swaps with highly geared companies.
ii) Exchange Traded Interest Rate (IR) Derivative – There is no exchange traded interest rate derivative.
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
(i) Notional principal amount of exchange traded IR derivatives undertaken during the year - -
(ii) Notional principal amount of exchange traded IR derivatives outstanding as on 31st March - -
(iii) Notional principal amount of exchange traded IR derivatives outstanding and not "highly effective" - -
(iv) Mark-to-market value of exchange traded IR derivatives outstanding and not "highly effective" - -
iii) Disclosure on Risk Exposure in Derivatives
A. Qualitative Disclosure
Particulars Details
a) the structure and organization for Company has a Risk Management Committee (RMC) constituted by the Board and has a Market Risk
management of risk in derivatives Management policy under its supervision. As a policy, the Company doesn’t trade in derivative products.
trading, As per specific Board approval, the Company has entered into derivative product for its ECB borrowing
for financing prospective buyers of eligible housing units under both “automatic route” and “approval
route” in terms of RBI guidelines.
b) the scope and nature of risk The RMC has put in place or enhanced the control measures to contain these risks. The Company has
measurement, risk reporting and a robust mechanism to ensure an ongoing review of systems, policies, processes and procedures to
risk monitoring systems, contain and mitigate risk that arise from time to time.
c) policies for hedging and / or The Company has not entered into any speculative derivative transaction (without underlying exposure).
mitigating risk and strategies The Company has entered in to derivative transaction only for hedging its foreign currency and interest
and processes for monitoring rate exposure against foreign currency borrowing which has been availed for financing prospective
the continuing effectiveness of buyers of eligible housing units. The derivative transactions entered into for hedging the ECB borrowings
hedges / mitigates, and are as per the applicable guidelines of RBI. The hedging is guided by the Board resolution authorising the
Company to borrow through ECB route and hedging of the underlying exposure.
d) accounting policy for recording The derivative contracts are initially recognised at fair value on the date of the transaction and all
hedge and non-hedge outstanding derivative transactions, on the date of balance sheet, are revalued at their fair market value,
transactions; recognition of on that date. Where Cash Flow hedge accounting is used, fair value changes of the derivative contracts
income, premiums and discounts; are recognised through the Cash Flow Hedge Reserve in the same period they are accrued. Any profit/
valuation of outstanding contracts; loss arising on cancellation/unwinding of derivative contracts are recognised as income or expenses for
provisioning, collateral and credit the period. Premium paid / discount received in advance on derivative contracts, which are not intended
risk mitigation. for trading or speculation purposes, are amortised over the period of the contracts, if such contracts
relate to monetary items as at the balance sheet date.


B. Quantitative Disclosure
(J in crore)
Particulars Currency Interest Rate Currency Interest Rate
Derivatives Derivatives Derivatives Derivatives
(i) Derivatives (Notional Principal Amount) 6,242.71 3,823.08 6,763.42 3,525.03

(ii) Marked to Market Positions
(a) Assets (+) 658.02 63.02 332.88 -
(b) Liability (-)* (61.00) - (50.08) (40.55)
(iii) Credit Exposure - - - -
(iv) Unhedged Exposures 3.25 3.25 96.84 4.82
* Including margin money received from counter party bank.
Note 36.5: Assignment / Securitisation

i) There are no SPVs sponsored by PNB Housing Finance Limited.
ii) During the year, the Company has not sold any financial assets to Securitisation / Reconstruction Company for Asset
Reconstruction (Previous year H Nil).
iii) Details of assignment transactions undertaken:

(J in crore)
(i) No. of accounts - -
(ii) Aggregate value (net of provisions) of accounts assigned - -
(iii) Aggregate consideration - -
(iv) Additional consideration realised in respect of accounts transferred in earlier years - -
(v) Aggregate gain / loss over net book value - -
During the year, the Company has sold some loans and advances measured at amortised cost under co-lending deals through
assignment mode, the details of which has been given in note 8.3 (b).
iv) During the year, the Company has not purchased any non-performing financial assets (Previous year H Nil).
v) During the year, the Company has sold non-performing financial assets details of which are given in note 8.3 (c) (Previous
year H Nil).
Note 36.6: Asset Liability Management

The residual maturity profile of Assets and Liabilities is carried out based on the current estimates and assumptions regarding
behavioural pattern of pre-payments/maturities and renewals. Maturity pattern of certain items of assets and liabilities are
as follows:

(J in crore)
Liabilities Assets
Particulars Foreign Foreign

Borrowings Market
Deposits Currency Net advances Investments currency
from banks borrowings
liabilities assets
1 day to 7 days 61.85 49.99 - - 251.03 91.46 -
8 days to 14 days 60.41 30.00 - - 660.38 103.00 -
15 days to 30/31 days 115.49 550.01 - - 609.72 676.38 -
Over 1 month to 2 months 384.95 1,177.51 600.00 - 1,091.87 - -
Over 2 months to 3 months 326.63 2,336.99 - 246.65 1,069.41 - -
Over 3 months to 6 months 981.24 3,557.89 499.00 - 3,081.30 155.65 -
Over 6 months to 1 year 1,858.52 3,150.19 300.00 3,823.09 5,638.22 416.15 -

(J in crore)
Liabilities Assets

Borrowings Market
liabilities assets
Over 1 year to 3 years 6,951.91 9,359.29 1,515.00 1,421.84 16,837.37 750.77 -
Over 3 years to 5 years 4,305.65 4,698.84 1,290.00 - 10,790.55 406.39 -
Over 5 years 2,197.25 772.41 1,028.44 - 17,878.68 588.22 -
Total 17,243.90 25,683.12 5,232.44 5,491.58 57,908.53 3,188.02 -

(J in crore)
Liabilities Assets
Particulars Foreign
Borrowings Market Foreign
Deposits Currency Net advances Investments
from banks borrowings currency assets
liabilities
1 day to 7 days 84.58 50.01 - - 215.67 100.02 -
8 days to 14 days 40.91 - - - 215.67 4.05 -
15 days to 30/31 days 146.45 1,789.99 350.00 - 492.96 14.85 -
Over 1 month to 2 months 390.97 912.58 225.00 - 907.72 351.33 -
Over 2 months to 3 months 399.36 950.19 300.00 51.17 891.45 63.28 -
Over 3 months to 6 months 1,216.92 2,379.68 1,255.00 619.72 2,579.66 59.72 -
Over 6 months to 1 year 2,167.12 3,896.26 430.00 284.28 4,758.27 370.20 -
Over 1 year to 3 years 6,839.39 7,680.93 2,054.00 4,510.52 14,633.45 1,344.30 -
Over 3 years to 5 years 4,285.23 3,188.78 1,500.00 532.09 11,516.28 470.00 -
Over 5 years 2,078.04 869.64 1,526.15 - 19,169.61 694.27 -
Total 17,648.97 21,718.06 7,640.15 5,997.78 55,380.74 3,472.02 -
Note 36.7: Exposure:

i) Exposure to Real Estate Sector
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
i) Direct Exposure
A. Residential Mortgages (including loan against residential property): 49,173.90 43,614.41
Lending fully secured by mortgages on residential property that is or will be occupied by
the borrower or that is rented. Exposure also include non-fund based (NFB) limits.
B. Commercial Real Estate: 10,167.47 14,325.27
Lending secured by mortgages on commercial real estates. Exposure also include non-fund based
(NFB) limits
C. Investments in Mortgage Backed Securities (MBS) and other securitised exposures –
i) Residential - -
ii) Commercial Real Estate - -
ii) Indirect Exposure
Fund based and non-fund based exposures on NHB and Housing Finance Companies (HFCs) - -
Total exposures to real estate sector 59,341.37 57,939.68
Note: While computing the above information, certain estimates, assumptions and adjustments have been made by the
Management which have been relied upon by the auditors.
ii) As on March 31, 2023, the Company does not have any exposure to Capital Market (Previous year H Nil).
iii) As on March 31, 2023, the Company has not financed any product of the parent company (Previous year H Nil).
iv) As on March 31, 2023, the Company has not exceeded the prudential exposure limit for single borrower or group
borrower (Previous year H Nil).


v) As on March 31, 2023, the Company has not given any unsecured advances (Previous year H Nil).
vi) As on March 31, 2023, all advances of the Company are secured against tangible assets and there are no advances against
intangible assets (Previous year H Nil).
vii) As on March 31, 2023, the Company has no exposures to group companies engaged in the real estate business (Previous
year H Nil).
viii) As on March 31, 2023, the Company has no Intra-group exposures with in the group companies as defined by RBI
(Previous year H Nil).
Note 36.8: Registration obtained from financial sector regulators

NHB : vide registration number 01.0018.01
Ministry of Corporate Affairs : L65922DL1988PLC033856
Note 36.9: Disclosure of Penalties imposed by NHB/RBI and other regulators:

During the financial year ended March 31, 2023, Regulators have imposed a penalty of H0.08 crore for delay in appointment of
Independent directors on Board pursuant to Regulation 17 (1) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
During the financial year ended March 31, 2022, Regulators has imposed a penalty of H0.06 crore on account of the below
mentioned observations:
(i) NHB has levied a penalty of H0.01 crore for Non adherence of policy circular no. 58 and 75 with respect to upfront
disbursal of sanctioned individual housing loan to the builders without linking the disbursals to various stages of
construction of housing project.
(ii) BSE Ltd & National Stock Exchange of India Ltd has imposed a penalty of H0.05 crore for delay in appointment
of Independent directors on Board pursuant to Regulation 17 (1) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
Note 36.10: Related Party Transactions

Name of the Related Party Nature of Relationship
i) Pehel Foundation Wholly owned Subsidiary
ii) PHFL Home Loans and Services Limited Wholly owned Subsidiary
iii) Punjab National Bank Promoter/Enterprise having Significant
Influence
iv) Quality Investment Holding Pcc (w.e.f. July 19, 2022) (formerly Quality Investment Holdings) Enterprise having Significant Influence
v) PNB Investment Services Limited Enterprise having Significant Influence
vi) PNB Gilts Limited Enterprise having Significant Influence
vii) PNB Metlife India Insurance Co Ltd Enterprise having Significant Influence
viii) Dakshin Bihar Gramin Bank Enterprise having Significant Influence
ix) Assam Gramin Vikash Bank Enterprise having Significant Influence
x) Tripura Gramin Bank Enterprise having Significant Influence
xi) Bangiya Gramin Vikash Bank Enterprise having Significant Influence
xii) Mr. Atul Kumar Goel (Non-Executive Nominee Director) (w.e.f. April 28,2022) Key Management Personnel
xiii) Mr. Sunil Kaul (Non-Executive Nominee Director) Key Management Personnel
xiv) Mr. Kapil Modi (Non-Executive Nominee Director) Key Management Personnel
xv) Mr. Neeraj Madan Vyas (Non-Executive and Non-Independent Director) Key Management Personnel
xvi) Mr. Chandrasekaran Ramakrishnan (Independent Director) Key Management Personnel
xvii) Mr. Nilesh S Vikamsey (Independent Director) Key Management Personnel
xviii) Mr. Ashwani Kumar Gupta (Independent Director)* Key Management Personnel
xix) Mr. Tejendra Mohan Bhasin (Independent Director) Key Management Personnel
xx) Mr. Sudarshan Sen (Independent Director) Key Management Personnel


xxi) Ms. Gita Nayyar (Independent Director) (w.e.f. May 29, 2021) Key Management Personnel
xxii) Mr Binod Kumar (Non- Executive, Nominee Director) (w.e.f. January 12, 2022)** Key Management Personnel
xxiii) Mr. Pavan Pal Kaushal (Independent Director) (w.e.f. October 27,2022) Key Management Personnel
xxiv)Mr. Dilip Kumar Jain (Non-Executive Nominee Director) (w.e.f. November 04,2022) Key Management Personnel
xxv) Mr. CH. S. S. Mallikarjuna Rao (Chairman and Non-Executive Director)*** Key Management Personnel
xxvi) Mr. Rajneesh Karnatak (Non-Executive Nominee Director) (w.e.f. January 19, 2021)**** Key Management Personnel
xxvii) Dr. Gourav Vallabh (Independent Director)***** Key Management Personnel
xxviii) Mr. Girish Kousgi (Managing Director and CEO) (w.e.f. October 21, 2022) Key Managerial Personnel
xxix) Mr. Hardayal Prasad (Managing Director and CEO)****** Key Managerial Personnel
xxx) Mr. Sanjay Jain (Company Secretary) Key Managerial Personnel
xxxi) Mr. Kapish Jain (Chief Financial Officer)******* Key Managerial Personnel
xxxii) Mr. Kaushal Mithani (Chief Financial Officer) (w.e.f. April 08, 2022)******** Key Managerial Personnel
xxxiii)Mr. Vinay Gupta (Chief Financial Officer) (w.e.f. October 26, 2022) Key Managerial Personnel
*Ceases to be Independent Director w.e.f. May 11, 2022
**Ceases to be Non-Executive Nominee Director w.e.f. October 21, 2022
***Ceases to be the Chairman and Non-Executive Director of the Company w.e.f. February 01, 2022
****Ceases to be Non-Executive Nominee Director w.e.f. October 21 2021
*****Ceases to be the Independent Director w.e.f. April 21, 2021
******Ceased to be Managing Director and CEO w.e.f. October 20, 2022
*******Ceases to be Chief Financial Officer w.e.f. April 07, 2022
********Ceases to be Chief Financial Officer w.e.f. August 23, 2022

Transactions with Related Parties
The nature & volume of transactions of the Company during the year, with the related parties were as follows. These transactions were carried out in ordinary course of
business and were at arm’s length price:
(J in crore)
Key Managerial Personnel/ Key Management Personnel/
Promoter/Enterprises having
Wholly owned subsidiaries Relatives of Key Managerial Relatives of Key Management Total
Particulars significant influence
Personnel Personnel
Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year
Transaction during the year:
Pehel Foundation
- Donation paid - - 10.85 16.21 - - - - 10.85 16.21

PHFL Home Loans and Services Limited
- Fees and commission income - - 99.47 106.48 - - - - 99.47 106.48
- Rental income - - 0.25 0.22 - - - - 0.25 0.22
- Commission & support services expense - - 134.79 101.07 - - - - 134.79 101.07
- Property service charges - - 0.87 - - - - - 0.87 -
- Reimbursement/settlement of expenses - - 0.51 0.64 - - - - 0.51 0.64
Punjab National Bank^
Corporate Overview
- Principal paid on assignment of loans 916.47 1,440.11 - - - - - - 916.47 1,440.11

- Interest & other charges paid on assignment 313.41 403.93 - - - - - - 313.41 403.93
of loans
- Servicing fees received on assignment of 5.37 7.04 - - - - - - 5.37 7.04
loan portfolio
- Fixed deposit made/renewed - 3,059.00 - - - - - - - 3,059.00
- Fixed deposit matured - 4,759.00 - - - - - - - 4,759.00
- Interest received on Fixed Deposits - 2.61 - - - - - - - 2.61
- Term loan raised 2,150.00 2,390.00 - - - - - - 2,150.00 2,390.00
Statutory Reports
- Term loan repaid 2,009.06 2,773.56 - - - - - - 2,009.06 2,773.56

- Interest Paid on Term Loan Installment / ECB 243.21 182.69 - - - - - - 243.21 182.69
/ OD
- Non Convertible debentures paid 90.00 - - - - - - - 90.00 -
- Interest on Non convertible debentures 7.35 - - - - - - - 7.35 -
- Rent & Maintenance Charges 0.38 0.38 - - - - - - 0.38 0.38
- Bank Charges 0.34 0.22 - - - - - - 0.34 0.22
PNB Investment Service Private Limited

- Fees paid 0.02 0.02 - - - - - - 0.02 0.02
221
(J in crore)
222
Personnel Personnel
PNB Gilts Limited
- Purchase of securities (principal to principal) - 294.99 - - - - - - - 294.99
- Purchase of securities (inter-mediatory) 165.40 1,062.36 - 165.40 1,062.36
- Redemption of securities 674.41 10.34 - - - - - - 674.41 10.34
- Service charges 0.01 0.01 - - - - - - 0.01 0.01

- Interest income on securities 231.71 164.76 - - - - - - 231.71 164.76

PNB Metlife India Insurance Co Ltd*
- Insurance premium given on behalf of 122.51 - - - - - - - 122.51 -
customer
- Insurance claims received on behalf of 2.77 - - - - - - - 2.77 -
customer
- Insurance premium received back 6.55 - - - - - - - 6.55 -
Assam Gramin Vikash Bank*
- Deposits received 15.00 - - - - - - - 15.00 -
- Interest on deposit received 4.68 - - - - - - - 4.68 -
- Deposits Matured (including interest) 5.80 - - - - - - - 5.80 -
Dakshin Bihar Gramin Bank*
Tripura Gramin Bank*
- Deposits Matured 10.00 - - - - - - - 10.00 -
Bangiya Gramin Vikash Bank*

Transactions with KMPs and relatives:
Sitting Fee and Commission paid to Directors
- Mr. Chandrasekaran Ramakrishnan - - - - - - 0.37 0.26 0.37 0.26
- Mr. Sudarshan Sen - - - - - - 0.36 0.21 0.36 0.21
- Mr. Nilesh S Vikamsey - - - - - - 0.43 0.29 0.43 0.29
- Mr. Ashwani Kumar Gupta - - - - - - 0.17 0.30 0.17 0.30
- Mr. Neeraj Madan Vyas - - - - - - 0.46 0.15 0.46 0.15
(J in crore)
Personnel Personnel
- Mr. Tejendra Mohan Bhasin - - - - - - 0.43 0.31 0.43 0.31
- Ms. Gita Nayyar - - - - - - 0.36 0.09 0.36 0.09
- Mr. Pavan Pal Kaushal - - - - - - 0.12 - 0.12 -
- Dr Gourav Vallabh - - - - - - - 0.15 - 0.15
- Mr. Shital Kumar Jain - - - - - - - 0.05 - 0.05
- Mrs. Shubhalakshmi Panse - - - - - - - 0.11 - 0.11
Rental expense: - -
- Mr. Tejendra Mohan Bhasin and Anjali Bhasin - - - - - - 0.23 0.21 0.23 0.21
Recovery against salary advance from KMP’s
- Mr. Sanjay Jain - - - - 0.03 - - - 0.03 -
Repayment of security deposit
- Mr. Hardayal Prasad - - - - 0.04 - - - 0.04 -
Remuneration expense#:
- Mr. Girish Kousgi - - - - 1.14 - - - 1.14 -
- Mr. Vinay Gupta - - - - 3.97 - - - 3.97 -
Corporate Overview
- Mr. Hardayal Prasad - - - - 2.62 3.07 - - 2.62 3.07

- Mr. Sanjay Jain - - - - 0.81 0.70 - - 0.81 0.70
- Mr. Kapish Jain - - - - 0.18 1.40 - - 0.18 1.40
- Mr. Kaushal Mithani - - - - 0.40 - - - 0.40 -
^ Excluding running current / overdraft account transactions.
# Excluding perquisites on exercise of stock options during the year.
(J in crore)
Promoter/Enterprises having Key Managerial Personnel/Relatives Key Management Personnel/Relatives
Wholly owned subsidiaries Total
significant influence of Key Managerial Personnel of Key Management Personnel
Statutory Reports
Particulars As at As at As at As at As at As at
As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
2023 2022 2023 2022 2023 2022
Outstanding balances#
Receivables
- Servicing fees receivable on 0.44 0.61 - - - - - - 0.44 0.61
assignment on loans
Payables

- Term loans 2,457.93 2,317.00 - - - - - - 2,457.93 2,317.00
- External Commercial Borrowings## 2,178.75 2,008.89 - - - - - - 2,178.75 2,008.89
223
(J in crore)
224
2023 2022 2023 2022 2023 2022
- Interest accrued on term loans and 2.23 0.49 - - - - - - 2.23 0.49
external commercial borrowings
- Payable on assignment on loans 79.29 124.94 - - - - - - 79.29 124.94
PHFL Home Loans and Services Limited

Receivables
Others (net) - - - 27.95 - - - - - 27.95
Payable
Others (net) - - 14.55 - - - - - 14.55 -
Key Managerial Personnel
Receivables
- Mr. Sanjay Jain - - - - 0.04 0.03 - - 0.04 0.03
Payables
- Mr. Hardayal Prasad - - - - - 0.04 - - - 0.04
Retirement benefits (as per actuarial
valuation)
- Mr. Girish Kousgi - - - - 0.10 - - - 0.10 -
- Mr. Vinay Gupta - - - - 0.05 - - - 0.05 -

- Mr. Sanjay Jain - - - - 0.33 0.31 - - 0.33 0.31
- Mr. Kapish Jain - - - - - 0.27 - - - 0.27
#Excluding running current account balances.
##Including mark to market adjustment.
* SEBI vide notification No. SEBI/LAD-NRO/GN/2021/55 dated November 9, 2021 has enhanced the definitation of related party with effect from April 1, 2022. Hence, the transactions and outstanding
balances has been reported from the date of applicability.
The policy on dealing with Related Party Transactions is available on our website www.pnbhousing.com

Note 36.11: Diagrammatic representation of group structure along with holding percentage is tabulated below. Further, the
Company has complied with the provisions relating to number of layers as prescribed under clause (87) of section 2 of the
Comapnies Act 2013, read with Companies (Restriction on number of Layers) Rules, 2017.

(Promoter)
(32.52%)
PNB Housing
Finance Limited
(100%)
PHFL Home Loans Pehel

and Services Limited Foundation
Note 36.12: Rating assigned by Credit Rating Agencies and migration of rating during the year are as follows:
Nature of Instrument As at March 31, 2023 As at March 31, 2022 Migration during the year
Deposits CRISIL AA (Outlook - Stable) CRISIL FAA+ (Outlook-Negative) Upgraded
CARE AA (Outlook - Stable) CARE AA (Outlook-Stable) No change
Long term bonds (Secured and Tier- CRISIL AA (Outlook - Stable) CRISIL AA (Outlook-Negative) Upgraded
II bonds) CARE AA (Outlook - Stable) CARE AA (Outlook-Stable) No change
IND AA (Outlook - Stable) IND AA (Outlook-Negative) Upgraded
ICRA AA (Outlook - Stable) ICRA AA (Outlook-Negative) Upgraded
Commercial Paper CRISIL A1+ CRISIL A1+ No change
CARE A1+ CARE A1+ No change
Bank Term Loan CRISIL AA (Outlook - Stable) CRISIL AA (Outlook-Negative) Upgraded
Note 36.13: Remuneration of Directors: Details of Remuneration of Directors are disclosed in Form No. MGT - 7.
Note 36.14: Management: Management Discussion and Analysis report shall be referred for the relevant disclosures.
Note 36.15: During the year, no transaction was accounted which was related to prior period in terms of Ind AS 8
Note 36.16: During the year, no item of revenue recognition has been postponed except as disclosed in accounting policy for
revenue recognition (Refer Note 2.3).
Note 36.17: Consolidated Financial Statements (CFS): Consolidated Financial Statements shall be referred for the
relevant disclosures.

Note 36.18: Provisions and Contingencies:

Break up of ‘Provisions and Contingencies’ shown under the head Expenditure in Statement of Profit and Loss is given
as follows:
(J in crore)
1. Provisions for depreciation on Investment 78.55 -
2. Provision made towards Income tax 83.38 242.56
3. Provision towards NPA (1,121.82) 525.95
4. Provision for Standard Assets
i) Teaser Loans - -
ii) CRE (10.11) (150.16)
iii) CRE – RH (14.86) (302.84)
iv) Other Loans 20.69 (58.11)
Total (i+ii+iii+iv) (4.28) (511.11)
5. Other Provision and Contingencies (Refer Note 2.21) 0.59 (0.49)
6. Provision for Stock of Acquired Properties - 7.86
Note 36.19: Break-up of Loan & Advances and Provisions thereon:

The Company has complied with the norms prescribed by the regulator for recognising Non-Performing Assets (NPA) in
preparation of accounts. As per the norms, NPAs are recognised on the basis of more than 90 days overdue. NPAs are to be
treated as Bad & Doubtful, if they remain outstanding for more than 15 months. The Company has made adequate provisions
on Non-Performing Assets and Standard Assets in respect of Housing and Non-Housing Loans as prescribed under directions
issued by the regulator.
Pursuant to the RBI circular dated November 12, 2021 “”Prudential norms on Income Recognition, Asset Classification and
Provisioning pertaining to Advances - Clarifications””, the Company has implemented the requirements and aligned its
definition of default accordingly.
(J in crore)
Housing Non-Housing
Particulars As at As at As at As at
Standard Assets
a) Total Outstanding Amount 41,288.04 37,715.43 15,781.97 15,518.09
b) Provision made 496.44 489.83 283.01 293.91
Sub-Standard Assets
a) Total Outstanding Amount 255.58 1,885.43 157.95 616.92
b) Provision made 72.95 467.79 25.98 252.93
Doubtful Assets - Category-I
a) Total Outstanding Amount 1,080.94 567.82 204.18 270.02
b) Provision made 264.15 228.37 54.34 108.43
Doubtful Assets - Category-II
a) Total Outstanding Amount 266.09 990.36 211.30 351.60
b) Provision made 114.65 603.64 69.27 101.17
Doubtful Assets - Category-III
b) Provision made 25.02 4.37 20.19 4.96
Loss Assets
b) Provision made 2.33 0.30 4.51 3.24
TOTAL
b) Provision made 975.54 1,794.30 457.30 764.64


Note 36.20: Draw Down from Reserves: During the year there were no draw down from Reserves (Previous year H Nil).
Note 36.21: Concentration of Public Deposits

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total deposits of twenty largest depositors 2,070.75 2,217.83

Percentage of deposits of twenty largest depositors to total deposits 13.32% 14.77%
Note 36.22: Concentration of Loans & Advances

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total loans & advances to twenty largest borrowers 3,821.86 6,577.61

Percentage of loans & advances to twenty largest borrowers to total advances 6.44% 11.35%
Note 36.23: Concentration of all Exposure (including off-balance sheet exposure)

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total exposure to twenty largest borrowers /customers 3,950.27 7,123.01

Percentage of exposures to twenty largest borrowers / customers to total exposure of the HFC on 6.30% 11.52%
borrowers / customers
Note 36.24: Concentration of NPAs

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total Exposure to top ten NPA accounts 944.06 2,716.53
Note 36.25: Sector-wise NPAs

(J in crore)
Percentage of NPAs to Total Advances
in that sector
As at As at
Particulars
March 31, 2023 March 31, 2022
A. Housing Loans: 3.85 8.39

1. Individuals 2.00 3.38
2. Builders/Project Loans 24.22 36.97
3. Corporates 9.37 8.77
4. Others (specify) - -
B. Non-Housing Loans: 3.76 7.47
2. Builders/Project Loans - 37.87

Note 36.26: Movement of NPAs

(J in crore)
(I) Net NPAs to Net Advances (%) 2.76% 5.22%
(II) Movement of NPAs (Gross)
a) Opening balance 4,706.17 2,998.41
b) Additions during the year 743.44 3,962.68
c) Reductions during the year 3,178.25 2,254.92
d) Closing balance 2,271.36 4,706.17
(III) Movement of Net NPAs
(IV) Movement of provisions for NPAs (excluding provisions on standard assets)
b) Provisions made during the year 237.06 948.71
c) Write-off/write-back of excess provisions 1,358.88 422.76
d) Closing balance 653.39 1,775.21
Note 36.27: As on March 31, 2023, the Company does not have any assets outside the country (Previous year H Nil).
Note 36.28: As on March 31, 2023, the Company does not have any Off-Balance Sheet SPVs sponsored which are required to
be consolidated as per accounting norms (Previous year Nil).
Note 36.29: (A) Disclosure of Complaints

Complaints received by the Company from its customers
a) No. of complaints pending at the beginning of the year 10 29
b) No. of complaints received during the year 1,804 2,281
c) No. of complaints disposed during the year 1,804 2,300
c) (i) Of which, no. of complaints rejected by the Company 168 129
d) No. of complaints pending at the end of the year 10 10
(B) TOP FIVE GROUNDS OF COMPLAINTS RECEIVED BY THE COMPANY FROM CUSTOMERS:
Number of Number of
% increase/ decrease Number of Number of
complaints complaints
in the number of complaints complaints
Grounds of complaints (i.e. complaints relating to) pending at the received
complaints received pending at the pending beyond
beginning of during the
over the previous year end of the year 30 days
the year year
Current Year
Ground - 1 Pre Closure Related - 374 34.00 2 -
Ground - 2 ROI Conversion/ Rate repricing - 145 (42.00) - -
Ground - 3 PMAY Application - 101 (54.00) - -
Ground - 4 Property Papers Related - 90 (27.00) - -
Ground - 5 Pre-EMI/EMI - 81 (2.00) - -
Ground - 6 Others 10 1,013 (22.00) 8
Total 10 1,804 (21.00) 10 -

Previous Year
Ground - 1 Pre Closure Related 1 280 (2.00) - -
Ground - 2 ROI Conversion/ Rate repricing 1 248 (43.00) - -
Ground - 3 PMAY Application 6 218 (19.00) - -
Ground - 4 Property Papers Related 3 123 (19.00) - -
Ground - 5 Preclosure Charges Related 1 121 133.00 - -
Ground - 6 Others 16 1,291 (19.00) 10 10
Total 28 2,281 (22.00) 10 10


Note 36.30: As on March 31, 2023, the Company has not granted any loans and has no outstanding loans against collateral
gold jewellery (Previous year H Nil).
Note 36.31: Deposit includes Public Deposits as defined in Paragraph 4.1.30 of RBI Directions, are secured by floating charge
on the Statutory Liquid Assets maintained in terms of sub-sections (1) & (2) of Section 29B of the National Housing Bank Act,
1987. As on March 31, 2023, the public deposits (including accrued interest) outstanding amounts to H15,545.96 crore (Previous
year H15,019.95 crore).
The Company is carrying Statutory Liquid Assets amounting to H2,276.42 crore (Previous year H2,234.18 crore).
Note 36.32: As on March 31, 2023, the Company operates within India and does not have any joint venture or
overseas subsidiary.
Note 36.33: Liquidity Risk Management and Liquidity Coverage Ratio
(a) Liquidity Risk Management disclosures as at March 31, 2023:

(i) Funding Concentration based on significant counterparty (both deposits and borrowings)
(J in crore)
Number of Significant
As at Amount % of total deposits* % of total liabilities
Counterparties^
March 31, 2023 15 32,918 NA 58.94%
March 31, 2022 16 29,519 NA 52.85%
*Company does not have any depositor who would be eligible as significant counterparty
^Significant counterparty is as defined in RBI Circular RBI/2019-20/88 DOR.NBFC (PD) CC.No.102/03.10.001/2019-20 dated November 4, 2019 on
Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies. Funding concentration based on
significant counterparty has been computed using latest beneficiary position instead of original subscribers.
(ii) Top 20 large deposits
(J in crore)
As at As at
Particulars % of total deposits % of total deposits
March 31, 2023 March 31, 2022
Total deposits of top twenty largest 2,109 12.23% 2,761 15.64%

depositors
(iii) Top 10 borrowings
(J in crore)
As at As at
Particulars % of total liabilities % of total liabilities
March 31, 2023 March 31, 2022
Total exposure of top ten lenders 28,429 50.90% 25,653 45.93%
(iv) Funding Concentration based on significant instrument/product
(J in crore)
As at As at
Name of the instrument/product^^ % of total liabilities % of total liabilities
March 31, 2023 March 31, 2022
1) Secured Non-Convertible Debentures 3,994.09 7.15% 6,201.97 11.10%

2) Commercial Papers - - - -
3) Refinance Facility from NHB 3,046.20 5.45% 4,665.21 8.35%
4) Bank Facilities (Long Term + Short Term) 22,636.92 40.53% 17,052.85 30.53%
5) External Commercial Borrowings 5,491.58 9.83% 5,997.78 10.74%
6) Deposits 17,243.90 30.88% 17,648.97 31.60%
7) Subordinated Tier-II Non-Convertible 1,238.35 2.22% 1,438.18 2.58%
Debentures
Total Borrowings 53,651.04 96.06% 53,004.96 94.91%
Total Liabilities 55,852.39 55,848.76
^^Significant instrument/product is as defined in RBI Circular RBI/2019-20/88 DOR.NBFC (PD) CC.No.102/03.10.001/2019-20 dated November 4, 2019
on Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies.

(v) Stock ratios

(J in crore)
Particulars as a % of total as a % of total as a % of total as a % of total as a % of total as a % of total
public funds liabilities assets public funds liabilities assets
Commercial papers - - - - - -
Non-convertible Debentures NA NA NA NA NA NA
(original maturity of less than 1
year)
Other short term liabilities* 7.91% 7.60% 6.35% 6.89% 6.54% 5.56%
* Includes short term funds with original maturity of less than 1 year and includes funds from Refinance from NHB, Short Term Lines / OD / WCDL
(vi) Institutional set-up for liquidity risk management Management regularly reviews the position of cash and
cash equivalents by aligning the same with the projected
The Board of Directors of the Company has constituted
maturity of financial assets and financial liabilities, economic
the Asset Liability Management Committee (ALCO) and the
environment, liquidity position in the financial market,
Risk Management Committee. The Board has the overall
anticipated pipeline of future borrowing & future liabilities and
responsibility for management of liquidity risk. The Board
threshold of minimum liquidity defined in the ALM policy with
decides the strategy, policies and procedures to manage
additional liquidity buffers as management overlay.
liquidity risk in accordance with the liquidity risk tolerance/
limits approved by it. The Risk Management Committee
(b) Disclosure pursuant to Reserve
(RMC), which is a committee of the Board, is responsible for
Bank of India Circular DOR.FIN.HFC.
evaluating and monitoring the integrated risk management
CC.No.120/03.10.136/2020-21 dated February
system of the Company including liquidity risk. The ALCO
17, 2021 pertaining to Liquidity Risk Management
is responsible for ensuring adherence to the liquidity risk
Framework for Housing Finance Companies
tolerance/limits set out in the Board approved Asset Liability
Management (ALM) policy. The role of the ALCO with respect A. Qualitative Disclosure
to liquidity risk includes, inter alia, decision on desired
As per above circular, all deposit taking HFCs
maturity profile for assets & liabilities, responsibilities and
irrespective of their asset size, shall maintain a liquidity
controls for managing liquidity risk and overseeing the
buffer in terms of Liquidity Coverage Ratio (LCR) which
liquidity position of the Company. The ALM Policy is reviewed
will promote resilience of HFCs to potential liquidity
periodically to realign the same pursuant to any regulatory
disruptions by ensuring that they have sufficient High
changes/changes in the economic landscape or business
Quality Liquid Asset (HQLA) to survive any acute
needs and tabled to the Board for approval.
liquidity stress scenario lasting for 30 days. The timeline
on adhering to LCR guidelines are tabulated below.
Periods December 01, 2021 December 01, 2022 December 01, 2023 December 01, 2024 December 01, 2025
Minimum LCR (%) 50% 60% 70% 85% 100%
The objective of the LCR is to promote an environment expected cash inflow and outflow for the next calendar
wherein balance sheet carry a strong liquidity for month. To compute stressed cash outflow, all expected
short term cash flow requirements. To ensure strong and contracted cash outflows are considered by applying
liquidity NBFCs are required to maintain adequate pool a stress of 15%. Similarly, inflows for the Company is
of unencumbered HQLA which can be easily converted arrived at by considering all expected and contracted
into cash to meet their stressed liquidity needs for 30 inflows by applying a haircut of 25%.
calendar days. The LCR is expected to improve the
The main drivers of LCR are:
ability of financial sector to absorb the shocks arising
from financial and/or economic stress, thus reducing the Outflows comprises of:
risk of spill over from financial sector to real economy.
a) All the contractual debt repayments and
The Liquidity Risk Management of the Company is interest payments
managed by the ALCO under the governance of Board
b) Expected operating expense based on FY 2021-22
approved Liquidity Risk Framework comprising of Asset
Liability Management policy, Contingency Funding Policy, c) Committed credit facilities contracted with
Funding Strategy and Resource Mobilization Policy, and customers for both sanctioned but partly disbursed
Market Risk Management Policy. The LCR levels for the cases and sanctioned but undisbursed cases based
balance sheet date is derived by arriving the stressed on historical experience and other expected or


contracted cash outflows like expected pay-outs public deposits accepted by the Company. The LCR is
under contracted direct assignment deals. computed by dividing the stock of HQLA by its total net
cash outflows over one-month stress period.
The potential debt which may be recalled by the lenders
on account of covenant breach has not been considered LCR guidelines are effective from December 01,
since the Company has not experienced such debt recall 2021. LCR has been calculated and monitored as per
by any lender so far despite having breached covenants methodology prescribed in the RBI circular. LCR has
in the past. been calculated as a simple average of the total number
of days in a quarter on daily basis. The Company is
Inflows comprises of:
compliant with maintenance of stipulated LCR. Further,
a) Expected receipt (scheduled EMIs) from all the Company has been monitoring the LCR at monthly
performing loans intervals for the period of April 2022 to March 2023.
The maximum and minimum daily required HQLA for
b) Liquid investment either in the form of short tenure
regulatory compliance has been H1,650.01 crore and
Fixed Deposits with banks or in units of Debt
H585.72 crore respectively for the period of April 22 to
Mutual Fund Schemes (like Overnight Liquid and
March 23.
Money Market Schemes) which are unencumbered
and have not been considered as part of HQLA The Company maintains diversified sources of funding
comprising short/long term loans from banks, Non-
c) Sanctioned and undrawn lines of credit from banks.
Convertible Debentures (NCDs), External Commercial
For the purpose of HQLA the Company considers Borrowings (ECBs), Deposits, Refinance from National
unencumbered government securities and cash/bank Housing Bank (NHB) and Commercial Papers (CPs).
balances with nil haircuts. The funding pattern is reviewed on monthly basis by
the management and on quarterly basis by the ALM
The unencumbered government securities held as part
Committee and Risk Management Committee.
of HQLA are identified separately from the government
securities which are lien marked in favour of Trustee for
Funding profile of the Company is tabulated below:

Particulars
(J in crore) % (J in crore) %
Secured Non-Convertible Debentures 3,994.09 6.55% 6,201.97 9.99%

Refinance Facility from NHB 3,046.20 5.00% 4,665.21 7.51%
Bank Facilities (Long Term + Short Term) 22,636.92 37.11% 17,052.85 27.46%
External Commercial Borrowings 5,491.58 9.00% 5,997.78 9.66%
Deposits 17,243.90 28.27% 17,648.97 28.42%
Subordinated Tier-II Non-Convertible Debentures 1,238.35 2.03% 1,438.18 2.32%
Total (a) 53,651.04 53,004.96
Assignment of loans (b) 7,344.70 12.04% 9,088.02 14.64%
Total (a+b) 60,995.74 100.00% 62,092.98 100.00%
Derivative exposures and potential collateral calls: could be potential future margin calls based on MTM
To hedge ECBs the Company enters into derivative movements. However, the Company has received MTM
transactions. All the derivatives of the Company are for of H22.33 crore (Previous year H Nil).
hedging purpose and not for any speculative or trading
Currency mismatch in LCR: There is no mismatch
purpose. As on March 31, 2023, the notional amount of
required to be reported in LCR as on March 31, 2023
outstanding derivatives is H10,065.79 crore (Previous
and March 31, 2022 since all the Foreign Currency
year H10,288.45 crore) with net positive MTM of
liabilities are reinstated to H as per the corresponding
H682.37 crore (Previous year H242.25 crore). Further,
derivative/ forward deals and closing RBI reference /
the Company has executed bilateral Credit Support
FBIL exchange rates.
Agreement with one of its derivative counterparty. As on
March 31, 2023 there is no outstanding margin but there

(J in crore)
Quarter ended March 2023 Quarter ended December 2022
Particulars Total Unweighted** Total Weighted# Total Unweighted** Total Weighted#
Value Value Value Value
High Quality Liquid Assets

Total High Quality Liquid Assets (HQLA) 819.27 819.27 967.19 967.19
(i) Cash in hand & Bank balance 90.83 90.83 74.24 74.24
(ii) CP/Corporate Bond 247.68 247.68 250.66 250.66
(iii) Government securities 480.76 480.76 642.29 642.29
Cash Outflows
Deposits 428.73 493.04 450.07 517.58
Unsecured wholesale funding 32.78 37.70 133.70 153.76
Secured wholesale funding 1,205.18 1,385.96 620.27 713.31
Additional requirements, of which
(i) Outflows related to derivative exposures and other 9.16 10.53 17.81 20.48
collateral requirements
(ii) Outflows related to loss of funding on debt products - - - -
(iii) Credit and liquidity facilities - - - -
Other contractual funding obligations 1,113.66 1,280.71 1,095.24 1,259.53
Other contingent funding obligations 111.76 128.52 134.43 154.59
Total Cash Outflows 2,901.27 3,336.46 2,451.52 2,819.25
Cash Inflows
Secured lending - - - -
Inflows from fully performing exposures 790.32 592.74 765.79 574.34
Other cash inflows 5,941.67 4,456.25 5,081.98 3,811.49
Total Cash Inflows 6,731.99 5,048.99 5,847.77 4,385.83
Total Adjusted Value
Total HQLA 819.27 967.19
Total Net Cash Outflows 834.11 704.81
Liquidity Coverage Ratio (%) 98.22% 137.23%
Required LCR in % 60.00% in % 60.00%
in J 500.47 in J 422.89
(J in crore)
Quarter ended September 2022 Quarter ended June 2022

Cash Outflows
Deposits 531.53 611.26 488.89 562.22
Unsecured wholesale funding - - 82.42 94.78
Secured wholesale funding 1,523.65 1,752.20 1,320.75 1,518.86


(J in crore)

Cash Inflows
Total HQLA 978.79 998.92
in J 467.74 in J 441.41
(J in crore)
Quarter ended March 2022 Month ended December 2021*

Total High Quality Liquid Assets (HQLA) 1,146.99 1,146.99 1,131.74 1,131.74
(ii) Government securities 1,038.32 1,038.32 1,041.29 1,041.29
Cash Outflows
Deposits 526.95 605.99 385.94 443.83
Unsecured wholesale funding 144.44 166.11 - -
(i) Outflows related to derivative exposures and other - - - -
Cash Inflows

(J in crore)

Total HQLA 1,146.99 1,131.74
Total Net Cash Outflows 1,031.09 1,339.30
in H 515.55 in H 669.65
* Since LCR has been made applicable for HFCs from December 01, 2021.
**Unweighted values are calculated as outstanding balances maturing or callable within 30 days (for inflows and
outflows).
#Weighted values are calculated after the application of respective haircuts (for HQLA) and stress factors on inflow
and outflow.
Note 36.34: Disclosure as per Annexure III of RBI directions:

(J in crore)
Amount Amount
Particulars
outstanding overdue
S.No Liabilities side
1 Loans and advances availed by the HFC inclusive of interest accrued thereon but not paid:
(a) Debentures : Secured 4,098.77 -
: Unsecured 1,239.44 -
(other than falling within the meaning of public deposits)
(b) Deferred Credits - -
(c) Term Loans 31,331.38 -
(d) Inter-corporate loans and borrowing 1,701.66 -
(e) Commercial Paper - -
(f) Public Deposits 15,545.96 -
(g) Other Loans (specify nature) - -
2 Break-up of (1)(f) above (Outstanding public deposits inclusive of interest accrued thereon but
not paid):
(a) In the form of Unsecured debentures - -
(b) In the form of partly secured debentures i.e. debentures where there is a shortfall in the value - -
of security
(c) Other public deposits 15,545.96 -
(J in crore)
Amount
Assets side
outstanding
3 Break-up of Loans and Advances including bills receivables [other than those included in (4) below]:
(a) Secured 59,341.37
(b) Unsecured -
4 Break up of Leased Assets and stock on hire and other assets counting towards asset financing activities
(i) Lease assets including lease rentals under sundry debtors
(a) Financial lease -
(b) Operating lease -
(ii) Stock on hire including hire charges under sundry debtors
(a) Assets on hire -
(b) Repossessed Assets -


(J in crore)
Amount
Assets side
outstanding
(iii) Other loans counting towards asset financing activities
(a) Loans where assets have been repossessed (net of provision) -
(b) Loans other than (a) above -
5 Break-up of Investments
Current Investments
1. Quoted
(i) Shares
(a) Equity -
(b) Preference -
(ii) Debentures and Bonds 457.67
(iii) Units of mutual funds -
(iv) Government Securities 413.18
(v) Others -
2. Unquoted
Shares
(a) Equity -
(b) Preference -
(ii) Debentures and Bonds -
(iii) Units of mutual funds
(iv) Government Securities -
(v) Others (please specify) -
Long Term Investments
1. Quoted
(i) Shares
(a) Equity -
(b) Preference -
(iv) Government Securities 2,276.42
2. Unquoted
Shares
(a) Equity 0.30
(b) Preference -
(v) Others (Security receipts in ACRE Trust) 40.45

6 Borrower group-wise classification of assets financed as in (3) and (4) above:

(J in crore)
Amount net of provisions
Category
Secured Unsecured Total
1. Related Parties
(a) Subsidiaries - - -
(b) Companies in the same group - - -
(c) Other related parties - - -
2. Other than related parties 57,908.53 - 57,908.53
Total 57,908.53 - 57,908.53
7 Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and
unquoted) :
(J in crore)
Market Value /
Total Book Value
Category Break up or fair
(net of provisions)
value or NAV
1. Related Parties
(a) Subsidiaries* 130.12 0.30
(b) Companies in the same group - -
(c) Other related parties - -
2. Other than related parties 3,275.17 3,187.72
Total 3,405.29 3,188.02
8 Other information
(J in crore)
Particulars Amount
1. Gross Non-Performing Assets
(a) Related Parties -
(b) Other than related parties 2,271.36
2. Net Non-Performing Assets
Assets acquired in satisfaction of debt -
* Equity capital contributed by the Company has been considered as break up value for subsidiary formed under section 8 of the Company Act 2013 as
the subsidiary is prohibited to give any right over its profits to any of its members.
Note 36.35: Breach of covenant of loans availed and debt securities issued
(J in crore)
Breach of Status as on Status as on
Loans/debt securities Current Year Previous Year Details
Covenant March 31, 2023 March 31, 2022
External Commercial 246.61 614.04 Breach of NPA Waived off Breach Waiver received till March 31,
Borrowings - Asian % 2023; Loan matures in June 2023
Development Bank
External Commercial 1655.72 1516.14 Breach of NPA No Breach Breach The NPA financial covenant
Borrowings - SBI London % parameter was reset and waiver
was received upto December 31,
2022.
Borrowings - JICA % parameter was reset and waiver
was received upto June 30,
2022.


