Annual Report 2022 23

ANNUAL REPORT
2022-23
PERFORMANCE
with
PURPOSE
Contents
01-42
01 FY23 Highlights 20 Operating Environment
02 Performance with Purpose 22 Key Focus Areas
CORPORATE 04 Company Overview 30 Our People
OVERVIEW 08 Product Portfolio 34

Corporate Social
12 Chairman’s Message Responsibility
14 MD & CEO’s Message 38 Governance
18 Key Performance Indicators
43-142
43 Directors’ Report 106 Business Responsibility
60
Management Discussion and Sustainability
and Analysis Reporting
STATUTORY
72
Corporate Governance
REPORTS Report
143-208 143 Independent

Auditor’s Report
154 Cash Flow Statement
156 Schedules to the
FINANCIAL 152 Balance Sheet Financial Statements
STATEMENTS 153 Profit and Loss Account
Forward-looking Statements
In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our
prospects and take investment decisions. This Report and other statements – written and oral – that we periodically
make contain forward-looking statements that set out anticipated results based on the management’s plans and
assumptions. We have tried, wherever possible, to identify such statements by using words such as ‘anticipate’,
‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’ and words of similar substance in connection with
any discussion of future performance. We cannot guarantee that these forward-looking statements will be
realised, although we believe we have been prudent in our assumptions. The achievements of results are
subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties
materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those
anticipated, estimated or projected. Readers should keep this in mind. We undertake no obligation to publicly
update any forward-looking statement, whether as a result of new information, future events or otherwise.
Wherever ‘Bank’ is mentioned it should be read as Suryoday Small Finance Bank, unless specified categorically.
Annual
Report 2022-23
FY23 Highlights
` 6,114 Cr ` 844 Cr ` 78 Cr

*
Gross Loan Portfolio (GLP) Net Total Income Profit After Tax (PAT)
Corporate Overview
` 5,167 Cr 577 33.7%
Statutory Reports
Deposits Number of Branches Capital Adequacy Ratio
Financial Statements
60%
Cost-to-Income Ratio
`1,585 Cr
Shareholders’ Fund
` 9,861 Cr
Total Assets
as on March 31, 2023
*Adjusted for ARC is ₹6,541 Crores with growth of 29.2%
01
Suryoday Small Finance Bank Limited
PERFORMANCE
WITH
PURPOSE
02
Annual
Report 2022-23
Every morning the Sun rises with precision,

responsibility and more importantly, Purpose.
Be it a flourishing sapling or a fully grown tree,
the Sun gives out selflessly, treats all equally, and
dedicates its existence to others’ betterment.
Corporate Overview
We, at Suryoday, take our inspiration from the Sun
to Rise and Shine with a Purpose.
Since our humble beginnings in 2009, our We stood unfazed by uncertainties.

Purpose has been our driving force. As an We overcame challenges, even during the
Statutory Reports
NBFC-MFI, we have endeavoured to enable COVID pandemic, and embraced changes
the dreams of the unbanked and underbanked without losing sight of our Purpose. As a result,
citizens. We touched the lives of our customers we achieved many significant milestones
in the last mile by extending to them the benefits along the way.
of mainstream banking, heralding a new hope
of a better future. Their trust in us led us to our Today, from being a homegrown Indian
next remarkable milestone. enterprise, that started as an NBFC-MFI with
the support and trust of investors from within
In 2015, we commenced our operations as a and outside the country, to becoming a financial
Small Finance Bank with our Purpose at the institution trusted by over 2.3 million customers,
core of our operations. i.e., making banking the journey has been exciting, eventful and
accessible to all sections of society. Over the impactful. We are grateful for the support,
years, we have witnessed sustainable growth, goodwill and patronage.
soaring glory, and immeasurable trust.
Our endeavour to capture deeper insights By staying true to our Purpose, we continue
enabled us to build customer-centricity in our to uphold the confidence of our customers,
products & services. It helped to build a strong employees and stakeholders.
portfolio of distinctive products & services to
better the customer experience. In addition, The year FY23 saw us continue our growth
we leveraged technology by adopting fintech trajectory. As we step into FY24, we are poised
to imbibe intuitiveness in our product and to strengthen our operational, digital, and
services, improve turn-around efficiency and technological infrastructure. Performance with
accelerate growth. Furthermore, we aimed at Purpose continues to be the core of all
employee engagement by strengthening the strategies and banking activities.
capacity of young resources. We also focussed
on building a pool of senior talent to deliver
business excellence.
03
COMPANY OVERVIEW
Gaining Momentum.
Building for the Future
Suryoday Small Finance Bank is one of the leading and preferred Personal
and Business Banking partners for customers belonging to all strata of the
society across India.
Our Purpose has served as the foundation for our strong

What Suryoday Stands For?
performance and progress. Once more, we have delivered
both profits and Purpose. We have grown significantly,
15
delivering High Service Levels and Excellent Customer
First Products. We are a Strong Brand with a Strong Track
Record of Growth, Profits & Asset Quality. Presence in number of States and
Union Territories
While we review and learn from the past, we don’t live
there. Our team’s commitment and expertise combined
with the trust and support of our customers have us
positioned well for the future. We are providing various
products and services catered to suit all customers’ needs ~0.6%
Indian Household Customers
while also catering to customers across the country,
irrespective of the section of the society they represent.
We aim to create a lasting and sustainable impact on
unserved and underserved communities who deserve the
benefits of mainstream banking.
23.1 Lakhs
Customers
As a part of our DNA, we have always focussed on

fundamentals to deliver smiles to our customers.
We will continue leveraging the full capabilities of Suryoday
6,025
Employees
Small Finance Bank to Perform by staying true to our
Purpose – now and going forward.
04
Annual
Report 2022-23
Loan Mix (%) Shareholding Pattern (%)
11.3 23
32
3
27.5 61.2
5
8
20
5 1
3
Inclusive Finance Promoter Financial

Retail Assets Foreign Venture Capital Institutions/Banks
Financial Intermediary Mutual Funds Alternate
Group (FIG) Foreign Portfolio Investment Funds
Corporate Overview
Investors Insurance
Venture Capital Funds Companies
Others
Credit Rating
Agency Category Rating

ICRA Sub-Debt A(Stable)
ICRA CD Rating A1+
Statutory Reports
CRISIL CD Rating A1+
What Differentiates Us? Who Are Our Investors?

Institutional Investors
Diversified asset portfolio
Customer-centricity
with digitally
enhanced offerings
Widespread omnichannel
distribution
Development/Impact Funds
Robust risk management
and efficient credit
processes
Strategic technology Private Equity

investments and
partnerships for expanding
digital outreach
Experienced leadership and

well-structured corporate
governance framework
05
COMPANY OVERVIEW (CONTD.)
Journey with a Solid Purpose

Our journey from a microfinance institution to a small finance bank over the
last 15 years, has seen us bring smiles to 2.3 million customers across the
country. Over the years, we have not only emerged as the only small finance
bank from Maharashtra to obtain a licence from RBI but also the one with
‘customer-centricity’ embedded in its core belief.
2019-2020
• Investment by DEG, Kotak
Life Insurance and TIAA
2014-2016 • Long-term rating of ‘[ICRA]
• Investment by IFC, DWM A’ and short-term rating
of ‘A1+’ from CRISIL and
• In-principle approval to
‘[ICRA] A1+’
establish an SFB from
the RBI
• Received a rating of
‘[ICRA] A (-)’ for NCDs
• RBI final approval to
commence SFB operations
• Investment by IDFC First
Bank, ASK Pravi,
Kiran Vyapar Ltd.
2017-2018
• Commenced SFB
operations
• Investment by Evolvence
India, responsAbility, Gaja
2008-2013 Capital, TVS Shriram,
amongst others
• Suryoday Micro Finance
Private Limited incorporated • Launched Commercial
Vehicle, Affordable Housing,
• Commenced Micro Finance MSME Loans and Secured
operations Business Loan products
• Investment by Aavishkaar,
Lok Capital, HDFC Holdings
and HDFC Life Insurance
06
Annual
Report 2022-23
2022
• Long-term rating of ‘[ICRA]
A’ and short-term rating of
‘A1+’ from CRISIL. ICRA A1+
Reaffirmed
• Launched Micro Home Loan,
Micro LAP
• IT Transformation
programme – PRAGYAN
2023
Corporate Overview
• AUM crosses ` 6,000 Crores
Customer base - 23.1 Lakhs
Deposit crosses ` 5,000 Crores
Vikas Loan portfolio crosses
` 1,200 Crores
Statutory Reports
2021
• Listed on NSE & BSE
• IPO size of ` 581 Crores
• Marquee investors like
SBI Life Insurance, Axis
MF, Aditya Birla Sun
Life Insurance and ICICI
Prudential Life Insurance
invested in the Bank
07
PRODUCT PORTFOLIO
Unique Offerings to Serve Diverse Needs

We service our customers with a versatile range of products for ensuring
financial inclusion while continue being the ambassadors of smiles for our
customers. Our curated products are tailored to suit the evolving needs of our
customers and provide the best banking experience.
Liability Highlights for FY23

Under the purview of liabilities, we have a host of products
• Deposits grew ~34% Y-o-Y to ` 5,167 Crores of the
such as current accounts, savings accounts, and other overall deposits, the proportion of granular retail
deposit accounts like recurring deposits and fixed deposits, deposits including CASA stood at 86%
among others. Over the years, we have been gradually
building our retail deposit base on the back of our strong
• CASA value grew by 22% sequentially to ` 884
Crores in Q4FY23
liability franchise and superior customer-centric products.
Our ever-strengthening retail deposit book was further • Cost of deposits declined to 6.9% as on
strengthened by Government’s sharp focus on increasing March 31, 2023
the cover under DICGC Insurance and Credit Guarantee • As on March 31, 2023, the Bank had a total of 95
Corporation (DICGC) insurance from ` 1 Lakh to ` 5 Lakhs liability-focussed branches located primarily in the
per deposit account. states of Maharashtra and Tamil Nadu
` 5,167 Cr 73.1% Product Mix

(%)
Deposits as Proportion of Current Account
3.7 Savings Account
on March 31, 2023 Retail Term Deposits 13.4 Term Deposits
Bulk Deposits
26.9
56
Asset Product Mix

We are gradually shifting our product mix towards (%)
secured retail loans. We have a diversified range of Inclusive Finance
products under our assets portfolio including commercial 3.6 Commercial Vehicle
13.1 Finance
vehicle loans, affordable housing loans, joint liability
Housing Loan
group loans, financial intermediary group loans, micro 6.6 Secured Business
business loans, and secured and unsecured business 61.2 Loan
loans to MSMEs and corporates. We have commenced 9.1
Financial Intermediary
two-wheeler business during the year. 6.4 Group & Partnerships
Others
Figures may not add up due to rounding off
08
Annual
Report 2022-23
MFI Lending (Inclusive Finance) Highlights for FY23

Inclusive finance forms the biggest share of our asset side
business. Under this product vertical, we have a total of
• Substantial growth in Inclusive Finance business of
11% (including ARC 22%)
1.7 million Inclusive Finance customers including Vikas
Loan customers. We provide group loans built on the • Vikas Loan Portfolio crosses ` 1,200 Crores with a
peer-guarantee loan model (joint liability group), wherein collection efficiency of more than 99% and Standing
individuals can take loans without the need of providing Instruction Clearance of over 90%
any collateral while promoting credit discipline through • End-to-end digital process for Vikas Loan with
mutual support within the group. To provide seamless provision to capture household data through
customer service, we had adopted digital offerings from Sarathi App (developed in-house)
time to time. Since its launch in 2020, our Vikas loan book • Portfolio coverage through CGMFU
has been an instant success indicating a robust growth of
400% in AUM. The end-to-end digital services has helped
simplify the customer journey. With significant portfolio
covered under Credit Guarantee Fund for Micro Units
17 Lakhs ` 3,743 Cr
(CGFMU) scheme, the portfolio is quasi secured. Customers for Total Loan Portfolio
Corporate Overview
inclusive finance in FY23
in FY23
Statutory Reports
COMMERCIAL
VEHICLE FINANCE
We are cognizant of the huge number of fleet
operators across the country, and their need
of availing finance for heavy and medium
commercial goods vehicles. We offer our
customers with commercial vehicle finance for a
ticket size between ` 2 Lakhs and ` 50 Lakhs, for
a tenure of 1 year to 5 years, with interest rates
ranging between 11% and 16%.
2,300+ ` 236 Cr
Customers for Disbursements Highlights for FY23
commercial vehicle in FY23
finance in FY23 • Increased focus on retail CV business
• Introduced Product Variant to target low-ticket used
CV business for first-time users
• Built strong team across locations to achieve the
next level of growth
09
TWO-WHEELER
BUSINESS LOANS*
The Bank successfully entered into
the Two-wheeler business segment.
Originally started on a pilot basis, the
Bank looks to grow the segment through
partnership model and also cater to the
mobility needs of its Inclusive Finance
customers in the near future.
1,100+ ` 5+ Cr
Customers for Disbursements
two-wheeler during the year
finance in FY23
*Started during the fiscal year on a pilot basis.
HOUSING LOANS
(INCLUDING MICRO HOME LOAN)
The need for shelter is a necessity for every
human being and the Bank strives to cater the
rising demand of affordable housing loans.
We offer affordable housing loans with ticket
sizes between ` 8 and ` 25 Lakhs, for a tenure of
3 years to 20 years, with interest rates ranging
between 10.5% and 11.5%. Moreover, there
is a continued and ever-lasting process
Highlights for FY23 improvement drive, not only to expedite the
• Housing Loan segment disbursement stands at search but also to be able to help as many
` 231 Crores in FY23 customers as possible.
• Micro Home Loan disbursement stands at ` 81.4 Crores
• Housing Loan segment witnessed momentum in
Q4FY23 with disbursements at ` 70 Crores vs 5,602 ` 642 Cr
` 47 Crores in Q1FY23 Total Customers Total Loan Portfolio
• Launched a new product – Micro Home Loan in FY23. including 1,726 MHL including ` 87 Crores
Portfolio stood at ` 87 Crores as of March 2023 with customers in FY23 of MHL Loan Portfolio
No Delinquency as on March 2023
10
Annual
Report 2022-23
SECURED BUSINESS
LOANS
Under this product vertical, we provide secured
loans to our customers against collaterals
provided by them. We offer secured loans to our
customers with ticket sizes between ` 15 and ` 25
Lakhs, for a tenure of 5 to 12 years, and interest
rates ranging between 12.8% and 15.8%.
Highlights for FY23
Corporate Overview
• The total Secured Business Loans disbursed during
FY23 stood at ` 258 Crores
1,800+ ` 405 Cr • The GNPA of this product segment as of March 31,

2023 was 1.8%. However, post pandemic the portfolio
Customers for Total Loan Portfolio has fared well in terms of collection efficiency
secured loans in FY23 compared to other segments with a substantially
in FY23 lower GNPA
Statutory Reports
FINANCIAL INTERMEDIARY
GROUP LOANS
We provide debt capital support to financial
intermediaries such as NBFCs, MFIs and HFCs 30+ ` 688 Cr
for onward lending purposes catering to retail Customers for Total Loan Portfolio
segments like housing finance, loans against Financial Intermediary as on March 2023
property, microfinance, vehicle finance and Group loans in FY23
other similar sectors. This business vertical
focusses mainly on strategic collaboration
with these intermediaries by leveraging their Highlights for FY23
distribution network, technology, and expertise
• In FY23, the total disbursements made under FIG
to appraise the customer segment they are loans stood at ` 658 Crores
operating in. We offer FIG loans with ticket sizes
between ` 1 Crore and ` 50 Crores, with interest
• The FIG loans had an average ticket size of ` 30 Crores
rates ranging from 8.5% to 14.0% basis profile • As of March 31, 2023, no deliquencies were recorded
in this segment
of the customer.
11
CHAIRMAN’S MESSAGE
Striding Ahead with Quality Growth
Dear Shareholders,
It gives me immense pleasure to
present to you Suryoday’s Annual
Report for FY23. The year in review
saw us focus on quality growth
as evident from our sound and
purpose-driven performance.
The year FY23 began with a rise in geo-political instabilities For Small Finance banks, FY23 was the year of rebound after
and the impending war situation further dampened the global a muted FY22. The listed Small Finance banks put up a stellar
macro-economic scenario. Despite this, the 1st full year post performance during the year reporting an overall growth of
pandemic witnessed the Indian economy’s steady growth about 30% in their portfolio.
and resilience with India’s economic growth being largely
insulated from global shocks. Performance Review
FY23 was a year of reset for Suryoday, wherein we maintained
In FY23, the Indian economy was one of the fastest growing
a razor-sharp focus on quality growth resulting in steady and
economies, in real terms. With a rebound seen on all fronts,
turnaround performance during the year. The business growth
the Indian economy performed well with GDP growth at
was achieved with a mix of expanded branch networks and
7.2%. The credit growth in the Banking sector reflects the deeper penetration in the existing branches. As of March 31,
growth journey. Time and again, the Indian banking system 2023, our branch network stood at 577, of which 95 branches
has demonstrated its resilience while addressing global are deposit-focussed, 324 branches are asset-focussed, the
challenges. According to RBI’s Financial Stability Report, the remaining 158, being rural outlets.
Indian banking system is robust, fortified by a multi-year low
level of non-performing loans and adequate level of capital Signalling a turnaround in terms of profitability, we reported
and liquidity buffers. a profit of ` 77.7 Crores in FY23 against a loss of ` 93 Crores
reported in FY22. This recovery reflects our concerted efforts
In the recent past, deposit growth was more stable as to enhance operational efficiency, optimise our asset quality
compared to credit growth. However, in FY23, led by buoyant addressing stressed asset portfolio and improve overall
demand for credit growth, the CD ratio for SCBs stood at financial performance.
75.8% as against 72.4% reported in FY22. Healthier balance
sheets, sustained broad-based momentum of credit growth Our inclusive finance and related lines of business
across all sectors of the economy. As per RBI’s data, bank demonstrated a remarkable growth almost at the
credit grew by 15% year-on-year (y-o-y) basis in the fiscal pre-pandemic levels. Our retail assets business grew
ended March 2023 on account of the lower base of the significantly at around 41%.
previous year and higher demand for funds with economic On the deposit franchise front, we continued to focus on retail
activity picking up. granular deposit growth, wherein 50% of our retail deposits
12
Annual
Report 2022-23
accounted for amounts less than ` 5 Lakhs, and 86% of our customer servicing. During the year, we migrated to
retail deposits were related to amounts less than ` 50 Lakhs. Finacle Core Banking Solution, implementing it in record
time. We continue to invest in analytical tools to help us
Our disbursements grew by 44.1% to ` 5,083 Crores from
cross-sell and upsell, while enhancing the quality of our
a level of ` 3,528 Crores during the previous year, on the
customer journey.
back of increased demand, business activities reaching
the pre-pandemic levels with strong momentum across Our empowered human capital whom we consider as our
businesses. Our inclusive finance business, which serves Brand Ambassador, has ensured excellence in delivering
the unbanked and underbanked population, disbursed efficient customer service.
over ` 3,500 Crores constituting around 69% of the total
Undertaking in-depth and incisive analysis, has helped us
disbursements undertaken during the year.
maintain a robust risk management mechanism, enhancing
The Bank has had significant increase in its customer base our ability to ensure asset quality and take preventive action
that reflects the success of our customer-centric approach in a timely manner.
and our ability to attract new customers, by catering to
The Bank continues to be driven by its purpose of creating
evolving financial needs.
and developing a financially inclusive ecosystem and
The customer base of the Bank has witnessed a substantial accordingly continues to maintain a consistent focus on the
Corporate Overview
growth to about 23.1 Lakhs, an increase of 19.9% Y-o-Y unbanked and underbanked population.
signalling our way to cater to banking needs of 1% of the total
We are leveraging our Inclusive Finance Banking outlets to
Indian households.
offer relevant products beyond basic microfinance loans.
We have achieved significant improvement in our asset Additionally, we have strategically partnered with our
quality with a sharp reduction in Gross Non-Performing Business Correspondents to expand our network to newer
Assets to a level of 3.1% in FY23 from 11.8% in FY22 and geographies to help our customers make a foray into the
the Net NPA dropping to 1.5% in FY23 from 5.9% in FY22. mainstream financial system.
Our Provision Coverage Ratio (excluding technical write-offs)
We have been undertaking various CSR initiatives to empower
Statutory Reports
stood at 51.5%, marginally lower than 55.6% in FY22.
the marginalised sections of society and to help create a
Our collection efficiencies have improved steadily across all sustainable environment.
lines of businesses with the economy nearing pre-pandemic
levels. Our overall collection efficiency inclusive of recovery of The Way Ahead
overdue advances stood at 102.2% during the current fiscal. The recent banking crisis in US and Europe has sent
shockwaves across the global banking fraternity. However, the
Our core earnings have improved 27.7% Y-o-Y, with Net
Indian banks are well placed as compared to their US and
Interest Income increasing to a level of ` 746.6 Crores during
European counterparts. Additionally, the Government of India
the year as against ` 584.5 Crores last year.
and RBI continue their efforts to strengthening the banking
The year witnessed a rise in interest rates with Repo rates ecosystem and fostering a stable financial environment.
being raised by 2.5% in the course of the year. However, the
The Bank shall continue with its prudent approach across
Bank was able to maintain its cost of funds, which stood
the twin pillars of (a) being well capitalised to support future
at 6.7%, marginally lower than 7.0% in the corresponding
growth as well as (b) maintaining sufficient liquidity levels.
period last year. Similarly, the Bank has been able to
marginally improve its cost-to-income ratio to 60% versus We continue to remain focussed on serving the underbanked
60.9% in FY22. and unbanked segment with a vision to be able to serve at
least 1.0% of Indian households by 2026.
We continue to be well capitalised with our capital adequacy
ratio currently standing at 33.7%, comprising of Tier I capital I take this opportunity to thank all our stakeholders including
at 30.8% and Tier II capital at 2.9% respectively. our customers, business partners/associates, employees and
shareholders for their unwavering support and trust in us.
Improving Efficiencies
We are committed to delivering robust performance, so as to
We have strategic internal control measures in place to
become “The Bank of Choice,” for our customers as well as
improve processes and overall efficiencies for better and
for creating long term value for our shareholders.
improved customer service. We remain committed to setting
the highest standards of Corporate Governance by adhering Best wishes,
to the Industry’s Best practices and requirements.
RAMACHANDRAN R.
We continue to invest in technology, to aid our customer
service process and digitise processes for seamless Chairman
13
MD & CEO’S MESSAGE
Leveraging Capabilities for Deeper Connect
Dear Shareholders,
Suryoday appreciates your
continuing support and faith in our
capabilities to deliver value-driven
performance and sustainable
quality growth in FY23 and beyond.
We began the year amidst the backdrop of FY22 and the

turbulent global political situation while banking on the
Indian economy’s steely resilience to withstand such
challenges and emerge stronger with a steady GDP growth.
With businesses being high on sentiment as they recovered
from the pandemic impact, we aimed to capitalise on this
opportunity by ensuring quality growth.
We focussed on growing our portfolio across all fronts.

The key challenge for us was to scale our loan book both in
value and quality terms. We achieved this by maintaining
strong underwriting practices and an in-depth analysis to
ensure an adequate risk management system was in place
with early warning signals, to spot any deterioration in
asset quality.
With a 1-EMI adjusted
As on March 31, 2023, 90% of our gross loan portfolio
(GLP) constitute post-COVID (post June 2021) book
collection efficiency of
with only the remaining 10% pertaining to legacy book over 98% on the post-Covid
prior to June 2021. With a 1-EMI adjusted collection book, the Bank has
efficiency of over 98% on the post-COVID book, the Bank
has successfully adopted and implemented requisite
successfully adopted and
risk mitigation strategies. We also sold a portion of our implemented requisite risk
stressed portfolio to an ARC resulting in a one-time impact mitigation strategies.
on our profitability.
14
Annual
Report 2022-23
Financial Highlights
In FY23, we focussed on quality growth which is evident
in our performance across key parameters. The main
drivers that led our performance related to deepening and The main drivers that led
leveraging on the existing network and infrastructure, our performance related to
digitally-assisted products and partnerships for loan and
liability products. Additionally, we have made strategic deepening and leveraging
investments in human capital and digital capabilities. on the existing network
Both our secured lending and inclusive finance business
and infrastructure, digitally
grew significantly. Our net total income stood at ` 844 assisted products and
Crores as compared to ` 678 Crores in FY22, an increase of partnerships for loan and
24.5% y-o-y basis. Likewise, our yield improved to 19.3%
from 18.2% in FY22 while our net interest margin increased
liability products.
to 9.5% compared to 8.6% in FY22. Our AUM after adjusting
the sale of portfolio to ARC, grew by ~ 21% and stood at
Corporate Overview
our customer base for the portfolio grew substantially to
` 6,114 Crores in FY23. It was ably backed by an increase in
more than 1.9 Lakh customers. Our intent is to make our
disbursement by ~ 44% at ` 5,083 Crores over the previous
customers financially well managed by creating stability
year. We have also witnessed a substantial increase in
and growth for them and their entire families.
our retail asset disbursement which grew by 72.8% at
` 1,580 Crores.
On the Retail Assets front, our focus remained on steadily
increasing the book by sourcing good quality customers
Vikas Loans, our flagship product for Inclusive Finance
who have been able to weather the pandemic and are loan
customers crossed the ` 1,200 Crores portfolio mark,
servicing customers. As for the mortgage vertical, we have
growing from a modest base of ` 213 Crores in FY22 to
gradually built the affordable housing book which has a
Statutory Reports
` 1,232 Crores in FY23, clocking a growth of 478% over the
100% collection efficiency.
previous year.
We focussed on going more granular on the deposit
On the liability front, we continued to focus on mobilising
business, as is evident from the fact that 86% of our
granular retail deposits. Our total deposits for FY23 stood
retail deposits are below ` 50 Lakhs. The strategy will
at ` 5,167 Crores against ` 3,850 Crores in FY22, registering
help us convert our asset-focussed branches into
a strong y-o-y growth of 34.2%. Our CASA clientele has
deposit-mobilisation branches. This would help us to
shown a gradual increase over time. At the end of FY23,
eventually reach other financial / insurance products to
our borrowing accounted for 28% of our total liabilities,
these customers and cater to their every banking need.
the majority of which were from refinancing institutions.
Towards achieving this goal, we have enhanced our digital
It added strength to our Asset Liability Management.
capabilities with respect to our back end and mid-ware
processes. We now look forward to upgrading our
Operational Highlights
front-end process to with superior digital processes and
Our strategic focus in FY23 was on building a quality enhanced customer experience.
book with meaningful growth while developing our Vikas
Loan portfolio.
As we have a geographically spread branch network

focussed on inclusive finance, we identified locations with
potential for expansion and for building the liability book
while providing holistic financial services to the customers. Our strategic focus in FY23
Within our inclusive finance business, we have focussed
was on building a quality
on Vikas Loans (VL), an individual loan for graduating JLG book with meaningful
customers. The VL portfolio has a collection efficiency of growth while developing our
> 99% and is a testimony to our stupendous achievement
in FY23. Backed by our strategic focus and increased
Vikas Loan portfolio.
government impetus towards nurturing MSME growth,
15
We grew our liability franchise by focussing on deeper

penetration in select geographies as well as tapping our
existing asset customer base. We have expanded our
On the customer front, branch network to 577 locations as of March 31, 2023,
apart from the CSP outlets. Our branch network helps
our strategic focus was us cover about 4,673 pin codes which account for nearly
on gaining entry into the 24% of India’s total pin codes implying our ability to nearly
household through the reach 1 of every 4 Indian.
JLG model and thereafter On the customer front, our strategic focus was on
graduating the customer gaining entry into the household through the JLG model
to an individual borrower and thereafter graduating the customer to an individual
borrower and eventually at the household level. We used
and eventually at the the JLG model to get new-to-bank customers and the
household level. Vikas Loan product to convert existing vintage JLG
customers to individual loan customers.
Digitally-led Efficiencies
We have implemented Finacle Core Banking Solution (CBS)
during the year. The migration from the legacy system to
the new CBS was achieved in record time. With the new
16
Annual
Report 2022-23
systems in place, we can now focus on cost efficiency Additionally, our new e-FD opening is an assisted-digital
across processes. Additionally, we have undertaken service, whereby even a new customer can post
fast-paced digitisation of processes that could help e-authorisation for KYC, open a Term Deposit through our
further improve efficiencies and employee productivity Jyoti App available with every bank staff.
at a lower cost over the years. Our Sarathi App for our
Vikas Loan customers has significantly improved the The Way Ahead
TAT for loan origination and disbursement apart from The future of the banking sector is digital banking with
ensuring easy on-boarding of customers with back-end NPCI revolutionising financial transactions in India with
credit underwriting. its two flagship products “RuPay” and “UPI”, empowering
millions access to formal banking services. We have
We also migrated to a state-of-the-art server, network and been upgrading our digital capabilities to provide our
security infrastructure that is monitored and managed customers with end-to-end service offerings. We have
by us. This investment in IT infrastructure will help us also registered ourselves as a Member Lending Institution
maintain a strategic focus on digitisation. (MLI) under the CGFMU scheme, which would help us
successfully navigate through cyclical events that can be
We have also introduced a new feature which helps experienced periodically.
Corporate Overview
our customers to transfer funds into their Suryoday
account through UPI / other payment systems by simply For FY24, we will continue to maintain the momentum
transferring the funds to “<Account Number>@Suryoday”. gained on the growth path both across asset and liability
This feature helps our customers to fund their account and fronts. We would prioritise diversified growth across
make loan repayments without the need to visit the branch. business segments with specific focus on Vikas Loans
and Affordable Housing Loans while adopting appropriate
risk management practices. Apart from graduating JLG
customers, we would be extending the Vikas Loan product
to “New-to-Bank” (NTB) customers with adequate credit
Statutory Reports
history. On the deposit front, we strive to build on the CASA
deposits by converting our asset customers into complete
banking customers.
Conclusion
I would like to thank the Board of Directors and all
stakeholders on behalf of the Bank and myself, for their
ongoing support and patronage in this wonderful journey.
I would also express my gratitude to our dedicated
workforce who have consistently strived to achieve our
success story.
With the government impetus on growth and a buoyant

economy, we look forward to building on our FY23
performance and accelerate our quality growth in
FY24 and beyond.
We will strive to build a respectable financial services

institution primarily focused on financial inclusion
and meet the expectations of all our stakeholders in
the years ahead.
Warm Regards
Baskar Babu Ramachandran

MD & CEO
17
KEY PERFORMANCE INDICATORS
Steady and Remarkable Performance

Multiple tailwinds and being well capitalised helped us scale up at a faster
pace and perform well during FY23.
Balance Sheet Metrics

Total Assets Shareholders’ Fund Gross Loan Portfolio
(` Crores) (` Crores) (` Crores)
22-23 9,861 22-23 1,585 22-23 6,114

21-22 8,180 21-22 1,505 21-22 5,064
20-21 6,712 20-21 1,597 20-21 4,206
19-20 5,364 19-20 1,066 19-20 3,711
3-year CAGR 13.7% 3-year CAGR -0.3% 3-year CAGR 13.3%

Y-o-y 20.6% Y-o-y 5.3% Y-o-y 20.7%
Deposits Disbursement
(` Crores) (` Crores)
22-23 5,167 22-23 5,083

21-22 3,849 21-22 3,527
20-21 3,255 20-21 2,217
19-20 2,849 19-20 3,090
3-year CAGR 16.7% 3-year CAGR 31.9%

Y-o-y 34.2% Y-o-y 44.1%
Key Ratios
Operating Expense as a % of
CRAR Gross Advance ROA
(%) (%) (%)
22-23 33.7 22-23 8.3 22-23 0.9

21-22 37.9 21-22 9.2 21-22 (1.3)
20-21 51.5 20-21 8.7 20-21 0.2
19-20 35.4 19-20 8.1 19-20 2.5
Y-o-y -420 bps Y-o-y -90 bps Y-o-y 220 bps
ROE GNPA NNPA

(%) (%) (%)
22-23 5.1 22-23 3.1 22-23 1.5

21-22 (5.9) 21-22 11.8 21-22 5.9
20-21 1.0 20-21 9.4 20-21 4.7
19-20 11.2 19-20 2.8 19-20 0.6
Y-o-y 1,100 bps Y-o-y -870 bps Y-o-y -450 bps
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Report 2022-23
Profit and Loss Metrics

Revenue Net Total Income Net Interest Income
(` Crores) (` Crores) (` Crores)
22-23 1,281 22-23 844 22-23 747

21-22 1,035 21-22 678 21-22 584
20-21 852 20-21 486 20-21 410
19-20 941 19-20 665 19-20 491
3-year CAGR 14.5% 3-year CAGR 20.2% 3-year CAGR 22.1%

Y-o-y 23.7% Y-o-y 24.5% Y-o-y 27.7%
Corporate Overview
Pre-provisioning Operating Profit Profit After Tax Yield on Advances
(` Crores) (` Crores) (%)
22-23 337 22-23 78 22-23 19.3

21-22 264 21-22 (93) 21-22 18.2
20-21 181 20-21 12 20-21 17.8
19-20 305 19-20 111 19-20 21.9
3-year CAGR 23.1% 3-year CAGR 86.4%
Statutory Reports
Y-o-y 110 bps
Y-o-y 27.4% Y-o-y NA
Cost of Funds Net Interest Margin Cost-to-Income Ratio

(%) (%) (%)
22-23 6.7 22-23 9.5 22-23 60
21-22 7.0 21-22 8.6 21-22 60.9
20-21 8.0 20-21 7.1 20-21 64.4
19-20 8.6 19-20 11.7 19-20 47.1
Y-o-y -30 bps Y-o-y 90 bps Y-o-y -90 bps
Non-financial Metrics
Customer Base Employee Base Branches

(Lakhs) (Lakhs)
22-23 23.1 22-23 6,025 22-23 577

21-22 19.2 21-22 5,252 21-22 565
20-21 14.9 20-21 5,131 20-21 556
19-20 14.6 19-20 4,695 19-20 477
3-year CAGR 15.7% 3-year CAGR 5.5% 3-year CAGR 1.2%

Y-o-y 20.3% Y-o-y 14.7% Y-o-y 2.1%
19
OPERATING ENVIRONMENT
Pursuing Excellence with a Purpose

Our tenacity and adaptability in the face of challenges have enabled
us to navigate through global headwinds and capitalise on emerging
opportunities to realise our objective of financial inclusion for the
unbanked and underbanked.
10.4*%
Growth of Inclusive
Finance Portfolio in
FY23
*Adjusted for ARC ~23% of growth
The fiscal year 2023 began with the pandemic’s impact benefit the banking sector, especially the microfinance
receding and the global economy witnessing a paradigm sector in the country. Furthermore, the government’s
shift due to the impact of macroeconomic factors like impetus to stimulate a digital banking ecosystem to
inflation and rising interest rates. The global banking extend its network to the rural regions of India indicates
sector was rattled by the recent banking crisis in the United a commitment to strengthen the overall banking system.
States and Europe also substantially impacting the global Also, favourable demographics, businesses returning to
financial markets. normalcy and a rise in income would add to the growing
demand for customer loans.
Despite the global economic slowdown and inflationary
pressure, the Indian economy has remained resilient, Such favourable indicators augur well with our
supported by strong domestic demand and consumer commitment to retaining our inclusive finance customers,
spending across categories. In addition, India’s growing while also onboarding new customers across the micro
middle class increased the demand for affordable housing and non-micro loan segment and expanding our housing
with the Indian affordable housing market valued at market portfolio. Through our strong deposit mobilisation,
$1,824.4 million in 2022. This market is expected to collection, and disbursement mechanism along with
grow at a CAGR of 19.8% through 2028 backed by robust leveraging digital capabilities, we have been able to amplify
demand which will create immense opportunity for the our efforts in reaching out to new customers. We continue
banking sector. The various government initiatives that to disburse loans to new and existing customers, thus
include initiatives to nurture MSME growth and RBI’s extending our outreach to the under-banked and unbanked
new microfinance guidelines are expected to significantly and helping them attain financial inclusion.
20
Annual
Report 2022-23
Tapping Opportunities With The Right Growth Levers

We are equipped with robust growth drivers, sound business practices, well-defined Governance, Compliance and Risk
Management frameworks to tap the growing opportunities while mitigating business risks and drive growth.
Our growth enablers
1. 2. 3. 4.
Our customer We offer a wide Our strong focus We extensively use
centricity is integral array of customised has been to emerge and adopt digital
to fulfilling financial products that includes as a leader in the technologies over
inclusion and creating inclusive finance growing granular our process spread
long-lasting value loans to affordable deposit franchise across the entire
for our customers housing loans customer lifecycle
Corporate Overview
apart from various to enhance our
deposits to serve customer journey
the needs of our
vast customer base
5. 6. 7.
Statutory Reports
We continue to remain Our diversified Our dynamic and
well capitalised with a distribution network accomplished
robust credit profile operates across management
and sound risk multiple digital and team has taken
management delivery channels our business to
mechanism spreading our new heights ably
reach far and wide supported by strategic
leaders across
different departments
The Way Ahead

Going forward in FY24, we aim to increase our Gross To increase our customer outreach, we would enter the
advances by ~30%, deposits by ~35% while generating ~2.2% household segment through the JLG model and later
of return on assets and 15% of return on equity, respectively. graduate the customer to an individual borrower and
eventually at the household level.
Also, we will strive to maintain our GNPA and net NPA level
below 2% and 0.5% respectively. We will continue strengthening our foothold in existing
states while slowly expanding our presence in new states
Leveraging our digital capabilities across multiple Apps, and keep increasing our branch network to widen our
we will continue our focus on product diversification and customer outreach. Additionally, we will work towards
bridge the gap between inclusive finance and non-inclusive converting our focussed branches into full-fledged
finance mix to maintain a strong ratio of 55:45 each while branches with deposit sourcing teams. We will also work
getting CGFMU cover for JLG and Vikas Loan apart from on the cross-selling and up-selling of our retail asset
building a robust Vikas loan book. products to our liability customers, making the latter a
full-service offering branch.
We would focus on engaging customers with their preferred
product apart from cross-selling our offering to them.
21
KEY FOCUS AREAS
How We Responded to the

Opportunities in the Sector
At Suryoday, we remain committed to growing our gross advances and
deposits portfolio to achieve higher profitability while driving growth and
creating long-term value to all our stakeholders.
Key Strategies
S1 S2 S3 S4
Expanding asset Consolidate retail liability Spread geographic Continue leveraging
portfolio and portfolio footprint and deepen digital capabilities and
maintaining focus on presence across existing technology to drive
secured lending locations growth
22
Annual
Report 2022-23
EXPANDING ASSET PORTFOLIO

AND MAINTAINING FOCUS ON
SECURED LENDING S1
We have progressively increased our loan book size In terms of asset quality, our GNPA and NNPA
while gradually intensifying the share of secured loans in substantially reduced from 11.8% and 6% in FY22
overall product mix. Our product mix includes group loans, to 3.1% and 1.5% respectively during FY23. As on
individual loans, commercial vehicle loans, affordable March 31, 2023, our total provision stood at ` 98.6 Crores
housing loans and secured business loans. indicating a coverage ratio of 51.5%. There have been
Corporate Overview
sequential improvements in our collection efficiency
During the year, we focussed on overall portfolio growth due to business and economy nearing pre-COVID levels,
which has resulted in the significant growth of both our resulting in a decline in the portfolio’s delinquency.
secured lending as well as the inclusive finance business. Our collection efficiency was at 102.2% in FY23.
Despite secured lending business being of longer tenure,
our portfolio had a higher mix of secured lending business
compared to the inclusive finance business at 39:61 in FY23.
23.1 Lakhs
During FY23, our AUM grew by ` 1,051 Crores at 20.8%
Statutory Reports
compared to ` 857 Crores in FY22 while disbursement
increased to ` 5,083 Crores in FY23 over ` 3,528
Total customer base
Crores in FY22.
` 6,114* Cr
Our strategic focus is on growing our Individual Loan -
Vikas Loan product which crossed ` 1,200 Crores with a
collection efficiency of over 99%. In FY24, we anticipate
AUM as on March 31, 2023
a higher growth in Vikas Loan portfolio compared to JLG
loans. The Bank boosted its disbursal across inclusive
` 5,083 Cr
finance segment and micro home loan segment while
undertaking expansive and concentrated measures with an
embedded focus on augmenting Vikas loan book size and
Disbursement for FY23
2-wheeler business loan, a newly introduced loan product.
3.1%
Our gross advances grew by 20.8% to ` 6,114* Crores on
a year-on-year basis. Inclusive finance comprised 61% of
the asset book, while affordable home loans, commercial GNPA in FY23
vehicles, and secured business loans accounted for 10.5%,
6.4% and 6.6% respectively.
These measures helped us acquire new customers across

segments during the year. Our customer outreach increased
1.5%
NNPA in FY23
from 19.2 Lakhs in FY22 to 23.1 Lakhs customers in FY23.
*Adjusted for ARC is ` 6,541 Crores with growth of 29.2%
23
CONSOLIDATE RETAIL
LIABILITY PORTFOLIO
S2
We have a strong foothold in the microfinance space sticky midsized CASA to strengthen the CASA mix and
having many inclusive finance business outlets. Each of raise deposits. The strategy has helped us to build our
these locations possesses great potential for expansion CASA base slowly and consistently. During FY23, the
and extension as liability franchise outlets. As such, CASA ratio stood at 17.1% compared to 18.8% in FY22.
we continued to grow our retail liability portfolio during
FY23. Additionally, we have focussed on leveraging our The Bank has been able to maintain low cost of deposit
asset outlets by collecting deposits and turning them into due to the retail participation.
deposit sourcing outlets for eventually cross-selling other
bank and insurance products to such customers while
catering to their every banking need.
Our total deposits stood at ` 5,167 Crores witnessing

a strong growth of 34.2% compared to ` 3,850 Crores
` 5,167 Cr
Deposit as on March 31, 2023
generated in FY22. Retail deposits at ` 3,778.6 Crores
comprise 73.1% of our total deposits in the current fiscal
while the balance relates to bulk deposits of ` 1,388
Crores at 26.9%.
73.1%
The Bank’s key focus was on granular deposits which Share of Granular retail deposits
comprise ~ 86% of our retail term deposits including CASA
which has a ticket size of less than ` 50 Lakhs.
In line with our granular retail strategy, our CASA strategy 17.1%
has been primarily focussing on gaining the real granular CASA ratio in FY23
24
Annual
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SPREAD GEOGRAPHIC
FOOTPRINT AND DEEPEN
PRESENCE ACROSS S3
EXISTING LOCATIONS
We continue to grow our presence and reach out to the
unbanked and underserved segments of the country.
We have a significant presence in the Western and
Southern regions and have continued to maintain our 324
Corporate Overview
focus on expanding our footprint across the Northern Branches (Asset-focussed)
regions. Operating mainly through our bank outlets,
which we regularly keep expanding, we serve the
95*
urban, semi-urban and rural sections of the country.
Our business correspondent partners (BCPs) assist us
in expanding our reach into existing and new territories, Branches (Liability-focussed)
including remote areas. Collaborating with our BCPs will
enable us to manage the rural belt while undertaking
158
strategic corporate business correspondent tie-ups
Statutory Reports
to strengthen our asset portfolio across the states we
operate, for increased outreach and operational efficiency.
Rural centres
Apart from these, we believe in promoting alternative
distribution and delivery channels like ATMs, phone
banking, mobile banking and Internet banking services
among others for a seamless customer journey.
As of March 31, 2023, we have 577 branches
catering to 4,673 pin codes covering about 24% of
India’s geographies. *Includes 26 Composite Branches
25
Pan India Presence
15 577
States and Banking
Union Territories Outlets (BO)
CG:1
HR1
DL:3
29
15
41 34
16
94
163
Geographical Mix of the Branches
2 Outlets Asset- Liability- URC Total
Focussed Focussed
Tamil Nadu* 64 22 17 103
73 1 Maharashtra 77 34 52 163
Odisha 28 10 56 94
Karnataka 45 11 17 73
103 Madhya Pradesh 27 2 5 34
Gujarat 36 5 0 41
States
Others 47 11 11 69
Banking Outlets Total 324 95 158 577
*Tamil Nadu includes Puducherry
Map not to scale. An illustrative representation only. Some of the URC branches are full-fledged asset branches
Way Forward would aim for gaining entry into the household through the
JLG model and later graduate the customer to an individual
Our strategic focus in FY24 will be to build on our FY23
borrower and eventually at the household level.
performance across our business categories by prioritising
a diversified growth approach with a specific focus on
These strategies would be in tandem with our geographical
Vikas Loans and Affordable Housing Loans. Also, to expansion and deepened penetration in existing markets.
strengthen our CASA deposits by converting our asset Apart from expanding our network, we will work towards
customers into complete banking customers. converting our focussed branches into full-fledged
branches with deposit sourcing teams. We will also work
Our product strategy would focus on engaging customers on the cross-selling and up-selling of our retail asset
with their preferred product apart from cross-selling our products to our liability customers, making the latter a
offering to them. To increase our customer outreach, we full-service offering branch.
26
Annual
Report 2022-23
CONTINUE LEVERAGING DIGITAL

CAPABILITIES AND TECHNOLOGY
TO DRIVE GROWTH S4
At Suryoday, we strive to implement a digital ecosystem,

improve operational excellence, and provide a superior
customer experience through our consistent efforts to
enhance technology and our digital front.
Corporate Overview
We continue to adopt digital technologies and analytics
and partner with fintech firms.
Our Dynamic Data Analytics Capabilities
1. Enable business and 2. Pin code related market

risk management analysis to tap emerging
Statutory Reports
focussed analytical markets
insights to analyse
customer behaviour 3. Static pool and overdue
by tracking their analytics
repayment capability
4. Insight-based Cohort
based on monthly
analysis
repayments to
multiple lenders
Our diverse technology platforms, enable us to seamlessly
manage various stages of customer journey right from
onboarding to transactions to customer management.
27
New Technology Platforms Launched
1. 3.
Loan Origination System (LOS) – Digital–Assisted
“Sarathi” for Vikas Loan Account Opening
The introduction of Sarathi App has laid a strong Launched e-FD opening, an assisted digital service,
foundation and been a milestone in the digitally whereby even a new customer can post e-authorisation for
transformation journey for us. All the currently KYC and open a Term Deposit via our Jyoti App available
introduced platforms enabling overall seamless internal with each bank staff.
management and allowing us to provide funnelled
service across entire customer journey cycle including
onboarding, transactions, grievance redressal, etc.
Sarathi App Features

• Ensures easy on-boarding of customers
• Back-end credit underwriting
• Improved TAT for loan origination and
disbursement
• Customer KYC captured via e-authorisation
through the App making the process almost
paperless
• Capturing household information facilitating
service to the entire household
2.
Digital Loan Repayment
Facility (UPI)
Introduced a new feature to help our customer
transfer funds into their Suryoday account through
UPI / other payment systems by simply transferring
the funds to “<Account Number>@Suryoday”.
Customers can now transfer money to their accounts and
make loan repayments online eliminating the need for
physical branch visit.
28
Annual
Report 2022-23
Robust Digital Initiatives FY23
• Our in-house digital transformation program,

Pragyan went live in August 2022
Introduced in-house Sarathi
App for capturing customer • Launched digital mapping exercise for the
household ‘Sarathi’ App for capturing house and
information at the household household details of a customer from a business
and house level perspective to reduce turnaround time and
improve product effectiveness and efficiency
• Partnered with a reputed technology services

provider to migrate our core banking solutions
to Finacle. The partnership will help support
Corporate Overview
and manage our data centres, infrastructure,
application and security among others for
increasing operational efficiency
• Collaborated with Paytm, Airtel and Fino for

providing a seamless end-to-end digital process
for current accounts, savings accounts and sweep
accounts. Have also undertaken fixed deposit
mobilisation relationship with Fino payments bank
Statutory Reports
• Engaging with multiple fintech firms for offering
digitally-enabled deposits, loan investments and
insurance products to enrich customer experience
• Partnering with various technology partners for

the tech-enabled assets and liability products
29
OUR PEOPLE
Empowering People Centricity

As a people-centric entity, our constant endeavour is to develop products
and processes to create long term value for all our stakeholders while also
achieving profitability and driving growth.
Fostering an Empowered Workforce our branches and outlets. We undertake various employee
We believe in fostering a positive and harmonious specific initiatives apart from regular learning and
work environment for achieving our broader purpose. development programmes to help upgrade their skills and
We regularly adopt measures to boost employee morale, career prospects.
satisfaction and well-being while making them feel
engaged and valued. Various HR interventions in FY23
We endeavoured to create a culture based on inclusivity
At Suryoday, our employees are encouraged to achieve amongst our employees to enable them to grow as the
their maximum potential both on the personal and ambassadors of the Bank for bringing smiles on the faces
professional front. For ensuring this, we maintain a safe, of all our stakeholders.
healthy and holistic workplace for our employees across all
During the year the following initiatives were undertaken:
• Product, Process, Skill Development and • Need-based External Training Programmes

New Hire Training programmes implemented on functional expertise to stay up-to-date for
across the organisation through virtual nominated employees
and physical modes
• Induction Programme for all employees which
• Training content simplified and imparted for covers Compliance, HR Policies, Prevention
Products, Soft Skills, Systems and Processes of Sexual Harassment, Customer Service
Excellence, Consumer Protection, Responsible
• Proactively conducted Cybersecurity Banking, Data Privacy Protection
Training across the organisation including
senior management to address the rise in • 21 days training programme for newly joined
cybercrime and the need for adherence to strict Management Trainees - Aarambh
cyber regulation
30
Annual
Report 2022-23
Employee Testimonials
I began my journey as a Credit Officer, a role that laid my

career’s foundation. Today, I proudly serve as the State
Head. Thinking about Suryoday’s evolution during my
Mr. Sudhir Parte tenure fills me with pride. The exceptional work culture at
State Head - Credit
Suryoday has played the most significant role in shaping
my achievements. Today, as I stand here, I see a promising
Inclusive Finance (Gujarat) journey ahead.
14 years have passed in the blink of an eye, marking my

service to this remarkable organisation. The engaging
Corporate Overview
environment at Suryoday has made time fly. I’m deeply
grateful to Suryoday Bank’s superiors for their support and
guidance throughout these years. My teammates deserve
equal appreciation; their collaboration has pushed me
through enriching experiences.
Being a part of the Suryoday family brings me joy.

