Annual-Report FY2021-22-BBL - 0

Belief
Reinforced
Resilience. Relearning.
Reimagining.
Annual Report
2021-22
Stories Inside
Corporate Overview About this report
1 Numbers that Define the Bank The Bank’s key purpose is to ensure that
every individual falls under the purview of
2 Company Overview
formal banking. In order to achieve this, the
4 Your Bank’s Performance in Numbers Bank is reaching out to the unbanked and
8 Chairman’s Message under-banked population of the country and
10 Message from the MD & CEO providing the rightful access to basic banking
12 Board of Directors and financial services while also catering to
16 Core Management Team metro and urban India through its various
products and services. Through this report, it
17 Diversified Product Suite
is being demonstrated how the Bank is living
27 Information Technology
its purpose.
28 Operational Excellence
30 Human Resources
33 Responsible Risk Management Forward-looking Statement
38 Treasury Management
This report contains forward-looking
39 Compliance statements, which may be identified by their
40 Strengthening Brand Bandhan use of words like ‘plans’, ‘expects’, ‘will’,
42 Touching Lives ‘anticipates’, ‘believes’, ‘intends’, ‘projects’,
Making a Difference ‘estimates’ or other words of similar meaning.
45 Empowering the Community All statements that address expectations or
projections about the future, including but
not limited to statements about the Bank’s
strategy for growth, product development,
Statutory Reports market position, expenditures and financial
50 Board’s Report results, are forward-looking statements.
Forward-looking statements are based on
86 Report on Corporate Governance
certain assumptions and expectations of
118 Management Discussion
future events. The Bank cannot guarantee
& Analysis Report
that these assumptions and expectations are
127 Business Responsibility Report accurate or will be realised. The Bank’s actual
results, performance or achievements could
thus differ materially from those projected
Financial Statements in any such forward-looking statements. The
Bank assumes no responsibility to publicly
145 Financial Statements amend, modify or revise any forward-looking
statements, on the basis of any subsequent
developments, information or events. The
Bank has sourced the industry information
from the publicly available resources and has
not verified those information independently.
To view this report online, please visit

the investors’ corner section at:
www.bandhanbank.com
Numbers that Define the Bank
34 2.63 crore
States & UTs Customers
566 60,211
Districts Employees
5,639
Banking Outlets
The last two years have taught us more about managing crises and
challenges than the many years before it. Globally, for individuals and
organisations, this phase has been a learning experience.
Bandhan Bank has a strong foundation of many years of working with the
vulnerable sections of the society. Now, as a universal bank, the Bank has
been able to rapidly expand its operations and maintain a steep learning
curve. The pandemic and the necessary steps taken to keep people safe,
impacted one and all, resulting in extremely tough operating environment
for businesses. In such a scenario, your Bank proved its resilience, like
it has done in the past as well. Your Bank’s performance has given it
confidence in its structural and operational strength. In manoeuvring
the business through these times, the Bank has also been agile in
making necessary changes and initiating new processes and systems.
This relearning goes further in strengthening the resilience of the Bank.
While the world of banking was already evolving fast, the pandemic has
accelerated the journey and now, we all are reimagining what the future
can and will be. Your Bank’s ability to reimagine its future while being
strong in its ethos of being a bank for all, makes for exciting and fulfilling
times ahead.
Company Overview
Bandhan Bank is one of India’s youngest scheduled commercial banks. The Bank’s ethos of
inclusive banking is rooted in trust and integrity, driven by its philosophy of ‘Aapka Bhala,
Sabki Bhalai’. While the Bank aims to be a bank for all, its focus remains the unbanked and
underbanked population of the country. Through the hardships brought by the pandemic, your
Bank’s business operations have displayed exemplary resilience to meet the challenges and
address the aspirations of every Indian. Learning through every hurdle, the Bank has reinvented
itself to cater to its customers’ banking needs remotely and physically. The Bank has emerged
stronger and is poised to see sustained growth in the future.
Despite the economic slowdown and lockdown imposed during the pandemic, your Bank has remained focussed on reaching out
to the unbanked and underserved segments of the Indian population with its last-mile banking services in rural and semi-urban
areas. For the urban segment, the Bank expanded its extensive portfolio of need-based banking products, backed by a 360-degree
service proposition. Its strong customer-centric approach and growing network of branches across geographies have helped
onboard many customers.
Your Bank’s Philosophy
Vision Values C Cost Effective & Simple
To be a world-class Our values are anchored

bank with convenient around our business ethics, R Respect for All
and affordable financial consumer focus, and
solutions for all, offered corporate responsibility
in an inclusive and towards the society at large. E Exemplary Governance
sustainable manner.
Accountability, Professionalism
A & Discipline
Mission
To provide our customers accessible, simple, cost-effective T Transparency & Integrity
and innovative financial solutions in a courteous and
responsible manner. To create value for all stakeholders
through a committed team, robust policies and superior E Effective Teamwork & Commitment
systems and technology.
Serving the unserved and 10% 35%

underserved Metro Rural
Your Bank continually endeavours to
further inclusive banking and reach the
unbanked and under-banked masses of Distribution
of Banking
the country.
Outlets
18%
Urban 37%
Semi-urban
02
CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Annual Report 2021-22
Growing Outreach
Expanding progressively over the years, your Bank delivers product and service excellence to more than 2.60 crore customers
in 34 states and union territories, through its more than 5,600 banking outlets.
Jammu and Kashmir Bank Branch

Banking Unit
2 1
2 Himachal Pradesh
15 24
Chandigarh 12 27
Punjab
21 36 Uttarakhand
32 20
1
Haryana NCT of Delhi
1 6 Arunachal Pradesh
Sikkim
79 415 90 381
2 8
21 186
Uttar Pradesh 87 532 1 7 Assam
Nagaland
Rajasthan
Bihar Meghalaya 2 6
28 89
Manipur
26 115
37 161 Tripura 2 5
41 245
Jharkhand 484 1181
Gujarat Mizoram
Madhya Pradesh
22 96 West Bengal
Chhattisgarh 38 154
Odisha
1 2 57 268
Dadra & Nagar Haveli Maharashtra

13 126
Telangana
2 4
Goa 13 135
1 4
25 128 Andhra Pradesh
Puducherry
Karnataka
1
Andaman and Nicobar Islands

18 88
11
Tamil Nadu
Kerala
Geographical Distribution of 9% 10%

Banking Outlets Western Southern
The Bank continues to expand its
footprint across the country. While its 6%
legacy makes it stronger in presence in 47% Distribution Northern
the East, your Bank is keenly focussed on Eastern of Banking
diversifying geographically and increasing Outlets
its presence in areas outside of East.
11% 17%
North Eastern Central
03
Your Bank’s Performance in Numbers
Your Bank’s resilience over the past two years have reinforced its belief and the Bank has made
significant progress across key growth metrics. As your Bank prepares to take a leap into the
next phase of its transformation agenda, let us look at some of its Key Performance Indicators
(KPIs) over the past five years.
Business Mix in FY 2021-22
23.72% 5.67%
Mortgages Current Account
35.94%
46.84% Savings 35.67%
EEB Group Account Term Deposit
11.79% Retail
Commercial
Assets Liabilities
Banking
1.67%
Retail Loans
15.98% 22.72%
SBAL Term Deposit
Others
Total Business Advances Deposits

(₹ in crore) (₹ in crore) (₹ in crore)
1,95,669
99,338
96,331
87,043
1,65,015
77,972
71,846
1,28,928
57,082
44,776
43,232
88,008
33,869
66,208
32,339
2021-22*
2021-22*
2017-18
2018-19
2019-20
2020-21
2017-18
2018-19
2019-20
2020-21
2017-18
2018-19
2019-20
2020-21
2021-22
*(TLTRO & PTC amount ₹547 crore included in FY 2021-22 Advances)

EEB - Emerging Entrepreneurs Business; Small Business and Agri Loans (SBAL)
04
2017-18 3,738 2017-18 9,215
(₹ in crore)
(₹ in crore)
2018-19 5,558 2018-19 10,969
Net Worth
2019-20 7,873 2019-20 14,975
Total Income (Net)

CORPORATE OVERVIEW
2020-21* 9,586 2020-21 17,148
2021-22 11,537 2021-22 16,130
* Re grouped to conform to FY 2021-22 classification.