(J in crore)
Breach of Status as on Status as on
Loans/debt securities Current Year Previous Year Details
Covenant March 31, 2023 March 31, 2022
Borrowings - PNB Dubai % parameter was reset and waiver
was received upto June 30,
2022.
Borrowings - PNB Hong % parameter was reset and waiver
Kong was received upto June 30,
2022.
External Commercial 0.00 556.91 Breach of NPA - Breach The NPA financial covenant
Borrowings - Sumitomo % parameter was reset as on March
Mitsui Banking 31, 2022.
Corporation
Citi Bank-Term Loan 0.00 23.00 Breach of NPA - - Loan matured during Q4 FY 22
%
Bank of Baroda-Term 0.00 1776.76 Breach of NPA - Breach The NPA financial covenant
Loan % parameter was reset in fresh
sanction received in Oct 2021.
Indian Bank-Term Loan 1275.00 1187.48 Breach of NPA No Breach Breach Covenant was waived off in fresh
% sanction received in September
2022
NCD-Karnataka Bank 50.00 50.00 Breach of NPA No Breach Breach Waiver was received upto March
% 31, 2023
NCD-SBI DFHI 30.00 30.00 Breach of NPA No Breach Breach Waiver was received upto March
% 31, 2023
NCD-Reliance General 50.00 50.00 Breach of NPA No Breach Breach Waiver was received upto March
Insurance % 31, 2023
NCD-IDBI Bank 250.00 250.00 Breach of NPA No Breach Breach Waiver was received upto March
% 31, 2023
NCD-UCO Bank 75.00 75.00 Breach of NPA No Breach Breach Waiver was received upto March
% 31, 2023
ISDA-IndusInd Bank 124.00 114.00 Breach of NPA Waived off Breach The NPA financial covenant
(Interest Rate Swap) % parameter was reset and waiver
was received upto March 31,
2023.
ISDA-IndusInd Bank 124.00 114.00 Breach of NPA Waived off Breach The NPA financial covenant
(Principal Only Swap) % parameter was reset and waiver
was received upto March 31,
2023.

Note 36.36: RBI vide its circular number RBI/2020-21/60/DOR.NBFC (HFC) CC.NO 118/03.10.136/2020-21 dated October 22,
2020 defined the principal business criteria for HFCs. Further, it also states that those HFCs which does not fulfil the defined
criteria as on October 22, 2020 has an option to submit a board approved plan including a roadmap to fulfil the defined criteria
and timeline for transition to RBI with in three months from the date of circular.
In compliance with the above circular, the Company has submitted board approved plan along with roadmap to fulfil the defined
criteria and timeline for transition to RBI on January 21, 2021.
Details of principal business criteria as follows:

% of total assets towards housing % of total assets towards housing % of total assets towards housing % of total assets towards housing
finance finance for individuals finance finance for individuals
64.91% 59.21% 63.54% 53.62%
Note 36.37: In compliance with RBI notification number RBI/DNBS/2016-17/49/Master Direction DNBS.
PPD.01/66.15.001/2016-17 dated September 29, 2016, during the year the Company has reported eight fraud cases in relation
to loans advanced to the borrowers amounting to H5.44 crore to NHB (Previous year H4.04 crore in relation to four fraud cases
for loans advanced to the borrowers and one fraud case in relation to deposits).
Note 36.38: In compliance with RBI circular number RBI/2019-20/170/DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated
March 13, 2020, the comparison between provisions required under IRACP and impairment allowances made under Ind AS 109
is tabulated below:
(J in crore)
Difference
Asset Loss Allowances Net Provisions between Ind AS
Gross Carrying
classification (Provisions) as Carrying required as 109 provisions
Asset Classification as per RBI Norms (1) Amount as per
as per Ind AS required under Amount per IRACP and IRACP
Ind AS 109 (3)
109 (2) Ind AS 109 (4) (5)=(3)-(4) norms (6) norms (7) =
(4)-(6)
Performing Assets
Standard Stage 1 55,064.88 524.82 54,540.06 180.94 343.88
Stage 2 2,005.13 254.63 1,750.50 6.95 247.68
Subtotal 57,070.01 779.45 56,290.56 187.89 591.56
Non-Performing Assets (NPA)
Substandard Stage 3 413.53 98.93 314.60 59.88 39.05
Doubtful - up to 1 year Stage 3 1,285.12 318.49 966.63 301.69 16.80
1 to 3 years Stage 3 477.39 183.92 293.47 184.13 (0.21)
More than 3 years Stage 3 88.48 45.21 43.27 68.95 (23.74)
Subtotal for doubtful 1,850.99 547.62 1,303.37 554.77 (7.15)
Loss Stage 3 6.84 6.84 - 5.40 1.44
Subtotal for NPA 2,271.36 653.39 1,617.97 620.05 33.34
Other items such as guarantees, loan Stage 1 757.04 2.40 754.64 - 2.40
commitments, etc. which are in the scope Stage 2 - - - - -
of Ind AS 109 but not covered under current
Income Recognition, Asset Classification and Stage 3 - - - - -
Provisioning (IRACP) norms
Subtotal 757.04 2.40 754.64 - 2.40
Total Stage 1 55,821.92 527.22 55,294.70 180.94 346.28
Stage 2 2,005.13 254.63 1,750.50 6.95 247.68
Stage 3 2,271.36 653.39 1,617.97 620.05 33.34
Total 60,098.41 1,435.24 58,663.17 807.94 627.30


Note 36.39: In compliance with RBI circular number RBI/2020-21/16/DOR.No.BP.BC/3/21.04.048/2020-21 dated August 06,
2020, the disclosure in relation to resolution plan implemented under the Resolution Framework for COVID-19-related stress is
tabulated below:
For half-year ended March 31, 2023

(J in crore)
Exposure to accounts
Of (A), Exposure to accounts
classified as Standard Of (A) Of (A) amount
aggregate debt classified as Standard
consequent to amount paid by the
that slipped consequent to
Type of Borrower implementation of written off borrowers
into NPA implementation of resolution
resolution plan – Position during the during the half
during the plan – Position as at the end
as at the end of the half-year year
half-year of this half-year (@)
previous half-year (A) ($)
Personal Loans* 1,909.40 86.52 11.11 160.04 1,738.25
Corporate persons
of which, MSMEs
Others^ 237.79 - - 132.01 105.78
Total 2,147.19 86.52 11.11 292.05 1,844.03
* Retail loans
$ Principal outstanding as on September 30, 2022.
@ Principal outstanding (including capitalised interest) for live restructured accounts as on March 31, 2023.
^Corporate finance loans
For half-year ended September 30, 2022

(J in crore)
Of (A), Exposure to accounts
classified as Standard Of (A) amount Of (A) amount
aggregate debt classified as Standard
consequent to implementation written off paid by the
Type of Borrower that slipped into consequent to implementation
of resolution plan – Position during the borrowers during
NPA during the of resolution plan – Position as
as at the end of the previous half-year the half year
half-year at the end of this half-year (@)
half-year (A) ($)
Personal Loans* 2,088.20 389.51 - 38.71 1,909.40
Corporate persons
of which, MSMEs
Others^ 331.89 6.30 - 81.74 237.79
Total 2,420.09 395.81 - 120.45 2,147.19
* Retail loans
$ Principal outstanding as on March 31, 2022.
@ Principal outstanding (including capitalised interest) for live restructured accounts as on September 30,2022.
NOTE 37: LEASES

The Ministry of Corporate affairs vide notification number G.S.R. 463(E) dated July 24, 2020 has issued Companies (Indian
Accounting Standards) Amendment Rules, 2020 which was further amended vide notification number G.S.R 419 (E) dated June
18, 2021. As per the amendment rules the Company has an option to apply practical expedients of paragraph 46A of Ind AS 116.
The Company had elected to use the practical expedient of paragraph 46A to not to assess whether a rent concession that
meets the conditions of paragraph 46B is a lease modification and account for any change in lease payments resulting from the
rent concession as if the change were not a lease modification. During the previous year the Company had applied the practical
expedients to all rent concessions that meet the conditions specified in paragraph 46B of Ind AS 116.
The Company has recognised H Nil (Previous Year H0.02) as other income for the year ended March 31, 2023 on account of
applicability of the above practical expedients.

(i) Movement of lease liability

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Lease liability as at the beginning of the year (a) 70.13 86.39

Additions (b) 34.71 8.87
Accretion of interest (c) 6.17 6.51
Payments (d) 33.50 31.65
Modification (e) 2.84 0.00
Lease liability as at the end of the year (a+b+c-d-e) 74.67 70.13
(ii) Maturity analysis of minimum undiscounted lease payments after the reporting period:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Less than one year 28.51 34.26

Later than one year but not later than five years 54.78 53.19
Later than five years 7.94 2.13
Total 91.23 89.58
(iii) Maturity analysis of minimum discounted lease payments after the reporting period:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022

Total 74.67 70.13
(iv) There are no gains or losses from sales and leaseback b) The Company has outstanding External Commercial
for the year ended March 31, 2023 and March 31, 2022. Borrowing (ECB) principal of USD 670.00 million
(equivalent to H5,508.53 crore) (March 31, 2022, USD
(v) There are no variable lease payments for the year ended
796.00 million (equivalent to H6,034.25 crore), which
March 31, 2023 and March 31, 2022.
is directly linked or affected by the abovementioned
two benchmarks. (USD 495.00 million – 3month USD
NOTE 38: DISCLOSURE ON TEMPORARY
LIBOR and remaining USD 175.00 million – 6 month USD
EXCEPTIONS FROM APPLYING SPECIFIC HEDGE
LIBOR) (March 31, 2022, USD 546.00 million – 3month
ACCOUNTING REQUIREMENTS AS PER IND AS 109
USD LIBOR and remaining USD 250.00 million – 6
The Ministry of Corporate affairs vide notification number month USD LIBOR).
G.S.R. 463(E) dated July 24, 2020 has issued Companies
(Indian Accounting Standards) Amendment Rules, 2020. c) USD 3 month & 6 Month LIBOR will cease to exist from
As per the amendment rules the Company has an option to June 30, 2023 and outstanding principal exposure
apply the exceptions set out in paragraphs 6.8.4-6.8.12 of Ind as on that date will be USD 640.00 million (March 31,
AS 109. 2022 USD 640.00 million) for which the Company will
discuss and negotiate the alternative reference rate
The Company has elected to apply the exceptions as specified with the respective lenders to incorporate or align the
above. Disclosure with respect to paragraph 24H of Ind same in the corresponding hedging/derivative deals. The
AS 107 in relation to uncertainty arising from interest rate Company will do bilateral negotiation or sign the ISDA
benchmark reforms is as follows: fall back protocol as the case may be with each of the
a) The Company has foreign currency borrowings in derivative counterparties.
USD only and the interest rate benchmarks where the d) The outstanding borrowings are long term in nature
Company’s hedging relationship is related are 3 month and the Company hasn’t yet received any specific
and 6 month USD LIBOR. communication from any of its lenders regarding the
timelines to change to an alternate reference/benchmark
rate. However, as soon as the Company receives any


communication or instruction from any of its lenders NOTE 41: DISCLOSURE IN RESPECT OF EMPLOYEE
regarding the transition to an alternate reference rate BENEFITS:
other than the LIBOR, the Company will immediately take In accordance with Indian Accounting Standards on
it up with the corresponding hedging counterparty/ies Employee Benefits” (Ind AS 19), the following disclosure have
to effect the transition in the hedging/derivative deals been made:
also. However, this may result in higher pay out for the
Company in the form of excess interest or hedging cost Defined Contribution Plans:
of the underlying borrowing for its remaining tenure.
Note 41.1: The Company makes contributions towards
e) The nominal amount of hedging instruments for provident fund to a defined contribution retirement benefit
outstanding principal as on March 31, 2023 is USD plan for qualifying employees. Under the plan, the Company
670.00 million (March 31, 2022 is USD 796.00 million). is required to contribute a specified percentage of payroll
cost to the retirement benefit plan to fund the benefits. The
NOTE 39: SEGMENT REPORTING: contribution has been recognised in the Statement of Profit
Company’s main business is to provide loans against/for and Loss which are included under “Contribution to Provident
purchase, construction, repairs & renovations of Houses/ Fund and Other Funds” in Note 31.
Flats/Commercial Properties etc. All other activities of (J in crore)
the Company revolve around the main business. As such, Particulars Current Year Previous Year
there are no separate reportable segment, as per the Contribution to Provident 8.18 6.96
Operating Segments (Ind AS 108), notified by the Companies Fund and Other Funds
(Accounting Standard) Rules, 2015. The Company operates
within India and does not have operations in economic Note 41.2: Defined Benefit Plans
environments with different risks and returns, hence it is
The Company has a defined benefit gratuity plan. Every
considered operating in single geographical segment.
employee is entitled to gratuity as per the provisions of
The Company is not reliant on revenues from transactions the Payment of Gratuity Act, 1972. The scheme is funded
with any single external customer and does not receive 10% and the same is managed by Life Insurance Corporation of
or more of its revenues from transactions with any single India. The liability of Gratuity is recognised on the basis of
external customer. actuarial valuation.
The most recent actuarial valuation of plan assets and the
NOTE 40: CONTINGENT LIABILITIES AND
present value of the defined benefit obligation for gratuity
COMMITMENTS
were carried out as at March 31, 2023. The present value
i) Contingent liabilities in respect of Income-tax of H56.01 of the defined benefit obligations and the related current
crore (Previous year H20.74 crore) is disputed and are under service cost and past service cost, were measured using the
appeals. These includes contingent liability of H1.96 crore Projected Unit Credit Method.
(Previous year H1.84 crore) with respect to Income-tax
which have been decided by the CIT(A) in Company’s favour. Risks associated with defined benefit plan
However, Income-tax Department has filed appeal with Delhi
Interest rate risk: A fall in the discount rate, which is linked
High Court . The Company expects the demands to be set
to the Government Securities rate, will increases the present
aside by the Delhi High Court, hence no additional provision is
value of the liability requiring higher provision. A fall in the
considered necessary.
discount rate generally increases the mark to market value of
ii) Estimated amount of contracts remaining to be executed on the assets depending on the duration of asset.
capital account and not provided for (net of advances) is
Salary Risk: The present value of the defined benefit plan
H21.51 crore (Previous year H7.60 crore).
liability is calculated by reference to the future salary of
iii) Claims against the Company not acknowledged as debt is members. As such, an increase in the salary of the members
H0.43 crore (Previous year H0.29 crore). more than assumed level may increase the plan’s liability.
iv) Company had issued corporate financial guarantee Mortality risk: Since the benefits under the plan is not
amounting to H0.25 crore (Previous year H0.25 crore) to payable for life time and payable till retirement age only, plan
“UNIQUE IDENTIFICATION AUTHORITY OF INDIA (UIDAI)” does not have any longevity risk.
against the Aadhar Authentication Services.

GRATUITY LIABILITY
Change in present value of obligation

(J in crore)
Present value of obligation as at the beginning of the year 12.89 12.23
Interest cost 0.88 0.83
Current service cost 2.27 2.21
Past service cost including curtailment gains/losses - 0.60
Benefits paid (3.06) (2.55)
Actuarial (gain) / loss on obligation 0.20 (0.43)
Present value of obligation as at the end of year 13.18 12.89
Change in fair value of plan assets*

(J in crore)
Fair value of plan assets as at the beginning of the year 13.59 13.91
Actual return on plan assets 0.85 0.90
Variation in actual return and expected return considered in previous year (0.95) -
Fund charges (0.09) -
Contributions 3.14 1.33
Fair value of plan assets as at the end of year 13.50 13.59
Funded status 1.23 1.47
Unfunded status (0.91) (0.77)
Expense recognised in the statement of Profit and Loss

(J in crore)
Service cost 2.27 2.81
Expected return on plan assets (0.92) (0.90)
Expenses recognised in the statement of profit and loss 2.23 2.74
Remeasurement (loss)/gain in Other Comprehensive Income (OCI) (1.31) 0.43
Expected contribution for the next financial year is H3.10 crore.
Assumptions
a) Discounting Rate 7.36%-7.39% 6.80%-7.11%
b) Future salary Increase 3.00%-7.00% 3.00%-7.00%
c) Retirement Age (Years) 58-60 years 58-60 years
d) Mortality Table IALM (2012-14) IALM (2012-14)


Maturity profile of defined benefits obligation

(J in crore)
With in the next 12 months 1.42 1.28
above 1 year and upto 5 years 4.22 4.37
above 5 year 7.54 7.24
Sensitivity analysis of the defined benefit obligation**

Current Year
Particulars
Discount Rate Future salary increase
Sensitivity Level 0.5% increase 0.5% decrease 0.5% increase 0.5% decrease
Impact on defined benefit obligation (0.44) 0.47 0.43 (0.42)
Previous Year
Particulars
*100% of the plan assets are managed by the insurer for current as well as previous year for employees on the Company payroll. However, for
contractual employees there are no plan assets.
**Sensitivities due to mortality and withdrawals are not material and hence impact of change due to these are not calculated. Sensitivities as to rate
of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are not applicable being a lump
sum benefit on retirement.
NOTE 42: EXPENDITURE IN FOREIGN CURRENCY:

(J in crore)
Interest expense 229.63 88.44
Other expenses 6.15 1.47
NOTE 43: DERIVATIVE FINANCIAL ASSETS / LIABILITIES

Derivative financial assets subject to offsetting, netting arrangements
(J in crore)
Derivative
assets not Total Maximum
Netting potential not recognised on the
Offsetting recognised on the balance sheet subject derivative exposure to
balance sheet
to netting assets risk
arrangements
Particulars
Net derivative Derivative Derivative
Gross Offset Recognised After
assets assets after Assets
derivative with gross Derivative Collaterals in the consideration
recognised on consideration recognised on
assets before derivative liabilities received balance of netting
the balance of netting the balance
offset liabilities sheet potential
sheet potential sheet
Derivative assets A B C = (A+B) D E F = (C+D+E) G H = (C+G) I = (H+D+E)
At 31 March, 2023* 721.04 (61.00) 660.04 - - 660.04 - 660.04 660.04
At 31 March, 2022 332.88 (90.63) 242.25 - - 242.25 - 242.25 242.25
Derivative financial liabilities subject to offsetting, netting arrangements

(J in crore)
Derivative
liabilities Total Maximum
Offsetting recognised on the balance sheet not subject derivative exposure to
balance sheet
to netting liabilities risk
arrangements
Particulars
liabilities liabilities after liabilities
liabilities derivative Assets given balance of netting
before offset assets sheet potential
Derivative liabilities A B C = (A+B) D E F = (C+ D+ E) G H = (C+G) I = (H+D+E)
At 31 March, 2023* (61.00) 61.00 - - - - - - -
At 31 March, 2022 (90.63) 90.63 - - - - - - -
NOTE 44: CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES

(J in crore)
As at Exchange As at
Particulars Cash flows (net) Others
April 01, 2022 difference March 31, 2023
Debt securities & subordinated liabilities 7,640.15 (2,410.01) - 2.30 5,232.44

Borrowings from bank 27,715.84 3,112.56 336.45 9.85 31,174.70
Deposits 17,648.97 (408.68) - 3.61 17,243.90
Lease liabilities 70.13 (35.84) 40.38 74.67
(J in crore)

Borrowings from bank 29,746.34 (2,229.10) 172.20 26.40 27,715.84
Deposits 16,747.42 901.39 - 0.16 17,648.97
Commercial paper 1,104.98 (1,125.00) - 20.02 -
Lease liabilities 86.39 (31.64) - 15.38 70.13
Note 44.1: The borrowings has been utilised for the purpose for which it has been taken from banks and financial institutions.
Note 44.2: The borrowings which has been repaid during the year whereby satisfaction is yet to be filed with Registrar of
Companies (ROC):
Amount
Lender Name Location of registar Reason for delay
(J in crore)
Punjab & Sind Bank 250.00 ROC- Delhi Awating NOC from the lender
Sumitomo Mitsui Banking Corporation 601.41 ROC- Delhi Awating NOC from the lender
Further, there are some old borrowings which have been fully repaid in past (other than tabled above) for which the Company
is compiling the details in relation to which satisfaction is yet to be filed with Registrar of Companies.
Note 44.3: Quarterly returns/statements of current assets filed with banks or financial institutions against the underlying
borrowings are in agreement with the books of accounts (principal outstanding).
NOTE 45: MATURITY ANALYSIS OF ASSETS AND LIABILITIES

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered
or settled. However, with regard to loans and advances to customers and investements, the Company has used the
contractual maturities for recovery/settlement. Borrowings (including debt securities and deposits) are reflected basis the
contractual maturities.


(J in crore)
Particulars Within 12 After 12 Within 12 After 12
Total Total
Months Months Months Months
ASSETS
Financial assets
Cash and cash equivalents 3,667.41 - 3,667.41 4,964.37 - 4,964.37
Bank balance other than cash and cash 25.16 - 25.16 150.47 - 150.47
equivalents
Derivative financial instruments 524.63 135.41 660.04 38.23 204.02 242.25
Trade and other receivables 0.01 - 0.01 39.02 - 39.02
Loans 3,390.30 54,518.23 57,908.53 4,621.70 50,759.04 55,380.74
Investments 1,446.53 1,741.49 3,188.02 920.93 2,551.09 3,472.02
Other financial assets 166.78 587.86 754.64 125.30 548.61 673.91
Total (a) 9,220.82 56,982.99 66,203.81 10,860.02 54,062.76 64,922.78
Current tax assets (net) - 251.57 251.57 - 37.55 37.55
Deferred tax assets (net) - 145.55 145.55 - 398.80 398.80
Investment property - 0.52 0.52 - 0.53 0.53
Property, plant and equipment - 66.05 66.05 - 71.33 71.33
Right of use assets - 65.53 65.53 - 60.39 60.39
Capital work-in-progress - 0.08 0.08 - - -
Intangible assets under development - 3.08 3.08 - 3.54 3.54
Other Intangible assets - 13.75 13.75 - 17.74 17.74
Other non-financial assets 51.50 3.52 55.02 25.65 2.16 27.81
Assets held for sale - - - 108.83 - 108.83
Total (b) 51.50 549.65 601.15 134.48 592.04 726.52
Total asset c = (a+b) 9,272.32 57,532.64 66,804.96 10,994.50 54,654.80 65,649.30
LIABILITIES
Trade Payables 44.47 - 44.47 27.14 - 27.14
Debt Securities 900.00 3,094.09 3,994.09 2,359.91 3,842.06 6,201.97
Borrowings (other than debt securities) 14,908.20 16,266.50 31,174.70 10,933.17 16,782.67 27,715.84
Deposits 5,138.38 12,075.58 17,213.96 5,796.64 11,808.49 17,605.13
Subordinated liabilities 499.00 739.35 1,238.35 199.98 1,238.20 1,438.18
Other financial liabilities 1,737.98 206.00 1,943.98 2,315.34 231.44 2,546.78
Total (d) 23,228.03 32,381.52 55,609.55 21,632.18 33,902.86 55,535.04
Provisions 2.30 15.09 17.39 2.37 14.75 17.12
Other Non-financial Liabilities 208.20 17.25 225.45 275.59 21.01 296.60
Total (e) 210.50 32.34 242.84 277.96 35.76 313.72
Total liabilities f = (d+e) 23,438.53 32,413.86 55,852.39 21,910.14 33,938.62 55,848.76
Net (c-f) 10,952.57 9,800.54

NOTE 46: RISK MANAGEMENT a Risk Management Committee (RMC) that owns the risk
The Company has formulated a comprehensive enterprise management framework. The RMC oversees the Risk
risk management policy to take care of major risks, such Management practices and gives direction to the Executive
as credit risk, market risk, liquidity risk. The Company has Risk Management Committee (ERMC), comprising of the MD
an integrated risk management policy (IRM) in place, which and CEO along with functional heads, in implementing the
communicates the risk management strategy, framework, risk management framework and policy. The policies and
and risk processes across the organisation, and has been procedures have been drafted in close consultation with
approved by the Board. The risk management framework process owners, ERMC and RMC.
broadly includes governance, risk appetite approach, The risk management function is led by the Chief Risk Officer
risk-specific guidelines, risk measurement, mitigation, who is independent and has direct access to the RMC.
monitoring reporting, and key risk indicators (KRIs). The
Company has developed a clearly articulated risk appetite The Company’s Risk Framework for credit risk management
statement, functional policies, and KRIs to explicitly define is mentioned below:
the level and nature of risk that an organisation willing to
take in order to pursue the articulated mission on behalf 1) Established an appropriate credit risk environment
of various stakeholders. The Board has delegated the The Company has developed credit risk strategy which
responsibility of risk management to its risk management reflects its risk tolerance and level of profitability
committee (RMC), which reviews the efficacy of our risk it expects to achieve. The execution of strategy is
management framework, provides important oversight, done through policies, guidelines and processes
and assesses whether it is consistent with the risk supervised by team of experienced professionals in the
tolerance levels laid down. The RMC gives directions to mortgage business.
executive risk management committee (ERMC), comprising
senior management. 2) Ensure sound credit approval process
The Company’s Target Operating Model (TOM) comprises
Note 46.1: Credit Risk Hub and Spoc structure, advanced technology platform,
The Company’s asset base comprises of retail loans and experienced and specialized professionals and mark
corporate loans. to market policies and products. The Company’s TOM
allows to manage various type of risks in a better
Retail loans mainly focusses on financing of acquisition or
manner which in turn helps building a robust portfolio.
construction of houses that includes repair, upgradation,
and development of plot of land. In retail loans category, the The Company has clear segregation of duties between
Company also provides loan against properties and loans for transaction originators in the business function and
purchase & construction of non-residential premises. approvers in the credit risk function. Spoc or branch act
as the primary point of sale, undertake loan originations,
Corporate finance loans are given mainly to developers
collection, deposit sourcing and customer service.
for financing the construction of residential / commercial
Hubs perform functions, such as loan processing, credit
properties, i.e. construction finance loans, and for general
appraisal and monitoring through subject matter experts
corporate purpose loans. i.e. corporate term loans and lease
comprising team of underwriters, fraud control unit,
rental discounting loans.
legal counsels, and technical evaluators.
Being in the lending domain, credit risk is one of the major
The credit sanction is done through a well-defined
risks in the business model of the Company. Credit risk
delegation matrix under four eye principle. All functions
stems from outright default due to inability or unwillingness
are subject to audit, undertaken by an independent team
of a customer or counterparty to meet the contractual
directly reporting to the Board.
commitments. The essence of credit risk management
in the Company pivots around the early assessment of Hubs and Spocs are supported by Central Support
stress, both at a portfolio and account level, and taking Office (CSO), Centralised Operations (COPS) and Central
appropriate measures. Processing Centre (CPC).
Credit Risk Management 3) Maintains an appropriate credit administration,

Credit risk of the Company is managed through a robust measurement and monitoring process
Credit Risk Management set-up at various levels. Given Policies and procedures have been developed for
the pervasiveness of credit risk in the Company’s line identifying, measuring, monitoring and mitigating credit
of business, the Board and the senior management risk. Portfolio monitoring allows a proactive approach to
consider credit risk management to be an integral part identify, at an early stage, credit quality deterioration. A
of the organisational strategy. The Board has constituted system of independent, periodical reviews of


the Company’s credit risk management process is established and the results of such reviews are communicated across
the levels for corrective actions as applicable. The expected credit loss on financial instruments has been presented in
respective note.
Adequate controls are in place to ensure that the credit approval function is being properly managed and that credit
exposures are within levels consistent with prudential standards and internal limits.
Note 46.2: Derivative Financial Instruments

Credit risk arising from derivative financial instruments is, at any time, limited to those with positive fair values, as recorded on
the balance sheet.
Note 46.3: Analysis of risk concentration
(i) Risk concentrations on loans

An analysis of the Company’s credit risk concentrations per product / sub product is provided in the below
mentioned table:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Concentration by sector - Retail

Housing loans 39,450.32 35,080.13
Non housing loans 16,089.44 15,484.34
Total (a) 55,539.76 50,564.47
Concentration by sector - Corporate
Construction finance 3,492.64 6,088.92
Corporate term loan 273.25 941.82
Lease rental discounting 35.72 344.47
Total (b) 3,801.61 7,375.21
Total (a+b) 59,341.37 57,939.68
(ii) Risk concentrations on financial assets other than loans

(J in crore)
Financial
Particulars Government Corporate Others Total
Services
Cash and cash equivalents - 3,665.92 - 1.49 3,667.41
Bank balance other than cash and cash - 25.16 - - 25.16
equivalents
Derivative financial instruments - 660.04 - - 660.04
Trade and other receivables - - 0.01 - 0.01
Investments 2,517.06 - 630.51 40.45 3,188.02
Other financial assets 9.04 726.55 5.16 13.89 754.64
Total 2,526.10 5,077.67 635.68 55.83 8,295.28
equivalents
Trade and other receivables - - 38.99 0.03 39.02
Investments 3,075.46 100.02 296.54 - 3,472.02
Total 3,082.90 6,101.84 340.97 16.33 9,542.04

Note 46.4: Market Risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market
variables such as interest rates, foreign exchange rates and equity prices. The Company monitors such changes and presents
to the management on a regular basis. It undertakes scenario analysis as well as other techniques like earnings at risk to
quantify the expected impact upon the change of market variables. The Board approved investment policy defines the overall
exposure limits and specific limits pertaining to the exposure to a particular entity /counterparty as well as type of securities.
Note 46.4.1 Total market risk exposure

(J in crore)
As at As at Primary risk
Particulars March 31, 2023 March 31, 2022 sensitivity
Carrying amount
ASSETS
Financial assets
Cash and cash equivalents 3,667.41 4,964.37 -
Bank balance other than cash and cash equivalents 25.16 150.47 -
Derivative financial instruments 660.04 242.25 -
Trade and other receivables 0.01 39.02 -
Loans 57,908.53 55,380.74 Interest rate
Investments 3,188.02 3,472.02 Interest rate
Other financial assets 754.64 673.91 Interest rate
Total 66,203.81 64,922.78
LIABILITIES
Trade payables 44.47 27.14 -
Debt securities 3,994.09 6,201.97 Interest rate
Borrowings (other than debt securities) 31,174.70 27,715.84 Interest rate/
Currency risk
Deposits 17,213.96 17,605.13 Interest rate
Subordinated liabilities 1,238.35 1,438.18 Interest rate
Other financial liabilities 1,943.98 2,546.78 -
Total 55,609.55 55,535.04
46.4.2 Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of
financial instruments. The Board has established limits on interest rate sensitive assets and interest rate sensitive liabilities.
The Company’s policy is to monitor positions on a regular basis and hedging strategies are used to ensure positions are
maintained within the established limits.
The following tables assesses the sensitivity of the assets and liabilities over the profit and loss with change in interest rates.
(J in crore)
Increase / (decrease) Sensitivity of
Areas Financial year
in basis points profit and (loss)
Loans 2022-23 100 bps / (100) bps 578.02 / (578.02)
2021-22 100 bps / (100) bps 559.97 / (559.97)
Investments 2022-23 100 bps / (100) bps 4.19 / (1.38)
2021-22 100 bps / (100) bps 9.26 / (4.78)
Other financial assets 2022-23 25 bps / (25) bps 68.22 / (68.22)
2021-22 25 bps / (25) bps 74.20 / (74.20)
External Commercial Borrowing 2022-23 100 bps / (100) bps (0.63) / 0.63
2021-22 100 bps / (100) bps (6.14) / 6.14
Debt securities, Borrowings (other than debt securities), Deposits and 2022-23 100 bps / (100) bps (319.93) / 319.93
Subordinated liabilities 2021-22 100 bps / (100) bps (296.53) / 296.53


46.4.3 Currency risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Foreign
currency risk arises majorly on account of foreign currency borrowings which are primarily in US dolllar ($). The Company
manages its foreign currency risk by entering into cross currency swaps and forward contracts. When a derivative is entered
into for the purpose of being as hedge, the Company negotiates the terms of those derivatives to match with the terms of the
hedge exposure.
Currently, the Company is exposed to currency risk by virtue of its ECBs. But, the Company has undertaken hedging and
mitigated a major portion of such risk.
The following table assesses the sensitivity of the assets and liabilities over the profit and loss and other comprehensive
income with change in currency rates.
(J in crore)
Areas Financial year Increase / (decrease) Sensitivity on profit and loss / other comperehensive income
in %
External Commercial Borrowing 2022-23 10 % / (10) % (0.32) / 0.32
Borrowing 2021-22 10 % / (10) % (9.68) / 9.68
Note 46.4.4: Equity price risk :

The Company’s investment in non-listed equity securities are accounted at cost in the financial statement net of impairment (if
any). The expected cash flow from these entities are regularly monitored to identify impairment indicators.
Note 46.5: Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company
might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows
under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions
is not available to the Company on acceptable terms. To limit this risk, management has arranged for diversified funding
sources and investors in addition to its core deposit base, also adopted a policy of managing assets with liquidity in mind and
monitoring future cash flows and liquidity on a regular basis. The Company also keeps lines of credit and liquid investments
that it can access to meet liquidity needs. The lines of credit are from various banks and institutions. The liquid investments
are kept in liquid mutual funds, fixed deposits, liquid bonds, government securities etc., limits of which are defined as per
investment policy based on the type of security, rating of entity and instrument. In accordance with the Company’s policy, the
liquidity position is assessed under a variety of scenarios. The Company follows both stock and flow approaches to monitor
and asses the liquidity position. Moreover, the Compnay keeps a track of the expected funds inflows and outflows along with
the avenues of raising the funds. This incorporates an assessment of expected cash flows and the availability of high grade
collateral which could be used to secure additional funding if required.
The Company has a Board approved Asset and Liability Management (ALM) policy. The policy has constituted an Asset and
Liability Committee (ALCO) which meets at regular intervals and review the asset liability profile both at the particular time
bucket level and cumulative level as well as the interest rate profile of the Company. The policy also defines the limits on
such monitored items and these are further presented to the Board for information and further action, if any. Apart from the
regulatory defined tools, the Company has voluntarily instituted various liquidity parameters that are presented to the ALCO
and further to the Board. Moreover, the position of liquidity is presented to the Risk Management Committee of the Board.

Note 46.5.1: Analysis of financial liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows (including interest) of the Company’s
financial liabilities.
(J in crore)
Total Total
Trade payables 44.47 - 44.47 27.14 - 27.14
Debt securities 900.00 3,094.09 3,994.09 2,359.91 3,842.06 6,201.97
Deposits 5,138.38 12,075.58 17,213.96 5,796.64 11,808.49 17,605.13
Interest on borrowings (including debt securities / 3,768.92 4,866.85 8,635.77 3,539.44 4,807.71 8,347.15
deposits / subordinated liabilities)
Total 26,730.77 37,248.37 63,979.14 24,817.86 38,710.57 63,528.43
The table below shows the contractual expiry by maturity of the Company’s contingent assets, liabilities and commitments.
(J in crore)
Particulars Within 12 Months After 12 Months Total
Undrawn commitments relating to advances 2,618.62 1,696.80 4,315.42
Undrawn commitments relating to financial guarantee - 0.25 0.25
Undrawn sanction relating to borrowings 1,210.00 - 1,210.00
NOTE 47: FAIR VALUE MEASUREMENT of the identical assets or liabilities and when there are
The principles and techniques of fair valuation measurement binding and exercisable price quotes available on the
of both financial and non-financial instruments are as follows: balance sheet date.
Level 2: Those where the inputs that are used for

(a) Valuation principles valuation are significant and are derived from directly
Fair value is the price that would be received to sell or indirectly observable market data available over
an asset or paid to transfer a liability in an orderly the entire period of the instrument’s life. Such inputs
transaction in the principal (or most advantageous) include quoted prices for similar assets or liabilities in
market at the measurement date under current market active markets, quoted prices for identical instruments
conditions (i.e. an exit price), regardless of whether in inactive markets and observable inputs other than
that price is directly observable or estimated using a quoted prices such as interest rates and yield curves,
valuation technique. implied volatilities and credit spreads. In addition,
adjustments may be required for the condition or
For determination of fair value, financial instruments are
location of the asset or the extent to which it relates to
classified based on a hierarchy of valuation techniques,
items that are comparable to the valued instrument.
as summarised below:
Level 3: Those that include one or more unobservable
Level 1: Those where the inputs used in the valuation
input that is significant to the measurement as whole.
are unadjusted quoted prices from active markets for
identical assets or liabilities that the Company has
(b) Valuation governance
access to at the measurement date. The Company
considers markets as active only if there are sufficient The Company’s fair value methodology and the
trading activities with regards to the volume and liquidity governance over its models includes a number of


controls and other procedures to ensure appropriate (c) Assets and liabilities by fair value hierarchy
safeguards are in place to ensure its quality and The following table shows an analysis of financial
adequacy. All new product initiatives and their valuations instruments recorded at fair value by level of the fair
are subject to approvals by related functions of value hierarchy
the Company.