The organisation recognises my potential and
offers growth opportunities aligned with my talents.
Statutory Reports
Looking ahead, I’m confident that Suryoday’s support will
help me further excel in my career.
Suryoday Bank has transparent leadership and great benefits.
After completing 13 years with Suryoday, I can say we get
more than promised and offered. Right from the employee
Mr. Narayan Bagadi benefits to the opportunity to learn and grow and the freedom
Collection Manager to apply our skills and ideas.
Maharashtra
Leadership and managers are very transparent and
approachable. I am proud to be part of the Suryoday family.
The Bank that truly values its employees and culture, and
that enables us as employees to grow and feel passionate
about our careers.
31
Reimagining Customer Interventions

At Suryoday, customer-centricity is core
to our mission of achieving financial
inclusion and expanding our customer
base. We constantly strive to reinvent our
strategies to develop innovative products
and adopt digital initiatives for seamless
and enriched customer experiences.
Unique Offerings
• Small ticket Fixed Deposits to customers

(minimum of ` 1,000) are offered and
processed through Customer Service Points
(CSPs) within 100 seconds
• End-to-end digital services are being offered

for Vikas loan product which helps the
customers undertake seamless transactions
right from sourcing to collection
• Natural Calamity Insurance for inclusive

finance customers for covering natural
disaster related losses and damages
• Recurring deposits for inclusive finance

consumers to get them to the mainstream
banking channel
• Increasing share of microloans and LAPs

across the total loan portfolio
32
Annual
Report 2022-23
Awards won in recognition of our digital

efforts in FY23
“Best Security Practices in

Small Finance Banks” category
by CISO Summit Awards 2023
GOLD “TRANSFORMATION
EXCELLENCE Core
Corporate Overview
Banking Transformation”
by Infosys Finacle
Innovation Awards 2023
Statutory Reports
Overall pleasant and The service provided is very

comfortable experience even nice. The Bank has friendly
for a senior citizen like me. management. The Bank
Staff are just a call away! supports woman staff and
are very humble.
T S Manohar
Mylapore, Tamil Nadu Jayalakshmi
Madurai, Tamil Nadu
33
CORPORATE SOCIAL RESPONSIBILITY
Empowering Communities
At Suryoday, we believe in fostering a positive and holistic
environment for our stakeholders and society. To serve our purpose,
we regularly undertake various CSR activities throughout the year
dedicated to serving and supporting the needs of underprivileged and
low-income communities.
Our CSR activities are majorly conducted through our Suryoday Foundation, wherein we focus on supporting
marginalised unserved and underserved low-income communities and improve their economic and social wellbeing.
FY23 CSR Initiatives

During the year programmes on Financial Literacy for
Domestic Workers, School Children and their parents,
supportive livelihoods, and health were implemented in
Maharashtra, Tamil Nadu, Odisha and Puducherry.
CSR programmes implemented in FY23
3 1
States Union Territory
Financial Literacy Programmes

We strongly believe that Financial Literacy is the
cornerstone for financial inclusion. Only when people
have the right information and confidence, they can
make informed decisions regarding money management
and the usage of formal financial services.
34,071
Beneficiaries of financial
literacy programmes
34
Annual
Report 2022-23
1. 2.
Building Financial Capability of Financial Literacy Programme for
Domestic Workers: Adhira School Children: Ujjwal
Financial Literacy programmes especially for Financial Literacy programme was conducted for
domestic workers were implemented in Mumbai and students from class 8th to 12th attending government
Navi Mumbai. Apart from providing training, domestic schools. The programme focussed on preparing the
workers were allowed access to different products children for their future, help them achieve their goals
from banks and social security services. This training and make them aware about money management.
was conducted in the slums and across seven
housing complexes in Mumbai and Navi Mumbai.
10,280
13,806
Corporate Overview
Students from 59 schools
Domestic Workers were

reached during FY23
Taking control of money

3.
Statutory Reports
Nanda is the only earning member in her family Building Financial Capability of
comprising of her husband and two sons.
Nanda goes for domestic work in the morning and
Parents: Swayamshree
by evening she runs a small chappal repairing We conducted financial Literacy programmes for
shop. Despite working hard, she did not have parents of students who attended the financial
a bank account and control over her money. literacy programme in school. The students partnered
She held a joint account with her husband, with parents to learn especially about building
which was used by her alcoholic husband, After digital literacy.
intervention of Suryoday Foundation, she opened
9,445
her own personal bank account. She availed
insurance, registered for Eshram & Abha cards and
also opened a recurring deposit account of ` 200.
Parents attending
Understanding the necessity of women like her, trainings
she encouraged 4 other women in her community
to avail the services. This has set a chain reaction.
Nanda Pramod Kadam 90% 10%

Women Men
35
4.
Healthy and Happy Families: Spandan
Despite several government initiatives and programmes,
many low-income households are still not aware about
113
Number of
their basic health parameters which are crucial for them.
Health Camps
To help such people, we undertook health awareness
Conducted in FY23
programmes during the year. These programmes aimed
7,070
to improve access to information on health and linkages
to services that will give people more control over their
own health and wellbeing. Health camps were also
conducted in partnership with private hospitals and
Number of People
government hospitals. covered
Focus Areas
• Anaemia
• Reproductive health
• Eyes
• Seasonal Infections
• Osteoporosis
• Dental
77 5.
Women given Supplementary
supplementary
livelihoods in FY23 Livelihoods: Udyojika
Supplementary livelihoods are given to women (domestic
workers, informal workers, marginal farmers) in rural
areas. The additional income could help them to save
and meet emergencies. Through this programme, we
engaged women as community trainers who in turn helped
mobilise other women for financial literacy programme,
distributing low-cost sanitary napkins and making
ecofriendly cloth bags.
36
Annual
Report 2022-23
6.
Quality Education for all
Children: VIDYA
A good learning environment helps in improving learning in
children. We offered infrastructure support to Navi Mumbai
Municipal Corporation (NMMC) Schools. The benefits
included installation of water filter, shed construction for
water filter, toilet blocks, setting up mini Science laboratory,
planting fruit trees, sport items, Bluetooth speakers, LED
projector, notebooks and compass boxes among others.
Corporate Overview
14
NMMC Schools covered
under infrastructure support
programme for providing quality
education in FY23
Statutory Reports
7.
Village Development:
VIKAS
Dhamole is a small tribal hamlet situated in Kharghar,
Navi Mumbai. It has nearly 100 households comprising
of Khatkari and Thakur tribals. Like most tribal hamlets,
Dhamole too is impacted by urbanisation – their
forest land is being covered by buildings. They do not
have land ownership and face fear of displacement.
The green cover has depleted and there is water scarcity.
Women spent nearly 1 to 2 hours daily in filling water.
The Anganwadi attended by 35 to 40 students was also
in poor condition. Towards helping this hamlet lead better
lives, we undertook installation of water lifting system and
renovation of Anganwadi.
37
GOVERNANCE
Robust Governance Framework

At Suryoday, we adhere to the highest standards of corporate governance
and adopt best industry practices towards fulfilling our broader goals.
Our Board of Directors along with the management regularly examine
and evaluate the corporate governance principles and ensure that every
employee abides by these rules.
Board of Directors
Mr. R Ramachandran Mr. Mrutunjay Sahoo Mr. Jyotin Mehta

Non-Executive Chairperson and Independent Director Independent Director
Independent Director
M C C M M M C M M M M
M M C M C C
Committees Name of the Committee

C Chairperson Audit Committee of Board Corporate Social Responsibility
Nomination and Remuneration Committee
M Member Committee Stakeholders’ Relationship
Risk Management Committee of Committee
Board *Special Committee of Board for
IT Strategy Committee Monitoring & Follow-up of cases
Credit Committee of Board of Frauds and Review of Wilful
Customer Service Committee Defaulters (SCBF & RWD)
* In the Board meeting held on March 24, 2023, the name of ‘Committee for Review of Wilful Defaults and High Value Frauds’ was changed to
‘Special Committee of Board for Monitoring & Follow-up of cases of Frauds and Review of Wilful Defaulters (SCBF & RWD)’.
38
Annual
Report 2022-23
Mr. John Arunkumar Diaz Mr. Krishna Prasad Nair Mr. Ranjit Shah
Independent Director Independent Director Investor Director
(with effect from July 22, 2021)
Corporate Overview
M M C M M M M M M M
M M C M M
Statutory Reports
Dr. Mandeep Maitra Mr. Baskar Babu Ramachandran
Independent Director Promoter, MD and CEO
M M C M M M M M M M M M
Board demography and independence
6 65 years 1
Number of Average Board age Number of woman
Independent Directors Director on Board
19 92%
Number of Board Board attendance
meetings held in FY23 in Board meetings
39
Leadership Team
Baskar Babu Ramachandran Narayan Rao Kanishka Chaudhary

MD & CEO Chief Services Officer Chief Financial Officer
Himanshu Mishra Senthil Kumar Gaurav Pawra

CBO – Retail Banking CBO – Wheels & Distribution Business Head – Mortgages
Sarveish Kharangate Sudhakar Mogera Vishwanath Bhat

Business Head – Inclusive Finance Head – FIG & Partnerships Head – Micro Home Loans
Rajesh Srivastava Radhika Gawde Anand Balaji

Head - Liability Products & Projects Chief Credit Officer Head - Inclusive Finance Credit
40
Annual
Report 2022-23
Krishna Kant Chaturvedi Yogesh Dixit Vibha Gawde

Company Secretary Chief Risk Officer Chief Audit Officer
Corporate Overview
Statutory Reports
Vishal Singh Sudheer Muvva Sasidhar Vavilala
Chief Information Officer Chief Technology Officer Head – Business Intelligence &
Analytics
Dhara Vyas R Mohan Narayan Thathai
Chief People Officer & Head – CSR Head – Legal Head – Treasury
Shankar Surender Vijay Vasudevan Deepak Jangid

Chief Compliance Officer Head – Business Solutions Group Head-Marketing & Corporate Communication
41
Risk Management
The Bank is exposed to various risks which broadly fall under one or more of the categories of Credit
Risk, Market Risk, Liquidity Risk, Operational Risk and Information Security Risk. The Chief Risk Officer
of the Bank is in charge of the risk management functions under the oversight of the Risk Management
Committee of the Board (RMCB). The Bank has a robust framework for risk management in the form of
regular review of products and processes by the Compliance team, periodic internal audit of processes
and operations, regular review of risk policies and periodic reporting to the RMCB and the Board.
The RMCB overviews the nature of the relevant risks, impact thereof on the business of the Bank,
implementation of the risk management policies and processes and reviewing of these Policies.
42
Annual
Report 2022-23
Directors’ Report
Dear Members,
Your Board of Directors (“Board”) present the Fifteenth Annual Report on the business and operations of the Bank together
with the Audited Financial Statements of the Bank for the financial year (“FY”) ended March 31, 2023.
FINANCIAL HIGHLIGHTS
The Bank’s performance during the FY ended March 31, 2023 as compared to the previous FY is summarized below:
(` in Crores)
Particulars FY 2022-23 FY 2021-22
Advances* 6,015.1 4,750.9
Deposits and borrowings 7,932.1 6,405.2
Corporate Overview
Total Income 1,281.1 1,035.4
Operating and Interest Expenses 943.6 770.5
Operating Profit 337.5 264.9
Provisions and Contingencies (including tax) 259.8 357.9
Profit for the year 77.7 (93.0)
Add: Surplus brought forward from previous year 112.0 205.2
Statutory Reports
Amount available for appropriation 189.7 112.1
Statutory Reserve under Section 17 of the Banking Regulation Act, 1949 19.4 -
Investment Fluctuation Reserve 18.8 -
Capital Reserve - 0.2
Surplus carried to Balance Sheet 151.4 112.0
EPS (Basic) 7.32 (8.76)
EPS (Diluted) 7.32 (8.76)
*Excluding ARC and Net of Provision
OVERVIEW OF OPERATIONS
The Net Interest Income of the Bank for the year was ` 746.6 Cost to Income ratio for the year ended March 31, 2023 was
Crores as compared to ` 584.5 Crores in the previous year. 60.0% as compared to 60.9% for the previous year. There was
The Bank has achieved a Profit of ` 77.7 Crores for the year a substantial improvement in Return on Assets from -1.29%
ended March 31, 2023, a significant improvement from the in FY22 to 0.87% in FY23 primarily driven by business growth
loss of ` 93.0 Crores in the year ended March 31, 2022. coupled with improved asset quality.
The Bank has a year-on-year basis growth of ` 170.7 Crores
in terms of profit. The number of banking outlets increased from 565
in March, 2022 to 577 in March, 2023 including 158
The Gross Loan Portfolio witnessed a jump of 20.8% to Unbanked Rural Centres.
` 6,114 Crores and there was a substantial rise in deposits
by 34.2% to ` 5,167 Crores. The retail deposits including The Bank was able to completely recover from the aftershocks
CASA constituted 73.1% of the overall deposits of the Bank. of the COVID-19 outbreak and lockdown. GNPA and NNPA
were back to pre-covid levels. There was an increase in
The Capital Adequacy Ratio (“CRAR”) was 33.7% as at disbursements by more than ` 1,500 Crores on a Y-o-Y basis.
March 31, 2023 (March 31, 2022: 37.9%) as compared to the Additionally, even the Net Interest Income (“NII”) witnessed
statutory minimum required 15%. a strong growth of 27.8% on a Y-o-Y basis.
43
Customer- related initiatives During the year, the Bank has not issued any equity shares
The Bank offers a suite of deposit and loan products catering with differential voting rights.
to various customer segments. During the year under
review, the Bank introduced the following products and DEBT INSTRUMENTS
collaborations: As at March 31, 2023, the Bank had one series of Debentures
issued on Private placement basis consisting of 1000 Nos.
Digital Tie-Ups of 12.5% Rated, Listed, Unsecured, Subordinated, Redeemable
• Partnerships with three Payment Banks to offer their Lower Tier II Bonds in the form of Non-Convertible Debentures
customers sweep account facilities and fixed deposits. having face value of ` 10 Lakhs each, amounting to ` 100
Crore which are listed on BSE Limited.
Women Savings Account
•
Launched Women’s Savings Account product with CREDIT RATINGS OF VARIOUS INSTRUMENTS
added benefits and better returns on savings account. The ratings assigned by ICRA/ and CRISIL for various
instruments are:
DIVIDEND
Considering the need to preserve capital to support growth
Instrument Rating Rating agency
and expansion, the Board of Directors did not recommend a
dividend payout for the FY ended March 31, 2023. Long term issuances/ A (Stable) ICRA
Long Term issuances
(NCD/Sub-Debt)
TRANSFER TO RESERVES
Certificate of Deposits A 1 + (A One Plus) ICRA
As per requirement of RBI regulations, the Bank has
transferred the following amounts to various reserves during Certificate of Deposits A 1 + (A One Plus) CRISIL
FY ended March 31, 2023:
CAPITAL ADEQUACY RATIO
Amount transferred to ` in Crores • As per operating guidelines for Small Finance banks,
Statutory Reserve 19.4 the Bank is required to maintain a minimum Capital
Adequacy Ratio (CRAR) of 15% with minimum Common
Capital Reserve 0
Equity Tier I (CET I) of 6%.
Investment Fluctuation Reserve 18.8
• As at March 31, 2023, the Capital Adequacy Ratio of
CHANGE IN NATURE OF BUSINESS
the Bank stood at 33.7%, well above the regulatory
There has been no change in the nature of business of the minimum requirement of 15%. Tier I ratio of the Bank
Bank during the year under review. stood at 30.8% well above regulatory requirement of 6%
and Tier II capital was at 2.9%.
SHARE CAPITAL
Authorised capital: PERFORMANCE AND FINANCIAL POSITION OF
During the year under review, there was no change in the SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE
Authorised Share Capital of the Bank and as at March 31, COMPANIES
2023, the Authorized Share Capital stood at ` 125,00,00,000
The Bank did not have any subsidiary, associate or joint
(Rupees One hundred and twenty-five Crores) divided into
venture company during the FY 2022-23. Accordingly, no
12,50,00,000 (Twelve Crores fifty lakh) equity shares of ` 10
statement is required to be reported in Form AOC-1.
(Rupees Ten) each.
ANNUAL RETURN
Paid up Capital:
During the year under review, there was no change in the The Annual Return as mandated under the provisions
Paid-up Capital of the Bank and as at March 31, 2023, the of Section 92(3) read with Section 134(3) of the
Paid-up Capital stood at ` 106,15,87,490 (Rupees One Companies Act, 2013 (“the Act”) in prescribed Form
hundred six Crores fifteen lakh eighty-seven thousand four MGT-7 is available on the website of the Bank and the
hundred and ninety only) divided into 10,61,58,749 (Ten same can be accessed at https://www.suryodaybank.
Crores sixty one lakh fifty eight thousand seven hundred com/shareholders-meeting-agm-view-23-24/MGT-7-
and forty nine) equity shares of ` 10 (Rupees Ten) each. Annual-Return-Financial-Year-2022-23.pdf
44
Annual
Report 2022-23
BOARD OF DIRECTORS (vi)

The Bank has received approval from the Reserve
The composition of the Board is governed by the Bank of India (“RBI”) on December 26, 2022 vide RBI
provisions of the Act, the Banking Regulation Act, 1949 (the letter No. DoR.GOV.No.S6124/29.44.006/2022-23, for
“BR Act”), the Securities and Exchange Board of India (Listing re-appointment of Mr. Baskar Babu Ramachandran
Obligations and Disclosure Requirements) Regulations, 2015 (DIN:02303132), as the Managing Director & CEO of
(“SEBI Listing Regulations”), other applicable laws and the the Bank, for a further period of three (3) years effective
Articles of Association of the Bank. As on March 31, 2023, from January 23, 2023, to January 22, 2026.
the Board of the Bank had eight Directors, of which six were
Independent Directors, one Non-Executive Non-Independent (vii) Mr. Ranjit Jayant Shah (DIN: 00088405), Non-Executive
Director and one Managing Director & Chief Executive Officer Non-Independent Director, being liable to retire by
(“Managing Director & CEO”). rotation at the ensuing AGM of the Bank, and being
eligible, has offered himself for re-appointment.
The certificate pursuant to Regulation 34(3) and sub-clause The Board of Directors at their meeting held on
(i) of Clause 10 of Part C of Schedule V of the SEBI Listing July 26, 2023, basis the recommendation of the
Regulations for the FY ended on March 31, 2023 from Nomination and Remuneration Committee, has
Mr. Tushar Shridharani, Practicing Company Secretary, (FCS recommended the re-appointment of Mr. Ranjit Jayant
Corporate Overview
2690 / COP 2190) confirming that none of the Directors on Shah as Non-Executive Investor Director, liable to
the Board of the Bank have been debarred or disqualified retire by rotation.
from being appointed or continuing as Directors of the Bank,
is attached as Annexure 1 to this Report. KEY MANAGERIAL PERSONNEL
As of March 31, 2023, Mr. Baskar Babu Ramachandran,
During the year under review: Managing Director & CEO, Mr. Kanishka Chaudhary,
Chief Financial Officer and Mr. Krishna Kant Chaturvedi,
(i) Mrs. Meena Hemchandra (DIN:05337181) Independent Company Secretary & Compliance Officer were the Key
Statutory Reports
Director, has resigned from the position of an Managerial Personnel of the Bank in terms of Section 203(1)
Independent Director of the Bank w.e.f. May 23, 2022. of the Act and Rule 8 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
(ii)
Dr. Mandeep Maitra (DIN:06937451) has been
appointed as Non-Executive Independent Director for Ms. Geeta Krishnan ceased to be Company Secretary &
a period of five years effective from July 28, 2022 to Compliance Officer of the Bank with effect from close
July 27, 2027, at the Fourteenth (14th) Annual General of business hours on April 30, 2022 on account of her
Meeting (“AGM”) of the Bank held on August 26, 2022. superannuation and Mr. Krishna Kant Chaturvedi was
appointed as Company Secretary & Compliance Officer of
(iii) Mr. Ranjit Jayant Shah (DIN 00088405), Investor the Bank with effect from May 2, 2022.
Director, was re-appointed at the Fourteenth (14th)
AGM of the Bank held on August 26, 2022, and is liable MEETINGS OF THE BOARD OF DIRECTORS/
to retire by rotation. COMMITTEES OF THE BOARD
During the year under review, Nineteen (19) Meetings of the
(iv) Mr. Aleem Remtula (DIN:02872107), Investor Director, Board of Directors were held and the gap between any two
has resigned from the position of Director w.e.f. meetings were well within the statutorily permissible limits.
September 01, 2022. The details of meetings of the Board and Board Committees
together with the attendance are detailed in the Corporate
(v) Mr. Jyotin Kantilal Mehta (DIN:00033518) was Governance Report.
re-appointed as Non-Executive Independent Director
of the Bank for a period of three (3) years effective from STATEMENT ON DECLARATION BY INDEPENDENT
August 31, 2022 to hold office upto August 30, 2025 DIRECTORS
at the 14th AGM held on August 26, 2022. Further, in
All the Independent Directors have submitted the required
accordance with the provisions of BR Act, the tenure
declarations that they meet the criteria of Independence as
of total 8 years of Mr. Jyotin Kantilal Mehta as a
laid down under Section 149(6) of the Act and Regulation
Director on the Board of the Bank would be completed
16(1)(b) and Regulation 25(8) of the SEBI Listing Regulations.
on February 12, 2025 considering his original date of
The Board had assessed the veracity of the confirmations
appointment as February 13, 2017. Accordingly, he
submitted by the Independent Directors, as required
would hold office as an Independent Director of the
under Regulation 25(9) of the SEBI Listing Regulations.
Bank upto February 12, 2025.
45
In the opinion of the Board, all the Independent Directors are attending the meetings of the Board and its Committees,
independent of the Management. which is determined by the Board based on applicable
regulatory provisions. Further, expenses incurred by them for
During the year, there has been no change in the attending meetings of the Board and Committees, if any, are
circumstances affecting their status as Independent reimbursed at actuals.
Directors of the Bank and they are not debarred from
holding the office of Director under any SEBI Order or any PERFORMANCE EVALUATION OF THE BOARD
other such authority.
Pursuant to the provisions of Section 178(2) read with
Schedule IV of the Act and Regulation 19 of SEBI Listing
STATEMENT REGARDING OPINION OF THE BOARD
Regulations and SEBI Guidance Note on the Board Evaluation
WITH REGARD TO INTEGRITY, EXPERTISE AND
dated January 05, 2017 and as per the performance
EXPERIENCE (INCLUDING THE PROFICIENCY) OF THE
evaluation framework approved by the Nomination &
INDEPENDENT DIRECTORS APPOINTED DURING THE
Remuneration Committee (“NRC”) and also concurred
YEAR
by the Board, the Bank has carried out the performance
In the opinion of the Board, the Independent Directors are
evaluation of the Directors including Chairman, Managing
persons of integrity and possess the requisite experience,
Director & CEO, Board Level Committees and Board as a
expertise and proficiency required under all applicable laws
whole for the FY 2022-23.
and the policies of the Bank.
The criteria for the performance evaluation of the
POLICY ON APPOINTMENT AND REMUNERATION OF
Board include various aspects, such as structure,
DIRECTORS, KEY MANAGERIAL PERSONNEL AND
meetings, appointments, agenda, discussions, roles and
SENIOR MANAGEMENT
responsibilities, evaluation of risks, strategy, governance
As per the provisions of sub-section (3) of Section 178 of the and compliance, conflict of interest, etc. Further, the criteria
Act, the Bank has a Policy on appointment of Directors and for performance evaluation of the Board Committees
Senior Management employees which includes formulating
include various aspects, such as, mandate and composition,
criteria for determining qualifications, attributes and
effectiveness, meetings, agenda, minutes, discussion and
independence of a Director. This Policy has been disclosed
dissent, independence, etc.
on the Bank’s website at:- https://www.suryodaybank.com/
assets/pdf/policies/Suryoday_Policy_on_Appointment_
The criteria for the performance evaluation of the
of_Directors_and_Senior_Managerial_Personnel_
Directors include various aspects, such as, knowledge and
FY22-23_1.0.pdf.
competence, skill sets, expertise, integrity, functioning,
contribution towards Board deliberations & decision-making
The Board has, in accordance with the RBI guidelines on
process, attendance, teamwork, corporate governance, etc.,
compensation, formulated the Compensation Policy which
and in case of Independent Directors, additional parameters
became effective in FY 2020-21. The Compensation Policy
include fulfilment of the criteria of independence, integrity
institutes a mechanism for alignment of compensation of
Whole-time Directors, Chief Executive Officer, Material Risk and their independence from the management.
Takers, Control Function Staff and other Senior Managerial
All Directors provided their responses to the questionnaires
Personnel with the extent of risks taken. The Policy also
based on the aforesaid criteria. Further, at a separate
establishes standards of compensation including fixed
and variable, which are in alignment with the applicable meeting of the Independent Directors, the performance of
rules and regulations including the RBI guidelines in this non-independent Directors and the performance of the Board
regard and which is based on the trends and practices as a whole were reviewed based on the abovementioned
of remuneration prevailing in the banking industry. criteria. The report on Board Evaluation was placed before
The remuneration of Whole-time Directors, Material Risk the NRC and Board. The Chairman of the Board and the
Takers, Key Managerial Personnel and Senior Management Chairperson of the NRC and an Independent Director who
is governed by the Compensation Policy of the Bank. chaired the meeting of the Independent Directors took the
This Policy has been disclosed on the Bank’s website at:- lead in the process of evaluation and shared the feedback
https://www.suryodaybank.com/assets/pdf/policies/ to the Board. The Board deliberated upon the outcome of
Compensation-Policy.pdf. the evaluation report and found the performance of the
Board as a whole, the Board Committees, the Chairman, the
The Non-Executive Directors including Independent Managing Director & CEO and other individual Directors to
Directors are paid remuneration by way of sitting fees for be satisfactory.
46
Annual
Report 2022-23
FAMILIARISATION PROGRAMMES FOR INDEPENDENT INTERNAL FINANCIAL CONTROLS (IFC) WITH

DIRECTORS REFERENCE TO THE FINANCIAL STATEMENTS
The details of the familiarisation programme(s) for the The Board has reviewed the adequacy and effectiveness of
Independent Directors of the Bank have been provided the Bank’s internal financial controls with reference to its
separately in the Report on Corporate Governance forms part financial statements. During the year under review, there
of the Annual Report. were no material or serious observations with respect to the
inefficiency or inadequacy of such controls.
EMPLOYEES STOCK OPTION SCHEME AND OPTIONS
GRANTED DURING FY 2022-23
MATERIAL CHANGES AND COMMITMENTS,
Presently, the Bank is having two ESOP Schemes i.e., AFFECTING THE FINANCIAL POSITION OF THE BANK
1) Employee Stock Option Scheme 2016 2) Suryoday
There are no material changes and commitments, affecting
ESOP Scheme-2019.
the financial position of the Bank subsequent to the close of
The applicable disclosure with regard to Employee Stock the FY 2022-23.
Option granted during FY 2022-23 is provided in Annexure
DIRECTORS’ RESPONSIBILITY STATEMENT:
Corporate Overview
2 to this report.
Pursuant to Section 134(3)(c) read with Section 134(5) of the
PARTICULARS OF LOANS, GUARANTEES OR Act, the Board of Directors of the Bank hereby confirms that:
INVESTMENTS
a. in the preparation of the annual accounts, the applicable
Pursuant to Section 186(11) of the Act, loans made,
accounting standards have been followed along with
guarantees given, securities provided or acquisition of
securities by a banking company in the ordinary course of proper explanation relating to material departures;
its business are exempted from the disclosure requirement b. they have selected such accounting policies and applied
under Section 134(3)(g) of the said Act. Details of Investments them consistently and made judgments and estimates
Statutory Reports
are given in Schedule 8 to the Financial Statements forms that are reasonable and prudent so as to give a true
part of the Annual Report.
and fair view of the state of affairs of the Bank as on
March 31, 2023 and of the profit of the Bank for the year
PARTICULARS OF CONTRACTS OR ARRANGEMENTS
ended on that date;
WITH RELATED PARTY
During the year under review, there were no contracts or c. they have taken proper and sufficient care for the
arrangements with related parties as referred to under maintenance of adequate accounting records
Section 188(1) of the Act. in accordance with the provisions of this Act for
safeguarding the assets of the Bank and for preventing
RISK MANAGEMENT FRAMEWORK and detecting fraud and other irregularities;
The Bank is exposed to various risks which broadly fall under
d.
the annual accounts are prepared on a going-
one or more of the categories of Credit Risk, Market Risk,
Liquidity Risk, Operational Risk and Information and Cyber concern basis;
Security Risk etc. The Chief Risk Officer of the Bank is in e. the requisite internal financial controls followed by the
charge of the risk management functions under the oversight Bank are adequate and were operating effectively;
of the Risk Management Committee of the Board (“RMCB”).
The Bank has a robust framework for risk management in f. proper systems have been devised to ensure compliance
the form of regular review of products and processes by with the provisions of all applicable laws and that such
the Compliance team, periodic internal audit of processes systems were adequate and were operating effectively.
and operations, regular review of risk policies and periodic
reporting to the RMCB and the Board. The RMCB overviews MANAGEMENT DISCUSSION & ANALYSIS
the nature of the relevant risks, impact thereof on the business The Report on Management Discussion & Analysis for FY
of the Bank, implementation of the risk management policies 2022-23, as stipulated in SEBI Listing Regulations forms part
and processes and reviewing of these Policies. of the Annual Report.
47
CORPORATE GOVERNANCE The Report, given by the Statutory Auditors on the financial
The Bank is committed to establishing and adhering to the statements of the Bank for the FY ended on March 31,
best Corporate Governance practices in accordance with 2023, forms part of the Annual Report. There has been no
the rules and regulations applicable to the Bank. The Report qualification, reservation, adverse remark or disclaimer given
on Corporate Governance along with the Certificate issued by the Auditors in their Report. Also, no offence of fraud
by Mr. Tushar Shridharani, Secretarial Auditors of the Bank was reported by the Auditors of the Bank under Section
confirming compliance with the Corporate Governance 143(12) of the Act.
requirements under Regulation 34 and other applicable
provisions of the SEBI Listing Regulations forms part of As per para 6.1 of the RBI Circular No. RBI/2021-22/25 Ref.
the Annual Report. No.DoS.CO.ARG/SEC.01/08.91.001/ 2021-22 dt. April 27,
2021, the Committee of the Board shall monitor and assess
CORPORATE SOCIAL RESPONSIBILITY (CSR) the independence of the Auditors and conflict of interest
INITIATIVES position in terms of relevant regulatory provisions, standards
During the year under review, the Bank undertook a major and best practices. Accordingly, the Audit Committee and
part of its CSR initiatives through an implementing agency the Board of Directors at their meetings held on May 15, 2023
viz. Suryoday Foundation. The CSR activities undertaken have reviewed the performance of the Statutory Auditors
during the year were Financial Literacy programs, Women and found the same to be satisfactory and that they were
Empowerment, Rural Livelihoods, environment and acting independently without conflict of interest with
community engagement programs. The details of CSR the management.
activities in FY 2022-23 including those of ongoing projects
are mentioned in the prescribed format and attached as Further, as per para 3.1 of the said RBI Circular, the Bank
Annexure 3 to this Report. is required to take prior approval of the RBI for their
continuation on an annual basis. Accordingly, the Bank has
BUSINESS RESPONSIBILITY AND SUSTAINABILITY sought and received approval from the RBI for continuation
REPORT of M/s. Walker Chandiok & Co LLP, Chartered Accountants
In terms of Regulation 34(2)(f) of the SEBI Listing (FRN 001076N/ N500013), as Statutory Auditors to the Bank
Regulations, the top 1000 listed companies based on for FY 2022-23.
their market capitalisation as on March 31, every fiscal
year, are mandatorily required to submit a Business SECRETARIAL AUDITORS AND THEIR REPORT
Responsibility and Sustainability Report (“BRSR”) on the Pursuant to the provisions of Section 204 of the Act, the Board
environmental, social and governance disclosures as part has appointed Mr. Tushar Shridharani, Practising Company
of their Annual Report. The said Report describing the Secretary (C.P. 2190) as Secretarial Auditor to conduct
initiatives undertaken by the Bank from environmental,
Secretarial Audit of the Bank for FY 2022-23. The Secretarial
social and governance perspective has been uploaded on
Audit Report for FY 2022-23 is annexed to this Directors’
the website of the Bank and the same can be accessed
Report as Annexure 4. The report is self-explanatory and does
at https://www.suryodaybank.com/shareholders-meeting-
not contain any qualification, reservation or adverse remark.
agm-view-23-24/Business-Responsibility-Report-2022-23.pdf.
The Bank has complied with the prescribed Secretarial
As stipulated in SEBI Listing Regulations, the Business
Standards on meetings of the Board and its Committees
Responsibility and Sustainability Report describing the
(SS-1) and General Meetings (SS-2) issued by the Institute
initiatives undertaken by the Bank from environmental,
of Company Secretaries of India for the FY ended
social and governance perspective is forms part of
the Annual Report. March 31, 2023.
STATUTORY AUDITORS AND THEIR REPORT INFORMATION UNDER THE SEXUAL HARASSMENT
OF WOMEN AT WORKPLACE (PREVENTION,
M/s. Walker Chandiok & Co LLP, Chartered Accountants (FRN
PROHIBITION AND REDRESSAL) ACT, 2013
001076N/ N500013), were appointed as Statutory Auditors
of the Bank with the approval of the RBI at the Thirteenth The Bank has adopted a Policy for Prevention of Sexual
AGM held on September 20, 2021 to hold office from the Harassment (“POSH Policy”) at the workplace under the
conclusion of the Thirteenth AGM until the conclusion of the Sexual Harassment of Women at Workplace (Prevention,
Sixteenth AGM of the Bank for the audit of the accounts of Prohibition and Redressal) Act, 2013. An Internal Complaints
the Bank for FY 2021-22 to FY 2023-24, subject to approval Committee (“ICC”) has been constituted in compliance
of the RBI for re-appointment on annual basis. with the provisions of the Act and the POSH Policy to
48
Annual
Report 2022-23
review, investigate and take suitable action on complaints. There was foreign exchange outgo of ` 26,76,718.
An Appellate Committee has also been constituted under the Further, there were no earnings in foreign exchange.
Policy before whom a complainant who is not satisfied with
the decision of the ICC can prefer an appeal. DEPOSITS
Being a banking company, the disclosures relating to deposits
Details of complaints received and resolved by the ICC during as required as per Rule 8(5)(v) & (vi) of the Companies
the FY 2022-23 are as follows: (Accounts) Rules, 2014, read with Section 73 to 76 of the Act
are not applicable to the Bank.
Number of complaints pending at the beginning 1
of the year MAINTENANCE OF COST RECORDS
Number of complaints received during the year 1 The cost records as specified by the Central Government
under Section 148(1) of the Act, are not applicable to the Bank.
Number of complaints disposed of during the 2
year
DETAILS IN RESPECT OF FRAUDS, IF ANY, REPORTED
Number of complaints pending at the end of the 0 BY AUDITORS
of the year
Corporate Overview
During the year under review, no frauds have been reported
by the Statutory Auditors or the Secretarial Auditors under
During the year, there were no appeals filed under
Section 143(12) of the Act.
the said Policy.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY
DIVERGENCE IN ASSET CLASSIFICATION AND
THE REGULATORS OR COURTS OR TRIBUNAL
PROVISIONING FOR NPAs
There are no significant or material orders passed by the
No disclosure on divergence in asset classification and
Regulators or Courts or Tribunal which would impact the
provisioning for NPAs is required with respect to RBI’s
going concern status of the Bank or its future operations.
Statutory Reports
supervisory process for the year ended March 31, 2023 in
terms of the requirements prescribed in RBI circular. AWARDS AND RECOGNITIONS:
During the year under review, the Bank was recognised in
VIGIL MECHANISM/ WHISTLE BLOWER POLICY
various ways/by several institutes. Some of the key awards
The Bank has in place a Whistle Blower Policy which has won by the Bank are listed below:
been formulated as part of corporate governance norms
and transparency where employees, customers and other • Best end to end security in BFSI by Quantic India -
stakeholders of the Bank including Non-Governmental Business Media Company.
Organizations (“NGOs”) are encouraged to voice genuine Transformation
• Excellence - Core Banking
concerns of grievances about unprofessional conduct Transformation - Infosys Finacle Innovation
without the fear of reprisal to the person raising the concern Awards 2023.
• Best Security Practices Small Finance Bank – India
The Policy provides a framework to promote responsible CISO Summit & Awards 2023.
and secure whistle blowing with respect to any breach or
violation of the Bank’s Code of Conduct on any matter. PARTICULARS OF EMPLOYEES
The statement containing particulars of employees as
Please refer https://www.suryodaybank.com/assets/pdf/
required under Section 197(12) of the Act read with Rule
policies/Suryoday_Whistle_Blower_Policy_FY22_23_1.0.pdf 5(3) of the Companies (Appointment and Remuneration of
for text of the Policy. The functioning of the Whistle Blower Managerial Personnel) Rules, 2014 forms part of this report.
mechanism is subject to review by the Audit Committee. In terms of Section 136 of the Act, the same would be available
for inspection during working hours at the Registered Office
During the year under review, no complaints were received of the Bank. A copy of this statement may be obtained by the
under this Policy. Members by writing to the Company Secretary of the Bank.
CONSERVATION OF ENERGY, TECHNOLOGY The ratio of the remuneration of each Director and employees
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND of the Bank as required under the provisions of Section
OUTGO 197(12) of the Act read with Rule 5(1) of the Companies
During the year, the Bank did not undertake any activity (Appointment and Remuneration of Managerial Personnel)
relating to conservation of energy or technology absorption. Rules, 2014, are forming part of this report as Annexure 5.
49
ACKNOWLEDGEMENTS the year and look forward to their continued contribution in

The Board of Directors of your Bank would like to place building this ‘Bank of Smiles’ into a world class organization.
on record their sincere gratitude for the guidance and
co-operation received from the RBI, SEBI, Stock Exchanges, For and on behalf of the Board
Depositories and other statutory and regulatory authorities
and thank all the stakeholders of the Bank including the
investors, customers, bankers, shareholders, debenture Ramachandran Rajaraman Baskar Babu Ramachandran
holders, vendors, trustees, Registrars and all other valued Part-time Chairperson & Managing Director & CEO
partners for their continued support. The Board also Independent Director [DIN 02303132]
would like to express their appreciation for the sincere and [DIN 01953653]
dedicated efforts put in by all the employees of the Bank
at all levels during the challenging situation faced during Date: August 10, 2023
50
Annual
Report 2022-23
Annexure 1
10th August, 2023

To,
The Board of Directors
Unit no.1101, Sharda Terraces, Plot No.65
Sector 11, CBD Belapur
Navi Mumbai - 400 614
Subject: Certificate in pursuance of Regulation 34(3) read with clause (10)(i) of Para C of Schedule V of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, for the financial year ended on 31st March, 2023.
Dear Sir/Madam,
Corporate Overview
1. Sub-clause (i) of Clause 10 of Part C of Schedule V of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 requires a listed entity to obtain a certificate from the Company Secretary
in practice, disclosing that none of the directors on the board of the company have been debarred or disqualified from
being appointed or continuing to act as directors of companies, by the Securities and Exchange Board of India / Ministry
of Corporate Affairs or any such statutory authority.
2. As on date of issue of this certificate, the Board of Directors of Suryoday Small Finance Bank Limited (“the Company”),
a listed entity, is comprised of following Directors.
Statutory Reports
Sr. No. Name of Director Designation Appointment Date
1. Mr. Ramachandran Rajaraman Non-Executive Part-time Chairman 07-06-2014
2. Mr. Mrutunjay Sahoo Director 01-12-2015
3. Mr. Jyotin Kantilal Mehta Director 13-02-2017
4. Mr. Ranjit Jayant Shah Nominee Director 02-11-2018
5. Mr. Baskar Babu Ramachandran Managing Director & CEO 10-11-2008
6. Mr. John Arunkumar Diaz Director 16-12-2019
7. Mr. Krishna Nair Prasad Director 22-07-2021
8. Ms. Mandeep Maitra Director 28-07-2022
3. I have been engaged to provide a certificate to the Company as referred in paragraph -1– as mentioned above.
4. For the purpose; I have considered and examined annual submissions made by each Director of the Company
in pursuance of provisions of Section 164(2) read with rule 14(1) of Companies (Appointment and Qualification of
Directors) Rules, 2014, relevant information as displayed on the website of the Securities and Exchange Board of India
as well on the website of the Ministry of Corporate Affairs and information generally available on public domain.
5. And based on above; I state that none of the Directors on the board of the Company has been debarred or disqualified
from being appointed or continuing as director of companies for the financial year ending on 31st March, 2023, by the
Securities and Exchange Board of India / Ministry of Corporate Affairs or any such statutory authority.
(Tushar Shridharani)
Practicing Company Secretary
FCS 2690 / COP 2190
Peer Review Certificate No.: 1509/2021
UDIN – F002690E000766959
Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the management
of the Company. My 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 the management has
conducted the affairs of the Company.
51
Annexure 2
Employees Stock Options as on March 31, 2023.

ESOP Opening Options Options Options Options Amount No. of No. of No. of
Scheme balance granted vested forfeited/ exercised and Received* options outstanding outstanding
of options during during lapsed during shares allotted (` in lakhs, outstanding options at the options at the
(1.4.2022) the year the year the year during the year inclusive of at the end end of the end of the year
premium) of the year year (vested) (yet to be vested)
ESOP 4,43,302 Nil 39,825 1,61,288 0 0 2,73,663 2,71,163 2,500
Scheme
2016*
ESOP 15,72,135 14,33,850 3,14,484 7,70,975 0 0 22,30,560 5,21,760 17,08,800
Scheme
2019**
Total 20,15,437 14,33,850 3,54,309 9,32,263 0 0 25,04,223 7,92,923 17,11,300
Note: There was no exercise of options granted under the ESOP Scheme-2016 & ESOP Scheme-2019 during the FY 2022-23.
Employee-wise details of options granted during the year under ESOP Scheme -2019:
1. Key Managerial Personnel:
Name of employee Designation Number of Options
Kanishka Chaudhury Chief Financial Officer 1,08,000
Krishna Kant Chaturvedi Company Secretary 35,000
2. Any other employee who received grant of option amounting to 5% or more of options granted during that year:
Name of employee Designation Number of Options
Senthil Kumar Chief Business Officer - Vehicle and Equipment Finance 1,25,000
Kanishka Chaudhury Chief Financial Officer 1,08,000
3. Identified employees who were granted options, during any one year, equal to or exceeding 1% of the issued capital
(excluding outstanding warrants and conversions) of the bank at the time of grant: Nil
52
Annual
Report 2022-23
Annexure 3
The Annual Report on CSR Activities during the financial year 2022-23
1. Brief outline on CSR Policy of the Bank:
The Corporate Social Responsibility Policy (CSR Policy) of the Bank sets out the broad framework guiding the Bank’s
CSR activities. The Policy also sets out the principles and the rules that need to be adhered to while taking up and
implementing CSR activities to be undertaken as specified in Schedule VII of the Companies Act, 2013 (excluding the
activities pursued in the normal course of business) and the expenditure thereon.
2. Composition of CSR Committee:

Sl. Name of Director Designation / Nature Number of meetings Number of
No. of Directorship of CSR Committee meetings of CSR
held during the year Committee attended
Corporate Overview
during the year
1. Dr. Mandeep Maitra Independent Director- 1 1
(w.e.f. September 08, 2022) Chairperson of the committee
2. Mr. R. Ramachandran Independent Director 3 3
3. Mr. Mrutunjay Sahoo Independent Director 3 3
4. Mr. Aleem Remtula Investor Director 2 2
(upto August 31, 2022)
Statutory Reports
5. Mrs. Meena Hemchandra Independent Director 1 1
(upto May 22, 2022)
6. Mr. Baskar Babu Ramachandran Managing Director & CEO 3 3
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the Board are
disclosed on the website of the company.
i. web-link for Composition of CSR committee: https://www.suryodaybank.com/assets/pdf/policies/
Board-Committees.pdf
ii. web-link for CSR Policy : https://www.suryodaybank.com/assets/pdf/policies/Corporate-Governance-
Policies-CSR-Policy.pdf
iii. web-link for CSR projects : https://www.suryodaybank.com/about-us#corporate
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the
Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report). Not Applicable
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social
responsibility Policy) Rules, 2014 and amount required for set-off for the financial year, if any
Sl. Financial Year Amount available for set-off Amount required to be set-off
No. from preceding financial years for the financial year, if any
(` in lakhs) (` in lakhs)
1 2019-20 NIL NIL
2 2020-21 16.24 16.24
3 2021-22 2.96 2.96
Total 19.20 19.20
53
6. Average net profit of the company as per section 135(5): ` 13,00,20,002

7. (a) Two percent of average net profit of the company as per section 135(5) ` 26,00,400
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years. NIL
(c) Amount required to be set-off for the financial year, if any: ` 2,96,546
(d) Total CSR obligation for the financial year (7a+7b-7c). ` 23,03,854
8. (a) CSR amount spent or unspent for the financial year:
Amount Unspent (in `)

Total Amount
Total Amount transferred to Unspent Amount transferred to any fund specified under Schedule VII
Spent for
CSR Account as per section 135(6) as per second proviso to section 135(5)
the Financial
Year (` in lakhs) Amount Date of transfer Name of the Fund Amount Date of transfer
23,14,459 NIL Not Applicable Not Applicable NIL Not Applicable
b) Details of CSR amount spent against ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sl. Name of Item from Local Location Project Amount Amount Amount Mode of Mode of
No. the Project the list of area of the project duration allocated spent in the transferred to Implementa- Implementation - Through
activities in (Yes/ for current Unspent CSR tion Direct Implementing Agency
Schedule No) the project financial Account for the (Yes/No)
State District Name CSR
VII (` in lakhs) Year project as per
Registration
to the Act (` in lakhs) Section 135(6)
number
(` in lakhs)
1 Projects 1,2,3 Yes Maharashtra 2 years 160.00 63.00 00.00 No Suryoday CSR00002727
undertaken (Mumbai), Foundation
by Tamil Nadu
Suryoday (Chennai and
Foundation Cuddalore),
Pondicherry,
Odisha
(Cuttack,
Khorda)
2 Rotary Club 1 Yes Tamil Nadu 3 years 25.00 9.00 7.00 No Rotary Club CSR00000997
of Madras (Chennai) of Madras
Charitable Charitable
Trust Trust
Total 185.00 72.00 7.00
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8)
Sl. Name of the Item from the Local Location of the project Amount Mode of Mode of implementation - Through
No. Project list of activities area spent for implemen- implementing agency
in schedule VII (Yes/ the project tation - Direct
State District Name CSR registration
to the Act No) (` in lakhs) (Yes/No)
number
1 Women Empowerment 3 Yes Maharashtra, Navi Mumbai 0.30 No Navasrushti CSR00004550
International Trust
2 Rural Livelihoods 10 Yes Tamil Nadu (Chennai) 2.00 No CESCI
3 Education 2 Yes Tamil Nadu (Chennai) 0.50 No Dorai Foundation
4 Education 2 No Kerala, Thiruvananthapuram 1.00 No Helping Hands Organisation CSR00025490
5 Environment 4 Yes Maharashtra, Navi Mumbai 0.54 Yes
6 Education 2 Yes Maharashtra, Navi Mumbai 18.80 Yes
TOTAL 23.14
54
Annual
Report 2022-23
(d) Amount spent in Administrative Overheads: NIL

(e) Amount spent on Impact Assessment, if applicable: Not Applicable
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ` 95,14,459
(g) Excess amount for set-off, if any.: Not Applicable
Sl. No. Particular Amount (`)
(i) Two percent of average net profit of the company as per section 135(5): 26,00,400 23,03,854
less: amount set off from previous financial year 2,96,546
(ii) Total amount Spent for the Financial Year 23,14,459
(iii) Excess amount spent for the financial year [(ii)-(i)] 10,605
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous -
financial years, if any
(v) Amount available for set-off in succeeding financial years [(iii)-(iv)] 10,605
Corporate Overview
1. (a) Details of Unspent CSR amount for the preceding three financial years:
Sl. Preceding Amount transferred Amount spent Amount transferred to any fund specified under Amount remaining
No. Financial Year to Unspent CSR in the reporting Schedule VII as per section 135(6), if any. to be spent in
Account under Financial Year succeeding
Name of the Fund Amount Date of transfer
section 135 (6) (` in lakhs) financial years
(` in lakhs)
NIL
Total
Statutory Reports
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): NIL
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sl. Project ID Name of the Project Financial Year Project Total amount Amount spent on the Cumulative amount Status of the
No. in which the duration allocated for project in the reporting spent at the end of project -
project was the project Financial Year reporting Financial Year Completed /
commenced (` in lakhs) (` in lakhs) (` in lakhs) Ongoing
1 Suryoday Foundation FY 21-22 2 years 160.00 63.00 160.00 Ongoing
2 Rotary Club of Madras FY 21-22 3 years 9.00 18.00 Ongoing
25.00
Charitable Trust
Total 185.00 72.00 178.00
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through
CSR spent in the financial year (asset-wise details).
(a) Date of creation or acquisition of the capital asset(s): Not Applicable
(b) Amount of CSR spent for creation or acquisition of capital asset: Not Applicable
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their
address etc: Not Applicable
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital
asset): Not Applicable
11 Specify the reason(s), if the company has failed to spend two percent of the average net profit as per section 135(5).
Not Applicable
Baskar Babu Ramachandran Dr Mandeep Maitra

(DIN: 02303132) (DIN: 06937451)
( Managing Director & Chief Executive Officer) (Chairperson of CSR Committee)
55
Annexure 4
SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED ON 31st MARCH, 2023
[Pursuant to section 204(1) of the Companies Act, 2013 and rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members
1101 Sharda Terraces, Plot No. 65
Navi Mumbai – 400 614
I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by Suryoday Small Finance Bank Limited (“the Bank”). Secretarial Audit was conducted in a manner
that provided me a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing my
opinion thereon.
Based on my verification of the Bank’s books, papers, minute books, forms and returns filed and other records maintained
by the Bank and also the information provided by the Bank, its officers, agents and authorized representatives during the
conduct of Secretarial Audit, I hereby report that in my opinion, the Bank has, during the period covering the financial year
ended on 31st March, 2023 (“Audit Period”) complied with the statutory provisions listed hereunder and also that the Bank
has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter.
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Bank for the
financial year ended on 31st March, 2023 according to the provisions of:
(i) The Companies Act, 2013 (“the Act”) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 and the rules made thereunder;
(iii) The Securities and Exchange board of India (Depositories and Participants) Regulations, 2018;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992:
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(d) The Securities and Exchange Board of India (Share Based Employee Benefits & Sweat Equity) Regulations, 2021;
(e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021;
(f) 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;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; and
(h) The Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018.
56
Annual
Report 2022-23
I have also examined compliance with the applicable regulations of the following:
(a) Secretarial Standards issued by The Institute of Company Secretaries of India;
(b) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
For the Audit Period, the Bank has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards etc.
mentioned above to the extent applicable.
Having regard to the compliance system prevailing in the Bank and on examination of the relevant documents and records
in pursuance thereof, the extent applicable, on test check basis, the Bank has complied with the following regulations / laws
applicable specifically to the Bank.
(i) The Banking Regulation Act, 1949;

(ii) Reserve Bank of India (“RBI”) Guidelines / Directions as applicable to Small Finance Banks; except that there was delay
in reporting of frauds and failure to report certain fraud cases to the police authorities; as per the Reserve Bank of India
(Frauds classification and reporting by commercial banks and select FIs) Directions, 2016 and for which RBI imposed a
Corporate Overview
penalty of ` 57.75 lakhs, which was timely disclosed by the Bank to the Stock Exchanges and penalty amount was paid
to the regulator within the timeline.
I further report that:
The Board of Directors of the Bank is duly constituted with proper balance of Executive, Non-Executive and Independent
Directors. The changes in the composition of the Board of Directors that took place during the Audit Period under review were
carried out in compliance with the provisions of the Act and applicable guidelines of the Reserve Bank of India.
Statutory Reports
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were generally
sent at least seven days in advance; and a system exists for seeking and obtaining further information and clarifications on
the agenda items before the meeting and for meaningful participation at the meeting.
During the Audit Period, all decisions at Board Meetings and Committee Meetings were carried out unanimously.
I further report that there are adequate systems and processes in the Bank commensurate with the size and operations of
the Bank to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
FCS 2690 / COP 2190
Place: Mumbai Peer review certificate number – 1509/2021
Date: May 15, 2023 UDIN - F002690E000304134
Note: This report is to be read with my letter of even date which is annexed herein next as Annexure A and forms an integral
part of this report.
57
Annexure A
To,
The Members
1101 Sharda Terraces, Plot No. 65
Navi Mumbai – 400 614
This letter is an integral part of the Secretarial Audit Report of even date for F.Y. 2022-23 submitted to the Suryoday Small
Finance Bank Limited (“the Bank”) in pursuance of provisions of section 204(1) of the Companies Act, 2013 and rule 9 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
Members of the Bank are informed as follow.
1. The compliance of provisions of all laws, rules, regulations, standards applicable to the Bank is the responsibility of the
management of the Bank. My examination was limited to the verification of records and procedures on test check basis
for the purpose of issue of the present Secretarial Audit Report.
2. Maintenance of the secretarial and other records of applicable laws is the responsibility of the management of the Bank.
My responsibility is to issue Secretarial Audit Report, based on the examination of the relevant records maintained and
furnished to us by the Bank, along with explanations where so required.
3. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial and other legal records, legal compliance mechanism and corporate
conduct. The verification was done on test check basis to ensure that correct facts as reflected in secretarial and other
records produced to us. I believe that the processes and practices that I followed, provide a reasonable basis for my
opinion for the purpose of issue of the Secretarial Audit Report.
4. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the Bank.
5. Wherever required, I have obtained the management representation about list of applicable laws, compliance of laws,
rules and regulations and major events during the audit period.
6. The Secretarial Audit Report is neither an assurance as to the future viability of the Bank nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Bank.
Place: Mumbai FCS 2690 / COP 2190
Date: 15 May, 2023 Peer review certificate number – 1509/2021
58
Annual
Report 2022-23
Annexure 5
Information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014:
Sl. No. Particular
1 The ratio of the remuneration of the MD & CEO (Whole time Director) to the : 55.94 : 1
median remuneration of the employees of the Bank for FY 2022-23
2 The percentage increase in remuneration of MD & CEO# , Chief Financial Officer, : KMP % increase
Chief Executive Officer, Company Secretary in FY 2022-23
MD&CEO 4.58%
CFO 11.31%
CS NIL*
Corporate Overview
3 The percentage increase in the median remuneration of employees in : 6.27%
FY 2022-23
4 The number of permanent employees on the rolls of Bank as at 31st March, 2023 : 6025
5 Average percentile increase already made in the salaries of employees other : Average Percentile Increase in
than the managerial personnel in the last financial year and its comparison with salaries of employees other than
the percentile increase in the managerial remuneration and justification thereof managerial personnel: 24.04%
and point out if there are any exceptional circumstances for increase in the
managerial remuneration Avg. Percentile Increase
Statutory Reports
in salaries of managerial
personnel: 9.88%
6 Affirmation that the remuneration is as per the Remuneration Policy of the Bank : Yes
*Company Secretary was appointed w.e.f. May 2, 2022, therefore increase in remuneration is not applicable for him in FY 2022-23.
#
The RBI approval for the increase in the remuneration of the MD & CEO for FY 2021-22 and 2022-23 was received on December 26, 2022 and
an amount of ` 11,66,340 was paid during FY-2022-23 towards arrears.
59
Management Discussion and Analysis

Global Environment (Global GDP Growth and Outlook) and 2019. India’s aspiration to achieve high income status
The economic damage from the Russia-Ukraine conflict by 2047 shall be realized through a climate-resilient growth
contributed to a significant slowdown in global growth process that delivers broad-based gains, especially to the
in FY23 and added to inflation. Fuel and food prices bottom half of the population. India will need to address
have increased rapidly, hitting vulnerable populations in the gaps in economic participation, including bringing more
low-income countries hardest. In April, 2022 Global growth women into the workforce.
was projected to slow from an estimated 6.1 percent in 2021
to 3.6 percent in 2022 and 2023. War-induced commodity In 2022, India emerged as one of the fastest growing
price increases and broadening price pressures resulted in economies in the world, despite significant challenges in
a rise in global inflation to 8.7 percent in 2022. the global environment – including renewed disruptions of
supply lines following the rise in geopolitical tensions, the
Several shocks hit the world economy middle of 2022 - synchronized tightening of global monetary policies, and
already weakened by the pandemic - higher-than-expected inflationary pressures.
inflation worldwide (especially in the United States and major
European economies), triggering tighter financial conditions; In FY22/23, India’s real GDP expanded at an estimated
a worse-than-anticipated slowdown in China resulting from 6.9 percent. Growth was underpinned by robust domestic
COVID- 19 outbreaks and consequent lockdowns; and demand, strong investment activity bolstered by the
further negative spillovers from the war in Ukraine. government’s push for investment in infrastructure, and
buoyant private consumption.
The year gone by also witnessed the failure of 3 US banks
(First Republic Bank, Silicon Valley Bank, and Signature.) The Indian government is persistent in pushing innovation
primarily due to the write- down of their investments in the banking sector introducing digital currency (CBDC)
resulting from spike in interest rates. and fostering global partnerships in the space of UPI.
India’s Unified Payments Interface (UPI) has revolutionized
Europe was similarly affected with one of its largest Private real-time payments and strived to increase its global reach
Bank - Credit Suisse, the second-largest bank in Switzerland in recent years.
– suffering a collapse in March 2023.
(Source: World Bank)
Rising interest rates and the Russia-Ukraine war continues
to weigh on global economic activity. Global inflation is Indian Banking Industry (Outlook of Banking sector in
expected to fall to 6.6 percent in 2023 and 4.3 percent in
India)
2024, still above pre-pandemic levels.
India’s banking industry is an integral part of India’s
Continued rise in government debt, prolonged low global growth ecosystem. The Banking industry has contributed
GDP growth and expectations of higher interest rates significantly to economic growth. India’s banking sector is
for longer period on the back of stubborn inflation are today sufficiently capitalized, with one of the lowest levels
fundamentally altering the sovereign credit profiles. of NPAs in is history. The financial and economic conditions
in the country are far superior to any other country in the
(Source: IMF, Insider, Investopedia) world. Credit, market and liquidity risk studies suggest that
Indian banks are generally resilient and have withstood the
Indian Economy (Outlook of Indian economy) global downturn well.
India is one of the fastest growing economies of the world
and is poised to continue on this path, with an aspiration The Indian banking industry has witnessed the rollout of
to reach a size of $5 trillion by 2025 and achieve a high innovative banking models like payments and small finance
middle-income status by 2047 (the centenary year of Indian banks. In recent years India has also focused on increasing
independence). The growth of the past two decades has also financial inclusion, through various schemes like the
led to India making remarkable progress in reducing extreme Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Suraksha
poverty. The country is estimated to have halved the share Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and
of the population living in extreme poverty, between 2011 rollout of a payments bank by the ubiquitous India Post.
60
Annual
Report 2022-23
Additionally, development of several major public digital its ambitious plans for the infrastructure sector.
infrastructure, a rise of Indian NBFCs and fintechs have NaBFID has raised ` 10,000 crore via maiden issuance of
significantly enhanced India’s financial inclusion and helped bonds. The central government-backed infrastructure
fuel the credit consumption in the country. financier, which began operations less than a year ago, is
also looking to sanction 1 lakh crore loans this fiscal to both
The digital payments space has seen a massive boom greenfield as well as brownfield assets in the key infra space.
over the past few years, growing at a compound annual
growth rate (CAGR) of 30% (Source: PwC Report on Indian Key Measures taken by the RBI
Payments Handbook). The RBI initiated its monetary tightening cycle in April 2022
and has since raised the repo rate by 2.25%, leading to
The digital payments system in India has evolved the moderation of surplus liquidity. While India’s retail inflation
most among 25 countries with India’s Immediate Payment rate peaked at 7.8 per cent in April 2022, the overshoot of
Service (IMPS) being the only system at level five in the inflation in India however has been one of the lowest in
Faster Payments Innovation Index (FPII).* (Source: IBEF) the world. The RBI’s anchoring of inflationary expectations
through responsive monetary policy has helped guide the
Credit and debit cards payments continue to grow within trajectory of inflation in the country. Retail inflation was
Corporate Overview
the country. The emergence of new players with a focus on back within RBI’s target range by November 2022. By the
digital journeys, an expanding customer base in tier 3 and 4 end of the financial year in March, 2023 the inflation reached
locations are some of the factors driving this growth. With the 15 months low to 5.66%.
Government pushing for better infrastructure, acquisition of
PoS devices has seen a steady rise. Similarly, deployment The Reserve Bank of India (RBI) issued its master directions
of QR codes has also surged and is expected to reach 170 on regulatory framework for microfinance on March 14,
million by the end of FY 2025–26. 2022, The revised regulatory framework aims to provide a
level playing field to all the players involved in microfinancing
Statutory Reports
(Source: PWC - The Indian payments handbook – 2021–2026) activities and at the same time protect the interest of
borrowers in this segment by advising on permissible levels
During FY23, HDFC Ltd. and HDFC Bank received regulatory of indebtedness of borrowers and transparency standards
approvals for their reverse-merger, creating one of the worth respect to pricing of financial products.
largest financial institutions globally.
Similarly, the RBI introduced the Digital Lending Guidelines
Key Measures taken by the Union Government on September 02, 2022 with a focus on customer protection
Union Government’s emphasis on capital expenditure and transparency with respect to the growing phenomenon of
(Capex) has continued during the year. The Centre has also lending through digital channels and applications, facilitated
incentivised the State Governments through interest-free by smartphone usage, fast-paced internet penetration and
loans and enhanced borrowing ceilings to prioritise their adoption of newer technologies. The guidelines set out
spending on Capex. The Government’s Capex-led growth various compliances to be followed by banks and NBFCs
strategy will enable India to keep the growth-interest while engaging with third party service providers (who may
rate differential positive, leading to a sustainable debt to assist with customer acquisition, underwriting support,
GDP in the medium run. The government has adopted portfolio monitoring and loan recovery) and lending through
a multi-pronged approach to tame the increase in price digital lending applications / platforms.
levels. Timely policy intervention by the government in
Business Segments
housing sector, coupled with low home loan interest rates
has propped up demand and attracted more buyers readily Inclusive Finance:
in the affordable segment in FY23. As per MFI industry publication – Micrometer - the
microfinance industry has a total loan portfolio of ` 3,48,339
The government has incorporated the National Bank for Cr, as of 31 March, 2023. Total number of active loans
Financing Infrastructure and Development (NaBFID), the accounts were 13 Cr with 6.6 Cr unique borrowers as
development financial institution focused to implement on 31 March 2023.
61
Overall status of portfolio, unique borrowers and loan accounts
31-Mar-22 31-Mar-23
Type of entity
No. of Unique Active loan Portoflio No. of Unique Active loan Portfolio
entities Borrowers (Cr) accounts (Cr) O/s (` Cr) Entities Borrowers (Cr) accounts (Cr) O/s (` cr)
NBFC-MFIs 84 2.7 4.2 1,00,407 82 2.9 5.1 1,38,310
Banks 12 2.9 4.3 1,14,051 13 3.2 4.7 1,19,133
SFBs 9 1.4 1.8 48,314 9 1.6 2 57,828
NBFCs 58 0.7 0.8 19,698 69 0.9 1 29,440
Others 39 0.1 0.2 2,971 38 0.1 0.2 3,629
Total 202 5.8 11.3 2,85,441 211 6.6 13 3,48,339
DPD 202 10.1 2,61,818 211 11.4 3,18,511