STATUTORY REPORTS
2017-18 1,346 2017-18 11,624

CASA
(₹ in crore)
(₹ in crore)
2018-19 1,952 2018-19 17,618
Profit After Tax

2019-20 3,024 2019-20 21,028
05
2020-21 2,205 2020-21 33,827
FINANCIAL STATEMENTS
2021-22 126 2021-22 40,079
2017-18
(%)
34.32
2018-19 40.75
CASA Ratio
2019-20 36.84
2020-21 43.38
2021-22 41.61
Annual Report 2021-22
(%)
2017-18 35.00 2017-18 31.48 (%)
2018-19 32.58 2018-19 29.20
2019-20 30.82 2019-20 27.43
2020-21 29.39 2020-21 23.47
Cost to Income Ratio

2021-22 30.54 2021-22 20.10
Capital Adequacy Ratio
06
(%)
(%)
2017-18 1.25 2017-18 9.69
2018-19 2.04 2018-19 10.43
Gross NPA
2019-20 1.48 2019-20 8.12
2020-21 6.81 2020-21 7.78

Net Interest Margin
2021-22 6.46 2021-22 8.17

CORPORATE OVERVIEW
(%)
2017-18 2,764 2017-18 0.58
Net NPA
2018-19 3,014 2018-19 0.58
2019-20 3,541 2019-20 0.58
Banking Units
2020-21 4,163 2020-21 3.51
STATUTORY REPORTS
2021-22 4,450 2021-22 1.66
07
2017-18 1.30 2017-18 936
(in crore)
2018-19 1.65 2018-19 986
Branches
Customers
2019-20 2.01 2019-20 1,018
2020-21 2.30 2020-21 1,147
2021-22 2.63 2021-22 1,189

Chairman’s Message
Your Bank’s strategic
focus will be
on accelerating
disbursements, maintaining
collection efficiency,
and driving continuous
improvement
in asset quality.
- Dr. Anup Kumar Sinha
Dear Shareholders,
I hope you and your loved ones are Economic Review Sector Performance
doing well. The fiscal year began on a muted note as The pandemic has been a test for the
The challenges posed by the COVID-19 India battled the second severe wave of global financial system. The timely
pandemic continued in the year in review. COVID-19 that overwhelmed the entire measures taken by the Reserve Bank
I am happy to tell you that your Bank healthcare infrastructure. The situation of India (RBI) and the government
displayed strong resilience, yet again. As started improving in the second quarter; have helped the economy tread these
the impact of COVID-19 started abating, however, the Omicron variant-led wave unprecedented times.
your Bank’s business growth gathered surfaced in the fourth quarter to disrupt
The banking industry continued to play a
pace along with a sharp improvement in economic and social life again, albeit not
strong role in the revival of the economy.
asset quality. Its sustained recovery has as significantly.
Bank credit grew by 7.1% in FY 2021-22
once again demonstrated the strength of From a contraction of 6.6% during against a decline of 0.4% in FY 2020-21.
its business model. FY 2020-21, India made a strong This growth was led by the micro and
With small businesses and those with economic recovery, with GDP growth of small enterprises, whose credit growth
relatively limited financial resources 8.7% for FY 2021-22. Supportive fiscal was far higher than the large industries.
being severely hit by the pandemic, and monetary stances, increased public
The banking sector has also performed
these extraordinary times have also spending including in infrastructure,
well in capital adequacy ratios and
reiterated the relevance of your Bank’s a pickup in private investment, along
reduction of non-performing assets.
vision: offering convenient and affordable with rapid vaccination progress aided
Capital to risk-weighted asset ratio (CRAR)
financial solutions for all. Underpinned by the revival.
of Scheduled Commercial Banks (SCB)
its dedicated workforce, wide network, The pandemic impact was evident rose to a new high of 16.7% in end-March
growing portfolio, strong stakeholder in the quarterly GDP growth figures. 2022 from 16.03% in end-March 2021,
relationships, and ongoing digital While growth during the first and fourth on account of the improvement of CRAR
transformation, your Bank remains quarters was affected by the COVID-19 of both public and private sector banks.
committed to taking inclusive banking to impact and the related lockdowns, the The Gross Non-Performing Asset (GNPA)
the next level. remaining two quarters achieved strong ratio of SCBs decreased from 7.48% in
growth as disruptions eased significantly end-March 2021 to a six-year low of 5.9%
and life gradually returned to normalcy. in end-March 2022.
08
The RBI announced that 1.5 lakh post

offices would get core-banking system. Your Bank reported healthy sequential
It also declared setting up 75 Digital progress across parameters as the operating
Banking Units in 75 districts of the
conditions improved. More importantly,
country by SCBs. These measures will aid
the ongoing efforts of financial inclusion even during these difficult times and, often,
and make formal financial services emotionally exhausting instances, the Bank’s
available to the rural population. Another employees never wavered from their focus on
significant announcement by the RBI is supporting its customers.
the introduction of the digital rupee in the
FY 2022-23 by using blockchain and other
technologies. This will make India among
the select global economies that have
their sovereign digital currency.
Your Bank’s Progress