(J in crore)
Particulars Level 1 Level 2 Level 3 Total
Assets measured at fair value on a recurring basis
Assets measured at fair value through profit or loss
Investments
Government securities - 413.18 - 413.18
Derivative financial instruments
Forward contracts and currency swaps - 658.02 - 658.02
Interest rate swaps - 63.02 - 63.02
Total assets measured at fair value on a recurring basis (a) - 1,591.89 - 1,591.89
Assets measured at fair value on a non-recurring basis
Assets held for sale - - - -
Total assets measured at fair value on a non-recurring basis (b) - - - -
Total assets measured at fair value (a)+(b) - 1,591.89 - 1,591.89
Liabilities measured at fair value through profit or loss
Margin money received against derivative financial instruments - 22.33 - 22.33
Total liabilities measured at fair value through profit or loss - 61.00 - 61.00

(J in crore)
Investments
Mutual Funds 100.02 - - 100.02
Government securities - 1,044.83 - 1,044.83
Total assets measured at fair value on a recurring basis (a) 100.02 1,470.40 - 1,570.42
Assets measured at fair value on a non recurring basis
Assets held for sale - 108.83 - 108.83
Total assets measured at fair value on a non recurring basis (b) - 108.83 - 108.83
Total assets measured at fair value (a)+(b) 100.02 1,579.23 - 1,679.25
Spot and forward contracts - 50.08 - 50.08

Valuation methodologies of financial instruments measured 4. Derivative financial instruments

at fair value Interest rate derivatives
Below are the methodologies and assumptions used to
For Interest rate derivatives Company has interest
determine fair values for the above financial instruments
rate swaps and cross currency swaps. The valuation
which are recorded and measured at fair value in the
techniques are the mark to market positions with
Company’s financial statements.
forward pricing on the swap models using present
value calculations by estimating future cash flows and
1. Mutual funds
discounting them with the appropriate yield curves like
Units held in mutual funds are valued based on their the OIS yield curve. These contracts are generally Level
published Net asset value (NAV) and such instruments 2 unless adjustments to yield curves or credit spreads
are classified under Level 1. are based on significant non-observable inputs, in which
case, they are Level 3.
2. Debt securities
Foreign exchange contracts
The Company’s debt instruments are standard fixed rate
securities.The Company uses market prices whenever Foreign exchange contracts include spot contracts,
available, or other observable inputs in discounted foreign exchange forward and swap contracts and
cash flow models to estimate the corresponding fair over-the-counter foreign exchange options. However,
value. These Corporate bonds are generally Level the Company has not entered into any foreign exchange
2 instruments. options. These instruments are valued by either
observable foreign exchange rates, observable or
3. Assets held for sale calculated forward points and option valuation models.
Assets held for sale valuation are basis independent Company classifies these foreign exchange contracts as
valuations by a specialist in valuing these type of assets. level 2.
The best estimate of fair value is current prices in an
active market for similar assets.
(d) Fair Value of financial instruments not measured at fair value

(J in crore)
Fair Value
Particulars Carrying Value
Level 1 Level 2 Level 3 Total
Financial assets
Financial assets measured at amortised cost:
Loans and advances to customers 57,908.53 - 57,901.01 - 57,901.01
Investment#
Government Securities (at amortised cost) & Equity 2,276.72 - 2,285.62 - 2,285.62
(at cost)
Security Recipt in ACRE 122 trust 40.45 - - 119.00 119.00
Total financial assets 60,225.70 - 60,186.63 119.00 60,305.63
Financial liabilities measured at amortised cost:
Debt securities (including interest accrued) 4,098.77 - 4,087.55 - 4,087.55
Deposits (including interest accrued) 17,247.62 - - 17,142.92 17,142.92
Subordinated liabilities (including interest accrued) 1,239.44 - 1,239.22 - 1,239.22
Total financial liabilities 22,585.83 - 5,326.77 17,142.92 22,469.69



(J in crore)
Fair Value
Financial assets
Investment#
Government Securities (at amortised cost) & Equity 2,234.48 - 2,321.27 - 2,321.27
(at cost)
Total financial assets 57,615.22 - 57,761.34 - 57,761.34
# fair value has been disclosed for those valued at amortised cost.
Valuation methodologies of financial instruments not measured at fair value
Below are the methodologies and assumptions used to determine fair values for the above financial instruments which
are not recorded and measured at fair value in the Company’s financial statements.
1. Financial assets and liabilities (Short term)
Cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, other financial
assets, trade payables, commercial papers and other financial liabilities has been recognised at amortised cost in the
financial statements.
In accordance with Ind AS 107.29(a), fair value is not required to be disclosed in relation to the financial instruments
having short-term maturity (less than twelve months), where carrying amount (net of impairment) is a reasonable
approximation of their fair value. Hence the fair value of cash and cash equivalents, bank balances other than
cash and cash equivalents, trade receivables, other financial assets, trade payables, commercial papers and other
financial liabilities has not been disclosed.
2. Financial assets
Loans and advances to customers
Substantial amount of the loans are based on floating rate of interest, carrying amount of which represents the fair
value of these loans. Minuscule amount of loans are based on fixed to floating rate of interest, the fair values of these
loans are computed by discounted cash flow models incorporating prevailing interest rate. The Company classifies
these assets as Level 2.
Government debt securities
Government debt securities are financial instruments issued by sovereign governments and include both long- term
bonds and short-term bills with fixed or floating rate interest payments. These instruments are generally liquid
and traded in active markets resulting in a Level 1 classification. When active market prices are not available, the
Company uses discounted cash flow models with observable market inputs of similar instruments and bond prices
to estimate future index levels and extrapolating yields outside the range of active market trading, in which instances
the Company classifies those securities as Level 2. The Company does not have Level 3 government securities
where valuation inputs would be unobservable.

3. Financial liabilities
Debt securities and Subordinated liabilities
Debt securities and subordinated liabilities are generally liquid and traded in active markets resulting in a Level 1
classification. When active market prices are not available, the Company uses discounted cash flow models with
observable market inputs of similar instruments and bond prices to estimate future index levels and extrapolating
yields outside the range of active market trading, in which instances the Company classifies those securities as
Level 2.
Deposits

The fair values of deposits are computed by discounted cash flow models that incorporates prevalling interest rate.
The Company classifies these liabilities as Level 3.
Financial assets or liabilities other than those mentioned above resembles the value approximate to their fair value.
(e) There have been no transfers among Level 1, Level 2 and Level 3, during the year ended March 31, 2023, and March
31, 2022.
NOTE 48: OTHER DISCLOSURES:

(i) There is no income which is required to be recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.
(ii) The Company has not been declared willful defaulter by any Banks/Financial Institutions.
(iii) The Company has not traded or invested in Crypto currency or Virtual currency during the year.
(iv) There are no proceedings which have been initiated or pending against the Company for holding any benami property
under the Prohibition of Benami Properties Transactions Act, 1988 and the rules made thereunder.
(v) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;
(vi) The Company has not received any funds from any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;


(vii) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India
and the Group has no CICs as part of the Group.
(viii) The Company has not entered into Scheme of Arrangement in terms of section 230 to 237 of the Company Act, 2013.
(ix) Disclosure in relation to Struck off Companies:

(J in crore)
Nature of transactions with Balance outstanding as Balance outstanding as Relationship with
Name of struck off Company/LLP
struck-off Company at March 31, 2023 at March 31, 2022 the Struck off company/LLP
A and B Fashions Private Limited Interest credited on 0.15 0.14 Depositor

deposit received
Payal Financial Services Private Professional services - - Vendor
Limited
Akshda Well Wisher Advisory (OPC) Direct selling agent - - Vendor
Private Limited
DNM Finserve Private Limited Direct selling agent - - Vendor
Note 49: Pursuant to the Board of Directors approval dated March 09, 2022 for issue of equity shares upto by way of Rights
Issue (“Rights Issue”) for an amount not exceeding H2,500 crore, the Company had filed Letter of Offer on March 29, 2023. The
issue opened for subscription on April 13, 2023 and closed on April 27, 2023. The rights issue was oversubscribed 1.21 times.
The Board on May 4, 2023 approved the allotment of 9,06,81,828 fully paid-up equity shares at a price of H275 per equity share
(including premium of H265 per equity share) aggregating to H2,493.76 crore to the eligible shareholders. The estimated issue
expenses (contractual commitment) in relation to Right Issue is H46.70 crore.
NOTE 50: AMENDMENTS ISSUED BUT NOT YET EFFECTIVE

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules, 2015 from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting
Standards) Rules, 2015, applicable from April 1, 2023, as below:
(i) Ind AS 1 – Material accounting policies - The amendments mainly related to shifting of disclosure of erstwhile “significant
accounting policies” in the notes to the financial statements to material accounting policy information requiring companies
to reframe their accounting policies to make them more “entity” specific. This amendment aligns with the “material”
concept already required under International Financial Reporting Standards (IFRS). The Company does not expect the
amendments to have any impact in the financial statements.
(ii) Ind AS 8 – Definition of accounting estimates - The amendments specify definition of ‘change in accounting estimate’
replaced with the definition of ‘accounting estimates’. The Company does not expect the amendments to have any impact
in the financial statements.

(iii) Ind AS 12 – The amendment clarifies that in cases of transactions where equal amounts of assets and liabilities are
recognised on initial recognition, the initial recognition exemption does not apply. Also, If a company has not yet
recognised deferred tax asset and deferred tax liability on right-of-use assets and lease liabilities or has recognised
deferred tax asset or deferred tax liability on net basis, that company shall have to recognise deferred tax assets and
deferred tax liabilities on gross basis based on the carrying amount of right-of-use assets and lease liabilities existing
at the beginning of April 1, 2022. The Company does not expect the amendments to have any impact in its recognition of
deferred tax assets and deferred tax liabilities in its financial statements.
The MCA vide its notification dated March 24, 2021 had introduced the concept of audit trails, applicable from April 1,
2023, by inserting proviso to rule 3(1) of the Companies (Accounts) Rules, 2014. It mentioned that every company which
uses accounting software for maintaining its books of account, shall use only such accounting software which has
a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of
account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
Note 51: Previous year figures have been rearranged / regrouped wherever necessary to correspond with current year’s
classification disclosure.

FR No.: 006711N/N500028

M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.

FR No.: 302049E

M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi

Date: May 18, 2023

FORM AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries or associate companies or joint ventures
PART A SUBSIDIARIES
Sr. No. Particulars Details/ Amount (I in crore)
1 Name of the subsidiary PHFL Home Loans and Services Limited
2 Date since when subsidiary was acquired/ incorporated PHFL Home Loans and Services Limited was not acquired, however it
was incorporated as wholly owned subsidiary of the Company as on
August 22, 2017
3 Reporting period for the subsidiary concerned, if different from Reporting period of the subsidiary is the same as that of the holding i.e.
the holding company’s reporting period. April 01, 2022 to March 31, 2023
4 Reporting currency and exchange rate as on the last date of the Not applicable as this is the domestic subsidiary
relevant financial year in the case of foreign subsidiaries.
5 Share capital 0.25
6 Reserves and surplus 130.21
7 Total assets 154.44
8 Total Liabilities 23.98
9 Investments 8.52
10 Turnover 251.81
11 Profit before taxation 18.31
12 Provision for taxation 4.37
13 Profit after taxation 13.94
14 Proposed Dividend -
15 Extent of shareholding (in percentage) 100
Sr. No. Particulars Details/ Amount (I in crore)

1 Name of the subsidiary PEHEL Foundation
2 Date since when subsidiary was acquired/ incorporated Pehel Foundation was not acquired, however it was incorporated as
wholly owned subsidiary of the Company as on October 14, 2019
3 Reporting period for the subsidiary concerned, if different from Reporting period of the subsidiary is the same as that of the holding i.e.
the holding company’s reporting period. April 01, 2022 to March 31, 2023
4 Reporting currency and exchange rate as on the last date of the Not applicable as this is the domestic subsidiary
relevant financial year in the case of foreign subsidiaries.
5 Share capital 0.05
6 Reserves and surplus 1.02
7 Total assets 2.71
8 Total Liabilities 1.64
9 Investments 0.68
10 Turnover 11.40
11 Loss before taxation / excess of expenditure over income 5.18
12 Provision for taxation -
13 Loss after taxation / excess of expenditure over income 5.18
14 Proposed Dividend -
15 Extent of shareholding (in percentage) 100
Notes:
1. Names of subsidiaries which are yet to commence operations: None
2. Names of subsidiaries which have been liquidated or sold during the year: None
PART B ASSOCIATES AND JOINT VENTURES

The Company has no associate company or joint venture.
For and on behalf of the Board of Directors
GIRISH KOUSGI NEERAJ VYAS

Managing Director & CEO Director
DIN: 08524205 DIN: 07053788
VINAY GUPTA SANJAY JAIN

Chief Financial Officer Company Secretary
ACA: 500609 FCS: 002642
Place: New Delhi

Date: May 18, 2023

INDEPENDENT AUDITORS’ REPORT
To the Members of PNB Housing Finance Limited Basis for Opinion

We conducted our audit of the Consolidated Financial
REPORT ON THE AUDIT OF THE CONSOLIDATED Statements in accordance with the Standards on Auditing
FINANCIAL STATEMENTS (SAs), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described
Opinion
in the ‘Auditor’s Responsibilities for the Audit of the
We have audited the accompanying Consolidated Financial Consolidated Financial Statements’ section of our report. We
Statements of PNB Housing Finance Limited (“hereinafter are independent of the Group in accordance with the ‘Code
referred to as the “Holding Company””) and its subsidiary of Ethics’ issued by the Institute of Chartered Accountants of
(The Holding Company and its subsidiary together referred India together with the ethical requirements that are relevant
to as “the Group”), which comprise the Consolidated Balance to our audit of the Consolidated Financial Statements under
Sheet as at March 31 2023, the Consolidated Statement of the provisions of the Act and the Rules made thereunder,
Profit and Loss, including Consolidated Other Comprehensive and we have fulfilled our other ethical responsibilities in
Income, the Consolidated Statement of Changes in Equity and accordance with these requirements and the Code of Ethics.
the Consolidated Statement of Cash Flow for the year then We believe that the audit evidence we have obtained is
ended, and a summary of significant accounting policies and sufficient and appropriate to provide a basis for our audit
other explanatory information (hereinafter referred to as the opinion on the Consolidated Financial Statements.
“consolidated financial statements”).
In our opinion and to the best of our information and Key audit matters
according to the explanations given to us, the aforesaid Key audit matters are those matters that, in our professional
consolidated financial statements, give the information judgment, were of most significance in our audit of the
required by the Companies Act, 2013 (the “Act”) in the manner Consolidated Financial Statements for the financial year
so required and give a true and fair view in conformity with ended March 31, 2023. These matters were addressed in the
the Indian Accounting Standards prescribed under section context of our audit of the Consolidated Financial Statements
133 of the Act read with the Companies (Indian Accounting as a whole, and in forming our opinion thereon, and we do
Standards) Rules, 2015, as amended (“Ind AS”) and other not provide a separate opinion on these matters. We have
accounting principles generally accepted in India, of the determined the matters described below to be the key
consolidated state of affairs of the Group as at March 31, audit matters to be communicated in our report. For each
2023 and their consolidated profit, their consolidated total matter below, description of how the matter was addressed
comprehensive income, their consolidated changes in equity in our audit is provided in that context. Considering the
and their consolidated cash flows for the year ended on requirement of Standard on Auditing (SA 600) on ‘Using the
that date. work of Another Auditor’ including materiality, below Key
Audit Matters have been reproduced from the Independent
Auditors’ report on the audit of Standalone Financial
Statements of the Holding Company.
Key audit matters# How our audit addressed the key audit matter
Expected Credit Loss (ECL) on loans and advances
The Company has reported total gross loans of H59,272.63 crore and Our audit approach was a combination of test of internal controls and
H1,432.84 crore of allowance for expected credit loss as on March 31, substantive procedures which included the following:
2023 (Refer Note 6). a) Testing the design and effectiveness of internal controls over the
The allowance for ECL on loan assets involves significant key following:
judgements and estimates in respect of timing and measurement of − key controls over the completeness and accuracy of the key
expected credit loss (Refer Note 2.21). As part of our risk assessment, inputs, data and assumptions into the Ind AS 109 impairment
we determined that the allowance for ECL on loan assets has a models.
high degree of estimation, with a potential impact on the financial
− key controls over the application of the staging criteria
statements.
consistent with the definitions applied in accordance with
The major elements of estimating ECL are the following: the policy approved by the Board of Directors including the
a) Application of ECL model requires several data inputs. appropriateness of the qualitative factors.
b) Judgmental models used to estimate ECL which involves − management’s controls over authorisation and calculation
determining Probability of Default (“PD”), Loss Given Default of post model adjustments and management overlays to the
(“LGD”), and Exposures at Default (“EAD”). The PD and the LGD output of the ECL model.
are the key drivers of estimation complexity in the ECL and as a
result are considered the most significant judgmental aspect of the
Company’s modelling approach.

Key audit matters# How our audit addressed the key audit matter
c) Qualitative and quantitative factors used in staging of loan assets. b) In addition to above the following audit procedures have been
d) Ind AS 109 requires the Company to measure ECL on an unbiased applied;
forward-looking basis reflecting a range of future economic − testing of key inputs, data and assumptions impacting ECL
conditions. Significant management judgement is applied in calculations to assess the completeness, accuracy and
determining the economic scenarios used and the probability relevance of data, reasonableness of economic forecasts,
weights applied to them. weights, and model assumptions applied;
e) Completeness and valuation of post model adjustments. − with the support of the team of modelling specialists employed
In view of the high degree of management’s judgement involved in by the Company to make the models, we tested/relied upon
estimation of ECL and the overall significance of the impairment loss the assumptions, inputs and formulas used in a sample of ECL
allowance to the standalone financial statements, it is considered as a models. This included assessing the appropriateness of model
key audit matter. design and formulas used, the ‘Probability of Default’, ‘Loss
Given Default’, ‘Exposure at Default’, historical loss rates used,
and the valuation of collateral.
− tested mathematical accuracy and computation of the
allowances by using the input data used by the Company;
c) Evaluating the appropriateness of the Company’s impairment
methodologies as required under Ind AS 109 and reasonableness
of assumptions used including management overlays ensuring that
the adjustment to ECL Model was in conformity with the policy
approved by the Audit Committee.
Information Technology (IT) Systems and Controls
The Company uses ERP system for financial reporting which interface Our key audit procedures on this matter included, but were not limited,
with other business operation softwares’ that process transactions to the following:
related to loans, deposits and borrowings. (a) obtained an understanding of the Company’s information processing
The Company’s key financial accounting and reporting processes are systems, IT General Controls and automated IT controls for
highly dependent on the automated controls implemented in IT systems. applications, databases and operating systems relevant to our audit;
If there exist gaps in the IT control environment, then it could result (b) Also, obtained an understanding of the changes that were made to
in the financial accounting and reporting records being materially the IT applications during the audit period;
misstated.
(c) Also, performed following procedures:
Therefore, due to the complexity of the IT environment, the assessment
of the general IT controls and the application controls specific to the (i) tested the IT General Controls around user access management,
accounting and preparation of the financial information is considered to changes to IT environment and segregation of duties around
be a key audit matter. program maintenance and security administration relating to
key financial accounting and reporting processes;
(ii) tested the Company’s periodic review of access rights. We
also tested requests of changes to systems for approval and
authorization; and
(iii) tested the automated controls like interfaces, configurations
and information generated by the entity’s information
processing systems for loans, borrowings, deposits, interest
income, interest expense and other significant financial
statement items.
# Above referred Key Audit Matters are in respect of the Holding Company only. The subsidiary in the group is unlisted entity.
Other Matter insofar as it relates to the aforesaid subsidiary is

a) We did not audit the financial statements/ financial based solely on the reports of the other auditor after
information of PHFL Home Loans and Services Limited considering the requirement of Standard on Auditing
(“a subsidiary”), whose financial statements reflects (SA 600) on ‘Using the work of Another Auditor’
total assets of H154.44 crore as at March 31, 2023, total including materiality.
revenues of H251.81 crore, total net profit after tax of Our opinion is not modified in respect of these matters.
H 13.94 crore, total comprehensive income of H14.41 crore
and net cash outflow of H90.83 crore for the year ended Other Information
March 31, 2023.
The Holding Company’s Board of Directors are responsible
The financial statement of the Subsidiary have been for the preparation of the other information. The other
audited by other auditor, whose report has been information comprises the information included in the
furnished to us by the management and our opinion Holding Company’s Annual Report, but does not include the
on the consolidated financial statements, in so far as Consolidated Financial Statements and our auditor’s report
it relates to the amounts and disclosures our report thereon. The Annual Report is expected to be made available
in terms of sub-section (3) of Section 143 of the Act, to us after the date of this auditor’s report.

Our opinion on the Consolidated Financial Statements does going concern basis of accounting unless management either
not cover the other information and we do not express any intends to liquidate the Group or to cease operations, or has
form of assurance conclusion thereon. no realistic alternative but to do so.
In connection with our audit of the Consolidated Financial Those respective Board of Directors of the companies
Statements, our responsibility is to read the other information included in the Group are also responsible for overseeing the
and, in doing so, consider whether the other information financial reporting process of the Group.
is materially inconsistent with the Consolidated Financial
Statements or our knowledge obtained during the course of Auditor’s Responsibilities for the Audit of the
our audit or otherwise appears to be materially misstated. Consolidated Financial Statements
If, based on the work we have performed, we conclude that Our objectives are to obtain reasonable assurance about
there is a material misstatement of this other information, whether the Consolidated Financial Statements as a whole
we are required to report that fact. When we read the Annual are free from material misstatement, whether due to fraud
Report, if we conclude that there is a material misstatement or error, and to issue an auditor’s report that includes our
therein, we are required to communicate the matter to those opinion. Reasonable assurance is a high level of assurance,
charged with governance and take necessary actions, as but is not a guarantee that an audit conducted in accordance
applicable under the applicable laws and regulations. with SAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and
Responsibilities of Management for the Consolidated are considered material if, individually or in the aggregate,
Financial Statements they could reasonably be expected to influence the economic
The Holding Company’s Board of Directors is responsible decisions of users taken on the basis of these Consolidated
for the preparation and presentation of these consolidated Financial Statements.
financial statements in terms of the requirements of the Act
As part of an audit in accordance with SAs, we exercise
that give a true and fair view of the consolidated financial
professional judgment and maintain professional skepticism
position, consolidated financial performance including
throughout the audit. We also:
other comprehensive income, consolidated cash flows and
consolidated statement of changes in equity of the Group − Identify and assess the risks of material misstatement
in accordance with the accounting principles generally of the Consolidated Financial Statements, whether due
accepted in India, including the Indian Accounting Standards to fraud or error, design and perform audit procedures
(Ind AS) specified under section 133 of the Act read with responsive to those risks, and obtain audit evidence that
the Companies (Indian Accounting Standards) Rules, is sufficient and appropriate to provide a basis for our
2015, as amended. The respective Board of Directors of opinion. The risk of not detecting a material misstatement
the companies included in the Group are responsible for resulting from fraud is higher than for one resulting from
maintenance of adequate accounting records in accordance error, as fraud may involve collusion, forgery, intentional
with the provisions of the Act for safeguarding of the assets omissions, misrepresentations, or the override of
of the Group and for preventing and detecting frauds and internal control.
other irregularities; selection and application of appropriate
− Obtain an understanding of internal control relevant to
accounting policies; making judgments and estimates that
the audit in order to design audit procedures that are
are reasonable and prudent; and the design, implementation
appropriate in the circumstances. Under section 143(3)
and maintenance of adequate internal financial controls,
(i) of the Act, we are also responsible for expressing our
that were operating effectively for ensuring the accuracy
opinion on whether the Companies in the Group have
and completeness of the accounting records, relevant to the
adequate internal financial controls system in place and
preparation and presentation of the consolidated financial
the operating effectiveness of such controls.
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error, − Evaluate the appropriateness of accounting policies used
which have been used for the purpose of preparation of the and the reasonableness of accounting estimates and
consolidated financial statements by the Directors of the related disclosures made by management.
Holding Company, as aforesaid.
− Conclude on the appropriateness of Holding Company’s
In preparing the Consolidated Financial Statements, the Management use of the going concern basis of accounting
respective Board of Directors of the companies included and, based on the audit evidence obtained, whether a
in the Group are responsible for assessing the ability of material uncertainty exists related to events or conditions
the Group to continue as a going concern, disclosing, as that may cast significant doubt on the ability of the Group
applicable, matters related to going concern and using the to continue as a going concern. If we conclude that a

material uncertainty exists, we are required to draw other financial information of subsidiary as noted in
attention in our auditor’s report to the related disclosures the other matter paragraph, we report, to the extent
in the Consolidated Financial Statements or, if such applicable, that:
disclosures are inadequate, to modify our opinion. Our
(a) We have sought and obtained all the information
conclusions are based on the audit evidence obtained up to
and explanations which to the best of our
the date of our auditor’s report. However, future events or
knowledge and belief were necessary for the
conditions may cause the Group to cease to continue as a
purposes of our audit of the aforesaid consolidated
going concern.
− Evaluate the overall presentation, structure and content
(b) In our opinion, proper books of account as required
of the Consolidated Financial Statements, including the
by law relating to preparation of the aforesaid
disclosures, and whether the Consolidated Financial
consolidated financial statements have been kept
Statements represent the underlying transactions and
so far as it appears from our examination of those
events in a manner that achieves fair presentation.
books and the reports of the other auditors.
Materiality is the magnitude of misstatements in the
(c) The Consolidated Balance Sheet, the Consolidated
Consolidated Financial Statements that, individually or in
Statement of Profit and Loss including Other
aggregate, makes it probable that the economic decisions of a
Comprehensive Income, Consolidated Statement of
reasonably knowledgeable user of the Consolidated Financial
Changes in Equity and the Consolidated Statement
Statements may be influenced. We consider quantitative
of Cash Flow dealt with by this Report are in
materiality and qualitative factors in (i) planning the scope of
agreement with the relevant books of account
our audit work and in evaluating the results of our work; and
maintained for the purpose of preparation of the
(ii) to evaluate the effect of any identified misstatements in
consolidated financial statements.
the Consolidated Financial Statements.
(d) In our opinion, the aforesaid Consolidated Financial
We communicate with those charged with governance
Statements comply with the Indian Accounting
regarding, among other matters, the planned scope and
Standards specified under Section 133 of the Act,
timing of the audit and significant audit findings, including
read with Companies (Indian Accounting Standards)
any significant deficiencies in internal control that we identify
Rules, 2015, as amended.
during our audit.
(e) On the basis of the written representations
We also provide those charged with governance with a
received from the directors of the Holding
statement that we have complied with relevant ethical
Company as on March 31, 2023 taken on record
requirements regarding independence, and to communicate
by the Board of Directors of the Holding Company
with them all relationships and other matters that may
and the reports of the statutory auditors of its
reasonably be thought to bear on our independence, and
subsidiary company incorporated in India, none of
where applicable, related safeguards.
the directors of the Group companies incorporated
From the matters communicated with those charged with in India is disqualified as on March 31, 2023 from
governance, we determine those matters that were of being appointed as a director in terms of Section
most significance in the audit of the consolidated financial 164 (2) of the Act.
statements for the financial year ended March 31, 2023
(f) With respect to the adequacy of the internal
and are therefore the key audit matters. We describe these
financial controls over financial reporting of the
matters in our auditors’ report unless law or regulation
Holding Company and its subsidiary incorporated
precludes public disclosure about the matter or when,
in India and the operating effectiveness of such
in extremely rare circumstances, we determine that a
controls, refer to our separate report in ‘Annexure
matter should not be communicated in our report because
A’. Our report expresses an unmodified opinion on
the adverse consequences of doing so would reasonably
the adequacy and operating effectiveness of the
be expected to outweigh the public interest benefits of
Group’s internal financial controls with reference to
such communication.
consolidated financial statements.
Report on Other Legal and Regulatory Requirements (g) With respect to the other matters to be included in
1. As required by Section 143(3) of the Act, based on the Auditor’s Report in accordance with Rule 11 of
our audit and on the consideration of report of the the Companies (Audit and Auditors) Rules, 2014,
other auditor on separate financial statements and the as amended in our opinion and to the best of our

information and according to the explanations given best of their knowledge and belief,
to us: no funds (which are material either
individually or in the aggregate) have
i. The consolidated financial statements
been received by the Holding Company
disclose the impact of pending litigations
or by the subsidiary from any person or
on the consolidated financial position of the
entity, including foreign entity (“Funding
Group– Refer Note 40 to the Consolidated
Parties”), with the understanding,
Financial Statements;
whether recorded in writing or
ii. Provision has been made in the consolidated otherwise, that the Holding Company or
financial statements, as required under the subsidiary shall, directly or indirectly,
the applicable law or Indian Accounting lend or invest in other persons or entities
Standards, for material foreseeable losses, identified in any manner whatsoever
if any, on long-term contracts including by or on behalf of the Funding Party
derivative contracts. - Refer Note 15 to the (“Ultimate Beneficiaries”) or provide any
Consolidated Financial Statements; guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
iii. There has been no delay in transferring
amounts, required to be transferred, to the c. Based on the audit procedures that
Investor Education and Protection Fund by the have been considered reasonable
Holding Company and its subsidiary company; and appropriate in the circumstances
performed by us on the Company and its
iv. a. The respective managements of the
subsidiary, whose financial statements
Holding Company and its subsidiary,
have been audited respectively, nothing
whose financial statements have been
has come to our notice that has caused
audited under the Act, have represented
us to believe that the representations
to us and the other auditor that, to the
under sub-clause (i) and (ii) of Rule 11(e),
best of their knowledge and belief,
as provided under (a) and (b) above,
no funds (which are material either
contain any material misstatement.
individually or in the aggregate) have
been advanced or loaned or invested v. The Holding Company and its subsidiary has
(either from borrowed funds or share not declared and paid any dividend during the
premium or any other sources or kind year and has not proposed any dividend for
of funds) by the Holding Company or the year. Therefore, reporting in this regard is
by the subsidiary to or in any other not applicable to the Group.
person or entity, including foreign
vi. Proviso to Rule 3(1) of the Companies
entity (“Intermediaries”), with the
(Accounts) Rules, 2014 for maintaining books
understanding, whether recorded
of account using accounting software which
in writing or otherwise, that the
has a feature of recording audit trail (edit log)
Intermediary shall, directly or indirectly
facility is applicable with effect from April
lend or invest in other persons or entities
1, 2023 to the Company and its subsidiaries,
identified in any manner whatsoever
which are companies incorporated in India,
by or on behalf of the Holding Company
and accordingly, reporting under Rule 11(g) of
or of the subsidiary (“Ultimate
Companies (Audit and Auditors) Rules, 2014
Beneficiaries”) or provide any guarantee,
is not applicable for the financial year ended
security or the like on behalf of the
March 31, 2023.
Ultimate Beneficiaries.
2. In our opinion and to the best of our information
b. The respective Managements of the
and according to the explanations given to us, the
Holding Company and its subsidiary,
remuneration paid by the Group to its directors during
whose financial statements have been
the year is in accordance with the provisions of section
audited under the Act, have represented
197 of the Act.
to us and the other auditor that, to the

3. With respect to the matters specified in paragraphs Company, to which reporting under CARO is applicable,
3(xxi) and 4 of the Companies (Auditor’s Report) Order, provided to us by the Management of the Holding
2020 (the “Order”/ “CARO”) issued by the Central Company and based on the identification of matters of
Government in terms of Section 143(11) of the Act, to qualifications or adverse remarks in the CARO reports,
be included in the Auditor’s report, based on the CARO we report that in respect of those companies where
report issued by us for the Holding Company and CARO audits have been completed under section 143 of the
report issued by the auditor of the subsidiary included Act, the auditors of such companies have not reported
in the consolidated financial statements of the Holding any qualifications or adverse remarks.


Partner Partner
UDIN: 23088926BGXBAH4512 UDIN: 23057986BGVLHJ7251
Date: May 18, 2023 Date: May 18, 2023


ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report
to the Members of PNB Housing Finance Limited of even date)
REPORT ON THE INTERNAL FINANCIAL CONTROLS controls with reference to consolidated financial statements
OVER FINANCIAL REPORTING UNDER CLAUSE and their operating effectiveness. Our audit of internal
(I) OF SUB-SECTION 3 OF SECTION 143 OF THE financial controls with reference to consolidated financial
COMPANIES ACT, 2013 (THE “ACT”) statements included obtaining an understanding of internal
In conjunction with our audit of the consolidated financial financial controls with reference to consolidated financial
statements of the Company as of and for the year ended statements, assessing the risk that a material weakness
March 31, 2023, we have audited the internal financial exists, and testing and evaluating the design and operating
controls over financial reporting of PNB Housing Finance effectiveness of internal control based on the assessed
Limited (hereinafter referred to as the “Holding Company”) risk. The procedures selected depend on the auditor’s
and its subsidiary company (the Holding Company and its judgment, including the assessment of the risks of material
subsidiary together referred to as “the Group”)., which are misstatement of the consolidated financial statements,
companies incorporated in India, as of that date. whether due to fraud or error.
We believe that the audit evidence we have obtained and the

MANAGEMENT’S RESPONSIBILITY FOR INTERNAL audit evidence obtained by the other auditor of the subsidiary
FINANCIAL CONTROLS company incorporated in India, in terms of their reports
The respective Boards of Directors of the Holding referred to in the ‘Other Matters’ paragraph is sufficient
Company and its subsidiary company, which are companies and appropriate to provide a basis for our audit opinion on
incorporated in India, are responsible for establishing and the Group’s internal financial controls system over financial
maintaining internal financial controls based on the internal reporting with reference to consolidated financial statements.
control over financial reporting criteria established by the
respective Companies considering the essential components MEANING OF INTERNAL FINANCIAL CONTROLS
of internal control stated in the Guidance Note on Audit of WITH REFERENCE TO CONSOLIDATED FINANCIAL
Internal Financial Controls Over Financial Reporting issued STATEMENTS
by the Institute of Chartered Accountants of India (the “ICAI”). A company’s internal financial control with reference to
These responsibilities include the design, implementation and consolidated financial statements is a process designed to
maintenance of adequate internal financial controls that were provide reasonable assurance regarding the reliability of
operating effectively for ensuring the orderly and efficient financial reporting and the preparation of financial statements
conduct of its business, including adherence to the respective for external purposes in accordance with generally accepted
company’s policies, the safeguarding of its assets, the accounting principles. A company’s internal financial
prevention and detection of frauds and errors, the accuracy control with reference to consolidated financial statements
and completeness of the accounting records, and the timely includes those policies and procedures that (1) pertain to the
preparation of reliable financial information, as required maintenance of records that, in reasonable detail, accurately
under the Act. and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that
AUDITOR’S RESPONSIBILITY transactions are recorded as necessary to permit preparation
Our responsibility is to express an opinion on the internal of financial statements in accordance with generally accepted
financial controls over financial reporting of the Holding accounting principles, and that receipts and expenditures
Company and its subsidiary company, which are companies of the company are being made only in accordance with
incorporated in India, based on our audit. We conducted authorizations of management and Directors of the company;
our audit in accordance with the Guidance Note on Audit and (3) provide reasonable assurance regarding prevention
of Internal Financial Controls Over Financial Reporting or timely detection of unauthorized acquisition, use, or
(the “Guidance Note”) issued by the Institute of Chartered disposition of the company’s assets that could have a material
Accountants of India (“ICAI”) and the Standards on Auditing, effect on the financial statements.
prescribed under Section 143(10) of the Act to the extent
applicable to an audit of internal financial controls with INHERENT LIMITATIONS OF INTERNAL FINANCIAL
reference to consolidated financial statements. Those CONTROLS WITH REFERENCE TO CONSOLIDATED
Standards and the Guidance Note require that we comply FINANCIAL STATEMENTS
with ethical requirements and plan and perform the audit to Because of the inherent limitations of internal financial
obtain reasonable assurance about whether adequate internal controls with reference to consolidated financial statements,
financial controls with reference to consolidated financial including the possibility of collusion or improper management
statements were established and maintained and if such override of controls, material misstatements due to error or
controls operated effectively in all material respects. fraud may occur and not be detected. Also, projections of any
Our audit involves performing procedures to obtain audit evaluation of the internal financial controls with reference
evidence about the adequacy of the internal financial to consolidated financial statements to future periods are
subject to the risk that the internal financial control with

reference to consolidated financial statements may become such companies considering the essential components of
inadequate because of changes in conditions, or that the such internal controls stated in the Guidance Note on Audit of
degree of compliance with the policies or procedures Internal Financial Controls Over Financial Reporting issued by
may deteriorate. the Institute of Chartered Accountants of India (the ‘Guidance
Note’).
OPINION
In our opinion, the Holding Company and its subsidiary OTHER MATTERS
company incorporated in India, have, in all material respects, Our aforesaid report under Section 143 (3) (i) of the Act on
an adequate internal financial controls with reference to the the adequacy and operating effectiveness of the internal
consolidated financial statements and such internal financial financial controls over financial reporting with reference to
controls were operating effectively as at March 31, 2023, Consolidated Financial Statements insofar as it related to
based on the internal financial controls with reference to subsidiary company, is based on the corresponding report of
consolidated financial statements criteria established by auditors of subsidiary company.


Partner Partner
UDIN: 23088926BGXBAH4512 UDIN: 23057986BGVLHJ7251
Date: May 18, 2023 Date: May 18, 2023


CONSOLIDATED BALANCE SHEET
as at March 31, 2023
(J in crore)
As at As at
Particulars Notes
March 31, 2023 March 31, 2022
ASSETS
Financial assets
Cash and cash equivalents 3 3,677.82 5,065.62
Bank balance other than cash and cash equivalents 4 118.38 150.47
Derivative financial instruments 15 660.04 242.25
Receivables 5
Trade receivables 12.86 42.76
Other receivables 0.01 0.04
Loans 6 57,839.79 55,335.94
Investments 7 3,196.29 3,482.70
Other financial assets 8 754.64 673.91
66,259.83 64,993.69
Current tax assets (net) 9 264.03 47.30
Deferred tax assets (net) 10 145.67 398.90
Investment property 11 0.52 0.53
Property, plant and equipment 12 66.19 71.38
Right of use assets 12 65.59 60.47
Capital work-in-progress 12.1 0.08 -
Intangible assets under development 12.2 3.08 3.54
Other Intangible assets 13 14.01 18.02
Other non- financial assets 14 54.70 26.95
Assets held for sale 35 - 108.83
613.87 735.92
Total 66,873.70 65,729.61
LIABILITIES AND EQUITY
Liabilities
Payables
Trade payables 16
Total outstanding dues of creditors other than micro enterprises and small 28.51 16.29
enterprises
Other payable
Total outstanding dues of micro enterprises and small enterprises - -
Total outstanding dues of creditors other than micro enterprises and small - -
enterprises
Debt securities 17 3,994.09 6,201.97
Borrowings (other than debt securities) 18 31,174.70 27,715.84
Deposits 19 17,214.24 17,605.14
Subordinated liabilities 20 1,238.35 1,438.18
Other financial liabilities 21 1,963.15 2,564.63
55,614.78 55,542.05
Provisions 22 17.72 17.33
Other non-financial liabilities 23 227.34 298.60
245.06 315.93
Equity
Equity share capital 24 168.86 168.60
Other equity 25 10,845.00 9,703.03
Total equity 11,013.86 9,871.63
Total 66,873.70 65,729.61
Overview, principles of consolidation and significant accounting policies 1&2
The accompanying notes are an integral part of the consolidated financial statements.
FR No.: 006711N/N500028
M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.
FR No.: 302049E
M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi
Date: May 18, 2023

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

(J in crore)
Particulars Notes Current Year Previous Year
Revenue from operations

Interest income 26 6,199.07 5,822.00
Fees and commission income 27 283.26 262.55
Net gain on fair value changes 28 34.10 111.38
Income on derecognised (assigned) loans 10.90 -
Total revenue from operations 6,527.33 6,195.93
Other income 2.33 4.80
Total income 6,529.66 6,200.73
Expenses
Finance costs 29 3,898.52 4,064.46
Impairment on financial instruments and write offs 30 691.28 576.36
Employee benefits expenses 31 265.96 216.61
Fees and commission expenses 11.52 11.12
Depreciation, amortisation and impairment 51.44 53.39
Others expenses: 32
- Impairment/loss on assets held for sale 47.65 7.86
- Other expenses 202.38 186.97
Total expenses 5,168.75 5,116.77
Profit before exceptional items & tax 1,360.91 1,083.96
Exceptional items - -
Tax expense/(credit)
Current tax 33 87.78 249.15
Deferred tax [charge/(credit)] 33 227.13 (1.67)
Profit for the year 1,046.00 836.48
Other comprehensive income/(loss)
A (i) Items that will not be reclassified to profit or loss
Remeasurement gain / (loss) on defined benefit plan (0.69) 1.34
(ii) Tax relating to items that will not be reclassified to profit or loss 0.17 (0.34)
Subtotal (A) (0.52) 1.00
B (i) Items that will be reclassified to profit or loss
Cash flow hedge 103.67 128.69
(ii) Tax relating to items that will be reclassified to profit or loss (26.09) (32.39)
Subtotal (B) 77.58 96.30
Other comprehensive income/(loss) (A+B) 77.06 97.30
Total comprehensive income for the year 1,123.06 933.78
Profit for the year, net of tax attributable to
Owners of the parent 1,046.00 836.48
Non-controlling interest - -
Other comprehensive income/(loss) for the year, net of tax attributable to
Owners of the parent 77.06 97.30
Total comprehensive income for the year, net of tax attributable to
Owners of the parent 1,123.06 933.78
Earnings per equity share (Face value of H 10 each fully paid up)
Basic (H) 34 62.01 49.64
Diluted (H) 34 61.95 49.53
Overview, principles of consolidation and significant accounting policies 1&2
FR No.: 006711N/N500028
M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.
FR No.: 302049E
M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi
Date: May 18, 2023

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A. Equity share capital*

(J in crore)
Particular Share Capital due to as at

(J in crore)
Particular Share Capital due to as at
*Refer note 24.
B. Other equity*
(J in crore)
Other
income
Share Total other
Particular
allotment
Balances as at April 1, 2021 - 4,047.90 1,010.76 126.97 73.29 3,712.55 (216.71) 8,754.76
Changes in accounting policy/prior - - - - - - -
period errors
the year
Profit for the year - - - - - 836.48 - 836.48
Remeasurement of net defined - - - - - 1.00 - 1.00
Total comprehensive income for - - - - - 837.48 96.30 933.78
the year
the year
lapsed/ expired
Balances as at March 31, 2022 - 4,062.41 1,134.76 167.97 55.54 4,402.76 (120.41) 9,703.03
Changes in accounting policy/prior - - - - - - -
period errors
the year
Profit for the year - - - - - 1,046.00 - 1,046.00
Remeasurement of net defined - - - - - (0.52) - (0.52)
Total comprehensive income for - - - - - 1,045.48 77.58 1,123.06
the year

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(J in crore)
Other
income
Share Total other
Particular
allotment
Share application money received 0.20 - - - - - - 0.20
during the year
the year
lapsed/ expired
Others - - - - - 0.01 - 0.01
Balances as at March 31, 2023 0.20 4,072.48 1,179.76 334.97 50.01 5,250.41 (42.83) 10,845.00
*Refer Note 25 for nature and the purpose of reserves.
#As per Section 29C(i) of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profit every year to a reserve
before any dividend is declared. For this purpose any Special Reserve created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961
is considered to be an eligible transfer. The Company has transferred an amount of H 45.00 crore (Previous year H 124.00 crore) to Special Reserve in
terms of Section 36(1) (viii) of the Income Tax Act, 1961.
##The Company has transferred an amount of H 167.00 crore (Previous year H 41.00 crore) to Statutory Reserve u/s 29C of the National Housing Bank
Act, 1987.