0 - 179
The portfolio of NBFC-MFIs has increased by 37.7% & banks by 4.5%, SFBs portfolio by 19.7%, NBFCs portfolio has increased
by 49.5% & other MFIs have increased by 22.1% on a YoY basis.
Industry Trends FY 22-23

Micro Credit loan outstanding across lenders 31 March 2023 Housing
(Source: MFIN) India’s housing demand is expected to remain robust
During FY 22-23, MFIs disbursed 3.1 Cr loans worth with structural-demographic tailwinds such as a large
` 1,30,563 Cr. Compared with FY 21-22, there has been a population base, a burgeoning middle class (emerging
YoY increase of 41.1% in number of loans disbursed and as the largest category of consumers), a rising pace of
59.3% in loan amount disbursed. Top 10 MFIs in terms of urbanisation (expected to increase from ~34% to ~52% by
loan amount disbursed accounted for 76.1% of industry FY47), increasing trend towards home ownership, improving
disbursements in FY 22-23. Based on FY 22-23 data affordability and paucity of quality dwelling units for
available for 47 NBFC MFI Members, loan amount disbursed lower-income segments.
through cashless mode is 99%. Out of 49 members who
reported data on cashless disbursements, 42 have achieved India’s home loan (HL) market, presently at around
100% cashless disbursements. ` 2,60,000 crore (constituting about 17% of the overall
credit) is expected to double in the next 5 years. This growth
is expected on the back of improved affordability, rising
Portfolio Quality of SFBs urbanisation and penetration beyond Tier-I locations.
Banks are expected to continue to dominate the prime HL

15.0% 13.1% segment largely on account of advantage of lower cost of
11.7%
funds, structural shift in sourcing models and renewed focus
11.5%
on retail home loans. Developer funding, which underwent a
11.4% 10.3%
tectonic shift in 2019, is once again within the radar of the
10.2%
banks and HFCs/NBFCs.
8.7% 9.4%
31-Mar-22 31-Dec-22 31-Mar-23
PAR>180 PAR>90 PAR>30
The portfolio quality of SFBs has improved on a YoY basis

as reflected by PAR >30 of 11.7% as on 31 March 2023, in
comparison to 15% as on 31 March 2022.
62
Annual
Report 2022-23
Housing Loans landscape:
Housing
Finance
By Lender By Purpose Customer profile End-user
Mass-market
Bank Primary Secondary
~55% Individual
(67%) (-70%) (-30%)
(<` 3.5mn)
Mid-income -
Corporate Overview
HFCs Self-
~28% (` - 3.5 Developers
(33%) construction
-7.5mn)
Premium -
Apartments ~18%
(> ` 7.5mn)
Statutory Reports
Source: CRIF Highmark, RBI, NHB, Industry, HSIE Research
Affordable Housing: through budget allocation of `48,000 crores towards PM

India’s urban mortgage penetration remains significantly Awas Yojana, (FSIAPL).
low at around 0.14 home loans per household. While housing
Commercial vehicle loans
demand continues to remain high, affordability and
pace of urbanisation remain key for translating into The Commercial Vehicle (CV) industry has grown steadily
after the second wave of the COVID-19 pandemic.
housing purchases.
The industry has impressively grown across OEMs and is
Various regulations and costly land parcels in urban almost back to pre-pandemic levels. The bus segment
areas have pushed up the ratio of house prices to annual has seen an impressive revival in this period followed
by the Medium & Heavy Commercial Vehicles (M&HCV),
income, reducing affordability, especially for low-income
Intermediate & Light Commercial Vehicle (I&LCV) and
households. Improving the functioning of the housing
Small Commercial Vehicle (SCV) segments. As per Society
market and addressing affordability are key challenges.
of Indian Automobile Manufacturers (SIAM), the sales of
Commercial Vehicles witnessed a 34.3% growth to 9,62,468
Affordable housing refers to housing units that are affordable
units in FY23 as against 7,16,566 units in FY22. As per
for those with income below the average household income.
the market report by Mordor Intelligence, the CV market is
In India, affordable housing is provided for low-income
projected to grow at a CAGR of 8% over the next 5 years.
people, middle income people and economically weaker
This growth is expected from the increased activities in
sections who have considerably low levels of income (urban roads, mining, real estate and construction sectors, as well
areas). Affordable housing is currently driving home loan as focus on last-mile connectivity.
growth in India. As per FSIAPL, the affordable housing
finance market is expected to be at about ` 12,50,000 crores The steep increase in the price of new Commercial Vehicles
(around 45% of the total home loan market size). has created a substantial market for the Used Commercial
Vehicles. The demand for used commercial vehicles in the
The affordable housing segment is expected to grow at a market is continuously growing especially among the First
CAGR of 12% over the next 3 years with a clear commitment Time Users (FTU) and retail segment of customers due to
of the Union The Government to achieve ‘Housing for All’ the viability of the vehicle. This segment is further expected
63
to grow significantly, since the expected regulations in and crossed ` 1200 crores during the last financial year.
the near future would further increase the price for new Vikas Loan portfolio has a collection efficiency of more
Commercial Vehicles. than >99% and Standing Instruction Clearance of more
than 90% respectively.
Banks, NBFCs, OEM NBFCs continue to be the preferred
4. This growth combined with improvement in asset
choices for Commercial Vehicle financing. The growth in the
quality and management of stressed asset portfolio
market size has created a potential business opportunity for
resulted in drastic reduction in GNPA to 3.1% in FY23
prudent financiers.
compared to 11.8% in the last financial year.
Secured Business Loans (SBL) / Loans Against Property 5. Increased interest income, stable cost of funds and
(LAP) stable operating cost levels resulted in profits of ` 78
In India, the Loan Against Property (LAP) market is crores for the year.
segmented based on property type, type of loan, interest 6. Deposits grew to ` 5,167 crores in FY23 compared to
rate, source, tenure, region and company. LAP growth ` 3,849 crores in the last financial year.
between FY16 to FY19 was driven by rising penetration of
formal channels and higher comfort for lenders to lend. Summary of P&L
Lending against LAP was moderated during pandemic, as * Figures are in ` Crs.
property prices where stagnating along with a moderation
Particulars FY23 FY22 YoY
in availability of additional collateral to offer lenders.
Interest Earned 1,183.7 941.8 25.7%
However, post pandemic, there has been a rise in property
Interest Expended 437.1 357.4 22.3%
prices, which revived the market with additional top-up loan
NET INTEREST INCOME 746.6 584.5 27.7%
being offered to existing borrowers, supporting their working
capital borrowing needs with an expansion in economic Other Income 97.4# 93.6 4.1%
activity. It is estimated that the Indian LAP market is about a NET TOTAL INCOME 844.0 678.0 24.5%
fourth of the housing finance market in 2023 (FSIAPL). Operating Expenses 506.5 413.1 22.6%
Employee Expense 242.4 228.2 6.2%
LAP remains a key form of availing credit by micro and small Other Expense 264.2^ 184.9 42.9%
enterprises, where the behaviour for large ticket lending and OPERATING PROFIT 337.5 264.9 27.4%
lower ticket lending varies drastically. Historically, lending to Provisions and Contingencies 236.6 392.0 -39.6%
services and retail sectors has performed better compared NET Profit Before Tax 100.9 -127.1 -
to that to the manufacturing and trading segments. Tax 23.2 -34.1 -
Also, lower ticket segments (average ticket size < ` 5 million) Profit After Tax 77.7 -93.0 -
have performed better compared to those with an average #After netting of MTM loss (FY23 – ₹ 35.4 crores)
ticket size of above ` 10 million. The pricing in this market Încludes impact of loss of sale on stressed loans (FY23 - ₹21.5 crores)
remains quite competitive due to banks remaining active in
the high-ticket segment; also, lenders face a higher risk of Summary of Balance Sheet
balance transfers, thereby impacting customer retention. * Figures are in ` Crs.
As per FSIAPL, the LAP market is expected to grow at around Particulars FY23 FY22 YoY
11% CAGR till FY26.
Capital and Liabilities
Overview – Suryoday Bank (Brief Overview of bank’s Shareholders’ Fund 1,584.8 1,505.5 5.7%
performance) Deposits 5,166.7 3,849.8 34.2%
Suryoday has stayed resilient through tough times and Borrowings 2,765.4 2,551.3 8.4%
reached several new milestones during the year, that are Other Liabilities and Provisions 344.4 273.8 25.8%
highlighted below: Total 9,861.2 8,180.5 20.5%
Assets
1. The retail assets portfolio increased by
almost ` 700 crores. Fixed Assets 164.5 115.2 42.7%
Cash and Bank 833.1 977.1 -14.7%
2. The overall disbursements surged by 44.1% on a
Investments 2,570.2 2,057.7 24.9%
year-on-year basis to ` 5,083 crores.
Advances 6,015.1 4,750.9 26.6%
3. Our pre-approved business loan product offering – Other Assets 278.4 279.5 -0.4%
Vikas Loan -, which is a pre-approved program, had a
Total Assets 9,861.2 8,180.5 20.5%
tremendous year as the portfolio grew almost 5 times
64
Annual
Report 2022-23
Summary of Key Financial Ratios Balance Sheet:

11. The Bank has continued to maintain a healthy Capital
Adequacy Ratio of 33.7% and Tier-I ratio of 30.8%.
Yield on Gross Loan Portfolio 19.30% 18.20% 110 bps
Financial Ratios:
Cost of Deposits 6.90% 7.10% -20 bps
12. Overall yields and NIM % increased by 110bps and
Cost of Funds 6.70% 7.00% -30 bps
90bps respectively, supported by the increase of high
NIM 9.50% 8.60% 90 bps yield Vikas Loan increase in paying portfolio on the
Cost to Income 60.00% 60.90% -90 bps back of improved asset quality.
CASA Ratio 17.10% 20.20% -310 bps 13. Cost to income for FY23 was 60.0% as compared to
60.9% in FY22.
GNPA Ratio 3.10% 11.80% -870 bps
NNPA Ratio 1.50% 5.90% -440 bps 14. Our average cost of funds reduced by 10 basis points to
6.7% for FY23 due to the reduction in deposit rates and
Provision coverage Ratio (%) 51.50% 52.60% -110 bps borrowing rates Year-on-Year. The cost of deposits
witnessed an upward trend from Q4 of FY23 in line
Key Highlights for FY22-23 with the market.
Corporate Overview
Asset and Deposit Business:
Asset Quality:
1. The Bank acquired 3.87 lakh new customers
15. GNPA stood at 3.1% as at 31 March 2023 compared to
and expanded its customer base to 23.1 lakh
GNPA of 11.8% as at 31 March 2022.
smiling customers.
16. NNPA stood at 1.5% as at 31 March 2023 as compared
2. Our Gross Loan Portfolio increased by 20.8% Y-o-Y to 6.0% as at 31 March 2022.
to ` 6,114 crores (Adjusted for portfolio sold to Asset
17. Provision coverage ratio as on March 2023 was at
Reconstruction Company (“ARC”) ARC, growth stands
51.5%.
at 29.2%). Inclusive Finance business contributes 61%
Statutory Reports
of overall Loan book. 18. Overall collection efficiency stands at 102%
as of March 2023.
3. The Bank disbursed ` 5,083 crores during FY23
Product Portfolio:
(up 44% Y-o-Y).
Suryoday continues to be a Bank of Choice for the ~0.6%
4. Vikas Loan has witnessed robust growth in AUM as Indian Household, providing access to financial markets
well as customer base. The Vikas Loan portfolio and and relevant credit products. It has been the Bank’s
customer base grew almost 5 times Year-on-Year. constant endeavor to build a strong and lasting relationship
with our customers offering them products that help them
5. The Bank has decided to cover its unsecured book (as
in their time of need.
of March 2023 ~69% coverage) under the CGFMU credit
guarantee scheme of CGTMSE, as a protection against The Bank’s product portfolio includes advances to
possible future systemic credit shocks occasioned by customers in unbanked and under-banked segments as
global events and like. well as deposit products. The Bank launched a Women’s
Saving product – Blossom - in FY23 curated to cater to the
6. Retail Assets grew to ` 2,371 crores (41% Y-o-Y growth) needs of women.
7. During FY23, the Bank sold loans Non-Performing
We aspire to build and leverage our proven distribution
Assets worth ` 492 crores to an ARC on a Security
network in offering small ticket credit and savings
Receipts consideration basis. solutions to the unbanked/ neo-banked aspirational
8. Deposits grew ~ 34% Y-o-Y to ` 5,167 crores. customer segment, supported by our significant investment
in technology.
The proportion of granular retail deposits (including
CASA) having ticket size of less than ` 50 lakh, as on Asset Products:
March 2023, stood at 86%.
The Bank’s asset products are categorised into (i) loans
for Inclusive Finance segment comprising loans to joint
Business Performance: liability groups (JLGs); individuals in the form of Vikas Loan
9. Net interest income increased 28% Y-o-Y for the year (ii) commercial vehicle loans; (iii) Mortgages and Micro
ended 31 March 2023 to ` 746.6 crore. Mortgages; (iv) loans to financial intermediary groups
(FIGs); and (vi) other loans.
10. Improvement in the overall asset quality led to a
substantial profitability improvement for the year. Categorisation is largely determined by customer profile,
The PAT for the year stood at ` 77.7 Crores. type of security (as applicable) and end-use.
65
The table below sets forth the Bank’s Gross Loan Portfolio by product category:
As of 31st March
Particulars 2022 2023
(` crore) % of total (` crore) % of total
Inclusive Finance (JLGs) 3,387 67% 3,743 61%
Housing Loans (Including Micro Home Loans) 456 9% 642 11%
Secured Business Loans (LAP) 236 5% 405 7%
Commercial Vehicle Loans 340 7% 391 6%
Financial Intermediary Group (FIG) Loans 380 8% 688 11%
Unsecured Business Loans and Others* 264 5% 246 4%
Gross Loan Portfolio 5,063 100% 6,114 100%
*Other includes Staff Loan, Overdraft facilities, Individual Loans, Restructuring product, WCTL and FITL, BC overdraft
Note: Figures may not add up due to rounding off
record. In FY23, the total disbursement was ` 3,504 Cr with

Overall Advances as on 31st-Mar-23 (` crores) an average yield of 26.7%.
102%
The Bank focused on investing and building digital
97% capabilities for the next phase of growth. The Key Initiatives
86% 98% undertaken by the Bank in this regard included:
6,114.0
5,471.0
Digitization of operations:
The Bank implemented Sarathi App for Vikas Loan
which enabled employees as well as verified and trusted
channel partners to send digitized loan applications with
detailed information for risk assessment. It also enabled
643.0 performance of various pre-disbursement due diligence
activities and verification.
Upto Jun 21 Post Jun 21 ToT
We have also introduced a new feature which helps our
Collection Collection
Efficiency - 1 EMI Efficiency Overall customers to transfer funds into their Suryoday account
through UPI / other payment systems by simply transferring
the funds to “<Account Number>@Suryoday”. This feature
Inclusive Finance helps our customers to fund their account and make loan
Suryoday started as an NBFC engaged in the business repayments without the need to visit the branch. This feature
of offering micro finance loans to the unbanked and aids our collection efforts by enabling our Inclusive Finance
underbanked sections of the country in 2009. This product customers to pay their EMI through digital medium instantly.
is the flagship product of the Bank and contributes ~60%
of the overall AUM. Inclusive Finance (IF) AUM grew 10% Focus on portfolio quality and Collection Efficiency of New
Y-o-Y with Business back at pre-pandemic levels. Book:
The Bank has reorganized its IF business with deployment
IF offers two products viz., Group Loans known as Joint of around 500 dedicated collection officers during the
Liability Group (JLG) loans and Individual Loan known as financial year to enhance the collection efforts in relation to
Vikas Loan (VL). IF products are offered at ticket sizes its portfolio impacted during COVID.
ranging between ` 30,000 and ` 1,50,000 depending on the
loan cycle and product type. Loans were predominantly The collection efficiency for the year, capped at 1 EMI is 97%
offered to existing and previous customers of SSFB. In case and the overall collection efficiency is 99%. Importantly, the
of New-To-Bank customers, the Bank has been selective Bank has maintained its collection efficiency in respect of
and has onboarded only customers with a good credit track portfolio generated after June 2021 at pre-pandemic levels.
66
Annual
Report 2022-23
of small and retail customers consuming our easy-to-

IF Advances as on 31st Mar-23 (` crores) avail small ticket loan facilities. The Bank focused more
on the granular deals rather than big ticket size deals to
99% reduce the risk of large defaults. Overall, the emphasis has
been on expanding geographic footprint and improving
78% 98% 97%
customer experience.
3,743.0
3,620.2 Mortgage
In the housing segment the Bank’s loan offerings are aimed
at self-employed and non-professionals, desiring to either
purchase apartments or self-construct their property
with a focus on non-agricultural town planning approved
property (NATP). These loans are primarily distributed
122.8 from the banking outlets of the Bank located in urban/
semi-urban areas. Loans are provided for purchase of
Upto Jun 21 Post Jun 21 ToT
Corporate Overview
house, construction of house, improvement/restoration/
Collection Collection extension of home.
Efficiency - 1 EMI Efficiency Overall
With a total disbursement of ` 231 crore in FY23, the Gross

Loan Portfolio as at March 31, 2023 stood at ` 555 crore,
Retail Assets:
representing 9% of our total Gross Loan Portfolio.
The Bank has gradually built the secured Retail Asset book,
which stood at ~39% of the March 2023 loan portfolio. During the year, our focus was to steadily build the Micro
To ensure that a secure and profitable portfolio is built, the Home Loan (MHL) book which has an average ticket size of
Statutory Reports
Bank has seperate verticals within the Retail Asset business ` 5.0 lakhs and the total disbursement during FY23 stood
viz. Commercial Vehicles, Mortgage, Secured Business Loan at ` 81 crore resulting in the Gross Loan Portfolio of ` 87
and Financial Intermediary Group. crore as at March 31, 2023. The customers in this segment
are typically first-time home buyers who intend to buy /
We are focused on ensuring that we build a secure and construct their own dwelling unit.
profitable portfolio by verticalization of business segments.
Customers targeted in this segment typically have stable
Commercial Vehicles (CV) cash flows and belong to the informal segment or are
The Bank began its Commercial Vehicle financing business involved in informal trade or commercial activity where
in FY18. As a strategy, the Bank is primarily operates in the income is not completely documented and requires
re-financing of used vehicles market segment, focused field-based credit assessment. This segment has been far
on small fleet owners ensuring diversification of risk in its more resilient in terms of collections in comparison with
portfolio. During the financial year, the Bank also made its other segments. Although the impact of moratorium saw
foray into Two-Wheeler Loans. the collection efficiency in the segment dip, it has since
returned to normalcy.
As of 31 March 2023, Gross Loan Portfolio in this segment
was ` 391 crore, representing 6.4% of our total Gross Loan The GNPA as at March 31, 2023 was 1.7%. Out of GNPA
Portfolio. The ticket size for CV loans is between ` 2 Lakh to customers, 76% are paying.
` 50 Lakh, for a tenure of 1 year to 5 years with interest rates
ranging between 11% to 16%. Outlook: Mortgages segment continues to be a key focus
segment going forward. We anticipate growth in this
The Bank has shifted its CV financing strategy from segment from areas where we have an existing presence
financing large vehicles and large fleet owners to offering as well from new geographies. Our focus will be to
finance for refinancing used / medium vehicles of very disburse loans to self-employed and salaried individuals
small fleet owners. for non-agricultural properties and in particular in the
affordable housing segment and leverage our existing
The Bank intends to offer an end-to-end digital customer Inclusive Finance distribution network and customer base
experience, targeting to onboard a potentially large base to source newer home loan customers.
67
Secured Business Loan rate ranging between 8.5% to 14%. In FY23 disbursements
The Bank commenced secured business loan product (SBL) under this segment were ` 658 crore.
in FY17. The target customer profile for this segment has
evolved over the last few years based on our experience As of 31 March 2023, the Bank did not record any NPA for
and understanding of various customer segments the Bank this product segment.
has interacted with. This was supported by strengthening
Deposit Franchise
our underwriting policies and undertaking improved credit
analysis prior to onboarding. The Bank continues to refine The Bank has seen remarkable growth in its deposit
the asset quality of loans advanced under this segment by franchise, over the last three years. Since its inception as
monitoring compliance with end-use restrictions. a Bank, the strategy has been to focus on growing retail
granular deposit franchise.
The Gross Loan Portfolio as of March 31, 2023 was at
` 405 crore backed by disbursement of ` 258 crore in The CASA ratio stood at 17.1% as of 31 March 2023 compared
FY23, representing 6.6% of our total Gross Loan Portfolio. to 20.2% as of 31 March 2022. However, in absolute terms,
With ticket sizes between ` 15 and ` 25 lakhs, for a tenure the CASA increased to ` 884 crore as at March 31, 2023
of 5 to 12 years, and interest rates ranging between 12.75 against ` 724 crore as at March 31, 2022 registering a
% and 15.8%, the SBL product continues to be the focus Y-o-Y growth of 22%.
area of the bank.
Deposit Mix (` Cr)
As on March 31, 2023 the GNPA in this product segment
was 1.8%, however, the post pandemic portfolio has fared 5,167
well in terms of collection efficiency in comparison to other
segments and has a substantially lower GNPA. 1,388
3,850
Outlook: The Bank looks at focusing on this segment 842

especially with the post-pandemic portfolio quality being
substantially better. With strong underwriting policies and 2,895
analytics-based risk management is place, the asset quality 2,284
of this portfolio is expected to be good. The Bank also
proposes to introduce Micro LAP product to cater to the
customer segment. 724 884
Mar’22 Mar’23
Financial Intermediary Group Loans (FIG loans)
The Bank provides term loans to financial intermediaries i.e. CASA TD-Retail TD-Bulk
NBFCs, MFIs and HFCs that further lend to retail customers
in the form of housing finance, loans against property, supply
chain finance, microfinance, vehicle finance and similar The Bank has managed to increase its CASA base in a gradual
sectors. These loans are typically provided to entities that but sustained manner. The Bank proposes to leverage its
are predominately rated BBB (+/-) or better by a recognised asset-focused branch network through which it intends to
credit rating agency. grow the deposit franchise in the coming years.
As of 31 March 2023, Gross Loan Portfolio in this segment Key Highlights during the year:
was ` 688 crore, representing 11% of our total Gross • Proportion of granular retail deposits (including CASA)
Loan Portfolio. with ticket size < ` 50 lakh was 86%
• Y-o-Y increase in CASA value by ~ 22%
In FY23 FIG loans were offered at an average ticket size of
` 30 crore, for tenor ranging between 12 to 60 months interest
68
Annual
Report 2022-23
Geographical presence As at 31 March,2023, there were nine (9) Committees of the

The Bank carries out its operations through banking outlets Board as enlisted below:
including URCs, the BC network, PoS terminals, and various Sr. No. Name of the Committee
digital channels, including internet banking through our 1 Audit Committee of Board
website, phone banking through our call centre, and mobile 2 Risk Management Committee of Board
banking through the mobile application. The Bank also 3 Nomination and Remuneration Committee
focuses on banking through tablets and other devices as 4 Stakeholders’ Relationship Committee
alternative delivery channels. As of 31 March 2023, the 5 Corporate Social Responsibility Committee
Bank operated 577 banking outlets across 15 states and
6 IT Strategy Committee
Union territories.
7 Customer Service Committee
The map below sets out certain information on the banking 8 Credit Committee of Board
outlets as of 31 March 2023: 9 Special Committee of Board for Monitoring &
Follow-up of cases of Frauds and Review of
Wilful Defaulters (SCBF & RWD)*
Corporate Overview
* In the Board meeting held on March 24, 2023, the name of ‘Committee
for Review of Wilful Defaults and High Value Frauds’ was changed to
‘Special Committee of Board for Monitoring & Follow-up of cases of
CG-1
HR-1 Frauds and Review of Wilful Defaulters (SCBF & RWD)’
DL3
Human Resources
15 29
We have always endeavoured to create a culture based
on inclusivity and respect. Our employees have been our
ambassadors. During the year, we:
41 34
Statutory Reports
16 • Product, Process, Skill Development and New
94 Hire Training programmes implemented across
163
the organization through both virtual/online and
2 classroom/offline modes.
• Training content prepared and delivered for Products,
73 1 States
Soft Skills, Systems/Applications and Processes.
Banking Outlets
Retail Assets -
Training content prepared and delivered for
104
Products, Soft Skills, Systems/Applications
and Processes.
15 577 - ybersecurityTraining being implemented across the

C
organisation, and senior management and directors
States and UTs Banking Outlets (BO) nominated for certification in Cybersecurity.
*104 branches in Tamil Nadu includes 2 branches in Puducherry

- Nomination of employees to various External
Training Programmes for functional expertise.
Map not to scale. For illustrative purposes only.
- 76 employees from Risk, Credit, Audit and Finance
Corporate Governance departments enrolled for Capacity Building
The Board of the Bank is committed to maintaining the highest Certification programmes.
standards of corporate governance. In addition to having a
continuous focus on corporate governance, the Board and We also have different programs for employee engagement,
the Bank management carries out, a comprehensive review including session with industry experts, healthcare experts
and evaluation of its principles for corporate governance and etc. Over the year, the Bank’s attrition rate has been gradually
its implementation. moderating, displaying a sign of adequate motivating
factors being provided to the employees and loyalty from the
Further, the Corporate Governance Policy of the Bank employees’ perspective. At the end of March 2023, the Bank
outlines the broad framework of governance through the had a total of 6,025 employees on its payroll. The employees
Board of Directors and the various Board Committees. are provided with maternity/paternity benefits and are
The committees deal with specific matters and the terms of covered under Health Insurance, Accident Insurance,
reference of each Committee is defined. Provident Fund, Gratuity Scheme, Etc.
69
Information Technology 1) Business – functions on the laid down Policies and

Over the years, use of technology has enabled us to scale up Processes approved at the appropriate level of authority.
our operations in an efficient manner. We have been digitizing 2) Risk and Compliance – Monitors compliance with the
our processes and automating our backend operations. laid down policies and processes as per the regulatory
framework and the Bank’s risk appetite.
The Bank’s major functions, including customer experience, 3) Internal Audit – Overviews quality and effectiveness
digital transaction processing, enterprise accounting, of the internal controls and their adherence by the first
expense management, human resources management, line of defence, their monitoring by the second line of
process management, risk management, and governance defence. The internal audit process is based on the Risk
are also supported by various technology platforms. based Audit approach prescribed by the regulator and
With the use of technology, the Bank has created a paperless duly approved by the Audit Committee of the Board.
onboarding process for originating microfinance loans and
opening bank accounts. The Bank has also enabled carrying All the internal control functions work independently as per
out of customer onboarding and various transactions on regulatory guidelines and report to the Audit Committee of
handheld devices. the Board or the Risk Management Committee of the Board
as applicable.
The Bank has also initiated engagements with certain fintech
partners to leverage its digital platforms and reaching a wider Cautionary Statement
network for both deposit and loan products. The Bank is
This report and other statements - written and oral - that the
investing in advanced analytics for use in identifying markets
Bank periodically makes contain forward-looking statements
for geographical expansion, cross-sell/up-sell, pre-approved
that set out anticipated results based on the management’s
loans, credit risk analysis, delinquency prediction and early
plans and assumptions. The Bank has tried, wherever
warning systems In FY ‘23 the bank has successfully migrated
possible, to identify such statements by using words
its Core Banking Solution from FIS Profile to Finacle.
such as ‘anticipate’, ‘estimate’, ‘expects’, ‘will’, ‘projects’,
‘intends’, ‘plans’, ‘believes’, and words of similar substance
Project PRAGYAN in connection with any discussion of future performance.
The Bank implemented Finacle Core Banking Solution (CBS) The Bank cannot guarantee that these forward-looking
during the year. The migration was achieved in a seamless statements will be realised, although we have attempted to
eight-month implementation period. Finacle powers be prudent in our assumptions. The achievements of results
the Bank’s retail, corporate and payment engines in an are subject to risks, uncertainties, and even inaccurate
on-premise model, supported by IBM’s infrastructure stack. assumptions. Readers should keep this in mind that in the
The migration was necessary since the legacy system event known or unknown risks or uncertainties materialise,
was not capable of handling multiple products and high or should underlying assumptions prove inaccurate, actual
volume. The migration has also helped the Bank in reducing results could vary materially from those anticipated,
dependency on external vendors. estimated or projected. The Bank undertakes no obligation
to publicly update any forward-looking statement, whether
Corporate Social Responsibility as a result of new information, future events or otherwise.
The Bank has adopted a Board approved Corporate Social
Responsibility (CSR) policy that is focused on our core Financial Review
objective of financial inclusion for the unbanked and Income
under-banked income groups. The endeavour is to serve Net Total income increased by 24.5% Y-o-Y from ` 678.0
the low-income households with focus on women and crore in FY22 to ` 844.0 crore in FY23 primarily due to asset
adolescent children. The CSR Committee identifies and growth, realised yield improvement coupled with reduced
recommends specific areas to focus on and periodically cost of funds. There was also an increase in PSLC fee income
reviews the progress of the activities undertaken. The recent and processing fees driven by increased disbursement.
initiatives have been focused on financial literacy, preventive Broad reasons are discussed below.
health and supplementary livelihoods.
Interest Earned
Credit Rating Interest earned increased by 25.7% from ` 941.8 crore in FY22
The Bank has a long-term rating of A (Stable) from ICRA for to ` 1,183.7 crore in FY23. Gross Loan Portfolio increased by
its Subordinated Debt (March 2023) and a short term rating 20.8% from ` 5,063 crore in FY 2022 to ` 6,114 (Adjusted for
of A1+ (A One Plus) for its CD issuance program from ICRA ARC is ` 6,541 crores with growth of 29.2%) crore in FY 2023
(March 2023) and CRISIL (Nov 2022). predominantly on the back of higher disbursements.
Internal Controls Other Income

The Bank has in place three lines of defence for ensuring Other income increased by 4.1% from ` 93.6 Cr in FY22 to
adherence to Internal Controls: ` 97.4 Cr in FY23. Despite substantial increase in processing
70
Annual
Report 2022-23
fees and miscellaneous income, the growth was moderated Total assets increased by 20.5% from ` 8,180.5 crore as of
due to one time recognition of MTM loss on investment 31 March 2022 to ` 9,861.2 crore as of 31 March 2023.
book of 36.2 Crs.
Advances
Interest Expended The following table sets forth a breakdown of total advances
Interest expended increased by 22.3% from ` 357.4 crore in as of the dates indicated:
FY22 to ` 437.1 crore in FY23 due to hike in deposit rates.
Fiscal
As of March 31 (Rupees in Crore)
Operating Expenses 2022 2023
Operating expenses increased by 22.6% from ` 413.1 crore Cash credit, overdraft & loan repayable 127 182
in FY22 to ` 506.5 crore in FY23 primarily due to salary cost
on demand
& depreciation increase.
Term Loan 4,624 5,833
Provisions and Contingencies
Total 4,751 6,015
Provisions and contingencies decreased by 39.6% from ` 392
crores in FY22 to ` 236.6 crore in FY23. In FY23 primarily due Advances comprise micro banking (JLG) loans, home loans,
to higher collections leading to lower provisions.
Corporate Overview
commercial vehicle loans, secured and unsecured business
loans and financial intermediary group loans.
ARC Transaction
The Board at its meeting held on December 23, 2023, had Total advances increased by 20.7% from ` 5,063 crore as
approved the transfer of stressed loan portfolio (Financial of 31 March 2022 to ` 6,114* crore as of 31 March 2023,
Assets), including technically written-off loans to Asset primarily due to increase in disbursement and interest
Reconstruction Company (“ARC”). Accordingly, the Bank had capitalization post moratorium.
conducted the bidding process in accordance with Swiss Adjusted for ARC is ₹6,541 crores with growth of 29.2%
Challenge Method (“SCM”) prescribed under RBI Master
Direction dated September 24, 2021. The bidding process Fixed Assets
Statutory Reports
in accordance with SCM was concluded on December 28,
2022 and the Bank did not receive any counter Bid to the During FY23, the Bank had invested in Core Banking Solution
Base Binding Bid of Rs. 135.1 Crores from Edelweiss Asset which would cater to the Bank’s digital needs over the next
Reconstruction Company Limited (“Edelweiss ARC”) with few years. The Bank also made nominal investments in
respect to an identified pool of Financial Assets amounting network expansion in FY23, since the focus was to improve
to Rs. 492.05 Crores comprising of NPA and technically asset quality and increase profitability. The Bank follows an
written-off accounts (“Stressed Portfolio”). Accordingly, the asset-light model for its branches with IT equipments being
Board at its meeting held on December 28, 2022, approved obtained under operating lease from financing institutions.
Edelweiss ARC as the winner of Bid under SCM and pursuant Capital and Liabilities
to the Binding Bid received by the Bank from Edelweiss ARC The table below sets out the principal components of our
in relation to sale of the identified pool of Stressed Portfolio, shareholders’ funds and liabilities as of the dates indicated:
the Bank had completed the transaction.
Net profit
For the reasons discussed above, Net Profit for the year was Capital and Liabilities
` 77.7 Crore compared to Net Loss of ` 93 crore in FY22. Shareholders’ Fund 1,584.8 1,505.5 5.7%
Balance Sheet Deposits 5,166.7 3,849.8 34.2%

Assets Borrowings 2,765.4 2,551.3 8.4%
The table below sets out the principal components of our Other Liabilities and Provisions 344.4 273.8 25.8%
assets as of the dates indicated:
Total 9,861.2 8,180.5 20.5%
* Figures are in ` Crs.
Particulars FY23 FY22 YoY Total capital and liabilities increased by 20.5% from
Assets ` 8,180.5 crore as of 31 March 2022 to ` 9,861.2 crore as of
Fixed Assets 164.5 115.2 42.7% 31 March 2023 primarily due to increase in borrowings
Cash and Bank 833.1 977.1 -14.7% and deposits.
Investments 2,570.2 2,057.7 24.9%
Advances 6,015.1 4,750.9 26.6%
Other Assets 278.4 279.5 -0.4%
Total Assets 9,861.2 8,180.5 20.5%
71
Corporate Governance Report

In accordance with the applicable provisions of the 2. BOARD OF DIRECTORS
Companies Act, 2013 (“the Act”) and the Regulation 34(3) and a) Composition and Profile of Directors:
Clause (C) of Schedule V of Securities and Exchange Board
The composition of the Board of Directors of the Bank
of India (Listing Obligations and Disclosure Requirements)
(the “Board”) is governed by the relevant provisions of
Regulations, 2015 (“SEBI Listing Regulations”), a Report on
the Act and the rules made thereunder, the SEBI Listing
Corporate Governance for the Financial Year (“FY”) 2022-23
Regulations, the Banking Regulation Act, 1949, (the
is presented below, and forms part of the Annual Report:
“BR Act”) the guidelines/ regulations/circulars issued
by the Reserve Bank of India (“RBI”), as amended,
1. BANK’S PHILOSOPHY ON CODE OF GOVERNANCE
from time-to-time and all other applicable laws and the

Suryoday Small Finance Bank Limited (“the Bank”) Articles of Association of the Bank.
believes that good governance is the foundation to
build public trust and confidence of all the stakeholders. As at March 31, 2023, and as on the date of this report,
The Bank has adopted and adheres to the best practices the Board has an optimum combination of Executive
on Corporate Governance in line with the directions of and Non-Executive Directors with Independent
the Reserve Bank of India (“RBI”) and other regulators. Directors constituting more than one-half of its total
The Bank is also continuously benchmarking itself strength. The Board of Directors comprises eight (8)
against each such practice which enables it to be Directors, consisting of Six (6) Independent Directors
accountable and transparent and also fulfil the Bank’s including one Woman Independent Director, One
fiduciary role and responsibilities and enhance long Managing Director & CEO and One Non-Independent
term and sustained value for all its stakeholders. Non-Executive Director (Investor Director). All the Board
The Bank believes that best board governance members are senior and experienced persons having
practices, transparent disclosures and shareholder the required knowledge, skill sets, track record, integrity
empowerment are the backbone for creating value for and relevant experience and all of them effectively meet
the shareholders and other stakeholders. The cardinal the “fit and proper criteria” laid down by the RBI.
principles such as independence, accountability,
responsibility, transparency, fair and timely disclosures, None of the Directors is related to each other. All the
credibility, sustainability, etc. serve as the means for Independent Directors have submitted the requisite
implementing the philosophy of corporate governance declarations stating that they meet the criteria of
in letter and spirit. independence prescribed under Section 149(6) of the
Act, Regulation 16(1)(b) of SEBI Listing Regulations and

The Board directs, supervises, and controls the other applicable statutory provisions which have been
management of the Bank and is responsible for the taken on record by the Board. In the opinion of the Board,
business including formulating the overall strategy all Independent Directors fulfil the conditions specified
and ensuring implementation thereof. The Managing in the SEBI Listing Regulations and are independent of
Director and Chief Executive Officer (“Managing the management.
Director & CEO”) is responsible for the overall affairs
of the Bank under the superintendence, guidance Further, in terms of the Companies (Creation and
and control of the Board. The Board has constituted Maintenance of Databank of Independent Directors)
various Committees to deal with specific matters Rules, 2019 read with the Companies (Appointment
as per applicable law in this regard and the terms of and Qualification of Directors) Rules, 2014, all the
reference of each Committee is defined. Independent Directors of the Bank are enrolled in the
online databank of Independent Directors maintained

The Board has adopted a Code of Conduct for by the Government.
Directors and Senior Management personnel and all
Directors and senior management personnel affirm Separation of office of Chairperson and the Managing
their adherence to the Code on an annual basis. Director & CEO
Further, the Independent Directors also submit their In terms of the provisions of the BR Act, your Bank has
annual declarations confirming that they fulfil the separate offices for the Chairperson and the Managing
criteria of independence. Director & CEO. Your Bank has a Non-Executive
72
Annual
Report 2022-23
(Independent) Part-time Chairperson and a Managing Director at Syndicate Bank and Non-Executive
Director & CEO, the appointment of both have been Director at SIDBI.
approved by RBI pursuant to the provisions of the BR Act.
Mr. Ramachandran presently holds a position as
The Chairperson provides overall direction and guidance Short-term Consultant and Lead Technical Advisor
to the Board whereas the Managing Director & CEO of / Peer Reviewer for IFC (W) of the World Bank Group,
the Bank is responsible for the overall management associated with its India Investment Vehicle Project.
of the Bank. The operational and functional heads
assist the Managing Director & CEO in the operation, Mr. Ramachandran is not a director in any other company.
execution and functioning of the Bank.
Mr. Ramachandran does not hold any shares in the
Details of the Board of Directors as on March 31, 2023: Bank as on March 31, 2023.
Sr. Category Name and DIN of the Director Mr. Mrutunjay Sahoo [DIN: 00015715]
No.
Mr. Mrutunjay Sahoo is an Independent Director of
1. Independent (i) Mr. R. Ramachandran,
the Bank w.e.f. September 22, 2016 to hold office for a
Corporate Overview
Director(s) (DIN: 01953653)
period of five years upto September 21, 2021. He was
(ii) Mr. Mrutunjay Sahoo,
re-appointed as an Independent Director for a further
(DIN: 00015715)
term of three years w.e.f. September 22, 2021 upto
(iii) Mr. Jyotin Mehta,
September 21, 2024 vide Special Resolution passed at
(DIN: 00033518)
Annual General Meeting held on September 20, 2021.
(iv) Mr. John Arunkumar Diaz,
(DIN: 00493304)
Mr. Sahoo is a retired IAS Officer and has several years
(v) Mr. Krishna Prasad Nair,
of experience in public administration. Previously, he
(DIN: 02611496)
Statutory Reports
was a Special Chief Secretary to the Government of
(vi) Dr. Mandeep Maitra,
Andhra Pradesh and has been associated with several
(DIN: 06937451)
PSU’s as a nominee director of the Government of
2. Non-Executive Mr. Ranjit Shah,
India for Maharatna companies and non-official
Director(s) (DIN: 00088405)
independent director of Government of India for a
(Investor Director)
Miniratna company. He has also been associated
3. Executive Mr. Baskar Babu with Transmission Corporation of Andhra Pradesh,
Director(s) Ramachandran, Andhra Pradesh Power Finance Corporation and The
(Managing (DIN: 02303132)
Singareni Collieries.
Director & CEO)
Mr. Sahoo is not a director in any other company.
rief Profile of Board of Directors as on March 31,
B
2023: Mr. Sahoo does not hold any shares in the Bank as on
Mr. R. Ramachandran [DIN: 01953653] March 31, 2023.
(Part-time Chairperson with effect from March 19, 2020)
Mr. Jyotin Mehta [DIN: 00033518]
Mr. R. Ramachandran is an Independent Director of
Mr. Jyotin Mehta is an Independent Director of the
the Bank since 2015 and Part-time Chairperson w.e.f.
Bank w.e.f. August 31, 2017 for a period of five years to
March 19, 2020, with re-appointment for a period upto
hold office upto August 30, 2022. He was re-appointed
September 23, 2023, as approved by the RBI.
as an Independent Director for a further term of three
Mr. Ramachandran holds a Master’s degree in Science years w.e.f. August 31, 2022 upto August 30, 2025
and a post graduate diploma in Financial Management vide Special Resolution passed at the Annual General
from the University of Madras. He has over 38 years Meeting of the Bank held on August 26, 2022.
of experience in Commercial Banking and Finance.
Mr. Mehta holds a Bachelor’s Degree in Commerce
He has served as a part-time non-official director of
and is a fellow member of the ICAI, ICSI and ICMAI.
DICGC and a member of the Advisory Board on Banks,
He has over 40 years of experience in corporate laws.
Commercial and Financial Frauds of Central Vigilance
Previously, he was associated with ICICI Bank as a
Commission. He has previously served as Chairperson
General Manager & Company Secretary, 3i Infotech
and Managing Director at Andhra Bank, Executive
Limited as Senior General Manager, Voltas Limited as
73
VP & Chief Internal Auditor, Bharat Shell Limited as the Jamshedpur. He has over 28 years of experience
VP-Finance & Company Secretary and NOCIL Limited in Standard Chartered Bank, based in India and
as Head of project finance. overseas, where he was head of programme & change
management. Additionally, he has over 18 years of
Mr. Mehta is Independent Director on the Board of experience as a consultant in banking services for
Linde India Limited, Amal Limited and JSW Ispat several international institutions, including in Indonesia,
Special Products Limited (Listed Companies), Ind Aust Thailand and Mauritius by way of his association with
Maritime Private Limited, Mahindra Rural Housing Quest OntheFRONTIER, Bain & Company SE Asia and
Finance Limited, Mahindra Insurance Brokers Limited, iCube Consortium. Further, he has also been on the
ICICI Prudential Pension Funds Management Co. boards of companies in the venture capital, horticulture
Limited and ICICI Prudential Trust Limited (Unlisted and agriculture sectors, an ATM manufacturer and in
public limited companies). He is a member of the two companies in the primary and secondary healthcare
following committees in the aforesaid companies: sector which he had promoted.
(i) Linde India Limited Mr. Diaz is not a director in any other listed or public
• Audit Committee (Chairperson) limited company. He is director on the Board of several
• Nomination and Remuneration Committee private limited companies viz, Vortex Engineering,
• Stakeholders Relationship Committee Collateral Medical, Synergy Relationship Management
• Risk Management Committee Services, Aavishkaar Venture Trustees, Tribetech,
Jeevanti Healthcare, Synergy Health and Medical,
(ii) Mahindra Rural Housing Finance Limited Lynx Healthplus Services, Aavishkaar Foundation, Old
• Risk Management Committee (Chairperson) Bridge Mutual Fund Trustee, Microfinance Singapore
• IT Strategy Committee (Chairperson) and Nominee Director on the Board of Connect
• Audit Committee (Chairperson) India E-Commerce Services and is an advisor to
• Stakeholders Relationship Committee Aavishkaar Capital.
(Chairperson)
• Nomination & Remuneration Committee Mr. Diaz holds 22,000 Equity Shares in the Bank as on
March 31, 2023.
(iii) Mahindra Insurance Brokers Limited
• Audit Committee (Chairperson) Mr. Krishna Prasad Nair [DIN: 02611496]
• Nomination & Remuneration Committee Mr. Krishna Prasad Nair is an Independent Director of
the Bank w.e.f. July 22, 2021, for a period of five years
(iv) ICICI Prudential Pension Funds Management to hold office upto July 21, 2026.
Company Limited
• Audit Committee He holds a Bachelor’s Degree in Commerce from
• Nomination & Remuneration Madras University and MBA from Cochin University
Committee (Chairperson) of Science & Technology. He is a career banker and a
• Risk Management Committee (Chairperson) veteran in the financial services sector with over 38
years of experience with Indian Overseas Bank (6 years)
(v) ICICI Prudential Trust Limited and IDBI Bank (32 years). He has attended various
• Audit Committee trainings with IIM-A, CAFRAL, RBI and Kellogg School of
• Risk Management Committee Business, USA. He served as Deputy Managing Director
in IDBI Bank from September 2016 to May 2019 during
Mr. Jyotin Mehta does not hold any shares in the Bank
which he handled Retail Banking, Corporate Banking,
as on March 31, 2023.
NPA Management, HR, IT, Administration & Facilities
Management and was Chair and a Member of Credit
Mr. John Arunkumar Diaz [DIN: 00493304]
and ALCO Committees.
Mr. John Arunkumar Diaz is an Independent Director of
the Bank w.e.f. December 16, 2019, for a period of five As on March 31, 2023, Mr. Nair was also an Independent
years to hold office upto December 15, 2024. Director on The India Cements Ltd. (listed company)
He holds a Bachelor’s Degree in Mathematics from He does not hold any shares in the Bank as on
University of Madras and a PGDBM from XLRI, March 31, 2023.
74
Annual
Report 2022-23
Dr. Mandeep Maitra [DIN: 06937451] He also co-founded and is currently a managing partner
Dr. Mandeep Maitra is an Independent Director of the at Gaja Capital.
Bank w.e.f. July 28, 2022, for a period of five years to
hold office upto July 27, 2027. Mr. Shah is not a director in any other listed or public
limited company. He is director on the Board of private
Dr. Maitra is an award-winning Global HR Leader limited companies namely Rams Mercantile, Gaja
and Leadership & Transformation Coach. Her work Alternative Asset Management (as Wholetime Director),
experience of over three decades spans Paris, London, Thyssenkrupp Industrial Solutions and Kinara Capital.
Singapore & Mumbai.
Mr. Shah does not hold any shares in the Bank in his
Dr. Maitra has been credited with being the HR architect personal capacity as on March 31, 2023.
of HDFC Bank, India’s number 1 Bank. She has been a
trend setter, with many firsts to her credit - innovative HR Mr. Baskar Babu Ramachandran [DIN: 02303132]
Practices in Strategic Leadership, Talent Management, Mr. Baskar Babu Ramachandran is the Managing
Performance Management, Compensation and Reward Director & CEO of the Bank w.e.f. January 23, 2017.
planning. Post HDFC Bank, she moved to Singapore for He promoted Suryoday Micro Finance Pvt Ltd in 2008
six years. Mandeep worked with clients like the Ministry and was the Managing Director of the Company which
Corporate Overview
of Manpower and other blue-chip organisations on got converted into the Bank in January 2017.
Productivity, Innovation, Collaboration and Stakeholder
Management and spearheaded the Future of Work Mr. Baskar Babu Ramachandran was re-appointed
research in Asia Pacific. Later based in Paris, Mandeep as Managing Director & CEO upto January 22, 2026
worked with Dr Julia Cooke of the Academy of Design with the approval of the Reserve Bank of India and
Thinking and Entrepreneurship, UK. the shareholders.
Dr. Maitra holds a Bachelor’s Degree in Psychology He holds a Bachelor’s Degree in Mechanical
(Hons) from Lady Sri Ram College, University of Delhi; Engineering from the University of Madras and an MBA
Statutory Reports
Post Graduate Degree in PM&IR from TISS Mumbai, from Pondicherry University. He has participated in
Key Certifications in HR Strategy in Transforming the management development program for strategic
Organizations from London Business School, and Design management for corporate leadership at IIM – Calcutta.
Thinking from ESADE Business School, Barcelona. He has several years of experience in the banking and
In June 2022, Dr. Maitra was awarded an honorary finance sector. Prior to co-founding Suryoday Micro
Doctorate (PhD) in Leadership & Transformation Finance Private Limited, he was associated with
by Ecole Superieure Robert De Sorbon Université in various companies including GE Capital Transportation
France based on her relentless pursuit of excellence Financial Services, HDFC Bank and Cholamandalam.
and ability to touch the professional lives of many.
Mr. Baskar Babu Ramachandran is not a director
Dr. Maitra is a Non-executive Director on the Board in any other listed or public limited company.
of Expressions Learning Resources Private Limited But he is on the Board of Director of Indian Institute of
and an Independent Director on the Board of GRO Banking and Finance.
Digital Platforms Limited and Hinduja Leyland Finance
Limited. Also, she is a Designated Partner of M-Suite Mr. Baskar Babu Ramachandran holds 63,01,911 Equity
Leadership Consulting LLP and Individual Partner of shares in the Bank as on March 31, 2023.
Withya HR Fund LLP.
b) oard Meetings,
B Attendance and Committee
She does not hold any shares in the Bank as on membership
March 31, 2023. During the year under review, Nineteen (19) Board
meetings were held on April 28, 2022, May 18,
Mr. Ranjit Shah [DIN: 00088405] 2022, May 19, 2022, May 26, 2022, June 02, 2022,
Mr. Ranjit Shah is an Investor Director of the Bank w.e.f. June 21, 2022, June 28, 2022, July 05, 2022,
November 2, 2018. July 21, 2022, August 04, 2022, September 15,
2022, September 29, 2022, November 11, 2022,
He holds a Bachelor’s Degree in Electrical Engineering November 24, 2022, December 23, 2022, December 28,
from IIT – Bombay an MBA from the University of 2022, January 27, 2023, February 09, 2023 and
Michigan. He has several years of experience in March 24, 2023. The gap between any two meetings
sectors including private equity and financial services. did not exceed one hundred and twenty days.
75
Details of attendance of Directors at Board Meetings held during the financial year 2022-23 and at the last Annual General
Meeting (“AGM”) and the number of directorships and committee chairmanships / memberships held by them in other public
companies as on March 31, 2023, are given below:
Name of the Director and No. of Board Attendance No. of No. of Committee positions Directorship in other
Category meetings at last AGM directorships held in other Public Listed Entity and
attended/ held (August 26, in other Public Companies (Refer Note)## Category
during their tenure 2022) Companies Chairperson Member
(Refer Note)
Mr. R. Ramachandran 19/19 Yes - 1 - -
Part-time Chairperson and
Mr. Mrutunjay Sahoo 19/19 Yes - - - -
Mr. Jyotin Mehta1 19/19 Yes 8 4 4 JSW Ispat Special
Independent Director Products Limited
-Independent
Director
Amal Limited-
Linde India Limited-
Mrs. Meena Hemchandra2 3/3 Not 1 - - -
Independent Director Applicable
(upto May 22, 2022)
Mr. John Arunkumar Diaz 18/19 Yes - - - -
Mr. Krishna Prasad Nair 19/19 Yes 1 - - The India
Independent Director Cement Limited-
Dr. Mandeep Maitra3 8/10 Yes 2 - 1 -
(w.e.f. July 28, 2022)
Mr. Ranjit Shah4 10/19 Yes - - - -
Investor Director
Mr. Aleem Remtula5 9/10 Yes 1 - - -
Investor Director
Mr. Baskar Babu Ramachandran6 19/19 Yes - - - -
Managing Director & CEO
On request, leave of absence was granted to the concerned Directors who had expressed their inability to attend the respective meetings.
##
ote: Other directorships do not include directorships in private limited companies, foreign companies and companies under Section 8 of the
N
Act. Chairmanships/ memberships of Board Committees shall include Audit Committee and Stakeholders Relationship Committee only in other
Public Companies.
1
r. Jyotin Mehta (DIN:00033518) was re-appointed at the 14th AGM held on August 26, 2022 as Non-Executive Independent Director of
M
the Bank for a period of three (3) years effective from August 31, 2022 to hold office upto August 30, 2025. Further, in accordance with the
provisions of BR Act, the tenure of total 8 years of Mr. Jyotin Mehta, as a Director on the Board of the Bank, would be completed on February
12, 2025, considering his original date of appointment as February 13, 2017. Accordingly, he would hold office as an Independent Director of
the Bank upto February 12, 2025.
2
Mrs. Meena Hemchandra, Independent Director, has resigned from the position of an Independent Director of the Bank w.e.f. May 23, 2022 due
to personal reasons and to pursue other career opportunities. Further, the Bank has received confirmation from Mrs. Meena Hemchandra that
there are no material reasons for her resignation from the position of an Independent Director of the Bank.
3
r. Mandeep Maitra has been appointed as an Independent Director of the Bank for a period of five years w.e.f. July 28, 2022 vide Special
D
Resolution passed at the Annual General Meeting held on August 26, 2022.
4
Mr. Ranjit Shah, Investor Director, was re-appointed at the 14th AGM held on August 26, 2022, liable to retire by rotation.
5
Mr. Aleem Remtula, Investor Director, has been resigned from the position of Director w.e.f. September 01, 2022 due to his other pre-occupations.
6
Mr. Baskar Babu Ramachandran was re-appointed for further period of three years w.e.f. January 23, 2023 upto January 22, 2026 with the
approval of the RBI vide its letter no. DoR.GOV. No. S6124/29.44.006/2022-23 dated December 26, 2022 and of the members of the Bank vide
Special Resolution passed at the 14th AGM held on August 26, 2022.
76
Annual
Report 2022-23
c) Number of shares held by Non-Executive Directors: meetings is prepared and placed at the next Board
The details of Shareholding of Non-Executive Directors meeting/Committee meeting.
as on March 31, 2023 is as under:
The Board is regularly apprised and informed of
Name of Director Total Number of Shares important business-related information. The Board
held in the Bank as on meeting dates are finalised in consultation with all
March 31, 2023 the Directors in advance. However, whenever required,
Mr. R. Ramachandran, Nil additional meetings are held. Further, the agenda
(Part-time Chairperson and papers supported by comprehensive notes and
Independent Director) relevant information, documents and presentations
are circulated in advance to all the Board members
Mr. Mrutunjay Sahoo, Nil
which enable them to take informed decisions and
(Independent Director)
discharge their functions effectively. The Agenda for
Mr. Jyotin Mehta, Nil the Board meetings covers the necessary information
(Independent Director) to be placed before the Board of Directors as per
Mr. John Arunkumar Diaz, 22,000 Regulation 17(7) of the SEBI Listing Regulations read
Corporate Overview
(Independent Director) with Part A of Schedule II thereto to the extent these are
Mr. Krishna Prasad Nair, Nil relevant and applicable. The Board reviews the items in
(Independent Director) the agenda and particularly reviews and approves the
Dr. Mandeep Maitra Nil Financial Results, Annual Financial Statements, Annual
(Independent Director Operating Plans & Budgets. The compliance reports
w.e.f. July 28, 2022) pertaining to all laws applicable to the Bank are placed
before the Board on quarterly basis and minutes of
Mr. Ranjit Shah, Nil
Committee meetings are placed before the Board of the
(Investor Director)
Statutory Reports
Bank periodically.
The Bank does not have any convertible instruments.