Your Bank reported healthy sequential
progress across parameters as the system, provides a robust platform for an the medium term, improving domestic
operating conditions improved. More upshift in the credit growth trajectory. macro conditions, higher investments,
importantly, even during these difficult and stable consumption growth will
The road ahead, however, has its fair
times and, often, emotionally exhausting support sustained economic recovery.
share of challenges. Economic growth
instances, the Bank’s employees never
can potentially be undermined by Your Bank is committed to supporting this
wavered from their focus on supporting
geopolitical tensions, excessive volatility recovery by focusing keenly on customers’
its customers.
in global commodity prices, supply-chain needs. In this regard, the Bank’s Vision
Your Bank also made good progress disruptions, high inflationary pressures, 2025, along with its solid and meaningful
towards the realisation of its Vision 2025. ongoing monetary tightening by the purpose of financial inclusion, will drive
Portfolio diversification, geographical central bank and withdrawal of some of its momentum. The Bank looks forward
diversification, digital transformation, the fiscal stimuli. to your continued support as it works
and people empowerment are critical towards creating better value for its
Global central banks have raised rates
aspects of Vision 2025 as the Bank seeks customers, all other stakeholders, and our
and tightened monetary conditions
to continue being a bank of choice for its great nation.
to combat the rising inflation. The RBI
customers. Under portfolio diversification,
also raised the policy repo rate and has
the focus is on growing the Bank’s non-
taken steps to move towards liquidity
microfinance portfolio – SME loans, Warm regards,
normalisation to control inflation. Further,
housing loans and retail assets - and Dr. Anup Kumar Sinha
with the inflation forecast to remain at
thus, gradually diversifying from its core Non-Executive (Independent) Chairman
high levels of around 5.7% for the year,
microfinance business.
the RBI has mentioned that it will focus on
Your Bank’s strategic focus will be on withdrawing the accommodative policy
accelerating disbursements, maintaining stance to keep inflation in check.
collection efficiency, and driving
continuous improvement in asset quality. In Conclusion
The largely successful massive vaccination
Way Ahead drive in India has helped in containing
India’s GDP growth is projected to grow in the pandemic and restored people’s
real terms by 7.2% in FY 2022-23 . Healthy confidence in facing the pandemic.
economic growth, along with budgetary India has also enhanced its health
support from the government and the infrastructure and is well on the way to
improved resilience of the banking putting the COVID-19 blows behind. Over
09
Message from the MD & CEO
By successfully
overcoming one of the
toughest stress tests in
our history, Bandhan is
now a far more secure-
proof organisation
with a resilient growth
framework in place.
- Chandra Shekhar Ghosh
Dear Shareholders,
To say that FY 2021-22 was a full learning relief as people dusted their backs and As mentioned earlier, in the second wave
cycle for your business, will not be far got back up on their feet. of the pandemic, there was a significant
from the truth. The pandemic and its loss of livelihood even in rural and semi-
Within the third quarter of the financial
impact brought challenges that none urban India. As a result of this, the income
year, thanks to the large-scale vaccination
of us ever faced in our lifetimes. We of our microfinance and small business
drive and the reducing impact of the
went through a phase of realisation and & agri loans customers, dropped sharply,
pandemic, there were strong signs of
relearning. This experience has given affecting their ability to repay their loans.
resurgence. Credit demand picked up
us meaningful lessons leading to more Repayment of loans is driven by intent
sharply, consumer expenditure started
sustainable learning. I am very proud and ability. While our customers’ ability
rising, and industries that had faced the
of how Bandhan Bank responded when to repay was dented, their intent was
greatest impact, like travel and tourism,
faced with the most difficult and, at unmoved. This was proven in the part
started rebounding. This bode well for your
times, trying circumstances. However, payments that the Bank continued to
Bank as the third quarter is traditionally
opportunities came back strongly, and receive, even through the second wave. In
when the Bank’s business picks up.
your Bank was well poised to grab them Q1 FY2022, a total of 41.7 lakh customers
and close the year on a positive note. The new calendar year 2022, came with paid in part, however, since the entire
Your Bank’s experience of the last quarter another wave of the pandemic. However, amount was not paid, their accounts had
of the year in review establishes that the this time, the impact was milder.
to be classified as SMA or NPA, as the
impact of the pandemic on businesses, Hospitalisation and fatality rates were
case may be. The part-paying customers
the operating environment and people at low, loss of business was minimal, and
reinforced the positive impact Bandhan
large has abated. We have truly entered restrictions placed by the authorities were
has had on their lives and also that they
the all-important phase of reimagining, also milder. All these resulted in people
want to continue to get the benefits from
rebuilding and resurrecting. gaining confidence in managing the
their association with the Bank.
pandemic. This was a welcome sign as the
The Operating Environment devastation caused by the earlier waves As a conservative measure, your Bank
We started the year in review while being had left many in a lot of fear. With these made a near 15-fold higher provisions
in the toughest phase for the nation. The developments, the last quarter of the at ₹5,578 crore to cover existing and
second wave of the pandemic in India financial year turned out to be the saviour future asset quality stress. This prudent
brought much disruption. Unlike the first for many businesses. management decision, which resulted in
wave of 2020, the rural and semi-urban the first-ever net loss for your Bank, proved
areas were also significantly affected. The Financial Review itself right in the next two quarters when
large-scale loss of lives and livelihoods For your Bank, the financial year was the Bank was able to report profits again.
was witnessed by all. The stringent a full circle. The first six months were
local lockdowns and restricted hours challenging with a difficult operating Your Bank has shown resilience a number
severely dented businesses. Repayments environment. In the last six months, of times in the past. It did so, yet again,
were impacted, credit demand shrunk, though, your Bank scripted a resurgence in the last two quarters of the financial
consumer expenditure was measured, that ensured its bounce back. This was year as it made a strong comeback to all-
and the overall economy was under made possible by our customer’s faith round recovery. Our collections improved,
pressure. Policy measures brought some and trust, committed workforce, and and disbursements increased with the
prudent management.
10
economy showing signs of normalcy. For grew by 23.5%; whereas core geographies extraneous uncontrollable factors like
Q4 FY 2021-22, collection efficiency was of East and North East recorded 18% geopolitical tensions has put stress on the
99%, and loan disbursements stood at deposit growth, for the rest of the country economy, yet, we are confident that we
₹31,685 crore, higher than pre-COVID deposit growth was 31%. will bounce back soon enough.
levels.
Emerging Stronger Key Focus Areas Ahead
What makes our performance even more While none would have wished for the Your Bank is well poised for its next phase
satisfying is that throughout the year we unprecedented disruption caused by the of growth. It is progressing as desired on
have continued to manage the business pandemic, Bandhan Bank has leveraged its Vision 2025. There are two prominent
while always protecting the health and this crisis as a learning opportunity to focus areas of the Bank moving forward,
safety of all our stakeholders. become stronger. which will work in unison with the rest
of the business priorities. These focus
Operational Review The Bank’s business demonstrated strong
areas are strengthening the IT backbone
While navigating the challenging operating resilience against the headwinds, as
leading to superior digital experiences,
environment, your Bank continued its mentioned earlier, driven by the resilient
and upskilling and reskilling of staff
growth trajectory and strategic intent. workforce. I am extremely proud of
across levels.
The Bank is steadfast in its Vision 2025 how they continued to serve customers
and it is making steady progress on throughout the year, despite challenges. The IT and digital transformation of the
the same. Vision 2025 encompasses Bank is well underway and progressing
The Bank continued to hire employees
the transformation of four pivotal satisfactorily. When complete, your Bank
across verticals to have the necessary
pillars: business (verticals), information will be among the foremost tech-enabled
workforce to realise Vision 2025. In the
technology, digital, and people. banks in the country. Combining the
year in review, the Bank added more than
strength of data, technology and AI, your
10,000 employees to end the year with
For business, the two areas of impact are Bank will deliver a personalised and hyper-
60,211 employees on roll.
loan book diversification and geographical contextual experience to its customers.
diversification. When we embarked upon Your Bank has always placed strong
Banking is a people-oriented business and
Vision 2025 in February 2020, even before emphasis on training and development
will continue to be so, especially for the
the pandemic, the group loan share as on to upskill and reskill staff to ensure that
target audience that your Bank has. At the
March 31, 2020, was 59.5% of the overall they stay relevant to the fast-changing
same time, the world of banking is evolving
loan book. At the close of FY 2021-22, the world. Even during FY 2021-22, the Bank’s
at a rapid rate. To maintain relevance
same stood at 46.8%, a reduction of 1,270 training programmes had over 90,000
and continue to serve the customer with
bps. The share of loans under Commercial participants across levels and locations.
empathy and agility, the Bank will keenly
Banking increased from 9% to 11.8%, well This includes online and classroom
focus on the training needs of employees
on track to reach the targeted 30% by training sessions.
across levels. This will include classroom/
2025. Housing loan stood at 23.7% of the
Your Bank has also covered significant online training programmes, on job
advance book, well on track to be 28% of
ground in the technology and digital learning and cross-functional project
the advance book by 2025. Other retail
transformation agenda in the year in participation, among others.
assets like gold loan, personal loan, two-
review. The Bank’s objective of being
wheeler and auto loans increased their Your Bank has audacious goals and is
equipped to provide customers with
share from less than 1% to 1.7%. confident of achieving them, driven by the
an omnichannel, hyper-personalised
buoyant operating environment and rising
In terms of geographical diversification, experience is well on course. I am pleased
consumer aspirations. In the next couple of
your Bank is focussed on expansion to tell you that the Bank has already
years, your Bank will continue to evolve to
beyond East and North East India. While deployed tablets across the country
keep itself relevant to the target audiences.
in the year in review, given the prevailing through which the small business & agri
The Bank will focus not just on the volume
conditions, your Bank was conservative loans are disbursed real-time.
of business but also on the quality of
in expanding its network, in FY 2022-23, The Bank has also evaluated various business. Expanding our MSME book,
it plans to open 551 new banking outlets, new products and services to be added retail book, and housing book; diversifying
the majority of which will be outside to the suite, enabling it to become a geographically, and getting the tech and
of the east and north east. While the one-stop-shop for all banking needs of its digital transformation across the finish line
core focus of your Bank will continue customers. Consequently, in the coming will continue to be areas of emphasis.
to be rural and semi-urban India, it will couple of years, you will hear about a few
strengthen its presence in larger centres In conclusion, I would like to thank all the
product launches from the Bank. Bank’s stakeholders for their continued
as well, to garner more customers and
truly be a bank for all. As on March 31, confidence in the Bank. With your
Business Outlook sustained support, the Bank will continue
2022, your Bank has a total of 5,639
Following a largely successful, massive on its purpose of serving the aspirations
banking outlets across 34 of the 36 states
vaccination drive, pandemic fear and of New India and delivering consistent
and union territories.
anxieties in people’s minds have receded. value for all.
The expansion and diversification of Business and consumer sentiments are
the distribution network over the years improving, and the economy is showing Warm regards,
have further helped us to strengthen our signs of moving towards normalcy, and Chandra Shekhar Ghosh
deposit book. Total deposits for the year potentially fast-paced growth. While Managing Director & Chief Executive Officer
11
Board of Directors
Dr. Anup Kumar Sinha
Non-Executive (Independent) Chairman
Dr. Anup Kumar Sinha is the former Director of Heritage Business School (‘HBS’) and currently designated as
Chief Mentor. He has also served on the Board of NABARD.
Dr. Sinha has taught at Presidency College and Indian Institute of Management Calcutta (‘IIMC’). He served
IIMC as Professor of Economics for 25 years. He served three terms on the Board of Governors at IIMC and also
as the Dean during 2003-06. He received the Best Faculty Award from the IIMC Alumni Association in 2003
and 2004. In 2012, 2014 and 2015, he won the Most Popular Teacher Award from the outgoing MBA students
of IIMC.
He has held visiting appointments at University of Calcutta, Indian Statistical Institute, University of Southern
California, Washington, University at St. Louis, Curtin University at Perth and Kyoto University. He has been
actively engaged in training and consulting for a number of organisations in the public and private sector, as
well as for international agencies in the fields of economics. He has also authored publications on various
topics including economics, rural economy, management, etc.
Dr. Anup Kumar Sinha is an economist with a Ph.D. from the University of Southern California, Los Angeles. He
is also an M.S. in Economics, University of Rochester, USA and Master in Economics from University of Calcutta.
Chandra Shekhar Ghosh