FR No.: 006711N/N500028
M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.
FR No.: 302049E
M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi
Date: May 18, 2023

CONSOLIDATED STATEMENT OF CASH FLOW
(J in crore)
Cash flow from operating activities

Adjustment to reconcile profit before tax to net cash flows:
Depreciation and amortisation 51.44 53.39
Net loss on sale of property, plant and equipment 0.19 0.19
Impairment on financial instruments (1,046.92) 14.33
Net loss on financial asset at fair value through profit and loss 2.80 10.04
Share based payment expense 11.95 3.67
Effective interest rate on financial assets (24.43) (11.30)
Effective interest rate on financial liabilities 16.04 111.03
Interest expenses 3,892.34 4,057.94
(Income)/unwinding on derecognised (assigned) loans (84.39) 232.13
Restructure loss/(gain) on financial assets 4.86 (13.93)
Interest on leases including modification gain/(loss) 5.67 6.52
Advances written-off 2.23 -
Bad debts written-off 1,738.20 562.03
4,617.63 5,033.90
Operating profits before changes in working capital 5,978.54 6,117.86
Working Capital changes
Increase/(decrease) in trade payables 13.96 (1.53)
Decrease/(increase) in provisions (0.30) 0.28
(Decrease)/increase in other financial liabilities (518.43) 205.67
(Decrease)/increase in non- financial liabilities (71.26) 48.10
(Increase)/decrease in loans at amortised cost (3,081.80) 4,769.22
Decrease/(increase) in receivables 29.97 2.16
Decrease in other financial assets 3.03 1.03
(Increase)/decrease in other non- financial assets (27.75) 5.80
Proceeds from sale of asset held for sale 61.18 19.79
Decrease/(increase) in bank balance other than cash and cash equivalents 32.09 (150.40)
(3,559.31) 4,900.12
Cash generated from / (used in) operations before adjustments for interest and taxes paid 2,419.23 11,017.98
Interest Paid (3,979.92) (4,404.01)
Taxes paid (net of refunds) (304.34) (359.71)
Net cash (used in) / generated from operating activities (1,865.03) 6,254.26
Cash flow from investing activities
Purchase of property, plant and equipment and other intangible assets (13.00) (13.97)
Capital work-in-progress and intangible assets under development (net) (1.85) (1.16)
Proceeds from sale of property, plant and equipment and other intangible assets 0.17 0.13
Investments (net) 190.46 (1,459.99)
Net cash generated from / (used in) investing activities 175.78 (1,474.99)

CONSOLIDATED STATEMENT OF CASH FLOW

(J in crore)
Cash flow from financing activities*

Proceeds from
Debt securities and subordinated liabilities 149.99 455.00
Borrowings from banks 17,771.75 19,648.26
Deposits (net) (394.79) 903.21
Commercial paper 50.00 -
Repayment of
Debt securities and subordinated liabilities (2,560.00) (4,673.00)
Borrowings from banks (14,636.84) (21,920.17)
Commercial paper (50.00) (1,125.00)
Lease Liability (35.85) (31.67)
Proceeds from issue of share capital including securities premium 7.21 11.15
Net cash generated from / (used in) financing activities 301.47 (6,732.22)
Net changes in cash & cash equivalents (1,387.78) (1,952.95)
Cash and cash equivalents at the beginning of the year 5,015.61 6,968.56
Cash and cash equivalents at the end the of the year 3,627.83 5,015.61
Net (decrease) / increase of cash & cash equivalents during the year (1,387.78) (1,952.95)
Components of cash and cash equivalents
Balances with banks in current accounts 558.72 512.19
Bank deposit with maturity of less than 3 months 3,117.61 4,552.31
Less: Overdraft facility against term deposits (as per note 18 to the financial statements) (49.99) (50.01)
3,627.83 5,015.61
*Refer Note no 45 for change in liabilities arising from financing activities.
Note : Figures in bracket denotes application of cash.

FR No.: 006711N/N500028
M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.
FR No.: 302049E
M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi
Date: May 18, 2023

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. OVERVIEW AND PRINCIPLES OF CONSOLIDATION to time and the Non-Banking Financial Company–Housing
Finance Company (Reserve Bank) Directions, 2021 (‘RBI
1.1. Overview Directions’) as amended from time to time and the RBI
PNB Housing Finance Limited (‘PNBHFL’, ‘the Company’) circular DOR.CRE.REC. No.60/03.10.001/2021-22 dated
was incorporated on November 11, 1988. The Company is October 22, 2021 on “Scale Based Regulation (SBR): A
primarily engaged in the business of providing loans to Revised Regulatory Framework for NBFCs’’
individuals and corporate bodies for purchase, construction,
The consolidated financial statements relate to the Company
repair and up-gradation of houses. It also provides loans
and its wholly owned subsidiary Companies (herewith
for commercial space, loan against property and loan for
referred to as “Company”) incorporated in India.
purchase of residential plots. The Company is deposit taking
Housing Finance Company registered with National Housing The consolidated financial statements are presented in Indian
Bank (NHB) under Section 29A of the National Housing Bank Rupees (H) which is the functional and presentation currency
Act, 1987. The Company is listed on BSE Limited and National of the Company and all values are rounded to the nearest
Stock Exchange of India Limited. The Company’s registered crore with two decimals, except when otherwise indicated.
office is at 9th floor, Antriksh Bhawan, 22, K.G. Marg, New
Balance sheet analysis regarding recovery or settlement
Delhi -110001.
within 12 months after the reporting date and more than 12
PHFL Home and Loans Services Limited wholly owned months after the reporting date is presented in note 46.
subsidiary of the Company is primarily engaged in the
Accounting policies have been consistently applied except
business of rendering of professional /consultancy services
where a newly issued Ind AS is initially adopted or a revision
including sourcing, marketing, promoting, publicising,
to an existing Ind AS requires a change in the accounting
advertising, soliciting, distributing any kind of financial
policy hitherto in use.
instruments or classes of insurance product, syndicated
credit products, investment products and wealth products.
1.3. Principles of consolidation
These consolidated financial statements are approved and The Company consolidates an entity only when it has a
adopted by the Board of Directors of the Company in their control over the entity and has a right to receive variable
meeting held on May 18, 2023. However, the Shareholders returns from its involvement with the investee and has
have the power to amend the financial statement after issue. the ability to affect those returns through its power over
the investee.
1.2. Statement of Compliance and basis of preparation
and presentation The consolidated financial statements are prepared using
uniform accounting policies for like transactions and other
The consolidated financial statements are prepared in
events in similar circumstances. If a member of the Company
accordance with provision contained in section 129 of the
uses accounting policies other than those adopted in the
Companies Act, 2013, read with Division III of Schedule III as
consolidated financial statements for like transactions and
amended from time to time. The Statement of Cash Flows has
events in similar circumstances, appropriate adjustments are
been prepared and presented as per Ind AS 7 “Statement of
made to that Company financial statements in preparing the
Cash Flows”.
consolidated financial statements to ensure conformity with
The consolidated financial statements have been prepared the Company’s accounting policies.
under the historical cost convention on accrual basis except
The financial statement of the Company and its subsidiary are
where quantum of accruals cannot be ascertained with
consolidated on line-by-line basis, by combining the like items
reasonable certainty. Following are measured on each
of assets, liabilities, income, expense, cash flow and after
reporting date:
eliminating the carrying amount of the parent’s investment
− Certain financial assets and liabilities (including derivative in subsidiary and the parent’s portion of equity of subsidiary,
instruments) that is measured at fair value. the intra company balances and transactions resulting in
unrealised profits or losses.
− Defined benefit liability/(assets): present value of defined
benefit obligation less fair value of plan assets. Profit or loss and each component of OCI are attributed to
the equity holders of the parent Company and to the non-
− Financial instrument - measured at fair value.
controlling interests, even if this results in the non-controlling
The consolidated financial statements comply in all material interests having a deficit balance.
aspects with the Indian Accounting Standards (Ind AS) as per
The financial statements of all Companies used for the
the Companies (Indian Accounting Standards) Rules, 2015
purpose of consolidation are drawn up to same reporting
as amended from time to time, notified under section 133
date as that of the holding Company. (i.e. year ended and as at
of the Companies Act, 2013 and the relevant provisions of
March 31st).
the National Housing Bank Act, 1987 as amended from time


The subsidiary considered in consolidated financial statement is as under:

Name of the entity Proportion of ownership* Country of incorporation Date of incorporation Principal activities
PHFL Home Loans and Services Limited 100% India August 22, 2017 Professional, consultancy
and advisory services
The subsidiary not considered in consolidated financial statement is as under:

Name of the entity Proportion of ownership* Country of incorporation Date of incorporation Principal activities
Pehel Foundation 100% India October 14, 2019 Charitable activities
Pehel Foundation is registered as a charitable organisation in business model and so a prospective change to the
under Section 8 of the Companies Act, 2013 and it is classification of the assets.
prohibited to give any right over its profits to any of its
members. Since PNBHFL does not have any right over any b) Fair value of financial instruments
kind of returns from Pehel Foundation hence it does not meet The fair value of financial instruments is the price that
the criteria of consolidation of financial statements laid down would be received upon selling of an asset or paid
under Ind AS 110. upon transfer of a liability in an orderly transaction
*Including nominee shareholders in the principal (or most advantageous) market at the
measurement date under current market conditions
2. SIGNIFICANT ACCOUNTING POLICIES (i.e., an exit price) regardless of whether that price is
directly observable or estimated using another valuation
2.1. Use of estimates, judgements and assumptions technique. When the fair values of financial assets and
The preparation of financial statements in conformity with Ind financial liabilities recorded in the balance sheet cannot
AS requires the management to make judgments, estimates be derived from active markets, they are determined
and assumptions that affect the reported amounts of using a variety of valuation techniques that include the
revenues, expenses, assets and liabilities and the disclosure use of valuation models. The inputs to these models
of contingent liabilities, at the end of the reporting year. are taken from observable markets where possible,
Although these estimates are based on the management’s but where this is not feasible, estimation is required
best knowledge of current events and actions, uncertainty in establishing fair values. Judgements and estimates
about these assumptions and estimates could result in the include considerations of liquidity and model inputs
outcomes requiring a material adjustment to the carrying related to items such as credit risk (both own and
amounts of assets or liabilities in future periods. Estimates counterparty), funding value adjustments, correlation
and underlying assumptions are reviewed on an ongoing and volatility.
basis. Revisions to the accounting estimates are recognised in
the period in which the estimates are known or materialised. c) Effective Interest Rate (EIR) method
EIR methodology recognises interest income / expense
Some of the judgements, which have a significant risk of
using a rate of return that represents the best estimate
causing a material adjustment to the carrying amounts of
of a constant rate of return over the expected behavioral
assets and liabilities are:
life of loans given / taken and recognises the effect of
potentially different interest rates at various stages and
a) Business model assessment
other characteristics of the product life cycle (including
Classification and measurement of financial assets prepayments, penalty interest and charges).
depends on the results of the solely payments of
principal and interest (SPPI) and the business model This estimation, by nature, requires an element of
test. The Company determines the business model at judgement regarding the expected behavior and life-
a level that reflects how groups of financial assets are cycle of the instruments, as well as expected changes
managed together to achieve a particular business to interest rates and other fee income/expense that are
objective. This assessment includes judgement integral parts of the instrument.
reflecting all relevant evidence including how the
performance of the assets is evaluated and measured, d) Impairment of financial asset
the risks that affect the performance of the assets and The measurement of impairment losses across all
how these are being managed. The Company monitors categories of financial assets requires judgement, in
financial assets on a continuous basis to assess particular, the estimation of the amount and timing
whether the business model for which the financial of future cash flows and collateral values when
assets are held continues to be appropriate and if it determining impairment losses and the assessment of a
is not appropriate whether there has been a change significant increase in credit risk. These estimates are

driven by a number of factors, changes in which can This estimate also requires determination of the most
result in different levels of allowances. Refer note 2.21. appropriate inputs to the valuation model including the
expected life of the share option, volatility and dividend
e) Provisions and other contingent liabilities yield and making assumptions about them.
The Company operates in a regulatory and legal
environment that, by nature, has a heightened element 2.2 Cash and cash equivalents
of litigation risk inherent to its operations. Cases where Cash and cash equivalent comprises cash/ stamp on hand,
Company can reliably measure the outflow of economic demand deposits and time deposits with original maturity of
benefits in relation to a specific case and considers such less than three months from the date of acquisition, highly
outflows probable, it recognises a provision against the liquid investments that are readily convertible in the known
same. Where the probability of outflow is considered amounts of cash and which are subject to insignificant risk of
remote, or probable, but a reliable estimate cannot be change in value, debit balance in cash credit account.
made, a contingent liability is disclosed for the same.
Time deposits held with bank, with original maturity of more
than three months but less than twelve months is a part of
f) Defined Benefit Plans
bank balance other than cash and cash equivalents.
The cost of the defined benefit gratuity plan and the
present value of the gratuity obligation are determined For the purpose of the statement of cash flow, cash and cash
using actuarial valuations. An actuarial valuation equivalents consists of cash at banks and on hand and short
involves making various assumptions that may differ term deposits, as defined above.
from actual developments in the future. These include
the determination of the discount rate, future salary 2.3 Revenue Recognition
increases and mortality rates. Due to the complexities
a) Interest and related income
involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes Interest income for all financial instruments measured
in these assumptions. All assumptions are reviewed at either at amortised cost or at fair value through other
each reporting date. comprehensive income, is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts
g) Deferred tax assets the estimated future cash payments or receipts over
the expected life of the financial instrument or a shorter
The extent to which deferred tax assets can be
period, where appropriate, to the gross carrying amount
recognised is based on an assessment of the probability
of the financial asset. The calculation takes into account
of the future taxable income against which the deferred
all contractual terms of the financial instrument (for
tax assets can be utilised.
example, prepayment options) and includes any discount
or premium on acquisition, fees or incremental costs
h) Useful Life of Property, Plant and Equipment (PPE) and
that are directly attributable and are an integral part of
Intangible assets
the EIR, but not future credit losses.
The Company reviews its estimate of the useful life of
PPE and intangible assets at each reporting date, based The Company calculates interest income by applying
on the expected utility of the PPE and intangible assets. the EIR to the gross carrying amount of financial assets
Uncertainties in these estimates relate to technical and other than credit-impaired assets. When a financial asset
economic obsolescence that may change the utility becomes credit-impaired and is, therefore, regarded
of PPE and intangible assets. In case of a revision of as ‘Stage 3’, the Company calculates interest income
useful life, the unamortised depreciable amount is by applying the EIR on net amount (i.e. gross carrying
charged over the remaining useful life of the PPE and amount less allowance for expected credit loss) . If the
intangible assets. financial assets cures and is no longer credit-impaired,
the Company reverts to calculating interest income on a
i) Share-Based Payments gross basis.
The Company measures the cost of equity-settled Interest income on all trading assets measured at fair
transactions with employees using Black-Scholes Model value through profit and loss (FVTPL) is recognised
to determine the fair value of the liability incurred on using the contractual interest rate under interest income
the grant date. Estimating fair value for share-based and the fair value impact is recognised in net gain / loss
payment transactions requires determination of the most on fair value changes.
appropriate valuation model, which is dependent on the
terms and conditions of the grant.


b) Dividend income of bringing the asset to its working condition for its
Dividend income is recognised when the Company’s intended use. Subsequent expenditure related to PPE
right to receive the payment is established, it is probable are capitalised only when it is probable that future
that the economic benefits associated with the dividend economic benefits associated with these will flow to the
will flow to the entity and the amount of the dividend Company and the cost of item can be measured reliably.
can be measured reliably. This is generally when Other repairs and maintenance costs are expensed off
shareholders approve the dividend. as and when incurred.
An item of PPE and any significant part initially

c) Profit on derecognition of financial assets recognised is derecognised upon disposal or when no
When the Company transfers the financial asset in a future economic benefits are expected from its use.
transfer that qualifies for derecognition in its entirety Any gain or loss arising on derecognition of the asset
then whole of the interest spread and net servicing (calculated as the difference between the net disposal
fees (over the expected life of the asset) is recognised proceeds and the carrying amount of the asset) is
at present value on the date of derecognition itself as included in the statement of profit and loss when the
interest-only strip / net servicing fees receivable and asset is derecognised.
correspondingly recognised as profit on derecognition of
Capital work in progress includes assets which
financial asset.
are not ready for the intended use at the end of the
reporting year and is carried at cost including directly
d) Fees and commission income
attributable expenses.
Fees and commissions income i.e. login fee, penal
interest on defaults, pre-payment / other charges, b) Intangible assets
fees for advertising in offices / website etc. (other
Intangible assets acquired separately are measured on
than for those items to which Ind AS 109 Financial
initial recognition at cost (excluding tax credits availed,
Instruments are applicable) is recognised in accordance
if any) and are capitalised only when it is probable
with the terms of the relevant contracts / agreements
that future economic benefits associated with these
and when it is probable that the Company will collect
will flow to the Company and the cost of item can be
the consideration.
measured reliably. Cost comprises the purchase price
(excluding tax credits availed, if any) and any attributable
e) Other income
cost of bringing the asset to its working condition for
Income from operating leases are recognised its intended use. Subsequent expenditure related to
in the statement of profit and loss as per the Intangible assets are capitalised only when it is probable
contractual rentals. that future economic benefits associated with these
Interest on tax refunds and other claims where quantum will flow to the Company and the cost of item can be
of accruals cannot be ascertained with reasonable measured reliably. Subsequent to initial recognition,
certainty, are recognised as income only when intangible assets are carried at cost less any
revenue is virtually certain which generally coincides accumulated amortisation and accumulated impairment
with receipts. losses (if any).
Other Income represents income earned from the An intangible asset is derecognised upon disposal
activities incidental to the business and is recognised or when no future economic benefits are expected
when the right to receive the income is established as from its use or disposal. Any gain or loss arising on
per the terms of the contract. derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying
2.4 Property, plant and equipment (PPE) and amount of the asset) is included in the statement of
Intangible assets profit and loss when the asset is derecognised.
Intangible assets which are not ready for the intended

a) PPE
use at the end of the reporting year are disclosed as
PPE are stated at cost (including directly attributable Intangible assets under development.
expenses) less accumulated depreciation and
impairment losses, if any. Cost includes deemed cost 2.5 Depreciation and amortisation
which represents the carrying value of PPE recognised
as at April 1, 2017 measured as per the previous a) Depreciation
Generally Accepted Accounting Principles (GAAP).The Depreciation on PPE is provided on straight-line method
cost of PPE comprises the purchase price (excluding as per the useful life prescribed in Schedule II to the
tax credits availed, if any) and any attributable cost Companies Act, 2013, except for networking equipment

and mobile phone instruments that are depreciated over Investment properties are depreciated using the
a period of five years and three years respectively based straight-line method over their estimated useful lives
on technical evaluation. Leasehold improvements are prescribed in Schedule II of the Companies Act, 2013.
amortised over the period of five years however, where
Though the Company measures investment property
the lease term is less than five years amortisation is
using cost based measurement, the fair value of
restricted to the underlying lease term.
investment property is disclosed in the notes. Fair
All PPE individually costing H5,000 or less are fully values are determined based on an annual evaluation
depreciated in the year of purchase. performed by a registered independent valuer.
Depreciation on additions to PPE is provided on a pro- Investment properties are derecognised either
rata basis from the date the asset is available for use. when they have been disposed off or when they
Depreciation on sale / derecognition of PPE is provided are permanently withdrawn from use and no future
for up to the date of sale / derecognition, as the case economic benefit is expected from their disposal. The
may be. difference between the net disposal proceeds and the
carrying amount of the asset is recognised in profit or
The residual values, useful lives and methods of
loss in the period of derecognition.
depreciation of PPE are reviewed at each financial year-
end and changes (if any) are then treated as changes in
2.7 Foreign Currency
accounting estimates.
Transactions in foreign currencies are initially recorded
b) Amortisation by the Company at their respective functional currency
spot rates at the date the transaction first qualifies
Intangible assets are amortised over a period of five
for recognition.
years or less on straight-line method except website
development costs, which are amortised over a period of Foreign currency denominated monetary assets and
three years on a straight-line basis from the date when liabilities are translated at the functional currency spot
the assets are available for use or the life whichever rates of exchange at the reporting date and exchange
is less. gains and losses arising on settlement and restatement
are recognized in the statement of profit and loss except
The amortisation period and the amortisation method for
for differences arising on cash flow hedges.
these Intangibles with a finite useful life are reviewed at
each financial year-end. Changes in the expected useful Non–monetary items that are measured at historical
life or the expected pattern of consumption of future cost in a foreign currency are translated using the spot
economic benefits embodied in the asset are accounted exchange rates as at the date of initial recognition.
for by changing the amortisation period or methodology,
as appropriate, which are then treated as changes in 2.8 Leases
accounting estimates. The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
2.6 Investment Property conveys the right to control the use of an identified asset
Investment property comprises freehold properties for a period of time in exchange for consideration.
that are held to earn rentals or for capital appreciation
or both. Company as a Lessee
Investment properties are measured initially at cost, The Company applies a single recognition and
including transaction costs. Subsequent to initial measurement approach for all leases, except for
recognition, investment properties are stated at cost less short-term leases and leases of low-value assets. The
accumulated depreciation and accumulated impairment Company recognises lease liabilities to make lease
loss, if any. payments and right-of-use assets representing the right
to use the underlying assets.
Subsequent expenditure is capitalised to the assets
carrying amount only when it is probable that future The Company determines the lease term as the non-
economic benefit associated with the expenditure will cancellable term of the lease, together with any
flow to the Company and the cost of the item can be periods covered by an option to extend the lease if it
measured reliably. All other repair and maintenance is reasonably certain to be exercised, or any periods
costs are recognised in statement of profit or loss covered by an option to terminate the lease, if it is
as incurred. reasonably certain not to be exercised.
ight-of-use assets - The Company recognises right-

R
of-use assets at the commencement date of the lease


(i.e., the date the underlying asset is available for use). 2.10 Impairment of non-financial assets
Right-of-use assets are measured at cost, less any The carrying amount of assets is reviewed at each
accumulated depreciation and impairment losses (if reporting date. If there is any indication of impairment
any), and adjusted for any remeasurement of lease based on internal/external factors, an impairment
liabilities. The cost of right-of-use assets includes the loss is recognised in the statement of profit and loss
amount of lease liabilities recognised, initial direct costs wherever the carrying amount of an asset exceeds its
incurred and lease payments made at or before the recoverable amount.
commencement date less any lease incentives received.
Right-of-use assets are depreciated on a straight-line After impairment, depreciation/amortisation is provided
basis over the lease term. on the revised carrying amount of the asset over its
remaining useful life.
Lease Liability - At the commencement date of the lease,
the Company recognises lease liabilities measured at If at the reporting date there is an indication that
the present value of lease payments to be made over the previously assessed impairment loss no longer exists,
lease term. The lease payments include fixed payments the recoverable amount is reassessed and the asset is
less any lease incentives receivable. Variable lease reflected at the recoverable amount subject to maximum
payments that do not depend on an index or a rate are of depreciable historical cost.
recognised as expenses (unless they are incurred to
produce inventories) in the period in which the event or 2.11 Provisions
condition that triggers the payment occurs. Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
In calculating the present value of lease payments, the
past event and it is probable that an outflow of resources
Company uses its incremental borrowing rate at the
embodying economic benefits will be required to settle
lease commencement date because the interest rate
the obligation and a reliable estimate can be made of the
implicit in the lease is not readily determinable. After the
amount of the obligation.
commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced
2.12 Contingent liabilities, Contingent assets and
for the lease payments made. In addition, the carrying
Commitments
amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in The Company does not recognise a contingent liability but
the lease payments or a change in the assessment of an discloses its existence in the financial statements.
option to purchase the underlying asset. a) Contingent liability is disclosed in case of –
Short-term leases and leases of low-value assets -
− A present obligation arising from past events, when
The Company applies the short-term lease recognition it is not probable that an outflow of resources will be
exemption to its short-term leases (i.e., those leases required to settle the obligation.
that have a lease term of 12 months or less from the
commencement date and do not contain a purchase − A present obligation arising from past events, when
option). It also applies the lease of low-value assets no reliable estimate is possible.
recognition exemption to leases of office equipment − A possible obligation arising from past events, unless
that are considered to be low value. Lease payments on the probability of outflow of resources is remote.
short-term leases and leases of low-value assets are
recognised as expense. Contingent liabilities are reviewed at each balance
sheet date.
Company as a Lessor b) Contingent assets are not recognised in the
The Company as an intermediate lessor, accounts for the financial statements.
head lease and the sublease as two separate contracts.
c) Commitments are future liabilities for contractual
The sub-lease is classified as a finance or operating
expenditure and is disclosed in case of –
lease by reference to the right-of-use asset arising from
the head lease. − Estimated amount of contracts remaining to be
executed on capital account and not provided for;
2.9 Borrowing costs
− Other non-cancellable commitments, if any, to the
Borrowing costs consists of interest and other cost that extent they are considered material and relevant in
the Company incurred in connection with the borrowing the opinion of management.
of funds. Borrowing costs charged to the Statement
of Profit and Loss on the basis of effective interest
rate method.

2.13 Employee Benefits the employees render the service. These benefits include
performance incentive and compensated absences, which are
a) Retirement and other employee benefits expected to occur within twelve months after the end of the
Defined Contribution Plan period in which the employee renders the related service.
Retirement benefit in the form of provident fund and In case of accumulated compensated absences, when
Employee State Insurance Scheme is a defined contribution employees render the services that increase their entitlement
scheme. The Company has no obligation, other than the of future compensated absences; and liabilities recognised in
contribution payable to the provident fund and Employee State respect of other long-term employee benefits are measured
Insurance scheme. The Company recognises contribution at the present value of the estimated future cash outflows
payable to the provident fund and Employee State Insurance expected to be made by the Company in respect of services
scheme as an expense, when an employee renders the provided by employees up to the reporting date.
related service. If the contribution payable to the scheme for
service received before the balance sheet date exceeds the c) Share based payments
contribution already paid, the deficit payable to the scheme The Company operates a number of Employee Stock Option
is recognised as a liability after deducting the contribution Scheme/ Restricted stock units (‘the Scheme’) which
already paid. provides for the grant of options to acquire equity shares
of the Company to its employees. The options granted
Defined Benefit Plan to employees vest in a graded manner and these may be
The Company has defined benefit plans as Compensated exercised by the employees within a specified period. These
absences and Gratuity for all eligible employees, the liability equity-settled share based payments to employees are
for which is determined based on actuarial valuation at each measured at the fair value of the equity instruments at the
year-end using projected unit credit method. grant date.
Re-measurements, comprising of actuarial gains and losses, The fair value determined at the grant date of the equity-
excluding amounts included in net interest on the net defined settled share based payments is expensed on a straight
benefit liability, the effect of the asset ceiling, and the return line basis over the vesting period, based on the Company’s
on plan assets (excluding amounts included in net interest on estimate of equity instruments that will eventually vest, with
the net defined benefit liability), are recognised immediately a corresponding increase in equity (Share option outstanding
in the balance sheet with a corresponding debit or credit to account). The fair value of options is estimated using
retained earnings through OCI in the period in which they valuation techniques, which incorporate exercise price, term,
occur. Re-measurements are not reclassified to profit or loss risk-free interest rates, the current share price, its expected
in subsequent periods. volatility etc.
Past service, costs are recognised in the statement of profit At the end of each reporting period, the Company revises
and loss on the earlier of: its estimate of the number of equity instruments expected
to vest. The impact of the revision of the original estimates,
− The date of the plan amendment or curtailment, and
if any, is recognised in statement of profit and loss such
− The date that the Company recognises related that the cumulative expenses reflects the revised estimate,
restructuring costs. with a corresponding adjustment to the share option
outstanding account.
The Company recognises the following changes in the net
defined benefit obligation as an employee benefits expense in The dilutive effect of outstanding options is reflected as
the statement of profit and loss: additional share dilution in the computation of diluted
earnings per share.
− Service costs comprising current service costs, past-
service costs, gains and losses on curtailments and non-
2.14 Taxes
routine settlements; and
− Net interest expense or income Taxes on income

Tax expense comprises current and deferred tax.
b) Short term and other long term employee benefits
A liability is recognised for benefits to employees in respect a) Current tax
of wages and salaries, annual leave, sick leave and short- Current tax assets and liabilities are measured at the
term employee benefits in the year the related service is amount expected to be recovered from or paid to the
rendered. The undiscounted amount of short-term employee taxation authorities in accordance with Income Tax Act,
benefits expected to be paid in exchange for the services 1961, Income Computation and Disclosure Standards and
rendered by employees are recognised during the year when other applicable tax laws. The tax rates and tax laws


used to compute the amount are those that are enacted Goods and Services Input Tax Credit
or substantively enacted, at the reporting date. Goods and Services tax input credit is recognised in the
Current tax relating to items recognised outside profit period in which the supply of goods or service received
and loss is recognised outside profit and loss (either in is recognised and the conditions to avail the credit are
other comprehensive income or in equity). Current tax fulfilled as per the underlying law.
transaction either in OCI or directly in equity. 2.15 Earnings per Share
Basic earnings per share are calculated by dividing the net
Current tax assets and liabilities are offset if a legally
profit or loss for the year attributable to equity shareholders
enforceable right exists to set off the recognised
by the weighted average number of equity shares outstanding
amounts, and it is intended to realise the asset and settle
during the period.
the liability on a net basis or simultaneously.
For the purpose of calculating diluted earnings per share,
b) Deferred tax the net profit or loss for the year attributable to equity
Deferred tax is provided on temporary differences at shareholders and the weighted average number of shares
the reporting date between the tax bases of assets outstanding during the period are adjusted for the effects of
and liabilities and their carrying amounts for financial all dilutive potential equity shares except where the result
reporting purposes. would be antidilutive.
Deferred tax liabilities are recognised for all taxable 2.16 Financial Instruments
temporary differences.
A financial instrument is any contract that gives rise to a
Deferred tax assets are recognised for all deductible financial asset of one entity and a financial liability or equity
temporary differences, the carry forward of unused instrument of another entity.
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable a) Financial Assets
that taxable profit will be available against which Initial recognition and measurement
the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can Financial assets, with the exception of loans and
be utilised. advances to customers, are initially recognised on the
trade date, i.e., the date that the Company becomes a
The carrying amount of deferred tax assets is reviewed party to the contractual provisions of the instrument.
at each reporting date and reduced to the extent that it Loans and advances to customers are recognised when
is no longer probable that sufficient taxable profit will funds are disbursed to the customers. The classification
be available to allow all or part of the deferred tax asset of financial assets at initial recognition depends on
to be utilised. Unrecognised deferred tax assets are their purpose, characteristics and the intention of the
re-assessed at each reporting date and are recognised management’s while acquiring the same. All financial
to the extent that it has become probable that future assets measured at fair value through profit or loss
taxable profits will allow the deferred tax asset to (FVTPL) are recognised initially at fair value. Financial
be recovered. assets measured at amortised cost or at fair value
Deferred tax assets and liabilities are measured at the through other comprehensive income (FVTOCI) is
tax rates that are expected to apply in the year when recorded at fair value plus transaction costs that are
the asset is realised or the liability is settled, based attributable to the acquisition of that financial asset.
on tax rates (and tax laws) that have been enacted or Trade receivable that does not contain a significant
substantively enacted at the reporting date. financing component are measured at transaction price.
Deferred tax relating to items recognised outside profit Classification and Subsequent measurement
and loss is recognised outside profit and loss (either in For purposes of subsequent measurement, financial
other comprehensive income or in equity). Deferred tax assets are classified in three categories:
transaction either in OCI or directly in equity. − Financial asset at amortised cost
Deferred tax assets and deferred tax liabilities are offset − Financial asset (debt instruments) at FVTOCI
if a legally enforceable right exists to set off current tax − Financial asset at FVTPL
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity.

Financial asset at amortised costs measured at FVTPL. All financial liabilities, other than
Financial asset is measured at the amortised cost if both classified at FVTPL, are classified at amortised cost in
the following conditions are met: which case they are initially measured at fair value, net
of transaction costs and subsequently at amortised cost
i) The asset is held within a business model whose
using effective interest rate.
objective is to hold assets for collecting contractual
cash flows, and Amortised cost is calculated by taking into account
ii) Contractual terms of the asset give rise on any fees, commission / brokerage and ancillary costs
specified dates to cash flows that are solely incurred in relation to the financial liability.
payments of principal and interest (SPPI) on the
principal amount outstanding. c) Equity Instruments
After initial measurement, such financial assets are An equity instrument is any contract that evidences
subsequently measured at amortised cost using the a residual interest in the assets of an entity after
effective interest rate (EIR) method less impairment deducting all of its liabilities. Equity instruments are
(if any). Amortised cost is calculated by taking into recognised at the face value and proceeds received
account any discount or premium on acquisition in excess of the face value are recognised as
and fees received and the costs incurred on share premium.
acquisition of financial asset. The EIR amortisation
is included in interest income in the statement of Offsetting a Financial Asset and a Financial Liability
profit and loss. The losses arising from impairment Financial assets and financial liabilities are offset and
are recognised in the statement of profit and loss. the net amount is reported in the balance sheet if there
is an intention to settle on a net basis, to realize the
Financial assets (debt instruments) at FVTOCI assets and settle the liabilities simultaneously.
Financial asset (debt instruments) is classified as at the
FVTOCI if both of the following criteria are met: 2.17 Derivative financial instruments
A derivative is a financial instrument or other contract with
i) The objective of the business model is achieved
all three of the following characteristics:
both by collecting contractual cash flows and
selling the financial assets, and − Its value changes in response to the change in a specified
interest rate, financial instrument price, commodity price,
ii) The asset’s contractual cash flows represent SPPI.
foreign exchange rate, index of prices or rates, credit
Financial assets included within the above category rating or credit index, or other variable, provided that, in
are measured initially as well as at each reporting the case of a non-financial variable, it is not specific to a
date at fair value. Fair value movements are party to the contract (i.e., the ‘underlying’).
recognised in the other comprehensive income
− It requires no initial net investment or an initial net
(OCI). However, the Company recognises interest
investment that is smaller than what would be required
income, impairment losses or reversals and foreign
for other types of contracts expected to have a similar
exchange gain or loss in the profit and loss. On
response to changes in market factors.
derecognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from − It is settled at a future date.
the equity to profit and loss. Interest earned whilst
The Company holds derivative to mitigate the risk of changes
holding FVTOCI debt instrument is reported as
in exchange rates on foreign currency exposures as well as
interest income using the EIR method.
interest fluctuations. The counterparty for such contracts are
generally banks.
Financial Asset at FVTPL
Financial asset which does not meet the criteria for Derivatives are recorded at fair value and carried as assets
categorisation as at amortised cost or as FVTOCI, is when their fair value is positive and as liabilities when their
classified as at FVTPL. Financial assets classified under fair value is negative. Changes in the fair value of derivatives
FVTPL category are measured at fair value with all are included in net gain on fair value changes unless hedge
changes recognised in the statement of profit and loss. accounting is applied.
b) Financial Liabilities 2.18 Hedge accounting

Financial liabilities are classified and measured The Company makes use of derivative instruments to manage
at amortised cost or FVTPL. A financial liability is exposures to interest rate and foreign currency. In order
classified as at FVTPL if it is classified as held-for to manage particular risks, the Company applies hedge
trading or it is designated as on initial recognition to be accounting for transactions that meet specified criteria.


At the inception of a hedge relationship, the Company formally 2.20 Derecognition of financial assets and liabilities
designates and documents the hedge relationship to which
the Company wishes to apply hedge accounting and the risk a) Financial Assets
management objective and strategy for undertaking the hedge. A financial asset (or, where applicable, a part of a
The documentation includes the Company’s risk management financial asset or part of a group of similar financial
objective and strategy for undertaking hedge, the hedging/ assets) is derecognised when the rights to receive
economic relationship, the hedged item or transaction, the cash flows from the financial asset have expired. The
nature of the risk being hedged, hedge ratio and how the Company also derecognised the financial asset if it has
entity will assess the effectiveness of changes in the hedging transferred the financial asset and the transfer qualifies
instrument’s fair value in offsetting the exposure to changes for derecognition.
in the hedged item’s fair value or cash flows attributable to the
The Company has transferred the financial asset if and
hedged risk. Such hedges are expected to be highly effective in
only if, either:
achieving offsetting changes in fair value or cash flows and are
assessed on an ongoing basis to determine that they actually − It has transferred its contractual rights to receive
have been highly effective throughout the financial reporting cash flows from the financial asset
periods for which they were designated.
Or
A cash flow hedge is a hedge of the exposure to variability in
− It retains the rights to the cash flows, but has
cash flows that is attributable to a particular risk associated
assumed an obligation to pay the received cash flows
with a recognised asset or liability (such as all or some future
in full or in part without material delay to a third party
interest payments on variable rate debt) or a highly probable
under a ‘pass-through’ arrangement
forecast transaction and could affect profit or loss.
Pass-through arrangements are transactions whereby
For designated and qualifying cash flow hedges, the effective
the Company retains the contractual rights to receive
portion of the cumulative gain or loss on the hedging
the cash flows of a financial asset (the ‘original asset’),
instrument is initially recognised directly in OCI within equity
but assumes a contractual obligation to pay those cash
(cash flow hedge reserve). The ineffective portion of the gain
flows to one or more entities (the ‘eventual recipients’),
or loss on the hedging instrument is recognised immediately
when all of the following three conditions are met:
in net gain/loss on fair value changes in the profit and
loss statement. − The Company has no obligation to pay amounts to the
eventual recipients unless it has collected equivalent
When the hedged cash flow affects the statement of profit amounts from the original asset
and loss, the effective portion of the gain or loss on the
hedging instrument is recorded in the corresponding income − The Company cannot sell or pledge the original asset
or expense line of the statement of profit and loss. When the other than as security to the eventual recipients.
forecast transaction subsequently results in the recognition − The Company has to remit any cash flows it
of a non-financial asset or a non-financial liability, the gains collects on behalf of the eventual recipients without
and losses previously recognised in OCI are reversed and material delay.
included in the initial cost of the asset or liability.
In addition, the Company is not entitled to reinvest such
When a hedging instrument expires, is sold, terminated, cash flows, except for investments in cash or cash
exercised, or when a hedge no longer meets the criteria equivalents including interest earned, during the period
for hedge accounting, any cumulative gain or loss that has between the collection date and the date of required
been recognised in OCI at that time remains in OCI and remittance to the eventual recipients.
is recognised when the hedged forecast transaction is
A transfer only qualifies for derecognition if either:
ultimately recognised in the statement of profit and loss.
When a forecast transaction is no longer expected to occur, − The Company has transferred substantially all the
the cumulative gain or loss that was reported in OCI is risks and rewards of the asset
immediately transferred to the statement of profit and loss. Or
2.19 Reclassification of financial assets and liabilities − The Company has neither transferred nor retained
substantially all the risks and rewards of the asset,
The Company doesn’t reclassify its financial assets
but has transferred control of the asset.
subsequent to their initial recognition, apart from the
exceptional circumstances in which the Company acquires, The Company considers control to be transferred if and
disposes of, or terminates a business line. Further, whenever only if, the transferee has the practical ability to sell
there is a change in the business model the underlying the asset in its entirety to an unrelated third party and
affected financial asset are reclassified. Financial liabilities is able to exercise that ability unilaterally and without
has not been reclassified. imposing additional restrictions on the transfer.

When the Company has neither transferred nor The ECL allowance is based on the credit losses expected to
retained substantially all the risks and rewards and arise over the life of the asset (the lifetime expected credit
has retained control of the asset, the asset continues loss or LTECL), unless there has been no significant increase
to be recognised only to the extent of the Company’s in credit risk (SICR) since origination, in which case, the
continuing involvement, in which case, the Company also allowance is based on the 12 months’ expected credit loss
recognises an associated liability. The transferred asset (12mECL).
and the associated liability are measured on a basis that
reflects the rights and obligations that the Company Default
has retained. Classification of default is based on the regulatory definition
of Non-Performing Assets (NPA). Our regulator i.e. Reserve
b) Financial Liabilities Bank of India defines NPA in Paragraph 8.3.5 in its Master
A financial liability is derecognised when the obligation Directions – Non Banking Financial Company – Housing
under the liability is discharged, cancelled or expires. Finance (Reserve Bank) Directions, 2021 as exposures where
Where an existing financial liability is replaced interest or principal is in arrears for a period of more than
by another from the same lender on substantially ninety days.
different terms or the terms of an existing liability are
The Company will maintain the definition of default in line
substantially modified, such an exchange or modification
with any amendments made by the regulator from time to
is treated as a derecognition of the original liability and
time through its circulars and through its Master Circular
the recognition of a new liability. The difference between
published from time to time.
the carrying value of the original financial liability and
the consideration paid is recognised in the statement of
Staging
profit and loss.
The Company while assessing whether there has been a
2.21 Measurement of Expected Credit Loss (ECL) SICR of an exposure since origination, it compares the risk
of a default occurring over the expected life of the financial
The Company records allowance for expected credit losses
instrument as at the reporting date with the risk of default as
for all loans, other debt financial assets not held at FVTPL
at the date of initial recognition. The Company classifies the
together with the financial guarantee contracts. Equity
accounts into three stages.
instruments are not subject to impairment under Ind AS 109.
The mechanics and key inputs for classifying the stages and computing the ECL are defined below:
Stage Definition Details Classification
Stage 1 Low credit risk Financial instruments are treated as Stage 1 which are not credit impaired and for which
Days Past Due (DPD) 0-30 the credit risk has not increased significantly since initial recognition. The Company
calculates the 12 month ECL allowance.
Stage 2 DPD 31-90 Financial instruments having SICR since initial recognition (origination of facilities)
Qualitative indicators of SICR are classified under (if not impaired) Stage 2. The Company calculates the lifetime ECL
allowance.
Stage 3 90+/ NPA Remaining financial instruments which are credit impaired are treated as Stage 3.
The Company uses regulatory definition as a consistent measure for default across all
product classes.
The Company records an allowance for the LTECLs.
Key components for computation of Expected Credit Loss are: − Loss Given Default (LGD)
− Probability of Default (PD) he Loss given default (LGD) is an estimate of the loss arising
T
robability of Default (PD) is one of the three risk
P in the case where a default occurs at a given time. It is based
components needed to estimate ECL under Ind AS 109. PD on the expected cash flows, including from the realisation of
is defined as the probability that a borrower will be unable any collateral.
to meet their debt obligations over a stipulated time. The PD − Exposure at default (EAD)
estimate incorporates information relevant for assessing the
borrower’s ability and willingness to repay its debts, as well Exposure at default (EAD) is an estimate of the exposure at a
as information about the economic environment in which the future default date, taking into account expected changes in
borrower operates. the exposure after the reporting date, including repayments of
principal and future interests.
The Company uses 12-month PD for stage 1 assets and
lifetime PD for stage 2 and Stage 3 assets.