3. COMMITTEES OF THE BOARD
Accordingly, none of the Non-Executive Director of the
Bank hold any convertible instrument of the Bank as on The Board has constituted several Committees to
March 31, 2023. deal with specific matters and the terms of reference
of each Committee is defined. The terms of reference
The meetings of the Board/ Committees of the Board of the Committees were modified by the Board at its
are convened by giving appropriate Notice. All members meeting held on May 15, 2023.
of the Board and Committees thereof strive to attend
all Board/Committee meetings, as applicable. In case As of March 31, 2023, there were nine (9) Committees
any member is unable to attend any meeting and of the Board as enlisted below:
requests leave of absence, the same is considered by Sr. Name of the Committee
the Board/ Committees. No.
1. Audit Committee
Necessary compliance pursuant to circulars issued by
Ministry of Corporate Affairs and SEBI were ensured 2. Nomination and Remuneration Committee
for the Board/ Committee meetings held through 3. Corporate Social Responsibility Committee
video conferencing mode (“VC”). The Board members 4. Risk Management Committee
attending the meetings through VC confirmed that 5. Special Committee of Board for Monitoring &
no other person was present or having access to the Follow-up of cases of Frauds and Review of
VC and also confirmed that audio / video was clearly Wilful Defaulters
audible and visible to them.
6. Customer Service Committee
The important decisions taken at the Board are 7. IT Strategy Committee
communicated to the respective department heads for 8. Credit Committee
the implementation of the said decisions. An Action 9. Stakeholders’ Relationship Committee
Taken Report arising out of the discussions at earlier
77
1. Audit Committee: 3) Recommendation for appointment, replacement,

The Bank has constituted the Audit Committee of the reappointment, remuneration and terms of
Board (“ACB”) in line with the provisions of Section 177 appointment of auditors of the Bank and approval
of the Act, applicable RBI Guidelines and Regulation 18 of appointment of Chief Financial Officer and Chief
Audit Officer after assessing the qualifications,
of the SEBI Listing Regulations. The Committee was last
experience and background, etc. of the candidate.
reconstituted on September 08, 2022. The Composition
And to approve the appointment/re-appointment
of the ACB as on March 31, 2023, is given below:
(including terms of appointment/ re-appointment)
Sr. Name of Members Designation of the Concurrent Auditors and Legal Auditors.
No.
1 Mr. Jyotin Mehta, Chairperson 4) Discussion with statutory auditors, internal
Independent Director auditors, secretarial auditors and cost auditors
before the audit commences, about the nature and
2 Mr. Mrutunjay Sahoo, Member
scope of audit as well as post-audit discussion to
ascertain any area of concern.
3 Mrs. Meena Hemchandra, Member
5) Reviewing and monitoring the auditor’s
(upto May 22, 2022)
independence and performance, and effectiveness
3 Mr. Krishna Prasad Nair, Member of audit process.
(w.e.f. September 08, 2022) 6) Reviewing, with the management, performance
4 Mr. John Arunkumar Diaz, Member of statutory, secretarial and internal auditors and
Independent Director adequacy of the internal controls system.
5 Mr. Ranjit Shah, Investor Member
Director 7) Monitoring the end use of funds raised through
public offers and related matters.
The Managing Director & CEO, the Chief Financial
Officer, the Chief Compliance Officer and the Chief 8) Reviewing, with the management, the statement
Audit Officer are invited for the ACB meetings. of uses/application of funds raised through an
Statutory Auditors are invited for the meetings where issue (public issue, rights issue, preferential issue,
audited financial results or results with limited review etc.), the statement of funds utilized for purposes
are considered. The Company Secretary acts as the other than those stated in the issue document/
Secretary to the Committee. prospectus/notice and the report submitted by
the monitoring agency monitoring the utilisation
The scope and functions of the ACB are governed by of proceeds of a public or rights issue, and making
the Board approved ACB Charter which is drawn up in appropriate recommendations to the Board to
line with the requirements of the relevant provisions of take up steps in this matter.
the Act, SEBI Listing Regulations and the RBI guidelines
9) To review valuation of undertakings or assets of
in this regard.
the Bank, wherever necessary.
The terms of reference of the Audit Committee are as
10) To look into the reasons for substantial defaults in
under:
the payment to the depositors, debenture holders,
1) Oversight of the Bank’s financial reporting process shareholders (in case of non-payment of declared
and the disclosure of its financial information to dividends) and creditors.
ensure that the financial statements are true, fair,
sufficient and credible. 11) To establish a vigil mechanism (whistle blower
mechanism) for Directors and employees to
2) Review the appropriateness, application and report their genuine concerns or grievances
quality of the accounting policies and practices and reviewing the Whistle blower policy and
and the financial reporting process. mechanism periodically.
78
Annual
Report 2022-23
12) To approve transactions of the Bank with related 22) To review management letters / letters of
parties as per the provisions of the Policy for internal control weaknesses issued by the
Related Party Transactions of the Bank and review Statutory Auditor.
significant transactions and matters related
thereto; Grant of omnibus approval for related 23) To provide a right to be heard to the Statutory
party transactions proposed to be entered into by Auditors and the key management personnel in the
the Bank subject to such conditions as prescribed meetings of the Audit Committee when it considers
and as amended from time to time. the auditor’s report but not the right to vote.
13) To review and monitor the internal audit charter 24) To ensure that any concerns raised by the Statutory
and annual internal audit plan. Auditors are addressed by the management and
bring any unaddressed concerns to the notice of
14) Approve, review and monitor the Risk Based the management and/or Board.
Internal Audit Plan.
25) To study the issues raised by Statutory Auditors
15) Review with the Chief Audit Officer the and raise appropriate flags to the management in
Corporate Overview
internal audit budget, resource plan, activities, case of repeated issues.
and organizational structure of the internal
audit function. 26) Approval of payment to statutory auditors for any
other services rendered by the Statutory Auditors.
16) To review with Internal Auditors on any significant
27) To ensure that IS audit of internal systems and
findings in the internal audit reports to the
processes is conducted at least once in a year to
management and ensure that corrective actions
assess the operational risks faced by the Bank.
are being taken in a timely manner.
Statutory Reports
28) Review the implementation and effectiveness
17) To review the Internal Audit reports relating to
of the financial and Risk Management policies
internal control weaknesses.
and processes and highlight any gaps
observed to the Board.
18) To review the findings of any internal
investigations by the Internal Auditors/Vigilance
29) Review and analyse various regulatory inspection
department into matters where there is suspected
and audit reports to identify inconsistencies
fraud or irregularity or a failure of internal control
and understand the Bank’s action plan to
systems of a material nature and report the
mitigate the same.
matter to the Board.
30) Review the effectiveness of the system for
19) To review the adequacy of internal audit function,
monitoring compliance with laws and regulations
if any, its policies including the structure of the
and the results of management’s investigation
internal audit department, staffing and seniority and follow-up (including disciplinary action) of
of the official heading the department, reporting any instances of non-compliance.
structure coverage and frequency of internal audit.
31) Review the findings of any examinations by
20) To periodically consult with the Statutory Auditors regulatory agencies, and auditor observations.
if required without the presence of management
about internal controls and fair presentation 32) Review the process for communicating the code
of financial statements in accordance with of conduct to Bank personnel, and for monitoring
accounting principles generally accepted in compliance therewith.
India, applicable regulatory requirements, and
provisions of Companies Act, 2013. 33) Obtain regular updates from management
regarding compliance matters.
21) To discuss and ascertain from the Statutory
Auditors post completion of the audit, areas of 34) a)
Review with the management, the annual
concern, if any. financial statements and auditors’ report
79
thereon before submission to the board for Regulations, 2015, as amended (“Listing
approval with particular reference to: Regulations”); and
i. Matters required to be included in the (ii) annual statement of funds utilized for
Director’s Responsibility Statement to be purposes other than those stated in the offer
included in the Board’s report, in terms document/prospectus/notice in terms of the
of the Companies Act, 2013; Listing Regulations.
ii. Changes, if any, in the accounting
36) With respect to Inspection reports of the Inspecting
policies and practices, with
team of Reserve Bank of India or any other regulator,
reasons for the same;
approve action plans for corrective actions to be taken
iii. Major accounting entries involving and monitor compliance thereof and review compliance
estimates based on the exercise of in respect of the Annual Financial Inspection conducted
judgment by management; by RBI on ongoing basis till the Bank furnishes full
compliance. ACB should closely monitor persisting
iv. Significant adjustments made in the
deficiencies pointed out in RBI Inspection Reports.
financial statements arising out of
audit findings;
37) Reviewing processes, accounting practices and
v. Compliance with listing and other legal their implementation and also to perform any other
and regulatory requirements relating to activities, as the ACB or the Board deems necessary
financial statements; or appropriate.
vi. Disclosure of related party transactions;
Meetings of the ACB:
vii. Qualifications and Modified opinions in During the year under review, the ACB met thirteen
the draft audit report; (13) times on April 11, 2022, May 19, 2022, June 21,
b)
Reviewing, with the management, the 2022, June 28, 2022, July 05, 2022, August 04, 2022,
quarterly financial statements before August 29, 2022, September 29, 2022, November 11,
submission to the Board for approval; 2022, November 28, 2022, January 27, 2023, February 09,
2023 and March 23, 2023.
c) Review of the financial statement and
auditors’ report thereon; The details of attendance at the meetings of the ACB
are given below:
35) Audit Committee shall mandatorily review:
Name of Members No. of No. of
a. management discussion and analysis of financial meetings meetings
condition and results of operations; held during attended
their tenure
b. statement of significant related party transactions
Mr. Jyotin Mehta 13 13
submitted by management;
Mr. Mrutunjay Sahoo 13 13
c. management letters / letters of internal control
Mrs. Meena Hemchandra 2 2
weaknesses issued by the statutory auditors; (upto May 22, 2022)
d. internal audit reports. Mr. John Arunkumar Diaz 13 13
Mr. Ranjit Shah 13 4
e. the appointment, removal and terms of
remuneration of the internal auditor shall be Mr. Krishna Prasad Nair 6 6
(w.e.f. September 08, 2022)
subject to review by the ACB; and
f. statement of deviations as and when 2. Nomination and Remuneration Committee:
becomes applicable: The Bank has constituted the Nomination and
Remuneration Committee (“NRC”) in line with the
(i) quarterly statement o deviation(s) including provisions of Section 178 of the Act, applicable RBI
report of monitoring agency, if applicable, Guidelines and Regulation 19 of the SEBI Listing
submitted to stock exchange(s) in terms Regulations and the Circulars issued by RBI in this
of Regulation 32(1) of the Securities regard, from time to time, which, inter alia, deals with
and Exchange Board of India (Listing the matters relating to appointments on the Board
Obligations and Disclosure Requirements)
80
Annual
Report 2022-23
and Senior Management, performance appraisal and 3. The person recommended to the Board for
compensation related matters of the Bank. appointment as a director shall have the
capabilities identified in such description.
The NRC evaluates fit and proper criteria of persons
who are qualified to become directors and who may be For the purpose of identifying suitable candidates,
appointed in senior management in accordance with the Committee may:
the criteria laid down, recommend to the Board for their
a)
use the services of an external
appointment and removal, and specifies the manner for
agency, if required;
effective evaluation of the performance of the Board,
Board’s Committees and individual Directors. The NRC consider candidates from a wide range
b)
formulates the criteria for determining qualifications, of backgrounds, having due regard
positive attributes and independence of a director to diversity; and
and recommends to the Board a policy, relating to
the remuneration for the directors, key managerial c)
consider the time commitments of
personnel and other employees of the Bank. Criteria for the candidates.
Corporate Overview
performance evaluation for Independent Directors are
4. Formulating the criteria for remuneration payable
provided in the Board’s Report.
to the Directors, Key Managerial Personnel, Senior
The Committee was last reconstituted on September 08, Management Personnel and other employees
2022. The Composition of NRC as on March 31, 2023, of the Bank and to recommend to the Board of
is given below: Directors a policy in this regard.
Sr. Name of Members Designation The Committee, while formulating the above
No. policy shall generally ensure that the level and
Statutory Reports
1 Mr. Mrutunjay Sahoo, Chairperson composition of remuneration be reasonable
Independent Director and sufficient to attract, retain and motivate
2 Mr. R. Ramachandran, Member managerial talent, meets appropriate performance
Independent Director benchmarks and involves a balance between fixed
3 Mr. John Arunkumar Diaz, Member and variable pay reflecting short and long term
Independent Director performance objectives appropriate to the Bank.
4 Mr. Krishna Prasad Nair, Member
The Committee shall also ensure that the above
5 Dr. Mandeep Maitra, Member policy is fully compliant with the statutory and
Independent Director regulatory guidelines issued from time to time
(w.e.f. September 08, 2022) on compensation to Key Management Personnel
6 Mr. Ranjit Shah, Member (KMP); Whole Time Directors (WTD); Chief
Investor Director Executive Officer (CEO); Material Risk Takers
(MRT) and Risk Control Function Staff (RCS).

The terms of reference of the Nomination and
Remuneration Committee are as under: 5. Identifying persons who are qualified to become
directors and who may be appointed in senior
1. Evaluate the mix of skills, knowledge, and
experience on the Board and on the basis of such management in accordance with the criteria laid
evaluation, prepare a description of the role and down under applicable provisions and policies
capabilities required of independent directors and of the Bank and recommend to the Board of
other directors. Directors, the appointment / re-appointment or
removal thereof. In the case of appointment /
2. Formulating the criteria for determining re-appointment of directors, the Committee shall
qualifications, industry knowledge, skill sets, ensure that the persons identified adhere to
experience, positive attributes, and independence the ‘fit and proper’ guidelines issued by RBI, the
of a director and to recommend to the Board of applicable provisions of the Companies Act, 2013,
Directors a policy, relating to the appointment / SEBI Listing Regulations and other applicable
re-appointment of the directors. provisions of the BR Act in this regard.
81
6. Formulating /reviewing the criteria for evaluation under the SEBI (Share Based Employee Benefits
of performance of all the directors and specifying and Sweat Equity) Regulations, 2021 and to
the manner for effective evaluation of performance allot shares pursuant to exercise of Stock
of the Board, its Committees and individual Options by employees.
directors to be carried out either by the Board, by
the Nomination and Remuneration Committee or 15. Reviewing the composition of the existing
by an independent external agency and review its Committees of the Board on annual basis and
implementation and compliance. to recommend to the Board the changes in the
composition of the existing Committees, if any,
7. Recommending extension to the terms of and also to recommend to the Board constitution
appointment of the Independent Directors, on the of the new Committees, as and when required,
basis of the report of performance evaluation of considering the regulatory and / or business
independent directors. requirements of the Bank.
8. Reviewing the “fit and proper” status of all the 16. Carrying out any other function as is mandated
Directors on the Board of the Bank, on an annual by the Board from time to time and /or enforced/
basis, in accordance with the statutory and mandated by any statutory notification,
regulatory guidelines in force. amendment or modification, as may be
applicable; and
9. Devising a policy on diversity of Board of Directors
and accordingly to review the structure, size, 17. Performing such other functions as may be
composition and diversity of the Board and make necessary or appropriate for the performance
necessary recommendations to the Board with of its duties pursuant to the applicable Laws /
regard to any changes in the composition of the Regulations / Rules thereunder.
Board as deemed necessary in accordance with
the extant norms and reviewing the policy on During the year under review, the Committee met six
diversity of Board of Directors. (6) times on April 28, 2022, May 19, 2022, July 21,
2022, September 13, 2022, November 24, 2022, and
10. Recommending to the Board, all remuneration, February 08, 2023.
in whatever form, payable to KMP, WTD,
CEO, MRT and RCS. The details of the meetings of NRC attended by the
members during FY 2022-23 are given below:
11. Recommending to the Board of Directors a policy
on succession planning for the board and senior Name of Members No. of No. of
management and overseeing and reviewing the meetings meetings
succession plans from time to time. held during attended
their tenure
12. Advising HR related policies and thereafter Mr. Mrutunjay Sahoo 6 6
reviewing the same on periodical basis. Mr. R. Ramachandran 6 6
13. To review the list of MRT, RCS and other categories Mr. John Arunkumar Diaz 6 6
of employees in accordance with extant guidelines. Mr. Krishna Prasad Nair 6 6
Dr. Mandeep Maitra (w.e.f. 3 3
14. Administering, monitoring, and formulating September 08, 2022)
detailed terms and conditions of the Employees’
Mr. Ranjit Shah 6 2
Stock Option Scheme of the Bank and to
consider grant of Stock Options or other share
All members of NRC are Non-Executive Directors,
linked instruments (by whatever name called)
and five out of six members of the Committee are
to employees of the Bank and to function as
Independent Directors. The Chairperson of the
the Compensation Committee as prescribed
Committee is an Independent Director.
82
Annual
Report 2022-23
3. Corporate Social Responsibility Committee: 3) To monitor the implementation of CSR

The Bank has constituted the Corporate Social objectives of the Bank;
Responsibility (“CSR”) Committee in line with the
provisions of Section 135 of the Act. 4) To monitor and oversee the CSR spend on various
projects/activities on periodical basis;
The Committee was last reconstituted on
September 08, 2022. The Composition of CSR 5) To formulate and recommend to the Board:
Committee as of March 31, 2023 is given below:
a)
An annual action plan and status of fund
Sr. Name of Members Designation utilisation, whenever required;
No. b) Details of need and impact assessment, if
1 Dr. Mandeep Maitra, Chairperson any, for the projects undertaken by the Bank
Independent Director and appoint the agency for carrying out
(w.e.f. September 08, 2022) impact assessment, as and when required;
2 Mr. R. Ramachandran, Member
c) The list of CSR projects or programmes that
Corporate Overview
are approved to be undertaken in areas or
(Chairperson upto September 07,
subjects specified in Schedule VII of the Act;
2022 and thereafter, continued as
member) d) The manner of execution of such projects or
3 Mr. Mrutunjay Sahoo, Member programmes as specified;
e)
The modalities of utilisation of funds
4 Mr. Baskar Babu Ramachandran Member
and implementation schedules for the
projects or programmes;
Statutory Reports
Independent Director f) Monitoring and reporting mechanism for
(upto May 22, 2022) the projects or programmes; whenever
6 Mr. Aleem Remtula, Member required in pursuance of Corporate Social
Independent Director Responsibility Policy.
6) To consider and recommend the Annual CSR
The terms of reference Corporate Social Responsibility Report to the Board for approval;
Committee are as under:
7) To report and communicate to the Bank’s
1) To Review and recommend to the Board, changes,
stakeholders on the CSR activities being
as and when required, in the Corporate Social
undertaken by the Bank for their awareness;
Responsibility Policy of the Bank, which shall
indicate the activities to be undertaken by the Bank
8) To perform any other functions or duties as may
as specified in Schedule VII of the Companies Act,
be assigned by the Board or as stipulated by the
2013, and Rules made thereunder, as amended
Reserve Bank of India or any other regulatory
from time-to-time;
authority or under any applicable laws as may be
2) To recommend the amount of expenditure to be prescribed from time to time.
incurred on CSR activities as indicated in the
CSR Policy to the Board in accordance with the During the year under review, the CSR Committee met
provisions of the Companies Act, 2013 and rules three (3) times on May 10, 2022, July 21, 2022, and
made thereunder; December 01, 2022.
83
The details of the meetings of the CSR Committee Ramachandran, the senior most member of the Committee,
attended by the members during FY 2022-23 chaired/headed the two (2) meetings of the Committee held on
June 16, 2022, and June 28, 2022.
are given below:
Name of Members No. of No. of The terms of reference of the Risk Management
meetings meetings Committee of the Board are as under:
held during attended 1) Formulation of a detailed Risk Management
their tenure Policies which shall include:
Dr. Mandeep Maitra 1 1
a. framework for identification of internal and
external risks specifically faced by the Bank,
Mr. R. Ramachandran 3 3
in particular including financial, operational,
Mr. Mrutunjay Sahoo 3 3 sectoral, sustainability, information security,
Mrs. Meena Hemchandra 1 1 cyber security risks or any other risk as may
(upto May 22, 2022) be determined by the Committee.
Mr. Aleem Remtula 2 2
(upto August 31, 2022) b. Measures for risk mitigation including
Mr. Baskar Babu 3 3 systems and processes for internal control
Ramachandran of identified risks.
c. Business Continuity Plan (BCP).
The CSR Policy of the Bank has been uploaded on the
website of the Bank at https://www.suryodaybank. 2) To frame and govern the risk strategy, and to
com/assets/pdf/policies/Corporate-Governance- approve the setting up of Bank’s risk appetite
Policies-CSR-Policy.pdf and limits and to ensure that appropriate
methodology, processes and systems are in place
4. Risk Management Committee: to monitor and evaluate risks associated with the
The Bank has constituted the Risk Management business of the Bank.
Committee of the Board (“RMCB”) in line with the
provisions of applicable RBI guidelines, SEBI Listing 3) To review all Board approved policies of the
Regulations and other applicable provisions. Bank from time to time which are routed through
functional Committees of the Board after review
The Committee was last reconstituted on September 08, and recommendation.
2022. The Composition of RMCB as on March 31, 2023
is given below: 4) To evaluate and establish a framework to set and
Sr. Name of Members Designation monitor limits across risk categories such as
No. credit risk, market risk, operational risk, strategic
1 Mr. John Arunkumar Diaz, Chairperson risk, compliance risk, reputation risk, exit strategic
Independent Director risk, information security and access risk, cyber
(Chairperson w.e.f. September 08, security risk, attrition risk etc. to mitigate any risk
2022) arising therefrom.
2 Mrs. Meena Hemchandra, Chairperson
5) To review, approve and recommend to the Board,
risk management policies, systems, processes,
(was Chairperson upto May 22, 2022)
and risk management framework periodically,
3 Mr. R. Ramachandran, Member
including by considering the changing industry
Independent Director#
dynamics and evolving complexity.
3 Mr. Jyotin Mehta, Member
6) To keep the Board of Directors informed about
4 Mr. Aleem Remtula, Member
the nature and content of its discussions,
recommendations, and actions to be taken.
5 Mr. Baskar Babu Ramachandran Member
7) To conduct the Meeting of Chief Risk Officer
Manging Director & CEO
with the Committee in accordance with RBI
# During the period from May 23, 2022 to September 07, 2022, Circular No.DBR.BP.BC.No.65/21.04.103/2016-17
as decided amongst the members of the Committee, Mr. R.
dated April 27, 2017.
84
Annual
Report 2022-23
8) To perform any other functions or duties as may Sr. Name of Members Designation
be assigned by the Board or as stipulated by the No.
Reserve Bank of India or any other regulatory
1 Mr. R. Ramachandran, Chairperson
prescribed from time to time.
(Chairperson w.e.f. September 08,
2022)
During the year under review, the RMCB met seven (7)
2 Mr. Krishna Prasad Nair, Member
times on May 18, 2022, June 16, 2022, June 28, 2022,
September 14, 2022, November 28, 2022, March 03,
(Chairperson of the Committee
2023 and March 13, 2023.
upto September 07, 2022 and
The details of the meetings of RMCB attended by the thereafter, continued as Member)
members during FY 2022-23 are given below: 3 Mr. Jyotin Mehta, Member
4 Mr. Mrutunjay Sahoo, Member
meetings meetings
Corporate Overview
held during attended
their tenure
5 Dr. Mandeep Maitra, Member
Mr. John Arunkumar Diaz 4 3 Independent Director
(w.e.f. September 08, 2022 (w.e.f. September 08, 2022)
as a Chairperson)
Mrs. Meena Hemchandra 1 1 Independent Director
(upto May 22, 2022) (upto May 22, 2022)
Mr. R. Ramachandran 7 7 7 Mr. Baskar Babu Ramachandran, Member
Statutory Reports
Mr. Jyotin Mehta 7 7 Managing Director & CEO
The terms of reference of the SCBF & RWD are as under:
Mr. Baskar Babu 7 7 1) To review cases of wilful defaults involving ` 25
Ramachandran lakhs and above and identified as such by the
management. Also to monitor and follow up
5. pecial Committee of Board for Monitoring & Follow-
S cases of frauds involving amounts of ` 1 Crore
up of cases of Frauds and Review of Wilful Defaulters and above so as to:
(SCBF & RWD) [Formerly known as Committee for
Review of Wilful Defaulters and Monitoring High Value a) Identify any lacunae in the system, that
Frauds (RWDF)]: facilitate perpetration of the fraud and put in
The Bank has constituted the Special Committee of place measures to plug the same;
Board for Monitoring & Follow-up of cases of Frauds
and Review of Wilful Defaulters (“SCBF & RWD”) in b) Identify reasons for delay in detection and
line with the provisions of applicable RBI guidelines. reporting of frauds to top management of the
During the year the name of the Committee was Bank and the Reserve Bank of India;
changed from “Committee for Review of Wilful
Defaulters and Monitoring High Value Frauds (RWDF)” c) Ensure that staff accountability is examined
to “Special Committee of Board for Monitoring & at all levels in the cases of frauds and action
Follow-up of cases of Frauds and Review of Wilful against staff, if required, is completed quickly,
Defaulters (SCBF & RWD)”. with minimum loss of time;
The Committee was last reconstituted on September 08, d) Review the efficacy of the remedial
2022. The Composition of SCBF & RWD as on March 31, action taken to prevent recurrence of
2023 is given below: frauds, such as strengthening of internal
control environment;
85
2) Analyse and review the trends of frauds and Name of Members No. of No. of
recommend strengthened monitoring in meetings meetings
fraud-prone areas. held during attended
their tenure
3) To review electronic / digital banking frauds; Mrs. Meena Hemchandra 0 0
(was member upto May 22,
4) Examine the procedures and responsibilities for 2022)
timely reporting of frauds to concerned regulatory Mr. Baskar Babu 3 3
and enforcement agencies; to review any other Ramachandran
similar organisation in respect of the cases and (w.e.f. September 08, 2022)
recovery position thereof;
6. Customer Service Committee:
5) To undertake NPA review on a periodic basis The Bank has constituted the Customer Service
in order to detect signals of potential fraud / Committee (“CSC”) in line with the provisions of
wilful default; applicable RBI guidelines.
6) To review/ consider publication of the The Committee was last reconstituted on September 08,
photographs of borrowers, including proprietors/ 2022. The Composition of CSC as of March 31, 2023
partners/directors/ guarantors of borrower firms/ is given below:
companies, who have been declared as willful
defaulters and Non-cooperative borrowers; and Sr. Name of Members Designation
No.
7) To perform any other functions or duties as may 1 Mr. R. Ramachandran, Chairperson
be assigned by the Board or as stipulated by the Independent Director
Reserve Bank of India or any other regulatory (Chairperson w.e.f. September
authority or under any applicable laws as may be 08, 2022)
prescribed from time to time. 2 Mr. John Arunkumar Diaz, Member
During the year under review, the Committee met three
(Chairperson of the Committee
(3) times on September 13, 2022, December 01, 2022,
upto September 07, 2022 and
and March 13, 2023.
thereafter, continued as Member)
The details of the meetings of SCBF & RWD Committee
attended by the members during FY 2022-23
are given below: 4 Mr. Ranjit Shah, Member
Investor Director
Name of Members No. of No. of 5 Dr. Mandeep Maitra, Independent Member
meetings meetings Director
their tenure
6 Mr. Baskar Babu Ramachandran, Member
Mr. R. Ramachandran 3 3
(Chairperson w.e.f.
September 08, 2022)
The terms of reference of the Customer Service
Mr. Krishna Prasad Nair 3 3
Committee are as under:
(Chairperson of the
Committee upto September 1) Assessing the overall implementation of
07, 2022 and thereafter, the Customer Service Policies of the Bank
continued as Member) and reviewing effective implementation of
Mr. Jyotin Mehta 3 3 RBI directives.
Mr. Mrutunjay Sahoo 3 3
(w.e.f. September 08, 2022) 2) Review of product approval process with respect
Dr. Mandeep Maitra 3 3 to suitability and appropriateness for the
(w.e.f. September 08, 2022) customers and reporting of launching of any new
products to the Committee.
86
Annual
Report 2022-23
3) Review of customer feedback gathered through 7. IT Strategy Committee:

customer satisfaction survey and suggest action The Bank has constituted the IT Strategy Committee
for improvement and undertake appropriate (“ITSC”) in line with the provisions of applicable
measures / steps to protect customer’s interests RBI guidelines.
and provide best in class services to the customers.
The Committee was last reconstituted on September 08,
4) Review of branding, marketing and customer 2022. The Composition of ITSC as of March 31, 2023
engagement activities of the Bank and to work as is given below:
a business support engine for growth of the Bank.
Sr. Name of Members Designation
5) Review of activities undertaken to promote No.
digital payments. 1 Mr. Krishna Prasad Nair, Chairperson
6) Review all the awards given by the Banking 2 Mrs. Meena Hemchandra, Member
Ombudsman and those awards remaining Independent Director
unimplemented for more than three months. (upto May 22, 2022)
Corporate Overview
7) To review at quarterly intervals the number of Independent Director
claims from deceased depositors. 4 Mr. John Arunkumar Diaz, Member
8) Perform any other functions or duties as may (w.e.f. September 08, 2022)
be assigned by the Board or as stipulated by the 5 Mr. Aleem Remtula, Investor Member
Reserve Bank of India or any other regulatory Director
authority or under any applicable laws as may be (upto August 31, 2022)
Statutory Reports
6 Mr. Baskar Babu Ramachandran, Member
During the year under review, the CSC met four (4)
times on May 17, 2022, August 03, 2022, November 07, The terms of reference of the IT Strategy Committee
2022, and February 07, 2023. are as under:
1) Review of technological developments in banking
The details of the meetings of CSC attended by the
industry having relevance to the operations of the
members during FY 2022-23, are given below:
Bank, risk management, cyber security etc.
meetings meetings 2) To approve and recommend to the Board an annual
held during attended IT related strategy, its alignment with the overall
their tenure business strategy, with risk management and its
Mr. R. Ramachandran 4 4 budget implications. Review implementation of
(was member till September the above on a quarterly basis.
07, 2022) [appointed
as Chairperson w.e.f. 3) Review of progress in project implementation.
September 08, 2022]
4) Review of vendor performance.
Mr. John Arunkumar Diaz 4 4
(Chairperson of the 5) Review of Disaster Recovery Site performance,
Committee upto September
the Business Continuity Plan (BCP) and matters
07, 2022 and thereafter,
related thereto and exercise oversight over
continued as Member)
the efficacy of the BCP/DR process adopted
Mr. Jyotin Mehta 4 4 by the Bank and recommend measures for
Mr. Ranjit Shah 4 2 its improvement.
6) Review IT organizational structure including IT-
training matters.
Mr. Baskar Babu 4 4
Ramachandran 7) Review compliance to various IT-related
inspection and audit reports.
87
8) Review Cyber Security framework and related 8. Credit Committee:

matters. The Bank has constituted the Credit Committee of the
Board (“CCB”) in line with the provisions of applicable
9) Approving policies related to IT and Information RBI guidelines.
security.
The Committee was last reconstituted on September 08,
10) Ensure that IT architecture, investment, 2022. The Composition of CCB as on March 31, 2023
organizational structure, resources and is given below:
performance measurement parameters are
geared to deliver business value and contribute to Sr. Name of Members Designation
the Bank’s growth. No.
1 Mr. Mrutunjay Sahoo, Chairperson
11) Perform oversight functions over the IT Steering
Committee (at a senior management level).
2 Mr. John Arunkumar Diaz, Member
12) Monitoring IT risks and controls. And Independent Director
evaluating effectiveness of management’s 3 Mr. Krishna Prasad Nair, Member
monitoring of IT risks. Independent Director
4 Mr. Aleem Remtula, Investor Member
13) Overseeing the aggregate funding of IT at a
Director (upto August 31, 2022)
bank-level and ascertaining if the management
has resources to ensure the proper 5 Mr. Baskar Babu Ramachandran, Member
management of IT risks. Managing Director & CEO
14) To perform any other functions or duties as may The terms of reference of the Credit Committee are as
be assigned by the Board or as stipulated by the under:
Reserve Bank of India or any other regulatory 1) Approval of the credit proposals, that are beyond
authority or under any applicable laws as may be the approval authority of the Executive Credit
prescribed from time to time. Committee / MD & CEO, within the limits stipulated
in the Credit Policy of the Bank, as amended,
During the year under review, ITSC met eight (8) times from time to time.
on April 13, 2022, May 10, 2022, June 15, 2022, July 19,
2022, July 29, 2022, September 14, 2022, November 23, 2) Review of the quality of the credit portfolio of the
2022 and February 07, 2023. Bank on a quarterly basis.
The details of the meetings of ITSC attended by the 3) Review of the Credit Policy and other Credit
members during FY 2022-23 are given below: related Policies of the Bank from time to time
together with the credit risk management policies
and suggest modifications as and when required.
meetings meetings
4) Review of trend in Quick Mortality and Performance
their tenure
of Restructured Book vis-à-vis Overall pool.
Mr. Krishna Prasad Nair 8 8
Mr. Jyotin Mehta 8 8 5) Review of enhancement of limits in various loan
products of the Bank viz., Commercial Vehicle,
Mrs. Meena Hemchandra 2 2
Housing Loan, Loan Against Property, JLG etc.
(upto May 22, 2022)
and recommend to the Board for approval.
Mr. John Arunkumar Diaz 3 3 6) Review list of proposals approved by the MD &
(w.e.f. September 08, 2022) CEO of the Bank.
Mr. Baskar Babu 8 8
Ramachandran
88
Annual
Report 2022-23
7) Review and recommend proposals for Sale of Sr. Name of Members Designation
stressed loans for approval by the Board of No.
Directors of the Bank.
1 Mr. R. Ramachandran, Chairperson
8) Review and recommend creation of various Independent Director
provisions relating to advances of the Bank for 2 Mr. John Arunkumar Diaz, Member
approval by the Board. Independent Director
(was Chairperson upto
9) Perform any other functions or duties as may September 07, 2022)
be assigned by the Board or as stipulated by the 3 Mr. Mrutunjay Sahoo, Member
Reserve Bank of India or any other regulatory Independent Director
4 Mr. Ranjit Shah, Member
Investor Director
During the year under review, the CCB met eleven (11) 5 Dr. Mandeep Maitra, Member
times on May 11, 2022, June 16, 2022, July 05, 2022, Independent Director
Corporate Overview
September 14, 2022, September 29, 2022, November 10, (w.e.f. September 08, 2022)
2022, November 28, 2022, December 23, 2022, March 03, 6 Mr. Krishna Prasad Nair Member
2023, March 13, 2023 and March 23, 2023. (upto September 07, 2022)
7 Mr. Baskar Babu Member
The details of the meetings of CCB attended by the
Ramachandran,
members during FY 2022-23 are given below:
Name of Members No. of No. of (w.e.f. November 24, 2022)
meetings meetings
Statutory Reports
held during attended The terms of reference of the Stakeholder’s Relationship
their tenure Committee are as under:
Mr. Mrutunjay Sahoo 11 11 1) To Resolve the grievances of the security holders of

the Bank including complaints related to transfer/
transmission of shares, non-receipt of annual
Mr. Krishna Prasad Nair 11 11 report, non-receipt of declared dividends, issue
Mr. Aleem Remtula 3 3 of new/duplicate certificates, general meetings
(upto August 31, 2022) etc. and assisting with quarterly reporting of
such complaints;
Mr. Baskar Babu 11 11
Ramachandran
2) To Review measures taken for effective exercise
of voting rights by shareholders;
9. Stakeholder’s Relationship Committee:
The Bank has constituted the Stakeholder’s Relationship 3) To review various measures and initiatives taken
Committee (“SRC”) in line with the provisions of by the Bank for reducing the quantum of unclaimed
Section 178 of the Act and Regulation 20 of SEBI dividends and ensuring timely receipt of dividend
Listing Regulations. warrants/annual reports/statutory notices by the
shareholders of the Bank: and
The Committee was reconstituted twice during the
year and lastly it was reconstituted on November 24, 4) To monitor and review the performance and
2022. The Composition of SRC as on March 31, 2023 services being rendered by the Registrar and
is given below: Transfer Agents of the Bank.
89
5) To Monitor and review any investor complaints, The details of the meetings of the SRC attended by the
in respect of general meetings, transfer / members during FY 2022-23 are given below:
transmission of shares and debentures of
the Bank, non-receipt of annual report of the Name of Members No. of No. of
Bank, non-receipt of declared dividends and meetings meetings
interest on debentures, delay in receipt of new held during attended
/ duplicate certificates, general meetings, etc., their tenure
received by the Bank or through RTA or through Mr. R. Ramachandran 2 2
SEBI SCORES portal and ensure their timely and (Chairperson w.e.f.
speedy redressal. September 08, 2022)
6) To oversee and review all matters connected (was Chairperson upto
with transfer, transmission, name deletion, September 07, 2022)
transposition, dematerialisation, rematerialisation, Mr. Mrutunjay Sahoo 4 4
splitting/subdivision, consolidation of securities Mr. Krishna Prasad Nair 2 2
issued by the Bank and transfer of unclaimed (upto September 07, 2022)
dividend/shares to Investor Education and
Mr. Ranjit Shah 4 2
Protection Fund (IEPF).
7) To review movements in shareholding and
ownership structure of the Bank. Mr. Baskar Babu 1 1
Ramachandran
8) The Committee shall oversee the various (w.e.f. November 24, 2022)
aspects of interests of all stakeholders of the
Bank, including the shareholders and other Compliance Officer:
security holders. Mr. Krishna Kant Chaturvedi acts as Company
Secretary and Compliance Officer and is responsible
9) The Committee may sub-delegate all or any of for the compliance with the requirements of the
its powers as referred in Clause (i) to (v) above Securities Laws and SEBI Listing Regulations with the
to the Managing Director & chief executive Stock Exchanges.
officer or the Company Secretary to ensure
timely and speedy resolution of any complaints/ The Bank maintains continuous interaction with
grievances/requests etc. KFIN Technologies Limited (Formerly known as KFIN
Technologies Private Limited), Registrar and Transfer
10) To perform any other functions or duties as may Agent (“RTA”) and takes proactive steps and action for
be assigned by the Board or as stipulated by the resolving complaints / queries of the shareholders and
Reserve Bank of India or any other regulatory takes necessary initiatives in solving critical issues.
prescribed from time to time. Further, the shareholders can lodge their complaints
on the SEBI Complaints Redressal System (SCORES)
This Committee oversees redressal of shareholders’ platform also, which is an online redressal system for
and debenture holders’ grievances and other investor grievances. The complaints received through
related matters. the said platform have also been resolved promptly
by the RTA/Bank.
During the year under review, the SRC met four (4) times
on May 11, 2022, August 03, 2022, November 07, 2022 There were no investor complaints received and
and February 08, 2023. disposed-off during FY 2022-23. The Bank has also
received 19 requests during the year which was
attended within the prescribed timeline.
90
Annual
Report 2022-23
Meeting of the Independent Directors: incentive / variable pay, as may be approved by the
The separate meetings of the Independent Directors Board and the RBI.
of the Bank were held on April 28, 2022 and
Details of remuneration paid to the Managing
October 20, 2022. All Independent Directors were
Director & CEO in FY 2022-23
present at the meetings.
Fixed Retirals: Perquisites Total Fixed
4. REMUNERATION OF DIRECTORS: Remuneration Contribution in cash or Remuneration
(including to Provident kind (₹) [in Lakhs]
i) Compensation Policy: allowances) for fund and (₹) [in Lakhs]
As per the provisions of sub-section (3) of Section FY-2022-23 Gratuity
(₹) [in Lakhs] (₹) [in Lakhs]
178 of the Act the Bank has a Policy on appointment
of Directors and Senior Management employees 148.12 11.88 0 160.00
which includes formulating criteria for determining
qualifications, attributes and independence of a Director. The Variable Pay to the Managing Director & CEO for
FY-2022-23 is within the limit as approved by the
The Board has, in accordance with the RBI guidelines
Members at 14th AGM of the Bank and subject to the
on compensation, formulated the Compensation Policy
Corporate Overview
approval of the RBI, which is awaited.
which became effective in FY 2020-21, which has
been amended from time to time. The Compensation
Mr. Baskar Babu Ramachandran holds 63,01,911
Policy institutes a mechanism for alignment of
Equity shares in the Bank as on March 31, 2023.
compensation of Whole-time Directors, Chief Executive
Being a Promoter Director, he is not eligible for grant of
Officer, Material Risk Takers, Control Function Staff and
any stock options.
other senior managerial personnel with the extent of
risks taken. The Policy also establishes standards on He sold 50,00,000 shares on December 16, 2022 to close
compensation including fixed and variable, which are a loan availed by him for exercising warrants in order to
Statutory Reports
in alignment with the applicable rules and regulations maintain the promoter’s stake at the minimum of 26%
including the RBI guidelines in this regard and which for the first 5 years (i.e. upto January 22, 2022), as per
is based on the trends and practices of remuneration the RBI Regulations. Post this transaction, his individual
prevailing in the banking industry. holding remained 63,01,911 Equity shares (5.94%).
ii) Remuneration paid to Executive Director: iii) Remuneration to Non-Executive Directors:

Remuneration of the Managing Director & CEO All the non-executive directors including the Independent
comprises of basic salary, special allowance, perquisites Directors receive sitting fees for each meeting of the
and retiral benefits as may be approved by the Board, Board and Board’s Committees. No stock options are
the shareholders and the RBI and performance granted to any of the Non-Executive Directors.
Details of sitting fees paid to Non-Executive Directors during FY 2022-23 are given below:
Name of Directors Sitting Fees paid for

meetings attended
(` in lakhs)
Mr. R. Ramachandran, Part-time Chairperson and Independent Director 20.9
Mr. Mrutunjay Sahoo, Independent Director 25.10
Mr. Jyotin Mehta, Independent Director 23.2
Mrs. Meena Hemchandra, Independent Director (upto May 22, 2022) 3.9
Mr. Ranjit Shah*, Investor Director Nil
Mr. Aleem Remtula, Investor Director (upto August 31, 2022) 8.10
Mr. John Arunkumar Diaz, Independent Director 23.9
Mr. Krishna Prasad Nair, Independent Director 22.3
Dr. Mandeep Maitra, Independent Director 7.1
* Mr. Ranjit Shah, Investor Director, has waived the sitting fees payable to him.
91
5. GENERAL BODY MEETINGS

a) Details of last three Annual General Meetings:
The day, date, time and venue of the Annual General Meetings (“AGMs”) held during the last three financial years, and
the special resolution(s) passed thereat by e-voting and poll are as follows:
Sr. Particulars Date and time Location Special Resolutions passed

No.
1 12th AGM of the Monday, Through Video Conferencing 1) To approve adoption of new set of
Bank September 28, (“VC”) / Other Audio-Visual Articles of Association (pursuant to
2020 at 3:30 p.m. Means (“OAVM”) pursuant to scheduled IPO)
Indian Standard Circular issued by Ministry of
Time (“IST”) Corporate Affairs and SEBI
2 13th AGM of the Monday, Through Video 1) To re-appoint Mr. Mrutunjay Sahoo
Bank September 20, Conferencing (“VC”) / (DIN: 00015715) as an Independent
2021 at 3:30 Other Audio-Visual Means Director of the Bank;
p.m. Indian (“OAVM”) pursuant to 2) To ratify the new set of Articles of
Standard Time Circular issued by Ministry of Association approved vide Special
(“IST”) Corporate Affairs and SEBI Resolution passed at the Annual General
Meeting of the Bank on September 28,
2020 prior to listing of Equity Shares of
the Bank
3) To ratify the “Suryoday ESOP Scheme
2019”
4) To approve revised remuneration
payable to the Managing Director &
Chief Executive Officer (MD & CEO),
Mr. Baskar Babu Ramachandran (DIN:
02303132)
3 14th AGM of the August 26, 2022 Through Video 1) To re-appoint Mr. Jyotin Kantilal Mehta
Bank at 3:30 p.m. Conferencing (“VC”) / (DIN:00033518) as an Independent
Indian Standard Other Audio-Visual Means Director of the Bank.
Time (“IST”) (“OAVM”) pursuant to
2) To appoint Dr. Mandeep Maitra,
Circular issued by Ministry of
(DIN: 06937451) as an Independent
Corporate Affairs and SEBI
Director of the Bank.
3) To approve the re-appointment of Mr.
Baskar Babu Ramachandran (DIN:
02303132) as Managing Director & Chief
Executive Officer (MD & CEO) of the
Bank.
4) To approve remuneration payable to
Mr. Baskar Babu Ramachandran (DIN:
02303132), Managing Director & Chief
Executive Officer (MD & CEO) of the
Bank.
b) During the year under review, there were no Extra Ordinary General Meeting held.
c) Whether any Special Resolution passed last year through postal ballot: No.
92
Annual
Report 2022-23
6. MEANS OF COMMUNICATION
The Bank has provided timely and adequate information in transparent manner to its members through the Stock
Exchanges and hosting of the information/ disclosures on the website of the Bank simultaneously.
Further, the unaudited and audited financial results, after approval by the Board, are disclosed to the Stock Exchanges as
per the requirements of the SEBI Listing Regulations. They are published in one English and Regional language (Marathi)
newspapers viz. Business Standard and Mumbai Lakshdweep respectively and also displayed on the Bank’s website
at https://www.suryodaybank.com/Financial-Result . The Presentations made by the management to Institutional
Investors/Analysts/Media are uploaded on the Bank’s website at https://www.suryodaybank.com/Disclosures-to-
Stock-Exchanges.
7. GENERAL SHAREHOLDER INFORMATION

Annual General Meeting of the Bank: Thursday, September 14, 2023 at 04:30 p.m.
Date, Time, Venue Through video Conferencing/ Other audio-visual means
Financial Year April 01 to March 31
Names and addresses of Stock 1. National Stock Exchange of India Limited (“NSE”)
Corporate Overview
Exchange where Equity Shares of Exchange Plaza, C-1, Block G, Bandra Kurla Complex,
the Bank are listed and Stock Code Bandra (E), Mumbai – 400 051
and confirmation on payment of Stock Code: SURYODAY
Listing fees 2. BSE Limited (“BSE”)
Phiroze Jeejeebhoy Towers,
Dalal Street, Fort, Mumbai – 400001
Stock Code: 543279
The Equity Shares of the Bank are listed on the aforesaid Stock Exchanges
Statutory Reports
with effect from March 26, 2021 and the annual listing fees for FY 2022-23
have been paid.
The securities of the Bank have not been suspended from trading on the
said Stock Exchanges or by any Regulatory/ Statutory Authority.
ISIN INE428Q01011
Dividend Payment date The Bank has not proposed any Dividend for the FY 2022-23.
Outstanding global depository None
receipts or American depository
receipts or warrants or any
convertible instruments, conversion
date and likely impact on equity
Listing of Debt securities of the The Bank has one series of the Non-Convertible Debentures bearing ISIN
Bank INE428Q08073, with the Security Code 960033 listed on the Wholesale Debt
Segment of the BSE Ltd.
Further, Non-Convertible Debentures bearing ISIN INE428Q08032, with the
Security Code 954948 was redeemed on July 26, 2022 and Debenture Trustee
of these Non-Convertible Debentures was the Catalyst Trusteeship Limited.
Name and addresses of Debenture Beacon Trusteeship Limited
Trustee 4C & D Siddhivinayak Chambers,
Gandhi Nagar, Opp. MIG Cricket Club
Bandra (East), Mumbai 400 051
93
Registrar and Share Transfer KFin Technologies Limited

Agent for Equity Shares and Non- (Formerly known as KFin Technologies Private Limited)
Convertible Debentures Unit: Suryoday Small Finance Bank Limited
Selenium Building, Tower B,
Plot No. 31-32, Financial District,
Nanakramguda, Serilingampally, Hyderabad,
Rangareddi, Telegana–500 032, India
Phone No: 040-6716 2222; Fax No.: 040 -23001153
Toll Free No. 1- 800-309-4001
Email: einward.ris@kfintech.com
Dematerialisation of shares and The equity shares of the Bank are available for trading in the dematerialised form
liquidity under both the depositories in India - National Securities Depository Limited
(“NSDL”) and Central Depository Services (India) Limited (“CDSL”). Trading in
Bank’s equity shares can be done only in the dematerialised form.
Position of Equity shares as on March 31, 2023:
Sr. No. Description Number of Equity % to Equity Share
Shares Capital
1 NSDL 9,11,58,606 85.87
2 CDSL 1,49,98,052 14.13
3 Physical 2,091 0.00
Total 10,61,58,749 100.00
Over 99.99 percent of the Equity Shares of the Bank are in dematerialized form
and transfer of these shares is carried out through the Depositories without the
involvement of the Bank.
With respect to shares held in physical form, no request for transfer of shares
is processed by the Bank. Such shareholders are requested to get their shares
dematerialized. The Bank has been following up with such shareholders for
dematerialisation of their shares held in physical form.
SEBI Complaints redressal systems The Bank is registered with SEBI Complaints redressal systems (SCORES).
(SCORES):
Distribution of shareholdings Details provided below
Demat Suspense Account 196 Equity shares, which were allotted to 4 shareholders during the IPO in March
2021, were lying the Demat Suspense Account as on March 31, 2021. Of 196
Equity shares, 147 equity shares had already been transferred to 3 shareholders
during FY-2021-22 and remaining 49 equity shares have been transferred to
respective Shareholder’s Demat Account on December 07, 2022.
As on March 31, 2023 there was NIL shares in the Demat Suspense Account.
Details of credit ratings The details of all credit ratings obtained by the Bank for all debt instruments are
furnished in the Directors’ Report.
Address for correspondence Company Secretary and Compliance Officer
Unit No. 1101, Sharda Terraces,
Plot no. 65, Sector-11, CBD Belapur,
Navi Mumbai-400614
Shareholders’ Helpdesk: Dedicated email id for Shareholders’ queries/grievances:
company.secretary@suryodaybank.com
Dedicated email id for Investors’ queries /grievances:
inv.relations@suryodaybank.com
Banking Customer Helpdesk In the event of any queries/complaints, banking customers can directly approach
to the Branches or can call/write to the Bank using the following contact details
of Smile Centre Call: Customer care (Phone Banking) Numbers: 1800 266 7711
or Write to smile@suryodaybank.com
94
Annual
Report 2022-23
Distribution of Shareholding as on 31/03/2023 (TOTAL)

Sl. Category (Shares) No. of. Holders % To Holders No. of Shares % To Equity
No.
1 1- 5000 93681 99.32 13290525 12.52
2 5001 - 10000 303 0.32 2310078 2.18
3 10001 - 20000 151 0.16 2180602 2.05
4 20001 - 30000 51 0.05 1274066 1.20
5 30001 - 40000 34 0.04 1212682 1.14
6 40001 - 50000 23 0.02 1101182 1.04
7 50001 - 100000 25 0.03 1885740 1.78
8 100001 & Above 53 0.06 82903874 78.09
Total 94321 100.00 106158749 100.00
Corporate Overview
Shareholding pattern as on March 31, 2023:
Sr Category and name of shareholder No. of fully paid up %
No. equity shares held
A Promoter & Promoter Group
A1 Indian
a Individuals/Hindu undivided Family 12801398 12.06
b Central Government/ State Government(s) 0 0.00
Statutory Reports
c Financial Institutions/ Banks 0 0.00
d Any Other (specify) 11933334 11.24
Sub-Total (A)(1) 24734732 23.30
A2 Foreign
a Individuals (Non-Resident Individuals/ Foreign Individuals) 0 0.00
b Government 0 0.00
c Institutions 0 0.00
d Foreign Portfolio Investor 0 0.00
e Any Other (specify) 0 0.00
Sub-Total (A)(2) 0 0.00
Total Shareholding of Promoter and Promoter Group (A)= (A)(1)+(A)(2) 24734732 23.30
B Non-Promoters’ holding or Public shareholder
B1 Institutions
a Mutual Funds/ 4841291 4.56
b Venture Capital Funds 2948971 2.78
c Alternate Investment Funds 5223528 4.92
d Foreign Venture Capital Investors 0 0.00
e Foreign Portfolio Investors 1239423 1.17
f Financial Institutions/ Banks 1056742 1.00
g Insurance Companies 8140997 7.67
h Provident Funds/ Pension Funds 0 0.00
i Any Other (specify) 0 0.00
Sub-Total (B)(1) 23450952 22.09
95
Sr Category and name of shareholder No. of fully paid up %

No. equity shares held
B2 Central Government/ State Government(s)/ President of India 0 0.00
Sub-Total (B)(2) 0 0.00
B3 Non-institutions
a Individuals -
i Individual shareholders holding nominal share capital up to ` 2 15961498 15.04
lakhs.
ii Individual shareholders holding nominal share capital in excess 10640613 10.02
of ` 2 lakhs.
b NBFCs registered with RBI 6450 0.01
c Employee Trusts 0 0.00
d Overseas Depositories (holding DRs) (balancing figure) 0 0.00
e Any Other (specify) 31364504 29.54
Sub-Total (B)(3) 57973065 54.61
Total Public Shareholding (B)= (B)(1)+(B)(2)+(B)(3) 81424017 76.70
C Non-Promoters’ holding or Non-Public shareholder (GDRs)
1 Custodian/DR Holder 0 0.00
2 Employee Benefit Trust (under SEBI (Share based Employee 0 0.00
Benefit) Regulations, 2014)
Total Non-Promoter- Non Public Shareholding (C)= (C)(1)+(C)(2) 0 0.00
Grand total (A+B+C) 106158749 100.00
Market price Data: High, Low during each month in last financial year:
Month BSE NSE
High (`) Low (`) Volume High (`) Low (`) Volume
Apr-22 151.85 94.3 11,88,549 151.7 105.4 1,45,10,066
May-22 141.7 97.95 3,77,504 141.1 97.75 44,88,804
Jun-22 102.6 78.1 3,45,918 102.6 78.15 27,93,259
Jul-22 92.15 79.7 4,42,551 92.2 79.75 36,45,993
Aug-22 104.2 90.65 7,88,703 104.15 90.7 61,52,564
Sep-22 115.9 94.05 7,37,196 115 94 61,90,768
Oct-22 102.15 94.95 2,95,510 101.9 94.8 24,29,966
Nov-22 108.35 95.05 5,98,054 108.4 95 61,56,033
Dec-22 127.35 99.4 1,08,12,549 127.1 99.8 2,67,79,441
Jan-23 122.3 103.4 10,99,113 122.25 103.45 87,39,972
Feb-23 109.6 96.5 6,66,014 109.75 95.6 77,96,980
Mar-23 101.58 92.15 6,31,612 101.4 91.55 67,93,496
96
Annual
Report 2022-23
Performance of the Bank’s Equity shares as compared with indices:

A) SSFB vis-a-vis NIFTY – FY 2022-23
170
Suryoday SFB Nifty 50
150
130
110
90
70
May-22
Aug-22
Nov-22
Mar-23
Dec-22
Sep-22
Jun-22
Jan-23
Feb-23
Apr-22
Oct-22
Jul-22
Corporate Overview
Particulars Market Cap as on 31-Mar-23 01-Apr-22 % Change
31st March 2023 (` Cr)
Suryoday Small Finance 1,011 95.25 93.80 1.5%
Bank Ltd.
NIFTY 50 17,359.75 17,670.45 -1.8%
Statutory Reports
NIFTY BANK 40,608.65 37,148.50 9.3%
B) SSFB vis-a vis SENSEX- FY 2022-23
170
Suryoday SFB S&P BSE Sensex
150
130
110
90
70
May-22
Aug-22
Nov-22
Mar-23
Dec-22
Sep-22
Jun-22
Jan-23
Feb-23
Apr-22
Oct-22
Jul-22
Particulars Market Cap as on 31-Mar-23 01-Apr-22 % Change