Managing Director & Chief Executive Officer
Mr. Ghosh has been one of the foremost proponents of microfinance in India. He has more than 30 years
of experience in the microfinance and development spaces. He founded Bandhan in 2001 as a not-for-profit
enterprise that stood for financial inclusion and women empowerment through sustainable livelihood creation.
He was at the forefront of its transformation into an NBFC-MFI and finally a universal bank in August 2015.
Mr. Ghosh is the former President of Bengal Chamber of Commerce & Industry (BCC&I) and the former
Chairman of CII, Eastern Region. He is also a member of Managing Committee of Indian Banks’ Association
(IBA) and a member of Corporate Governance Council, CII. He co-chairs the Financial Inclusion Committee of
Federation of Indian Chambers of Commerce and Industry (FICCI). Further, he is a member of the Committee
on Micro, Small and Medium Enterprises (MSME) sector, Government of West Bengal, along with being a
member of College Advisory Committee (CAC) in CAB, Pune. He has also been a distinguished invitee on the
Council of Management, AIMA. Mr. Ghosh was elected as ‘Senior Ashoka Fellow’ in 2007 by Ashoka Foundation
(social entrepreneurship award).
He holds an MSc in Statistics and also attended the HBS-ACCION programme on Strategic Leadership at Harvard
Business School in April 2006. He has completed a Certification Programme in IT & Cyber Security conducted by
Institute for Development and Research in Banking Technology (IDRBT), established by the RBI.
Dr. Allamraju Subramanya Ramasastri

Independent Director
Dr. Ramasastri is widely known for his commendable domain knowledge in Banking technologies such as
cybersecurity, analytics, Cloud computing, and payment systems, in addition to his other areas of expertise. He
was the Director of the Institute for Development and Research in Banking Technology (‘IDRBT’) from 2014-
2020. Prior to joining the IDRBT, he was the Chief General Manager-in-charge of the Department of Information
Technology at RBI. In RBI, he had spearheaded many important projects, including the implementation of the
Next Generation RTGS, adoption of XBRL and ISO 20022, and preparation of the IT Vision of RBI from 2011-17.
He has authored two books titled ‘Quantitative Methods for Valuation of Assets’ and ‘Quantitative Methods
for Banking and Finance’. He had also guided the Bank of Mauritius, Bank of Malaysia and Bank of Uganda on
the implementation of Data Warehouse, XBRL, etc., and delivered talks on standards and technology for data
reporting at the International Monetary Fund and Bank of International Settlements.
Dr. Ramasastri holds a PhD in Finance from the Indian Institute of Technology, Madras and has held top ranks
in M.Sc. (Statistics) from Madras University and B.Sc. (Statistics) from Loyola College, Madras. He also attended
Advanced Management Programmes at the University of Oxford and Kellogg School of Management.
12
Dr. Aparajita Mitra