The Company has adopted the following methodology for ECL computation:
Particulars PD LGD
Retail Loans Multinomial logistic regression Workout Method
Corporate Loans Pluto-Tasche Asset coverage based / Expected Collateral Realisation (ECR)
Broadly, the Company has grouped the portfolio into retail and of an account in last 12 months (basis external ratings based
corporate category. ECL computation is based on collective statistical technique of Pluto-Tasche). PDs are further
approach except for a few large exposure of corporate stressed basis operational variables like construction
finance portfolio where loss estimation is based on ECR. variance, sales velocity, resolution team feedback etc. For
Further, given the characteristics and inherent risks of the life time PDs computation, the Company has used survival
various sub categories of the portfolio the Company has used analysis using Kaplan-Meier technique.
appropriate PD / LGD computation techniques which are
detailed below: Loss Given Default
For LGD estimates, the Company has used ECR approach and
Retail Loans have applied business logic based on security coverage ratio
of existing portfolio. Sensitivity analysis, resolution feedbacks
Probability of Default
are applied on probability weighted scenarios to compute loss
The retail portfolio is segregated into homogenous pools at given default.
the product level and occupational level.
For ECL computation, basis risk emergence curve movement, Exposure at Default
the Company has adopted statistical techniques of EAD is the sum of the outstanding principle, interest
multinomial logistic regression Observed Default Rate based outstanding and future interest receivables for the expected
on customer classification etc using behaviour and credit life of the asset, computed basis the behavioral analysis of the
variables. For life time PDs computation, the Company has Company’s historical experience.
used survival analysis using Kaplan-Meier technique.
Significant increase in credit risk (SICR)
Previous year(s) portfolio behaviour of homogenous pools
is considered for PD estimation. The Company has further The Company monitors all financial assets that are subject to
stressed the PDs for such selective group of customers impairment requirements to assess whether there has been
who are falling in early warning signal pool like customers a significant increase in credit risk since initial recognition.
who have had experienced delinquency with other financial If there has been a significant increase in credit risk in the
institutions but remained good with us, customers showing assets falling in stage 1 then the Company measures the
very early signs of stress in emerging delinquencies. loss allowance over the lifetime of the loan instead of 12
month ECL.
Loss Given Default
Retail Loans:
The LGD for the retail portfolio is modelled through a workout
approach. Historical NPA data of last few years has been Given the prevalent environment, the qualitative criteria for
used to arrive at LGD. Loss estimation have been done triggering SICR in retail exposure is:
either basis distressed value or actual/expected recoveries, (i) Those stage 1 loan assets where underlying property is
depending on resolution strategies already materialised or in under construction and expected construction progress
the process of materialisation. Multiple factors are considered is likely to remain slow based on historical data /
for determining the LGD including time taken for resolutions, market feedback.
geographies, collection feedback, underlying security etc.
(ii) Those stage 1 assets which are restructured under RBI
Exposure at Default OTR scheme of Aug 2020 and May 2021 and have shown
higher degree of risk basis their performance with us
EAD is the sum of the outstanding principle, interest
and/or with other financial institutions.
outstanding and future interest receivables for the expected
life of the asset, computed basis the behavioral analysis of the
Corporate Loans:
Company’s historical experience.
The Company has its own qualitative assessment criteria
Corporate Loans comprising various operational and repayment variables like
construction variance, historical delinquency rates, sales
Probability of Default velocity, asset coverage ratio, resolution team feedback etc.
PDs for the corporate portfolio are determined by using Basis the review and management overlay, the Company
external ratings as cohorts along with ever default behavior

identifies assets where likelihood of deterioration in credit or commercial collateral. The collaterals are assessed at
quality is high and for such assets SICR has been triggered. the time of origination and are being re-assessed as and
when required.
Incorporation of forward looking information
The illustrative factors considered while evaluation of
Ind AS 109 requires entities to model their ECL and apply collateral are liquidity, enforceability, marketability, ease and
forward looking macro-economic scenarios taking into efficiency in custody and settlement. The Company complies
consideration possibility of favorable, neutral, adverse with local by-laws and relevant jurisdictions to ensure
and stressed economic conditions. Multiple scenarios are that the collaterals are free from all encumbrances. The
required to be applied to the ECL and a probability weighted assessment of collateral is undertaken by empanelled team of
ECL is then computed. In order to compute probability independent and qualified technical / legal agencies.
weighted ECL considering the impact of COVID-19 several
macro-economic variables such as GDP at constant The Company has specified the maximum loan-to-value ratio
prices, Housing Price Index (HPI) inflation, Gross national for various types of asset to be accepted as collateral. Such
savings, unemployment rate etc. were considered from the ratios commensurate with the relative risk of the assets as
International Monetary Fund (IMF), NHB and RBI websites and prescribed by NHB and provides an adequate buffer against
the Company’s historical data were analysed. potential losses.
A model was then built, and forecasts were generated, and On case-to-case basis, the Company may ask for additional
scenario creation carried out to finally arrive at the final security, which may in the form of guarantee or financial
macro-economic overlay. Identification of relevant macro assets or any other real estate assets.
economic variables was done combining statistical analysis The Company may take actions as provided in the SARFAESI
(correlation) and business intuition (sign of correlation). The Act which enables it to enforce the underlying collateral of
selected model incorporates the variables like Inflation, end stage 3 assets without court intervention.
of period consumer prices quarter on quarter change, general
government revenue etc. 2.25 Dividend
The macro-economic variables (MEVs) of the final model The Company recognises a liability to make cash distributions
were used to generate multiple simulations for forecasting to equity holders when the distribution is authorised and the
under different probabilistic scenarios, i.e., favorable, distribution is no longer at the discretion of the Company.
neutral, adverse and stress scenarios. Under each scenario, Final dividends on shares are recorded as a liability on the
based on the independent variable forecasts, the forecasted date of approval by the Shareholders and interim dividends
default rates are obtained using the final model relationship are recorded as a liability on the date of declaration by the
between the default rates and macro-economic variables. Company’s Board of Directors.
The scenarios are identified based on the probability of
occurrence, i.e. expected probability of the future economic 2.26 Unclaimed Deposits
state. An anchor variable (GDP) analysis was performed Deposits, which has become overdue but have not been
in order to select a particular scenario for future quarters. presented for payment or renewal, are transferred to
Accordingly, the probability weighted ECL is computed using unclaimed deposits. Deposit remaining unclaimed for more
the likelihood as weights. than seven years have been transferred to the Investor
Education and Protection Fund (IEPF). Interest for the period
2.22 ECL on financial guarantee contracts from last maturity date to the date of renewal of unclaimed
ECL on financial guarantee contracts has been computed deposits is accounted for during the year of its renewal.
basis the methodologies defined under note 2.21.
2.27 Securities Premium
2.23 Write offs Securities premium is credited:
The Company undertakes write off on a loan, in full or in
− when shares are issued at premium;
part, when the amount is construed as irrecoverable after
enforcement of available means of resolution. The authority − with the fair value of the stock options which are treated
of write off is vested with committee of senior officials of as expense (if any), in respect of shares allotted pursuant
the Company. In case the company writes off an asset, the to Employee Stock Options Scheme
recoveries resulting from the write off activity may result in
Securities premium can be utilised only for limited purposes
impairment gains.
such as issuance of bonus shares or adjustment of share
issue expenses, net of tax, as permissible under section
2.24 Collateral
52(2) of the Companies Act, 2013, to the extent of balance
The Company is in business of secured lending and all available and thereafter, the balance portion is charged to the
loans are adequately covered by either residential collateral statement of profit and loss, as incurred.


2.28 Assets held for sale decision maker (CODM). CODM is responsible for allocating
The Company repossess properties or other assets to settle the resources, assess the financial performance and position
outstanding recoverable and the surplus (if any) post auction of the Company and makes strategic decision. Company’s
is refunded to the obligors. These assets acquired by the main business is to provide loans against/for purchase,
company under SARFAESI Act, 2002 has been classified construction, repairs & renovations of houses/ flats/
as assets held for sale, as their carrying amounts will be commercial properties etc. All other activities of the Company
recovered principally through a sale of asset. In accordance revolve around the main business. As such, there are no
with Ind AS 105, the company is committed to sell these separate reportable segment, as per the Operating Segments
assets and they are measured at the lower of their carrying (Ind AS 108), notified by the Companies (Accounting
amount and the fair value less costs of disposal. Standard) Rules, 2015 as amended from time to time.
2.29 Segment reporting 2.30 Investment in subsidiaries

Operating segments are reported in a manner consistent Investments in subsidiaries are measured at cost as per Ind
with the internal reporting provided to the chief operating AS 27 – Separate Financial Statements.

NOTE 3: CASH AND CASH EQUIVALENTS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022

Balance with banks in current accounts 558.72 512.19
Bank deposit with maturity of less than 3 months (Refer Note 3.1) 3,117.61 4,552.31
Total 3,677.82 5,065.62
Note 3.1: Short-term deposits earn interest at the respective short-term deposit rates.
NOTE 4: BANK BALANCE OTHER THAN CASH AND CASH EQUIVALENTS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Bank Deposits (More than 3 months & upto 12 months) (Refer Note 4.1) 118.31 150.40
Earmarked balances with bank (Refer Note 4.2) 0.07 0.07
Total 118.38 150.47
Note 4.1: Bank deposit amounting to H 25.00 crore has been pledged against the bank gaurantee dated April 6, 2023 issued for
Rights Issue of the Company.
Note 4.2: Earmarked balances with bank represents unclaimed dividend on equity shares.
NOTE 5: RECEIVABLES
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Trade receivables
Receviable considered good- Secured - -
Receviable considered good- Unsecured 12.86 42.76
Receivables from related parties - Unsecured (Refer Note 5.2) - -
Receivables which have significant increase in credit risk - -
Receivables – credit impaired 0.01 0.05
12.87 42.81
Other receivables
Receviable considered good- Unsecured (Refer Note 5.2) 0.01 0.04
0.01 0.04
Less : Provision for impairment 0.01 0.05
Total 12.87 42.80


Note 5.1: Receivables ageing

(J in crore)
Not As at March 31, 2023
Particulars
due
considered good
Undisputed trade and other receivables – - - - - 0.01 0.00 0.01
credit impaired
Disputed trade and other receivables– - - - - - - -
considered good
impaired
(J in crore)
Particulars Not due
considered good
Undisputed trade and other receivables – - - - 0.02 0.03 - 0.05
credit impaired
Disputed trade and other receivables– - - - - - - -
considered good
impaired
Note 5.2: No trade or other receivable are due from directors or other officers of the company either severally or jointly with
any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director
is a partner, director or member.

NOTE 6: LOANS (AT AMORTISED COST)

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Term Loans 59,272.63 57,894.88

Total Gross 59,272.63 57,894.88
Total Net 57,839.79 55,335.94
Secured by tangible assets 59,272.63 57,894.88
Total Gross 59,272.63 57,894.88
Total Net 57,839.79 55,335.94
Loans in India
Public Sector - -
Others 59,272.63 57,894.88
Total Gross 59,272.63 57,894.88
Total Net (a) 57,839.79 55,335.94
Loans outside India - -
Less: Impairment loss allowance - -
Total Net (b) - -
Total Net (a+b) 57,839.79 55,335.94
Note 6.1: Detail of loans & advances sanctioned to Directors/KMP/Senior officers/Related Parties:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Directors and their relatives - -

Entities associated with directors and their relatives - -
KMP/Senior Officers and their relatives 2.65 -
2.65 -
Note 6.2: Loans - Staging analysis#
Analysis of change in gross carrying amount of loans is as follows:

(J in crore)
Particulars
Opening gross carrying amount 51,209.35 1,980.63 4,704.90 57,894.88 56,359.37 3,831.97 2,997.49 63,188.83
Increase in EAD - new asset 14,890.80 14.65 133.04 15,038.49 11,190.22 33.63 125.90 11,349.75
originated or purchased / further
increase in existing asset (net)
Asset paid in part or full (excluding (10,603.84) (279.49) (636.41) (11,519.74) (15,731.77) (252.18) (100.37) (16,084.32)
write off) (net)
Stressed loans transferred to ARC - - (271.70) (271.70) - - - -
Asset derecognised/co-lending (179.79) - - (179.79) - - - -
Asset written off (28.17) (68.36) (1,592.98) (1,689.51) (13.27) (7.71) (538.40) (559.38)
Transfer to stage 1 883.37 (643.96) (239.41) - 1,638.57 (1,480.15) (158.42) -
Transfer to stage 2 (993.36) 1,141.20 (147.84) - (1,143.84) 1,169.86 (26.02) -
Transfer to stage 3 (178.90) (141.57) 320.47 - (1,089.93) (1,314.79) 2,404.72 -
Closing gross carrying amount 54,999.46 2,003.10 2,270.07 59,272.63 51,209.35 1,980.63 4,704.90 57,894.88


(J in crore)
Particulars
Retail Loans 52,043.77 2,003.10 1,424.15 55,471.02 46,593.50 1,959.25 1,966.81 50,519.56
Total 52,043.77 2,003.10 1,424.15 55,471.02 46,593.50 1,959.25 1,966.81 50,519.56
% of total 93.82% 3.61% 2.57% 100.00% 92.23% 3.88% 3.89% 100.00%

(J in crore)
Particulars
Corporate Loans 2,955.69 - 845.92 3,801.61 4,615.85 21.38 2,738.09 7,375.32
Total 2,955.69 - 845.92 3,801.61 4,615.85 21.38 2,738.09 7,375.32
% of total 77.75% 0.00% 22.25% 100.00% 62.58% 0.29% 37.13% 100.00%

Note 6.3: Expected Credit Loss (ECL) - Staging analysis#

(J in crore)
Particulars
Retail Loans 244.87 254.63 466.66 966.16 283.21 197.35 527.83 1,008.39
Total 244.87 254.63 466.66 966.16 283.21 197.35 527.83 1,008.39

a) The loan assets in stage 2 were 3.61% as on March 31, 2023 as against 3.88% as on March 31,2022. The Company has
applied qualitative SICR criteria owing to which stage 1 assets of H 584.00 Crore has moved to stage 2 assets. Pre SICR,
b) ECL % POS has increased by 2.64% as on March 31, 2023 in stage 2.
c) Overall ECL % POS have decreased by 25 bps on accounts improvement in portfolio quality.


a) The loan assets in stage 2 were 3.88% as on March 31, 2022 as against 5.17% as on March 31, 2021. The Company has
applied qualitative SICR criteria owing to which stage 1 assets of H 822.63 Crore has moved to stage 2 assets. Pre SICR,
b) ECL % POS has decreased by 1.29% as on March 31, 2022 in stage 2 due to transition- of stage 2 accounts to stage 3 (as
an impact of RBI Circular No. RBI/2021-2022/125 DOR.STR.REC.68/21.04.048/2021-22)
c) Overall ECL % POS have increased by 24 bps on accounts of conservatism approach adopted by the Company.
(J in crore)
Particulars
Corporate Loans 279.95 - 186.73 466.68 300.10 3.07 1,247.38 1,550.55
Total 279.95 - 186.73 466.68 300.10 3.07 1,247.38 1,550.55

a) Stage 1 ECL % of POS increased from 6.50% to 9.47%.
shift of stage 2 asset to stage 1 and stage 3 and decreasing corporate portfolio.
c) The Company’s stage 3 asset ratio has decreased from 37.13% as on March 31, 2022 to 22.25% as on March 31, 2023
owing to this ECL has also decreased.

a) Stage 1 ECL % of POS increased from 4.31% to 6.50%. This is due to restructuring cases carrying higher provisions.
shift of stage 2 asset to stage 3.
c) The Company’s stage 3 asset ratio has increased from 13.46% as on March 31, 2021 to 37.13% as on March 31, 2022 owing
to this ECL has also increased.
^ The restructuring was done for Stage 1 accounts, total restructured assets were H 967 crore (previous year H 1,647 crore),against which
provision of H 102 crore (Previous year H 204 crore) is held.
# Refer Note 2.21, 2.22, 2.23 and 47.1.
Note 6.4: Loans due from borrowers are secured wholly or partly by any one or all of the below as applicable:
Tangible securities
i) Equitable / Simple / English Mortgage of immovable property;
ii) Mortgage of Development Rights / FSI / any other benefit flowing from the immovable property;
iii) Hypothecation of rent receivables, cash flow of the project, debt service reserve account, fixed deposit, current and
escrow accounts;
Intangible securities
i) Demand Promissory Note;
ii) Post dated cheques towards the repayment of the debt;
iii) Personal / Corporate Guarantees;
iv) Undertaking to create a security;
v) Letter of Continuity.


NOTE 7: INVESTMENTS
(J in crore)

loss
Mutual funds - 8.52 - 8.52
Government securities^ (Refer Note 36.31) 2,276.42 413.18 - 2,689.60
Subsidiaries
50,000 (March 31, 2022 : 50,000) equity shares of face value of - - 0.05 0.05
H 10 each of PEHEL Foundation
ACRE-122-Trust - 119.00 - 119.00
Total gross 2,276.42 998.37 0.05 3,274.84
Total gross (a+b) 2,276.42 998.37 0.05 3,274.84
Less: Allowance for impairment loss (c) (78.55) - (78.55)
Total net (a+b-c) 2,276.42 919.82 0.05 3,196.29
(J in crore)

loss
Mutual funds - 110.95 - 110.95
Government securities^ (Refer Note 36.31) 2,234.18 1,044.83 - 3,279.01
Subsidiaries
50,000 (March 31, 2021 : 50,000) equity shares of face value of - - 0.05 0.05
H 10 each of PEHEL Foundation
Total gross 2,234.18 1,248.47 0.05 3,482.70
Total gross (a+b) 2,234.18 1,248.47 0.05 3,482.70
Less: Allowance for impairment loss (c) - - - -
Total net (a+b-c) 2,234.18 1,248.47 0.05 3,482.70
Ownership interest
Principal place of
Name of Subsidiaries As at As at
business/operations
March 31, 2023 March 31, 2022
PEHEL Foundation India 100.00% 100.00%

*Others include investment in subsidiaries which have been carried at cost.
Êxpected credit loss provision has not been recognised on investments made in government securities.

NOTE 8: OTHER FINANCIAL ASSETS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Receivables considered good -Unsecured

Receivables on assignment and co-lending of loans (Refer Note 8.1, 8.2 and 8.3) 728.37 647.47
Security deposits 16.79 16.95
Other Receivables 11.34 11.15
Security deposits - credit impaired 0.54 0.11
Total gross (a) 757.04 675.68
Less: Impairment loss allowance (b) 2.40 1.77
Total net (a-b) 754.64 673.91
Note 8.1: During the year ended March 31 2023, the Company has sold some loans and advances measured at amortised cost
under co-lending deals through assignment mode, as a source of finance. As per the terms of deal, the de-recognition criteria
as per IND AS 109, including transfer of substantially all the risks and rewards relating to assets being transferred to the buyer
is met and the assets have been derecognised.
The table below summarises the carrying amount of the derecognised financial assets:
(J in crore)
As at As at
Loans and advances measured at amortised cost
March 31, 2023 March 31, 2022
Carrying amount of derecognised financial assets 7,344.70 9,088.02

Since the Company transferred the above financial asset in a transfer that qualified for derecognition in its entirety therefore
the whole of the interest spread and net servicing fees (over the expected life of the assets) is recognised at present value
on the date of derecognition as interest-only strip / net servicing fees receivable (“Receivables on assignment of loan”) and
correspondingly recognised as profit on derecognition of financial assets.
Note 8.2: Includes receivable from related party H 0.44 crore (previous year H 0.61 crore.)
Note 8.3: Disclosure pursuant to RBI Notification dated September 24, 2021 on “Transfer of Loan Exposures” are given below:
(a) The Company has not acquired any stressed loans or loans not in default during the year ended March 31, 2023 and March
31, 2022.
(b) Details of loans not in default transferred:
(J in crore)
Assignment through colending
Particulars
Total amount of loans transferred through colending 179.79 -
Weighted average residual maturity (in months) 220 -
Weighted average holding period (in months) 7 -
Retention of beneficial economic interest 20% -
Coverage of tangible security coverage 100% -
Rating-wise distribution of rated loans unrated -
(c) Details of stressed loans transferred:

(J in crore)
To Asset Reconstruction Companies (ARC)
Particulars - NPA- Retail


(J in crore)
To Asset Reconstruction Companies (ARC)
Particulars - NPA- Corporate*
* Security Receipts are rated as IVR RR2.
NOTE 9: CURRENT TAX (NET)

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Net current tax asset / (liability) at the beginning (a) 47.30 (62.93)
Current tax expense (b) 87.57 296.90
Current tax paid (c) 313.31 359.72
Current tax refund (d) 8.97 -
Tax related to earlier years (e) 0.04 (47.41)
Net current tax asset / (liability) at the end (a-b+c-d-e) 264.03 47.30
NOTE 10: DEFERRED TAX ASSETS (NET)

(J in crore)
Other
Deferred Tax Deferred Tax (Charged)/ credit
Particulars comprehensive
Asset Liabilities during the year
income
of Other Intangible assets
Provision for employee benefits 4.46 - 0.10 -
Interest spread on assigned loans - 174.85 (21.24) -
Others temporary differences 3.00 17.92 1.18 -
Total 418.88 273.21 (227.13) (26.09)

(J in crore)
Other
Deferred Tax (Charged)/ credit
Particulars Deferred Tax Asset comprehensive
Liabilities during the year
income
of Other Intangible assets
Provision for employee benefits 4.36 - (0.16) -
Interest spread on assigned loans - 153.61 58.42 -
Others temporary differences 3.05 19.14 (43.13) -
Total 636.24 237.34 1.67 (32.39)

NOTE 11: INVESTMENT PROPERTY
294
(J in crore)

Buildings 0.58 - - 0.58 0.05 0.01 - 0.06 0.52 0.53
Total 0.58 - - 0.58 0.05 0.01 - 0.06 0.52 0.53
(J in crore)


Buildings* 0.58 - - 0.58 0.04 0.01 - 0.05 0.53 0.54
Total 0.58 - - 0.58 0.04 0.01 - 0.05 0.53 0.54
*Assets pledged and hypothecated against borrowings.
Note 11.1: The Company has leased out its investments properties and same has been classified as operating leases on account that there was no transfer of substantial risk
and rewards incidental to the ownership of the assets. Recognition of income and related expenses in profit or loss for investment properties are tabulated below:
(J in crore)
Rental Income 0.12 0.08

Profit from investment properties before depreciation 0.12 0.08
Depreciation (0.01) (0.01)
Profit from investment properties 0.11 0.07
Note 11.2: Investment properties are leased to tenants under long term operating leases with rentals receivable on monthly basis. Minimum undiscounted lease payments
receivable under non-cancellable leases of investment properties after the reporting period:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Within one year 0.04 0.11

Later than one year but not later than five year 0.04 0.08
Later than five years - -
Note 11.3: The fair value of the investment property has been determined on the basis of valuation carried out at the reporting date by a registered valuer as defined
under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair value measurement for investment property has been categorised as Level 2 based on
the valuation techniques used and inputs applied. The main inputs considered by the valuer are government rates, property location, market research, contracted rentals,
discount rates and comparable values, as appropriate. The best estimate of fair value is current prices in an active market for similar properties. Fair value are as follows:
Reconciliation of fair value

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 5.55 5.55
Addition during the year - -
Deletion during the year - -

Fair value difference 0.09 -
Closing balance 5.64 5.55
NOTE 12: PROPERTY PLANT AND EQUIPMENT

(J in crore)
Particulars Disposal / Disposal /

Corporate Overview
Buildings 37.72 - - 37.72 2.81 1.20 - 4.01 33.71 34.91

Vehicles 0.10 - 0.10 - 0.05 0.01 0.06 - - 0.05
Computers 31.92 9.44 0.05 41.31 21.92 4.44 0.05 26.31 15.00 10.00
Office Equipment & Others 31.79 1.44 1.49 31.74 23.76 3.81 1.36 26.21 5.53 8.03
Leasehold Improvements 42.67 0.27 3.36 39.58 33.97 4.94 3.31 35.60 3.98 8.70
Total 163.90 11.60 6.02 169.48 92.52 16.27 5.50 103.29 66.19 71.38
(J in crore)
Statutory Reports
Disposal / Disposal /
Particulars As at Addition during As at As at As at As at As at

Buildings 37.72 - - 37.72 1.61 1.20 - 2.81 34.91 36.11
Vehicles 0.10 - - 0.10 0.04 0.01 - 0.05 0.05 0.06
Computers 24.44 7.50 0.02 31.92 19.15 2.79 0.02 21.92 10.00 5.29
Office Equipment & Others 29.93 0.65 (1.21) 31.79 18.06 5.38 (0.32) 23.76 8.03 11.87
Leasehold Improvements 42.50 - (0.17) 42.67 26.98 6.97 (0.02) 33.97 8.70 15.52

Total 156.81 8.25 1.16 163.90 75.06 18.30 0.84 92.52 71.38 81.75
(i) Buildings pledged and hypothecated against borrowings.
295
(ii) There were no revaluation carried out by the Company during the year reported above.
NOTE 12: PROPERTY PLANT AND EQUIPMENT (Contd.)
296
Right of use
(J in crore)

Building 141.12 34.71 5.96 169.87 80.65 27.26 3.63 104.28 65.59 60.47
Total 141.12 34.71 5.96 169.87 80.65 27.26 3.63 104.28 65.59 60.47

(J in crore)

Building 132.26 8.87 0.01 141.12 54.17 26.49 0.01 80.65 60.47 78.09
Total 132.26 8.87 0.01 141.12 54.17 26.49 0.01 80.65 60.47 78.09
Note 12.1: Capital Work-in-Progress
(a) Capital Work-in-Progress ageing
(J in crore)
Projects in progress 0.08 - - - 0.08
(J in crore)

Projects in progress - - - - -
(b) The Company does not have any material project which is overdue or has exceeded its cost compared to its original plan.
Note 12.2: Intangible assets under development
(a) Intangible assets under development ageing
(J in crore)
(J in crore)
(b) For Intangible assets under development, where completion is overdue or has exceeded its cost compared to its original plan
(J in crore)
Corporate Overview

Project 1 (Software) - - - - -
(J in crore)
Statutory Reports
Project 1 (Software)-Completion overdue - 2.18 - - 2.18


297
NOTE 13: OTHER INTANGIBLE ASSETS
298
(J in crore)

Software 57.81 3.89 - 61.70 39.79 7.90 - 47.69 14.01 18.02
Total 57.81 3.89 - 61.70 39.79 7.90 - 47.69 14.01 18.02
(J in crore)


Software 52.27 5.72 0.18 57.81 31.38 8.59 0.18 39.79 18.02 20.89
Total 52.27 5.72 0.18 57.81 31.38 8.59 0.18 39.79 18.02 20.89


NOTE 14: OTHER NON-FINANCIAL ASSETS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Unsecured considered good
Prepaid expenses 12.00 7.45
GST input credit 31.54 16.31
Others 11.16 3.19
Total 54.70 26.95
NOTE 15: DERIVATIVE FINANCIAL INSTRUMENTS*

(J in crore)
Particulars Notional Fair value Fair value Notional Fair value Fair value
amounts assets liabilities amounts assets liabilities
Currency derivatives:
Spot and forwards 734.17 0.73 38.67 729.17 0.01 50.08
Currency swaps 5,508.54 657.29 - 6,034.25 332.87 -
(i) 6,242.71 658.02 38.67 6,763.42 332.88 50.08
Interest rate derivatives:
Forward rate agreements and interest rate 3,823.08 63.02 - 3,525.03 - 40.55
swaps
(ii) 3,823.08 63.02 - 3,525.03 - 40.55
Margin money received from/(paid to) - - 22.33 - - -
counter party bank
(iii) - - 22.33 - - -
(i)+(ii)+(iii)
Included in above are derivatives held for
hedging and risk management purposes as
follows:
Cash flow hedging:
Currency derivatives 6,242.71 658.02 61.00 6,763.42 332.88 50.08
Interest rate derivatives 3,823.08 63.02 - 3,525.03 - 40.55
* Refer Note 18.3, 43 and 47.2.
NOTE 16: TRADE PAYABLES

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total outstanding dues of creditors other than micro enterprises and small enterprises 28.51 16.29
Due to related parties - -
Total 30.25 16.29

Note 16.1: Trade Payables ageing

(J in crore)
Particulars
More than
Unbilled Less than 1 year 1-2 years 2-3 years Total
3 years
(i) Micro, Small, and Medium 1.69 0.05 - - - 1.74
Enterprises
(ii) Others 28.08 0.43 - 0.00 - 28.51
(iii) Disputed dues – Micro, Small, - - - - - -
(J in crore)
Particulars As at March 31, 2022
Unbilled Less than 1 year 1-2 years 2-3 years More than 3 years Total
(i) Micro, Small, and Medium - - - - - -
Enterprises
(ii) Others 16.04 0.12 0.05 0.08 - 16.29
(iii) Disputed dues – Micro, Small, - - - - - -
Note 16.2: The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium
Enterprises Development Act,2006 (MSMED Act) has been determined to the extent such parties have been identified on the
basis of Information available with the Company. The amount of principal and interest outstanding during the year is as follows:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
1. Principal amount due and remaining unpaid 0.05 -
2. Interest due on (1) above and the unpaid interest - -
3. Interest paid on all delayed payment under the MSMED Act 0.00 -
4. Payment made beyond the appointed day during the year 0.10 0.05
5. Interest due and payable for the period of delay other than (3) above - -
6. Interest accrued and remaining unpaid 0.00 0.00
7. Amount of further interest remaining due and payable in succeeding years - -
Total 0.15 0.05


NOTE 17: DEBT SECURITIES

(J in crore)
amortised through Total amortised through profit Total
through cost or loss
through profit
cost profit or loss or loss
profit or loss
Secured
Redeemable non 3,994.09 - - 3,994.09 6,201.97 - - 6,201.97
convertible debentures
Total 3,994.09 - - 3,994.09 6,201.97 - - 6,201.97
Debt securities in India 3,994.09 - - 3,994.09 6,201.97 - - 6,201.97
Debt securities outside - - - - - - - -
India
Total 3,994.09 - - 3,994.09 6,201.97 - - 6,201.97
Redeemable non-convertible debentures are secured by hypothecation of specific book debts to the extent of 1.10 to 1.25
times of outstanding amount.

Maturities
Rate of interest
6.01% - 7.00% - 455.00 - - - 455.00 - -
7.01% - 8.00% - - - - 1,275.00 - - -
8.01% - 9.00% 600.00 650.00 1,000.00 1,000.00 555.00 600.00 1,000.00 1,500.00
9.01% - 10.00% 300.00 - - - 530.00 300.00 - -
900.00 1,105.00 1,000.00 1,000.00 2,360.00 1,355.00 1,000.00 1,500.00
Note 17.2: The rate of interest and amount of repayment appearing in note 17.1(b) are as per the term of the debt instruments
(i.e. excluding impact of effective interest rate). Further, refer note 45.1, 45.2 and 45.3 for compliance in relation to the
utilisation of the borrowed fund and submission of underlying returns/statements.

NOTE 18: BORROWINGS (OTHER THAN DEBT SECURITIES)

(J in crore)
amortised through Total amortised through Total
through cost profit or loss
through
cost profit or loss profit or loss
profit or loss
Secured
Term loans
National housing bank 3,046.20 - - 3,046.20 4,665.21 - - 4,665.21
Banks 18,029.00 - - 18,029.00 13,385.84 - - 13,385.84

External commercial 3,312.83 - - 3,312.83 3,988.89 - - 3,988.89
borrowing
Bank overdraft 49.99 - - 49.99 50.01 - - 50.01
Loans from related party 4,636.68 - - 4,636.68 4,325.89 - - 4,325.89
Unsecured
Term loans
Banks 2,100.00 - - 2,100.00 1,300.00 - - 1,300.00
Total 31,174.70 - - 31,174.70 27,715.84 - - 27,715.84
Borrowings in India 25,683.12 - - 25,683.12 21,718.06 - - 21,718.06
Borrowings outside India 5,491.58 - - 5,491.58 5,997.78 - - 5,997.78
Total 31,174.70 - - 31,174.70 27,715.84 - - 27,715.84
Note 18.1: Refinance from National Housing Bank (NHB):
(i) All the present and outstanding refinancing from NHB are secured by hypothecation of specific loans/ book debts to
the extent of 1.0 to 1.20 times of outstanding amount.
(ii) During FY 23, the Company has availed H Nil and during FY 22 H 1490.00 crore was availed under “Special Refinance
Facility 2021 Assistance Facility Scheme” of NHB for short term liquidity support to provide refinance assistance in
respect of eligible individual Housing loans”.
(J in crore)
Maturities
4.00% - 6.00% 132.46 281.46 - - 504.95 353.20 130.40 -
6.01% - 8.00% 418.04 821.19 400.42 155.12 583.41 1,369.76 946.08 777.41
8.01% - 10.00% 123.78 330.08 308.48 75.17 - - - -
674.28 1,432.73 708.90 230.29 1,088.36 1,722.96 1,076.48 777.41
Note 18.2: Term loan from Banks:
i) Term loan from Punjab National Bank (related party) are secured by hypothecation by way of exclusive charge on
specific standard book debts of the Company with minimum asset cover of 1.10 times to be maintained at all times.
ii) Term loans from banks other than Punjab National Bank are secured by hypothecation of specific book debts to the
extent of 1.0 to 1.12 times of outstanding amount.


(J in crore)
Maturities
from related party:
5.10% - 5.89% - - - - 796.67 333.33 - -
5.90% - 7.00% - - - - 412.49 574.50 200.00 -
7.01% - 9.00% 1,891.30 566.63 - - - - - -
from others:
4.00% - 7.00% 500.00 - - - 6,185.61 4,009.19 1,882.30 100.00
7.01% - 9.00% 7,570.34 6,693.26 3,823.27 559.55 1,445.57 1,040.94 30.00 -
9.01% - 9.11% 166.67 666.67 166.67 - - - -
10,128.31 7,926.56 3,989.94 559.55 8,840.34 5,957.96 2,112.30 100.00
Note 18.3: External commercial borrowing:
i) The ECB borrowings are secured against eligible housing loans/book debts and are hedged through currency swaps,
interest rate swaps and forward contracts as per the applicable RBI guidelines.
ii) The derivative contracts are initially recognised at fair value on the date of the transaction and all outstanding
derivative transactions, on the date of balance sheet, are subsequently measured at fair value on that date. Where
cash flow hedge accounting is used, fair value changes of the derivative contracts are recognised through the cash
flow hedge reserve (through other comprehensive income) which is reclassified to profit and loss account as the
hedged item effects profit and loss. Premium paid / discount received in advance (if any) on the derivative contracts,
which are not intended for trading or speculation purposes, are amortised over the period of the contracts, if such
contracts relate to monetary items as at the balance sheet date.
iii) As at March 31, 2023, the Company has outstanding ECB of USD 670.00 million (equivalent to H 5,508.53 crore)
(March 31, 2022 USD 796.00 million (equivalent to H 6,034.25 crore)). The Company has undertaken cross currency
swaps and principal only swaps to hedge the foreign currency risk of the ECB principal. Whereas the Company
has entered into floating to fixed coupon only swaps and interest rate swaps along with forward contracts to
hedge the floating interest and foreign currency risk of the coupon payments respectively. All the derivative
instruments are purely for hedging the underlying ECB transactions as per applicable RBI guidelines and not for any
speculative purpose.
(J in crore)
Maturities
from related party:
USD LIBOR + 110 - 200 bps 2,178.75 - - - - 2,008.89 - -
from others:
USD LIBOR + 110 - 200 bps 1,890.98 1,438.80 - - 955.17 2,501.64 568.55 -
4,069.73 1,438.80 - - 955.17 4,510.53 568.55 -
Note 18.4: Bank overdraft:
Overdraft facilities are secured by hypothecation of specific book debts to the extent of 1.0 to 1.12 times of outstanding amount.

b) Terms of Repayment
(J in crore)
Maturities
6.50% -8.00% 49.99 - - - 50.01 - - -
Note 18.5:
The rate of interest and amount of repayment appearing in note 18.1(b), 18.2(b) and 18.3(b) are as per the term of the respective
instruments.(i.e. excluding impact of effective interest rate). Further, refer note 45.1, 45.2 and 45.3 for compliance in relation to
the utilisation of the borrowed fund and submission of underlying returns/statements.
NOTE 19: DEPOSITS

(J in crore)
Cost through Cost
profit or loss
through
profit or loss
Unsecured
Deposits
(i) From Public 15,513.28 - - 15,513.28 14,939.95 - - 14,939.95
(Refer Note 36.31)
(ii) From banks 325.84 - - 325.84 411.91 - - 411.91
(Refer Note 19.2)
(iii) From others 1,375.12 - - 1,375.12 2,253.28 - - 2,253.28
Total 17,214.24 - - 17,214.24 17,605.14 - - 17,605.14
Note 19.1: Refer note 45.1, 45.2 and 45.3 for compliance in relation to the utilisation of the borrowed fund and submission of
underlying returns/statements.
Note 19.2: Includes amount payable to related party H114.06 crore.
NOTE 20: SUBORDINATED LIABILITIES

(J in crore)
Cost through Cost
profit or loss
through
profit or loss
Unsecured
Redeemable non-convertible 1,238.35 - - 1,238.35 1,438.18 - - 1,438.18
debentures
Total 1,238.35 - - 1,238.35 1,438.18 - - 1,438.18
Subordinated liabilities in India 1,238.35 - - 1,238.35 1,438.18 - - 1,438.18
Subordinated liabilities outside - - - - - - - -
India
Total 1,238.35 - - 1,238.35 1,438.18 - - 1,438.18



Redeemable non-convertible subordinated debentures are subordinated debt to present and future senior indebtedness
of the Company and based on the balance term to maturity as at March 31, 2023, H337.70 crore (March 31, 2022 H577.50
crore) qualify as Tier II Capital under regulatory guidelines for assessing capital adequacy.
(J in crore)
Maturities
Rate of interest
8.01% - 9.00% 499.00 410.00 290.00 - - 699.00 500.00 -
9.01% - 10.00% - - - 39.70 200.00 - - 39.70
499.00 410.00 290.00 39.70 200.00 699.00 500.00 39.70
Note 20.2:
The rate of interest and amount of repayment appearing in note 20.1(b) are as per the term of the debt instruments. (i.e.
excluding impact of effective interest rate). Further, refer note 45.1, 45.2 and 45.3 for compliance in relation to the utilisation of
the borrowed fund and submission underlying returns/statements.
NOTE 21: OTHER FINANCIAL LIABILITIES

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Interest accrued but not due on deposits 3.72 38.07
Interest accrued but not due on borrowings (Refer Note 21.1) 262.46 315.69
Unpaid matured deposits and interest accrued thereon 29.94 43.84
Amount payable under assignments (Refer Note 21.2) 167.11 265.15
Book overdraft 1,117.57 1,407.22
Unpaid dividends 0.07 0.07
Lease liabilities (Refer Note 37) 74.75 70.22
Total 1,963.15 2,564.63
Note 21.1: Includes amount payable to related party H 2.23 crore (previous year H 0.49 crore).
Note 21.2: Includes amount payable to related party H 79.29 crore (previous year H 124.94 crore).
NOTE 22: PROVISIONS

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Retirement benefits 17.72 17.33

Total 17.72 17.33
NOTE 23: OTHER NON-FINANCIAL LIABILITIES

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Advance received from customers 134.75 207.07

Statutory dues Payable 75.35 70.51
Total 227.34 298.60

NOTE 24: EQUITY SHARE CAPITAL

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Authorised
50,00,00,000 equity shares of H 10 each (March 31, 2022: 50,00,00,000) 500.00 500.00
500.00 500.00
Issued, subscribed and paid-up
16,88,55,818 equity shares of H 10 each fully paid up (March 31, 2022: 16,85,98,555) 168.86 168.60
Total 168.86 168.60
Note 24.1: Reconciliation of number of shares outstanding and the amount of share capital at the beginning and end of the year:

Particulars
No. of shares J in crore No. of shares J in crore
At the beginning of the year 16,85,98,555 168.60 16,82,68,123 168.27
Add: Share allotted pursuant to exercise of stock option 2,57,263 0.26 3,30,432 0.33
Outstanding at the end of the year 16,88,55,818 168.86 16,85,98,555 168.60
Note 24.2: Detail of equity shareholding of Promoter

(J in crore)
the year*
(J in crore)
the year*
* Change during the year on account of exercise of ESOPs by employees.
Note 24.3: Details of shareholders holding more than 5% of equity shares in the Company:
(J in crore)
Particulars
No. of shares % of Holding No. of shares % of Holding
Punjab National Bank 5,49,14,840 32.52 5,49,14,840 32.57
Quality Investments Holdings 5,41,92,300 32.09 5,41,92,300 32.14
Investment Opportunities V Pte. Limited 1,66,87,956 9.88 1,66,87,956 9.90
General Atlantic Singapore FII Pte. Limited 1,65,93,240 9.83 1,65,93,240 9.84
Note 24.4: Terms / Rights attached to equity shares shares will be entitled to receive remaining assets of the
The Company has only one class of shares referred to as company, after distribution of all preferential amounts. The
equity shares having a par value of H 10/ - per share. Each distribution will be in proportion to the number of equity
holder of equity shares is entitled to one vote per share. shares held by the shareholders.
The Company declares and pays dividend in H. Dividend Note 24.5: The Company has not allotted any share pursuant
distribution is for all equity shareholders who are eligible to contracts without payment being received in cash nor it
for dividend as on record date. The dividend proposed by has issued any bonus shares or bought back any shares,
the Board of Directors is subject to the approval of the during the period of five years immediately preceding the
shareholders in the ensuing Annual General meeting. In the reporting date.
event of liquidation of the Company, the holders of equity


Note 24.6: The Company has not: structure, the Company may adjust the amount of dividend
i. Issued any securities convertible into equity / payment to shareholders, return of capital to shareholders or
preference shares. issue capital securities.
ii. Issued any shares where calls are unpaid. No changes have been made to the objectives, policies and
processes from the previous years and they are reviewed by
iii. Forfeited any shares. the Board of Director’s at regular intervals.
Note 24.7: Capital Management: Regulatory capital consists of Tier I capital, which includes
owned funds comprising share capital, share premium,
The Company maintains an actively managed capital base to
retained earnings including current year profit and free
cover risks inherent in the business and is meeting the capital
reserves less cash flow hedge reserve, deferred revenue
adequacy requirements as per the directives of the Regulator.
expenditure and intangible assets. The book value of
The adequacy of the Company capital is monitored using,
investment in shares of other non-banking financial
among other measures, the regulations issued by NHB & RBI
companies including housing finance companies and in
from time to time.
shares, debentures, bonds, outstanding loans and advances
Company has complied in full with all its externally imposed including hire purchase and lease finance made to and
capital requirements. deposits with subsidiaries and companies in the same group
exceeding, in aggregate 10% of owned funds will be reduced
The primary objectives of the Company capital management
while arriving at the Tier I capital.
policy are to ensure that it complies with externally imposed
capital requirements and maintains strong credit ratings and The other component of regulatory capital is Tier II Capital
healthy capital ratios in order to support its business and to Instruments, which includes non-convertible preference
maximise shareholder’s value. shares, revaluation reserve, general provision and loss
reserves to the extent of one and one fourth percent of risk
The Company manages its capital structure after taking into
weighted asset, hybrid capital instruments and subordinated
consideration the inherent business risk and the changes in
debts.(Refer Note 36.1)
economic conditions. In order to maintain or adjust the capital
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Debt securities 3,994.09 6,201.97
Borrowings (other than debt securities) 31,174.70 27,715.84
Deposits 17,244.18 17,648.98
Subordinated liabilities 1,238.35 1,438.18
Less: Cash and cash equivalents (3,677.82) (5,065.62)
Less: Bank balance other than cash and cash equivalents (other than earmarked balances) (118.31) (150.40)
Net debt 49,855.19 47,788.95
Total equity- Shareholder funds 11,013.86 9,871.63
Net debt to equity ratio 4.53 4.84
Note 24.8: Shares reserved for issue under ESOS

(i) Employee Stock Option Scheme and related scheme wise details are as follows:
Date of Grant April 22, 2016 August 30, 2017 February 23, 2018 July 27, 2018
Number of options granted 38,07,690 4,05,700 1,00,000 1,36,485
Exercise price per option H 338.00 H 1600.60 H 1206.35 H1333.35
- - 20% on February 23, 2023 -

Date of Grant July 27, 2018 July 27, 2018 March 19, 2019 August 19, 2020
ESOS - Restricted stock units ESOS - Restricted stock units

Particulars ESOS - 2016 Tranche V ESOS - 2016 Tranche VI
2020 Tranche I 2020 Tranche II
Date of Grant August 19, 2020 October 21, 2022 February 15, 2021 April 26, 2022
Exercise period Within 3 years from the date of respective vesting Within 1 years from the date of respective vesting
Vesting conditions Employee to remain in Employee to remain in Employee to remain in service on the date of vesting and
service on the date of service on the date of other applicable performance conditions.
vesting vesting and other applicable
Particulars ESOS - 2018 Tranche VI ESOS - 2018 Tranche V ESOS - 2018 Tranche VII
Date of Grant October 08, 2021 July 26, 2021 October 28, 2021
Number of options granted 22,000 1,00,000 75,000
Exercise price per option H644.70 H690.35 H507.20
10% on October 08, 2022 10% on July 26, 2022 10% on October 28, 2022
Exercise period Within 3 years from the date of respective vesting Within 3 years from the date of respective vesting
Vesting conditions Employee to remain in service on the date of vesting Employee to remain in service on the date of vesting and
other applicable performance conditions.