31st March 2023 (` Cr)
Suryoday Small Finance 1,009 94.30 95.06 -0.8%
Bank Ltd.
S&P BSE Sensex 58,991.52 59,276.69 -0.5%
Commodity Price Risk or Foreign Exchange Risk and Hedging activities:

The Bank is not exposed to foreign exchange risk and hedging activities.
97
Share transfer system: Succession Planning:

As mandated by SEBI, securities of the Bank can Succession planning is an effective tool for any
be transferred /traded only in dematerialised form. organization to ensure smooth succession generally
Further, SEBI vide its circular dated January 25, across employees of all levels and specifically with
2022, mandated that all service requests for issue of members of the Board and senior management personnel
duplicate certificate, claim from unclaimed suspense without affecting the current roles and responsibilities
account, renewal/ exchange of securities certificate, and facilitating leadership and management continuity.
endorsement, subdivision/splitting/ consolidation Succession planning involves identification and
of certificate, transmission and transposition which assessment of potential and developing the next
were allowed in physical form should be processed generation of leaders to assume higher responsibilities
and key leadership roles in the Bank.
in dematerialised form only. Further, the shareholders
holding shares in physical form are requested to avail the
In terms of SEBI Listing Regulations and other
facility of dematerialisation. The Bank’s shares are traded
applicable circulars / guidelines issued by RBI, the Bank
under compulsory dematerialised mode. A half-yearly
has formulated Policy on Succession Planning for the
certificate of compliance with the share transfer
Managing Director/Whole-time/Executive directors,
formalities as required under Regulation 40(9) of the Non-executive directors, Independent directors and
SEBI Listing Regulations is obtained from the Company other members of the Board and senior management
Secretary in Practice and a copy of the certificate is filed personnel of the Bank.
with the Stock Exchanges and available on the website
of the Bank at https://www.suryodaybank.com/assets/ Plant Locations:
pdf/Certificate_under_Regulation_40(9)_for_the_Year_ Being a Banking Company, the Bank operates its
ended_March_31_2023_April_12_2023.pdf. business through a network of 577 Branches. The details
of the Branch Addresses are available on the website of
Board Diversity: the Bank at https://locate.suryodaybank.com/#/ .
The Bank believes that Board diversity plays a
very important role in the transparency and in 8. OTHER DISCLOSURES:
the decision-making process in the Boardroom. a) Related Party transactions:
The Bank has formulated and implemented Policy The Bank has a Board-approved Policy to deal with
to Promote Diversity of Board of Director to comply related party transactions and the same has been
with the Regulation 19(4) read with Part D of SEBI uploaded on the Bank’s website at:-
Listing Regulations and other applicable circulars /
https://www.suryodaybank.com/assets/pdf/policies/
guidelines issued by RBI. S u r y o d a y _ R e l a t e d _ P a r t y _ Tra n s a c t i o n _ P o l i c y _
FY_22_23_2.0.pdf
The objective of this Policy is to provide a framework and
set standards for having a diversified Board which would During the year, there were no related party transactions
facilitate better decision making leveraging different undertaken by the Bank.
qualifications, skills, knowledge, and experience of the
Board members and offering broader perspectives that b) Vigil Mechanism/ Whistle Blower Policy:
are directly relevant to the business. In line with the provisions of SEBI Listing Regulations,
the Act and the principles of good governance, the
The Bank further believes that a diversified Board Bank has devised and implemented a vigil mechanism.
enhances board effectiveness and contributes The Bank has a Board approved Whistle Blower Policy
towards driving business results, making corporate which has been uploaded on Bank’s website at:-
governance more effective, enhancing the quality
and decision-making capability, ensuring sustainable https://www.suryodaybank.com/assets/pdf/policies/
development, and enhancing the reputation of the Bank. Suryoday_Whistle_Blower_Policy_FY22_23_1.0.pdf
and details of the vigil mechanism are furnished in the
The Board Diversity Policy is available on the website of Directors’ Report. No person has been denied access to
the Bank www.suryodaybank.com the Audit Committee.
98
Annual
Report 2022-23
c) isclosures under the Sexual Harassment of Women at

D f) ompliance with Mandatory Requirements of the SEBI
C
Workplace (Prevention, Prohibition and Redressal) Act, Listing Regulations and Adoption of Non-mandatory
2013: requirements of the SEBI Listing Regulations
Disclosures are furnished in the Directors’ Report. i. Compliance with Mandatory Requirements of SEBI
Listing Regulations:
Particulars No. of
Complaints The Bank has complied with all applicable
mandatory requirements of the Code of Corporate
Number of Complaints carries 1
Governance as per the SEBI Listing Regulations.
forward from last year (FY’22)
Number of Complaints filed during 1 ii. Adoption of Non- mandatory requirements of
the Financial Year (FY’23) the SEBI Listing Regulations (Discretionary
Number of Complaints disposed of 2 requirements as specified in Part E of Schedule II
during the Financial Year (FY’23) of SEBI Listing Regulations):
Number of Complaints pending as on 0 • The Board:
the end of the Financial Year (FY’23) The Bank has a non-executive Part-time
Corporate Overview
Chairperson in terms of the provisions of the
The Policy on Prevention of Sexual Harassment BR Act and his office is separate from the
has been uploaded on Bank’s website at:- https:// office of the Managing Director & CEO and the
w w w. s u r yo d ay b a n k . c o m / a s s e t s / p d f / p o l i c i e s / appointment of both the Chairperson and the
sexual-harassment-policy.pdf Managing Director & CEO, is approved by RBI
pursuant to the provisions of the BR Act.
d) Familiarisation Programme for Independent Directors:
The Independent Directors of the Bank have attended Further, the Chairperson of the Bank is not
various programs conducted online or in physical related to the Managing Director & CEO of
Statutory Reports
mode by CAFRAL, MFIN, ASSOCHAM in association the Bank as per the definition of the term
with Centre for Corporate Governance & Citizenship, “relative” defined under the Act.
IIM Bangalore and other organisations. They have also
attended programs organised by the management • Shareholders’ Rights:
team of the Bank. The details of the programs attended Apart from the quarterly update on the financial
by the Independent Directors is provided in the performance, the Bank also provides detailed
website of the Bank at:- https://www.suryodaybank. update in form of Investor presentation for
information of the shareholders.
com/assets/pdf/policies/Familiarisation-Programs-
for-Independent-Directors.pdf
The Bank also publishes its financial results,
e) Total fees for all services paid by the Bank to the investors’ presentations, call transcripts and
Statutory Auditors for FY 2022-23 are detailed below: Press releases every quarter and also when
there is any investor event, on its website at
Sr. Name of Members Designation www.suryodaybank.com which is accessible
No. to the public at large.
1 Audit fees (existing and Former 97
Statutory Auditors) Further, information pertaining to important
developments of the Bank such as,
2 Fees for certification and other 0
technology transformation etc. was bought
attestation services
to the knowledge of the public at large and
3 Non-Audit Fees 8 to the shareholders through communications
(Fees for certification and other sent to the stock exchanges where the shares
attestation services) of the Company are listed.
Total 105
99
• Modified opinion(s) in audit report: k) In terms of Schedule V of the SEBI Listing Regulations
The financial statements of the Bank for FY and the BR Act, the details of core skills / expertise
2022-23 are with unmodified audit opinion. / competencies, identified by the Board as required in
the context of the Bank’s businesses and sector(s) for
• Reporting of Internal Auditor: it to function effectively and those actually available
The Chief Audit Officer of the Bank reports with the Board, are as follows:
directly to the Audit Committee of the Board. The Board has identified the following areas of special
knowledge or practical experience which would be
g) eb link where policy for determining ‘material’
W considered for appointment of persons as Directors of
subsidiaries is disclosed: the Bank in line with the relevant provisions of the BR
The Bank does not have subsidiaries. Act and relevant circulars issued by the Reserve Bank of
India from time to time, as required under SEBI Listing
h) Strictures and Penalties for last three financial years: Regulations and other applicable regulations.
There were no strictures during last three financial
i. Accountancy,
years. During the year under review, the Reserve Bank
of India had imposed a monetary penalty of ₹57.75 ii. Agriculture and Rural Economy,
lakh (Rupees Fifty-seven lakh seventy-five thousand iii. Banking,
only) on the Bank for non-compliance with the ‘Reserve
Bank of India (Frauds classification and reporting by iv. Co-operation,
commercial banks and select FIs) directions 2016’ due v. Economics,
to delayed reporting of frauds and failure to report fraud
complaints to the police authorities in certain cases. vi. Finance,
vii. Law,
i) Performance Evaluation:
viii. Small-Scale Industry,
The Bank has put in place a mechanism for performance
evaluation of the Directors. The details of the same ix. Information Technology,
have been included in the Directors’ Report.
x. Payment & Settlement Systems,
j) Details of utilisation of funds raised through preferential xi. Human Resources,
allotment or qualified institutional placement:
xii. Risk Management,
During the year under review, the Bank has not raised
any funds through preferential allotment or qualified xiii. Business Management
Institutions placement as specified under Regulation
32(7A) of the SEBI Listing Regulations.
xiv. Any other matter the special knowledge of, and practical experience in, which would, in the opinion of the RBI, be
useful to the Bank’s Business / Sectors:
Sr. Name Designation Expertise

No.
1. Mr. R. Rajaraman Part-time Chairperson Agriculture and Rural Economy, Banking, Small-Scale
and Independent Director Industry, Finance, Risk management and Business
management.
2. Mr. Mrutunjay Sahoo Independent Director Agriculture and Rural Economy, MSME sector, Finance,
Banking, co-operation, Economics, Small Scale Industry,
Banking
3. Mr. Jyotin Kantilal Mehta Independent Director Accountancy, Banking, Risk Management, Small Scale
industry, Information Technology,
4. Mr. John Arunkumar Diaz Independent Director Agriculture and Rural Economy, Banking, Finance, Small
Scale industry, healthcare and distribution, Manufacturing
5. Mrs. Meena Hemchandra Independent Director Banking, Accountancy, Finance, Small Scale Industry, Risk
(upto May 22, 2022) Management, Information Technology
100
Annual
Report 2022-23
Sr. Name Designation Expertise

No.
6. Mr. Krishna Prasad Nair Independent Director Corporate Banking, Retail Banking, Human Resources,
Information Technology and Administration & Facilities
Management
7. Dr. Mandeep Maitra Independent Director Human Resource, Personnel Management & Industrial
(w.e.f. July 28, 2022) Relations, CSR related activities, Banking, Finance
8. Mr. Ranjit Shah Investor Director Business Management, Information Technology,
consumer, finance, Infrastructure
9. Mr. Aleem Remtula Investor Director Business Management, Venture Capital, Economics,
(upto August 31, 2022) Finance, Agriculture, Small-Scale Industries, Advisor
10. Mr. Baskar Babu Managing Director & CEO Rural Economy, Banking, Small Scale Industry, Business
Ramachandran Management, Finance, Engineering, Risk Management
Brief profile of the Directors of the Bank has been o) Queries at Annual General Meeting
Corporate Overview
uploaded on the website of the Bank at https:// Shareholders who wish to ask questions/express their
www.suryodaybank.com/about-us views on the items of the businesses to be transacted at
the meeting are requested to write to the Bank’s investor
l) erms and Conditions for Appointment of Independent
T e-mail-id: company.secretary@suryodaybank.com with
Directors regard to the accounts at least 48 hours before the
A formal Letter of Appointment is addressed to the time fixed for the AGM mentioning their name, demat
Independent Director(s) at the time of their appointment. account number/folio number, e-mail ID, mobile number
The terms and conditions of Appointment of Independent etc. The queries may be raised precisely and in brief to
Directors have been disclosed on the website of the enable the Bank to answer the same suitably depending
Statutory Reports
Bank at:- https://www.suryodaybank.com/assets/pdf/ on the availability of time at the AGM.
policies/Independent-Directors-T&C.pdf.
p) Policies of the Bank
As mentioned earlier in the report, All the Independent The Bank has adopted various policies/ codes over
Directors have submitted the requisite declarations period of time as a part of good Corporate Governance
stating that they meet the criteria of independence practices and same is available on the website
prescribed under Section 149(6) of the Act, Regulation of the Bank at https://www.suryodaybank.com/
16(1)(b) of SEBI Listing Regulations and other Corporate-Governance-Policies.
applicable statutory provisions which have been taken
on record by the Board. In the opinion of the Board, all q) Accounting Treatment
Independent Directors fulfil the conditions specified in
The financial statements have been prepared in
the SEBI Listing Regulations and are independent of
accordance with requirements prescribed under the
the management.
Third Schedule (Form A and Form B) of the BR Act and
the guidelines issued by the Reserve Bank of India (RBI)
m) Directors and Officers Insurance (‘D&O’)
from time to time. The accounting and reporting policies
In line with the requirements of Regulation 25(10) of of the Bank used in the preparation of these financial
the SEBI Listing Regulations, the Bank has taken D&O statements conform to Generally Accepted Accounting
Insurance for all its Directors and Officers for such Principles in India (Indian GAAP), the guidelines issued
quantum and for such risks as determined appropriate by the Reserve Bank of India (RBI) from time to time,
by the Board of Directors. the accounting standards notified under Section 133
of the Act and Companies (Accounting Standards)
n) Criteria for Appointment of Independent Directors Amendment Rules, 2016 to the extent applicable and
The Nomination & Remuneration Committee practices generally prevalent in the banking industry
while considering the proposal for appointment of in India. The Bank follows the accrual method of
Independent Directors also considers the criteria of accounting and the historical cost convention, unless
independence prescribed under the Act, SEBI Listing otherwise stated by RBI guidelines.
and other applicable Rules and Regulations.
101
r) Code of Conduct for Prevention of Insider Trading: t) Code of Conduct and Ethics
The Bank has formulated the Code of Conduct for The Board has formulated and adopted Code of
Prevention of Insider Trading (“Bank’s Code”), in Conduct and Ethics for the Board of Directors and
accordance with the SEBI (Prohibition of Insider Senior Management. The same has been hosted on
Trading Regulations) 2015 (the “PIT Regulations”), as the website of the Bank at https://www.suryodaybank.
amended from time to time, to regulate, monitor and c o m / a s s e t s / p d f / p o l i c i e s / S u r yo d ay _ C o d e _ o f _
report trading by the Designated Persons specified conduct_applicable_to_Directors_&_Sr_Mgmt_of_the_
therein and their Immediate Relatives in securities of Bank_FY22-23_1.0.pdf.
the Bank and for dealing in securities listed or proposed
to be listed (other than securities of the Bank), by The Declaration signed by the Managing Director &
the Designated Persons specified therein and their CEO of the Bank stating that the members of Board
Immediate Relatives, and enumerating practices and of Directors and Senior Management Personnel have
procedures for Fair Disclosure of Unpublished Price affirmed compliance with the Code of Conduct of Board
Sensitive Information. of Directors and Senior Management is annexed and
forms part of this Report.
Thus, Bank endeavours to preserve the confidentiality
of unpublished price sensitive information and to u) Compliance certificate on Corporate Governance
prevent misuse of such information. The Bank is The Bank has obtained a certificate affirming
committed to transparency and fairness in dealing with the compliance with the Corporate Governance
all stakeholders and in ensuring adherence to all laws requirements under SEBI Listing Regulations
and regulations. from Mr. Tushar Shridharani, Practicing Company
Secretary, Mumbai which forms part of this report.
The Prevention of Insider Trading Policy is available on Tushar Shridharani has confirmed that the Bank has
the website of the Bank at https://www.suryodaybank. complied with the conditions of Corporate Governance
com/assets/pdf/policies/Suryoday_Insider_Trading_ as prescribed under SEBI Listing Regulations.
Policy_FY_22-23_1.0.pdf.
v) ecommendations of Committee not accepted by
R
Further, the Bank has also maintained Structured Digital Board of Directors:
Database (“SDD”) in compliance with the Regulation
There are no recommendations of the Committee that
3(5) and 3(6) of the Securities and Exchange Board of
are not accepted by the Board of Directors of the Bank.
India (Prohibition of Insider Trading) Regulations, 2015.
Further, the SDD is fully updated in accordance with the
w) Managing Director & CEO / CFO Certification
abovementioned Rules.
The Managing Director & CEO and the Chief Financial
s) Dividend Distribution policy Officer have issued certificate pursuant to the provisions
of Regulation 17(8) of the SEBI Listing Regulations, for
In terms of the provisions of Regulation 43A of the SEBI
the FY 2022-23 and the same was placed before the
Listing Regulations, the Board of Directors of the Bank
Board of Directors at its meeting held on May 15, 2023.
has formulated and approved the Dividend Distribution
Policy with the objective of providing clarity to its
For and on behalf of the Board
stakeholders on the profit distribution strategies of
the Bank. The policy is in line with the parameters
prescribed thereunder for payment / distribution of
R. Ramachandran Baskar Babu Ramachandran
dividend to the shareholders.
Part-time Chairperson & Managing Director & CEO
The said Policy is available on the website of the Bank at:- Independent Director [DIN 02303132]
https://www.suryodaybank.com/assets/pdf/policies/ [DIN 01953653]
Suryoday_Insider_Trading_Policy_FY_22-23_1.0.pdf.
Date: August 10, 2023
102
Annual
Report 2022-23
COMPLIANCE WITH CODE OF CONDUCT AND ETHICS

I confirm that all the Directors and Members of the Senior Management have affirmed compliance with the Code of Business
Conduct and Ethics for the Board of Directors and Senior Management of Suryoday Small Finance Bank Limited.
For Suryoday Small Finance Bank Limited
Baskar Babu Ramachandran

(DIN:02303132)
Place: Navi Mumbai

Date: May 15, 2023
Corporate Overview
Statutory Reports
103
CEO & CFO Certification

To,
The Board of Directors
Dear Sir/Madam,
COMPLIANCE CERTIFICATE FOR THE QUARTER (Q4) AND FINANCIAL YEAR ENDED MARCH 31, 2023
[Pursuant to Regulation 17(8) read with Part B of Schedule II of Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements), Regulations, 2015]
A. We have reviewed financial statements and the cash flow statement for the year and that to the best of Our
knowledge and belief:
(1) these statements do not contain any materially untrue statement or omit any material fact or contain any
statements that might be misleading;
(2) these statements together present a true and fair view of the Bank’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
B. To the best of our knowledge and belief, no transactions entered into by the Bank’s during the year which are fraudulent,
illegal or violative of the Bank’s Code of Conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of internal control systems of the Bank pertaining to financial reporting and we have
disclosed to the Auditors and Audit Committee, deficiencies in the design or operation of such internal controls, if any,
of which we are aware and the steps we have taken or proposed to take to rectify these deficiencies.
D. We have indicated, to the Auditors and the Audit Committee:
(1) significant changes in internal control over financial reporting during the year;
(2) significant changes in accounting policies during the year and that the same have been disclosed in the notes to
the financial statements; and
(3) instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having significant role in the Bank’s internal control system over financial reporting.
Baska Babu Ramachandran Kanishka Chaudhary

Place: Navi Mumbai Managing Director & CEO Chief Financial Officer
Date: May 15, 2023 (DIN:02303132)
104
Annual
Report 2022-23
CERTIFICATE FROM PRACTICING COMPANY SECRETARY ON COMPLIANCE WITH THE CORPORATE

GOVERNANCE REQUIREMENTS UNDER SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)
REGULATIONS, 2015
To
The Members of –
I have examined the compliance of conditions of corporate governance by Suryoday Small Finance Bank Limited
(‘the Bank’) for the year ended March 31, 2023, as prescribed in regulations 17 to 27, clauses (b) to (i) of sub-regulation
(2) of regulation 46 and Para C, D and E of Schedule V to Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (‘LODR’) as amended from time to time pursuant to the Listing Agreement of
the Bank with the National Stock exchange Limited and the BSE Limited.
I state that the compliance of conditions of Corporate Governance is the responsibility of the management, and my examination
was limited to procedures and implementation thereof adopted by the Bank for ensuring the compliance of the conditions of
the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Bank.
Corporate Overview
In my opinion and to the best of my information and according to the explanations given to me and the representation
provided, I certify that the Bank has complied with the conditions of Corporate Governance as stipulated in the LODR.
I further state that such compliance is neither an assertion as to the future viability of the Bank nor the efficiency or
effectiveness with which the management has conducted the affairs of the Bank.
This certificate is addressed and provided to the members of the Bank solely for the purpose to enable the Bank to comply
Statutory Reports
with the requirement of the LODR, and it should not be used by any other person or for any other purpose. Accordingly, I do
not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is
shown or into whose hands it may come without my prior consent in writing.
FCS 2690 / COP 2190
Place: Mumbai Peer Review Certificate No.: 1509/2021
Date: August 10, 2023 UDIN: F002690E000767014
105
Business Responsibility and Sustainability Reporting

SECTION A- GENERAL DISCLOSURES
I. Details of the listed entity

1. Corporate Identity Number (CIN) of the listed entity - L65923MH2008PLC261472
2. Name of the listed entity - SURYODAY SMALL FINANCE BANK LIMITED
3. Year of incorporation - 2008
4. Registered office address - Unit No. 1101, Sharda Terraces, Plot No.65, Sector 11, CBD Belapur, Navi Mumbai 400614
5. Corporate address - Unit No. 1101, Sharda Terraces, Plot No.65, Sector 11, CBD Belapur, Navi Mumbai 400614
6. E-mail - inv.relations@suryodaybank.com
7. Telephone - 022-41856700, 022-40435800
8. Website - https://www.suryodaybank.com/
9. Financial year for which reporting is being done - FY2022-23
10. Name of the Stock Exchange(s) where shares are listed - National Stock Exchange of India Limited, BSE Limited
11. Paid-up Capital – 1,06,15,87,490
12. Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on
the BRSR report.
Mr. Himadri Das - Investor Relations
inv.relations@suryodaybank.com
Land line number: 022-41856700, 022-40435800
13. Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on
a consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements,
taken together). - Standalone Basis
II. Products/services
14. Details of business activities (accounting for 90% of the turnover):
S. Description of Main Activity Description of % of Turnover
No. Business Activity of the entity
1 The Bank offers a range of deposit and loan products, to suit varying Financial service 100%
customer needs. activities, other
than Insurance
These include Savings Accounts, Current Accounts, Fixed/Recurring
Deposits, Microfinance Loans for Financial Inclusion, Affordable Housing
Loans, Commercial Vehicle Loans, Etc.
15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
S. Product/Service NIC Code % of total Turnover
No. contributed
1 India’s National Industrial Classification 2008(NIC 2008): Section K – As per Code: 100%
Financial and Insurance Activities Division 64 – Financial service activi- 64191
ties, except Insurance and pension funding Inclusive Finance Loans, Com-
mercial Vehicle Finance Loans, Affordable Home Loans, Secured Business
Loans. Demand Deposits, Time Deposits
106
Annual
Report 2022-23
III. Operations
16. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of Plants Number of Offices Total
National 0 575 575
International 0 0 0
Remarks: 575 branches in 13 states and UTs, of which 158 branches are rural locations and dedicated to rural outreach,
engagement and upliftment.
17. Markets served by the entity:

a. Number of locations
Locations Number
National (No. of States) 13
International (No. of Countries) 0
Corporate Overview
b. What is the contribution of exports as a percentage of the total turnover of the entity?
Nil, As per the nature of business and services, exports as a activity is not applicable.
c. A brief on types of customers

The Bank’s customer base is primarily comprised of the microfinance segment and also includes customers
engaged in sectors such as MSME/SME, Agriculture and Allied Activities, Etc.
Statutory Reports
IV. Employees
18. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):
No. Particulars Total (A) Male Female
No (B) % (B/A) No (C) % (C/A)
Employees
1 Permanent (D) 6,025 5,536 91.88% 489 8.12%
2 Other than Permanent (E) 1,924 1,682 87.42% 242 12.58%
3 Total employees (D + E) 7,949 7,218 90.80% 731 9.20%
Workers
1 Permanent (F) 0 0 0.0% 0 0.0%
2 Other than Permanent (G) 0 0 0.0% 0 0.0%
3 Total Workers (F + G) 0 0 0.0% 0 0.0%
b. Differently abled Employees and workers:

No. Particulars Total (A) Male Female
No (B) % (B/A) No (C) % (C/A)
Differently Abled Employees
1 Permanent (D) 0 0 0.0% 0 0.0%
2 Other than Permanent (E) 0 0 0.0% 0 0.0%
3 Total differently abled employees (D + E) 0 0 0.0% 0 0.0%
Differently Abled Workers
1 Permanent (F) 0 0 0.0% 0 0.0%
2 Other than Permanent (G) 0 0 0.0% 0 0.0%
3 Total Workers (F + G) 0 0 0.0% 0 0.0%
107
19. Participation/Inclusion/Representation of women

Total (A) No. and percentage of Females
No (B) % (B/A)
Board of Directors 8 1 12.50%
Key Management Personnel 3 0 0.00%
20. Turnover rate for permanent employees and workers. (Disclose trends for the past 3 years)
No. Particulars (Turnover rate (Turnover rate (Turnover rate in the year
in current FY) in previous FY) prior to the previous FY)
Male Female Total Male Female Total Male Female Total
Permanent Employees 34.87 3.98 38.85 38.74 2.86 41.64 41.06 4.19 45.25
Permanent Workers 0 0 0 0 0 0 0 0 0
V. Holding, Subsidiary and Associate Companies (including joint ventures)

21. (a) Names of holding / subsidiary / associate companies / joint ventures.
S. Name of the Indicate whether % of shares held Does the entity indicated at
No. holding/subsidiary/ holding/Subsidiary/ by listed entity column A, participate in the
associate companies/ Associate/Joint Venture Business Responsibility initiatives
joint ventures (A) of the listed entity? (Yes/No)
1 NA NA NA NA
VI. CSR Details

22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) - Yes
(ii) Turnover (in Rs.) - 12,81,10,45,000
(iii) Net worth (in Rs.)- 14,78,56,88,000
VII Transparency and Disclosures Compliances

23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct:
Stakeholder Grievance Redressal FY 2022-23 FY 2021-22
group from Mechanism in Place Number of Number of Remarks Number of Number of Remarks
whom complaint is (Yes/No) (If Yes, then complaints complaints pending complaints complaints pending
received provide web-link for filed during resolution at filed during resolution at
grievance redress policy) the year close of the year the year close of the year
Communities
Investors
(other than
shareholders)
Shareholders
Employees and
workers
Customers Yes, https:// 13,545 630 6,596 91
www.suryodaybank.com/
assets/pdf/policies/
Suryoday_Policy_on_
Customer_Service_
FY21-22_2.0.pdf
Value Chain partners
Other (please specify)
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24. 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.
S. Material issue Indicate Rationale for identifying the In case of risk, approach to Financial implications
No. identified whether risk / opportunity adapt or mitigate of the risk or
risk or opportunity
opportunity (Indicate positive or
(R/O) negative implications)
1 Compliance with Opportunity Critical aspect of both Banking Positive
Regulatory oversight Industry and as Corporate enterprise,
under The RBI Act 1949, and full compliance entails good
The Companies Act 2013, reputation, commensurate business
The SEBI Act , specifically opportunity, investor support
with respect to listing of
shares on BSE and NSE
Corporate Overview
2 Compliance with Risk Non-compliance has financial, The Bank conducts frequent Negative
Regulatory oversight reputational and pecuniary risks reviews of the products and
under The RBI Act 1949, such as penalties and regulatory processes through various
The Companies Act 2013, strictures which can curb Board committees set under the Risk
The SEBI Act , specifically independence and Management of Management Committee of the
with respect to listing of Business opportunities Board to ensure compliance under
shares on BSE and NSE various regulations.
3 Financial Inclusion and Opportunity The genesis of the Bank as Positive
inclusive Banking micro-finance lending institution has
meant that it has financial inclusion
Statutory Reports
in its DNA. The Bank plays a crucial
role in rural, semi-urban areas, as
also the target segment which is
unbanked, financially non-literate,
economically weaker section.
4 Financial Inclusion and Risk a. Unsecured lending a. Suitable pricing, Robust Credit Negative
inclusive Banking Underwriting, Strong In-house
b. loan repayments
Collection Team and Coverage
collected through cash
under Credit Guarantee
b. insurance , Audit Check,
Moving towards Standing
Instruction Clearance
5 Transparency Opportunity Reputation Compliance Stakeholder Positive
& Disclosure involvement – as investor for
economic benefits, As customer
– for asset segment ( viz fairness
and customer orientation for
deposit segment)
6 Transparency Risk Limited to what is disclosed and/ All the policies are published Negative
& Disclosure or not disclosed on the Bank’s website.
Complete disclosure about
product details to the customers
at the time of disbursement.
Bank also conducts periodic
customer interaction and customer
awareness programme.
7 Corporate Opportunity Basic and fundamental concept of Positive
Governance & Ethics Banking and ESG principles revolve
around Corporate Governance and
Ethics. The positive affects span
across all stakeholders and has
business implications
109
risk or opportunity
8 Corporate Risk Wrong perception, misconception The Bank follows best in class Negative
Governance & Ethics and/or misinformation regarding governance practices.
the said aspect can have negative
implications for business and
management independence.
9 Economic Performance Opportunity Economic performance leads to Positive
and Financial Capital enhancement in financial capital
and vice versa. Both are crucial for
business performance and crucial
for nature of business / sector the
Bank is functioning in.
10 Economic Performance Risk Failure in one can constrain the The Bank maintains adequate Negative
and Financial Capital other and vice versa liquidity and capital buffer above the
regulator prescribed limits.
11 Data Security Opportunity Appropriate and adequate safety Positive
systems create trust and confidence
in the Bank Operations and its
Management and generates
customer satisfaction
12 Data Security Risk Failure in any aspect can lead to External Controls: Antivirus, Negative
regulatory censure and customer Data Classification, Encryption,
dissatisfaction Application Control, Proxy, TACACS
– Radius, NSX – Zero Trust, Decoy
Internal Controls: Penetration Test,
Dark-Web Monitor, Anti-Phishing,
Brand Monitor, Malware Monitor,
Rouge App Monitor, DDoS Service,
Firewall, Intrusion Prevention
IT Security Risk Governance, IT
Policies / Processes Check, IT
Security Risk Reporting, IT Audits
13 Customer Privacy Risk Failure in any aspect can lead to Masking of KYC documents, OTP Negative
regulatory censure and customer enabled transactions, M-PIN enabled
dissatisfaction mobile login, Timely password
change for digital banking
14 Customer Opportunity Appropriate customer orientation Positive
Satisfaction in products, policies, services,
and communication; results in
commensurate satisfaction.
15 Customer Risk Failure in any aspect can lead to The Bank has put in place all Negative
Satisfaction loss of business opportunities and the regulatory grievance redress
business traction. mechanism and also proactively
reaches out to customers through
various mediums.
16 Risk Management Opportunity As a financial institution the Risk Positive
Management framework is critical
in every respect to every stakeholder
identified – internal and external.
The Risk Management function
reports to the MD&CEO and is
independent of Operations and
Business. The Bank is embarking
on a detailed program to enhance
its Risk Management Systems to
include assessment on Environment
Risk – transition and mitigation.
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risk or opportunity
17 Lending Practices Opportunity The Bank ensures that its lending Positive
practices and sales efforts are
underlined with good and fair
conduct- mainly ensuring non-mis-
selling of products, transparency
in terms and conditions, pro-active
measures to ensure the customer
interest is addressed upfront.
The published marketing material
and literature & statements are
cogent, clear and non-ambiguous.
The Bank is in the process of
reviewing its policies and relevant
Corporate Overview
frameworks are meant to abide by.
18 Consumption Opportunity As a reducing long-term operations Positive
Emissions Reduction cost and also positive perception
of stakeholders such as investors.
The Bank proposes during FY24
to systematically track emissions
across the Scope 1 and Scope 2 and
set targets and set the measures
to achieve the targets. From FY25,
it will systematically track Scope 3
Statutory Reports
emissions, and set combined targets
and measures to achieve the targets
19 Consumption Risk Failure to achieve and work towards The Bank plans to form an ESG Negative
Emissions Reduction climate amelioration, can create Committee in the current fiscal to
negative perception of Bank address this aspect.
amongst its stakeholders.
20 Employee Opportunity To attract and retain high quality Positive
Training & Development talent across departments and
regions of the Bank etc.
21 Employee Risk Inadequate training and The Bank has been regularly Negative
Training & Development development can deter business conducting digital and physical
development both in mid and long training for all employees
term, and result in employee attrition both on internal products and
processes, regulatory and
business related updates, including
behavioural trainings.
22 Community Engagement Opportunity The nature of business and Positive
customer segment the Bank caters
to provides an opportunity for
creating positive interface and has
potential for business enhancement
111
SECTION B- MANAGEMENT AND PROCESS DISCLOSURES
Policy and management processes

Disclosure Questions P1 P2 P3
1. a. Whether your entity’s policy/policies Yes Yes Yes
cover each principle and its core
elements of the NGRBCs. (Yes/No)
b. Has the policy been approved by the No No No
Board? (Yes/No)
c. Web Link of the Policies, if available 1. https://www.suryodaybank.com/ 1. https://www.suryodaybank. 1. https://www.suryodaybank.
Corporate-Governance-Policies com/assets/pdf/policies/ com/assets/pdf/policies/
2. https://www.suryodaybank.com/assets/pdf/policies/ Social-and-Environmental-Sustai Compensation-Policy.pdf
Suryoday_Code_of_conduct_applicable_to_Directors_&_ nability-Policy.pdf, 2. https://www.suryodaybank.
Sr_Mgmt_of_the_Bank_FY22-23_1.0.pdf 2. https://www.suryodaybank. com/assets/pdf/policies/
3. https://www.suryodaybank.com/assets/pdf/ com/assets/pdf/policies/ sexual-harassment-policy.pdf
policies/Suryoday_Corporate_Governance_Policy_ Social-Media-Policy-FY-21-22.pdf
FY22-23_1.0.pdf, https://www.suryodaybank.com/ 3. Social and
assets/pdf/policies/Suryoday_Policyon_Familiarization_ Environmental
Programs_for_Independent_Director_FY22-23_1.0.pdf Sustainability Policy: https://
4. https://www.suryodaybank.com/assets/pdf/policies/ www.suryodaybank.com/
Suryoday_Whistle_Blower_Policy_FY22_23_1.0.pdf assets/pdf/policies/
Corporate-Governance-
5. https://www.suryodaybank.com/assets/pdf/policies/ Policies- ESG Policy.pdf
Independent-Directors-T&C.pdf
6. https://www.suryodaybank.com/assets/pdf/policies/
Familiarisation-Programs-for-Independent-Directors.pdf
Fair-Practices-Code.pdf,
Suryoday_Policy_on_Appointment_of_Directors_and_
Senior_Managerial_Personnel_FY22-23_1.0.pdf
Suryoday_Policy_for_Evaluation_of_Performance_of_
Board_FY22_23_1.0.pdf,
10. https://www.suryodaybank.com/assets/pdf/
policies/Suryoday_Policy_on_Succession_Planning_
FY22-23_1.0.pdf,
policies/Suryoday_Policy-to-Promote-Diversity-of-Board-
of-Directors_FY21-22_2.0.pdf
12. https://www.suryodaybank.com/assets/
pdf/policies/Suryoday_Insider_Trading_Policy_
FY_22-23_1.0.pdf
policies/Suryoday_Related_Party_Transaction_Policy_
FY_22_23_2.0.pdf
2. Whether the entity has translated the No No No
policy into procedures. (Yes / No)
3. Do the enlisted policies extend to your No No No
value chain partners? (Yes/No)
4. Name of the national and international N/A N/A N/A
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.
5. Specific commitments, goals and No No No
targets set by the entity with defined
timelines, if any.
6. Performance of the entity against No No No
the specific commitments, goals and
targets along-with reasons in case the
same are not met.
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1. a. Whether your entity’s policy/ Yes Yes Yes
policies cover each principle
and its core elements of the
NGRBCs. (Yes/No)
b. Has the policy been approved by No No No
the Board? (Yes/No)
c. Web Link of the Policies, if available 1. https://www.suryodaybank. 1. https://www.suryodaybank. 1. https://www.suryodaybank.com/
com/assets/pdf/policies/ com/assets/pdf/policies/ assets/pdf/policies/Social-and-Env
Citizens-Charter.pdf sexual-harassment- policy.pdf ironmental-Sustainability-Policy.pdf
2. https://www.suryodaybank.com/ 2. https://www.suryodaybank.
assets/pdf/policies/Policy-on- com/assets/pdf/policies/
Appointment-of-Statutory-Auditors.pdf, Customer-Compensation- Policy.pdf
3. https://www.suryodaybank.com/
assets/pdf/policies/Suryoday_
Dividend_Distribution_Policy_
FY_22_23_1.0.pdf
4. https://www.suryodaybank.com/
Corporate Overview
assets/pdf/policies/Social-Media-
Policy-FY-21-22.pdf
3. Do the enlisted policies extend to your No No No
value chain partners? (Yes/No)
4. Name of the national and international N/A N/A N/A
codes/certifications/labels/ standards
(e.g. Forest Stewardship Council,
Fairtrade, Rainforest Alliance, Trustea)
Statutory Reports
standards (e.g. SA 8000, OHSAS,
ISO, BIS) adopted by your entity and
mapped to each principle.
timelines, if any.
targets along-with reasons in case the
same are not met.
113
1. a. Whether your entity’s policy/ - Yes Yes
policies cover each principle
and its core elements of the
NGRBCs. (Yes/No)
b. Has the policy been approved by No No No
the Board? (Yes/No)
c. Web Link of the - 1. https://www.suryodaybank.com/assets/ 1. https://www.suryodaybank.com/assets/pdf/
Policies, if available pdf/policies/Corporate-Governance- policies/Suryoday_Policy_on_Customer_Service_
Policies-CSR-Policy.pdf, FY21-22_2.0.pdf
2. https://www.suryodaybank.com/ 2. https://www.suryodaybank.com/
assets/pdf/policies/SSFB-Policy- assets/pdf/policies/Code-of-Conduct-for-
for-Resolution-of-Covid-19-related- Collection-Agents.pdf
stress-of-Micro-Small-and-Medium- 3. https://www.suryodaybank.com/
Enterprises-(MSMEs)-FY-21-22.pdf assets/pdf/policies/Code-of-Conduct-for-
3. https://www.suryodaybank. Direct-selling-Agents.pdf
com/assets/pdf/policies/ 4. https://www.suryodaybank.com/
SSFB-Policy-for-Resolution- assets/pdf/policies/Model-Operational-
Framework-2.0_Resolution-of-Covid-19- Procedure-for-Settlement-of-Claims-for-
related-stress-of-Individual-and-Small- Deceased-Depositor_FY20-21.pdf
Business-FY-21-22.pdf
4. https://www.suryodaybank. policies/Grievance-Redressal-Policy.pdf,
com/assets/pdf/policies/
CodeOfBankMSE2015.pdf 6. https://www.suryodaybank.com/assets/pdf/
policies/Suryoday_Comprehensive_Deposit
5. https:// Policy_FY23-24_1.0.pdf
www.suryodaybank.com/assets/
pdf/policies/Corporate-Governance- 7. https://www.suryodaybank.com/assets/
Policies-CSR-Policy.pdf pdf/policies/CBCC2018.pdf, https://
www.suryodaybank.com/assets/pdf/policies/
6. https://www.suryodaybank.com/ Customer-Protection-Policy.pdf,
assets/pdf/policies/SSFB-Policy-for-
Resolution-of-Covid-19-related-stress- 8. https://www.suryodaybank.com/assets/pdf/
of-Micro-Small-and-Medium- Enterprises- policies/Collection-and-Recovery-Policy-(1).pdf,
(MSMEs)-FY-21-22.pdf https://www.suryodaybank.com/assets/pdf/
policies/Customer-Compensation-Policy.pdf,
7. https://www.suryodaybank.
com/assets/pdf/policies/ 9. https://www.suryodaybank.com/assets/pdf/
SSFB-Policy-forResolution- policies/Suryoday-Cheque-Collection-Policy.pdf,
Framework-2.0_Resolution-of-Covid-19- 10. https://www.suryodaybank.com/assets/pdf/
related-stress-of-Individual-and-Small- policies/Social-Media-Policy-FY-21-22.pdf,
Business-FY-21-22.pdf 11. https://www.suryodaybank.com/assets/pdf/
policies/Grievance-Redressal- Policy.pdf
policies/Corporate-Governance- Policies-Social
Media Policy.pdf
3. Do the enlisted policies extend to - No No
your value chain partners? (Yes/No)
4. Name of the national and N/A N/A N/A
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.
timelines, if any.
targets along-with reasons in case
the same are not met.
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Governance, leadership and oversight
7. Statement by director responsible ESG with for a clearer, transparent and deeper connect.
for the business responsibility
The more we delve on ESG, the more it becomes clear that this path is not a
report, highlighting ESG
question of choice, but an integral part of our existence. However small or
related challenges, targets and
miniscule the immediate results might seem, as a responsible entity and an
achievements (listed entity has
active participant in the financial ecosystem, we are embarking on this journey.
flexibility regarding the placement
We are committed to taking steps that will help address the issues faced (as it
of this disclosure)
relates to climate change, for example) and to making significant progress for a
better tomorrow.
We have taken certain initial steps such as digitization of processes in an effort
to eliminate the use of paper, encouraging the use of sustainable glass bottles
instead of plastic bottles, etc.
We are in the process of establishing a formal structure, charter and policies to
Corporate Overview
integrate ESG aspects into our mainstream activities not just as compliances
accomplished, but to ingrain the principles in the way we conduct our operations.
8. Details of the highest authority 1. DIN : 02303132

responsible for implementation 2. Name : Mr. Baskar Babu Ramachandran
and oversight of the Business
3. Designation : Managing Director & Chief Executive Officer
Responsibility policy (ies).
(b) Details of the BR head:
1. DIN (if applicable) : 02303132
Statutory Reports
2. Name : Mr. Baskar Babu Ramachandran
3. Designation : Managing Director & Chief Executive Officer
4. Telephone number : 022-40438000
5. e-mail id : ceo.office@suryodaybank.com
9. Does the entity have a specified No, the Bank currently does not have a separate committee.
Committee of the Board/ Director
responsible for decision making on
sustainability related issues? (Yes /
No). If yes, provide details.
10. Details of Review of NGRBCs by the Company: Indicate whether review was undertaken by Director / Committee of the
Board/ Any other Committee
Indicate whether review was undertaken by Director/Committee of the Board/Any
Subject for other Committee
Review
P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed
above policies and for FY24 for FY24 for FY24 for FY24 for FY24 for FY24 for FY24 for FY24 for FY24
follow up action
Compliance with Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed
statutory requirements for FY24 for FY24 for FY24 for FY24 for FY24 for FY24 for FY24 for FY24 for FY24
of relevance to the
principles, and,
rectification of any
non-compliances
115
Subject for Review Frequency (Annually/Half yearly/Quarterly/Any other – please specify)

P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed
above policies and Annually Annually Annually Annually Annually Annually Annually Annually Annually
follow up action
Compliance with Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed
statutory requirements Annually Annually Annually Annually Annually Annually Annually Annually Annually
of relevance to the
principles, and,
rectification of any
non-compliances
11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency?
(Yes/No). If yes, provide name of the agency.
Sr. no P1 P2 P3 P4 P5 P6 P7 P8 P9
1 No No No No No No No No No
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 No No No No No No Yes No No
not consider the
Principles material to
its business (Yes/No)
The entity is not at a Yes Yes Yes Yes Yes Yes Yes Yes Yes
stage where it is in a
position to formulate
and implement the
policies on specified
principles (Yes/No)
The entity does not No No No No No No No No No
have the financial or/
human and technical
resources available
for the task (Yes/No)
It is planned to be Under Under Under Under Under Under NA Under Under
done in the next Impleme- Impleme- Impleme- Impleme- Impleme- Impleme- Impleme- Impleme-
financial year (Yes/No) ntation ntation ntation ntation ntation ntation ntation ntation
Any other reason NA 1. Nature of Under Detailed Currently Commenced NA NA NA
(please specify) business is impleme- Policy being underway on in FY23
different ntation in formulated and accessibility underway on
various implemented accessibility
stages in FY24
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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.
Essential Indicators
1. Percentage covered by training and awareness programmes on any of the Principles during the financial year:
Segment Total number Topics/principles covered under the Percentage of persons
of training training and its impact in respective category
and awareness covered by the
programs held awareness programmes
Board of 3 The Board’s Legal Environment: Duties, Responsibilities 33%
directors & Liabilities of a Director; Independent Directors:
Improving Corporate credibility and Governance
Corporate Overview
standards; Board Committees: Enhancing
Effectiveness and Accountability; Internal Audit:
A critical player in organizational governance;
Microfinance business – Board’s role and asking the
right questions
Key Managerial 2 Compliance, HR Policies, Prevention of Sexual 33%
personnel Harassment, Data Privacy Protection
Employees other 270 Compliance, HR Policies, Prevention of Sexual 70%
Statutory Reports
than BoD and Harassment, Customer Service Excellence,
KMPs Consumer Protection, Responsible Banking, Data
Privacy Protection
Workers N/A N/A N/A
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
Category NGRBC Name of the regulatory/ Amount Brief of Has an appeal
Principle enforcement agencies/ (In INR) the Case been preferred?
judicial institutions (Yes/No)
Penalty/ Fine Nil Nil Nil Nil Nil
Settlement Nil Nil Nil Nil Nil
Compounding fee Nil Nil Nil Nil Nil
Non-Monetary
Category NGRBC Name of the regulatory/ Brief of Has an appeal
Principle enforcement agencies/ the Case been preferred?
judicial institutions (Yes/No)
Imprisonment Nil Nil Nil Nil
Punishment Nil Nil Nil Nil
117
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.
S. No. Case Details Name of the regulatory/ enforcement agencies/ judicial institutions
1 NA NA
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.-
The Bank has put in place a Code of Conduct which covers all its employees. The Code articulates the ethical principles
and acceptable behavior that the employees are expected to demonstrate throughout their tenure as employees of
the organization. It also guides all employees to uphold the values of the Bank. The Code covers aspects related but
not limited to ethics, accountability, conflict of interest, bribery and corruption. The Bank has also adopted Code of
Conduct for Directors & Senior Management to provide a framework to the Board members and Senior Management in
ensuring adoption of highest ethical standards in managing the affairs of the Bank. The Bank’s commitment to ethics
and accountability is emphasised upon in interactions with all its stakeholders. Code of Conduct for Directors and
Senior Management of the Bank: https://www.suryodaybank.com/assets/pdf/policies/Code-of-Conduct- for-Directors-
and-Senior-Management-of-the-Bank.pdf Whistle Blowers Policy: https://www.suryodaybank.com/assets/pdf/policies/
Corporate-Governance- Policies-Whistle-Blower-Policy.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:
Category (Current Financial Year) (Previous Financial Year)
Directors 0 0
KMPs 0 0
Employees 0 0
Workers 0 0
6. Details of complaints with regard to conflict of interest:

Category Number Remarks Number Remarks
(CY) (CY) (PY) (PY)
Number of complaints received in relation to issues of 0 Nil 0 Nil
Conflict of Interest of the Directors
Number of complaints received in relation to issues of 0 Nil 0 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.- NA
Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:
S. Total number of awareness Topics / principles %age of value chain partners covered (by value
No. programmes held covered under the training of business done with such partners) under the
awareness programmes
1 0 0 0
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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.-
The Board has formulated and adopted Code of Conduct and Ethics for the Board of Directors and Senior Management.
The same has been hosted on the website of the Bank at https://www.suryodaybank. com/assets/pdf/policies/Code-of-
Conduct-forDirectors-and-Senior-Management-of-the-Bank.pdf. The Declaration signed by the MD & CEO of the Bank
stating that the members of Board of Directors and Senior Management Personnel have affirmed compliance with the
Code of Conduct of Board of Directors and Senior Management is annexed and forms part of this Report.
PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe
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.
Category Current Previous Details of improvements in environmental and social impacts

Financial Year Financial Year
Corporate Overview
R&D 0 0 The Bank proposes to encourage environment mitigation measures, by
resorting to renewable energy and water conservation activities
Capex 0 0 The Bank proposes to introduce products which would contribute to
sustainability and environment.
Remarks: Not Applicable in Financial Services sector
2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No): N/A
Statutory Reports
b. If yes, what percentage of inputs were sourced sustainably?: N/A
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.- (a) Plastics (including
packaging) : NA (b) E-waste: NA (c) Hazardous waste: NA (d) other waste: NA
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: NA
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?
S. NIC Name of % of total Boundary for which the Whether conducted by Results communicated in
No. Code Product/ Turnover Life Cycle Perspective / independent external public domain (Yes/No) If
Service contributed Assessment was conducted agency (Yes/No) yes, provide the web-link.
1 NA NA NA NA NA NA
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.
S. No. Name of Product / Service Description of the risk / concern Action Taken
1 NA NA NA
119
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).
Indicate input material Recycled or re-used input material to total material
FY2022-23 FY2021-22
Nil
4. Of the products and packaging reclaimed at end of life of products, amount (in metric tons) reused, recycled, and safely
disposed, as per the following format:
Category FY2022-23 FY2021-22
Re-Used Recycled Safely Disposed Re-Used Recycled Safely Disposed
Plastics (including packaging) NA NA NA NA NA NA
E-waste NA NA NA NA NA NA
Hazardous waste NA NA NA NA NA NA
Other waste NA NA NA NA NA NA
Remarks: Safely Disposed E-waste of 650 kgs in the financial year 2020-21 The Bank follows a policy to periodically
dispose of E-waste namely office equipment etc., which is carried out by retaining services of registered and authorised
e-waste disposal service providers.
5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
S. No. Indicate product category Reclaimed products and their packaging materials as % of total products
sold in respective category
1 N/A N/A
PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those in their
value chains
1. a. Details of measures for the well-being of employees (Permanent Employees).
Category % of employees covered by
Total Health Accident Maternity Paternity Day Care
(A) insurance insurance benefits benefits facilities
Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent Employees
Male 5,536 5,536 100.00% 5,536 100.00% 0 0.00% 154 2.78% 0 0.00%
Female 489 489 100.00% 489 100.00% 12 2.45% 0 0.00% 0 0.00%
Total 6,025 6,025 100.00% 6,025 100.00% 12 0.20% 154 2.56% 0 0.00%
Other than permanent Employees
Male 1,682 113 6.72% 113 6.72% 0 0.00% 0 0.00% 0 0.00%
Female 242 37 15.29% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total 1,924 150 7.80% 113 5.87% 0 0.00% 0 0.00% 0 0.00%
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b. Details of measures for the well-being of workers. (Permanent Workers).

Category % of employees covered by
Total Health Accident Maternity Paternity Day Care
(A) insurance insurance benefits benefits facilities
Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent Workers
Male
Female NA
Total
Other than permanent Workers
Male
Female NA
Corporate Overview
Total
2. Details of retirement benefits, for Current FY and Previous Financial Year.