Additional Director (Independent)
Dr. Mitra, a Doctorate in Agriculture (Dept. of Plant Molecular and cellular Biology, Bose Institute), has
extensive experience and expertise of more than three decades in the field of agricultural sciences. She has
done extensive research and published articles in the field of commercial micropropagation of Horticulture/
tree and medicinal species, DNA extraction and sequencing, DNA fingerprinting (plants), gel electrophoresis,
protein and isozyme analysis, etc. Dr. Mitra is a recipient of the CSIR Fellowship and the ‘Women Scientist
Award’ from the Department of Science and Technology, Government of India, 2005 for the project
“Identification of Disease Resistant Genetic Markers in Bamboo Spp”.
She has also guided various postgraduate students from well-known universities on their projects in the
domain of Plant Tissue culture part. She has been associated with various organisations, such as:
Director on the Board of Uncarbon Private Limited (since February 2022) Director and Editor of Artfact,
Arts Acre Foundation (since 2021) Member, Advisory Board of the DBT Sponsored Post Graduation Diploma
– “Quality Assurance Testing of Tissue Culture raised Plant“, a DBT (GoI) supported Skill Development Program,
Certified by “Life Science Sector: Skill Development Council” at Rama Krishna Mission Vivekananda Centenary
College, Rahora, Kolkata Visiting faculty in the Institute of Agricultural Sciences, University of Calcutta (since
2014) Tissue Culture Consultant in Pallishree Limited, a Department of Biotechnology (‘DBT’) certified
commercial lab, since its inception (since 2011) and R&D-Head, since 2021 Laboratory and Organic farming
consultant in Maple Orgtech Private Limited and Tega Industries Private Limited (since 2016) Research Officer
in The Agri-Horticultural Society of India (2002-2004 and 2008-2020) As DST Women Scientist in the Bose
Research Institute (2005-2007)
Dr. Mitra is a Ph.D in Agriculture, M. Tech., (Applied Botany, Dept. of Agricultural Engineering, IIT Kgp) and B.Sc
in Botany (Hons), Chemistry and Zoology. She has also done hands-on training in cell cloning from National
Bureau of Fish Genetic Resources, Lucknow.
Divya Krishnan
Additional Non-Executive Non-Independent Director
(Nominee of BFHL)
Ms. Divya Krishnan is a finance and investment banking professional and is currently a visiting faculty at
Ashoka University. Ms. Krishnan was formerly Chief Investment Officer (‘CIO’) and Head of Investment at SBI
Mutual Fund. Prior to becoming CIO, Ms. Krishnan worked as a fund manager at SBI Funds.
Post her voluntary exit from SBI in 2001, Ms. Krishnan has served as a consultant to a number of leading
non-profits and NGOs. She worked closely with non-profit institutions, catalysing growth through impactful
programs. She has been an invitee as Scholar-in-Residence by a leading private University in the US, guiding
students to effectively support developmental initiatives in India.
Ms. Krishnan was a member of the Working Group on Disabilities to develop the 12th Five Year Plan for the
local state government. She has also served as a volunteer teacher for slum children in Mumbai and for primary
school children in Hong Kong and in Trivandrum.
Ms. Krishnan did her MBA at IIM Ahmedabad and was awarded a prestigious industry scholarship for
outstanding scholastic achievement during her time there. Ms. Krishnan is an alumnus of Shri Ram College of
Commerce, Delhi and La Martiniere School, Kolkata.
Dr. Holger Dirk Michaelis

Nominee Director (Caladium Investment Pte. Ltd.)
Dr. Michaelis is currently a Senior Vice President of GIC Private Equity & Infrastructure (PE&I) Singapore office,
overseeing GIC’s direct investments into financial sector companies globally. He has extensive experience in
private equity and as a strategic adviser to financial services companies.
Previously, he was a Partner and the Managing Director at the Boston Consulting Group where he worked
in Germany and China. He advised clients in corporate and investment banking, transaction banking, retail
banking, insurance and asset management on topics of strategic relevance including corporate and business
line strategies, organisation, operations, IT and risk management.
Dr. Michaelis is an economist and holds a doctorate degree in Economics from WHU Koblenz, Germany. He
pursued his post-graduation in Business Administration (Finance) from UT Austin, USA. He has co-authored
various BCG publications on Banking, M&A and Insurance.
13
N V P Tendulkar
Mr. Tendulkar is a qualified Chartered Accountant and Company Secretary. He has more than 41 years of
experience in Finance, General Management & Operations in IT, Telecom and Manufacturing industries. He
has extensive experience working with American and European based multinational organisations and has
successfully resolved multi-dimensional, dynamic and challenging issues.
He was an Executive Director with Hewlett Packard Enterprise India Limited for almost 14 years. He was also
associated with many IT Companies including Tata Telecom, AT & T, USA, Digital Global Soft etc. Currently, he is
an Independent Director of Centrum Capital Limited and Siemens Gamesa Renewal Power Private Limited.
Mr. Tendulkar is the recipient of many awards such as CFO 100 Roll of Honor in 2012 and 2016 from 9.9 Media,
Best CFO of HP worldwide and CNBC TV 18 CFO award.
Philip Mathew
Additional Director (Independent)
Mr. Philip Mathew, a HR practitioner, has almost 30 years of work experience. He left HDFC Bank as the
Chief People Officer in 2018 after his association of around 16 years. During his tenure at HDFC Bank, he
was involved in various HR related initiatives, such as, successful transition to a cloud-based enterprise-
wide HR application, amongst the first to adopt the new governance and risk management standards set by
Compensation Guidelines by RBI, implementation of HR metrics, recognition as ‘Best Employer’ in the BT
Survey in 2016, etc., and with regard to training and development, online learning, revisiting instructional
design and systematic measurement of training effectiveness of designated programmes.
His experience as a HR practitioner spans across organisations involved in manufacturing and financial services.
His career journey has been through the entire landscape of HR with significant depth. He was Plant HR In-
charge at Rallis India Ltd and Marico Industries Ltd, Project Lead for roll-out of new PMS at ANZ Grindlays Bank,
a brief corporate stint at Colgate-Palmolive before becoming Head HR at Sharekhan.com and thereafter, moved
to HDFC Bank in 2002, where he started as AVP-HR Operations and grew to become the Chief People Officer for
HDFC Bank. Currently, he is associated with development of HR related solutions.
Mr. Mathew is M.A (PM & IR) from the Tata Institute of Social Sciences and B.Sc (Statistics) from the
Loyola College.
Santanu Mukherjee
Mr. Mukherjee is the former Managing Director of the erstwhile State Bank of Hyderabad, an associate bank
of the country’s largest lender - State Bank of India. He has four decades of experience in the fields of banking,
finance, treasury operations, risk management, etc. in various capacities. From 2013 to mid of 2014, he was
acting as Chief General Manager of State Bank of Bikaner and Jaipur. He has also worked as a Chief Executive
Officer of State Bank of India, Paris from 2004 to 2008. He joined as a probationary officer and carried out
important domestic and overseas assignments in the SBI Group.
Currently, he is also on the Boards of Muthoot Housing Finance Company Limited, Suven Life Sciences
Limited, Sumedha Fiscal Services Limited, Rainbow Children’s Medicare Limited, etc. He is also on the Board of
Governors of the Institute of Management and Technology Hyderabad.
Mr. Mukherjee holds a B.Sc. (Honours) degree from Presidency College under the University of Calcutta and
CAIIB from the Indian Institute of Bankers.
14
Subrata Dutta Gupta

Mr. Gupta has a rich experience of more than 35 years in Asset-based Financing, with 20 years dedicated
to the Mortgage industry in India and 11 years to Development Finance. His domain expertise has been in
investment and advisory services related to the mortgage industry, covering areas like strategic planning,
business plan, underwriting and policy formulation. He has an extensive experience in mentoring the workforce
at startups in the Housing Finance sector, grooming and upskilling them on lending to the informal and low
income borrowers, including developing business plans and data analytics platforms.
Mr. Gupta worked at the International Financial Corporation (‘IFC’), World Bank Group for more than a decade
from 2005 to 2019 and retired as the Principal Financial Officer of IFC. During his stint at IFC, he worked in
South Asia, South East Asia, and Central Asia. He has also been associated with BHW Birla Home Finance as the
Managing Director, with SREI International Finance as Senior Vice President and with Classic Financial Services
& Enterprises Ltd. as the Regional Manager for Operations.
Currently, he is a member of the Board of Joyville Shapoorji Housing Private Limited as a Nominee Director of
Asian Development Bank.
Mr. Gupta holds a Master of Arts degree in Economics from the Delhi School of Economics.
Suhail Chander
Mr. Chander is a veteran Banker. He has 38 years of rich experience in Banking Operations, Trade Finance,
Retail, Microfinance and Wholesale Banking. His extensive experience covers the entire gamut from retail,
microfinance, small and medium enterprise, mid-sized corporates, large corporates and Investment Banking.
Mr. Chander started his professional journey in banking as a trainee at Grindlays Bank in 1983. He then held
various senior positions at ABN AMRO Bank NV in India, Indonesia and Singapore. Thereafter, Mr. Chander
joined IndusInd Bank’s core management team and retired in March 2020 from there as the Head of Corporate
and Institutional Banking.
Currently, he is a member of the Board of Canara Robeco Asset Management Company Limited.
Mr. Chander is a Chartered Accountant. He also holds a Bachelor of Arts (Honours) degree in Economics from
the University of Delhi.
Thekedathumadam Subramani Raji Gain