Particulars ESOS - 2018 Tranche VIII ESOS - 2018 Tranche IX ESOS - 2018 Tranche X ESOS - 2018 Tranche XI
Date of Grant December 10, 2021 June 09, 2022 August 08, 2022 October 27, 2022
Number of options granted 75,000 25,000 6,78,559 2,00,000
10% on December 10, 2022 20% on June 09, 2023 20% on August 08, 2023 20% on October 27, 2023
Vesting conditions Employee to remain in service on the date of vesting and other applicable performance conditions.
Note: During the year the Company has approved Employee Stock Option Scheme III 2022 and Restricted stock unit Scheme 2022 where in maximum
number of options/RSU available for grant in scheme are 20.00 lakh and 8.50 lakh respectively. However, no grant has been made under these
schemes.
(ii) Employee Stock Option Scheme movement and related weighted average exercise price are as follows:

Tranche I Tranche II Tranche IV
Options Outstanding at the beginning of the year (a) - - 7,872
Options exercisable at the beginning of the year (b) 1,14,871 1,12,025 36,113
Options granted during the year (c) - - -
Options lapsed / expired during the year (d) 24,999 60,375 24,871
Options vested during the year (e) - - 7,872
Options exercised during the year (f) 79572* - -
Options forfeited during the year (g) - - -
Options outstanding at end of the year (h) = (a+c-e-g) - - -
Options exercisable at the end of the year (i) = (b+e-d-f) 10,300 51,650 19,114
Weighted Average Exercise Price per option (H) 338.00 1,600.60 1,333.35

Options exercisable at the beginning of the year (b) 3,32,456 60,375 70,125 2,000
Options lapsed / expired during the year (d) 1,42,575 40,375 47,825 5,000
Options forfeited during the year (g) 33,640 750 12,225 17,500
Options outstanding at end of the year (h) = (a+c-e-g) 1,39,200 - - 14,000
Weighted Average Exercise Price per option (H) 1,333.35 1,333.35 847.40 261.15

Particulars ESOS - Restricted ESOS - Restricted

ESOS - 2016 ESOS - 2016
stock units 2020 stock units 2020
Options Outstanding at the beginning of the year (a) 4,95,000 - 1,42,367 -
Options exercisable at the beginning of the year (b) 55,000 - 14,204 -
Options granted during the year (c) - 5,75,000 - 25,000
Options lapsed / expired during the year (d) - - 1,513 -
Options vested during the year (e) 1,10,000 - 23,194 -
Options exercised during the year (f) 165000** - 12691*** -
Options forfeited during the year (g) 3,85,000 - 37,964 -
Options outstanding at end of the year (h) = (a+c-e-g) - 5,75,000 81,209 25,000
Options exercisable at the end of the year (i) = (b+e-d-f) - - 23,194 -
Weighted Average Exercise Price per option (H) 261.15 444.05 10.00 10.00

Options lapsed / expired during the year (d) - - 1,000 -
Options vested during the year (e) 10,000 - 2,500 7,500
Options forfeited during the year (g) - 22,000 59,000 -
Options outstanding at end of the year (h) = (a+c-e-g) 90,000 - 13,500 67,500
Options exercisable at the end of the year (i) = (b+e-d-f) 10,000 - 1,500 7,500
Weighted average remaining contractual life (year) 2.86 - 3.10 3.21

Options Outstanding at the beginning of the year (a) - - -
Options exercisable at the beginning of the year (b) - - -
Options granted during the year (c) 25,000 6,78,559 2,00,000
Options lapsed / expired during the year (d) - - -
Options vested during the year (e) - - -
Options exercised during the year (f) - - -
Options forfeited during the year (g) - 1,11,969 -
Options outstanding at end of the year (h) = (a+c-e-g) 25,000 5,66,590 2,00,000
Options exercisable at the end of the year (i) = (b+e-d-f) - - -
Weighted Average Exercise Price per option (H) 345.20 345.30 431.20



Options Outstanding at the beginning of the year (a) - 52,875 40,000 27,243
Options exercisable at the beginning of the year (b) 5,07,527 1,60,875 60,000 28,492
Options lapsed / expired during the year (d) 64,724 99,350 60,000 8,750
Options vested during the year (e) - 50,500 - 16,371
Options exercised during the year# (f) 3,27,932 - - -
Options forfeited during the year (g) - 2,375 40,000 3,000
Options outstanding at end of the year (h) = (a+c-e-g) - - - 7,872
Options exercisable at the end of the year (i) = (b+e-d-f) 1,14,871 1,12,025 - 36,113
Weighted Average Exercise Price per option (H) 338.00 1,600.60 1206.35 1,333.35
Weighted average remaining contractual life (year) 0.14 0.53 - 0.21

Options exercisable at the beginning of the year (b) 1,60,455 65,500 55,750 -
Options lapsed / expired during the year (d) 1,34,989 37,000 9,000 -
Options exercised during the year## (f) - - - 2,500
Options forfeited during the year (g) 2,72,121 18,750 6,500 -
Weighted Average Exercise Price per option (H) 1,333.35 1,333.35 847.40 261.15

Particulars ESOS - 2016 ESOS - Restricted
Tranche V stock units 2020
Options Outstanding at the beginning of the year (a) 5,50,000 2,63,586
Options exercisable at the beginning of the year (b) - -
Options granted during the year (c) - -
Options lapsed / expired during the year (d) - 215
Options vested during the year (e) 55,000 14,419
Options exercised during the year (f) - -
Options forfeited during the year (g) - 1,06,800
Options outstanding at end of the year (h) = (a+c-e-g) 4,95,000 1,42,367
Options exercisable at the end of the year (i) = (b+e-d-f) 55,000 14,204
Weighted Average Exercise Price per option (H) 261.15 10.00
Weighted average remaining contractual life (year) 2.92 2.39


Options Outstanding at the beginning of the year (a) - - - -
Options granted during the year (c) 1,00,000 22,000 75,000 75,000
Options lapsed / expired during the year (d) - - - -
Options vested during the year (e) - - - -
Options forfeited during the year (g) - - - -
Options exercisable at the end of the year (i) = (b+e-d-f) - - - -
* Weighted average share price at the date of the exercise of the stock option is H 520.28
** Weighted average share price at the date of the exercise of the stock option is H 433.53
*** Weighted average share price at the date of the exercise of the stock option is H 395.86
# Weighted average share price at the date of the exercise of the stock option is H 718.47
### Weighted average share price at the date of the exercise of the stock option is H 524.75
(iii) Black-Scholes Model have been used to derive the fair value of the stock option granted, taking in to account the
terms and conditions upon which the share options were granted. The fair value of each stock options and the related
parameters considered for the same are:

Particulars

Share Price at Grant Date (H) 338.00 1,600.60 1,206.35 1,333.35
Exercise Price (H) 338.00 1,600.60 1,206.35 1,333.35
Dividend Yield Rate (%) 1.24 0.31 0.39 0.55

Particulars

Share Price at Grant Date (H) 1,333.35 1,333.35 847.40 261.15
Exercise Price (H) 1,333.35 1,333.35 847.40 261.15
Dividend Yield Rate (%) 0.53 0.55 1.06 -
ESOS - Restricted ESOS - Restricted

ESOS - 2016 ESOS - 2016
Particulars stock units 2020 stock units 2020
Exercise Price (H) 261.15 444.05 10.00 10.00



Particulars

Exercise Price (H) 690.35 644.70 507.20 588.10
ESOS - 2018 ESOS - 2018 ESOS - 2018

Particulars
Estimated Value of Stock Option (H) 166.72 166.16 208.11

Share Price at Grant Date (H) 345.20 345.30 431.20
Exercise Price (H) 345.20 345.30 431.20
Expected Volatility (%)* 51.30 51.03 50.65
Dividend Yield Rate (%) - - -
Expected Life of Options** (year) 4.21 4.21 4.21
Risk Free Rate of Interest (%) 6.94 6.92 7.19
*Expected volatility has been computed basis the expected life.
**Expected life of the share option is based on the date of grant and is not necessarily indicative of exercise pattern that may occur.
(iv) The expenses recognised for the employee services received during the year are as follows:
(J in crore)
Expenses arising from equity settled share based payment transaction 11.95 3.67
Expenses arising from cash settled share based payment transaction - -
Total 11.95 3.67
Note 24.9: Dividend declared and paid
Net Profit for the

Rate of dividend Amount of Dividend pay out
Particulars accounting period
(per cent) dividend ratio (per cent)
(J in crore)*
April 2022- March 2023 1,056.27 - - -
April 2021- March 2022 821.92 - - -
Dividend paid during the financial year:

(J in crore)
Dividend on ordinary shares:
Total - -
*Net profit for the accounting period is based on standalone financial statement of the Company.

NOTE 25: OTHER EQUITY (NATURE AND PURPOSE Act, 1961 and the same is considered to be an eligible transfer
OF RESERVES) for the purposes of section 29C (i).
Share application money Share option outstanding accounts

Share application money pending allotment whereby the The cost of equity settled transactions is determined by the
amount has been received on the application, of which fair value at the date when the grant is made using the Black-
allotment is yet to be made. Scholes Model. The cumulative expense recognised for equity
settled transaction is credited to share option outstanding
Securities premium account in equity.
Securities premium includes :
Retained Earnings
- amount of premium received on issue of equity shares and;
Retained earnings are profits earned by the Company
- fair value of the stock options which are treated as expense, after transfer to general reserve and payment of dividend
if any, in respect of shares allotted pursuant to Employee to shareholders.
Stock Options Scheme.
The securities premium can be utilised only for limited Effective portion of cash flow hedges
purposes such as issuance of bonus shares, issue expenses The Company uses hedging instruments as part of its
of securities which qualify as equity instruments in management of foreign currency risk and interest rate risk
accordance with the provisions of the Companies Act, 2013. associated on borrowings. For hedging foreign currency
and interest rate risk, the Company uses foreign currency
Special reserve and Statutory reserve forward contracts, cross currency swaps and interest rate
In accordance with Section 29C(i) of the National Housing swaps. To the extent these hedges are effective, the change
Bank Act, 1987, the Company is required to transfer at least in fair value of the hedging instrument is recognised in the
20% of its net profit every year to a reserve fund (statutory cash flow hedging reserve. Amounts recognised in the cash
reserve) before any dividend is declared. flow hedging reserve is reclassified to the statement of profit
or loss when the hedged item affects profit or loss (e.g.
The Company has created a special reserve in terms of interest payments).
clause (viii) of sub-section (1) of section 36 of the Income-tax
NOTE 26: INTEREST INCOME

(J in crore)
Interest income Interest income
On financial on financial on financial
Particulars On financial
assets measured assets classified assets classified
Total assets measured Total
at Amortised as fair value at Amortised cost
as fair value
cost through profit through profit or
or loss loss
Loans 5,837.25 - 5,837.25 5,564.46 - 5,564.46

Investments
Financial investments - Debt 169.82 - 169.82 158.45 - 158.45
Financial asset valued at fair - 81.22 81.22 - 44.92 44.92
value through profit and loss
Deposits with banks 107.27 - 107.27 50.82 - 50.82
Other Interest income
Loan against deposits 3.51 - 3.51 3.35 - 3.35
Total 6,117.85 81.22 6,199.07 5,777.08 44.92 5,822.00


NOTE 27: FEES AND COMMISSION INCOME

(J in crore)
Fees Income 145.88 159.74
Other charges recovered 137.38 102.81
Total 283.26 262.55
NOTE 28: NET GAIN ON FAIR VALUE CHANGES

(J in crore)
Net gain on financial instruments at fair value through profit or loss
Others
- Investments 34.10 111.38
Total 34.10 111.38
Fair value changes:
- Realised 45.03 121.42
- Unrealised (10.93) (10.04)
Total 34.10 111.38
NOTE 29: FINANCE COSTS

(J in crore)
Particulars liabilities liabilities
liabilities liabilities
measured at fair Total measured at fair Total
measured at value through
measured at
value through Amortised cost
Amortised cost Profit or loss
Profit or loss
Interest on debt securities - 395.68 395.68 - 704.37 704.37
Interest on borrowings - 2,051.22 2,051.22 - 1,913.08 1,913.08
Interest on deposits - 1,315.39 1,315.39 - 1,307.06 1,307.06
Interest on subordinated liabilities - 119.25 119.25 - 124.28 124.28
Interest on lease liabilities - 6.18 6.18 - 6.52 6.52
Interest on Income tax - 0.05 0.05 - 0.47 0.47
Fee and other charges - 10.75 10.75 - 8.68 8.68
Total - 3,898.52 3,898.52 - 4,064.46 4,064.46
NOTE 30: IMPAIRMENT ON FINANCIAL INSTRUMENTS AND WRITE OFFS

(J in crore)
On financial
On financial On financial On financial
Particulars instruments
instruments instruments instruments
measured at fair Total Total
measured at measured at fair measured at
value through value through OCI Amortised cost
Amortised cost
OCI
Loans - (1,126.10) (1,126.10) - 14.84 14.84
Bad debts written off (net) - 1,738.20 1,738.20 - 562.03 562.03
Investments - 78.55 78.55 - - -
Other receivables - 0.63 0.63 - (0.49) (0.49)
Trade receivables - - - - (0.02) (0.02)
Total - 691.28 691.28 - 576.36 576.36

NOTE 31: EMPLOYEE BENEFITS EXPENSES

(J in crore)
Salaries, allowances and benefits 230.64 193.19
Contribution to provident and other funds 18.38 16.53
Share based payments to employees 11.95 3.67
Staff welfare expenses 4.99 3.22
Total 265.96 216.61
NOTE 32: OTHER EXPENSES

(J in crore)
Rent expenses 2.06 1.36
Rates and taxes 0.26 0.27
Electricity and water exepnses 8.73 7.45
Repairs and maintenance 24.59 17.65
Office running and mantinance expenses 30.08 25.53
Business support services 7.04 2.77
Legal and professional charges 53.53 61.37
Advertisement and publicity 19.99 18.44
Corporate social responsibility expenses (Refer Note 32.1) 18.76 23.22
Communication costs 9.07 9.73
Travelling and conveyance 9.52 5.10
Printing and stationery 5.48 3.89
Training and recruitment expenses 6.98 5.29
Director's fees, allowances and expenses 2.92 2.10
Auditor's fees and expenses (Refer Note 32.2) 1.08 0.84
Insurance 0.66 0.54
Bank charges 1.44 0.40
Impairment/loss on assets held for sale 47.65 7.86
Miscellaneous expenses - 0.83
Total 250.03 194.83


Note 32.1: Corporate Social Responsibility expense (CSR)

As per section 135 of the Companies Act, 2013 along with Companies (Corporate Social Responsibility Policy) Rules 2021
as amended, the Company is required to spent for CSR activities in accordance with its CSR policy. The details of the CSR
expenses for the year are as under:
(J in crore)
a) Gross amount required to be spent by the Company during the year 18.76 23.19
b) Amount spent during the year
i) Construction/acquisition of any asset - -
ii) On purposes other than (i) above
- Contribution to various Trust/NGOs/Societies/Agencies and utilisation thereon 11.22 22.06
- Expenditure on administrative overheads for CSR^ 0.54 1.16
Total 11.76 23.22
c) Shortfall at the end of year 7.00 -
d) Total of previous years shortfall - -
e) Reason for shortfall Refer note 32.1 (i) NA
f) Details of related party transactions,contribution to a trust controlled by the company in relation to
CSR expenditure trust
- Pehel Foundation* 11.22 18.19
g) Nature of CSR activities
Nature of CSR activities undertaken by the Company are in relation to:
- Healthcare
- Education
- Women Empowerment
- Environmental Sustainability
- Promoting education for the differently abled
- Employment enhancing vocational skills, training for women
- Contribution towards Prime minister relief fund
h) CSR amount spent or unspent for the financial year
- Total Amount Spent for the Financial Year 11.76 23.22
- Total Amount transferred to Unspent CSR Account as per section 135(6) 7.00 -
- Amount transferred to Unspent Corporate Social Responsibility Account with in specified period Yes NA
- Amount transferred to any fund specified under Schedule VII as per second proviso to section - -
135(5)
Note 32.1 (i): In relation to Financial Year 2022-23, for optimal and proper utilization of the CSR funds, projects were
reviewed and to implement the project effectively and create long term impact, projects were revised as ongoing projects and
funds for the same projects will be utilised as planned from unspent account in the subsequent financial years.
^The administrative overheads considered on the actual CSR amount spent and not on unspent account.
*Gross amount paid to PEHEL Foundation was H 11.43 crore during the FY 2022-23, out of which H 0.21 crore was received subsequently by PHFL
Home Loan and Services Limited from PEHEL Foundation on account of unspent amount pertaining to ongoing project.
Note 32.2: Auditor’s fees and expenses*

(J in crore)
Statutory audit fee 0.43 0.38
Tax audit fee 0.08 0.07
Limited review fee 0.32 0.24
Other certification fee 0.14 0.08
Out of pocket expenses 0.03 0.01
GST expenses on Auditor's fees and expenses 0.08 0.06
Total 1.08 0.84
*Excluding fees in relation to the Rights Issue related services by the statutory auditor’s amounting to H 0.65 crore plus applicable taxes (Previous year
H Nil).

NOTE 33: INCOME TAXES

The components of income tax expense are:
(J in crore)
Adjustments in respect of current income tax of prior years 0.04 (47.41)
Deferred tax relating to origination and reversal of temporary differences 227.13 (1.67)
Total 314.91 247.48

Deferred tax (Refer Note 10) 227.13 (1.67)
Note 33.1: Reconciliation of tax expense and the accounting profit multiplied by statutory income tax rate for the year ended
March 31, 2023 and March 31, 2022 is as follows:
(J in crore)
Accounting profit before tax (a) 1,360.91 1,083.96
Statutory income tax rate (%) (b) 25.168 25.168
Tax at statutory income tax rate (c) = (a*b) 342.51 272.81
Adjustments in respect of current income tax of prior years (d) 0.04 (47.41)
Impact of:
– Income not subject to tax (e) (38.33) (20.37)
– Non deductible expenses (f) (210.89) 89.80
– Deduction under section 36 (1) (viii) (g) (11.10) (31.03)
– Other deductions (h) 5.55 (14.65)
Total current tax expense (c+d+e+f+g+h) 87.78 249.15
Effective tax rate (%) 23.14 22.83
Other comprehensive income
Tax expense on re-measurement gains/ (losses) on defined benefit plan 0.17 (0.34)
Total tax on other comprehensive income 0.17 (0.34)
NOTE 34: EARNING PER SHARE

i) The Earnings Per Share (EPS) is calculated as follows:
Particulars Unit Current Year Previous Year

a) Amount used as the numerator for basic EPS profit for the year (H in crore) 1,046.00 836.48
b) Weighted average number of equity shares for basic EPS Number 16,86,79,926 16,85,05,508
c) Weighted average number of equity shares for diluted EPS Number 16,88,44,989 16,88,74,383
d) Nominal value per share (in H) 10 10
e) Earnings per share:
- Basic (a/b) (in H) 62.01 49.64
- Diluted (a/c) (in H) 61.95 49.53


ii) The basic earnings per share has been computed by dividing the net profit after tax attributable to equity share holders
of the Company by the weighted average number of equity shares outstanding during the year. The diluted earnings per
share has been computed by dividing the net profit after tax attributable to equity share holders of the Company by the
weighted average number of equity shares considered for deriving basic earning per equity share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The
dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at
fair value (i.e. the average market value of the outstanding equity shares). Diluted potential equity shares are deemed
converted as of the beginning of the period unless issued at a later date. Diluted potential equity shares are determined
independently for each period presented. Diluted earnings per share does not include conversion or exercise of potential
ordinary shares that would have an antidilutive effect on earnings per share.
Reconciliation of equity shares used in computation of basic and diluted earning per equity share is as follows
Year ended Year ended

Particulars
March 31, 2023 March 31, 2022
Weighted average number of equity shares at the beginning of the year 16,85,98,555 16,82,68,123
Weighted average number of equity shares issued during the year 81,371 2,37,385
Weighted average number of equity shares for computation of basic earnings per share 16,86,79,926 16,85,05,508
Effect of dilutive equity shares - share option outstanding 1,65,063 3,68,875
Weighted average number of equity shares for computation of dilutive earnings per share 16,88,44,989 16,88,74,383
NOTE 35: ASSETS HELD FOR SALE

The Company has taken possession of mortgage properties (residential / commercial) and is in the process of disposing the
same. These properties are classified as assets held for sale.
Whether title deed

holder is promoter,
Description Gross Title deeds Property held Reason for not being
director or relative
Period Particulars of item of carrying held in the since which held in the name of the
of promoter/ director
property value name of date company
or employee of
promoter/ director
March 31, 2023 Assets held for Land - NA NA NA Possession of
sale assets taken under
March 31, 2023 Assets held for Building - NA NA NA Securitization and
sale Reconstruction of
Financial Assets and
March 31, 2022 Assets held for Land 73.20 Respective No Between Enforcement of Security
sale borrowers -January 2013 Interest Act, 2002
to March 2020 (SARFAESI Act) and
March 31, 2022 Assets held for Building 148.63 Respective No Between the Security Interest
sale borrowers -January 2013 (Enforcement) Rules,
to March 2021 2002
NOTE 36: DISCLOSURE AS PER NON-BANKING FINANCIAL COMPANY-HOUSING FINANCE COMPANY

(RESERVE BANK) DIRECTIONS, 2021
The following additional disclosures have been given in compliance with:
(i) Non-Banking Financial Company-Housing Finance Company (Reserve Bank) Directions, 2021”” (‘RBI directions””) issued
by RBI vide notification number RBI/2020-21/73/DOR.FIN.HFC.CC.No.120/03.10.136/2020-21 dated February 17, 2021; and
(ii) RBI notification number RBI/2022-23/26/DOR.ACC.REC.No.20/21.04.018/2022-23 dated April 19, 2022 in relation to
Scale Based Regulation.
The above stated RBI directions and NHB Directions are applicable to the Company on standalone basis except note no.
36.10, hence these disclosures are on the basis of standalone financial statement of the Company.

Note 36.1: Capital to Risk Assets Ratio (CRAR)

As at As at
Particulars
March 31, 2023 March 31, 2022
i) CRAR (%)^ 24.43 23.40

ii) CRAR – Tier I Capital (%) 22.40 20.73
iii) CRAR – Tier II Capital (%) 2.03 2.67
(iv) Amount of subordinated debt raised as Tier-II Capital - -
(v) Amount raised by issue of Perpetual Debt Instruments - -
^The CRAR is computed by dividing the total capital fund of the Company with aggregated risk-weighted assets/exposure.
Note 36.2: Reserve Fund u/s 29C of NHB Act, 1987

(J in crore)
Balance at the beginning of the year
purposes of Statutory Reserve u/s 29C of NHB Act, 1987
(c) Total 1,302.73 1,137.73
Addition/ Appropriation/ Withdrawal during the year
Add:
(a) Amount transferred u/s 29C of the NHB Act, 1987 167.00 41.00
(b) Amount of Special Reserve u/s 36 (1)(viii) of Income Tax Act, 1961 taken into account for the purpose 45.00 124.00
of Statutory Reserve u/s 29C of NHB Act, 1987
Less:
(a) Amount appropriated from Statutory Reserve u/s 29C of the NHB Act, 1987 - -
(b) Amount withdrawn from Special Reserve u/s 36 (1)(viii) of Income Tax Act, 1961 which has been - -
taken into account for the purpose of provision u/s 29C of NHB Act, 1987
Balance at the end of the year
purposes of Statutory Reserve u/s 29C of the NHB Act, 1987
(c) Total 1,514.73 1,302.73
Note 36.3: Investments

(J in crore)
Value of Investments
(i) Gross value of Investments
(a) In India 3,266.57 3,472.02
(ii) Provisions for Depreciation
(a) In India 78.55 -
(iii) Net value of Investments
(a) In India 3,188.02 3,472.02
Movement of provisions held towards depreciation on investments
(i) Opening balance - -
(ii) Add: Provisions made during the year 78.55 -
(iii) Less: Write-off / Written-back of excess provisions during the year - -
(iv) Closing balance 78.55 -


(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Current investments 870.85 1,237.54

Non-current investments 2,317.17 2,234.48
Total 3,188.02 3,472.02
Note 36.4: Derivatives

i) Forward Rate Agreement (FRA) / Interest Rate Swap (IRS)
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
(i) The notional principal of swap agreements 10,065.79 10,288.45

(ii) Losses which would be incurred if counterparties failed to fulfil their obligations under the 721.04 332.88
agreements
(iii) Collateral required by the HFC upon entering into swaps Nil Nil
(iv) Concentration of credit risk arising from the swaps@ 10,065.79 10,288.45
(v) The fair value of the swap book 660.04 242.25
@ The Company has entered into swap and forward agreements with various banks having almost equal exposure with each of them. Hence, there is
no concentration of credit risk which could be exposure to particular industries or swaps with highly geared companies.
ii) Exchange Traded Interest Rate (IR) Derivative – There is no exchange traded interest rate derivative.
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
(i) Notional principal amount of exchange traded IR derivatives undertaken during the year - -
(ii) Notional principal amount of exchange traded IR derivatives outstanding as on 31st March - -
(iii) Notional principal amount of exchange traded IR derivatives outstanding and not "highly effective" - -
(iv) Mark-to-market value of exchange traded IR derivatives outstanding and not "highly effective" - -
iii) Disclosure on Risk Exposure in Derivatives
A. Qualitative Disclosure
Particulars Details
a) the structure and organization for Company has a Risk Management Committee (RMC) constituted by the Board and has a Market Risk
management of risk in derivatives Management policy under its supervision. As a policy, the Company doesn’t trade in derivative products.
trading, As per specific Board approval, the Company has entered into derivative product for its ECB borrowing
for financing prospective buyers of eligible housing units under both “automatic route” and “approval
route” in terms of RBI guidelines.
b) the scope and nature of risk The RMC has put in place or enhanced the control measures to contain these risks. The Company has
measurement, risk reporting and a robust mechanism to ensure an ongoing review of systems, policies, processes and procedures to
risk monitoring systems, contain and mitigate risk that arise from time to time.
c) policies for hedging and / or The Company has not entered into any speculative derivative transaction (without underlying exposure).
mitigating risk and strategies The Company has entered in to derivative transaction only for hedging its foreign currency and interest
and processes for monitoring rate exposure against foreign currency borrowing which has been availed for financing prospective
the continuing effectiveness of buyers of eligible housing units. The derivative transactions entered into for hedging the ECB borrowings
hedges / mitigates, and are as per the applicable guidelines of RBI. The hedging is guided by the Board resolution authorising the
Company to borrow through ECB route and hedging of the underlying exposure.
d) accounting policy for recording The derivative contracts are initially recognised at fair value on the date of the transaction and all
hedge and non-hedge outstanding derivative transactions, on the date of balance sheet, are revalued at their fair market value,
transactions; recognition of on that date. Where Cash Flow hedge accounting is used, fair value changes of the derivative contracts
income, premiums and discounts; are recognised through the Cash Flow Hedge Reserve in the same period they are accrued. Any profit/
valuation of outstanding contracts; loss arising on cancellation/unwinding of derivative contracts are recognised as income or expenses for
provisioning, collateral and credit the period. Premium paid / discount received in advance on derivative contracts, which are not intended
risk mitigation. for trading or speculation purposes, are amortised over the period of the contracts, if such contracts
relate to monetary items as at the balance sheet date.

(J in crore)
Particulars Currency Interest Rate Currency Interest Rate
Derivatives Derivatives Derivatives Derivatives
(i) Derivatives (Notional Principal Amount) 6,242.71 3,823.08 6,763.42 3,525.03

(ii) Marked to Market Positions
(a) Assets (+) 658.02 63.02 332.88 -
(b) Liability (-)* (61.00) - (50.08) (40.55)
(iii) Credit Exposure - - - -
(iv) Unhedged Exposures 3.25 3.25 96.84 4.82
Note 36.5: Assignment / Securitisation

i) There are no SPVs sponsored by PNB Housing Finance Limited.
ii) During the year, the Company has not sold any financial assets to Securitisation / Reconstruction Company for Asset
Reconstruction (Previous year H Nil).
iii) Details of assignment transactions undertaken:

(J in crore)
(i) No. of accounts - -
(ii) Aggregate value (net of provisions) of accounts assigned - -
(iii) Aggregate consideration - -
(iv) Additional consideration realised in respect of accounts transferred in earlier years - -
(v) Aggregate gain / loss over net book value - -
During the year, the Company has sold some loans and advances measured at amortised cost under co-lending deals through
assignment mode, the details of which has been given in note 8.3 (b).
iv) During the year, the Company has not purchased any non-performing financial assets (Previous year H Nil).
v) During the year, the Company has sold non-performing financial assets details of which are given in note 8.3 (c) (Previous
year H Nil).
Note 36.6: Asset Liability Management

The residual maturity profile of Assets and Liabilities is carried out based on the current estimates and assumptions regarding
behavioural pattern of pre-payments/maturities and renewals. Maturity pattern of certain items of assets and liabilities are
as follows:

(J in crore)
Liabilities Assets

Borrowings Market
liabilities assets
1 day to 7 days 61.85 49.99 - - 251.03 91.46 -
8 days to 14 days 60.41 30.00 - - 660.38 103.00 -
15 days to 30/31 days 115.49 550.01 - - 609.72 676.38 -
Over 1 month to 2 months 384.95 1,177.51 600.00 - 1,091.87 - -
Over 2 months to 3 months 326.63 2,336.99 - 246.65 1,069.41 - -
Over 3 months to 6 months 981.24 3,557.89 499.00 - 3,081.30 155.65 -
Over 6 months to 1 year 1,858.52 3,150.19 300.00 3,823.09 5,638.22 416.15 -


(J in crore)
Liabilities Assets

Borrowings Market
liabilities assets
Over 1 year to 3 years 6,951.91 9,359.29 1,515.00 1,421.84 16,837.37 750.77 -
Over 3 years to 5 years 4,305.65 4,698.84 1,290.00 - 10,790.55 406.39 -
Over 5 years 2,197.25 772.41 1,028.44 - 17,878.68 588.22 -
Total 17,243.90 25,683.12 5,232.44 5,491.58 57,908.53 3,188.02 -

(J in crore)
Liabilities Assets
Particulars Foreign
Borrowings Market Foreign
Deposits Currency Net advances Investments
from banks borrowings currency assets
liabilities
1 day to 7 days 84.58 50.01 - - 215.67 100.02 -
8 days to 14 days 40.91 - - - 215.67 4.05 -
15 days to 30/31 days 146.45 1,789.99 350.00 - 492.96 14.85 -
Over 1 month to 2 months 390.97 912.58 225.00 - 907.72 351.33 -
Over 2 months to 3 months 399.36 950.19 300.00 51.17 891.45 63.28 -
Over 3 months to 6 months 1,216.92 2,379.68 1,255.00 619.72 2,579.66 59.72 -
Over 6 months to 1 year 2,167.12 3,896.26 430.00 284.28 4,758.27 370.20 -
Over 1 year to 3 years 6,839.39 7,680.93 2,054.00 4,510.52 14,633.45 1,344.30 -
Over 3 years to 5 years 4,285.23 3,188.78 1,500.00 532.09 11,516.28 470.00 -
Over 5 years 2,078.04 869.64 1,526.15 - 19,169.61 694.27 -
Total 17,648.97 21,718.06 7,640.15 5,997.78 55,380.74 3,472.02 -
Note 36.7: Exposure:

i) Exposure to Real Estate Sector
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
i) Direct Exposure
A. Residential Mortgages (including loan against residential property): 49,173.90 43,614.41
Lending fully secured by mortgages on residential property that is or will be occupied by the
borrower or that is rented. Exposure also include non-fund based (NFB) limits.
B. Commercial Real Estate: 10,167.47 14,325.27
Lending secured by mortgages on commercial real estates. Exposure also include non-fund
based (NFB) limits
C. Investments in Mortgage Backed Securities (MBS) and other securitised exposures – - -
i) Residential
ii) Commercial Real Estate - -
ii) Indirect Exposure
Fund based and non-fund based exposures on NHB and Housing Finance Companies (HFCs) - -
Total exposures to real estate sector 59,341.37 57,939.68
Note: While computing the above information, certain estimates, assumptions and adjustments have been made by the
Management which have been relied upon by the auditors.
ii) As on March 31, 2023, the Company does not have any exposure to Capital Market (Previous year H Nil).
iii) As on March 31, 2023, the Company has not financed any product of the parent company (Previous year H Nil).
iv) As on March 31, 2023, the Company has not exceeded the prudential exposure limit for single borrower or group
borrower (Previous year H Nil).

v) As on March 31, 2023, the Company has not given any unsecured advances (Previous year H Nil).
vi) As on March 31, 2023, all advances of the Company are secured against tangible assets and there are no advances against
intangible assets (Previous year H Nil).
vii) As on March 31, 2023, the Company has no exposures to group companies engaged in the real estate business (Previous
year H Nil).
viii) As on March 31, 2023, the Company has no Intra-group exposures with in the group companies as defined by RBI
Note 36.8: Registration obtained from financial sector regulators

NHB : vide registration number 01.0018.01
Ministry of Corporate Affairs : L65922DL1988PLC033856
Note 36.9: Disclosure of Penalties imposed by NHB/RBI and other regulators:

During the financial year ended March 31, 2023, Regulators have imposed a penalty of H 0.08 crore for delay in appointment
of Independent directors on Board pursuant to Regulation 17 (1) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
During the financial year ended March 31, 2022, Regulators has imposed a penalty of H 0.06 crore on account of the below
mentioned observations:
(i) NHB has levied a penalty of H .01 crore for Non adherence of policy circular no. 58 and 75 with respect to upfront
disbursal of sanctioned individual housing loan to the builders without linking the disbursals to various stages of
construction of housing project.
(i) BSE Ltd & National Stock Exchange of India Ltd has imposed a penalty of H 0.05 crore for delay in appointment
of Independent directors on Board pursuant to Regulation 17 (1) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
Note 36.10: Related Party Transactions

i) Pehel Foundation Wholly owned Subsidiary
ii) PHFL Home Loan and Services Limited Wholly owned Subsidiary
iii) Punjab National Bank Promoter/Enterprise having Significant
Influence
iv) Quality Investment Holding Pcc (w.e.f. July 19, 2022) (formerly Quality Investment Holdings) Enterprise having Significant Influence
v) PNB Investment Services Limited Enterprise having Significant Influence
vi) PNB Gilts Limited Enterprise having Significant Influence
vii) PNB Metlife India Insurance Co Ltd Enterprise having Significant Influence
viii) Dakshin Bihar Gramin Bank Enterprise having Significant Influence
ix) Assam Gramin Vikash Bank Enterprise having Significant Influence
x) Tripura Gramin Bank Enterprise having Significant Influence
xi) Bangiya Gramin Vikash Bank Enterprise having Significant Influence
xii) Mr. Atul Kumar Goel (Non-Executive Nominee Director) (w.e.f. April 28,2022) Key Management Personnel
xiii) Mr. Sunil Kaul (Non-Executive Nominee Director) Key Management Personnel
xiv) Mr. Kapil Modi (Non-Executive Nominee Director) Key Management Personnel
xv) Mr. Neeraj Madan Vyas (Non-Executive and Non-Independent Director) Key Management Personnel
xvi) Mr. Chandrasekaran Ramakrishnan (Independent Director) Key Management Personnel
xvii) Mr. Nilesh S Vikamsey (Independent Director) Key Management Personnel
xviii) Mr. Ashwani Kumar Gupta (Independent Director)* Key Management Personnel
xix) Mr. Tejendra Mohan Bhasin (Independent Director) Key Management Personnel
xx) Mr. Sudarshan Sen (Independent Director) Key Management Personnel



xxi) Ms. Gita Nayyar (Independent Director) (w.e.f. May 29, 2021) Key Management Personnel
xxii) Mr Binod Kumar (Non- Executive, Nominee Director) (w.e.f. January 12, 2022)** Key Management Personnel
xxiii) Mr. Pavan Pal Kaushal (Independent Director) (w.e.f. October 27,2022) Key Management Personnel
xxiv) Mr. Dilip Kumar Jain (Non-Executive Nominee Director) (w.e.f. November 04,2022) Key Management Personnel
xxv) Mr. CH. S. S. Mallikarjuna Rao (Chairman and Non-Executive Director)*** Key Management Personnel
xxvi) Mr. Rajneesh Karnatak (Non-Executive Nominee Director) (w.e.f. January 19, 2021)**** Key Management Personnel
xxvii) Dr. Gourav Vallabh (Independent Director)***** Key Management Personnel
xxviii) Mr. Girish Kousgi (Managing Director and CEO) (w.e.f. October 21, 2022) Key Managerial Personnel
xxix) Mr. Hardayal Prasad (Managing Director and CEO)****** Key Managerial Personnel
xxx) Mr. Sanjay Jain (Company Secretary) Key Managerial Personnel
xxxi) Mr. Kapish Jain (Chief Financial Officer)******* Key Managerial Personnel
xxxii) Mr. Kaushal Mithani (Chief Financial Officer) (w.e.f. April 08, 2022)******** Key Managerial Personnel
xxxiii) Mr. Vinay Gupta (Chief Financial Officer) (w.e.f. October 26, 2022) Key Managerial Personnel
xxxiv) Ms. Deepika Gupta Padhi (Director) Key Management Personnel of PHFL
Home Loan and Services Limited
xxxv) Mr. Amit Singh (Director) (w.e.f January 22,2022) Key Management Personnel of PHFL
xxxvi) Mr. Pankaj Jain (Director) (w.e.f December 07,2021)********* Key Management Personnel of PHFL
xxxvii) Anshul Bhargava (Director)********** Key Management Personnel of PHFL
xxxviii) Rajan Suri (Director)*********** Key Management Personnel of PHFL
*Ceased to be Independent Director w.e.f. May 11, 2022