Benefits No. of employees No. of workers Deducted and No. of employees No. of workers Deducted and
covered as covered as deposited with covered as covered as deposited with
a % of total a % of total the authority a % of total a % of total the authority
employees workers (CY) (Y/N/N.A.) employees workers (Y/N/N.A.)
(CY) (CY) (PY) (PY) (PY)
Statutory Reports
PF 100 NA Y 100 NA Y
Gratuity 100 NA Y 100 NA Y
ESI NA NA NA NA NA NA
Others - NA NA NA NA NA NA
please specify
3. 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.-
Yes. The Bank has made conscious efforts in this direction at its Corporate Office, and intends to take similar measures
across its branches in the future.
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.-
Yes, Equal Opportunity is covered under the Bank’s Employee Policy.
5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Gender Permanent employees Permanent workers
Return to work rate Retention rate Return to work rate Retention rate
Male 75% 87% NA NA
Female 67% 80% NA NA
Total 71% 84% NA NA
121
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker?
If yes, give details of the mechanism in brief.
Category Yes/No (If Yes, then give details of the mechanism in brief)
Permanent Workers Not Applicable
Other than Permanent Workers Not Applicable
Permanent Employees Yes
Other than Permanent Employees Yes
7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
FY2022-23 FY2021-22
Total No. of employees/ % Total No. of employees/ %
employees/ workers in (B/A) employees/ workers in (D/C)
Category workers in respective workers in respective
respective category, who respective category, who
category (A) are part of category (C) are part of
association(s) association(s)
or Union(B) or Union(D)
Total Permanent Employees 6,025 0 0.00% 5,223 0 0.00%
- Male 5,536 0 0.00% 4,784 0 0.00%
- Female 489 0 0.00% 439 0 0.00%
Total Permanent Workers 0 0 0.0% 0 0 0.0%
- Male 0 0 0.0% 0 0 0.0%
- Female 0 0 0 0 0 0.0%
8. Details of training given to employees and workers:

Total (A) On Health and On Skill Total (D) On Health and On Skill
safety measures upgradation safety measures upgradation
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Male 7,218 3,654 50.62% 4,511 62.50% 5,530 3,388 61.27% 3,933 71.12%
Female 731 405 55.40% 341 46.65% 610 381 62.46% 290 47.54%
Total 7,949 4,059 51.06% 4,852 61.04% 6,140 3,769 61.38% 4,223 68.78%
Workers
Male 0 0 0.0% 0 0.0% 0 0 0.0% 0 0.0%
Female 0 0 0.0% 0 0.0% 0 0 0.0% 0 0.0%
Total 0 0 0.0% 0 0.0% 0 0 0.0% 0 0.0%
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9. Details of performance and career development reviews of employees and workers

Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)
Employees
Male 7,218 0 0.00% 5,530 0 0.00%
Female 731 0 0.00% 610 0 0.00%
Total 7,949 0 0.00% 6,140 0 0.00%
Workers
Male 0 0 0.0% 0 0 0.0%
Female 0 0 0.0% 0 0 0.0%
Total 0 0 0.0% 0 0 0.0%
10. a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If
Corporate Overview
yes, the coverage such system?
Yes. All branches and offices have CCTV cameras and fire extinguishers. Mock drills are performed periodically.
10. b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by
the entity?
Fire safety hazards are identified at periodic intervals and mock drills are conducted for emergency preparedness.
10. c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such
Statutory Reports
risks. (Y/N)
The Bank continuously monitors potential work related hazards and takes necessary action as may be required.
In respect of any Work-related incidents and potent, are reported to the respective HR and Admin point of
contacts by employees.
10. d. Do the employees/worker of the entity have access to non-occupational medical and healthcare services? (Yes/No)-
Yes.
11. Details of safety related incidents, in the following format:
Safety Incident/Number Category FY2022-23 FY2021-22
Lost Time Injury Frequency Rate (LTIFR) Employees 0 0
(per one million-person hours worked) Workers 0 0
Employees 0 0
Total recordable work-related injuries
Workers 0 0
Employees 0 0
No. of fatalities
Workers 0 0
Employees 0 0
High consequence work-related injury or ill-health (excluding fatalities)
Workers 0 0
12. Describe the measures taken by the entity to ensure a safe and healthy work place. –
• The Bank has enhanced the coverage for critical illnesses in the Group Medical Cover
• Conducted annual health check-ups, blood donation camps, eye and dental checkup camps.
• Organised multiple webinars on health and nutrition
• The Bank has also undertaken several programmes to enhance gender diversity and inclusivity, including creating
awareness about the POSH Act
• CCTV Camera and Fire extinguishers are in place at branches and offices.
123
13. Number of complaints on the following made by employees and workers

Filed Pending Remarks Filed Pending Remarks
during resolution at during resolution at
the year the end of year the year the end of year
Working Conditions 0 0 0 0
Health & Safety NA NA NA NA
14. Assessments for the year:

Category % of your plants and offices that were assessed
(by entity or statutory authorities or third parties)
Health and safety practices 0
Working Conditions 0
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.- As there were no safety-
related incidents, there were no corrective actions that needed to be taken.
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
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the
value chain partners.-
The Bank expects all its value chain partners to ensure statutory compliances in totality. The Bank shall now look at
introducing this as a part of the contract with such partners.
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 are rehabilitated and placed in suitable employment or
whose family members have been placed in suitable employment:
Total no. of affected No. of employees/workers that are
employees/ workers rehabilitated and placed in suitable
employment or whose family members
have been placed in suitable employment
FY2022-23 FY2021-22 FY2022-23 FY2021-22
Employees 0 0 0 0
Workers NA NA NA NA
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)-
No
5. Details on assessment of value chain partners:

Category % of value chain partners
(by value of business done with such partners) that were assessed
Health and safety practices 0
Working Conditions 0
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.- NA
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PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
1. Describe the processes for identifying key stakeholder groups of the entity.-
The Bank has its roots in micro-finance and hence has various outreach and enablement linkages which provide insight
into the grass root level stakeholders. As regards other stakeholders, the Bank has during FY23 defined relevant key
stakeholders according to its business profile and corporate profile. The ESG Committee, which is proposed to be set up,
would be tasked with the mandate to further develop this program as may be required.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
S. Stakeholder Whether identified Channels of communication Frequency of Purpose and scope of
No. Group as Vulnerable & (Email, SMS, Newspaper, engagement engagement including
Marginalized Group Pamphlets, Advertisement, (Annually/ Half yearly/ key topics and
(Yes/No) Community Meetings, Notice Quarterly / others – concerns raised during
Board, Website), Other please specify) such engagement
Corporate Overview
1 Communities The Bank identifies its Across various modes Frequently Awareness building and
business model with grass through outreach inclusive financing
root level enterprises
promoted by women,
underprivileged and socially
backward areas, persons
with disabilities, etc.
2 Investors No Interactive and well defined Quarterly Quarterly or as required
formats of communication or as required
Statutory Reports
and engagement
3 Employees No Interactive and well defined Frequently Engagement and
formats of communication through outreach outreach
and engagement
4 Customers No Across various modes Frequently Awareness building and
through outreach inclusive financing
5 Value Chain No Propose to Propose to Propose to
Partners commence in FY24 commence in FY24 commence in FY24
6 Other No Propose to Propose to Propose to
commence in FY24 commence in FY24 commence in FY24
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 ESG Committee shall be tasked with the activity and shall commence the process during FY24.
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 inputs received from stakeholders on these topics were
incorporated into policies and activities of the entity.-
NA as of now
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized
stakeholder groups.-
NA as of now
125
PRINCIPLE 5 Businesses should respect and promote human rights

1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the
following format:
Total No. of employees/ % Total No. of employees/ %
(A) workers covered (B) (B/A) (C) workers covered (D) (D/C)
Employees
Permanent 6,025 6,025 100.00% 5,223 5,223 100.00%
Other than permanent 1,924 1,917 99.64% 917 917 100.00%
Total Employees 7,949 7,942 99.91% 6,140 6,140 100%
Workers
Permanent 0 0 0.0% 0 0 0.0%
Other than permanent 0 0 0.0% 0 0 0.0%
Total Workers 0 0 0.0% 0 0 0.0%
2. Details of minimum wages paid to employees, in the following format:

Total Equal to More than Total Equal to More than
(A) Minimum Wage Minimum Wage (D) Minimum Wage Minimum Wage
No. % No. % No. % No. %
(B) (B/A) (C) (C/A) (E) (E/D) (F) (F/D)
Employees
Permanent 6,025 734 12.18% 5,291 87.82% 5,223 628 12.02% 4,595 87.98%
Male 5,536 686 12.39% 4,850 87.61% 4,784 581 12.14% 4,203 87.86%
Female 489 48 9.82% 441 90.18% 439 47 10.71% 392 89.29%
Other than Permanent 1,924 1 1924 150 7.80% 917 3 0.33% 107 11.67%
Male 1,682 1 0.06% 112 6.66% 746 1 0.13% 81 10.86%
Female 242 0 0.00% 38 15.70% 171 2 1.17% 26 15.20%
Workers
Permanent 0 0 0.0% 0 0.0% 0 0 0.0% 0 0.0%
Male 0 0 0.0% 0 0.0% 0 0 0.0% 0 0.0%
Female 0 0 0.0% 0 0.0% 0 0 0.0% 0 0.0%
Other than Permanent 0 0 0.0% 0 0.0% 0 0 0.0% 0 0.0%
Male 0 0 0.0% 0 0.0% 0 0 0.0% 0 0.0%
Female 0 0 0.0% 0 0.0% 0 0 0.0% 0 0.0%
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3. Details of remuneration/salary/wages, in the following format:

Male Female
Number Median remuneration/ salary/ Number Median remuneration/ salary/
wages of respective category wages of respective category
Board of Directors (BoD) 7 Not Applicable as only 1 Not Applicable as only
sitting fees are applicable sitting fees are applicable
Key Managerial Personnel 3 93,22,225 0 0
Employees other 5,533 2,67,000 489 2,80,644
than BoD and KMP
Workers 0 0 0 0
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)-
No. The Bank proposes to institute a committee during FY 24, comprising the CEO and Senior Management representation
Corporate Overview
with adequate gender diversity.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.-
The Bank currently has adequate processes in place as part of the HR Policy.
6. Number of Complaints on the following made by employees and workers:

FY2022-23 FY2021-22
Statutory Reports
Filed Pending resolution Remarks Filed Pending resolution Remarks
during at the end of year during at the end of year
the year the year
Sexual Harassment 1 0 2 1
Discrimination at workplace 0 0 0 0
Child Labour 0 0 0 0
Forced Labour/Involuntary Labour 0 0 0 0
Wages 0 0 0 0
Other human rights related issues 0 0 0 0
7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
The Bank has Code of Conduct Committee which addresses such issues.
8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)-
No. The Bank currently does not have any clauses or obligations related to human rights, in its business agreements.
9. Assessments for the year:

Category % of your plants and offices that were assessed
(by entity or statutory authorities or third parties)
Child labour 0
Forced/involuntary labour 0
Sexual harassment 0
Discrimination at workplace 0
Wages 0
Others – please specify 0
127
10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 9 above.-
N/A. Assessments have not been conducted.
1. Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints.-
N/A
2. Details of the scope and coverage of any Human rights due-diligence conducted.-
N/A
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?
In progress
4. Details on assessment of value chain partners:

Category % of value chain partners
(by value of business done with such partners) that were assessed
Sexual Harassment 0
Discrimination at workplace 0
Child Labour 0
Forced Labour/Involuntary Labour 0
Wages 0
Others – please specify 0
5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 4 above.-
NA
PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
1. Details of total energy consumption (in Joules or multiples) and energy intensity.
Parameter FY2022-23 FY2021-22
Total electricity consumption (A) 7,836.97 Not Available
Total fuel consumption (B) 0 0
Energy consumption through other sources ( C ) 0 0
Total energy consumption (A+B+C) 7,836.97 Not Available
Energy intensity per rupee of turnover (Total energy consumption/ 6.12 GJ / Crore Not Available
turnover in rupees)
Energy intensity (optional) – the relevant metric may be selected by the entity
Remarks: The Bank has started compiling electricity purchase data across all our branches from FY 2022-23, hence
records from FY 2021-22 are not available.
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1. 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 consumers (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.- Not Applicable - No
3. Provide details of the following disclosures related to water, in the following format: Water withdrawal by source (in
kilolitres)
Water withdrawal by source (in kilolitres)
(i) Surface water 0 0
(ii) Groundwater 0 0
(iii) Third party water 1,39,289.28 Not Available
Corporate Overview
(iv) Seawater / desalinated water 0 0
(v) Others 0 0
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 1,39,289.28 0
Total volume of water consumption (in kilolitres) Not Available Not Available
Water intensity per rupee of turnover (Water consumed / turnover) Not Available Not Available
Water intensity (optional) – the relevant metric may be selected by the
entity. KL / of
Statutory Reports
Remarks: The Bank has started compiling water purchase data across all our branches from FY 2022-23, hence records
from FY 2021-22 are not available. For FY 2022-23, the water consumption has been estimated from purchase records
using state-level data sources and accepted standards. Going forward, this process will be done on a quarterly basis and
will include consumption values as well.
name of the external agency- No
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.- N/A
5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
Parameter Please specify unit Current Financial Year Previous Financial Year
NOx 0 0 0
SOx 0 0 0
Particulate matter (PM) 0 0 0
Persistent organic pollutants (POP) 0 0 0
Volatile organic compounds (VOC) 0 0 0
Hazardous air pollutants (HAP) 0 0 0
Others – please specify 0 0 0
Remarks: The nature of the business and activities of the Company, there are no other air emissions apart from GHG on
account of power consumption and commuting of its employees.
129
7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:
Parameter Unit FY 2022-23 FY 2021-22
Total Scope 1 emissions (Break-up of the GHG into CO2, tCO2e Not Applicable Not Applicable
CH4, N2O, HFCs, PFCs, SF6, NF3, if available)
Total Scope 2 emissions (Break-up of the GHG into CO2, tCO2e 1,763.32 Not Available
Total Scope 1 and Scope 2 emissions per tCO2e/ rupee 1.3764 tCO2e/Crore Not Available
rupee of turnover of turnover
Total Scope 1 and Scope 2 emission intensity (optional) – tCO2e / of
the relevant metric may be selected by the entity
Remarks: N/A
7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.- No
8. Provide details related to waste management by the entity, in the following format:
Total Waste generated (in metric tonnes)
Plastic waste (A) 0 0
E-waste(B) 0 0
Bio-medical waste (C) 0 0
Construction and demolition waste (D) 0 0
Battery waste (E) 0 0
Radioactive waste (F) 0 0
Other Hazardous waste.Please specify, if any. (G) 0 0
Other Non-hazardous waste generated (H). Please specify, if any. 0 0
(Break-up by composition i.e. by materials relevant to the sector)
Total (A + B + C + D + E + F + G + H) 0 0
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations
(in metric tonnes)
Category of waste - Plastic

(i) Recycled 0 0
(ii) Re-used 0 0
(iii) Other recovery operations 0 0
Total 0 0
Category of waste - E-Waste

(i) Recycled NA NA
(ii) Re-used NA NA
(iii) Other recovery operations NA NA
Total NA NA
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Category of waste - Bio-medical waste
(i) Recycled NA NA
(ii) Re-used NA NA
Total NA NA
Category of waste - Construction and demolition waste

(i) Recycled NA NA
(ii) Re-used NA NA
Total NA NA
Category of waste - Battery waste
Corporate Overview
(i) Recycled NA NA
(ii) Re-used NA NA
Total NA NA
Category of waste - Radioactive waste

(i) Recycled NA NA
Statutory Reports
(ii) Re-used NA NA
Total NA NA
Category of waste - Other Hazardous waste

(i) Recycled NA NA
(ii) Re-used NA NA
Total NA NA
Category of waste - Other Non-Hazardous waste

(i) Recycled NA NA
(ii) Re-used NA NA
Total NA NA
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste - Plastic

(i) Incineration 0 0
(ii) Landfilling 0 0
(iii) Other disposal operations 0 0
Total 0 0
131

Category of waste - E-Waste
(i) Incineration NA NA
(ii) Landfilling NA NA
(iii) Other disposal operations NA NA
Total NA NA
Category of waste - Bio-medical Waste

Total NA NA
Category of waste - Construction and demolition waste

Total NA NA
Category of waste - Battery

Total NA NA
Category of waste - Radioactive

Total NA NA
Category of waste - Other Hazardous waste. Please specify, if any

Total NA NA
Category of waste - Other Non-hazardous waste generated

Total NA NA
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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.
The bank has adopted digital onboarding of customers for both the deposit and asset franchise thereby minimizing usage
of paper. The Bank has a facility for employees at the Corporate Office to deposit their electronic waste such as batteries
for safe disposal. The Bank has introduced glass water bottles and cups in place of plastic bottles and paper cups.
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:
S. No. Location of Type of Whether the conditions of environmental approval /
operations/offices operations clearance are being complied with? (Y/N) If no,
the reasons thereof and corrective action taken, if any.
Corporate Overview
1 NA NA NA
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
current financial year:
S. Name and brief EIA Notification Date Whether conducted by Results communicated Relevant
No. details of project No. independent external in public domain Web link
agency (Yes / No) (Yes / No)
1 NA NA NA NA NA NA
Statutory Reports
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:
S. Specify the law / regulation Provide Any fines / penalties / action taken Corrective action
No. / guidelines which was details of the by regulatory agencies such as taken, if any
not complied with non-compliance pollution control boards or by courts
1 Refer remarks below
Remarks: The Company ensures that it follows the norms and local laws as applicable at its various branches/offices
pan-India. It has not anyway /in any particular case or event been called upon for any non-compliances or been
penalised in anyway.
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable sources, in the following format:
From renewable sources
Total electricity consumption (A) 0 0
Total fuel consumption (B) 0 0
Energy consumption through other sources ( C ) 0 0
Total energy consumed from renewable sources (A+B+C) 0 0
From non-renewable sources
Total electricity consumption (D) 7,836.97 Not Available
Total fuel consumption (E) Not Available Not Available
Energy consumption through other sources (F) 0
Total energy consumed from non Renewable sources (D+E+F) 7,836.97 Not Available
Remarks: The Bank has started compiling electricity purchase data across all our branches from FY 2022-23, hence
records from FY 2021-22 are not available.
133
name of the external agency.- Not Applicable
2. Provide the following details related to water discharged: Water discharge by destination and level of treatment (in
kilolitres)
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
- No treatment NA NA
With treatment – please specify level of treatment NA NA
(ii) To Groundwater
(iii) To Seawater
(iv) Sent to third-parties
(v) Others
Total water discharged (in kilolitres) NA NA
name of the external agency.- Not Applicable
3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
(i) Name of the area - Not Applicable
(ii) Nature of operations- Not Applicable
3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): Water withdrawal, and consumption
in the following format:

Water withdrawal by source (in kilolitres)
(i) Surface water NA NA
(ii) Groundwater NA NA
(iii) Third party water NA NA
(iv) Seawater / desalinated water NA NA
(v) Others NA NA
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) NA NA
Total volume of water consumption (in kilolitres) NA NA
Water intensity per rupee of turnover (Water consumed / turnover) NA NA
Water intensity (optional) – the relevant metric may be selected by the entity. KL / of NA NA
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Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
(ii) To Groundwater
(iii) To Seawater
(iv) Sent to third-parties
Corporate Overview
(v) Others
Total water discharged (in kilolitres) NA NA
Statutory Reports
4. Please provide details of total Scope 3 emissions & its intensity, in the following format:
Parameter Unit FY 2022-23 FY 2021-22
Total Scope 3 emissions (Break-up of the GHG into CO2,
Total Scope 3 emissions per rupee of turnover / rupee of turnover 0.0000 / Crore 0.0000 / Crore
Total Scope 3 emission intensity (optional) – the relevant
metric may be selected by the entity
name of the external agency.- NA
5. 5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details
of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation
activities.- NA
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:
Sr. No Initiative undertaken Details of the initiative (Web-link, if any, may be Outcome of the initiative
provided along-with summary)
1 0 0 0
135
7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.-
Yes, the Bank has a BCP and DR Policy.
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.- Not Applicable - Nil
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental
impacts.- Not Applicable
PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner
that is responsible and transparent
1. a. Number of affiliations with trade and industry chambers/ associations.-
Indian Banks Association FIMMDA , MFIN, ASFBI
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body)
the entity is a member of/ affiliated to.
S. NO Name of the trade and industry Reach of trade and industry chambers/
chambers/associations associations (State/National)
1 Indian Banks Association National
2 FIMMDA National
3 MFIN National
4 ASFBI National
5 0 0
6 0 0
7 0 0
8 0 0
9 0 0
10 0 0
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.
S. No. Name of authority Brief of the case Corrective action taken
1 0 0 0
Remarks: Not applicable. The Bank does not subscribe to and/or employ any measures which are akin to public policy
advocacy or that of attempting to influence policy in favour of the Bank. The Bank’s Management contributes at industry
fora its mission and vision strategy.
1. Details of public policy positions advocated by the entity:
S. No. Public policy Method resorted Whether information Frequency of Review by Board Web Link,
advocated for such advocacy available in public (Annually/ Half yearly/ Quarterly / if available
domain? (Yes/No) Others – please specify)
1 0 0 0 0 0
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PRINCIPLE 8 Businesses should promote 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.
S. Name and SIA Date of Whether conducted by Results communicated Relevant
No. brief details Notification notification independent external agency in public domain Web link
of project No. (Yes / No) (Yes / No)
1 0 0 0 0 0 0
Remarks: The Bank does not undertake any projects nor has borrowing which requires social impact assessments.
The Bank however, intends to make a broad based assessment impacts created by its lending policy and products.
This project is envisaged to commence during FY24.
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your
Corporate Overview
entity, in the following format:
S. Name of Project State District No. of Project Affected % of PAFs Amounts paid
No. for which R&R Families (PAFs) covered by to PAFs in
is ongoing R&R the FY (In INR)
1 0 0 0 0 0 0
3. Describe the mechanisms to receive and redress grievances of the community:

The Bank has mentioned in the customer service SOP that the customer may walk up to branch or contact the call
Statutory Reports
centre to report any complaint. The Officer at the Branch or Call Centre would understand the exact complaint and raise
a Service Request for further follow up and timely closure. Once resolution is received, the customer is informed and the
complaint closed in the system post customer confirmation.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
Category Current Financial Year Previous Financial Year
Directly sourced from MSMEs/ small producers NA NA
Sourced directly from within the district and neighbouring districts NA NA
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):
S. No. Details of negative social impact identified Corrective action taken

1 NA NA
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as
identified by government bodies:
S. No. State Aspirational District Amount spent (In INR)
1 0 0 0
137
3. a. Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalized /vulnerable groups? (Yes/No)-
No. The Bank currently does not have any procurement of scale, which warrants and requires any special policy on
vendor groups etc.
b. From which marginalized /vulnerable groups do you procure?-
c. What percentage of total procurement (by value) does it constitute?- Case to case
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. No. Intellectual Property based Owned/ Benefit shared Basis of calculating
on traditional knowledge Acquired (Yes/No) (Yes / No) benefit share
1 0 0 0
Remarks: Not applicable vis a vis nature of the business
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
S. No. Name of authority Brief of the Case Corrective action taken
1 0 0 0
6. Details of beneficiaries of CSR Projects

S. CSR Project No. of persons % of beneficiaries
No. benefitted from vulnerable
from CSR and marginalized
Projects groups
1 Educational Infrastructure in municipal schools in NMMC and Chennai 40,504 100%
Sr.
Name of the School Infrastructure work done
No
1 NMMC Secondary Installation of Water Filter
School No. 117, Diwale Shed construction for water filter
Toilet Block for Boy’s
2 NMMC Ward Installation of Water Filter
School 102, Nerul Plantation of Fruit trees
3 NMMC Secondary Installation of Water Filter
School <o. 112, Karave
4 NMMC school Setting up of a Mini Science Lab
No. 92, Kukshet Digital Painting in 4 Class rooms
5 NMMC School No.119, Setting up up of a Mini Science Laboratory
Rabale (Gothale) Repairing, painting and fixing of 2 new doors
One Trophy Cabinet
6 NMMC School No. Setting up of a Mini Library
118, Pawne Gaon Renovation of the Mini Science Lab
Two Trophy Cabinets
7 NMMC School Installation of Water filter
No. 107, Turbhe One bluetooth speaker with 2 mikes
Sports items ( as per school requirement)
Installation of 10 School posters for
school compliance
8 NMMC School No. Installation of Water filter
110, Kopri (Vashi)
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Projects groups
2 Dental Healthcare in Chennai municipal schools 15,993 100%
3 Financial Literacy and capability of Domestic Workers ( “Adhira”) 13,806 100%
Financial Literacy program specially for Domestic workers implemented
in Mumbai and Navi Mumbai. Along with training the domestic workers
are supported to access different products from banks and social security
services. The training for Domestic Workers were conducted in the slums and
in the housing complexes. Financial Literacy camps were conducted in seven
housing complexes in Mumbai and Navi Mumbai.
4 Financial Capability for Students “Ujjwal” In municipal schools between 8 and 10,820 100%
12 standards, scaled up from 8th – 10th standards during FY22.
Corporate Overview
Financial Literacy program is conducted for students form class 8th to 12th
attending government schools. The focus of this program is to prepare the
children for their future, help them their goals and make them aware about
money management.
59 schools participated in financial literacy training in different locations.
5 Financial Capability for Parents “Swayamshree” In Odisha 9,445 100%
Financial Literacy program for parents of students who have attended
financial literacy program in school. The students are made partners in
Statutory Reports
parents learning especially to build their digital literacy.
90% of the participants of financial literacy program were women and 10% Men
6 Health Interventions with focus on women and adolescent girls “Spandan” 7,070 100%
• • • Key focus areas are anemia , reproductive and menstrual health, seasonal
infections, eye care and Osteoporosis. Tie up with Public Health Centers
for medicine distribution for ailments identified during health check ups On
menstrual health - low cost Sanitary napkins made available to the community
by creating a distribution network.
Despite of several government initiatives and programs many low- income
households are still not aware about their basic health parameters and this is
very crucial for them. Many low- income households work as informal workers
and daily wage earners – ill health means loss of income and sometimes
are even forced to take loans to meet daily expenses – these further pushes
them to cycle of poverty. Hence, along with the Financial Education program
embedding health awareness is essential. This has a direct impact on their
financial condition.
The program aims to improve access to information on health and
linkages to services that will give people more control over their own
health and wellbeing.
Focus Areas
• Anemia
• Reproductive health
• Eyes
• Seasonal Infections
• Osteoporosis
• Dental
Number of Health Camps Conducted: 113
139

Projects groups
7 Complimentary Livelihoods “Udyojika” 77 100%
• Community trainers for financial literacy eventually explore being CSPs
as being complimentary livelihoods.
Supplementary livelihoods is given to women (Domestic Workers, informal
workers, marginal farmers in rural area).The additional income could help
them to save and also meet some of the emergencies. The women are
engaged as community trainers who help in mobilizing other women for
financial literacy program, distribution of low-cost sanitary napkin and making
ecofriendly cloth bags.
8 Complimentary Livelihoods “Udyojika” 77 100%

• Community trainers for financial literacy eventually explore being CSPs
as being complimentary livelihoods.
• Selling of Low Cost Sanitary Napkins through distribution network is
being currently piloted.
• Producing low cost environment friendly cloth bags and distribution tie
up with local vendor is piloted Village Development
• Dhumale Gaon a tribal hamlet in Kharghar has been identified for
community development.
• The hamlet faces acute water shortage during summers.
• Water supply arrangement and Anganwadi upgradation activities were
taken up for this village.
9 Dhamole gaon is a small tribal hamlet situated in Kharghar, Navi Mumbai. 300 100%
It has nearly 100 households comprising of Khatkari and Thakur tribals.
Like most tribal hamlets, Dhamole gaon too is impacted by urbanization – their
forest land is slowly getting covered by buildings, they do not have ownership
to the land and face fear of displacement, green cover has depleted, there is
scarcity of water. Women spent 1 to 2 hours daily in filling water.
The Aangan wadi where 35 to 40 students attend was also in poor condition.
Following activities were undertaken for the village
• Installation of water lifting system
• Renovation of Anganwadi
PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible manner
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.-
The Bank has suitable grievance redress mechanism in place and also has a toll-free number where the customer can
lodge a complaint or provide their feedback. A dedicated customer service team addresses the customer complaints and
feedbacks. The customers can also use internet banking and mobile banking applications to raise their queries, complaints
and feedbacks, in addition to the traditional approach of raising such issues through the branch banking network.
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2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:
Category As a percentage to total turnover
Environmental and social parameters relevant to the product N/A
Safe and responsible usage N/A
Recycling and/or safe disposal N/A
Remarks: Not Applicable as per the nature of the business The Bank believes that it has a critical role to carry out in
furthering financial inclusion in the nation to accomplish inclusive and equitable growth. the Bank caters to those who do
not have access to formal system of finance and helps such unbanked and underbanked people by offering loan products
such as Joint Liability Group loans, loans for , Affordable housing, Savings Accounts, Recurring Deposits, etc. The Bank
principally deals with financially vulnerable sections of the society and hence it is even more mindful and responsible in
its lending practices.
3. Number of consumer complaints in respect of the following:

FY2022-23 FY2021-22
Corporate Overview
Received Pending resolution Remarks Received Pending resolution Remarks
during at end of year during at the end of year
the year the year
Data privacy Nil Nil Nil Nil Nil Nil
Advertising Nil Nil Nil Nil Nil Nil
Cyber-security Nil Nil Nil Nil Nil Nil
Delivery of essential services Nil Nil Nil Nil Nil Nil
Statutory Reports
Restrictive Trade Practices Nil Nil Nil Nil Nil Nil
Unfair Trade Practices Nil Nil Nil Nil Nil Nil
Other Nil Nil Nil Nil Nil Nil
4. Details of instances of product recalls on account of safety issues:

Category Number Reasons for recall
Voluntary recalls Nil Nil
Forced recalls Nil Nil
5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide
a web-link of the policy.-
The Bank follows a highly structured and regulated framework on cyber security and ensures that cyber security related
risks (example data privacy) as also safety and security of banking operations for customers via internet banking or
branch banking is optimally secure and safe.
6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential
services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action
taken by regulatory authorities on safety of products / services.-
Not applicable- No cases that related to relating to advertising, and delivery of essential services; cyber security and data
privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on
safety of products / services.
141
1. Channels / platforms where information on products and services of the entity can be accessed (provide web link, if
available).
www.suryodaybank.com
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.-
The bank has a publicly accessible product literature and it endeavours to have a real-time interaction between its staff
and potential clients or existing clients, to guide them in every respect regarding the products- its features, suitability,
benefits, risks to the customer etc. Furthermore, the Bank has proposed to embark on detailing a customer centric charter
of responsibilities and action by the Bank. This project should be available to customers and public by FY24.
3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.-

The Bank proposes a business continuity plan for its clients, which is under progress. This project should be available to
customers and public by FY24.
4. Does the entity display product information on the product over and above what is mandated as per local 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 the entity or the entity as a
whole? (Yes/No)-
The Bank endeavours to provide transparent information on its products & services through its website which has detailed
information on product features, service charges and applicable fees. the Bank publishes interest rates for various deposit
schemes on the website. SMS alerts are sent to customers when charges or fees are levied.
5. Provide the following information relating to data breaches: a. Number of instances of data breaches along-with impact-
Nil
6. Provide the following information relating to data breaches: b. Percentage of data breaches involving personally
identifiable information of customers-
Nil.
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Annual
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Independent Auditor’s Report

To the Members of Basis for Opinion
Suryoday Small Finance Bank Limited 3.
We conducted our audit in accordance with the
Standards on Auditing specified under section 143(10)
Report on the Audit of the Financial Statements of the Act. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities
Opinion for the Audit of the Financial Statements section of our
1. We have audited the accompanying financial report. We are independent of the Bank in accordance
statements of Suryoday Small Finance Bank Limited with the Code of Ethics issued by the Institute of
(‘the Bank’), which comprise the Balance Sheet as at Chartered Accountants of India (‘ICAI’) together with
31 March 2023, the Statement of Profit and Loss and the ethical requirements that are relevant to our audit
the Statement of Cash Flows for the year then ended, of the financial statements under the provisions of the
Corporate Overview
and notes to the financial statements, including a Act and the rules thereunder, and we have fulfilled our
summary of the significant accounting policies and other ethical responsibilities in accordance with these
other explanatory information. requirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and
2. In our opinion and to the best of our information and appropriate to provide a basis for our opinion.
according to the explanations given to us, the aforesaid
financial statements give the information required by the Key Audit Matters
Banking Regulation Act, 1949 as well as the Companies 4. Key audit matters are those matters that, in our
Act, 2013 (‘the Act’) and circulars and guidelines issued
Statutory Reports
professional judgment, were of most significance in our
by the Reserve Bank of India (‘the RBI’), in the manner audit of the financial statements of the current period.
so required for banking companies and give a true and These matters were addressed in the context of our
fair view, in conformity with the Accounting Standards audit of the financial statements as a whole, and in
specified under section 133 of the Act, read with forming our opinion thereon, and we do not provide a
the Companies (Accounting Standards) Rules, 2021 separate opinion on these matters.
and other accounting principles generally accepted
in India, of the state of affairs of the Bank as at 31 5. We have determined the matters described below to be
March 2023, and its profit and its cash flows for the year the key audit matters to be communicated in our report.
ended on that date.
143
Identification of Non-Performing Advances (NPA) and provisioning and write off for loans and advances
n
s at 31 March 2023, the Bank reported total loans and advances (net of provisions) of ₹ 6,015 crores (2022: 4,751
A
crores), gross NPAs of ₹ 191 crores (2022: ₹ 598 crores), and provision for non-performing assets of ₹ 98 crores (2022:
₹ 314 crores). The Bank has written off loans of ₹ 275 crores during the year ended 31 March 2023.
The provision coverage ratio (excluding write-offs) as at 31 March 2023 is 51.42% (2022: 52.57%)
[Refer schedules 9, schedule 17 and schedule 18(4) to the financial statements]
Key Audit Matter How our audit addressed the key audit matter
Identification of NPA and measurement of provision for Our audit procedures included but were not limited
loans and advances is made based on the assessment of to the following:
various criteria stipulated in the Reserve Bank of India (‘RBI’)
- Understood the process and controls and tested the
guidelines on ‘Prudential Norms on Income Recognition,
design and operating effectiveness of key internal
Asset Classification and Provisioning pertaining to
controls (including application controls) over:
advances’ (‘IRACP’).
n
Approval, recording and collection of loans;
The Bank is required to have a Board approved policy as per
the IRACP guidelines for NPA identification and provision n
Identification and classification of NPA in line
and write off for loans and advances. with IRACP guidelines; and
The IRACP guidelines stipulate the requirement to identify n

easurement of provision on loans and advances
M
NPA through defined criteria such as past due status, out in line with IRACP guidelines including valuation
of order status etc. Provisions in respect of such NPAs of security and collateral against loans.
and restructured advances are made based on minimum
- Substantive procedures included:
provisioning levels prescribed under the IRACP and Bank’s
internal credit policy. The provision on NPAs are also n
valuated the Bank’s accounting and internal
E
based on the valuation of the security available. In case policies for identification of NPAs and provisioning
of restructured accounts, provision is made for erosion/ and write off on loans and advances;
diminution in fair value of restructured loans, in accordance n
or borrowers, assessed the appropriateness
F
with the IRACP guidelines. Further, NPA classification is of asset classification and adequacy of related
made borrower wise whereby if one facility to the borrower provisioning by performing procedures such as
becomes an NPA then all facilities to such a borrower will be computation of ageing, assessment of borrower
treated as an NPA. level NPA identification and verification of
The Bank is also required to apply its judgement to determine applicable provision rates as per IRACP norms
the identification of NPA and provision required for loans and Bank’s Policy on test check basis;
and advances by applying quantitative as well as qualitative n
erified performing loans on test check basis to
V
factors. The risk of identification of NPA is affected by assess whether they should be classified as NPA;
factors like stress and liquidity concerns in certain sectors,
profile of borrowers etc. Similarly, the Bank is also required
n
erformed inquiries with the management of
P
to make judgements to identify the loans and advances the Bank to ascertain if there were indicators
which are non-recoverable and thereby determined to of stress, perceived credit risk or occurrence
be written off. of an event of default in any particular class of
borrowers, product category or loan account that
The Bank had extended benefits to its borrowers in line with warrants NPA assessment;
the various guidelines and circulars related to COVID-19
– Regulatory Packages and Resolution Framework for
n
erified on a sample basis that the loan write-offs
V
COVID-19-related Stress announced by RBI in 2020 and 2021. during the year is in accordance with Board
approved policy;
144
Annual
Report 2022-23
During the current year, the Bank has entered into n
erified restructured accounts on test check
V
non-recurring transaction for transfer of stressed loans to basis to assess compliance with the Resolution
Edelweiss Asset Reconstruction Company in accordance Framework and adequacy of provisioning
with the RBI’s guidelines governing the transfer of requirements as per RBI norms.
stressed loans - Reserve Bank of India (Sale of Loan n
erified whether the transfer of stressed loans
V
Exposures) Direction, 2021 (RBI/DOR/2021-22/86 DOR.
is in accordance with RBI Master Directions
STR.REC.51/21.04.048/2021-22 dated 24 September 2021
and the de-recognition of loans transferred and
(Updated 05 December 2022). (“RBI Master Directions”)
subsequent loss on transfer has been accounted
as further detailed in note 18(3)(f) to the accompanying
as per the RBI Master Directions
financial statements.
Corporate Overview
n
btained and read the latest RBI Annual Financial
O
Considering the significance of the above matter to the
Inspection report and other communications with
financial statements, the heightened regulatory compliances,
regulators during the year
and significant auditor attention required, we have identified
this as a key audit matter for the current year audit. n
ssessed disclosures included in the financial
A
statements in respect of asset classifications
and provisioning, including specific disclosures
made in accordance with the requirements of the
COVID-19 Resolution Framework and RBI Master
Statutory Reports
Directions on transfer of stressed loans.
Information Technology (“IT”) Systems and Controls for the financial reporting process
The IT environment of the Bank is complex as it involves We included specialized IT auditors as part of our audit
a number of independent and inter-dependent IT systems team to perform audit procedures which included, but were
which are used in the operations of the Bank for processing not limited to the following:
and recording a large volume of transactions at numerous
n
btained an understanding of the Bank’s IT related
O
locations on a daily basis.
control environment and identified IT applications
As a result, there is a high degree of reliance and dependency that are relevant to our audit. Also, obtained an
on such IT systems for the financial reporting process understanding of the changes that were made to the
of the Bank which impacts key financial accounting and identified IT applications during the audit period and
reporting items such as loans, interest income, provision tested those changes that had a significant impact on
on loans amongst others. Appropriate IT general controls financial reporting.
and application controls are required to ensure that such IT n
ested IT general controls particularly access rights
T
systems are able to process the data, as required, completely,
over applications, change management across
accurately and consistently for reliable financial reporting.
identified applications, password policies, security
Our area of audit focus for the IT systems and the related configuration etc. We also assessed the design and
control environment included: operating effectiveness of controls over granting,
removal and periodical review of access rights.
 IT general controls over user access management and
We further tested segregation of duties, including
change management across applications, networks,
preventive controls to ensure that access to change
database, and operating systems;
applications, the operating system or databases in
 IT application controls (automated controls) relevant the production environment were granted only to
for financial reporting. authorized personnel.
145
Migration of IT systems during the year n
ested related application level controls relevant to the
T
During the year, the Bank has migrated to a new core banking audit mainly for loans, interest income, provision for
system for its retail assets and liabilities. loan assets, deposits amongst others, for evaluating
completeness and accuracy;
Such significant system change increases the risk to the
internal financial control environment. These changes
n
here
W deficiencies were identified, tested
represent a financial reporting risk while migration takes compensating controls or performed
place as controls and process that have been established alternative procedures.
earlier are updated and migrated to a new environment. Apart from above, below procedures were performed in
Hence, our audit strategy focused on this migration of IT relation to migration of IT systems which included:
systems due to the risk of error and the impact such an n
btained an understanding of the migration process
O
error could have on the Bank’s financial accounting and and evaluated the controls established by the Bank for
reporting process. such migration activity;
Accordingly, due to the importance of the impact of n
erified system migration reports approved by
V
the IT systems and automated controls, new system appropriate personnel, mock runs observations and
implementation and related control environment on the remediations, general ledger wise balance transfer,
Bank’s financial reporting process, we have identified testing system access controls reconciliations, etc to ensure
of such IT systems and related control environment as a key accuracy and completeness of transfer of data
audit matter for the current year audit. between the systems;
n
erified on sample basis for transfer of amount
V
outstanding as on the cutoff date for advances;
n
erified on sample basis for transfer of deposit
V
balances as on the cutoff date for deposit
account holders; and
n
btained the observations of the management
O
arising from their testing of the data migration
activity and ensured that exceptions if any have been
rectified and concluded.
Information other than the Financial Statements and identified above when it becomes available and, in
Auditor’s Report thereon doing so, consider whether the other information is
6. The Bank’s Board of Directors are responsible for the materially inconsistent with the financial statements
other information. The other information comprises the or our knowledge obtained in the audit or otherwise
information included in the Management Discussion appears to be materially misstated.
and Analysis, Report on Corporate Governance, and
Directors’ Report but does not include the financial When we read the Annual Report, if we conclude
statements and our auditor’s report thereon. The Annual that there is a material misstatement therein, we are
Report is expected to be made available to us after the required to communicate the matter to those charged
date of this auditor’s report. with governance.
ur opinion on the financial statements does not cover

O Responsibilities of Management and Those Charged with
the other information and we will not express any form Governance for the Financial Statements
of assurance conclusion thereon. 7. The accompanying financial statements have been
approved by the Bank’s Board of Directors. The Bank’s
In connection with our audit of the financial statements, Board of Directors are responsible for the matters
our responsibility is to read the other information stated in section 134(5) of the Act with respect to
146
Annual
Report 2022-23
the preparation and presentation of these financial influence the economic decisions of users taken on the
statements that give a true and fair view of the financial basis of these financial statements.
position, financial performance and cash flows of the
Bank in accordance with the Accounting Standards 11. A
s part of an audit in accordance with Standards on
specified under section 133 of the Act, read with Auditing specified under section 143(10) of the Act,
the Companies (Accounting Standards) Rules, 2021 we exercise professional judgment and maintain
and other accounting principles generally accepted professional skepticism throughout the audit. We also:
in India, and provisions of section 29 of the Banking
Regulation Act, 1949 and circulars and guidelines n
Identify and assess the risks of material
issued by the RBI from time to time. This responsibility misstatement of the financial statements, whether
also includes maintenance of adequate accounting due to fraud or error, design and perform audit
Corporate Overview
records in accordance with the provisions of the Act procedures responsive to those risks, and obtain
for safeguarding of the assets of the Bank and for audit evidence that is sufficient and appropriate
preventing and detecting frauds and other irregularities; to provide a basis for our opinion. The risk of not
selection and application of appropriate accounting detecting a material misstatement resulting from
policies; making judgments and estimates that are fraud is higher than for one resulting from error,
reasonable and prudent; and design, implementation as fraud may involve collusion, forgery, intentional
and maintenance of adequate internal financial omissions, misrepresentations, or the override of
controls, that were operating effectively for ensuring internal control;
the accuracy and completeness of the accounting
Statutory Reports
records, relevant to the preparation and presentation of n
btain an understanding of internal control relevant
O
the financial statements that give a true and fair view to the audit in order to design audit procedures
and are free from material misstatement, whether due that are appropriate in the circumstances.
to fraud or error. Under section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether
8. In preparing the financial statements, the Board of the Bank has adequate internal financial controls
Directors are responsible for assessing the Bank’s with reference to financial statements in place and
ability to continue as a going concern, disclosing, as the operating effectiveness of such controls;
applicable, matters related to going concern and using
the going concern basis of accounting unless the Board n
valuate the appropriateness of accounting
E
of Directors either intend to liquidate the Bank or to cease policies used and the reasonableness of
operations, or has no realistic alternative but to do so. accounting estimates and related disclosures
made by management;
9. Those Board of Directors are also responsible for
overseeing the Bank’s financial reporting process. n
onclude on the appropriateness of Board of
C
Directors’ use of the going concern basis of
Auditor’s Responsibilities for the Audit of the Financial accounting and, based on the audit evidence
Statements obtained, whether a material uncertainty exists
10. O
ur objectives are to obtain reasonable assurance related to events or conditions that may cast
about whether the financial statements as a whole significant doubt on the Bank’s ability to continue
are free from material misstatement, whether due as a going concern. If we conclude that a material
to fraud or error, and to issue an auditor’s report that uncertainty exists, we are required to draw
includes our opinion. Reasonable assurance is a high attention in our auditor’s report to the related
level of assurance, but is not a guarantee that an disclosures in the financial statements or, if such
audit conducted in accordance with Standards on disclosures are inadequate, to modify our opinion.
Auditing will always detect a material misstatement Our conclusions are based on the audit evidence
when it exists. Misstatements can arise from fraud or obtained up to the date of our auditor’s report.
error and are considered material if, individually or in However, future events or conditions may cause
the aggregate, they could reasonably be expected to the Bank to cease to continue as a going concern.
147
n
valuate the overall presentation, structure and
E c) We have visited 25 branches to examine the books
content of the financial statements, including the of accounts and other records maintained at the
disclosures, and whether the financial statements branch for the purpose of our audit. Since the key
represent the underlying transactions and events operations of the Bank are automated with the
in a manner that achieves fair presentation. key applications integrated to the core banking
system, the audit is carried out at centrally as all
12. We communicate with those charged with governance the necessary records and data required for the
regarding, among other matters, the planned scope purposes of our audit are available therein.
and timing of the audit and significant audit findings, 17. W
ith respect to the matter to be included in the auditor’s
including any significant deficiencies in internal control report under section 197(16) of the Act, we report that
that we identify during our audit. since the Bank is a banking company, as defined under
the Banking Regulation Act, 1949; the reporting under
13. W
e also provide those charged with governance with section 197(16) in relation to whether the remuneration
a statement that we have complied with relevant paid by the Bank is in accordance with the provisions
ethical requirements regarding independence, and of section 197 of the Act and whether any excess
to communicate with them all relationships and remuneration has been paid in accordance with the
other matters that may reasonably be thought to aforesaid section is not applicable.
bear on our independence, and where applicable,
Further, as required by section 143 (3) of the Act, based
related safeguards.
on our audit, we report, to the extent applicable, that:
14. F
rom the matters communicated with those charged a) e have sought and obtained all the information
W
with governance, we determine those matters that and explanations which to the best of our
were of most significance in the audit of the financial knowledge and belief were necessary for the
statements of the current period and are therefore purpose of our audit of the accompanying
the key audit matters. We describe these matters in financial statements;
our auditor’s report unless law or regulation precludes b) In our opinion, proper books of account as required
public disclosure about the matter or when, in extremely by law have been kept by the Bank so far as it
rare circumstances, we determine that a matter should appears from our examination of those books;
not be communicated in our report because the
adverse consequences of doing so would reasonably c) he financial statements dealt with by this report
T
are in agreement with the books of account;
be expected to outweigh the public interest benefits of
such communication. d) In our opinion, the aforesaid financial statements
comply with the Accounting Standards specified
Report on Other Legal and Regulatory Requirements under section 133 of the Act read with the
15. T
he Balance Sheet and the Profit and Loss Account Companies (Accounting Standards) Rules, 2021,
have been drawn up in accordance with the provisions to the extent they are not inconsistent with the
of section 29 of the Banking Regulation Act, 1949 and accounting policies prescribed by RBI;
section 133 of the Act. e) ith respect to the adequacy of the internal
W
16. A
s required by sub-section (3) of section 30 of the financial controls with reference to financial
Banking Regulation Act, 1949, we report that: statements of the Bank as on 31 March 2023 and
operating effectiveness of such controls, refer to
a) e have obtained all the information and
W our separate Report in Annexure A wherein we
explanations which, to the best of our knowledge have expressed an unmodified opinion; and
and belief, were necessary for the purpose of our
f) ith respect to the other matters to be included
W
audit and have found them to be satisfactory;
in the Auditor’s Report in accordance with rule
b) The transactions of the Bank, which have come to 11 of the Companies (Audit and Auditors) Rules,
our notice, have been within the powers of the Bank; 2014 (as amended), in our opinion and to the
148
Annual
Report 2022-23
best of our information and according to the person(s) or entity(ies), including foreign
explanations given to us: entities (‘the Funding Parties’), with
the understanding, whether recorded
i. he Bank, as detailed in schedule 12 and
T
in writing or otherwise, that the Bank
schedule 18 - note (20)(b) to the financial
shall, whether directly or indirectly, lend
statements, has disclosed the impact of
or invest in other persons or entities
pending litigations on its financial position as
identified in any manner whatsoever
at 31 March 2023;
by or on behalf of the Funding Party
ii.
The Bank has made provision as at 31 (‘Ultimate Beneficiaries’) or provide any
March 2023, as required under the applicable guarantee, security or the like on behalf
law or accounting standards, for material of the Ultimate Beneficiaries; and
foreseeable losses, if any, on long-term
Corporate Overview
c.
Based on such audit procedures
contracts. The Bank does not have any
performed, as considered reasonable
derivative contracts as at 31 March 2023;
and appropriate in the circumstances,
iii. here has been no delay in transferring
T nothing has come to our notice that
amounts, required to be transferred, to the has caused us to believe that the
Investor Education and Protection Fund by the management representations under
Bank during the year ended 31 March 2023. sub-clauses (a) and (b) above contain
Refer schedule 18 – note 20(n); any material misstatement.
Statutory Reports
iv. a. The management has represented that, v. he Bank has not declared or paid any dividend
T
to the best of its knowledge and belief, during the year ended 31 March 2023.
as disclosed in schedule 18 - note
vi. roviso to Rule 3(1) of the Companies
P
20(w)(i) to the financial statements, no
(Accounts) Rules, 2014 requires all
funds have been advanced or loaned or
companies which use accounting software
invested (either from borrowed funds or
for maintaining their books of account, to
securities premium or any other sources
use such an accounting software which has
or kind of funds) by the Bank to or in
a feature of audit trail, with effect from the
any person(s) or entity(ies), including
financial year beginning on 1 April 2023 and
foreign entities (‘the intermediaries’),
accordingly, reporting under Rule 11(g) of
with the understanding, whether
Companies (Audit and Auditors) Rules, 2014
recorded in writing or otherwise, that the
(as amended) is not applicable for the current
intermediary shall, whether, directly or
financial year.
indirectly lend or invest in other persons
or entities identified in any manner
For Walker Chandiok & Co LLP
whatsoever by or on behalf of the Bank
Chartered Accountants
(‘the Ultimate Beneficiaries’) or provide
Firm’s Registration No.: 001076N/N500013
any guarantee, security or the like on
behalf the Ultimate Beneficiaries;
Sudhir N. Pillai
b. The management has represented that, Partner
to the best of its knowledge and belief, Membership No.: 105782
as disclosed in schedule 18 - note 20(w) UDIN: 23105782BGXTBZ7571
(ii) to the financial statements, no funds Place: Mumbai
have been received by the Bank from any Date: 15 May 2023
149
Annexure A referred to in paragraph “17(e)” under the heading “Report on Other Legal
and Regulatory Requirements” in the Independent Auditor’s Report of even date to the
members of Suryoday Small Finance Bank Limited on the financial statements for the
year ended 31 March 2023
Independent Auditor’s Report on the internal financial require that we comply with ethical requirements
controls with reference to the financial statements under and plan and perform the audit to obtain reasonable
Clause (i) of Sub-section 3 of Section 143 of the Companies assurance about whether adequate internal financial
Act, 2013 (‘the Act’) controls with reference to financial statements were
1. In conjunction with our audit of the financial statements established and maintained and if such controls
of Suryoday Small Finance Bank Limited (‘the Bank’) operated effectively in all material respects.
as at and for the year ended 31 March 2023, we have
4. Our audit involves performing procedures to obtain
audited the internal financial controls with reference to
audit evidence about the adequacy of the internal
financial statements of the Bank as at that date.
financial controls with reference to financial statements
Responsibilities of Management and Those Charged with and their operating effectiveness. Our audit of internal
Governance for Internal Financial Controls financial controls with reference to financial statements
includes obtaining an understanding of such internal
2. The Bank’s Board of Directors is responsible for
financial controls, assessing the risk that a material
establishing and maintaining internal financial
weakness exists, and testing and evaluating the design
controls based on the internal financial controls with
and operating effectiveness of internal control based
reference to financial statements criteria established
on the assessed risk. The procedures selected depend
by the Bank considering the essential components of
on the auditor’s judgement, including the assessment
internal controls stated in the Guidance Note on Audit
of the risks of material misstatement of the financial
of Internal Financial Controls over Financial Reporting
statements, whether due to fraud or error.
issued by the Institute of Chartered Accountants
of India. These responsibilities include the design, 5. We believe that the audit evidence we have obtained
implementation and maintenance of adequate internal is sufficient and appropriate to provide a basis for our
financial controls that were operating effectively for audit opinion on the Bank’s internal financial controls
ensuring the orderly and efficient conduct of the Bank’s with reference to financial statements.
business, including adherence to the Bank’s policies, the
safeguarding of its assets, the prevention and detection Meaning of Internal Financial Controls with Reference to
of frauds and errors, the accuracy and completeness of Financial Statements
the accounting records, and the timely preparation of 6. A Bank’s internal financial controls with reference to
reliable financial information, as required under the Act. financial statements is a process designed to provide
reasonable assurance regarding the reliability of
Auditor’s Responsibility for the Audit of the Internal Financial
financial reporting and the preparation of financial
Controls with Reference to Financial Statements statements for external purposes in accordance with
3. Our responsibility is to express an opinion on the Bank’s generally accepted accounting principles. A Bank’s
internal financial controls with reference to financial internal financial controls with reference to financial
statements based on our audit. We conducted our audit statements include those policies and procedures
in accordance with the Standards on Auditing issued that (1) pertain to the maintenance of records that,
by the Institute of Chartered Accountants of India in reasonable detail, accurately and fairly reflect the
(‘ICAI’) prescribed under Section 143(10) of the Act, to transactions and dispositions of the assets of the Bank;
the extent applicable to an audit of internal financial (2) provide reasonable assurance that transactions
controls with reference to financial statements, and the are recorded as necessary to permit preparation of
Guidance Note on Audit of Internal Financial Controls financial statements in accordance with generally
Over Financial Reporting (‘the Guidance Note’) issued accepted accounting principles, and that receipts
by the ICAI. Those Standards and the Guidance Note and expenditures of the Bank are being made only
150
Annual
Report 2022-23
in accordance with authorisations of management Opinion

and directors of the Bank; and (3) provide reasonable 8. In our opinion, the Bank has, in all material respects,
assurance regarding prevention or timely detection adequate internal financial controls with reference to
of unauthorised acquisition, use, or disposition of the financial statements and such controls were operating
Bank’s assets that could have a material effect on the effectively as at 31 March 2023, based on internal
financial statements. financial controls with reference to financial statements
criteria established by the Bank considering the
Inherent Limitations of Internal Financial Controls with essential components of internal controls stated in the
Reference to Financial Statements Guidance Note issued by the ICAI.
7. Because of the inherent limitations of internal
financial controls with reference to financial
Corporate Overview
statements, including the possibility of collusion or
For Walker Chandiok & Co LLP
improper management override of controls, material
misstatements due to error or fraud may occur and not
Firm’s Registration No.: 001076N/N500013
be detected. Also, projections of any evaluation of the
internal financial controls with reference to financial
Sudhir N. Pillai
statements to future periods are subject to the risk that
Partner
the internal financial controls with reference to financial
Membership No.: 105782
statements may become inadequate because of
UDIN: 23105782BGXTBZ7571
Statutory Reports
changes in conditions, or that the degree of compliance
Place: Mumbai
with the policies or procedures may deteriorate.
Date: 15 May 2023
151
Balance Sheet
As at March 31, 2023
(` in ’000 )
Schedule As at As at
March 31, 2023 March 31, 2022
CAPITAL AND LIABILITIES
Capital 1 1,061,587 1,061,587
Reserves and Surplus 2 14,785,688 13,989,591
Deposits 3 51,667,199 38,538,828
Borrowings 4 27,654,139 25,513,350
Other liabilities and provisions 5 3,443,599 2,698,477
TOTAL 98,612,212 81,801,833
ASSETS
Cash and balances with Reserve Bank of India 6 7,842,266 6,074,525
Balances with banks and money at call and short notice 7 488,748 3,702,419
Investments 8 25,701,865 20,576,805
Advances 9 60,150,511 47,508,836
Fixed Assets 10 1,644,775 1,152,496
Other Assets 11 2,784,047 2,786,752
TOTAL 98,612,212 81,801,833
Contingent liabilities 12 222,919 41,461
Bills for collection
Significant accounting policies and Notes to accounts 17 & 18
The schedules referred to above form an integral part of the balance sheet
As per our Report of even date For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP Suryoday Small Finance Bank Limited
Firm Registration No: 001076N/N500013
Sudhir N. Pillai R. Ramachandran Baskar Babu Ramachandran Jyotin Mehta

Partner Chairperson Managing Director and Director
Chief Executive Officer
Membership No: 105782 DIN-01953653 DIN-02303132 DIN-00033518
Krishna Kant Chaturvedi Kanishka Chaudhary

Company Secretary Chief Financial Officer
Place: Navi Mumbai

Date: May 15, 2023
152
Annual
Report 2022-23
Profit and Loss Account

for the year ended March 31, 2023
(` in ’000 )
Schedule Year ended Year ended
March 31, 2023 March 31, 2022
I. INCOME
Interest earned 13 11,836,821 9,418,210
Other income 14 974,224 935,584
TOTAL 12,811,045 10,353,794
II. EXPENDITURE
Interest expended 15 4,371,081 3,573,652
Operating expenses 16 5,065,385 4,131,045
Corporate Overview
Provisions and contingencies 2,597,670 3,579,417
TOTAL 12,034,136 11,284,114
III. PROFIT
Net profit for the year 776,909 (930,320)
Net balance in profit and loss account brought forward 1,119,623 2,051,532
TOTAL 1,896,532 1,121,212
IV. APPROPRIATIONS
Statutory Reports
Transfer to Statutory Reserve 194,227 -
Transfer to Investment Fluctuation Reserve 188,428 -
Transfer to Capital Reserve - 1,589
Balance carried over to Balance Sheet 1,513,877 1,119,623
TOTAL 1,896,532 1,121,212
V. EARNINGS PER EQUITY SHARE (Face value of ` 10 per share)
Basic 18 7.32 (8.76)
Diluted 18 7.32 (8.76)
Significant accounting policies and Notes to accounts 17 & 18
The schedules referred to above form an integral part of the Profit and Loss Account


Place: Navi Mumbai

Date: May 15, 2023
153
Cash Flow Statement

(` in ’000 )
Particulars Year ended Year ended
March 31, 2023 March 31, 2022
Cash flows (used in)/from operating activities
Net profit before tax 1,008,562 (1,270,627)
Adjustments for:
Depreciation on fixed assets 433,304 193,809
Provision for non performing assets 398,788 1,022,211
Provision for standard assets 39,165 58,014
Write off of advances 2,410,709 2,181,967
Provision on depreciation on investment (145,458) 83,839
Other provision (651,088) 658,421
Loss on discard of fixed assets 650 -
Profit on sale of fixed assets (118) (758)
Amortisation of premium on held to maturity investment 28,228 26,556
Employee stock option expenses 25,292 9,302
Floating provision 178,436 -
Loss on transfer of stressed assets 215,271 -
3,941,741 2,962,734
Adjustments for:
(Increase) in investments (3,330,338) (1,288,880)
(Increase) in advances (15,775,115) (10,959,685)
Increase in deposits 13,128,371 5,941,259
(Increase) in others assets (242,319) (136,260)
Increase in other liabilities and provisions 1,287,255 169,301
(4,932,146) (6,274,265)
Direct taxes paid (net of refunds) 13,402 (153,601)
Net cash flow used in operating activities (977,003) (3,465,132)
Cash flow used in investing activities
Purchase of fixed assets (Including capital work in progress) (926,353) (914,227)
Proceeds from sale of fixed assets 133 877
Investment in fixed deposit (53,368) (1,320)
Net investment in banking book (690,921) (661,353)
Investment in security receipts (1,148,350) -
Security receipts redeemed 161,879 -
Net cash used in investing activities (2,656,980) (1,576,024)
154
Annual
Report 2022-23
Cash Flow Statement (Contd.)