Ms. Gain has recently retired as the Chief General Manager and state in-charge at MP Regional Office of
NABARD. She had also held the position of Executive Director at Bankers Institute of Rural Development
(BIRD). She has over 34 years’ experience in the field of agricultural and rural development. She has worked
in various capacities in NABARD where she was involved in capacity building and conducted programmes
on organisational and institutional development, microfinance, self-help groups, gender and participatory
management. She has been a Faculty Member at the BIRD, Lucknow and Technical Advisor at UP Diversified
Agriculture support Program, a World Bank Project.
She is a postgraduate in Agricultural Physics from Indian Agricultural Research Institute, New Delhi and holds
Certificates on Land Use Management and Climate Finance from World Bank Institute.
Vijay N Bhatt
Mr. Vijay N Bhatt is a qualified Chartered Accountant and a Bachelor in Law (Gen). He has 35 years of
experience in large, medium and small Indian and multinational businesses. Being in the audit profession,
he has a good understanding of the business environment, business risks, controls, accounting and financial
reporting issues relevant to businesses operating in India.
He was with KPMG for over 10 years (Senior Independent Director), with E&Y for 2 years and with R S M
& Co. Chartered Accountants for 19 years and for a few months with Lovelock Lewis. He was also a senior
Independent Director of BSR & Co. Chartered Accountants. He has been a member of various committees
of the Institute of Chartered Accountants of India, such as: Accounting Standard Board, Audit Standard
Board, Information Technology Committee, Financial Reporting Review Group and Professional Development
Committee of WIRC. Currently, he is on the Board of JK Files & Engineering Limited and Qontrac Prints
Private Limited.
15
Core Management Team
Arvind Singla Kamal Batra

Head – Operations & Technology Head – Assets
Santanu Banerjee Sunil Samdani

Head – Human Resources Chief Financial Officer
Biswajit Das Manoj Kumar Mauni

Chief Risk Officer Chief Technology Officer
Nand Kumar Singh Ronti Kar

Head – Banking Operations and Customer Service Chief Information Officer
Siddhartha Sanyal Sudheer Reddy Govula

Chief Economist and Head Research Chief Compliance Officer
Sujoy Roy Arvind Kanagasabai

Head-Branch Banking Head – Treasury
Jagannadha Rao Suvvari P Ramaswamy

Head – Legal Chief of Internal Vigilance
Ravi Lahoti Satyajit Ghosh

Chief Audit Executive Incharge – EEB and SBAL
Suresh Srinivasan Iyer Indranil Banerjee

Head – Housing Finance Company Secretary
16
Diversified Product Suite

A varied product portfolio helps your Bank achieve its desired state of being
a bank for all. With a focus on consumer needs, your Bank has a fine mix of
assets and liability products.
RETAIL LIABILITY PRODUCTS
The overall deposit book

of the Bank has touched
₹96,331 crore with the CASA
Business at ₹40,079 crore.
The deposit book size of your Bank has
grown by 24% during FY 2021-22 over
FY 2020-21 and the CASA book-size has
increased by 18% during the same period.
In line with the goal of geographical
diversification of your Bank, the growth
in deposits in east and north-east was
18% whereas in areas outside of east and
north-east was 31%.
Your Bank continues its focus on affluent
business consisting of the flagship Savings
products like Elite and Premium, which
during the same period has grown
by 33%.
The Senior Citizen customer base has
contributed significantly to the value
growth of the Bank. In view of the Your Bank has also launched three new Current
differentiated banking, financial and
lifestyle needs of this segment, your Bank
Account products in FY 2021-22 namely Biz Deluxe
introduced the Respect Programme to Current Account, Biz PRO Current Account and
meet their specific needs. Start-up Current Account.
The Respect Programme, addresses their
financial needs like medical emergencies
and lifestyle benefits in terms of discounts
on availing healthcare facilities. A specially cater to all segments of business and
Key Highlights of Deposit Products:
designed Respect ID card is offered to self-employed customers and provide
preferential banking services and 1. Attractive interest rates for CASA,
senior citizen customers with emergency term deposits and recurring
contact details and priority services at all solutions as per their needs.
deposits
branches across the country. With the changing business dynamics,
there has been a significant rise in the 2. 0.75% additional interest on fixed
Your Bank launched three new current deposits for senior citizens
account products in FY 2021-22 number of start-up companies in India.
namely Biz Deluxe Current Account, Being a newly-emerged, fast-growing 3. Diverse product portfolio for
Biz PRO Current Account and Start-up business that aims to meet a marketplace resident as well as non-resident
Current Account. The introduction of need, the banking needs of start-ups are Indians
these new variants enable your Bank to different from traditional businesses.
17
Your Bank has therefore introduced the enjoy more benefits by maintaining
Start-up Current Account with features higher balances.
and benefits best suited for them. The
Considering that digital transactions are
Bank has also introduced a current
low cost, scalable and offer ease of use,
account product to meet the financial
your Bank has taken the initiative to reach
requirements of professionals, a growing
out to a larger section of customers to
community in India. The Biz PRO Current
opt for online transactions through the
Account has been designed to fulfil the
digital channels.
unique banking needs of professionals.
Your Bank has also introduced the Biz Your Bank has been authorised by the RBI
Deluxe Current Account for traders, for undertaking government business on
distributors and wholesalers of various behalf of the RBI as an Agency Bank. Your
industries who experience seasonal Bank has already entered into an agency
demand, that peaks and lows in specific agreement with the RBI for this purpose.
months. The features of this product
will help customers in this segment to
DIGITAL PORTFOLIO
In the last two years, digital

banking has seen rapid,
large-scale adoption among
various users in the world.
It is more so in India, where
digital banking and payments were still
picking up. Propelled by the need to
maintain social distancing and stay at
home, consumers quickly adopted digital
banking and payments to fulfil their needs
from the comfort of their home. The
government’s digital drive also fuelled
digital adoption.
To be a part of the digital wave and
continue to be a bank of choice for
consumers, your Bank has embarked on
a digital transformation journey. It has
reimagined the future of banking through The Bank’s digital
hyper-contextualisation and is building a
personalised digital banking experience for
portfolio and channel
Reimagining the Banking Experience strategies provide an
its customers. Advanced product strategy
Resilience in the face of impediments has
and data analytics are critical to achieve anytime, anywhere,
paved the path for innovation for Bandhan
these and your Bank is making quick
Bank to adopt new-age banking. In this
easy and fast banking
strides in these areas.
journey of digital transformation, the experience to customers.
The Bank’s digital portfolio and channel primary focus has been on: Its digital offerings cater
strategies provide an anytime, anywhere,
easy and quick banking experience to I. Banking that’s convenient through to both urban, corporates,
customers. Its digital offerings cater to redefining next-gen technology-enabled individuals and the
individuals and businesses across metro, self-service offerings unbanked population of
urban, semi-urban and rural India.
this country.
18
II. Banking that’s personalised through