**Ceases to be Non-Executive Nominee Director w.e.f. October 21, 2022
***Ceases to be the Chairman and Non-Executive Director of the Company w.e.f. February 01, 2022
****Ceases to be Non-Executive Nominee Director w.e.f. October 21 2021
*****Ceases to be the Independent Director w.e.f. April 21, 2021
******Ceased to be Managing Director and CEO w.e.f. October 20, 2022
*******Ceases to be Chief Financial Officer w.e.f. April 07, 2022
********Ceases to be Chief Financial Officer w.e.f. August 23, 2022
*********Ceased to be a Key Management Personnel w.e.f November 24, 2022
**********Ceased to be a Key Management Personnel w.e.f June 11, 2021
***********Ceased to be a Key Management Personnel w.e.f December 7, 2021

Transactions with Related Parties
326
The nature & volume of transactions of the Company during the year, with the above related parties were as follows. These transactions were carried out in ordinary course
of business and were at arm’s length price:
(J in crore)
Personnel Personnel
Transaction during the year:

Pehel Foundation
- Donation paid - - 11.43 18.19 - - - - 11.43 18.19

Punjab National Bank^
- Principal paid on assignment of loans 916.47 1,440.11 - - - - - - 916.47 1,440.11
- Interest & other charges paid on assignment 313.41 403.93 - - - - - - 313.41 403.93
of loans
- Servicing Fees received on assignment of 5.37 7.04 - - - - - - 5.37 7.04
Loan Portfolio
- Fixed deposit made/renewed - 3,087.00 - - - - - - - 3,087.00
- Fixed deposit matured - 4,787.00 - - - - - - - 4,787.00
- Interest received on Fixed Deposits - 2.64 - - - - - - - 2.64
- Term loan raised 2,150.00 2,390.00 - - - - 2,150.00 2,390.00
- Term loan repaid 2,009.06 2,773.56 - - - - 2,009.06 2,773.56
- Interest Paid on Term Loan Instalment / 243.21 182.69 - - - - - - 243.21 182.69
ECB / OD
- Non Convertible debentures paid 90.00 - - - - - - - 90.00 -
- Rent & Maintenance Charges 0.38 0.38 - - - - - - 0.38 0.38
- Bank Charges 0.34 0.22 - - - - - - 0.34 0.22
PNB Investment Service Private Limited
- Fees paid 0.02 0.02 - - - - - - 0.02 0.02

PNB Gilts Limited
- Purchase of securities (principal to principal) - 294.99 - - - - - - - 294.99
- Purchase of securities (inter-mediatory) 165.40 1,062.36 - - - - 165.40 1,062.36
- Redemption of securities 674.41 10.34 - - - - - - 674.41 10.34
- Service charges 0.01 0.01 - - - - - - 0.01 0.01
- Interest income on securities 231.71 164.76 - - - - - - 231.71 164.76
(J in crore)
Personnel Personnel
PNB Metlife India Insurance Co Ltd*
- Insurance premium given on behalf of 122.51 - - - - - - - 122.51 -
customer
- Insurance claims received on behalf of 2.77 - - - - - - - 2.77 -
customer
- Insurance premium received back 6.55 - - - - - - - 6.55 -

Dakshin Bihar Gramin Bank*
Corporate Overview

- Deposits Matured 10.00 - - - - - - - 10.00 -
Bangiya Gramin Vikash Bank*
Transactions with KMPs and relatives:
Sitting Fee and Commission paid to Directors
- Mr. Chandrasekaran Ramakrishnan - - - - - - 0.37 0.26 0.37 0.26
- Mr. Sudarshan Sen - - - - - - 0.36 0.21 0.36 0.21
Statutory Reports
- Mr. Nilesh S Vikamsey - - - - - - 0.43 0.29 0.43 0.29

- Mr. Ashwani Kumar Gupta - - - - - - 0.17 0.30 0.17 0.30

- Mr. Neeraj Madan Vyas - - - - - - 0.46 0.15 0.46 0.15
- Mr. Tejendra Mohan Bhasin - - - - - - 0.43 0.31 0.43 0.31
- Ms. Gita Nayyar - - - - - - 0.36 0.09 0.36 0.09
- Mr. Pavan Pal Kaushal - - - - - - 0.12 - 0.12 -
- Dr Gourav Vallabh - - - - - - - 0.15 - 0.15
- Mr. Shital Kumar Jain - - - - - - - 0.05 - 0.05

- Mrs. Shubhalakshmi Panse - - - - - - - 0.11 - 0.11
327
(J in crore)
328
Personnel Personnel
Rental expense:
- Mr. Tejendra Mohan Bhasin and Anjali Bhasin - - - - - - 0.23 0.21 0.23 0.21
Recovery against salary advance from KMP’s
- Mr. Sanjay Jain - - - - 0.03 - - - 0.03 -
Repayment of security deposit


Remuneration expense#:
- Mr. Girish Kousgi - - - - 1.14 - - - 1.14 -
- Mr. Vinay Gupta - - - - 3.97 - - - 3.97 -
- Mr. Hardayal Prasad - - - - 2.62 3.07 - - 2.62 3.07
- Mr. Sanjay Jain - - - - 0.81 0.70 - - 0.81 0.70
- Mr. Kapish Jain - - - - 0.18 1.40 - - 0.18 1.40
- Mr. Kaushal Mithani - - - - 0.40 - - - 0.40 -
^ Excluding running current / overdraft account transactions.
# Excluding perquisites on exercise of stock options during the year.
(J in crore)
2023 2022 2023 2022 2023 2022
Pehel Foundation
- Other receivables (net) - - 0.21 - - - - - 0.21 -

Receivables
- Servicing fees receivable on 0.44 0.61 - - - - - - 0.44 0.61
assignment on loans
Payables
- Term loans 2,457.93 2,317.00 - - - - - - 2,457.93 2,317.00
- External Commercial Borrowings## 2,178.75 2,008.89 - - - - - - 2,178.75 2,008.89
- Interest accrued on term loans and 2.23 0.49 - - - - - - 2.23 0.49
external commercial borrowings
- Payable on assignment on loans 79.29 124.94 - - - - - - 79.29 124.94
(J in crore)
2023 2022 2023 2022 2023 2022
Key Managerial Personnel

Receivables
- Mr. Sanjay Jain - - - - 0.04 0.03 - - 0.04 0.03
Payables
Retirement benefits (as per actuarial
valuation)
- Mr. Girish Kousgi - - - - 0.10 - - - 0.10 -
Corporate Overview
- Mr. Vinay Gupta - - - - 0.05 - - - 0.05 -

- Mr. Sanjay Jain - - - - 0.33 0.31 - - 0.33 0.31
- Mr. Kapish Jain - - - - - 0.27 - - - 0.27
# Excluding running current account balances.
## Including mark to market adjustment.
* SEBI vide notification No. SEBI/LAD-NRO/GN/2021/55 dated November 9, 2021 has enhanced the definitation of related party with effect from April 1, 2022. Hence, the transactions and outstanding
balances has been reported from the date of applicability.
Statutory Reports
The policy on dealing with Related Party Transactions is available on our website www.pnbhousing.com

329
Note 36.11: Diagrammatic representation of group structure along with holding percentage is tabulated below. Further, the
Company has complied with the provisions relating to number of layers as prescribed under clause (87) of section 2 of the
Comapnies Act 2013, read with Companies (Restriction on number of Layers) Rules, 2017.

(Promoter)
(32.52%)
PNB Housing
Finance Limited
(100%)
PHFL Home Loans Pehel

and Services Limited Foundation
Note 36.12: Rating assigned by Credit Rating Agencies and migration of rating during the year are as follows:
Nature of Instrument As at March 31, 2023 As at March 31, 2022 Migration during the year
Deposits CRISIL AA (Outlook - Stable) CRISIL FAA+ (Outlook-Negative) Upgraded
Long term bonds CRISIL AA (Outlook - Stable) CRISIL AA (Outlook-Negative) Upgraded
(Secured and Tier-II bonds) CARE AA (Outlook - Stable) CARE AA (Outlook-Stable) No change
IND AA (Outlook - Stable) IND AA (Outlook-Negative) Upgraded
ICRA AA (Outlook - Stable) ICRA AA (Outlook-Negative) Upgraded
Commercial Paper CRISIL A1+ CRISIL A1+ No change
CARE A1+ CARE A1+ No change
Bank Term Loan CRISIL AA (Outlook - Stable) CRISIL AA (Outlook-Negative) Upgraded
Note 36.13: Remuneration of Directors: Details of Remuneration of Directors are disclosed in Form No. MGT - 7.
Note 36.14: Management: Management Discussion and Analysis report shall be referred for the relevant disclosures.
Note 36.15: During the year, no transaction was accounted which was related to prior period in terms of Ind AS 8 (Previous
year H Nil).
Note 36.16: During the year, no item of revenue recognition has been postponed except as disclosed in accounting policy for
revenue recognition (Refer Note 2.3).
Note 36.17: Consolidated Financial Statements (CFS): Refer note no. 1.3 “Principles of consolidation”.


Note 36.18: Provisions and Contingencies:

Break up of ‘Provisions and Contingencies’ shown under the head Expenditure in Statement of Profit and Loss is given
as follows:
(J in crore)
1. Provisions for depreciation on Investment 78.55 -
2. Provision made towards Income tax 87.78 242.56
3. Provision towards NPA (1,121.82) 525.95
4. Provision for Standard Assets
i) Teaser Loans - -
ii) CRE (10.11) (150.16)
iii) CRE – RH (14.86) (302.84)
iv) Other Loans 20.69 (58.11)
Total (i+ii+iii+iv) (4.28) (511.11)
5. Other Provision and Contingencies (Refer Note 2.21) 0.59 (0.49)
6. Provision for Stock of Acquired Properties - 7.86
Note 36.19: Break-up of Loan & Advances and Provisions thereon:

The Company has complied with the norms prescribed by the regulator for recognising Non-Performing Assets (NPA) in
preparation of accounts. As per the norms, NPAs are recognised on the basis of more than 90 days overdue. NPAs are to be
treated as Bad & Doubtful, if they remain outstanding for more than 15 months. The Company has made adequate provisions
on Non-Performing Assets and Standard Assets in respect of Housing and Non-Housing Loans as prescribed under directions
issued by the regulator.
Pursuant to the RBI circular dated November 12, 2021 “Prudential norms on Income Recognition, Asset Classification and
Provisioning pertaining to Advances - Clarifications”, the Company has implemented the requirements and aligned its definition
of default accordingly.
(J in crore)
Housing Non-Housing
Particulars As at As at As at As at
Standard Assets
b) Provision made 496.44 489.83 283.01 293.91
Sub-Standard Assets
a) Total Outstanding Amount 255.58 1,885.43 157.95 616.92
b) Provision made 72.95 467.79 25.98 252.93
Doubtful Assets - Category-I
a) Total Outstanding Amount 1,080.94 567.82 204.18 270.02
b) Provision made 264.15 228.37 54.34 108.43
Doubtful Assets - Category-II
b) Provision made 114.65 603.64 69.27 101.17
Doubtful Assets - Category-III
b) Provision made 25.02 4.37 20.19 4.96
Loss Assets
b) Provision made 2.33 0.30 4.51 3.24
TOTAL
b) Provision made 975.54 1,794.30 457.30 764.64

Note 36.20: Draw Down from Reserves: During the year there were no draw down from Reserves (Previous year H Nil).
Note 36.21: Concentration of Public Deposits

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total deposits of twenty largest depositors 2,070.75 2,217.83

Percentage of deposits of twenty largest depositors to total deposits 13.32% 14.77%
Note 36.22: Concentration of Loans & Advances

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total loans & advances to twenty largest borrowers 3,821.86 6,577.61

Percentage of loans & advances to twenty largest borrowers to total advances 6.44% 11.35%
Note 36.23: Concentration of all Exposure (including off-balance sheet exposure)

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total exposure to twenty largest borrowers /customers 3,950.27 7,123.01

Percentage of exposures to twenty largest borrowers / customers to total exposure of the HFC on 6.30% 11.52%
borrowers / customers
Note 36.24: Concentration of NPAs

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Total Exposure to top ten NPA accounts 944.06 2,716.53
Note 36.25: Sector-wise NPAs

(J in crore)
Percentage of NPAs to Total Advances
in that sector
As at As at
Particulars
March 31, 2023 March 31, 2022
A. Housing Loans: 3.85 8.39

2. Builders/Project Loans 24.22 36.97
B. Non-Housing Loans: 3.76 7.47
2. Builders/Project Loans - 37.87


Note 36.26: Movement of NPAs

(J in crore)
(I) Net NPAs to Net Advances (%) 2.76% 5.22%
(II) Movement of NPAs (Gross)
(III) Movement of Net NPAs
(IV) Movement of provisions for NPAs (excluding provisions on standard assets)
b) Provisions made during the year 237.06 948.71
c) Write-off/write-back of excess provisions 1,358.88 422.76
d) Closing balance 653.39 1,775.21
Note 36.27: As on March 31, 2023, the Company does not have any assets outside the country (Previous year H Nil).
Note 36.28: As on March 31, 2023, the Company does not have any Off-Balance Sheet SPVs sponsored which are required to
be consolidated as per accounting norms (Previous year Nil).
Note 36.29: (A) Disclosure of Complaints

Complaints received by the Company from its customers
a) No. of complaints pending at the beginning of the year 10 29
b) No. of complaints received during the year 1,804 2,281
c) No. of complaints disposed during the year 1,804 2,300
c) (i) Of which, no. of complaints rejected by the Company 168 129
d) No. of complaints pending at the end of the year 10 10
(B) Top five grounds of complaints received by the Company from customers:
Number of Number of
% increase/ decrease Number of Number of
complaints complaints
in the number of complaints complaints
Grounds of complaints, (i.e. complaints relating to) pending at the received
complaints received pending at the pending beyond
beginning of during the
over the previous year end of the year 30 days
the year year
Current Year
Ground - 1 Pre Closure Related - 374 34.00 2 -
Ground - 2 ROI Conversion/ Rate repricing - 145 (42.00) - -
Ground - 3 PMAY Application - 101 (54.00) - -
Ground - 4 Property Papers Related - 90 (27.00) - -
Ground - 5 Pre-EMI/EMI - 81 (2.00) - -
Ground - 6 Others 10 1,013 (22.00) 8
Total 10 1,804 (21.00) 10 -

Previous Year
Ground - 1 Pre Closure Related 1 280 (2.00) - -
Ground - 2 ROI Conversion/ Rate repricing 1 248 (43.00) - -
Ground - 3 PMAY Application 6 218 (19.00) - -
Ground - 4 Property Papers Related 3 123 (19.00) - -
Ground - 5 Preclosure Charges Related 1 121 133.00 - -
Ground - 6 Others 16 1,291 (19.00) 10 10
Total 28 2,281 (22.00) 10 10

Note 36.30: As on March 31, 2023, the Company has not granted any loans and has no outstanding loans against collateral
gold jewellery (Previous year H Nil).
Note 36.31: Deposit includes Public Deposits as defined in Paragraph 4.1.30 of RBI Directions, are secured by floating charge
on the Statutory Liquid Assets maintained in terms of sub-sections (1) & (2) of Section 29B of the National Housing Bank
Act, 1987. As on March 31, 2023, the public deposits (including accrued interest) outstanding amounts to H 15,545.96 crore
(Previous year H 15,019.95 crore).
The Company is carrying Statutory Liquid Assets amounting to H 2,276.42 crore (Previous year H 2,234.18 crore).
Note 36.32: As on March 31, 2023, the Company operates within India and does not have any joint venture or
overseas subsidiary.
Note 36.33: Liquidity Risk Management and Liquidity Coverage Ratio
(a) Liquidity Risk Management disclosures as at March 31, 2023:

(i) Funding Concentration based on significant counterparty (both deposits and borrowings)
(J in crore)
Number of Significant
As at Amount % of total deposits* % of total liabilities
Counterparties^
March 31, 2023 15 32,918 NA 58.94%
March 31, 2022 16 29,519 NA 52.85%
*Company does not have any depositor who would be eligible as significant counterparty
^Significant counterparty is as defined in RBI Circular RBI/2019-20/88 DOR.NBFC (PD) CC.No.102/03.10.001/2019-20 dated November 4, 2019 on
Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies. Funding concentration based on
significant counterparty has been computed using latest beneficiary position instead of original subscribers.
(ii) Top 20 large deposits

(J in crore)
As at As at
Particulars % of total deposits % of total deposits
March 31, 2023 March 31, 2022
Total deposits of top twenty largest 2,109 12.23% 2,761 15.64%

depositors
(iii) Top 10 borrowings
(J in crore)
As at As at
Particulars % of total liabilities % of total liabilities
March 31, 2023 March 31, 2022
Total exposure of top ten lenders 28,429 50.90% 25,653 45.93%
(iv) Funding Concentration based on significant instrument/product

(J in crore)
As at As at
Name of the instrument/product^^ % of total liabilities % of total liabilities
March 31, 2023 March 31, 2022
1) Secured Non-Convertible Debentures 3,994.09 7.15% 6,201.97 11.10%

2) Commercial Papers - - - -
3) Refinance Facility from NHB 3,046.20 5.45% 4,665.21 8.35%
4) Bank Facilities (Long Term + Short Term) 22,636.92 40.53% 17,052.85 30.53%
5) External Commercial Borrowings 5,491.58 9.83% 5,997.78 10.74%
6) Deposits 17,243.90 30.88% 17,648.97 31.60%
7) Subordinated Tier-II Non-Convertible 1,238.35 2.22% 1,438.18 2.58%
Debentures
Total Borrowings 53,651.04 96.06% 53,004.96 94.91%
Total Liabilities 55,852.39 55,848.76
^^Significant instrument/product is as defined in RBI Circular RBI/2019-20/88 DOR.NBFC (PD) CC.No.102/03.10.001/2019-20 dated November 4, 2019
on Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies.


(v) Stock ratios

(J in crore)
Particulars as a % of total as a % of total as a % of total as a % of total as a % of total as a % of total
public funds liabilities assets public funds liabilities assets
Commercial papers - - - - - -
Non-convertible Debentures NA NA NA NA NA NA
(original maturity of less than 1
year)
Other short term liabilities* 7.91% 7.60% 6.35% 6.89% 6.54% 5.56%
* Includes short term funds with original maturity of less than 1 year and includes funds from Refinance from NHB, Short Term Lines / OD / WCDL
(vi) Institutional set-up for liquidity risk management Management regularly reviews the position of cash and
cash equivalents by aligning the same with the projected
The Board of Directors of the Company has constituted
maturity of financial assets and financial liabilities, economic
the Asset Liability Management Committee (ALCO) and the
environment, liquidity position in the financial market,
Risk Management Committee. The Board has the overall
anticipated pipeline of future borrowing & future liabilities and
responsibility for management of liquidity risk. The Board
threshold of minimum liquidity defined in the ALM policy with
decides the strategy, policies and procedures to manage
additional liquidity buffers as management overlay.
liquidity risk in accordance with the liquidity risk tolerance/
limits approved by it. The Risk Management Committee
(b) Disclosure pursuant to Reserve
(RMC), which is a committee of the Board, is responsible for
Bank of India Circular DOR.FIN.HFC.
evaluating and monitoring the integrated risk management
CC.No.120/03.10.136/2020-21 dated February
system of the Company including liquidity risk. The ALCO
17, 2021 pertaining to Liquidity Risk Management
is responsible for ensuring adherence to the liquidity risk
Framework for Housing Finance Companies
tolerance/limits set out in the Board approved Asset Liability
Management (ALM) policy. The role of the ALCO with respect A. Qualitative Disclosure
to liquidity risk includes, inter alia, decision on desired
As per above circular, all deposit taking HFCs
maturity profile for assets & liabilities, responsibilities and
irrespective of their asset size, shall maintain a liquidity
controls for managing liquidity risk and overseeing the
buffer in terms of Liquidity Coverage Ratio (LCR) which
liquidity position of the Company. The ALM Policy is reviewed
will promote resilience of HFCs to potential liquidity
periodically to realign the same pursuant to any regulatory
disruptions by ensuring that they have sufficient High
changes/changes in the economic landscape or business
Quality Liquid Asset (HQLA) to survive any acute
needs and tabled to the Board for approval.
liquidity stress scenario lasting for 30 days. The timeline
on adhering to LCR guidelines are tabulated below.
Periods December 01, 2021 December 01, 2022 December 01, 2023 December 01, 2024 December 01, 2025
Minimum LCR (%) 50% 60% 70% 85% 100%
The objective of the LCR is to promote an environment month. To compute stressed cash outflow, all expected
wherein balance sheet carry a strong liquidity for and contracted cash outflows are considered by applying
short term cash flow requirements. To ensure strong a stress of 15%. Similarly, inflows for the Company is
liquidity NBFCs are required to maintain adequate pool arrived at by considering all expected and contracted
of unencumbered HQLA which can be easily converted inflows by applying a haircut of 25%.
into cash to meet their stressed liquidity needs for 30
The main drivers of LCR are:
calendar days. The LCR is expected to improve the
ability of financial sector to absorb the shocks arising Outflows comprises of:
from financial and/or economic stress, thus reducing the
a) All the contractual debt repayments and
risk of spill over from financial sector to real economy.
interest payments
The Liquidity Risk Management of the Company is
b) Expected operating expense based on FY 2021-22
managed by the ALCO under the governance of Board
approved Liquidity Risk Framework comprising of Asset c) Committed credit facilities contracted with
Liability Management policy, Contingency Funding Policy, customers for both sanctioned but partly disbursed
Funding Strategy and Resource Mobilization Policy, and cases and sanctioned but undisbursed cases based
Market Risk Management Policy. The LCR levels for the on historical experience and other expected or
balance sheet date is derived by arriving the stressed contracted cash outflows like expected pay-outs
expected cash inflow and outflow for the next calendar under contracted direct assignment deals.

The potential debt which may be recalled by the lenders computed by dividing the stock of HQLA by its total net
on account of covenant breach has not been considered cash outflows over one-month stress period.
since the Company has not experienced such debt recall
LCR guidelines are effective from December 01,
by any lender so far despite having breached covenants
2021. LCR has been calculated and monitored as per
in the past.
methodology prescribed in the RBI circular. LCR has
Inflows comprises of: been calculated as a simple average of the total number
of days in a quarter on daily basis. The Company is
a) Expected receipt (scheduled EMIs) from all
compliant with maintenance of stipulated LCR. Further,
performing loans
the Company has been monitoring the LCR at monthly
b) Liquid investment either in the form of short tenure intervals for the period of April 2022 to March 2023.
Fixed Deposits with banks or in units of Debt The maximum and minimum daily required HQLA for
Mutual Fund Schemes (like Overnight Liquid and regulatory compliance has been H 1,650.01 crore and
Money Market Schemes) which are unencumbered H 585.72 crore respectively for the period of April 22 to
and have not been considered as part of HQLA March 23.
c) Sanctioned and undrawn lines of credit from banks. The Company maintains diversified sources of funding
comprising short/long term loans from banks, Non-
For the purpose of HQLA the Company considers
Convertible Debentures (NCDs), External Commercial
unencumbered government securities and cash/bank
Borrowings (ECBs), Deposits, Refinance from National
balances with nil haircuts.
Housing Bank (NHB) and Commercial Papers (CPs).
The unencumbered government securities held as part The funding pattern is reviewed on monthly basis by
of HQLA are identified separately from the government the management and on quarterly basis by the ALM
securities which are lien marked in favour of Trustee for Committee and Risk Management Committee.
public deposits accepted by the Company. The LCR is
Funding profile of the Company is tabulated below:

Particulars
(J in crore) % (J in crore) %
Secured Non-Convertible Debentures 3,994.09 6.55% 6,201.97 9.99%

Refinance Facility from NHB 3,046.20 5.00% 4,665.21 7.51%
Bank Facilities (Long Term + Short Term) 22,636.92 37.11% 17,052.85 27.46%
External Commercial Borrowings 5,491.58 9.00% 5,997.78 9.66%
Deposits 17,243.90 28.27% 17,648.97 28.42%
Subordinated Tier-II Non-Convertible Debentures 1,238.35 2.03% 1,438.18 2.32%
Total (a) 53,651.04 53,004.96
Assignment of loans (b) 7,344.70 12.04% 9,088.02 14.64%
Total (a+b) 60,995.74 100.00% 62,092.98 100.00%
Derivative exposures and potential collateral calls: As on March 31, 2023 there is no outstanding margin
To hedge ECBs the Company enters into derivative but there could be potential future margin calls based on
transactions. All the derivatives of the Company are for MTM movements. However, the Company has received
hedging purpose and not for any speculative or trading MTM of H 22.33 crore (Previous year H Nil).
purpose. As on March 31, 2023, the notional amount of
Currency mismatch in LCR: There is no mismatch
outstanding derivatives is H 10,065.79 crore (Previous
required to be reported in LCR as on March 31, 2023
year H 10,288.45 crore) with net positive MTM of H
and March 31, 2022 since all the Foreign Currency
682.37 crore (Previous year H 242.25 crore). Further,
liabilities are reinstated to H as per the corresponding
the Company has executed bilateral Credit Support
derivative/ forward deals and closing RBI reference /
Agreement with one of its derivative counterparty.
FBIL exchange rates.


(J in crore)
Quarter ended March 2023 Quarter ended December 2022

Cash Outflows
Deposits 428.73 493.04 450.07 517.58
Unsecured wholesale funding 32.78 37.70 133.70 153.76
Secured wholesale funding 1,205.18 1,385.96 620.27 713.31
(ii) Outflows related to loss of funding on - - - -
debt products
Cash Inflows
Total HQLA 819.27 967.19
in J 500.47 in J 422.89
(J in crore)

Cash Outflows
Deposits 531.53 611.26 488.89 562.22
Unsecured wholesale funding - - 82.42 94.78

(J in crore)

debt products
Cash Inflows
Total HQLA 978.79 998.92
in J 467.74 in J 441.41
(J in crore)

Total High Quality Liquid Assets (HQLA) 1,146.99 1,146.99 1,131.74 1,131.74
(ii) Government securities 1,038.32 1,038.32 1,041.29 1,041.29
Cash Outflows
Deposits 526.95 605.99 385.94 443.83
Unsecured wholesale funding 144.44 166.11 - -
(i) Outflows related to derivative exposures and other - - - -
debt products
Cash Inflows


(J in crore)

Total HQLA 1,146.99 1,131.74
Total Net Cash Outflows 1,031.09 1,339.30
in J 515.55 in J 669.65
* Since LCR has been made applicable for HFCs from December 01, 2021.
**Unweighted values are calculated as outstanding balances maturing or callable within 30 days (for inflows and
outflows).
#Weighted values are calculated after the application of respective haircuts (for HQLA) and stress factors on inflow

and outflow.
Note 36.34: Disclosure as per Annexure III of RBI directions:

(J in crore)
Amount Amount
Particulars
outstanding overdue
S.No Liabilities side
1 Loans and advances availed by the HFC inclusive of interest accrued thereon but not paid:
(a) Debentures : Secured 4,098.77 -
: Unsecured 1,239.44 -
(other than falling within the meaning of public deposits)
(b) Deferred Credits - -
(c) Term Loans 31,331.38 -
(d) Inter-corporate loans and borrowing 1,701.66 -
(e) Commercial Paper - -
(f) Public Deposits 15,545.96 -
(g) Other Loans (specify nature) - -
2 Break-up of (1)(f) above (Outstanding public deposits inclusive of interest accrued thereon but
not paid):
(a) In the form of Unsecured debentures - -
(b) In the form of partly secured debentures i.e. debentures where there is a shortfall in the value - -
of security
(c) Other public deposits 15,545.96 -
(J in crore)
Amount
Assets side
outstanding
3 Break-up of Loans and Advances including bills receivables [other than those included in (4) below]:
(a) Secured 59,341.37
(b) Unsecured -
4 Break up of Leased Assets and stock on hire and other assets counting towards asset financing activities
(i) Lease assets including lease rentals under sundry debtors
(a) Financial lease -
(b) Operating lease -
(ii) Stock on hire including hire charges under sundry debtors
(a) Assets on hire -
(b) Repossessed Assets -

(J in crore)
Amount
Assets side
outstanding
(iii) Other loans counting towards asset financing activities
(a) Loans where assets have been repossessed (net of provision) -
(b) Loans other than (a) above -
5 Break-up of Investments
Current Investments
1. Quoted
(i) Shares
(a) Equity -
(b) Preference -
(ii) Debentures and Bonds 457.67
(iv) Government Securities 413.18
(v) Others -
2. Unquoted
Shares
(a) Equity -
(b) Preference -
(iii) Units of mutual funds
Long Term Investments
1. Quoted
(i) Shares
(a) Equity -
(b) Preference -
(iv) Government Securities 2,276.42
2. Unquoted
Shares
(a) Equity 0.30
(b) Preference -
(v) Others (Security receipt in ACRE Trust) 40.45


6 Borrower group-wise classification of assets financed as in (3) and (4) above:

(J in crore)
Amount net of provisions
Category
Secured Unsecured Total
1. Related Parties
(a) Subsidiaries - - -
(b) Companies in the same group - - -
(c) Other related parties - - -
2. Other than related parties 57,908.53 - 57,908.53
Total 57,908.53 - 57,908.53
7 Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and
unquoted):
(J in crore)
Market Value /
Total Book Value
Category Break up or fair
(net of provisions)
value or NAV
1. Related Parties
(a) Subsidiaries* 130.12 0.30
(b) Companies in the same group - -
(c) Other related parties - -
2. Other than related parties 3,275.17 3,187.72
Total 3,405.29 3,188.02
8 Other information
(J in crore)
Particulars Amount
1. Gross Non-Performing Assets
2. Net Non-Performing Assets
Assets acquired in satisfaction of debt -
* Equity capital contributed by the Company has been considered as break up value for subsidiary formed under section 8 of the Company Act 2013 as
the subsidiary is prohibited to give any right over its profits to any of its members.
Note 36.35: Breach of covenant of loans availed and debt securities issued
(J in crore)
Status as on Status as on
Loans/debt securities Current Year Previous Year Breach of Covenant Details
March 31, 2023 March 31, 2022
External 246.61 614.04 Breach of NPA % Waived off Breach Waiver received till
Commercial March 31, 2023;
Borrowings - Asian Loan matures in
Development Bank June 2023
External 1,655.72 1,516.14 Breach of NPA % No Breach Breach The NPA financial
Commercial covenant parameter
Borrowings - SBI was reset and
London waiver was
received upto
December 31, 2022.
External 592.07 568.55 Breach of NPA % No Breach Breach The NPA financial
Borrowings - JICA was reset and
waiver was
received upto June
30, 2022.

(J in crore)
Status as on Status as on
Loans/debt securities Current Year Previous Year Breach of Covenant Details
March 31, 2023 March 31, 2022
External 789.42 758.07 Breach of NPA % No Breach Breach The NPA financial
Borrowings - PNB was reset and
Dubai waiver was
received upto June
30, 2022.
External 1,302.54 1,250.82 Breach of NPA % No Breach Breach The NPA financial
Borrowings - PNB was reset and
Hong Kong waiver was
received upto June
30, 2022.
External - 556.91 Breach of NPA % - Breach The NPA financial
Borrowings was reset as on
- Sumitomo March 31, 2022.
Mitsui Banking
Corporation
Citi Bank-Term - 23.00 Breach of NPA % - - Loan matured
Loan during Q4 FY 22
Bank of Baroda- - 1,776.76 Breach of NPA % - Breach The NPA financial
Term Loan covenant parameter
was reset in fresh
sanction received in
Oct 2021.
Indian Bank-Term 1,275.00 1,187.48 Breach of NPA % No Breach Breach Covenant was
Loan waived off in fresh
sanction received in
September 2022
NCD-Karnataka 50.00 50.00 Breach of NPA % No Breach Breach Waiver was
Bank received upto
March 31, 2023
NCD-SBI DFHI 30.00 30.00 Breach of NPA % No Breach Breach Waiver was
received upto
March 31, 2023
NCD-Reliance 50.00 50.00 Breach of NPA % No Breach Breach Waiver was
General Insurance received upto
March 31, 2023
NCD-IDBI Bank 250.00 250.00 Breach of NPA % No Breach Breach Waiver was
received upto
March 31, 2023
NCD-UCO Bank 75.00 75.00 Breach of NPA % No Breach Breach Waiver was
received upto
March 31, 2023
ISDA-IndusInd Bank 124.00 114.00 Breach of NPA % Waived off Breach The NPA financial
(Interest Rate covenant parameter
Swap) was reset and
waiver was
received upto
March 31, 2023.
ISDA-IndusInd Bank 124.00 114.00 Breach of NPA % Waived off Breach The NPA financial
(Principal Only covenant parameter
Swap) was reset and
waiver was
received upto
March 31, 2023.


Note 36.36: RBI vide its circular number RBI/2020-21/60/DOR.NBFC (HFC) CC.NO 118/03.10.136/2020-21 dated October 22,
2020 defined the principal business criteria for HFCs. Further, it also states that those HFCs which does not fulfil the defined
criteria as on October 22, 2020 has an option to submit a board approved plan including a roadmap to fulfil the defined criteria
and timeline for transition to RBI with in three months from the date of circular.
In compliance with the above circular, the Company has submitted board approved plan along with roadmap to fulfil the defined
criteria and timeline for transition to RBI on January 21, 2021.
Details of principal business criteria as follows:

% of total assets towards % of total assets towards % of total assets towards % of total assets towards
housing finance housing finance for individuals housing finance housing finance for individuals
64.91% 59.21% 63.54% 53.62%
Note 36.37: In compliance with RBI notification number RBI/DNBS/2016-17/49/Master Direction DNBS. PPD.01/66.15.001/2016‑17
dated September 29, 2016, during the year the Company has reported eight fraud cases in relation to loans advanced to the
borrowers amounting to H 5.44 crore to NHB (Previous year H 4.04 crore in relation to four fraud cases for loans advanced to the
borrowers and one fraud case in relation to deposits).
Note 36.38: In compliance with RBI circular number RBI/2019-20/170/DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated
March 13, 2020, the comparison between provisions required under IRACP and impairment allowances made under Ind AS 109
is tabulated below:
(J in crore)
Difference
Loss Allowances Provisions
Asset Gross Carrying Net between Ind AS
(Provisions) as required as
classification as Amount as per Carrying 109 provisions
Asset Classification as per RBI Norms (1) required under per IRACP
per Ind AS 109 Ind AS 109 Amount and IRACP
Ind AS 109 norms
(2) (3) (5)=(3)-(4) norms
(4) (6)
(7) = (4)-(6)
Performing Assets
Standard Stage 1 55,064.88 524.82 54,540.06 180.94 343.88
Stage 2 2,005.13 254.63 1,750.50 6.95 247.68
Subtotal 57,070.01 779.45 56,290.56 187.89 591.56
Non-Performing Assets (NPA)
Substandard Stage 3 413.53 98.93 314.60 59.88 39.05
Doubtful - up to 1 year Stage 3 1,285.12 318.49 966.63 301.69 16.80
1 to 3 years Stage 3 477.39 183.92 293.47 184.13 (0.21)
More than 3 years Stage 3 88.48 45.21 43.27 68.95 (23.74)
Subtotal for doubtful 1,850.99 547.62 1,303.37 554.77 (7.15)
Loss Stage 3 6.84 6.84 - 5.40 1.44
Subtotal for NPA 2,271.36 653.39 1,617.97 620.05 33.34
Other items such as guarantees, loan Stage 1 757.04 2.40 754.64 - 2.40
commitments, etc. which are in the scope Stage 2 - - - - -
of Ind AS 109 but not covered under current
Income Recognition, Asset Classification and Stage 3 - - - - -
Provisioning (IRACP) norms
Subtotal 757.04 2.40 754.64 - 2.40
Total Stage 1 55,821.92 527.22 55,294.70 180.94 346.28
Stage 2 2,005.13 254.63 1,750.50 6.95 247.68
Stage 3 2,271.36 653.39 1,617.97 620.05 33.34
Total 60,098.41 1,435.24 58,663.17 807.94 627.30

Note 36.39: In compliance with RBI circular number RBI/2020-21/16/DOR.No.BP.BC/3/21.04.048/2020-21 dated August 06,
2020, the disclosure in relation to resolution plan implemented under the Resolution Framework for COVID-19-related stress is
tabulated below:
For half-year ended March 31, 2023

(J in crore)
Exposure to
Of (A), Of (A) amount accounts classified
classified as Standard Of (A)
aggregate debt paid as Standard
consequent to amount
that slipped by the consequent to
Type of Borrower implementation of written off
into NPA borrowers implementation of
resolution plan – Position during
during the during the half resolution plan –
as at the end of the the half-year
half-year year Position as at the
previous half-year (A) ($)
end of this half-year (@)
Personal Loans* 1,909.40 86.52 11.11 160.04 1,738.25
Corporate persons
of which, MSMEs
Others^ 237.79 - - 132.01 105.78
Total 2,147.19 86.52 11.11 292.05 1,844.03
* Retail loans
$ Principal outstanding as on September 30, 2022.
@ Principal outstanding (including capitalised interest) for live restructured accounts as on March 31, 2023.
For half-year ended September 30, 2022

(J in crore)
classified as Standard Of (A), Exposure to accounts
Of (A) amount Of (A) amount
consequent to aggregate debt classified as Standard
written off paid by the
Type of Borrower implementation of resolution that slipped into consequent to implementation
during the borrowers during
plan – Position as at the end NPA during the of resolution plan – Position as
half-year the half year
of the previous half-year half-year at the end of this half-year (@)
(A) ($)
Personal Loans* 2,088.20 389.51 - 38.71 1,909.40
Corporate persons
of which, MSMEs
Others^ 331.89 6.30 - 81.74 237.79
Total 2,420.09 395.81 - 120.45 2,147.19
* Retail loans
$ Principal outstanding as on March 31, 2022.
@ Principal outstanding (including capitalised interest) for live restructured accounts as on September 30,2022.
NOTE 37: LEASES

The Ministry of Corporate affairs vide notification number G.S.R. 463(E) dated July 24, 2020 has issued Companies (Indian
Accounting Standards) Amendment Rules, 2020 which was further amended vide notification number G.S.R 419 (E) dated June
18, 2021. As per the amendment rules the Company has an option to apply practical expedients of paragraph 46A of Ind AS 116.
The Company had elected to use the practical expedient of paragraph 46A to not to assess whether a rent concession that
meets the conditions of paragraph 46B is a lease modification and account for any change in lease payments resulting from the
rent concession as if the change were not a lease modification. During the previous year the Company had applied the practical
expedients to all rent concessions that meet the conditions specified in paragraph 46B of Ind AS 116.
The Company has recognised H Nil (Previous Year H 0.02) as other income for the year ended March 31, 2023 on account of
applicability of the above practical expedients.