(` in ’000 )
Particulars Year ended Year ended
March 31, 2023 March 31, 2022
Cash flow from financing activities
Proceeds from issue of share capital (inclusive of issue expense) [Refer (6,104) 3,224
note - 18(1)(b)]
Proceeds from Borrowings 7,502,189 14,500,000
Repayment of Borrowings (5,361,400) (5,652,850)
Net cash flow from financing activities 2,134,685 8,850,374
Net (decrease)/increase in cash and cash equivalents (1,499,298) 3,809,218
Corporate Overview
Cash and cash equivalents at the beginning of the year 9,741,124 5,931,906
Cash and cash equivalents at the end of the year (Refer note below) 8,241,826 9,741,124
Note:
Components of cash and cash equivalents:
Cash and Balances with Reserve Bank of India (Refer Schedule 6 ) 7,842,266 6,074,525
Statutory Reports
Balances with banks in current Accounts (Refer Schedule 7 I (i) (a)) 399,560 417,647
Money at call and short notice (Refer Schedule 7 I (ii) ) - 3,248,952
Cash and cash equivalents at the end of the year 8,241,826 9,741,124


Place: Navi Mumbai

Date: May 15, 2023
155
Schedules to the Financial Statements

SCHEDULE 1 - CAPITAL
(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
Authorised Capital
125,000,000 (March 31, 2022: 125,000,000) equity shares of ` 10 each 1,250,000 1,250,000
Issued, Subscribed and Paid-up Capital
106,158,749 (March 31, 2022: 106,158,749) equity shares of ` 10 each fully paid up 1,061,587 1,061,587
[Refer note -18 (1.a)]
Total 1,061,587 1,061,587
SCHEDULE 2 - RESERVES AND SURPLUS

(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
I. Statutory Reserve1
Opening balance 699,626 699,626
Addition during the period [Refer note - 18(1)(c)(i)] 194,227 -
Total 893,853 699,626
II. Capital Reserve
Addition during the period [Refer note - 18(1)(c)(ii))] - 1,589
Total 13,857 13,857
III. Share Premium
Opening balance 11,871,399 11,871,399
Addition during the period - -
Amounts utilized toward share issue expenses [Refer note - 18(1)(b)] (6,104) -
Total 11,865,295 11,871,399
IV. General Reserve
Addition during the period 29,596 16,768
Total 53,549 23,953
V. Employee Stock Options Reserve
Employee compensation expense for the period 25,292 9,302
Transfer to Share Premium Account/Share Capital on exercise of stock options - (1,517)
Transfer to General Reserve for Non- exercise of ESOP's (29,596) (16,768)
Total 87,796 92,100
VI. Investment Reserve
Opening balance - -
Addition during the period - -
Total - -
VII. Investment Fluctuation Reserve2
Addition during the period [Refer note - 18(1)(c)(iii)] 188,428 -
Total 357,461 169,033
156
Annual
Report 2022-23

(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
VIII. Balance in Profit and Loss Account
Balance brought from Profit and Loss 1,513,877 1,119,623
Total 1,513,877 1,119,623
Total 14,785,688 13,989,591
1 Statutory reserve has been created pursuant to section 17(1) and section 11(2)(b)(ii) of Banking Regulation Act, 1949.
Also, refer note 18 (1)(c)(i).
2 Represents an amount transferred to Investment Fluctuation Reserve (IFR) from disposable profit. As per the
Corporate Overview
RBI guidelines, an amount not less than the lower of net profit on sale of AFS and held-for-trading (HFT) category
investments during the year or net profit for the year less mandatory appropriations is required to be transferred to IFR,
until the amount of IFR is at least 2% of the HFT and AFS portfolio. The Bank can drawdown balance available in IFR in
excess of 2% of its AFS and HFT portfolio. Also, refer note 18(1)(c)(iii).
SCHEDULE 3 - DEPOSITS
(` in ’000 )
As at As at
Statutory Reports
March 31, 2023 March 31, 2022
A. I. Demand Deposits
i) From banks 277,579 375,259
ii) From others 1,638,611 581,239
Total 1,916,190 956,498
II. Savings Bank Deposits 6,924,694 6,283,298
III. Term Deposits
i) From banks 6,763,034 7,922,688
ii) From others 36,063,281 23,376,344
Total 42,826,315 31,299,032
Total 51,667,199 38,538,828
B. I. Deposits of branches in India 51,667,199 38,538,828
II. Deposits of branches outside India - -
Total 51,667,199 38,538,828
SCHEDULE 4 - BORROWINGS
(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
I. Borrowings in India*
i) Reserve Bank of India 7,500,000 7,500,000
ii) Other institutions and agencies 19,154,139 16,763,350
iii) Unsecured redeemable debentures and term loan (Subordinate debts 1,000,000 1,250,000
included in Tier 2 capital)
27,654,139 25,513,350
II. Borrowings outside India - -
27,654,139 25,513,350
*Secured Borrowings is ` 2,295 crores (March 31, 2022: ` 2,426 crores) other than Tri-Party Repo and Repo.
157

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
I. Bills payable 258,922 355,727
II. Inter - office adjustments (net) - -
III. Interest accrued 494,460 217,351
IV. Others (including provisions)
(i) Contingent provisions against standard assets 233,790 194,625
(ii) Others liabilities 2,456,427 1,930,774
Total 3,443,599 2,698,477
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA

(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
I. Cash in hand 77,702 83,287
II. Balances with Reserve Bank of India
i) in Current account 2,534,564 1,511,238
ii) in Other accounts 5,230,000 4,480,000
Total 7,842,266 6,074,525
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
I. In India
i) Balances with banks
a) In Current accounts 399,560 417,647
b) In Other deposit accounts 89,188 35,820
Total 488,748 453,467
ii) Money at call and short notice
a) With banks - 750,000
b) With other institutions - 2,498,952
Total - 3,248,952
Total 488,748 3,702,419
II. Outside India
i) In Current account - -
ii) In other Deposit account - -
iii) Money at call and short notice - -
Total - -
Total 488,748 3,702,419
158
Annual
Report 2022-23

SCHEDULE 8 - INVESTMENTS
(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
A. Investments in India
i) Government securities 24,505,796 19,671,172
ii) Other approved securities - -
iii) Shares 7,702 7,702
iv) Debentures and bonds 201,796 402,265
v) Subsidiaries and/or joint ventures - -
vi) Others (Certificate of Deposit , Security Receipts) 986,571 495,666
Total 25,701,865 20,576,805
Corporate Overview
B. Investments outside India
i) Government securities - -
ii) Subsidiaries and/or joint ventures - -
iii) Others (equity shares and bonds) - -
Total - -
Total 25,701,865 20,576,805
C. Investments
i) Gross value of investments
Statutory Reports
a) In India 25,830,183 20,850,580
b) Outside India - -
Total 25,830,183 20,850,580
ii) Provision for depreciation
a) In India 128,318 273,775
Total 128,318 273,775
iii) Net value of investments
a) In India 25,701,865 20,576,805
Total 25,701,865 20,576,805
SCHEDULE 9 - ADVANCES*
(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
A i) Bills purchased and discounted - -
ii) Cash credits, overdrafts and loans repayable on demand 1,816,058 1,269,294
iii) Term loans 58,334,453 46,239,542
Total 60,150,511 47,508,836
B i) Secured by tangible assets 18,863,777 14,415,539
ii) Covered by Bank / Government Guarantees - -
iii) Unsecured 41,286,733 33,093,297
Total 60,150,511 47,508,836
C. I. Advances in India
i) Priority sectors [Refer note - 4 (b)] 23,323,301 11,073,648
ii) Public sector - -
iii) Banks 92,217 -
iv) Others 36,734,993 36,435,188
Total 60,150,511 47,508,836
159

(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
C. II. Advances outside India
i) Due from banks - -
ii) Due from others - -
(a) Bills purchased and discounted - -
(b) Syndicated loans - -
(c) Others - -
Total - -
SCHEDULE 10 - FIXED ASSETS
(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
I Premises
Gross Block
At cost on March 31 of the preceding year 31,872 31,872
Additions during the year - -
Deductions during the year - -
Total 31,872 31,872
Depreciation
As at March 31 of the preceding year 12,223 10,160
Charge for the year 1,867 2,063
Deductions during the year - -
Total 14,090 12,223
Net Block 17,782 19,649
II Other fixed assets (including furniture & fixtures and software )
Gross Block
At cost on March 31 of the preceding year 1,210,631 707,966
Additions during the year 1,405,162 504,740
Deductions during the year (55,307) (2,075)
Total 2,560,486 1,210,631
Depreciation
As at March 31 of the preceding year 569,956 380,166
Charge for the year 431,437 191,747
Deductions during the year (54,638) (1,957)
Total 946,755 569,956
Net Block 1,613,731 640,676
III Capital work in progress 13,262 492,171
Total 1,644,775 1,152,496
160
Annual
Report 2022-23

SCHEDULE 11 - OTHER ASSETS

(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
I. Inter - office adjustments (net) - 165
II. Interest accrued 820,279 786,290
III. Tax paid in advance/tax deducted at source (net of provision for tax) 103,249 259,617
IV. Stationery and stamps 292 -
V. Deferred tax assets (net) 974,471 1,063,128
VI. Others 885,756 677,552
Corporate Overview
Total 2,784,047 2,786,752
SCHEDULE 12 - CONTINGENT LIABILITIES

(` in ’000 )
As at As at
March 31, 2023 March 31, 2022
I. Claims against the bank not acknowledged as debts 221,743 40,285
Statutory Reports
II. Liability for partly paid investments
III. Liability on account of outstanding forward exchange contracts - -
IV. Guarantees given on behalf of constituents : -
(a) In India - -
(b) Outside India - -
VI. Acceptances, endorsements and other obligations - -
VII. Other items for which the bank is contingently liable 1,176 1,176
Total 222,919 41,461
SCHEDULE 13 - INTEREST EARNED

(` in ’000 )
Year ended Year ended
March 31, 2023 March 31, 2022
I. Interest/discount on advances/bills 10,249,256 8,173,341
II. Income on investments 1,497,312 1,116,611
III. Interest on balances with Reserve Bank of India and other inter-bank funds 89,886 126,758
IV. Others 367 1,500
Total 11,836,821 9,418,210
161

SCHEDULE 14 - OTHER INCOME

(` in ’000 )
March 31, 2023 March 31, 2022
I. Commission, exchange and brokerage 933,394 608,823
II. Profit/ (Loss) on sale of investments (net) (354,477) (60,182)
III. Profit/(Loss) on sale of fixed assets (net) 118 758
IV. Miscellaneous income [Refer note - 20(f)(i)] 395,189 386,185
Total 974,224 935,584
SCHEDULE 15 - INTEREST EXPENDED

(` in ’000 )
March 31, 2023 March 31, 2022
I. Interest on deposits 2,747,186 2,285,190
II. Interest on Reserve Bank of India/ inter-bank borrowings 422,325 291,321
III. Others 1,201,570 997,141
Total 4,371,081 3,573,652
SCHEDULE 16 - OPERATING EXPENSES

(` in ’000 )
March 31, 2023 March 31, 2022
I. Payments to and provisions for employees 2,423,737 2,281,638
II. Rent, taxes and lighting 345,096 288,747
III. Printing and stationery 63,577 26,056
IV. Advertisement and publicity 16,019 5,988
V. Depreciation on Bank's property 433,304 193,809
VI. Director's fees/remuneration, allowances and expenses 14,660 12,189
VII. Auditors' fees and expenses 10,500 10,800
VIII. Law charges 28,078 46,314
IX. Postage, Telegrams, Telephones, etc. 55,453 32,508
X. Repairs and maintenance 510,951 529,136
XI. Insurance 116,015 89,150
XII. Other expenditure (includes professional fees) [Refer note -20(f)(ii)] 1,047,995 614,710
5,065,385 4,131,045
162
Annual
Report 2022-23

Schedule 17 – Basis of preparation and significant the reported income and expenses for the reporting
accounting policies period. Management believes that the estimates used
1. Background and nature of operations in the preparation of the financial statements are
prudent and reasonable. Actual results could differ
Suryoday Small Finance Bank Limited (the ‘Bank’
from these estimates. Any revision in the accounting
or ‘Company’) started its banking operation in
estimates is recognised prospectively in the current
January 2017 pursuant to SFB Licence given by
and future periods.
Reserve Bank of India (RBI). The Bank is included in
the Second schedule to the Reserve Bank of India Act, 3. Significant accounting policies
1934 vide Notification No. DBR.NBD. (SFB- Suryoday).
A. Investments
No. 766/16.13.216/201718 dated 24 July 2017 and
published in the Gazette of India (part III- Section 4) Classification:
Corporate Overview
dated 2 September 2017. The Bank’s equity shares are In accordance with the RBI guidelines on investment
listed on NSE and BSE. The Bank operates with 577 classification and valuation, investments are classified
banking outlets as on March 31, 2023. on the date of purchase into “Held for Trading” (‘HFT’),
“Available for Sale” (‘AFS’) and “Held to Maturity”
The Bank is primarily engaged in extending micro credit (‘HTM’ or “Banking book”) categories (hereinafter
to economically weaker women who are otherwise called “categories”). Subsequent shifting amongst
unable to access finance from the mainstream banking the categories is done in accordance with the
channels. The Bank broadly follows the Grameen RBI guidelines.
Statutory Reports
model with suitable adaptations using the Joint
Under each of these categories, investments are
Liability Groups (JLG) framework, where each member
further classified under six groups (hereinafter called
of the group guarantees the loan repayment of the
“groups”) – Government Securities, Other Approved
other members of the group. The Bank also provides
Securities, Shares, Debentures and Bonds, Investments
finance for mortgage loans, commercial vehicles, loans
in Subsidiaries / Joint Ventures and Other Investments.
to micro, small and medium enterprises and loans to
non-banking finance companies (NBFCs). The Bank follows settlement date accounting for
purchase and sale of investments except for Central
2. Basis of preparation of financial statements & State government securities where settlement date
The financial statements have been prepared and method of accounting is followed in accordance with
presented under the historical cost convention and RBI Guidelines.
accrual basis of accounting, unless otherwise stated
and are in accordance with Generally Accepted Basis of classification:
Accounting Principles in India (‘GAAP’), statutory Investments that are held principally for resale within
requirements prescribed under the Third Schedule 90 days from the date of purchase are classified
of the Banking Regulation Act, 1949, circulars and under HFT category.
guidelines issued by the Reserve Bank of India
Investments which the Bank intends to hold till maturity
(‘RBI’) from time to time (RBI guidelines), Accounting
are classified as HTM securities. Investments which
Standards (‘AS’) specified under Section 133 of the
are not classified in either of the above categories are
Companies Act, 2013 read together with paragraph
classified under AFS category.
7 of the Companies (Accounts) Rules, 2014 and the
Companies (Accounting Standards) Amendment Rules, Acquisition Cost and Broken Period Interest
2016, in so far as they apply to banks. Brokerage, commission and broken period interest on
debts instruments are recognised in Profit and Loss
Use of estimates Account and are not included in the cost of acquisition.
The preparation of financial statements in conformity
with GAAP requires the management to make Disposal of Investments
estimates and assumptions considered in the reported Profit/loss on sale of investments under the aforesaid
amounts of assets and liabilities (including contingent three categories is recognised in the Profit and
liabilities) as of the date of the financial statements and Loss Account. Cost of investments is based on the
163

weighted average cost method. The profit from sale Investments classified under HTM category are carried
of investment under HTM category, net of taxes and at their acquisition cost and not marked to market.
transfer to statutory reserve is appropriated from Profit Any premium on acquisition is amortised over the
and Loss Account to “Capital Reserve” in accordance remaining maturity period of the security on a constant
with the RBI Guidelines. yield-to-maturity basis. Such amortisation of premium
is adjusted against interest income under the head
Short Sale “Income from investments” as per the RBI guidelines.
The Bank undertakes short sale transactions in dated
central government securities in accordance with Non-performing investments are identified, and
RBI guidelines. The short positions are categorised depreciation / provision are made thereon based on
under HFT category and netted off from investments the RBI guidelines. The depreciation / provision on
in the Balance Sheet. These positions are marked- such non-performing investments are not set off
to- market along with the other securities under HFT against the appreciation in respect of other performing
portfolio. The mark to-market loss is charged to profit securities. Interest on non-performing investments
and loss account and gain, if any, is ignored as per is not recognised in the Profit and Loss Account
RBI guidelines. until received.
Valuation As per the RBI circular RBI/2017-18/147 DBR. No.BP.

Investments classified under AFS and HFT categories BC.102/21.04.048/2017-18 dated April 2, 2018, to
are marked to market as per the RBI guidelines. build up adequate reserves to protect against increase
in yields in future, the Bank has created an Investment
Traded investments are valued based on the trades / Fluctuation Reserve (IFR) to the extent of the lower of
quotes on the recognised stock exchanges, price list of following: a) net profit on sale of investments during
RBI or prices declared by Primary Dealers Association the year; b) net profit for the year less mandatory
of India (‘PDAI’) jointly with Fixed Income Money Market appropriations. As per the RBI circular, this reserve will
and Derivatives Association (‘FIMMDA’)/ Financial be created until the amount of IFR is at least 2 percent
Benchmark India Private Limited (FBIL), periodically.
of the HFT and AFS portfolio, on a continuing basis
The market value of Central Government securities and where feasible this should be achieved within a
(G Sec) and state development Loans (SDL which period of three year.
qualify for determining the Statutory Liquidity Ratio
(‘SLR’), included in the AFS and HFT categories, is Investment Reserve Account
computed as per the Yield-to-Maturity (‘YTM’) rates In accordance with the RBI Master Circular on
published by FBIL. Prudential Norms for Classification, Valuation and
Operation of Investment Portfolio by Banks, in case the
The valuation of other unquoted fixed income securities provision on account of depreciation in the HFT and
(viz. other approved securities, bonds and debentures) AFS categories is found to be in excess of the required
and preference shares is done with a mark-up (reflecting amount, the excess is credited to the Profit and Loss
associated credit and liquidity risk) over the YTM rates Account and an equivalent amount net of taxes, if
for government securities published by FBIL. any, and adjusted for transfer to Statutory Reserve as
applicable to such excess provision is appropriated to
Units of mutual funds are valued at the latest
the Investment Reserve Account.
repurchase price / net asset value declared by the
mutual fund. Treasury bills, commercial papers and
Repo and Reverse Repo Transactions
certificate of deposits being discounted instruments,
In accordance with the RBI guidelines, repurchase
are valued at carrying cost.
and reverse repurchase transactions in government
Net depreciation in the value, if any, compared to the securities including those conducted under the
acquisition cost, in any of the groups, is charged to the Liquidity Adjustment Facility (‘LAF’), Marginal Standing
Profit and Loss Account. The net appreciation, if any, in Facility (‘MSF’) and Standing Deposit Facility (‘SDF’)
any of the groups is not recognised except to the extent with RBI are accounted as borrowing / lending
of depreciation already provided. transactions accordingly.
164
Annual
Report 2022-23

Borrowing cost on repo transactions is accounted considered by the Bank up to a level approved by the
for as interest expense and revenue on reverse repo BOD. In accordance with the RBI guidelines, floating
transactions is accounted for as interest income. provisions are used up to a level approved by the BOD
and RBI only for contingencies under extraordinary
B. Advances circumstances and for making specific provisions
Advances are classified as performing and for impaired accounts as per these guidelines or any
non-performing advances (‘NPAs’) as per the other regulatory guidelines as applicable. The floating
RBI guidelines on Income Recognition and Asset provision is netted-off from advances.
Classification and are stated net of specific provisions
made towards NPAs and inter-bank participation with The Bank recognises the provision for unhedged foreign
risk. Further, NPAs are classified into sub-standard, currency exposure of its borrowers as per regulatory
doubtful and loss assets based on the criteria guidelines stipulated by the RBI from time to time and
Corporate Overview
stipulated by the RBI. Provisions for NPAs are made as per methodology prescribed. The provisions are
for sub-standard and doubtful assets at rates as included in provision for standard assets and reported
prescribed by the RBI. NPAs are identified by periodic under other liabilities.
appraisals of the loan portfolio by management.
Loans given under Emergency Credit Line Guarantee C. Transfer and Servicing of Assets
Scheme (ECLGS) classified as NPA are not provided The Bank transfers loans through securitisation
for since these are fully guaranteed under the ECGLS transactions. The transferred loans are de-recognised,
scheme of Government of India. and gains/losses are accounted for, only if the Bank
Statutory Reports
surrenders the rights to benefits specified in the
NPA accounts are written off in accordance with underlying securitised loan contract.
RBI guidelines and Bank’s Policy post approval
from Board of Directors (BOD). Amounts recovered In accordance with the RBI guidelines for securitisation
against debts written-off are recognised in the Profit of standard assets, the profit/premium arising from
and Loss account. sell down/securitisation to be amortised over the life of
the transaction based on the method prescribed in the
For restructured/rescheduled assets, provision is
guidelines and the loss, if any, arises in the sell down/
made in accordance with guidelines issued by RBI.
securitisation transaction, is recognised upfront in the
The restructured accounts are classified in accordance
Profit or Loss Account.
with RBI guidelines.
he Bank maintains a general provision on

T The Bank transfers advances through inter-bank
standard advances at the rates prescribed by RBI. participation with risk. In accordance with the RBI
Provision made against standard assets is included in guidelines, for participation with risk, the aggregate
“Other liabilities & provisions”. amount of the participation issued by the Bank is
reduced from advances.
In addition to the above, the Bank on a prudent basis
makes provisions on advances or exposures which D. Priority Sector Lending Certificates
are not NPAs but has reasons to believe on the basis The Bank enters into transactions for the sale or
of the extant environment or specific information or purchase of Priority Sector Lending Certificates
basis regulatory guidance / instructions, of a possible (PSLCs). In the case of a sale transaction, the Bank
slippage of a specific advance or a group of advances sells the fulfilment of priority sector obligation and
or exposures or potential exposures. These are in the case of a purchase transaction, the Bank buys
classified as contingent provisions and included under the fulfilment of priority sector obligation through the
other liabilities. RBI trading platform. There is no transfer of risks or
loan assets. The fee received for the sale of PSLCs
Provisions made in excess of the Bank’s policy for is recorded as ‘Miscellaneous Income’ and the fee
specific loan provisions for non-performing assets paid for purchase of the PSLCs is recorded as ‘Other
and regulatory general provisions are categorised as Expenditure’ in Profit and Loss account. The Bank
floating provisions. Creation of floating provisions is amortises the income and expense on upfront basis.
165

E. Foreign Currency Transactions if any. The cost comprises purchase price and any
(i) oreign currency transactions are recorded in
F attributable cost of bringing the asset to its working
the reporting currency, by applying to the foreign condition for its intended use. Any trade discounts and
currency amount the exchange rate between the rebates are deducted in arriving at the purchase price.
reporting currency and the foreign currency at the
date of the transaction. Depreciation is charged over the estimated useful life
of the fixed asset on written down value basis from
(ii) oreign currency monetary items are reported
F the date asset is put to use considering residual value
using the closing rate prevailing at the Balance of 5% of the cost. Assets individually costing ` 5,000
Sheet date. Non-monetary items which are carried or less are fully depreciated in the year of purchase.
in terms of historical cost denominated in a Assets purchased / sold during the year are depreciated
foreign currency are reported using the exchange on a pro-rata basis for the actual number of days the
rate at the date of the transaction. assets have been put to use. Depreciation rate used by
the Bank are in line with those specified under Schedule
ll exchange differences are recognized as income
A II of the Companies Act, 2013.
or as expenses in the period in which they arise.
The details of useful life are as under:
F. Revenue Recognition
(i) Interest income is recognised in the Profit and Class of Assets Estimated useful life
Loss Account on an accrual basis, except in the Computers & Accessories 3 years
case of non-performing assets is recognised Office equipment 5 years
upon realisation as per income recognition and Premises 30 years
asset classification norms of RBI. Furniture and fittings 10 years
Vehicle 8 years
(ii) Income on non-coupon bearing discounted Leasehold Improvements: Improvements to leasehold
instruments is recognised over the tenor of the premises are amortised over the primary period of
instrument on a constant effective yield basis. lease or estimated useful life, whichever is lower.
(iii) L
oan processing fees including processing fees H. Intangible Assets
on committed lines is accounted for upfront when
Intangible Assets acquired separately are measured on
it becomes due.
initial recognition at cost. Following initial recognition,
(iv)
Interest income on deposits with banks and intangible assets are carried at cost less accumulated
financial institutions is recognized on a time amortization and accumulated impairment
proportion basis taking into accounts the amount losses, if any.
outstanding and the implicit rate of interest.
Intangible assets such as software are amortized over
(v) ividend is recognised as income when the right
D a period of 60 months or license period whichever is
to receive the dividend is established. lower on a straight-line basis with zero residual value.
(vi) P
rofit or loss on sale of mutual fund units is I. Leases
recognised on trade date.
Operating Lease
(vii) A
ll other fees are accounted for as and when Leases, where the lessor effectively retains
they become due. substantially all the risks and benefits of ownership
for the leased term are classified as operating leases
G. Fixed Assets and Depreciation in accordance with Accounting Standard 19, Leases.
Tangible Assets The office premises are generally rented on cancellable
Fixed assets are stated at cost less accumulated terms or renewable at the option of both the parties.
depreciation / amortization and impairment loss, Computers and tablets are rented on operating lease.
166
Annual
Report 2022-23

J. Impairment asic earnings per share are calculated by dividing the

B
The carrying amounts of assets are reviewed at net profit or loss for the period attributable to equity
each balance sheet date if there is any indication shareholders by the weighted average number of
of impairment based on internal / external factors. equity shares outstanding during the period.
An impairment loss is recognized wherever the carrying
amount of an asset exceeds its recoverable amount. Diluted earnings per equity share reflect the potential
The recoverable amount is the greater of the asset’s dilution that could occur if securities or other contracts
net selling price and value in use. In assessing value in to issue equity shares were exercised or converted
use, the estimated future cash flows are discounted to to equity during the year. Diluted earnings per equity
their present value using a pre-tax discount rate that share are computed using the weighted average
reflects current market assessments of the time value number of equity shares and potential dilutive equity
Corporate Overview
of money and risks specific to the asset. shares outstanding during the period except where the
results are anti-dilutive.
After impairment, depreciation is provided on
the revised carrying amount of the asset over its M. Provisions, contingent liabilities and contingent assets
remaining useful life. In accordance with AS 29, Provision, Contingent
liabilities and Contingent Assets, the provision is
K. Taxation recognised when the Bank has a present obligation
Tax expense comprises current and deferred tax. as a result of past event, where it is probable that
Statutory Reports
Current income tax is measured at the amount expected an outflow of resources will be required to settle the
to be paid to the tax authorities in accordance with the obligation, in respect of which a reliable estimate can
Income Tax Act, 1961 enacted in India. Deferred taxes be made. Provisions are not discounted to its present
reflect the impact of current year timing differences value and are determined based on best estimate
between taxable income and accounting income for the required to settle the obligation at the Balance Sheet
year and reversal of timing differences of earlier years. date. These are reviewed at each Balance Sheet date
and adjusted to reflect the current best estimates.
Deferred tax is measured based on the tax rates and
the tax laws enacted or substantively enacted at the A disclosure of contingent liability is made when there is:
balance sheet date. Deferred tax assets are recognised
only to the extent that there is reasonable certainty • possible obligation arising from a past event, the
a
that sufficient future taxable income will be available existence of which will be confirmed by occurrence
against which such deferred tax assets can be or non-occurrence of one or more uncertain future
realised. In situations where the Bank has unabsorbed events not within the control of the Bank; or
depreciation or carry forward tax losses, all deferred tax
assets are recognised only if there is virtual certainty • present obligation arising from a past event
a
supported by convincing evidence that they can be which is not recognised as it is not probable that
realised against future taxable profits. an outflow of resources will be required to settle
the obligation or a reliable estimate of the amount
The carrying amount of deferred tax assets are reviewed of the obligation cannot be made.
at each balance sheet date. The Bank writes-down the
carrying amount of a deferred tax asset to the extent When there is a possible obligation or a present
that it is no longer reasonably certain or virtually obligation in respect of which the likelihood of outflow of
certain, as the case may be, that sufficient future resources is remote, no provision or disclosure is made.
taxable income will be available against which deferred
tax asset can be realised. Contingent assets are not recognised in the financial
statements. However, contingent assets are assessed
L. Earnings Per Share continually and if it is virtually certain that an inflow
Basic and diluted earnings per share are computed of economic benefits will arise, the asset and
in accordance with Accounting Standard 20 – related income are recognised in the period in which
Earnings per share. the change occurs.
167

N. Cash and cash equivalents (iii) P

rovision for Leave availment is made in
Cash and cash equivalents include cash in hand, accordance with Accounting Standard 15
balances with RBI, balances with other banks and “Employee benefits”.
money at call and short notice.
Q. Employee Stock Compensation Cost
O. Borrowing cost Employees (including senior executives) of the Bank
Borrowing cost includes arranger fees, processing fees, receive remuneration in the form of share-based
stamp duty on issuance of debenture certificates and payment transactions, whereby employees render
other associated transaction cost related to borrowing services as consideration for equity instruments
from banks and other financial institutions. (equity-settled transactions).
In accordance with Accounting Standard 16, borrowing In accordance with the Guidance Note on Accounting
costs are recognised upfront. for Employee Share-based Payments, issued by the
ICAI, the cost of equity-settled transaction is measured
P. Retirement and other employee benefits using the fair value method and recognized, together
with a corresponding increase in the “Employees
(i) Defined Contribution Plans
Stock options outstanding account” in reserves.
etirement benefits in the form of provident
R
The cumulative expense recognized for equity-settled
fund and employee state insurance schemes
transactions at each reporting date until the vesting
are defined contribution schemes and the
date reflects the extent to which the vesting period
contributions are charged to the Profit and Loss
has expired and the Bank’s best estimate of the
Account for the year when the contributions to
number of equity instruments that will ultimately vest.
the respective funds are due. There are no other
The expense or credit recognized in the Profit and
obligations other than the contribution payable to
Loss Account for a period represents the movement
the respective funds.
in cumulative expense recognized as at the beginning
(ii) Defined Benefit Plan and end of that period and is recognized in employee
he Bank operates a defined benefit scheme for
T benefits expense.
its employees, viz., gratuity scheme. The costs of
R. Share issue expenses
providing benefits under this plan is determined on
the basis of actuarial valuation at each year-end. Share issue expenses are adjusted from Share
Premium Account in terms of Section 52 of the
eparate actuarial valuation is carried out
S Companies Act, 2013 and RBI approval in accordance
for each plan using the projected unit credit with RBI/2006-07/132 DBOD.BP. BC No. 31 /
method. In accordance with the gratuity fund’s 21.04.018/ 2006-07.
rules, actuarial valuation of gratuity liabilities
is calculated based on certain assumptions S. Segment information
regarding rate of interest, salary growth, The disclosure relating to segment information is in
mortality and staff alteration as per projected accordance with AS-17, Segment Reporting and as per
unit credit method. guidelines issued by RBI.
ratuity liability is a defined benefit obligation

G T. Corporate Social Responsibility (CSR)
and is provided for on the basis of an actuarial Expenditure towards CSR, in accordance with
valuation on projected unit credit method made Companies Act, 2013, is recognised in the Profit
at the end of each financial year. Actuarial gains/ and Loss Account.
losses are immediately taken to profit and loss
account and are not deferred.
168
Annual
Report 2022-23

SCHEDULE 18- NOTES TO THE FINANCIAL STATEMENTS

1. Regulatory Capital
a) (i) Composition of Regulatory Capital
he Capital adequacy ratio (“CAR”) has been computed as per operating guideline for Small Finance Bank in
T
accordance with RBI Circular No. RBI/2016-17/81DBR. NBD.No.26/16.13.218/2016-17 dated October 6, 2016.The
total Capital Adequacy ratio of the Bank as at March 31, 2023 is 33.72% (March 31, 2022: 37.86%) against the
regulatory requirement of 15.00% as prescribed by RBI.
The following table sets forth, for the year indicated, computation of capital adequacy as per operating guidelines.
Particulars As at As at
Corporate Overview
March 31, 2023 March 31, 2022
i) Common Equity Tier 1 capital (CET 1) (net of deductions, if any) 1,440.64 1,375.45
ii) Additional Tier 1 capital - -
iii) Tier 1 capital (i + ii) 1,440.64 1,375.45
iv) Tier 2 capital 134.64 136.37
v) Total capital (Tier 1+Tier 2) 1,575.28 1,511.81
vi) Total Risk Weighted Assets (RWAs) 4,671.46 3,992.83
Statutory Reports
vii) CET 1 Ratio (CET 1 as a percentage of RWAs) 30.84% 34.44%
viii) Tier 1 Ratio (Tier 1 capital as a percentage of RWAs) 30.84% 34.44%
ix) Tier 2 Ratio (Tier 2 capital as a percentage of RWAs) 2.88% 3.42%
x) apital to Risk Weighted Assets Ratio (CRAR) (Total Capital as a
C 33.72% 37.86%
percentage of RWAs)
xi) Leverage Ratio 14.74% 17.03%
xii) Percentage of the shareholding of
a) Government of India NA NA
b) State Government of India NA NA
c) Sponsor Bank NA NA
xiii) Amount of paid-up equity capital raised during the year 0.00 0.00
xiv) Amount of non-equity Tier 1 capital raised during the year 0.00 0.00
xv) Amount of Additional Tier 2 capital raised during the year 0.00 0.00
ubordinated debt (Tier 2 capital) outstanding as at March 31, 2023 is ` 100.00 crores (March 31, 2022 :
S
` 100.00 crores).
urther as per the RBI’s directions given in the circular DBR.NBD.No. 4502/16.13.218/2017-18, dated November 8,
F
2017, no separate risk charge has been calculated for Market Risk and Operational Risk for capital ratios.
In accordance with the RBI guidelines, small finance banks are required to make Pillar 3 disclosure under Basel II
regulation. Also, disclosure for Net Stable Funding Ratio (NSFR) is made in accordance with Basel III regulations.
These disclosures are available on the Bank’s website at the following link : https://www.suryodaybank.com/
regulatory-disclosure. The above disclosures have not been subjected to audit by the statutory auditors of the Bank.
a) (ii) Capital Infusion

uring the year ended March 31, 2023, the Bank has not issued equity shares (March 31, 2022 : 27,923) having face
D
value of ` 10 each.
169

Details of movement in the paid up equity share capital are as below:
Particulars March 31, 2023 March 31, 2022

Equity shares (` in crores) Equity shares (` in crores)
(Number) (Number)
Equity shares at the beginning of the year 106,158,749 106.16 106,130,826 106.13
Addition pursuant to stock options exercised - - 27,923 0.03
Addition pursuant to equity shares issued - - - -
during the year
Equity shares outstanding at the end of the year 106,158,749 106.16 106,158,749 106.16
b) Draw Down from Reserves

Share Premium
During the year ended March 31, 2023, the Bank has drawn down ` 0.61 crore (March 31, 2022: ` Nil) from shares
premium account being the expenditure in connection with initial public offer of shares.
c) Appropriation to Reserves
i) Statutory Reserve
The Bank has made an appropriation of ` 19.42 crores (March 31, 2022: ` Nil) out of profits for the year ended
March 31, 2023 to Statutory Reserve pursuant to the requirements of section 17(1) and section 11(2)(b)(ii) of
Banking Regulation Act, 1949 and RBI guidelines dated September 23, 2000.
ii) Capital Reserve

uring the year ended March 31, 2023, the Bank has not appropriated (net of taxes and statutory reserves) (March 31,
D
2022: ` 0.16 crore) from profit and loss account to capital reserves being the profit from sale of investments under
HTM category as per the RBI guidelines.
iii) Investment Fluctuation Reserve

uring the year ended March 31, 2023, the Bank has appropriated ` 18.84 crores (March 31, 2022: ` Nil) from Profit
D
and Loss Account to Investment Fluctuation Reserve as per RBI guidelines.
d) Proposed dividend
The Board of Directors of the Bank has not proposed any dividend for the year ended March 31, 2023 (March 31, 2022: ` Nil).
170
2. Asset Liability Management
a) Maturity pattern of certain items of assets and liabilities
(` in Crores)
Particulars Day - 1 2-7 8-14 15-30 31 Days More than Over 3 Over 6 Over 1 Over 3 Over Total
Days Days Days and upto 2 months and Months and Months and Year and Years and 5 years
2 months upto 3 months upto 6 months upto 1 year upto 3 years upto 5 years
Deposits 98.41 151.81 475.54 201.14 235.82 151.18 381.48 307.41 2,537.21 622.13 4.59 5,166.72
Advances 0.96 82.36 100.29 55.24 237.43 250.46 747.88 1,370.75 2,117.99 249.89 801.80 6,015.05
Investments 1,594.13 27.46 83.77 34.40 53.81 13.16 25.43 34.38 476.76 225.28 1.61 2,570.19
Borrowings - 370.21 8.37 10.50 43.75 30.00 138.50 233.88 1,583.20 347.00 - 2,765.41
Foreign currency assets - - - - - - - - - - - -
Foreign currency liabilities - - - - - - - - - - - -
(` in Crores)
Particulars Day - 1 2-7 8-14 15-30 31 Days More than Over 3 Over 6 Over 1 Over 3 Over Total
Days Days Days and upto 2 months and Months and Months and Year and Years and 5 years
2 months upto 3 months upto 6 months upto 1 year upto 3 years upto 5 years
Deposits 39.70 93.45 68.36 68.75 84.13 226.56 579.46 539.73 1,522.42 627.11 4.21 3,853.88
Advances 11.17 64.47 64.29 61.48 231.00 283.33 609.72 1,087.88 1,420.85 30.09 886.60 4,750.88
Investments 1,362.11 13.46 7.34 23.14 56.97 25.02 62.48 71.28 328.95 105.27 1.66 2,057.68
Borrowings - - 1.19 39.25 16.19 14.52 151.08 294.81 1,485.30 449.00 100.00 2,551.34
Foreign currency assets - - - - - - - - - - - -
Foreign currency liabilities - - - - - - - - - - - -
lassification of assets and liabilities under the different maturity buckets is based on the same estimates and assumptions as used by the Bank for compiling the
C
return submitted to the RBI.
Report
Annual
171
2022-23
Financial Statements Statutory Reports Corporate Overview

b) Liquidity Coverage Ratio (LCR)
172
i) Quantitative disclosure on Liquidity Coverage Ratio (LCR) for year ended March 31, 2023:
(` in Crores)
Particulars Quarter Quarter ended Quarter ended Quarter
ended March 31, 2023 December 31, 2022 September 30, 2022 ended June 30, 2022
Total Total Total Total Total Total Total Total
unweighted weighted unweighted weighted unweighted weighted unweighted weighted
value value value value value value value value
(average) (average) (average) (average) (average) (average) (average) (average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets (HQLA) 0.00 1,554.11 0.00 1,456.96 0.00 1,655.46 0.00 1,960.72
Cash Outflows
2 Retail deposits and deposits from small 2,756.11 275.61 2,350.18 235.02 2,355.42 235.54 2,260.93 226.09
business customers, of which:

(i) Stable deposits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Less stable deposits 2,756.11 275.61 2,350.18 235.02 2,355.42 235.54 2,260.93 226.09
3 Unsecured wholesale funding, of which: 870.91 602.67 858.14 624.93 840.01 590.10 891.79 643.38
(i) Operational deposits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(all counterparties)
(ii) Non-operational deposits 306.65 38.41 268.81 35.60 294.29 44.38 286.93 38.52
(iii) Unsecured debt 564.26 564.26 589.33 589.33 545.71 545.71 604.86 604.86
4 Secured wholesale funding - 71.18 - 40.55 - 37.52 - 32.11
5 Additional requirements, of which 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(i) Outflows related to derivative 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
exposures and other
collateral requirement
(ii) Outflows related to loss of funding 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
on debt products
(iii) Credit and liquidity facilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6 Other contractual funding obligation 424.27 285.50 399.01 318.36 304.11 227.75 227.49 125.89
7 Other contingent funding obligations 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8 Total cash outflows - 1,234.97 - 1,218.86 - 1,090.90 - 1,027.48
Cash Inflows
9 Secured lending (e.g. reverse repo) 4.70 0.00 0.76 0.00 13.30 0.00 2.00 0.00
10 Inflows from fully performing 279.34 154.09 277.36 152.52 320.97 179.72 237.99 203.18
exposures
11 Other cash inflows 176.69 141.45 194.67 97.34 190.06 95.03 125.81 81.77
12 Total cash inflows 460.72 295.54 472.80 249.86 524.32 274.74 365.79 284.95
13 Total HQLA 0.00 1,554.11 0.00 1,456.96 0.00 1,655.46 1,960.72
14 Total Net Cash Outflows 0.00 992.53 0.00 969.00 0.00 816.16 742.53
15 Liquidity Coverage Ratio (%) 0.00 156.58% 0.00 150.36% 0.00 202.84% 264.06%
i) Quantitative disclosure on Liquidity Coverage Ratio (LCR) for year ended March 31, 2022:
(` in Crores)
Particulars Quarter Quarter ended Quarter ended Quarter
ended March 31, 2022 December 31, 2021 September 30, 2021 ended June 30, 2021
Total Total Total Total Total Total Total Total
unweighted weighted unweighted weighted unweighted weighted unweighted weighted
value value value value value value value value
(average) (average) (average) (average) (average) (average) (average) (average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets (HQLA) 1,289.29 1,532.52 1,875.43 2,141.95
Cash Outflows
2 Retail deposits and deposits from small 2,189.86 218.99 2,063.74 206.37 2,025.15 202.51 1,881.78 188.18
business customers, of which:
(i) Stable deposits - - - - - - - -
(ii) Less stable deposits 2,189.86 218.99 2,063.74 206.37 2,025.15 202.51 1,881.78 188.18
3 Unsecured wholesale funding, of which: 725.24 482.09 780.42 566.40 799.10 594.15 968.46 761.40
(i) Operational deposits - - - - - - - -
(ii) Non-operational deposits 278.34 35.19 248.59 34.57 241.71 36.76 247.85 40.79
(iii) Unsecured debt 446.90 446.90 531.83 531.83 557.39 557.39 720.61 720.61
4 Secured wholesale funding 31.69 32.85 63.43 52.56
5 Additional requirements, of which - - - - - - - -
(i) Outflows related to derivative exposures - - - - - - - -
and other collateral requirement
(ii) Outflows related to loss of funding - - - - - - - -
on debt products
(iii) Credit and liquidity facilities - - - - - - - -
6 Other contractual funding obligation 269.04 159.41 319.89 199.28 414.55 220.78 440.70 156.72
7 Other contingent funding obligations - - - - - - - -
8 Total cash outflows 892.18 1,004.90 1,080.87 1,158.86
Cash Inflows
9 Secured lending (e.g. reverse repo) 274.34 - 136.96 - 310.48 - 583.66 -
10 Inflows from fully performing exposures 323.71 191.29 349.10 216.30 315.40 199.57 393.48 271.07
11 Other cash inflows 163.19 81.60 202.73 101.36 162.24 81.12 136.68 68.34
12 Total cash inflows 761.24 272.89 688.79 317.66 788.12 280.69 1,113.82 339.41
13 Total HQLA 1,289.29 1,532.52 1,875.43 2,141.95

14 Total Net Cash Outflows 619.29 687.24 800.18 819.44
Report
Annual
15 Liquidity Coverage Ratio (%) 208.19% 223.00% 234.38% 261.39%
173
2022-23


ii) Qualitative information on Liquidity Coverage Ratio (LCR) is given below:

The objective of LCR is to ensure that the Bank maintains an adequate stock of unencumbered High Quality Liquid Assets
(HQLA) that can be converted into cash to meet its liquidity needs for a 30-day period under a significantly severe liquidity
stress scenario. At a minimum, the stock of liquid assets should enable the Bank to survive until day 30 of the stress
scenario, by which time it is assumed that appropriate corrective actions can be taken.
The LCR is calculated by dividing the amount of High Quality Liquid unencumbered Assets (HQLA) by the expected
net cash outflows over a stressed 30 day period as per the RBI Guidelines. Minimum LCR requirement for small
finance banks is 100%.
HQLA comprises of cash in hand, excess CRR, excess SLR/Non SLR securities, maximum liquidity facility allowed by RBI
under marginal standing facility (MSF) and Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR).
The Asset Liability Committee (ALCO) governs the Liquidity Risk management of the Bank. The liquidity profile of the
Bank is monitored and measured by the Risk Management Department, which reviews liquidity under different business
conditions and places the same before the ALCO.
The net cash outflows are calculated by applying RBI prescribed outflow factors to the various categories of liabilities
(deposits, borrowings), as well as to undrawn commitments and other miscellaneous liabilities, partially offset by
expected inflows from assets maturing within 30 days.
The average LCR for the quarter ended March 31, 2023 was at 156.58% as against 208.19% for the quarter ended
March 31, 2022, and well above the present prescribed minimum requirement of 100%. The average HQLA for the quarter
ended March 31, 2023 was ` 1554.11 crores, as against was ` 1289.29 crores for the quarter ended March 31, 2022.
174
3. Investments
a) Composition of Investment Portfolio as at March 31, 2023
(` in Crores)
Particulars Investments in India Investments outside India Total
Investments
Government Other Shares Debentures Subsidiaries Others Total Government Subsidiaries Others Total
Securities Approved and Bonds and/or joint investments Securities and/or joint investments
Securities ventures in India ventures outside India
Held to Maturity
Gross 795.71 - - - - - 795.71 - - - - 795.71
Less: Provision for non - - - - - - - - - - - -
performing investments (NPI)
Net 795.71 - - - - - 795.71 - - - - 795.71
Available for Sale

Gross 1,667.71 - 0.77 20.18 - 98.66 1,787.31 - - - - 1,787.31
Less: Provision for 12.68 - - 0.15 - - 12.83 - - - - 12.83
depreciation and NPI
Net 1,655.03 - 0.77 20.03 - 98.66 1,774.49 - - - - 1,774.49
Held for Trading
Gross - - - - - - - - - - - -
Less: Provision for - - - - - - - - - - - -
Net - - - - - - - - - - - -
Total Investments 2,463.41 - 0.77 20.18 - 98.66 2,583.02 - - - - 2,583.02
performing investments
Less: Provision for 12.68 - - 0.15 - - 12.83 - - - - 12.83
depreciation and non
Net 2,450.73 - 0.77 20.03 - 98.66 2,570.19 - - - - 2,570.19
Report
Annual
175
2022-23

Composition of Investment Portfolio as at March 31, 2022
176
(` in Crores)
Particulars Investments in India Investments outside India Total
Government Other Shares Debentures Subsidiaries Others Total Government Subsidiaries Others Total Investments
Securities Approved and Bonds and/or joint investments Securities and/or joint investments
Securities ventures in India ventures outside India
Held to Maturity
Gross 729.43 - - - - - 729.43 - - - - 729.43
non performing
investments (NPI)
Net 729.43 - - - - - 729.43 - - - - 729.43
Available for Sale
Gross 1,265.05 - 0.77 40.23 - 49.57 1,355.61 - - - - 1,355.61

Less: Provision for 27.37 - - - - - 27.37 - - - - 27.37
Net 1,237.68 - 0.77 40.23 - 49.57 1,328.24 - - - - 1,328.24
Held for Trading
Gross - - - - - - - - - - - -
Net - - - - - - - - - - - -
Total Investments 1,994.48 - 0.77 40.23 - 49.57 2,085.05 - - - - 2,085.05
performing investments
Less: Provision for 27.37 - - - - - 27.37 - - - - 27.37
depreciation and non
Net 1,967.11 - 0.77 40.23 - 49.57 2,057.68 - - - - 2,057.68
Annual
Report 2022-23

b) Movement of Provisions for Depreciation and Investment Fluctuation Reserve

(` in Crores)
March 31, 2023 March 31, 2022
i) Movement of provisions held towards depreciation on investments:
a) Opening balance 27.37 18.99
b) Add: Provision made during the year - 8.38
c) Less: Write off / Write back of excess provisions during the year 14.54 -
d) Closing balance 12.83 27.37
ii) Movement of Investment Fluctuation Reserve
Corporate Overview
a) Opening balance 16.90 16.90
b) Add: Amount transferred during the year 18.84 -
c) Less: Drawdown - -
d) Closing balance 35.75 16.90
iii) Closing balance in IFR as a percentage of closing balance of investments #
2% 1%
in AFS and HFT/Current category
#Carrying value less net depreciation (ignoring net appreciation) i.e. the net amount reflected in the balance sheet.
Statutory Reports
c) Sale and Transfer to /from HTM Category
The Bank has not sold or transferred securities to or from HTM category exceeding 5% of the book value of investments
held in HTM category at the beginning of year ended March 31, 2023 and March 31, 2022 respectively. The 5% threshold
referred to above does not include:
i) he one-time transfer of securities to/from HTM category with the approval of Board of Directors undertaken by
T
banks at the beginning of the accounting year.
ii) irect sales from HTM for bringing down SLR holdings in HTM category consequent to a downward revision in SLR
D
requirements by RBI.
iii) ales to the Reserve Bank of India under liquidity management operations of RBI like Open Market Operations
S
(OMO) and the Government Securities Acquisition Programme (GSAP).
iv) Repurchase of Government Securities by Government of India from banks under buyback / switch operations.
v) Repurchase of State Development Loans by respective state governments under buyback / switch operations.
vi) Additional shifting of securities explicitly permitted by the Reserve Bank of India.
d) Non-SLR investment portfolio

i) Non-performing non-SLR investments
(` in Crores)
a) Opening balance - -
b) Additions during the year since 1st April - -
c) Reductions during the above period - -
d) Closing balance - -
e) Total provisions held - -
177

ii) Issuer-wise composition of non-SLR investments

Issuer-wise composition of non-SLR investments as at March 31, 2023
(` in Crores)
Issuer Amount Extent Extent of ‘Below Extent Extent of
of private investment of ‘Unrated’ ‘Unlisted’
placement# grade’ securities# securities# securities#*
a) Public sector undertakings - - - - -
b) Financial institutions 20.18 - - - -
c) Banks - - - - -
d) Private corporate - - - - -
e) Subsidiaries / Joint ventures - - - - -
f) Others$ 104.97 0.77 0.77 0.77
g) Provision held towards depreciation (0.52)
Total 124.63 0.77 - 0.77 0.77
Issuer-wise composition of non-SLR investments as at March 31, 2022

(` in Crores)
Issuer Amount Extent Extent of ‘Below Extent Extent of
of private investment of ‘Unrated’ ‘Unlisted’
placement# grade’ securities# securities# securities#*
a) Public sector undertakings - - - - -
b) Financial institutions 20.18 - - - -
c) Banks - - - - -
d) Private corporate 20.05 - - - -
e) Subsidiaries / Joint ventures - - - - -
f) Others 6.32 0.77 0.77 0.77
g) Provision held towards depreciation (0.10)
Total 46.45 0.77 - 0.77 0.77
# Amounts reported under these columns above are not mutually exclusive
* Excludes investments in commercial paper and certificate of deposits
$ Includes Security Receipts [Refer Note - 3(f)]
e) Repo/ Reverse Repo Transactions

The Details relating to repo/reverse repo transactions (in face value terms) during the year ended March 31, 2023
are as follows:
(` in Crores)
Particulars Minimum Maximum Daily average Outstanding
outstanding outstanding outstanding as on
during the year during the year during the year 31 March 2023
i) Securities sold under repo
a) Government securities 19.83 1,542.66 886.18 1,120.00
b) Corporate debt securities - - - -
c) Any other securities - - - -
178
Annual
Report 2022-23

(` in Crores)
ii) Securities purchased under reverse repo
a) Government securities 5.00 1,548.00 45.69 -
The details relating to repo/reverse repo transactions (in face value terms) during the year ended March 31, 2022
Corporate Overview
are as follows:
(` in Crores)
i) Securities sold under repo
a) Government securities 2.92 1,157.21 454.61 750.00
Statutory Reports
ii) Securities purchased under reverse repo
a) Government securities 14.00 956.00 335.09 698.00
f) Details of investment in Security Receipts (SRs)
On December 29, 2022, the Bank signed an agreement with Edelweiss Asset Reconstruction Company (EARC) for sale
of identified stressed loans of the Bank in compliance with RBI guidelines governing the transfer of stressed loans
- Reserve Bank of India (Sale of Loan Exposures) Direction, 2021 (RBI Master Directions) dated September 24, 2021
(updated December 05, 2022).
The Board of Directors, at its meeting held on December 23, 2022, granted approval for conducting the auction based on
the receipt of offer for sale of stressed loans with outstanding value as on November 30, 2022 (being the cut off date as
per agreement entered) of ` 492.05 crores for a purchase consideration of ` 135.10 crores negotiated through bilateral
agreement between the Bank and EARC.
The Bank had outstanding specific provisions against the pool of ` 181.99 crores as on November 30, 2022. Further, the
Bank has also utilised floating provision of ` 91.28 crores against the said transfer in compliance with RBI Master
Directions. The net book value (NBV) of the loan pool transferred in the Bank’s books as on November 30, 2022 was
` 156.63 crores (including utilisation of floating provisions) against a purchase consideration of ` 135.10 crores, under the
15:85 cash and security receipts structure, and the difference of ` 21.53 crores between the net book value and purchase
consideration has been booked as a loss on transfer of stressed assets under Schedule 16 - Operating expenses.
The Bank carries the said SRs in line with aforesaid RBI guidelines. As on March 31, 2023, the outstanding amount of SRs
is ` 98.66 crores.
179

4. Asset quality
a) Classification of advances and provisions held for the year ended March 31, 2023:
(` in Crores)
Particulars Standard Non- Performing Total
Advances Sub - Doubtful Loss Total Non -
standard Performing
Advances
Gross Standard Advances and NPAs
Opening Balance 4,466.41 533.19 64.23 0.00 597.42 5,063.83
Add: Additions during the year 505.20
Less: Reductions during the year# 911.20
Closing balance 5,922.08 144.69 44.10 2.61 191.40 6,113.48
#Reductions in Gross NPAs due to:
i) Upgradation 152.20
ii) Recoveries (excluding recoveries from 54.50
upgraded accounts)
iii) Technical/ Prudential Write-offs 274.60
iv) Write-offs other than those under (iii) above -
v) Transfer of stressed loans 429.90
Provisions (excluding Floating Provisions)
Opening balance of provisions held 19.46 176.97 45.81 0.00 222.78 242.25
Add: Fresh provisions made during the year 377.64
Less: Excess provision reversed/ Write-off loans/ 519.83
Transfer of stressed loans (Refer note below)
Closing balance of provisions held 23.38 74.89 3.55 2.16 80.60 103.97
Net NPAs*
Opening Balance 356.22 18.41 - 283.37
Add: Fresh additions during the year 109.72
Less: Reductions during the year 300.11
Closing Balance 69.79 40.56 0.46 92.97 92.97
Floating Provisions
Opening Balance 91.28
Add: Additional provisions made during the year 17.84
Less: Amount drawn down during the year@ (91.28)
Closing balance of floating provisions 17.84
Technical write-offs and the
recoveries made thereon
Opening balance of Technical/ Prudential 341.86
written-off accounts
Add: Technical/ Prudential write-offs during the year 274.60
Less: Written off portfolio sold to ARC 62.25
Less: Recoveries made from previously technical/ 35.28
prudential written-off accounts during the year
Closing balance 518.93
* For calculating Net NPA for total non performing assets column Floating provision is reduced.
The Bank has utilised floating provision of ` 91.28 crores against the sale of stressed loans to Edelweiss Asset Reconstruction
@
Company (EARC) in accordance with RBI Master Direction on Transfer of Loan Exposures dated September 24, 2021 [Refer note - 3(f)]
180
Annual
Report 2022-23

Classification of advances and provisions held for the year ended March 31, 2022:
(` in Crores)
Particulars Standard Non- Performing Total
Advances Sub - Doubtful Loss Total Non -
standard Performing
Advances
Gross Standard Advances and NPAs
Opening Balance 3,791.91 374.66 19.02 - 393.68 4,185.59
Add: Additions during the year 537.26
Less: Reductions during the year* 333.52
Corporate Overview
Closing balance 4,465.78 533.19 64.23 0.00 597.42 5,063.20
*Reductions in Gross NPAs due to:
i) Upgradation 37.88
ii) Recoveries (excluding recoveries from 63.91
upgraded accounts)
iii) Technical/ Prudential Write-offs 231.73
iv) Write-offs other than those under (iii) above -
Statutory Reports
Provisions (excluding Floating Provisions)
Opening balance of provisions held 12.41 99.33 14.95 - 114.28 126.69
Add: Fresh provisions made during the year 365.69
Less: Excess provision reversed/ Write-off loans 257.19
Closing balance of provisions held 19.46 176.96 45.81 0.00 222.78 242.24
Net NPAs*
Opening Balance 275.33 4.07 - 188.12
Add: Fresh additions during the year 171.57
Less: Reductions during the year 76.33
Closing Balance 356.23 18.41 - 283.37 283.37
Floating Provisions
Opening Balance 91.28
Add: Additional provisions made during the year -
Less: Amount drawn down during the year -
Closing balance of floating provisions 91.28
Technical write-offs and the recoveries made
thereon
Opening balance of Technical/ Prudential 125.00
written-off accounts
Add: Technical/ Prudential write-offs 231.73
during the year
Less: Recoveries made from previously technical/ 14.87
prudential written-off accounts during the year
Closing balance 341.86
* For calculating Net NPA for total non performing assets column Floating provision is reduced.
181