product innovation and external
integration The user interface of
III. Banking that’s reachable through mBandhan is extremely simple,
multichannel customer touchpoints making it easy for even non-
tech-savvy customers to use
Key Digital Initiatives this Year
i. Bandhan Bank UPI App – 2.0
mobile banking.
The BHIM Bandhan UPI app allows
users to link multiple bank accounts
in one app and make regular
payments, check account balances
and own complete control over their corporate admin functionalities, and In the year in review, the Bank
accounts from a single banking app. enhanced and simplified payment introduced a merchant payment
The Bank’s app has an inbuilt UPI 2.0 capabilities. The Bank is also in the solution called NeoPlus Merchant
functionality including IPO mandate process of redesigning its Retail to increase sales, reduce the cost
acceptance, OD account linkage Internet Banking experience. of cash management and improve
and Sign QR in addition to UPI 1.0 customer service. With NeoPlus
iii. Mobile Banking (mBandhan App)
functionalities. Merchant SoftPOS, through a simple
mBandhan is the mobile banking phone-based app, the merchant
ii. Internet Banking application of the Bank. The user gets access to convenient options of
The Bank offers feature-rich Internet interface of mBandhan is simple and receiving payments from customers.
banking services to customers to help light, making it easy for even non- It has zero installation fee, provides
them meet their everyday banking tech-savvy customers to use mobile contactless transaction capabilities
needs. It provides comprehensive banking. Through this app, customers and digital receipts, and reports
account summary, balance enquiry, can access and manage their accounts and supports multiple types of
transaction history, a unified view 24x7 on their smartphones. They can transactions, i.e., sales void, partial or
of all linked accounts, and mini and check their account balance, make complete refunds. Furthermore, the
detailed account statements. It fund transfers, request a chequebook, application is equipped to record cash
further facilitates online booking of open a fixed deposit, block a debit transactions to enable a 360-degree
fixed and recurring deposits, 24x7 card, and much more. view of payments and collections
inter and intra-bank fund transfers and ‘Khaata’ feature to track
The work on a new, completely
via NEFT, RTGS, IMPS and Quick pending payments.
different and powerful mobile
Pay. Service requests can also be
banking experience has been initiated v. USSD Banking
initiated online, including chequebook
by the Bank.
request, stop payment, user details Your Bank, being widely present in
modification, utility bill payment, iv. Integration with Merchant Payment rural and semi-urban areas, has a
and others. Aggregator and NeoPlus Merchant customer base that is yet to migrate
The Bank is committed to providing to high-speed internet connectivity.
The Bank has also launched a
a seamless e-commerce payments The Bank offers its customers the
revamped Corporate Internet Banking
experience across stores and apps for convenience of USSD banking
portal with an improved user-friendly
customers. The Bank partners some whereby customers can avail of
interface and dashboard, newly
of the large payment aggregators to basic banking services without data
introduced online service requests,
facilitate customer payments. connectivity. Users can dial *99# to
19
avail of a range of financial and non- ix. Product Information Road Ahead
financial banking services in English In addition to its deposit products, The Bank continues to promote the
and regional languages. the Bank has introduced a new phygital culture with new enhancements,
investment alternative for customers. product and service suite offerings for its
vi. SMS Banking
Now, customers can invest in equity, customers through the digital channels.
To be a ‘bank that’s reachable’, the The Bank plans to leverage the power of
liquid, tax-saving and debt funds
Bank has SMS Banking in its product data analytics and artificial intelligence
from their retail Internet banking
suite. Even without a smartphone and to provide superior customer experience
platform with a single sign-on
activated data plan, users can access and greater operational efficiency.
capability. Customers can also view
their account information with the
policy recommendations based on The Bank is on the path of extensive
help of shortcodes communication via
their risk profile, plan financial goals, digital transformation during the
SMS 24*7.
invest in NFOs, import their external current financial year by making heavy
vii. Missed Call Banking investments onto a single platform, investments to transform its digital
Missed call banking is a service from and track their entire portfolio. asset offerings. The Bank is further
Bandhan Bank where users can The Bank is revamping the digital redefining its lending journey across its
access their account information account opening journey by digital platform and enabling EEB digital
with a missed call. Users can get their introducing video KYC capability to collection enablement by offering services
account balance and mini statement introduce a complete KYC-enabled convenient to end-users.
by giving a missed call from their digital account. Furthermore, the
registered mobile number on a Bank is enabling UPI over IVR voice
pre-defined number 24x7. capability for loan repayment, bill
viii. Tab Banking payment and other utility payments.
Tab-based banking for EEB customers
helps accelerate the account
opening process, eases paperwork
on documentation, reduces cost,
minimises human error and provides
the Bank flexibility to serve customers
beyond its branches. Tab banking
comes with comprehensive banking
features, including collection,
disbursement, withdrawal, balance
enquiry and NPS. Your Bank has been
successfully migrating EEB and SBAL
customers from traditional hand-
held devices to a state-of-the-art
tab banking solution. These have The Bank is revamping the
led to significant improvement in digital account opening
maintaining and enhancing customer journey by introducing video
relations. Currently, more than 35,000 KYC capability to introduce a
employees across all banking units complete KYC-enabled
are using the Bank’s tab banking
solution, with more than 18.50 lakh
digital account.
transactions being logged through the
platform daily.
20
EMERGING ENTREPRENEUR BUSINESS (EEB) & SMALL BUSINESS AND AGRI LOANS
Group Loans
Suchana Loan
Timely funds to start a new business or grow an
existing one. Loan size is from ₹1,000 to ₹25,000.
However, this product has since been discontinued.
Srishti Loan
Loan to scale up home-based business. Loan size is
from ₹26,000 to ₹1,50,000.
Subriddhi Loan
Loan amount is up to 50% of the disbursement
amount of running primary loan. Sanctioned to help
customers fulfil their extra business requirement
during their ongoing loan.
Samadhaan
Loan from ₹5,000 to ₹15,000 to support existing EEB
borrowers by providing liquidity support to their
businesses during pandemic.
Initiatives in FY 2021-22
Suraksha Loan
Loan size is up to ₹15,000 and is sanctioned to help Your Bank rose to the challenge enable customers to pay online.
existing customers meet their emergency expenses, to face the disruption caused by
During the lockdown, many of
e.g. medical, drinking water and sanitation COVID-19 and implementation of
the Bank’s customers lost their
Sushiksha Loan restrictive protocols. Following
source of income, making them
Loan size is up to ₹10,000 and is sanctioned to help lockdowns and social distancing
financially vulnerable. It designed
customers meet expenses towards the education of norms, the Bank split the teams
specialised financial products to
their children. and introduced a roster-based
enable the customers to tide over
attendance system to reduce the
Small Business and Agri Loans (SBAL) the crisis. In addition to the various
numbers in each working group.
Sahayata Loan business loan products, the Bank is
The Bank conducted awareness
Loan to fund growing business needs of existing encouraging customers to develop
programmes to educate employees
EEB customers. Loan amount is from ₹51,000 to a habit of small savings to ensure
and customers about COVID-19 and
₹2,00,000. financial stability during crises.
the need for vaccination. Your Bank
Samriddhi Loan also stood by its customers and The EEB vertical has been driving
Loan to fund growing business needs of existing EEB supported them with credit facilities the transformation of customers
customers. Loan size is from ₹75,000 to ₹3,00,000.
to tide through the pandemic. at the ground level. The Bank has
already started migrating high
Micro Bazaar Loan The Bank is focussed on educating
vintage and quality customers to
With a loan size from ₹26,000 to ₹1,50,000, this the EEB customers on the merits
SBAL from their existing group loans
product is for small entrepreneurs, who have an of digital banking. The Bank is
thereby giving them an opportunity
existing super-saver account with your Bank. This loan providing the necessary training
provides financial support to deposit customers for to avail higher ticket size to fuel
to make customers literate about
their working capital needs. their business growth.
digital payments or even the
Micro Home Loan benefits of seeding bank accounts
Your Bank offers Micro Home Loan ranging from with mobile number and Aadhaar.
₹1,00,000 to ₹10,00,000 to existing EEB borrowers for The Bank also initiated a drive to
construction as well as renovation of their houses so
that their dream of their own house does not remain
unfulfilled.
Two-Wheeler Loan
Your Bank offers two-wheeler loans ranging from
₹30,000 to ₹1,20,000 to existing EEB borrowers.
It brings them a step closer to their aspirations.
21
HOUSING FINANCE
Your Bank offers loans