(i) Movement of lease liability

(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Lease liability as at the beginning of the year 70.22 86.50

Additions (b) 34.71 8.87
Accretion of interest (c) 6.18 6.52
Payments (d) 33.52 31.67
Modification (e) 2.84 0.00
Lease liability as at the end of the year (a+b+c-d-e) 74.75 70.22
(ii) Maturity analysis of minimum undiscounted lease payments after the reporting period:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022

Total 91.34 89.70
(iii) Maturity analysis of minimum discounted lease payments after the reporting period:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022

Total 74.75 70.22
(iv) There are no gains or losses from sales and leaseback b) The Company has outstanding External Commercial
for the year ended March 31, 2023 and March 31, 2022. Borrowing (ECB) principal of USD 670.00 million
(equivalent to H 5,508.53 crore) (March 31, 2022, USD
(v) There are no variable lease payments for the year ended
796.00 million (equivalent to H 6,034.25 crore), which
March 31, 2023 and March 31, 2022.
is directly linked or affected by the abovementioned
two benchmarks. (USD 495.00 million – 3month USD
NOTE 38: DISCLOSURE ON TEMPORARY
LIBOR and remaining USD 175.00 million – 6 month USD
EXCEPTIONS FROM APPLYING SPECIFIC HEDGE
LIBOR) (March 31, 2022, USD 546.00 million – 3month
ACCOUNTING REQUIREMENTS AS PER IND AS 109
USD LIBOR and remaining USD 250.00 million – 6
The Ministry of Corporate affairs vide notification number month USD LIBOR).
G.S.R. 463(E) dated July 24, 2020 has issued Companies
(Indian Accounting Standards) Amendment Rules, 2020. c) USD 3 month & 6 Month LIBOR will cease to exist from
As per the amendment rules the Company has an option to June 30, 2023 and outstanding principal exposure
apply the exceptions set out in paragraphs 6.8.4-6.8.12 of Ind as on that date will be USD 640.00 million (March 31,
AS 109. 2022 USD 640.00 million) for which the Company will
discuss and negotiate the alternative reference rate
The Company has elected to apply the exceptions as specified with the respective lenders to incorporate or align the
above. Disclosure with respect to paragraph 24H of Ind same in the corresponding hedging/derivative deals. The
AS 107 in relation to uncertainty arising from interest rate Company will do bilateral negotiation or sign the ISDA
benchmark reforms is as follows: fall back protocol as the case may be with each of the
a) The Company has foreign currency borrowings in derivative counterparties.
USD only and the interest rate benchmarks where the d) The outstanding borrowings are long term in nature
Company’s hedging relationship is related are 3 month and the Company hasn’t yet received any specific
and 6 month USD LIBOR. communication from any of its lenders regarding the
timelines to change to an alternate reference/benchmark
rate. However, as soon as the Company receives any

communication or instruction from any of its lenders NOTE 41: DISCLOSURE IN RESPECT OF EMPLOYEE
regarding the transition to an alternate reference rate BENEFITS:
other than the LIBOR, the Company will immediately take In accordance with Indian Accounting Standards on
it up with the corresponding hedging counterparty/ies “Employee Benefits” (Ind AS 19), the following disclosure
to effect the transition in the hedging/derivative deals have been made:
also. However, this may result in higher pay out for the
Company in the form of excess interest or hedging cost Defined Contribution Plans:
of the underlying borrowing for its remaining tenure.
Note 41.1: The Company makes contributions towards
e) The nominal amount of hedging instruments for provident fund to a defined contribution retirement benefit
outstanding principal as on March 31, 2023 is USD plan for qualifying employees. Under the plan, the Company
670.00 million (March 31, 2022 is USD 796.00 million). is required to contribute a specified percentage of payroll
cost to the retirement benefit plan to fund the benefits. The
NOTE 39: SEGMENT REPORTING: contribution has been recognised in the Statement of Profit
Company’s main business is to provide loans against/for and Loss which are included under “Contribution to Provident
purchase, construction, repairs & renovations of Houses/ Fund and Other Funds” in Note 31.
Flats/Commercial Properties etc. All other activities of (J in crore)
the Company revolve around the main business. As such, Particulars Current Year Previous Year
there are no separate reportable segment, as per the Contribution to Provident 15.24 12.96
Operating Segments (Ind AS 108), notified by the Companies Fund and Other Funds
(Accounting Standard) Rules, 2015. The Company operates
within India and does not have operations in economic Note 41.2: Defined Benefit Plans
environments with different risks and returns, hence it is
The Company has a defined benefit gratuity plan. Every
considered operating in single geographical segment.
employee is entitled to gratuity as per the provisions of the
The Company is not reliant on revenues from transactions
Payment of Gratuity Act, 1972. The scheme is funded and the
with any single external customer and does not receive 10%
same is managed by Life Insurance Corporation of India and
or more of its revenues from transactions with any single
Kotak Mahindra Life Insurance Company Limited. The liability
external customer.
of Gratuity is recognised on the basis of actuarial valuation.
NOTE 40: CONTINGENT LIABILITIES AND The most recent actuarial valuation of plan assets and the
COMMITMENTS present value of the defined benefit obligation for gratuity
i) Contingent liabilities in respect of Income-tax of H 87.08 were carried out as at March 31, 2023. The present value
crore (Previous year H 20.74 crore) is disputed and are of the defined benefit obligations and the related current
under appeals. These includes contingent liability of H service cost and past service cost, were measured using the
1.96 crore (Previous year H 1.84 crore) with respect to Projected Unit Credit Method.
Income-tax which have been decided by the CIT(A) in
Company’s favour. However, Income-tax Department has Risks associated with defined benefit plan
filed appeal with Delhi High Court. The Company expects Interest rate risk: A fall in the discount rate, which is linked
the demands to be set aside by the Delhi High Court, to the Government Securities rate, will increases the present
hence no additional provision is considered necessary. value of the liability requiring higher provision. A fall in the
discount rate generally increases the mark to market value of
ii) Estimated amount of contracts remaining to be executed
the assets depending on the duration of asset.
on capital account and not provided for (net of advances)
is H 21.51 crore (Previous year H 7.60 crore). Salary Risk: The present value of the defined benefit plan
liability is calculated by reference to the future salary of
iii) Claims against the Company not acknowledged as debt
members. As such, an increase in the salary of the members
is H 0.43 crore (Previous year H 0.29 crore)
more than assumed level may increase the plan’s liability.
iv) Company had issued corporate financial guarantee
Mortality risk: Since the benefits under the plan is not
amounting to H 0.25 crore (Previous year H 0.25 crore)
payable for life time and payable till retirement age only, plan
to “UNIQUE IDENTIFICATION AUTHORITY OF INDIA
does not have any longevity risk.
(UIDAI)” against the Aadhar Authentication Services.


GRATUITY LIABILITY
Change in present value of obligation

(J in crore)
Present value of obligation as at the beginning of the year 15.41 14.65
Current service cost 3.21 3.05
Past service cost including curtailment gains / losses 0.01 0.60
Actuarial (gain) / loss on obligation (0.52) (1.34)
Present value of obligation as at the end of year 15.95 15.41
Change in fair value of plan assets*

(J in crore)
Fair Value of plan assets as at the beginning of the year 16.40 16.54
Actual return on plan assets 0.95 1.08
Opening difference (0.95) -
Fund charges (0.09) -
Contributions 3.14 1.33
Fair Value of plan assets as at the end of year 16.23 16.40
Funded status 1.24 1.76
Unfunded status (0.96) (0.77)
Expense recognised in the statement of Profit and Loss

(J in crore)
Service cost 3.22 3.65
Expected return on plan assets (1.13) (1.08)
Expenses recognised in the statement of profit and loss 3.15 3.56
Remeasurement (loss)/gain in Other Comprehensive Income (OCI) (0.70) 1.34
Expected contribution for the next financial year is H 4.51 crore.
Assumptions
a) Discounting rate 7.36%-7.39% 6.80%-7.26%
b) Future salary increase 3.00%-7.00% 3.00%-7.00%
c) Retirement age (Years) 58-60 years 58-60 years
d) Mortality table IALM (2012-14) IALM (2012-14)

Maturity profile of defined benefits obligation

(J in crore)
With in the next 12 months 1.53 1.29
Above 1 year and upto 5 years 4.71 4.87
Above 5 year 9.71 9.25
Sensitivity analysis of the defined benefit obligation**

Current Year
Particulars
Previous Year
Particulars
*100% of the plan assets are managed by the insurer for current as well as previous year for employees on the Company payroll. However, for
contractual employees there are no plan assets.
**Sensitivities due to mortality and withdrawals are not material and hence impact of change due to these are not calculated. Sensitivities as to rate
of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are not applicable being a lump
sum benefit on retirement.
NOTE 42: EXPENDITURE IN FOREIGN CURRENCY:

(J in crore)
Interest expense 229.63 88.44
Other expenses 6.17 1.47
NOTE 43: DERIVATIVE FINANCIAL ASSETS / LIABILITIES

Derivative financial assets subject to offsetting, netting arrangements
(J in crore)
Derivative
assets not Total Maximum
Offsetting recognised on the balance sheet subject derivative exposure to
balance sheet
to netting assets risk
arrangements
Particulars
assets assets after Assets
assets before derivative liabilities received balance of netting
offset liabilities sheet potential
Derivative assets A B C = (A+B) D E F = (C+D+ E) G H = (C+G) I = (H+D+E)
At 31 March, 2023* 721.04 (61.00) 660.04 - - 660.04 - 660.04 660.04
At 31 March, 2022 332.88 (90.63) 242.25 - - 242.25 - 242.25 242.25
Derivative financial liabilities subject to offsetting, netting arrangements


(J in crore)
Derivative
liabilities Total Maximum
Offsetting recognised on the balance sheet not subject derivative exposure to
balance sheet
to netting liabilities risk
arrangements
Particulars
liabilities liabilities after liabilities
liabilities derivative Assets given balance of netting
before offset assets sheet potential
Derivative liabilities A B C = (A+B) D E F = (C+D+E) G H = (C+G) I = (H+D+E)
At 31 March, 2023* (61.00) 61.00 - - - - - - -
At 31 March, 2022 (90.63) 90.63 - - - - - - -
NOTE 44: Additional information, as required under Schedule III to the Companies Act 2013, of enterprise consolidated as
Subsidiary/Associates/Joint Ventures:
(J in crore)
Net Asset Share in other comprehensive Share in total comprehensive
Share in profit or (loss)
(Total assets - Total liabilities) income income
As % of As % of
As % of As % of consolidated consolidated
Name of the entity Amount Amount Amount Amount
consolidated consolidated other total
(J in crore) (J in crore) (J in crore) (J in crore)
net asset profit or (loss) comprehensive comprehensive
income income
March 31, 2023 March 31, 2023 March 31, 2023 March 31, 2023 March 31, 2023 March 31, 2023 March 31, 2023 March 31, 2023
Parent
PNB Housing Finance Limited 99.44 10,952.57 100.98 1,056.27 99.40 76.60 100.87 1,132.87
Indian subsidiary
PHFL Home Loans and 1.18 130.46 1.33 13.94 0.60 0.46 1.28 14.40
Services Limited
Inter-Company elimination (0.62) (69.17) (2.31) (24.21) - - (2.16) (24.21)
and other consolidated
adjustments
Non controlling interest in - - - - - - - -
subsidiaries
Total 100.00 11,013.86 100.00 1,046.00 100.00 77.06 100.00 1,123.06
(J in crore)
Net Asset Share in other comprehensive Share in total comprehensive
Share in profit or (loss)
(Total assets - Total liabilities) income income
As % of As % of
As % of As % of consolidated consolidated
Name of the entity Amount Amount Amount Amount
consolidated consolidated other total
(J in crore) (J in crore) (J in crore) (J in crore)
net asset profit or (loss) comprehensive comprehensive
income income
March 31, 2022 March 31, 2022 March 31, 2022 March 31, 2022 March 31, 2022 March 31, 2022 March 31, 2022 March 31, 2022
Parent
PNB Housing Finance Limited 99.28 9,800.54 98.26 821.92 99.30 96.62 98.37 918.54
Indian subsidiary
PHFL Home Loans and 1.18 116.06 2.16 18.08 0.70 0.68 2.01 18.76
Services Limited
Inter-Company elimination (0.46) (44.97) (0.42) (3.52) - - (0.38) (3.52)
and other consolidated
adjustments
Non controlling interest in - - - - - - - -
subsidiaries
Total 100.00 9,871.63 100.00 836.48 100.00 97.30 100.00 933.78
Note 44.1: Pehel foundation being the subsidiary of the Company is a charitable organisation under Section 8 of the Companies
Act, 2013 and it is prohibited to give any right over its profits to any of its members. Since PNBHFL does not have any right over
any kind of returns from Pehel Foundation hence it does not meet the criteria of consolidation of financial statements laid down
under Ind AS 110.

NOTE 45: CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES

(J in crore)
Borrowings from bank 27,715.84 3,112.56 336.45 9.85 31,174.70
Deposits (net) 17,648.98 (408.68) - 3.88 17,244.18
(J in crore)
Borrowings from bank 29,746.34 (2,229.10) 172.20 26.40 27,715.84
Deposits (net) 16,746.04 901.39 - 1.55 17,648.98
Commercial paper 1,104.98 (1,125.00) - 20.02 -
Note 45.1: The borrowings has been utilised for the purpose for which it has been taken from banks and financial institutions.
Note 45.2: The borrowings which has been repaid during the year whereby satisfaction is yet to be filed with Registrar of
Companies (ROC):
Lender Name Amount (J in crore) Location of registar Reason for delay

Punjab & Sind Bank 250.00 ROC- Delhi Awaiting NOC from the lender
Sumitomo Mitsui Banking Corporation 601.41 ROC- Delhi Awaiting NOC from the lender
Further, there are some old borrowings which have been fully repaid in past (other than tabled above) for which the Company
is compiling the details in relation to which satisfaction is yet to be filed with Registrar of Companies.
Note 45.3: Quarterly returns/statements of current assets filed with banks or financial institutions against the underlying
borrowings are in agreement with the books of accounts (principal outstanding).
NOTE 46: MATURITY ANALYSIS OF ASSETS AND LIABILITIES

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered
or settled. However with regard to loans and advances to customers and borrowing of the Company has used the
contractual maturities for recovery/settlement. Borrowings (including debt securities and deposits) are reflected basis the
contractual maturities.
(J in crore)
Total Total
ASSETS
Financial assets
Cash and cash equivalents 3,677.82 - 3,677.82 5,065.62 - 5,065.62
Bank balance other than cash and cash 118.38 - 118.38 150.47 - 150.47
equivalents
Derivative financial instruments 524.63 135.41 660.04 38.23 204.02 242.25
Trade receivables 12.87 - 12.87 42.80 - 42.80
Loans 3,321.56 54,518.23 57,839.79 4,576.90 50,759.04 55,335.94
Investments 1,454.80 1,741.49 3,196.29 931.86 2,550.84 3,482.70
Other financial assets 166.77 587.87 754.64 125.30 548.61 673.91
Total (a) 9,276.83 56,983.00 66,259.83 10,931.18 54,062.51 64,993.69
Current tax assets (net) - 264.03 264.03 - 47.30 47.30
Deferred tax assets (net) - 145.67 145.67 - 398.90 398.90
Investment property - 0.52 0.52 - 0.53 0.53


(J in crore)
Total Total
Property, plant and equipment - 66.19 66.19 - 71.38 71.38

Right of use assets - 65.59 65.59 - 60.47 60.47
Capital work-in-progress - 0.08 0.08 - - -
Intangible assets under development - 3.08 3.08 - 3.54 3.54
Other Intangible assets - 14.01 14.01 - 18.02 18.02
Other non-financial assets 51.18 3.52 54.70 24.78 2.17 26.95
Assets held for sale - - - 108.83 - 108.83
Total (b) 51.18 562.69 613.87 133.61 602.31 735.92
Total asset c = (a+b) 9,328.01 57,545.69 66,873.70 11,064.79 54,664.82 65,729.61
LIABILITIES
Trade Payables 30.25 - 30.25 16.29 - 16.29
Debt Securities 900.00 3,094.09 3,994.09 2,359.91 3,842.06 6,201.97
Deposits 5,138.66 12,075.58 17,214.24 5,796.65 11,808.49 17,605.14
Total (d) 23,232.90 32,381.88 55,614.78 21,638.60 33,903.45 55,542.05
Provisions 2.63 15.09 17.72 2.58 14.75 17.33
Other Non-financial liabilities 210.09 17.25 227.34 277.59 21.01 298.60
Total (e) 212.72 32.34 245.06 280.17 35.76 315.93
Total liabilities f = (d+e) 23,445.62 32,414.22 55,859.84 21,918.77 33,939.21 55,857.98
Net (c-f) 11,013.86 9,871.63
NOTE 47: RISK MANAGEMENT Note 47.1: Credit Risk

The Company has formulated a comprehensive enterprise The Company’s asset base comprises of retail loans and
risk management policy to take care of major risks, such corporate loans.
as credit risk, market risk, liquidity risk. The Company has
Retail loans mainly focusses on financing of acquisition or
an integrated risk management policy (IRM) in place, which
construction of houses that includes repair, upgradation,
communicates the risk management strategy, framework,
and development of plot of land. In retail loans category, the
and risk processes across the organisation, and has been
Company also provides loan against properties and loans for
approved by the Board. The risk management framework
purchase & construction of non-residential premises.
broadly includes governance, risk appetite approach,
risk-specific guidelines, risk measurement, mitigation, Corporate finance loans are given mainly to developers
monitoring reporting, and key risk indicators (KRIs). The for financing the construction of residential / commercial
Company has developed a clearly articulated risk appetite properties, i.e. construction finance loans, and for general
statement, functional policies, and KRIs to explicitly define corporate purpose loans. i.e. corporate term loans and lease
the level and nature of risk that an organisation willing to rental discounting loans.
take in order to pursue the articulated mission on behalf
Being in the lending domain, credit risk is one of the major
of various stakeholders. The Board has delegated the
risks in the business model of the Company. Credit risk
responsibility of risk management to its risk management
stems from outright default due to inability or unwillingness
committee (RMC), which reviews the efficacy of our risk
of a customer or counterparty to meet the contractual
management framework, provides important oversight,
commitments. The essence of credit risk management
and assesses whether it is consistent with the risk
in the Company pivots around the early assessment of
tolerance levels laid down. The RMC gives directions to
stress, both at a portfolio and account level, and taking
executive risk management committee (ERMC), comprising
appropriate measures.
senior management.

Credit Risk Management The Company has clear segregation of duties between
Credit risk of the Company is managed through a robust transaction originators in the business function and
Credit Risk Management set-up at various levels. Given approvers in the credit risk function. Spoc or branch act
the pervasiveness of credit risk in the Company’s line as the primary point of sale, undertake loan originations,
of business, the Board and the senior management collection, deposit sourcing and customer service.
consider credit risk management to be an integral part Hubs perform functions, such as loan processing, credit
of the organisational strategy. The Board has constituted appraisal and monitoring through subject matter experts
a Risk Management Committee (RMC) that owns the risk comprising team of underwriters, fraud control unit,
management framework. The RMC oversees the Risk legal counsels, and technical evaluators.
Management practices and gives direction to the Executive The credit sanction is done through a well-defined
Risk Management Committee (ERMC), comprising of the MD delegation matrix under four eye principle. All functions
and CEO along with functional heads, in implementing the are subject to audit, undertaken by an independent team
risk management framework and policy. The policies and directly reporting to the Board.
procedures have been drafted in close consultation with Hubs and Spocs are supported by Central Support
process owners, ERMC and RMC. Office (CSO), Centralised Operations (COPS) and Central
The risk management function is led by the Chief Risk Officer Processing Centre (CPC).
who is independent and has direct access to the RMC.
3) Maintains an appropriate credit administration,
The Company’s Risk Framework for credit risk management measurement, and monitoring process
is mentioned below: Policies and procedures have been developed for
identifying, measuring, monitoring and mitigating credit
1) Established an appropriate credit risk environment risk. Portfolio monitoring allows a proactive approach
The Company has developed credit risk strategy which to identify, at an early stage, credit quality deterioration.
reflects its risk tolerance and level of profitability A system of independent, periodical reviews of
it expects to achieve. The execution of strategy is the Company’s credit risk management process
done through policies, guidelines and processes is established and the results of such reviews are
supervised by team of experienced professionals in the communicated across the levels for corrective actions
mortgage business. as applicable. The excepted credit loss on financial
instruments has been presented in respective note.
2) Ensure sound credit approval process Adequate controls are in place to ensure that the credit
The Company’s Target Operating Model (TOM) comprises approval function is being properly managed and that
Hub and Spoc structure, advanced technology platform, credit exposures are within levels consistent with
experienced and specialized professionals and mark prudential standards and internal limits.
to market policies and products. The Company’s TOM
allows to manage various type of risks in a better Note 47.2: Derivative Financial Instruments
manner which in turn helps building a robust portfolio. Credit risk arising from derivative financial instruments
is, at any time, limited to those with positive fair values, as
recorded on the balance sheet.
Note 47.3: Analysis of risk concentration

(i) Risk concentrations on loans
An analysis of the Company’s credit risk concentrations per product / sub product is provided in the below mentioned table:
(J in crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Concentration by sector - Retail
Housing loans 39,385.54 35,033.09
Non housing loans 16,085.48 15,486.58
Total (a) 55,471.02 50,519.67
Concentration by sector - Corporate
Construction finance 3,492.64 6,088.92
Corporate term loan 273.25 941.82
Lease rental discounting 35.72 344.47
Total (b) 3,801.61 7,375.21
Total (a+b) 59,272.63 57,894.88


(ii) Risk concentrations on financial assets other than loans

(J in crore)
Particulars Government Financial Services Corporate Others Total
equivalents
Trade receivables - - 12.87 - 12.87
Investments 2,517.06 8.52 630.26 40.45 3,196.29
Total 2,526.10 5,189.82 648.29 55.83 8,420.04
equivalents
Trade receivables - - 42.77 0.03 42.80
Investments 3,075.46 110.95 296.29 - 3,482.70
Total 3,082.90 6,214.02 344.50 16.33 9,657.75
Note 47.4: Market Risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market
variables such as interest rates, foreign exchange rates and equity prices. The Company monitors such changes and presents
to the management on a regular basis. It undertakes scenario analysis as well as other techniques like earnings at risk to
quantify the expected impact upon the change of market variables. The Board approved investment policy defines the overall
exposure limits and specific limits pertaining to the exposure to a particular entity /counterparty as well as type of securities.
Note 47.4.1 Total market risk exposure

(J in crore)
As at As at
March 31, 2023 March 31, 2022 Primary risk
Particular
sensitivity
Carrying amount
ASSETS
Financial assets
Cash and cash equivalents 3,677.82 5,065.62 -
Bank balance other than cash and cash equivalents 118.38 150.47 -
Derivative financial instruments 660.04 242.25 -
Trade receivables 12.87 42.80 -
Loans 57,839.79 55,335.94 Interest rate
Investments 3,196.29 3,482.70 Interest rate
Other financial assets 754.64 673.91 Interest rate
Total 66,259.83 64,993.69
LIABILITIES
Trade payables 30.25 16.29 -
Debt securities 3,994.09 6,201.97 Interest rate
Borrowings (other than debt securities) 31,174.70 27,715.84 Interest rate/
Currency risk
Deposits 17,214.24 17,605.14 Interest rate
Subordinated liabilities 1,238.35 1,438.18 Interest rate
Other financial liabilities 1,963.15 2,564.63 -
Total 55,614.78 55,542.05

47.4.2 Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of
financial instruments. The Board has established limits on interest rate sensitive assets and interest rate sensitive liabilities.
The Company’s policy is to monitor positions on a regular basis and hedging strategies are used to ensure positions are
maintained within the established limits.
The following tables assesses the sensitivity of the assets and liabilities over the profit and loss with change in interest rates.
(J in crore)
Increase / (decrease) Sensitivity of
Areas Financial year
in basis points profit and (loss)
Loans 2022-23 100 bps / (100) bps 578.78 / (578.78)
2021-22 100 bps / (100) bps 559.97 / (559.97)
Investments 2022-23 100 bps / (100) bps 4.19 / (1.38)
2021-22 100 bps / (100) bps 9.26 / (4.78)
Other financial assets 2022-23 25 bps / (25) bps 68.22 / (68.22)
2021-22 25 bps / (25) bps 74.20 / (74.20)
External Commercial Borrowing 2022-23 100 bps / (100) bps (0.63) / 0.63
2021-22 100 bps / (100) bps (6.14) / 6.14
Debt securities, Borrowings (other than debt securities), Deposits and 2022-23 100 bps / (100) bps (319.93) / 319.93
Subordinated liabilities 2021-22 100 bps / (100) bps (296.53) / 296.53
47.4.3 Currency risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Foreign
currency risk arises majorly on account of foreign currency borrowings which are primarily in US dolllar ($). The Company
manages its foreign currency risk by entering into cross currency swaps and forward contracts. When a derivative is entered
into for the purpose of being as hedge, the Company negotiates the terms of those derivatives to match with the terms of the
hedge exposure.
Currently, the Company is exposed to currency risk by virtue of its ECBs. But, the Company has undertaken hedging and
mitigated a major portion of such risk.
The following table assesses the sensitivity of the assets and liabilities over the profit and loss and other comprehensive
income with change in currency rates.
(J in crore)
Areas Financial year Increase / Sensitivity on profit and loss / other comperehensive income
(decrease) in %
External Commercial 2022-23 10 % / (10) % (0.32) / 0.32
Borrowing 2021-22 10 % / (10) % (9.68) / 9.68
Note 47.4.4: Equity price risk:

The Company’s investment in non-listed equity securities are accounted at cost in the financial statement net of impairment.
The expected cash flow from these entities are regularly monitored to identify impairment indicators.


Note 47.5: Liquidity risk and funding management liquidity position is assessed under a variety of scenarios.
Liquidity risk is defined as the risk that the Company will The Company follows both stock and flow approaches to
encounter in meeting obligations associated with financial monitor and asses the liquidity position. Moreover, the
liabilities that are settled by delivering cash or another Compnay keeps a track of the expected funds inflows and
financial asset. Liquidity risk arises because of the possibility outflows along with the avenues of raising the funds. This
that the Company might be unable to meet its payment incorporates an assessment of expected cash flows and the
obligations when they fall due as a result of mismatches in availability of high grade collateral which could be used to
the timing of the cash flows under both normal and stress secure additional funding if required.
circumstances. Such scenarios could occur when funding The Company has a Board approved Asset and Liability
needed for illiquid asset positions is not available to the Management (ALM) policy. The policy has constituted an
Company on acceptable terms. To limit this risk, management Asset and Liability Committee (ALCO) which meets at
has arranged for diversified funding sources and investors regular intervals and review the asset liability profile both
in addition to its core deposit base, also adopted a policy of at the particular time bucket level and cumulative level as
managing assets with liquidity in mind and monitoring future well as the interest rate profile of the Company. The policy
cash flows and liquidity on a regular basis. The Company also also defines the limits on such monitored items and these
keeps lines of credit and liquid investments that it can access are further presented to the Board for information and
to meet liquidity needs. The lines of credit are from various further action, if any. Apart from the regulatory defined
banks and institutions. The liquid investments are kept in tools, the Company has voluntarily instituted various liquidity
liquid mutual funds, fixed deposits, liquid bonds, government parameters that are presented to the ALCO and further to the
securities etc., limits of which are defined as per investment Board. Moreover, the position of liquidity is presented to the
policy based on the type of security, rating of entity and Risk Management Committee of the Board.
instrument. In accordance with the Company’s policy, the
Note 47.5.1: Analysis of financial liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows (including interest) of the Company’s
financial liabilities.
(J in crore)
Total Total
Trade payables 30.25 - 30.25 16.29 - 16.29
Debt securities 900.00 3,094.09 3,994.09 2,359.91 3,842.06 6,201.97
Deposits 5,138.66 12,075.58 17,214.24 5,796.65 11,808.49 17,605.14
Interest on borrowings (including debt securities / 3,768.92 4,866.85 8,635.77 3,539.44 4,807.71 8,347.15
deposits / subordinated liabilities)
Total 26,735.64 37,248.73 63,984.37 24,824.28 38,711.16 63,535.44
The table below shows the contractual expiry by maturity of the Company’s contingent liabilities and commitments.
(J in crore)
Particulars Within 12 Months After 12 Months Total

NOTE 48: FAIR VALUE MEASUREMENT or indirectly observable market data available over
The principles and techniques of fair valuation measurement the entire period of the instrument’s life. Such inputs
of both financial and non-financial instruments are as follows: include quoted prices for similar assets or liabilities in
active markets, quoted prices for identical instruments
(a) Valuation principles in inactive markets and observable inputs other than
quoted prices such as interest rates and yield curves,
Fair value is the price that would be received to sell
implied volatilities and credit spreads. In addition,
an asset or paid to transfer a liability in an orderly
adjustments may be required for the condition or
transaction in the principal (or most advantageous)
location of the asset or the extent to which it relates to
market at the measurement date under current market
items that are comparable to the valued instrument.
conditions (i.e., an exit price), regardless of whether
that price is directly observable or estimated using a Level 3: Those that include one or more unobservable
valuation technique. input that is significant to the measurement as whole.
For determination of fair value, financial instruments are

(b) Valuation governance
classified based on a hierarchy of valuation techniques,
as summarised below: The Company’s fair value methodology and the
governance over its models includes a number of
Level 1: Those where the inputs used in the valuation controls and other procedures to ensure appropriate
are unadjusted quoted prices from active markets for safeguards are in place to ensure its quality and
identical assets or liabilities that the Company has adequacy. All new product initiatives and their valuations
access to at the measurement date. The Company are subject to approvals by related functions of
considers markets as active only if there are sufficient the Company.
trading activities with regards to the volume and liquidity
of the identical assets or liabilities and when there are (c) Assets and liabilities by fair value hierarchy
binding and exercisable price quotes available on the
The following table shows an analysis of financial
balance sheet date.
instruments recorded at fair value by level of the fair
Level 2: Those where the inputs that are used for value hierarchy
valuation are significant and are derived from directly

(J in crore)
Investments
Mutual funds 8.52 - - 8.52
Government securities - 413.18 - 413.18
Assets measured at fair value on a non recurring basis
Assets held for sale - - - -
Total assets measured at fair value on a non recurring basis (b) - - - -
Margin money received against derivative financial instruments - 22.33 - 22.33



(J in crore)
Investments
Mutual Funds 110.95 - - 110.95
Government securities - 1,044.83 - 1,044.83
Assets measured at fair value on a non-recurring basis
Assets held for sale - 108.83 - 108.83
Total assets measured at fair value on a non-recurring basis (b) - 108.83 - 108.83
Spot and forward contracts - 50.08 - 50.08
Valuation methodologies of financial instruments measured 4. Derivative financial instruments

at fair value Interest rate derivatives
Below are the methodologies and assumptions used to
For Interest rate derivatives Company has interest
determine fair values for the above financial instruments
rate swaps and cross currency swaps. The valuation
which are recorded and measured at fair value in the
techniques are the mark to market positions with
Company’s financial statements.
forward pricing on the swap models using present
value calculations by estimating future cash flows and
1. Mutual funds
discounting them with the appropriate yield curves like
Units held in mutual funds are valued based on their the OIS yield curve. These contracts are generally Level
published Net asset value (NAV) and such instruments 2 unless adjustments to yield curves or credit spreads
are classified under Level 1. are based on significant non-observable inputs, in which
case, they are Level 3.
2. Debt securities
Foreign exchange contracts
The Company’s debt instruments are standard fixed rate
securities, some with zero coupon feature.The Company Foreign exchange contracts include spot contracts,
uses market prices whenever available, or other foreign exchange forward and swap contracts and over-
observable inputs in discounted cash flow models to the-counter foreign exchange options.
estimate the corresponding fair value. These Corporate
However, the Company has not entered into any foreign
bonds are generally Level 2 instruments.
exchange options. These instruments are valued by
either observable foreign exchange rates, observable or
3. Assets held for sale
calculated forward points and option valuation models.
Assets held for sale valuation are basis independent Company classifies these foreign exchange contracts as
valuations by a specialist in valuing these type of assets. level 2.
The best estimate of fair value is current prices in an
active market for similar assets.

(d) Fair Value of financial instruments not measured at fair value

(J in crore)
Fair Value
Financial assets
Investment#
Government Securities (at amortised cost) & Equity (at cost) 2,276.72 - 2,285.37 - 2,285.37
Security Recipt in ACRE 122 trust 40.45 - - 119.00 119.00
Total financial assets 60,156.96 - 60,117.64 119.00 60,236.64

(J in crore)
Fair Value
Financial assets
Investment#
Government Securities (at amortised cost) & Equity (at cost) 2,234.23 - 2,321.02 - 2,321.02
Total financial assets 57,570.17 - 57,716.29 - 57,716.29
# fair value has been disclsoed for those valued at amortised cost.


Valuation methodologies of financial instruments not

3. Financial liabilities
measured at fair value Debt securities and Subordinated liabilities
Below are the methodologies and assumptions used to Debt securities and subordinated liabilities are
determine fair values for the above financial instruments generally liquid and traded in active markets
which are not recorded and measured at fair value in the resulting in a Level 1 classification. When active
Company’s financial statements. market prices are not available, the Company uses
discounted cash flow models with observable
1. Financial assets and liabilities (Short term) market inputs of similar instruments and
Cash and cash equivalents, bank balances bond prices to estimate future index levels and
other than cash and cash equivalents, trade extrapolating yields outside the range of active
receivables, other financial assets, trade payables, market trading, in which instances the Company
commercial papers and other financial liabilities classifies those securities as Level 2.
has been recognised at amortised cost in the
Deposits
The fair values of deposits are computed by
In accordance with Ind AS 107.29(a), fair value discounted cash flow models that incorporates
is not required to be disclosed in relation to the prevalling interest rate. The Company classifies
financial instruments having short-term maturity these liabilities as Level 3.
(less than twelve months), where carrying amount
(net of impairment) is a reasonable approximation Financial assets or liabilities other than those
of their fair value. Hence the fair value of cash mentioned above resembles the value approximate
and cash equivalents, bank balances other than to their fair value.
cash and cash equivalents, trade receivables,
other financial assets, trade payables, commercial (e) There have been no transfers among Level 1, Level 2
papers and other financial liabilities has not and Level 3, during the year ended March 31, 2023 and
been disclosed. March 31, 2022.
NOTE 49: OTHER DISCLOSURES:

2. Financial assets
(i) There is no income which is required to be recorded
Loans and advances to customers
in the books of accounts that has been surrendered
Substantial amount of the loans are based on or disclosed as income during the year in the tax
floating rate of interest,carrying amount of which assessments under the Income Tax Act, 1961.
represents the fair value of these loans. Minuscule
amount of loans are based on fixed to floating (ii) The Company has not been declared willful defaulter by
rate of interest, the fair values of these loans any Banks/Financial Institutions.
are computed by discounted cash flow models (iii) The Company has not traded or invested in Crypto
incorporating prevalling interest rate.The Company currency or Virtual currency during the year.
classifies these assets as Level 2.
(iv) There are no proceedings which have been initiated or
Government debt securities pending against the Company for holding any benami
Government debt securities are financial property under the Benami Transactions (Prohibition)
instruments issued by sovereign governments and Act, 1988 (45 of 1988) and the rules made thereunder.
include both long- term bonds and short-term bills
(v) The Company has not advanced or loaned or invested
with fixed or floating rate interest payments. These
funds (either borrowed funds or share premium or any
instruments are generally liquid and traded in
other sources or kind of funds) to any other person(s)
active markets resulting in a Level 1 classification.
or entity(ies), including foreign entities (Intermediaries)
When active market prices are not available, the with the understanding (whether recorded in writing or
Company uses discounted cash flow models with otherwise) that the Intermediary shall:
observable market inputs of similar instruments
(a) directly or indirectly lend or invest in other persons
and bond prices to estimate future index levels
or entities identified in any manner whatsoever
and extrapolating yields outside the range of active
by or on behalf of the Company (Ultimate
market trading, in which instances the Company
Beneficiaries) or
classifies those securities as Level 2. The Company
does not have Level 3 government securities where (b) provide any guarantee, security or the like to or on
valuation inputs would be unobservable. behalf of the Ultimate Beneficiaries;

(vi) The Company has not received any funds from any (b) provide any guarantee, security or the like to or on
other person(s) or entity(ies), including foreign entities behalf of the Ultimate Beneficiaries;
(Intermediaries) with the understanding (whether
(vii) The Company is not a Core Investment Company (CIC) as
recorded in writing or otherwise) that the Company
defined in the regulations made by the Reserve Bank of
shall:
India and the Group has no CICs as part of the Group.
(a) directly or indirectly lend or invest in other persons
(viii) The Company has not entered into Scheme of
or entities identified in any manner whatsoever
Arrangement in terms of section 230 to 237 of the
by or on behalf of the Funding Party (Ultimate
Company Act, 2013.
Beneficiaries) or
(ix) Disclosure in relation to Struck off Companies:

(J in crore)
Nature of transactions with Balance outstanding as Balance outstanding as Relationship with
Name of struck off Company/LLP
struck-off Company at March 31, 2023 at March 31, 2022 the Struck off company/LLP
A and B Fashions Private Limited Interest credited on 0.15 0.14 Depositor

deposit received
Payal Financial Services Private Professional services - - Vendor
Limited
Akshda Well Wisher Advisory (OPC) Direct selling agent - - Vendor
Private Limited
DNM Finserve Private Limited Direct selling agent - - Vendor
Note 50: Pursuant to the Board of Directors approval dated (ii) Ind AS 8 – Definition of accounting estimates -
March 09, 2022 for issue of equity shares upto by way of The amendments specify definition of ‘change in
Rights Issue (“Rights Issue”) for an amount not exceeding accounting estimate’ replaced with the definition
H 2500 crore, the Company had filed Letter of Offer on of ‘accounting estimates. The Company does not
March 29, 2023. The issue opened for subscription on April expect the amendments to have any impact in the
13, 2023 and closed on April 27, 2023. The rights issue financial statements.
was oversubscribed 1.21 times. The Board on May 4, 2023
(iii) Ind AS 12 – The amendment clarifies that in cases
approved the allotment of 9,06,81,828 fully paid-up equity
of transactions where equal amounts of assets and
shares at a price of H275 per equity share (including premium
liabilities are recognised on initial recognition, the
of H265 per equity share) aggregating to H2,493.76 crore
initial recognition exemption does not apply. Also, If
to the eligible shareholders. The estimated issue expenses
a company has not yet recognised deferred tax asset
(contractual commitment) in relation to Right Issue is
and deferred tax liability on right-of-use assets and
H46.70 crore.
lease liabilities or has recognised deferred tax asset or
deferred tax liability on net basis, that company shall
NOTE 51: AMENDMENTS ISSUED BUT NOT YET
have to recognise deferred tax assets and deferred tax
EFFECTIVE
liabilities on gross basis based on the carrying amount
Ministry of Corporate Affairs (“MCA”) notifies new standard of right-of-use assets and lease liabilities existing at the
or amendments to the existing standards under Companies beginning of April 1, 2022. The Company does not expect
(Indian Accounting Standards) Rules, 2015 from time to time. the amendments to have any impact in its recognition
On March 31, 2023, MCA amended the Companies (Indian of deferred tax assets and deferred tax liabilities in its
Accounting Standards) Rules, 2015, applicable from April 1, financial statements.
2023, as below:
The MCA vide its notification dated March 24, 2021 had
(i) Ind AS 1 – Material accounting policies - The introduced the concept of audit trails, applicable from
amendments mainly related to shifting of disclosure April 1, 2023, by inserting proviso to rule 3(1) of the
of erstwhile “significant accounting policies” in the Companies (Accounts) Rules, 2014. It mentioned that
notes to the financial statements to material accounting every company which uses accounting software for
policy information requiring companies to reframe maintaining its books of account, shall use only such
their accounting policies to make them more “entity” accounting software which has a feature of recording
specific. This amendment aligns with the “material” audit trail of each and every transaction, creating an edit
concept already required under International Financial log of each change made in books of account along with
Reporting Standards (IFRS). The Company does not the date when such changes were made and ensuring
expect the amendments to have any impact in the that the audit trail cannot be disabled.


Note 52: Previous year figures have been rearranged / regrouped wherever necessary to correspond with current year’s
classification disclosure.
FR No.: 006711N/N500028

M. No.: 057986 DIN: 08524205 DIN: 07053788
For Singhi & Co.

FR No.: 302049E

M. No.: 088926 ACA: 500609 FCS: 002642
Place: New Delhi

Date: May 18, 2023

NOTES
CORPORATE INFORMATION
DIRECTORS ON BOARD BANKERS AND FINANCIAL INSTITUTIONS

Mr. Atul Kumar Goel ANZ Bank
Mr. Sunil Kaul Asian Development Bank
Mr. R Chandrasekaran Bandhan Bank
Mr. Nilesh S Vikamsey Bank of Baroda
Dr. Tejendra Mohan Bhasin Bank of India
Mr. Neeraj Vyas Barclays Bank
Mr. Sudarshan Sen Canara Bank
Mr. Kapil Modi Citi Bank
Ms. Gita Nayyar Deutsche Bank
Mr. Pavan Kaushal HDFC Bank Limited
Mr. Dilip Kumar Jain ICICI Bank Limited
Mr. Girish Kousgi, IDBI Bank
Managing Director and CEO IDFC First Bank
Indian Bank
STATUTORY AUDITORS Indus Ind Bank
T R Chadha & Co, LLP, Chartered Accountants International Finance Corporation
B-30, Connaught Place, Japan International Cooperation Agency
Kuthiala Building, Karnataka Bank Limited
New Delhi – 110 001 Karur Vysya Bank
Kookmin Bank
Singhi & Co., Chartered Accountants National Housing Bank
1704, 17th Floor, World Trade Tower Punjab & Sind Bank
DND, Flyway, C 01, Punjab National Bank
Sector 16, Noida- 201 301 RBL Bank Limited
State Bank of India
REGISTRAR & SHARE TRANSFER AGENT The HSBC Limited
Link Intime India Private Limited UCO Bank
Unit: PNB Housing Finance Limited Union Bank of India
C-101, 247 Park L.B.S. Marg, Vikhroli (West)
Mumbai 400 083 CHIEF FINANCIAL OFFICER
Mr. Vinay Gupta
TRUSTEE FOR DEBENTURE HOLDERS
IDBI Trusteeship Services Limited COMPANY SECRETARY &
Universal Insurance Building,
CHIEF COMPLIANCE OFFICER
Ground Floor, Sir P.M. Road,
Mr. Sanjay Jain
Fort, Mumbai – 400001
E-mail: itsl@idbitrustee.com
Tel No. (022) 40807000 REGISTERED AND CENTRAL SUPPORT OFFICE
SECRETARIAL AUDITOR
New Delhi - 110001
Chandrasekaran Associates
Company Secretaries
11-F, Pocket-IV, Mayur Vihar Phase-I,
Delhi-110 091

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Chang ng with time.

Grow ng with change.

35th Annual Report 2022-23

The Company is registered with National

PNB Housing Finance has a robust pan-India

Over time, housing finance companies have had to

The evolution we are currently undergoing as a

remarkable resilience 18,626

throughout the year. We *Retail segment contributed to 99% of the

drive sales, enhance 56,137

Deposit outstanding^ Net interest income

17,684 17,248 2,308 2,323 2,346

04 35th Annual Report 2022-23

Pre-provision operating profit Profit after tax

FY19 FY20 FY21 FY22 FY23

Gross non-performing assets^ Net non-performing assets^

Spread Net interest margin

2.77 2.81 3.73

2.35 2.46 3.16

+Principal outstanding including principal overdue

PNB Housing Finance Limited 05

Gross interest margin OPEX to ATA

Cost to Income Return on asset

19.61 20.24 1.61 1.61

Return on equity Gearing^

^Indicates dates as on 31st March

06 35th Annual Report 2022-23

CRAR^ Earnings per share

23.40 24.43 71.19

Book value Disbursement per average employee

Loan Asset per Pre provision Operating

+Principal outstanding including principal overdue

PNB Housing Finance Limited 07

08 35th Annual Report 2022-23

Recognising the ever- With a clear vision and

PNB Housing Finance Limited 09

*Source: ICICI Securities Report

PNB Housing Finance Limited 11

OUR PERFORMANCE IN FY23

12 35th Annual Report 2022-23

PNB Housing Finance Limited 13

LOWER MORTGAGE RISING DEMAND FOR

16 35th Annual Report 2022-23

SHIFT IN BUYING NEEDS IMPACT OF DIGITALISATION

− We have improved our

PNB Housing Finance Limited 17

This transformational phase is marked by a diligent

Strategic pillar 1 Strategic pillar 2

ACCELERATE GROWTH BY FOCUSSING EXPAND AFFORDABLE HOUSING LOAN

Key Performance Indicators Key Performance Indicators

20 35th Annual Report 2022-23

Strategic pillar 3 Strategic pillar 4

Key Performance Indicators Key Performance Indicators

Key Performance Indicators

Read more on page 48

PNB Housing Finance Limited 21

Through a focus on innovation and cutting-edge

With a comprehensive range of products and

Explore. Enhance. Expand

Our strong presence reflects our dedication towards last-