Ratios
Ratios (in %) As at As at
March 31, 2023 March 31, 2022
Gross NPA to Gross Advances 3.13% 11.80%
Net NPA to Net Advances 1.55% 5.97%
Provision coverage ratio 51.42% 52.57%
Provision coverage ratio* 86.91% 69.83%
* includes write offs
b) Sector-wise Advances and Gross NPAs

Particulars March 31, 2023
Outstanding total Gross NPAs Percentage of
gross advances gross NPAs to
Total advances
in that sector
i) Priority Sector *
a) Agriculture and allied activities 777.92 16.65 2.14%
b) Advances to industries sector eligible as priority 106.51 0.21 0.19%
sector lending
c) Services 28.00 3.13 11.18%
-Transport operators 7.33 1.46 19.91%
d) Personal loans 1,489.16 80.05 5.38%
Sub total (i) 2,401.60 100.04 4.17%
ii) Non Priority Sector*
a) Agriculture and allied activities 1,950.01 44.92 2.30%
b) Industry - - -
c) Services 360.11 5.22 1.45%
d Personal Loans 1,557.85 41.23 2.65%
Sub total (ii) 3,867.97 91.36 2.36%
Total (i+ii) 6,269.56 191.40 3.05%

Total advances
in that sector
i) Priority Sector *
a) Agriculture and allied activities 269.24 26.06 9.68%
b) Advances to industries sector eligible as priority 30.11 0.45 1.49%
sector lending
c) Services 801.79 147.58 18.41%
d) Personal loans 251.58 4.81 1.91%
Sub total (i) 1,352.72 178.90 13.23%
182
Annual
Report 2022-23


Total advances
in that sector
ii) Non Priority Sector*
a Agriculture and allied activities 1,602.17 155.09 9.68%
b) Industry 15.83 0.23 1.45%
c) Services 1,670.41 200.84 12.02%
Corporate Overview
d) Personal Loans 422.08 62.36 14.77%
Sub total (ii) 3,710.49 418.52 11.28%
Total (i+ii) 5,063.21 597.42 11.80%
* includes adjustment made to gross advances on account of PSLCs bought / sold.
c) Overseas Assets, NPAs and Revenue

The Bank does not hold any overseas assets / NPA as at March 31, 2023 and no overseas operations were undertaken
for the year ended March 31, 2023. Hence revenue from overseas operation is ` Nil (March 31, 2022: ` Nil).
Statutory Reports
d) Resolution of Stressed Assets – Revised Framework
The Bank does not have any account for resolution of stressed Assets (Revised framework) as per the RBI Circular
RBI/2017-18/ 131DBR.No.BP.BC.101/21,04,048/2017-18 Loans as on March 31, 2023 (March 31, 2022 : ` Nil)
e) Divergence in asset classification and provisioning

RBI vide its circular DBR.BP.BC.No.63/21.04.018/2016-17 dated April 18, 2017 and Notification dated April 1, 2019, has
directed banks shall make suitable disclosures, if either or both of the following conditions are satisfied:
(a) t he additional provisioning for non-performing assets (NPAs) assessed by the RBI exceeds 10 per cent of the
reported profit before provisions and contingencies for the reference period, and/ or
(b) t he additional Gross NPAs identified by the RBI exceed 10% of the reported incremental Gross NPAs for the
reference period.
There has been no divergence observed by the RBI for the Financial year 2021-22 in respect of the Bank’s asset
classification and provisioning as per the extant prudential norms on income recognition asset classification and
provisioning (IRACP) which require such disclosures.
f) Disclosure of transfer of loan exposures

Details of loans transferred/acquired during the year ended March 31, 2023 under the RBI Master Direction on Transfer
of Loan Exposures dated September 24, 2021 are given below:
i) During the year ended March 31, 2023, the Bank has not acquired any loans not in default through assignment of loans
ii) uring the year ended March 31, 2023, the Bank has not acquired any stressed loans (Non-performing asset and
D
Special Mention Account)
183

iii) Details of stressed loans transferred during the year ended March 31, 2023 are given below:
` in crores except no. of accounts

Issuer To ARCs To permitted To other
transferees transferees
No. of accounts 296,432 - -
Aggregate principal outstanding of loans transferred1 492.1 - -
Weighted average residual tenor of the loans transferred2 (months) 7.94 - -
Net book value of loans transferred (at the time of transfer)3 156.6 - -
Aggregate consideration 135.1 - -
Additional consideration realized in respect of accounts transferred Nil - -
in earlier years
1. Includes NPA of ` 425.95 crores, written off loans of ` 62.15 crores and other stressed loans of ` 3.95 crores.
2. Excludes written off loans.
3. After considering specific provisions of ` 181.99 crores and floating provision of ` 91.28 crores.
g) Fraud accounts
Number of frauds reported 284 233
Amount involved in fraud 1.78 1.18
Amount of provision made for such frauds 1.10 0.82
Amount of unamortised provision debited from ‘other reserves’ as at the - -
end of the year
h) Resolution Framework for COVID-19-related Stress

Details of resolution plans implemented under the RBI Resolution Framework for COVID-19 related stress as per
RBI circular dated 6th August, 2020 (Resolution Framework 1.0) and 5th May 2021 (Resolution Framework 2.0) as at
31st March 2022 are given below:
Type of Borrower Exposure to Of Of (A) amount Of (A) amount Exposure to

accounts classified (A), aggregate written off/ paid by the accounts
as Standard debt that Sold to ARC borrowers classified as
consequent to slipped into during the during the Standard
implementation of NPA during the half-year ended half-year ended consequent to
resolution plan – half-year ended March 31, 2023# March 31, 2023 implementation of
Position as at the March 31, 2023 resolution plan –
end of the previous Position as at the
half year i.e. end of half year
September 30, 2022 (A) i.e. March 31, 2023
Personal Loans 9.75 0.37 - 1.58 7.80
Corporate persons - - - - -
Of which, MSMEs - - - - -
Others 123.54 18.70 61.22* 28.74 14.88
Total 133.29 19.07 61.22 30.32 22.68
The Bank has sold its stressed assets to Edelweiss Asset Reconstruction Company (EARC) in December 2022 in line with RBI
#
Master Directions.
* Includes ` 61.22 crores sold to EARC and ` 0.0030 crore pertains to written off accounts during the half year ended March 31, 2023.
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5. Exposure
a) Exposure to real estate sector
(` in Crores)
Category March 31, 2023 March 31, 2022
i) Direct exposure
a) Residential Mortgages-
ending fully secured by mortgages on residential property that is or
L 658.57 331.64
will be occupied by the borrower or that is rented.
-of which housing loans eligible for inclusion in priority sector advances 391.53 268.34
b) Commercial real estate -
Corporate Overview
ending secured by mortgages on commercial real estate (office
L 11.42 8.73
buildings, retail space, multipurpose commercial premises,
multifamily residential buildings, multi tenanted commercial
premises, industrial or warehouse space, hotels, land acquisition,
development and construction, etc.). Exposure would also include
non-fund based (NFB) limits.
c) Investments in mortgage backed securities (MBS) and other securitised - -
i) Residential - -
Statutory Reports
ii) Commercial Real Estate -
Total (i) 669.99 340.37
ii) Indirect exposure
Fund based and non-fund based exposures on National Housing Bank 83.21 18.95
and Housing Finance Companies (HFCs).
Total (ii) 83.21 18.95
Total Exposure to Real Estate Sector (i+ii) 753.19 359.32
b) Exposure to capital market
The Bank does not have capital market exposure as at March 31, 2023 (March 31, 2022 : ` Nil).
c) Risk category- wise country exposure

The Bank’s exposures are concentrated in India, hence no provision is maintained with regard to country risk exposure as
at March 31, 2023 (March 31, 2022 : ` Nil)
d) Unsecured Advances
Advances for which intangible collaterals such as rights, licenses, authority etc. are charged in favour of the Bank in
respect of projects financed by the Bank, are reckoned as unsecured advances under Schedule 9 of the Balance Sheet in
line with extant RBI guidelines. There are no such advances given during the year and outstanding as at March 31, 2023.
(March 31, 2022: ` Nil)
(` in Crores)
Total unsecured advances of the bank 4,216.34 3,520.84
Out of the above, amount of advances for which intangible securities such as - -
charge over the rights, licenses, authority, etc. have been taken
Estimated value of such intangible securities - -
185

e) Factoring exposures
The factoring exposure of the Bank as at March 31, 2023 is ` Nil (March 31, 2022 : ` Nil)
f) Intra Group Exposure

The Bank does not have any group entities, hence no intra group exposure as at March 31, 2023 (March 31, 2022 : ` Nil).
g) Unhedged foreign currency exposure

In accordance with the RBI guidelines on Banks’ exposures to entities with Unhedged Foreign Currency Exposure
(‘UFCE’), the Bank has put in place a mechanism to seek information from its borrowers and to evaluate the currency
induced credit risk. In the case of listed entities, the Bank obtains information relating to unhedged positions based on
the latest available audited / reviewed financial statements; whilst in the case of unlisted / private companies, the Bank
obtains the aforesaid information based on the latest available audited financial statements (not exceeding a financial
year) so as to estimate the extent of likely loss and to provide for incremental capital or to recognise incremental
provision in accordance with the aforesaid guidelines. Further, as per the above-mentioned guidelines, the Bank obtains
audited and certified UFCE information from the statutory auditors of the borrowers, wherever feasible, on an annual
basis. In the case of smaller entities i.e. entities with exposure to banking industry up to 50 crore, the Bank recognises
an incremental provision at 10 basis points on all such exposures.
In accordance with RBI guidelines, as at March 31, 2023 the Bank holds UFCE provisions of ` 4.48 crores (March 31,
2021: ` 4.87 crores) maintains capital of ` 80.72 crore (March 31, 2022: ` 105.54 crore) in respect of the unhedged
foreign currency exposure of its customers.
6. Concentration of deposits, advances, exposures and NPAs

a) Concentration of Deposits
(` in Crores)
Total deposits of twenty largest depositors 1,255.54 907.06
Percentage of deposits of twenty largest depositors to total deposits of the bank 24.30% 23.56%
b) Concentration of Advances
(` in Crores)
Total advances to twenty largest borrowers 590.47 342.14
Percentage of advances of twenty largest borrowers to total advances of the bank 9.66% 6.77%
c) Concentration of Exposures
(` in Crores)
Total exposure to twenty largest borrowers / customers* 665.83 378.34
Percentage of exposure of twenty largest borrowers / customers to total 10.57% 7.38%
exposure of the bank on borrowers / customers
* Exposures computed as per applicable RBI regulation.
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d Concentration of NPAs
(` in Crores)
Total Exposure to the top twenty NPA accounts 10.38 24.30
Percentage of exposures to the twenty largest NPA exposure to total Gross NPAs. 5.42% 4.07%
7. Derivatives
During the year ended March 31, 2023 the Bank has not undertaken any derivative transaction and there is no outstanding
position as at the year end (March 31, 2022 : ` Nil). Hence, disclosure related to Forward Rate Agreement / Interest Rate
Swap/ Credit default Swap and Exchange Traded Interest Rate Derivatives has not been provided.
Corporate Overview
8. Disclosure relating to securitisation
The Bank has not originated any securitisation transaction during the year ended March 31, 2023 and March 31,2022.
9. Off balance sheet SPVs sponsored

There are no off balance sheet SPVs sponsored by the Bank, which are required to be consolidated as per accounting norms.
10. Transfers to Depositor Education and Awareness Fund (DEA Fund)
Statutory Reports
The Depositor Education and Awareness Fund Scheme, 2014 applies when amount to the credit of any account in
India with any bank has not been operated upon for a period of ten years or any deposit or any amount is remaining
unclaimed for more than ten years to be credited to the DEA Fund. However, ten years have not been elapsed since
the commencement of operations of the Bank, the Bank is not required to transfer any sum to DEA Fund as on
31 March 2023 (March 31, 2022: ` Nil).
11. Disclosure of complaints

a) Summary information on complaints received by the bank from customers and from the Offices of Ombudsman.
Complaints received by the bank from its customers
1. Number of complaints pending at beginning of the year 91 42
2. Number of complaints received during the year 13,545 6,596
3. Number of complaints disposed during the year 13,006 6,547
3.1 Of which, number of complaints rejected by the Bank - -
4. Number of complaints pending at the end of the year 630 91
Maintainable complaints received by the bank from Office of Ombudsman
5. Number of maintainable complaints received by the bank from 105 29
Office of Ombudsman
5.1 O
f 5, number of complaints resolved in favour of the Bank by 95 26
Office of Ombudsman
5.2 O
f 5, number of complaints resolved through conciliation/ 10 3
mediation/advisories issued by Office of Ombudsman
5.3 O
f 5, number of complaints resolved after passing of Awards by - -
Office of Ombudsman against the bank
6. Number of Awards unimplemented within the stipulated time (other than - -
those appealed)
187

b) Top five grounds of complaints received by the Bank from customers

Grounds of complaints, (i.e. Number of Number of % increase/ Number of Of 5, number
complaints relating to) complaints complaints decrease in complaints of complaints
pending at the received the number pending at pending
beginning of during the of complaints the end of beyond
the year year received over the year 30 days
the previous year
1 2 3 4 5 6
March 31, 2023
ATM/ Debit Cards 9 3,541 348% 451 -
Loans and advances 4 224 22% 18 -
Net Banking / Mobile Banking/ Point of Sales 52 4,793 17% 111 -
Account opening/ Difficulty in 2 4,445 229% 4 -
operation of accounts
Staff related 2 152 11% - -
Others 22 390 1400% 46 -
Total 91 13,545 105% 630 -
March 31, 2022
ATM/ Debit Cards 8 791 109% 9 -
Loans and advances 1 184 (40)% 4 -
Net Banking / Mobile Banking/ Point of Sales 16 4,108 327% 52 1
Account opening/ Difficulty in - 1,350 (13)% 2 -
operation of accounts
Staff related 6 137 (59)% 2 2
Others 11 26 117% 22 -
Total 42 6,596 164% 91 3
12. Disclosure of penalties imposed by the Reserve Bank of India

During the year ended March 31, 2023, the Reserve Bank of India (RBI), in exercise of powers vested in RBI under the
provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949, has imposed a monetary
penalty of ` 0.58 crore on the bank for non-compliance with the ‘Reserve Bank of India (Frauds classification and reporting
by commercial banks and select FIs) directions 2016’ due to delayed reporting of frauds and failure to report fraud
complaints to the police authorities in certain cases pertaining to periods up to FY 2019 (March 31, 2022: Nil ).
13. Disclosures on remuneration

A) Qualitative Disclosures
(a) Information relating to the composition and mandate of the Nomination and Remuneration Committee:
The Nomination and Remuneration Committee (NRC) of the Board is the main body overseeing remuneration. As on
March 31, 2023, the NRC had six members of which five are Independent Directors. The functions of the Committee
include formulating criteria to determine independence of directors, identifying persons for appointment as directors
on the Board of the Bank, devising a policy on board diversity, formulating criteria for evaluation of performance of
the Board, its Committees and individual directors, recommending remuneration of senior management personnel,
administering, monitoring and formulating detailed terms and conditions of the Employees’ Stock Option Scheme
of the Bank, recommending to the Board policy on succession planning for the Board and senior management and
overseeing and reviewing the succession plans from time to time.
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The Composition of NRC committee as on March 31,2023 is as follows:

1. Mr. Mrutunjay Sahoo, Independent Director (Chairman)
2. Mr. R. Ramachandran, Independent Director
3. Mr. Arun Diaz, Independent Director
4. Mr. K P Nair, Independent Director
5. Ms. Mandeep Maitra, Independent Director
6. Mr. Ranjit Shah, Investor Director
External consultants whose advice has been sought, the body by which they were commissioned, and in what
Corporate Overview
areas of the remuneration process
Not Applicable
Scope of the Bank’s remuneration policy (e.g. by regions, business lines), including the extent to which it is
applicable to foreign subsidiaries and branches
(a) T
he Policy on appointment and remuneration of Directors, Key Managerial personnel and senior management
employees was approved by the Board on January 23, 2017 and reviewed periodically. It was modified in
Statutory Reports
October 2020 to exclude the remuneration aspects in view of new Compensation Policy being formulated and
approved by the Board.
(b) T
he Bank’s new Compensation Policy (formulated in accordance with RBI Guidelines on Compensation of
Whole Time Directors, Chief Executive Officers, Material Risk Takers and Risk Control & Compliance Staff), was
approved by the Board in October 2020 and is annually reviewed.
(c) T
he Employee Policies Manual of the Bank was approved by the Board on January 23, 2017 and is reviewed
periodically . It covers compensation policy for all other employees of the Bank.
Type of employees covered and number of such employees by the Compensation Policy and the Employee
Policies Manual.
ll permanent employees of the Bank are covered. The total number of permanent employees of the Bank at
A
March 31, 2023 was 6025.
(b) Information relating to the design and structure of remuneration processes and the key features and objectives of
remuneration policy:
Key features and objectives of Compensation policy: The Bank, under the guidance of the NRC and the Board,
follows remuneration practices that are intended to drive meritocracy and performance based on a prudent risk
management framework and in line with the RBI guidelines.The NRC has oversight over compensation to senior
management personnel and also provides overall guidance to the compensation paid to other employees.While the
Bank seeks to achieve a mix of fixed and variable (cash and non-cash) remuneration for employees covered under
the new Compensation Policy, for all other employees, it has predominantly a fixed remuneration structure with
no guaranteed bonuses. Also, the remuneration of employees in financial and risk control functions is not linked
to business outcomes and solely depends on their performance. Further, the Bank has an Employee Stock Option
Scheme for eligible employees aimed at aligning compensation to long term performance through stock options
that vest over a period of time.
189

Effective governance of compensation: The NRC has oversight over compensation to senior management
personnel and also provides overall guidance to the compensation paid to other employees.
Alignment of compensation philosophy with prudent risk taking: While the Bank seeks to achieve a mix of fixed
and variable (cash and non-cash) remuneration for employees covered under the new Compensation Policy, for
all other employees, it has predominantly a fixed remuneration structure with no guaranteed bonuses. Also, the
remuneration of employees in financial and risk control functions is not linked to business outcomes and solely
depends on their performance. Further, the Bank has an Employee Stock Option Scheme for eligible employees
aimed at aligning compensation to long term performance through stock options that vest over a period of time.
Whether the remuneration committee reviewed the firm’s remuneration policy during the past year, and if so, an
overview of any changes that were made: Yes; the Compensation Policy was modified and approved during the
period . The key changes included roles identified for Material Risk Takers and Risk Control Staff and change in cash
variable slabs and related deferment criterion.
Discussion of how the Bank ensures that risk and compliance employees are remunerated independently of the
businesses they oversee: The remuneration of employees in control functions such as Risk and Compliance
depends solely on their performance and is not linked to any business outcomes.
(c) D
escription of the ways in which current and future risks are taken into account in the remuneration processes
including the nature and type of the key measures used to take account of these risks:
Overview of the key risks that the Bank takes into account when implementing remuneration measures: The Board
approves the overall risk management policy including risk framework, limits, etc. The Bank conducts all its business
activities within this framework. The NRC while assessing the performance of the Bank and senior management,
shall consider adherence to the policies and accordingly make its recommendations to the Board.The evaluation
process shall incorporate both qualitative and quantitative aspects including asset quality, provisioning, increase
in stable funding sources, refinement/improvement of the risk management framework, effective management
of stakeholder relationships and mentoring key members of the top and senior management.In order to ensure
alignment of remuneration with prudent practices, the NRC takes into account adherence to the risk framework in
addition to business performance.
Overview of the nature and type of key measures used to take account of these risks, including risk difficult to
measure: The evaluation process shall incorporate both qualitative and quantitative aspects including asset quality,
provisioning, increase in stable funding sources, refinement/improvement of the risk management framework,
effective management of stakeholder relationships and mentoring key members of the top and senior management.
Discussion of the ways in which these measures affect remuneration: In order to ensure alignment of
remuneration with prudent practices, the NRC takes into account adherence to the risk framework in addition to
business performance.
Discussion of how the nature and type of these measures have changed over the past year and reasons for the
changes, as well as the impact of changes on remuneration: With the introduction of the new Compensation Policy,
the compensation structure of employees covered therein has undergone a change resulting in a potential increase
in overall remuneration.
190
Annual
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(d) D
escription of the ways in which the bank seeks to link performance during a performance measurement period
with levels of remuneration:
Overview of main performance metrics for the Bank, top level business lines and individuals: The main performance
metrics include profitability, business growth, asset quality, compliance, and customer service.The assessment of
employees shall be based on their performance with respect to their result areas and shall include the metrics
mentioned above.
Discussion of how amounts of individual remuneration are linked to the Bank-wide and individual performance:
The assessment of employees shall be based on their performance with respect to their result areas and shall
include the metrics mentioned above.
Corporate Overview
Discussion of the measures the Bank will in general implement to adjust remuneration in the event that performance
metrics are weak, including the Bank’s criteria for determining ‘weak’ performance metrics: In case such an event
should occur, the Board/NRC shall review and provide overall guidance on the corrective measures to be taken.
(e) A
discussion of the bank’s policy on deferral and vesting of variable remuneration and a discussion of the bank’s
policy and criteria for adjusting deferred remuneration before vesting and after vesting:
Discussion of the Bank’s policy on deferral and vesting of variable remuneration and, if the fraction of variable
remuneration that is deferred differs across employees or groups of employees, a description of the factors
that determine the fraction and their relative importance: Under the new Compensation Policy, the cash variable
Statutory Reports
component will be deferred equally over 2-3 years and the non-cash variable component (employee stock options)
will be deferred over the vesting period as per the extant ESOP Scheme. In case of other employees, where cash
variable is not applicable and in case of employees being granted ESOPs, they will be deferred over the vesting
period as per the extant ESOP Scheme. In the case of employees covered under the Compensation Policy, all
deferred variable compensation would be subjected to malus/clawback arrangements as provided in the RBI
guidelines and this would be administered by the NRC.
Discussion of the Bank’s policy and criteria for adjusting deferred remuneration before vesting and (if permitted
by national law) after vesting through claw back arrangements: In the case of employees covered under the
Compensation Policy, all deferred variable compensation would be subjected to malus/clawback arrangements as
provided in the RBI guidelines and this would be administered by the NRC.
(f) escription of the different forms of variable remuneration that the Bank utilises and the rationale for using these
D
different forms:
As per the Compensation Policy, the variable remuneration will comprise of cash and non-cash components.
Overview of the forms of variable remuneration offered. A discussion of the use of different forms of variable
remuneration and, if the mix of different forms of variable remuneration differs across employees or group of
employees, a description of the factors that determine the mix and their relative importance: As per the new
Compensation Policy, only the employees falling under the categories of Material Risk Takers (MRTs), Risk
Control & Compliance Staff (RCS) eligible for variable remuneration which could be in cash or non- cash forms.
The compensation of the rest of the employees is covered under the Employee Policy Manual of the Bank.
191

B) Quantitative Disclosures
(` in Crores)
Subject March 31, 2023* March 31, 2022
(g) Number of meetings held by the NRC during the financial year Number Number
and remuneration paid to its members of meetings : 6 of meetings : 13
Remuneration paid Remuneration
: ` 0.087 crore paid : ` 0.13 crore
(h) (i) Number of employees having received a variable remuneration 4 (Only Non-Cash None
award during the financial year. Variable was granted)
(h) (ii) Number and total amount of sign-on / joining bonus made None*** 1
during the financial year
(h) (iii) Details of severance pay, in addition to accrued benefits, if any None None
(i) (i) Total amount of outstanding deferred remuneration, split into None None
cash, shares and share linked instruments and other forms
(i) (ii) Total amount of deferred remuneration paid out in None None
the financial year
(j) (i) Breakdown of amount of remuneration awards for Fixed Pay**: ` 5.90 Fixed
the financial year to show fixed and variable, deferred crores Variable Pay : ` 1.36 crore
and non deferred. : Only Non-Cash Variable : Nil
Variable was granted
(1,65,000 options)
(k) (i) Total amount of outstanding deferred remuneration and None None
retained remuneration exposed to ex post explicit and / or
implicit adjustments.
(k) (ii) Total amount of reductions during the Financial year due to None None
ex post explicit adjustments.
(k) (iii) Total amount of reductions during the financial year due to ex None None
post implicit adjustments
(l) Numbers of MRT identified 8 8
(m) (i) Number of cases where malus has been exercised. None None
(m) (ii) Number of cases where clawback has been exercised. None None
(m) (iii) Number of cases where both malus and clawback have None None
been exercised.
(n) The mean pay for the bank as a whole (excluding N.A N.A
sub-staff) and the deviation of the pay of each of its WTDs
from the mean pay.
* For FY 23 , the quantitative disclosures covers Chief Executive Officer , Whole Time Directors and Material Risk Takers. For FY 22 and
FY 23 , the NRC and Board approved the increase in the fixed remuneration of MD and CEO from ` 1.30 crores per annum to ` 1.55
crores per annum (exclusive of retirals, perquisites and retiral pay). The same was approved by RBI on December 26, 2022 for 1.53
crores for FY 22 and 1.60 Crores for FY 23. Further for MRTs , only non-cash variable was granted
**Fixed pay includes basic salary, retirals and perquisites
*** Only MRTs are considered
192
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Disclosure on remuneration to Non-Executive Directors

(` in Crores)
Remuneration by way of sitting fees to the Non-Executive Directors for 1.35 1.22
attending meetings of the Board and its committees
Profit related commission to all Non-Executive Directors other than - -
the Chairperson
14 Other Disclosures
a) Business ratios
Corporate Overview
i) Interest income as a percentage to Working Funds 1
13.81% 13.48%
ii) Non-interest income as a percentage to Working Funds1 1.14% 1.34%
iii) Cost of Deposits (%) 2
6.88% 6.94%
iv) Net Interest Margin (%)3 9.52% 8.59%
v) Operating Profit as a percentage to Working Funds
4 1
3.94% 3.79%
vi) Return on Assets 0.91% (1.33%)
Statutory Reports
vii) Business5 (deposit plus advances) per employee6 (` in crore) 1.98 1.73
viii) Profit per employee (` in crore)
6
0.01 (0.02)
1. orking funds represent the monthly average of total assets computed for reporting dates of Form X submitted to
W
RBI under Section 27 of the Banking Regulation Act, 1949.
2. Cost of Deposits is the ratio of interest expenses on deposit to daily average of total deposits.
3. et Interest Margin is Net Interest Income/ Average Earning Assets. Net Interest Income = Interest Income – Interest
N
Expense and Average Earning Assets is monthly average of total of net advances, investments and balance with
banks and money at call and short notice.
4. Operating profit is net profit for the year before provisions and contingencies.
5. ‘Business’ is the total of advances and deposits (net of inter-bank deposits).
6. Productivity ratios are based on average monthly employee numbers.
b) Bancassurance Business
Commission, Exchange and Brokerage in Schedule 14 include the following fees earned on Bancassurance business:
(` in Crores)
Nature of income For the year ended For the year ended
March 31, 2023 March 31, 2022
For selling life insurance policies 4.73 5.58
For selling non-life insurance policies 0.74 0.83
Total 5.47 6.41
c) Marketing and distribution

The Bank does not receive any fees/remuneration in respect of Marketing and Distribution function (excluding
bancassurance business) during the year ended March 31, 2023 (March 31, 2022: ` Nil).
193

d) Disclosures regarding Priority Sector Lending Certificates (PSLCs)

(` in Crores)
Type of PSLCs For the year For the year
ended March 31, 2023 ended March 31, 2022
PSLC bought PSLC sold PSLC bought PSLC sold
Agriculture 20.00 - - 150.00
Small and Marginal Farmers 35.00 1,950.00 - 1,450.00
Micro Enterprises 100.00 - 150.00 -
General - - - 1,035.00
Total 155.00 1,950.00 150.00 2,635.00
PSLC sold have been netted under priority sector category in schedule 9 and classified under non- priority sector.
e) Provisions and contingencies

Breakup of provisions and contingencies recognised in Profit and Loss Account comprise of:
(` in Crores)
Provision debited to Profit and Loss Account March 31, 2023 March 31, 2022
i) Provision for NPI - -
ii) Provision towards NPA (Net off write off) 280.95 320.42
iii) Provision made towards Income tax 14.30 10.92
iv) Provision for deferred tax 8.87 (44.96)
v) Provision for standard assets 3.92 5.80
vi) Provision for depreciation on investment -
vii) Other provision and contingencies* (48.26)* 65.75
Total 259.77 357.93
* includes reversal of provision on restructured accounts majorly on account of sale of stressed loans and write offs made during the
year. Also, refer schedule 18 - note 3(f) and 4(a)
f). Implementation of IFRS converged Indian Accounting Standards (Ind AS)

As per the RBI circular RBI/2015-16/315 DBR.BP.BC. No.76/21.07.001/2015-16 dated February 11, 2016 Implementation
of Indian Accounting Standards (Ind AS), The banks are advised to follow the Indian Accounting Standards as notified
under the Companies (Indian Accounting Standards) Rules, 2015, subject to any guideline or direction issued by the
the Reserve Bank in this regard. The Banks in India currently prepare their financial statements as per the guidelines
issued by the RBI, the Accounting Standards notified under section 133 of the Companies Act, 2013 and generally
accepted accounting principles in India (Indian GAAP). In January 2016, the Ministry of Corporate Affairs issued the
roadmap for implementation of new Indian Accounting Standards (Ind AS), which were based on convergence with
the International Financial Reporting Standards (IFRS), for scheduled commercial banks, insurance companies and
non-banking financial companies (NBFCs). In March 2019, RBI deferred the implementation of Ind AS for banks till
further notice as the recommended legislative amendments were under consideration of Government of India. The Bank
had undertaken preliminary diagnostic analysis of the GAAP differences between Indian GAAP vis-a-vis Ind AS and
shall proceed for ensuring the compliance as per applicable requirements and directions in this regard.
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g) Payment of DICGC Insurance Premium

(` in Crores)
i) Payment of DICGC Insurance Premium 4.80 3.48
ii) Arrears in payment of DICGC premium - -
15. Employees Stock Option Scheme

The Bank has share-based payment schemes for it’s employees. Schemes in operation Employee Stock Option Scheme
2016 and Employee Stock Option Scheme 2019. During the year-ended March 31, 2023, the Bank has issued 14,33,850
options (March 31, 2022 : 3,70,000) under the Employee Stock Option Scheme 2019.
Corporate Overview
The details of the Employee Stock Option Scheme are as under:
Particulars Employee Stock Option Scheme 2016
Grant Date January July March July February
19, 2017 27, 2017 1, 2018 16, 2018 5, 2019
Number of Options granted 1,510,000 550,000 306,950 407,000 724,000
Method of Settlement Equity
Statutory Reports
Vesting 25% after one year from the date of grant and every year thereafter.
Exercisable period 3 years from the Vesting date
Vesting Conditions From second vesting tranche onwards, based on performance rating
of the employee
Exercise Price Per Option ` 108 ` 125 ` 127 ` 140 ` 173
Particulars Employee Stock Option Scheme 2019
Grant Date November January January October April September
6, 2019 10, 2020 1, 2021 13,2021 28,2022 13,2022
Number of Options granted 1,872,100 195,000 315,000 370,000 654,500 779,350
Method of Settlement Equity
Vesting 25% after one year from the date of grant and every year thereafter.
Exercisable period 3 years from the Vesting date
Vesting Conditions From second vesting tranche onwards, based on performance rating
of the employee
Exercise Price Per Option ` 196 ` 196 ` 253 ` 189 ` 137 ` 114
195

Following are the outstanding options as at year end:

Particulars Employee Stock Employee Stock
Option Scheme 2016 Option Scheme 2019
As at As at As at As at
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Total Options granted and outstanding at the 416,525 849,930 1,572,135 1,914,635
beginning of the year
Add: Options granted during the year - - 1,433,850 370,000
Less: Options forfeited / lapsed during the year 142,862 405,482 775,425 712,500
Less : Options exercised during the year - 27,923 - -
Options Outstanding as at end of the year 273,663 416,525 2,230,560 1,572,135
- Vested 271,163 329,684 521,760 544,410
- Yet to Vest 2,500 86,841 1,708,800 1,027,725
The value of options have been estimated on the date of the grant using Black-Scholes model.
The key assumptions used in Black Scholes model for calculating value of options as on the date of the grant are:
Variables Employee Stock Option Scheme 2016 - Grant 1
Tranche 1 Tranche 2 Tranche 3 Tranche 4
1. Risk Free Interest Rate 5.50% 5.50% 5.50% 5.50%
2. Expected Life (in years) 2.56 3.56 4.56 5.56
3. Expected Volatility 41.68% 39.61% 38.41% 40.66%
4. Dividend Yield 0.00% 0.00% 0.00% 0.00%
5. Fair value of the option on the grant date (`) 42.82 48.32 53.26 60.00

1.Risk Free Interest Rate 5.50% 5.50% 5.50% 5.50%
2.Expected Life (in years) 2.56 3.56 4.56 5.56
3.Expected Volatility 38.88% 38.78% 37.41% 39.34%
4.Dividend Yield 0.00% 0.00% 0.00% 0.00%
5.Fair value of the option on the grant date (`) 37.43 44.74 49.95 57.16

1.Risk Free Interest Rate 6.50% 6.50% 6.50% 6.50%
2.Expected Life (in years) 2.56 3.56 4.56 5.56
3.Expected Volatility 39.35% 39.32% 38.05% 37.08%
4.Dividend Yield 0.00% 0.00% 0.00% 0.00%
5.Fair value of the option on the grant date (`) 39.68 47.58 53.37 58.52
196
Annual
Report 2022-23


4. Dividend Yield 0.00% 0.00% 0.00% 0.00%

Corporate Overview
4. Dividend Yield 0.00% 0.00% 0.00% 0.00%
Statutory Reports
4. Dividend Yield 0.00% 0.00% 0.00% 0.00%
4. Dividend Yield 0.00% 0.00% 0.00% 0.00%

4. Dividend Yield 0.00% 0.00% 0.00% 0.00%
197


4. Dividend Yield 0.00% 0.00% 0.00% 0.00%

4. Dividend Yield 0.00% 0.00% 0.00% 0.00%

4. Dividend Yield 0.00% 0.00% 0.00% 0.00%
Amount spent during the the financial year :
(` in Crores)
Particulars For the year ended For the year ended
March 31, 2023 March 31, 2022
Employee stock option expenditure (included in schedule 16 (I)) 2.53 0.93
(` in Crores)
March 31, 2023 March 31, 2022
Employee stock options outstanding account (included in schedule 2 (V)) 8.78 9.21
The Expected life of the stock option is based on historical data and current expectation and is not necessarily indicative
of the pattern that may occur.
The expected volatility reflects the assumption that the historical volatility of a comparable listed entity for 6 years
period ended on the date of the grant is indication of future trends which may not necessarily be the actual outcome.
198
Annual
Report 2022-23

16. Segment Reporting

Business segments have been identified and reported taking into account, the customer profile, the nature of products
and services, the differing risks and returns, the organisation structure and the guidelines prescribed by the RBI.
The Bank operates in the following segments:
a) Treasury
reasury performs liquidity management activities for various business segments. Transfer pricing is based
T
on internally approved yield curve or at an agreed transfer rate on the funding provided by treasury to another
business segment.
b) Retail banking
Corporate Overview
he retail banking segment serves retail customers through a branch network. Exposures are classified under retail
T
banking taking into account the status of the borrower (orientation criterion), the nature of product, granularity of
the exposure and the quantum thereof.
evenues of the retail banking segment are primarily derived from interest and fees earned on retail loans, interest
R
on deposits placed as collateral with the Bank. Expenses of this segment primarily comprise interest expense on
borrowings, deposits, infrastructure and premises expenses for operating the branch network, personnel costs and
other direct overheads.
Statutory Reports
c) Corporate banking
holesale banking includes all advances to borrowers, which are not included under Retail banking. Revenues of
W
the wholesale banking segment consist of interest and fees on loans made to customers.
d) Other Banking Operation

ther Banking includes other items not attributable to any particular business segment. This segment includes
O
income from para banking activities such as distribution of third party product and the associated costs.
e) Unallocated
ll items which are reckoned at an enterprise level are classified under this segment. This includes other unallocable
A
assets and liabilities such as deferred tax etc.
Geographical segments
he business operations of the Bank are concentrated in India hence the Bank is considered to operate only in
T
domestic segment.
Segment reporting for the year ended March 31, 2023 is given below:
(` in Crores)
Particulars Treasury Retail Corporate Other banking Total
banking Banking operations
Segment Revenue 126.97 1,263.24 47.81 5.49 1,443.51
Segment Result (47.27) 138.62 15.04 - 106.39
Unallocated expenses (5.53)
Operating Profit 100.86
Income taxes 23.16
Extraordinary profit/loss -
Net Profit 77.70
199

(` in Crores)
Other information:
Segment assets 3,368.85 5,567.29 812.78 4.45 9,753.38
Unallocated assets 107.85
Total assets 9,861.23
Segment Liabilities 2,815.09 3,700.57 1,762.00 3.11 8,280.77
Unallocated liabilities (4.28)
Total liabilities 8,276.49
Capital employed 1,584.73
Capital expenditure 140.52
Depreciation 43.33
Segment reporting for the year ended March 31, 2022 is given below:
(` in Crores)
Segment Revenue 137.62 991.11 49.20 6.52 1,184.45
Segment Result * 19.27 (129.68) (9.25) - (119.66)
Unallocated expenses (7.40)
Operating Profit (127.06)
Income taxes 34.02
Extraordinary profit/loss -
Net Profit (93.03)
Other information:
Segment assets 2,979.12 4,496.93 566.48 4.56 8,047.09
Unallocated assets 133.09
Total assets 8,180.18
Segment Liabilities (2,717.47) (3,503.61) (450.43) (2.38) (6,673.89)
Unallocated liabilities (1.18)
Total liabilities (6,675.07)
Capital employed (1,505.12)
Capital expenditure 50.47
Depreciation 19.38
The RBI vide its circular No. RBI/2022-23/19/DOR.AUT.REC.12/2022-23 dated April 07, 2022 on establishment of Digital Banking
Units (DBUs), has prescribed reporting of Digital Banking Segment as a sub-segment of Retail Banking Segment. The Bank is in
the process of setting up DBUs and hence no Digital Banking Segment disclosure have been made.
200
Annual
Report 2022-23

17. Employee benefits

Employee benefits - Gratuity
The Bank has non-contributory defined benefit arrangement providing gratuity benefits expressed in terms of final
monthly salary and years of service. Every employee who has completed five years or more of service gets a gratuity
on cessation of employment at 15 days salary (last drawn basic salary) for each completed year of service, subject to a
maximum of ` 20 Lakhs (March 31, 2022: ` 20 Lakhs). The scheme is funded with LIC of India and HDFC Standard Life
Insurance Company Ltd. The following tables summarise the components of net benefit expense recognised in the Profit
and Loss Account and the funded status and amounts recognised in the Balance Sheet.
(` in Crores)
Expenses recognised in the Profit and Loss Account March 31, 2023 March 31, 2022
Corporate Overview
Current service cost 2.66 2.25
Interest cost on benefit obligation 0.48 0.38
Past Service Cost - -
Expected return on plan assets* (0.01) (0.03)
Net actuarial (gain)/ loss recognized in the year (1.35) 0.15
Employer Expenses 1.78 2.75
* Represents expected returns determined by the actuary
Statutory Reports
(` in Crores)
Net Liability/ (Asset) recognised in the Balance Sheet March 31, 2023 March 31, 2022
Present value of Defined Benefit Obligation 9.33 8.83
Fair value of plan assets (0.13) (0.17)
Net liability recognized in balance sheet 9.20 8.66
Less: Unrecognised Past Service Cost -
Liability recognized in balance sheet 9.20 8.66
of which, Short term provision 1.78 1.17
(` in Crores)
Reconciliation of Defined Benefit Obligation (DBO) March 31, 2023 March 31, 2022
Present Value of DBO at start of year 8.83 7.65
Interest cost 0.48 0.38
Current service cost 2.66 2.25
Benefits paid (1.29) (1.65)
Actuarial loss (1.35) 0.20
Present Value of DBO at end of year 9.33 8.83
(` in Crores)
Reconciliation of Fair Value of Plan Assets March 31, 2023 March 31, 2022
Fair Value of Plan Assets at start of year 0.17 0.11
Expected return on plan assets 0.01 0.03
Contributions by the employer 1.25 1.64
Benefits paid (1.29) (1.65)
Actuarial (loss)/ gain (0.01) 0.05
Fair value of plan assets at end of year 0.13 0.18
Estimated employer contributions for the next year 1.50 0.10
Actual return on plan assets 0.00 0.07
201

The principal assumptions used in determining gratuity obligations for the March 31, 2023 March 31, 2022
Bank’s plan are shown below:
Discount rate 7.10% 5.40%
Expected rate of return on assets 5.40% 5.00%
Employee turnover 30.00% 25.00%
Salary growth rate 7.50% 7.50%
Mortality Rate IALM IALM
2012-14 (Ult.) 2012-14 (Ult.)
Expected average remaining working lives of employees 2 Years 3 Years
Percentage break-down of total plan assets March 31, 2023 March 31, 2022
Insurer Managed Funds (non unit-linked) 28.00% 21.00%
Insurer Managed Funds (unit-linked) 72.00% 79.00%
Total 100.00% 100.00%
Planned Asset Break up for Unit Linked Fund (Balanced Managed Fund) March 31, 2023 March 31, 2022
Equities 43.60% 43.45%
Debentures and Bonds 17.39% 22.85%
Government Securities 32.43% 19.57%
Deposits, Money market instruments and net current assets 6.58% 14.13%
Total 100.00% 100.00%
Planned Asset Break up for Unit Linked Fund (Secure Managed Fund) March 31, 2023 March 31, 2022
Debentures and Bonds 45.46% 34.77%
Deposits, Money market instruments and net current assets 7.38% 13.52%
Total 100.00% 100.00%
Planned Asset Break up for Non Linked Fund March 31, 2023 March 31, 2022
Corporate Bonds 50.36% 59.29%
Cash and Deposit 2.71% 2.61%
Total 100.00% 100.00%
(` in Crores)
Experience Adjustments March March March March March
31, 2023 31, 2022 31, 2021 31, 2020 31, 2019
Present Value of DBO 9.33 8.83 7.65 5.82 3.81
Less: Fair Valuation of Plan Assets 0.13 0.17 0.11 0.37 0.69
Funded Status [Surplus/(Deficit)] 9.20 (8.66) (7.54) (5.45) (3.12)
Experience adjustment on plan liabilities : (Gain) / Loss (0.07) 0.36 0.13 0.20 0.04
Experience adjustment on plan Assets : Gain / (Loss ) (0.01) 0.04 0.00 0.02 0.01
202
Annual
Report 2022-23

Employee benefits - Leave Availment

The actuarial liability in respect of privilege leave granted to employees of the Bank and outstanding as at March 31, 2023
is ` 0.91 crore (March 31, 2022: ` 1.02 crores).
Assumption used :
Discount rate : 7.1%
Salary escalation rate : 7.5%
The estimates of future salary growth considered in the actuarial valuation take into account inflation, seniority,
promotion and other relevant factors such as demand and supply in the employment market.
Corporate Overview
All the assets consist of unit-linked and traditional insurer managed debt instruments, the expected rate of return on
assets is drawn from the Indian Government bond yields.
Employee benefits - Provident Fund

The contribution to Employees Provident Fund included under “Payments to and Provisions for Employees” in Schedule
16 amounted to ` 13.47 crores for the year ended March 31, 2023 (March 31, 2022: ` 11.55 crores).
18. Earnings per equity share
Statutory Reports
Net profit after tax (in crore) 77.69 (93.03)
Weighted average number of equity shares in computing the basic 106,158,749 106,140,544
earnings per share
Basic earnings per share 7.32 (8.76)
Weighted average number of equity shares in computing the diluted 106,158,749 106,140,544
earnings per share
Diluted earnings per share 7.32 (8.76)
Nominal value per Share (`) 10.00 10.00
Reconciliation of weighted average number of equity share

Weighted average number of equity shares in computing the basic 106,158,749 106,140,544
earnings per share
Effect of potential equity shares outstanding - -
Weighted average number of equity shares in computing the diluted 106,158,749 106,140,544
earnings per share
Basic earnings per equity share is computed by dividing the net profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.
Diluted earnings per equity share is computed by dividing the net profit or loss after tax for the year attributable to equity
shareholder by weighted average number of equity shares including potential equity shares outstanding as at the end of the
year, except when results are anti dilutive.
203

19. Deferred taxes

As at March 31, 2023, the Bank has recorded net deferred tax asset of ` 97.44 crores (March 31, 2023 : ` 106.31 crores),
included in other assets.
(` in Crores)
A) Deferred tax asset arising out of:
Loan loss provision 100.02 101.17
Employee benefits 2.55 2.52
Depreciation - 2.55
Others 0.04 0.07
Total (A) 102.61 106.31
B) Deferred tax liability arising out of:
Depreciation (5.17) -
Total (B) (5.17) -
Deferred tax asset (net) (A-B) 97.44 106.31
20. Other Additional Dislosures

a) Provision on Standard Assets
(` in Crores)
Provision towards standard assets 23.38 19.46
b) Contingent liabilities
(` in Crores)
Service tax liability 0.66 0.63
Income tax liability 3.49 3.39
Undrawn commitments 0.12 0.12
Others 18.02 0.00
Total 22.29 4.14
Description of contingent liabilities

i) Claims against the Bank not acknowledged as debts - taxation
he Bank is a party to various taxation matters in respect of which appeals are pending. The Bank expects the
T
outcome of the appeals to be favourable based on decisions on similar issues in the previous years by the appellate
authorities, based on the facts of the case and taxation laws.
ii) Claims against the Bank not acknowledged as debts - others

he Bank is a party to various legal proceedings in the normal course of business. The Bank does not expect the
T
outcome of these proceedings to have a material adverse effect on the Bank’s financial conditions, results of
operations or cash flows.
204
Annual
Report 2022-23

c) Leases
Operating lease primarily comprises of office premises, computers and tablets, which are renewable at the option of the
Bank. The following table sets forth the details of future rentals payable on operating leases :
(` in Crores)
Not later than one year 4.31 0.60
Later than one year but not later than five years 6.33 0.36
Later than five years - -
Total 10.64 0.96
Corporate Overview
The total lease payments recognised in the Statement of Profit and Loss 28.28 26.44
account for the year
Total of future minimum sub-lease payments expected to be received under - -
non-cancellable sub-leases
Sub-lease amounts recognized in the Profit and Loss Account for the year - -
Contingent (usage based) lease payments recognized in the Profit and Loss - -
Account for the year
Statutory Reports
The terms of renewal and escalation clauses are those normally prevalent in similar agreements. There are no undue
restrictions or onerous clauses in the agreement.
d) Corporate Social Responsibility (CSR)

Gross amount required to be spent by the Bank during the year ended March 31, 2023 is ` 0.26 crore (March 31, 2022
` 2.05 crores) under section 135 of the Companies Act, 2013.
(` in Crores)
a) Gross amount required to be spent by the Bank during the year 0.26 2.05
b) Amount spent during the year
i) Construction/ acquisition of asset
ii) on purpose other than (i) above 0.23 2.05
c) Previous years surplus 0.03 -
Total 0.26 2.05
d) Nature of CSR activities Livelihood promotion, literacy, women
empowerment, preventive healthcare
and environment conservation.
e) Details of payment of Audit fees.

(` in Crores)
Statutory Audit fees and other related services* 1.05 1.08
Other Matters - -
Total 1.05 1.08
*Includes out of pocket expenses.
205

f) (i) Miscellaneous income more than 1% of total income

(` in Crores)
Income on Priority sector lending certificates 36.88 38.53
pto March 31, 2022, the Bank used to amortise fees received from the sale of Priority Sector Lending Certificates
U
(PSLC) over the residual quarters of the financial year in which the certificates were sold. From April 01, 2022, the
Bank has started recognising fees received from the sale of PSLC on upfront basis.
f) (ii) Other Expenditure more than 1% of total income

(` in Crores)
Brokerage (includes loan acquisition commission) 31.58 17.36
Loss on transfer of stressed assets (refer note 3[f]) 21.53 -
Professional fees (includes payment to outsourced vendors) 21.27 14.61
g)
There are no such items in other assets and in other liabilities exceeding 1% of total assets to be disclosed as per
Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021, updated as on February
20, 2023.
h) Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances

The Bank has restructured accounts in accordance with RBI circular on Micro, Small and Medium enterprise (MSME)
sector - Restructuring of advances
1. esolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises
R
(MSMEs)_RBI/2021-22/32/DOR.STR.REC.12/21.04.048/2021-22.
2. icro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances circular DOR.No.BP.
M
BC.34/21.04.048/2019-20 dated February 11, 2020.
(` in Crores)
March 31, 2023 March 31, 2022
No. of accounts restructured 227* 12,632
Amount in ` crore 5.78 70.01
*Excludes accounts sold to EARC and write offs during the FY 2022-23.
i) Details of Single Borrower Limit (SBL), Group Borrower Limit (GBL) exceeded by the Bank
During the year ended March 31, 2023, the Bank’s credit exposures to single borrowers and group borrowers were within
the limits prescribed as per the extant RBI guidelines. (March 31, 2022 : ` Nil)
j) Inter- Bank Participation with Risk Sharing

The aggregate amount of participations issued by the Bank are reduced from Advances as per regulatory guidelines as
on March 31, 2023 is ` Nil (March 31, 2022: ` Nil )
206
Annual
Report 2022-23

k) Related party disclosure

The Bank has only one related party i.e. Mr. Baskar Babu Ramachandran, Managing Director (MD) and Chief Executive
Officer (CEO). Hence, related party transactions are not disclosed as per the exemption provided in the RBI Master
circular on ‘Disclosure in Financial Statements’ Notes to Accounts dated July 1, 2015.
l) Small and micro industries

Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2, 2006,
certain disclosures are required to be made relating to Micro, Small and Medium enterprises. There have been no reported
cases of delays in payments to micro and small enterprises or of interest payments due to delays in such payments
(March 31, 2022: ` Nil).
Corporate Overview
m) Letter of Comfort
The Bank has not issued letter of comfort during the year ended March 31, 2023 (March 31, 2022: ` Nil).
n) Investor Education and Protection Fund

The Bank has transferred ` 1,526.00 (in absolute numbers) to Investor Education and Protection Fund by the Bank for the
year ended March 31, 2023 (March 31, 2022: ` Nil).
Statutory Reports
o) Disclosure on the scheme for sustainable structuring of stressed assets
The Bank does not have any account under the Scheme for Sustainable Structuring of Stressed Assets (S4A) as on
March 31, 2023 (March 31, 2022: ` Nil).
p) Disclosure on Flexible Structuring of Existing Loans

The Bank does not have any account under the Scheme Flexible Structuring of Existing Loans as on March 31, 2023.
(March 31, 2022: ` Nil).
q) Disclosure on Strategic Debt Restructuring (SDR) scheme
he Bank does not have any account under the strategic debt restructuring (SDR) scheme as on March 31, 2023.
T
(March 31, 2022: ` Nil).
r) Disclosure on Change in Ownership of Project Under Implementation

The Bank does not have any account which are currently under the scheme of Change in Ownership of Projects Under
Implementation as on March 31, 2023 (March 31, 2022: ` Nil).
s) Disclosure on change in ownership outside SDR scheme

The Bank does not have any account which are currently under the scheme of Change in Ownership Outside SDR as on
March 31, 2023 (March 31, 2022: ` Nil).
t) The Code on Social Security, 2020

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post‑employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have
not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any
related impact in the period the Code becomes effective.
207

u) o proceedings have been initiated on or are pending against the Bank for holding benami property under the Benami
N
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
v) The Bank has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
w) he Bank, as part of its normal banking business, that is conducted ensuring adherence to all regulatory requirements,
T
grants loans and advances, makes investments and accepts deposits and borrowings from its customer, other
entities and persons.
(i) ther than the transactions described above which are carried out in the normal course of business, the Bank
O
has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
- irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
d
behalf of the Bank (Ultimate Beneficiaries) or
- provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(ii) he Bank has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
T
the understanding (whether recorded in writing or otherwise) that the Bank shall:
- irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
d
behalf of the Funding Party (Ultimate Beneficiaries) or
- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
x) here is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
T
the Income Tax Act, 1961, that has not been recorded in the books of accounts.
y) Comparatives
Figures for the previous year have been regrouped wherever necessary to conform with the current year presentation.


Place: Navi Mumbai

Date: May 15, 2023
208
Registered and Corporate Office:
1101 Sharda Terraces, Plot 65, Sector 11, CBD Belapur, Navi Mumbai - 400 614

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ANNUAL REPORT

OVERVIEW 08 Product Portfolio 34 

143-208 143 Independent

STATEMENTS 153 Profit and Loss Account

` 6,114 Cr ` 844 Cr ` 78 Cr

*Adjusted for ARC is ₹6,541 Crores with growth of 29.2%

Every morning the Sun rises with precision,

Since our humble beginnings in 2009, our We stood unfazed by uncertainties.

Our Purpose has served as the foundation for our strong

As a part of our DNA, we have always focussed on

Loan Mix (%) Shareholding Pattern (%)

Inclusive Finance Promoter Financial

Agency Category Rating

What Differentiates Us? Who Are Our Investors?

Strategic technology Private Equity

Experienced leadership and

COMPANY OVERVIEW (CONTD.)

Journey with a Solid Purpose

Unique Offerings to Serve Diverse Needs

Liability Highlights for FY23

` 5,167 Cr 73.1% Product Mix

Asset Product Mix

Figures may not add up due to rounding off

MFI Lending (Inclusive Finance) Highlights for FY23

*Started during the fiscal year on a pilot basis.

Highlights for FY23

1,800+ ` 405 Cr • The GNPA of this product segment as of March 31,

Striding Ahead with Quality Growth

MD & CEO’S MESSAGE

Leveraging Capabilities for Deeper Connect

We began the year amidst the backdrop of FY22 and the

We focussed on growing our portfolio across all fronts.

As we have a geographically spread branch network

We grew our liability franchise by focussing on deeper

With the government impetus on growth and a buoyant

We will strive to build a respectable financial services

Baskar Babu Ramachandran

KEY PERFORMANCE INDICATORS

Steady and Remarkable Performance

Balance Sheet Metrics

22-23 9,861 22-23 1,585 22-23 6,114

3-year CAGR 13.7% 3-year CAGR -0.3% 3-year CAGR 13.3%

22-23 5,167 22-23 5,083

3-year CAGR 16.7% 3-year CAGR 31.9%

22-23 33.7 22-23 8.3 22-23 0.9

Y-o-y -420 bps Y-o-y -90 bps Y-o-y 220 bps

ROE GNPA NNPA

22-23 5.1 22-23 3.1 22-23 1.5

Y-o-y 1,100 bps Y-o-y -870 bps Y-o-y -450 bps

Profit and Loss Metrics

22-23 1,281 22-23 844 22-23 747

3-year CAGR 14.5% 3-year CAGR 20.2% 3-year CAGR 22.1%

22-23 337 22-23 78 22-23 19.3

3-year CAGR 23.1% 3-year CAGR 86.4%

Cost of Funds Net Interest Margin Cost-to-Income Ratio

22-23 6.7 22-23 9.5 22-23 60

Y-o-y -30 bps Y-o-y 90 bps Y-o-y -90 bps

Customer Base Employee Base Branches

22-23 23.1 22-23 6,025 22-23 577

3-year CAGR 15.7% 3-year CAGR 5.5% 3-year CAGR 1.2%

OVERVIEW 08 Product Portfolio 34

143-208 143 Independent

BOARD OF DIRECTORS (vi)