to individual customers
for the purchase,
construction, repair or
renovation and extension of dwelling
units. Loan against Property (LAP)
on self-occupied residential property
and loan against rent receivables on
commercial property is also offered.
Loans are offered to salaried and self-
employed individuals in line with your
Bank’s objective to increase financial
inclusion, as well as loans to New to
Credit customers.
During the year, the Bank extended
housing loan services to 25 additional
centres, thereby expanding its presence
to 356 centres across 20 states and two
Union Territories.
Your Bank continues to focus on housing The Bank also started a Direct Sales Your Bank also follows the principle of
finance and has disbursed ₹5,253 crore Agent (DSA) channel for sourcing home risk-based pricing, and interest rate on
during the year clocking a growth in loans. The DSA channel is doing well and loans is correlated to the individual credit
disbursement of 43%. Consequently, the its contribution has been consistently score computed on multiple parameters.
loan book has grown to ₹23,560 crore increasing. To improve services, your Bank Existing customers who are serving
indicating a growth of 17%. is strengthening its customer support floating rate loans linked to previous
network and will soon launch digital benchmark rates are also being offered
During the year, your Bank continued to
journeys for customer onboarding and an option to convert their loans to
focus on affordable home loans with the
online support. EBR-linked loans.
majority of loans being below ₹20 lakh.
It also launched a special campaign In keeping with market trends, the Bank A major portion of the Bank’s housing
for higher ticket size loans with rate offers loans at Floating Rates linked to book successfully meets the criteria for
of interest starting from 6.40%. The an External Benchmark Rate (EBR). Your priority sector lending as the focus area
campaign received good response and Bank has adopted the one year repo rate remains affordable housing.
your Bank achieved its highest ever announced by the RBI as the EBR rate.
quarterly disbursement figure in the last
quarter of the year.
During the year, the Bank extended housing

loan services to 25 additional centres, thereby
expanding its presence to 356 centres across
20 states and two Union Territories.
22
RETAIL ASSETS
With an objective to
serve the financing needs
of larger population, and
to maximise the profits
by diversifying the risk, your Bank
has launched and strengthened
several retail asset products in
FY 2021-22. Customers can now
avail various loans like gold loans,
personal loans, two-wheeler loans
and car loans from the Bank.
Gold Loan aims at fulfilling urgent

monetary needs with ease of access,
simplified documentation process and
quick turnaround time. Gold loans are
given from ticket size of ₹10,000 to
₹25,00,000.
The Bank has revamped Personal Loan
and changed the model of sourcing by
dedicated sales team, catering to existing
customers and to start sourcing for new
to bank customers as well. The personal Customers can now avail various loans like gold
loan product has started channel partner loans, personal loans, two-wheeler loans and car
sourcing from FY 2021-22 to extend loans from the Bank.
distribution network in major markets
to diversify and expand the portfolio.
Personal loans are given from ticket size
₹50,000 to ₹15,00,000 for tenure up to 5
years at competitive rate of interest. The
Bank ramped up this book in FY 2021-22.
Erstwhile, Two-Wheeler Loans were and approved two-wheeler loans in just ₹50,000 to ₹1 crore, in order to cater
sourced by bank branches for existing 5 minutes for more than 90% of cases. to various customer profiles – salaried,
customers only. The Bank redesigned The two-wheeler loan ranges from ₹5,000 self-employed as well as non-individual
the product as per market standard with to ₹5,00,000. entities. With the help of an extensive
introduction of dealer/channel based manufacturer and dealer network, the
distribution model. The objective of the Car Loan was launched by the Bank
Bank aims to provide the best deals to its
programme is to provide financing to in Q2 of FY 2021-22, to meet the
existing as well as new customers.
existing as well as new to bank customers customers’ aspirations of owning a car.
for purchase of new two-wheelers. The The Bank designed various product
Bank leveraged on the digital capabilities, schemes for loan amount ranging from
23
COMMERCIAL BANKING PRODUCTS
Agricultural Loans
Credit for agricultural The Bank supports farmers’
activities helps production,
investment in agriculture
empowers farmers, and
supports this sector, the backbone of the
infrastructure, its repair
Indian economy. Your Bank offers credit and maintenance, besides
to fund seasonal agricultural operations consumption needs.
and allied activities. It supports farmers’
investment in agriculture infrastructure,
its repair and maintenance, besides
consumption needs. Loans and
customised product solutions are offered
at attractive rates of interest with a Small & Medium Enterprise Some of the SME loan products offered
dedicated relationship manager to Loans by your Bank are as follows:
provide prompt service. Entrepreneurs of small and medium SME Business Connect
businesses need credit to set up the These loans help entrepreneurs finance
business, fund business expansion or working capital and capital expenditure
Small Enterprise
even for technological upgradation. against primary security of current
Loan
Designated branches of your Bank or fixed assets and collateral security
Micro, Small and Medium offer an array of loan products at including residential or commercial
Enterprises form the competitive rates of interest to micro, property or liquid securities. These
backbone of the Indian economy and small and medium enterprises (MSMEs) loans, ranging from ₹10 lakh to ₹2 crore,
thus nurturing this segment is crucial to meet their working capital or capital are provided in the form of fund-based
to an all-round growth of the country. expenditure requirements, including non- facilities like overdraft, cash credit, or
Small Enterprise Loan caters to these fund-based facilities. The interest rate term loan and non-fund-based facilities
businesses, who are in need of short offered is based on the applicant’s profile like letter of credit or bank guarantees.
to medium term loans to support and credit rating. These are secured
their businesses as well as to expand it loans of more than ₹10 lakh extended to SME GST Connect
further through purchase of stock, asset businesses involved in manufacturing, These loans for financing entrepreneurs’
creation, etc. trading, and services. need for working capital are provided as
Currently, your Bank offers SEL loans an overdraft or fund-based facility, against
To promote ease of process, your
ranging from ₹1,00,000 to ₹25,00,000 collateral security in the form of current
Bank has initiated deployment of Loan
at flexible tenures up to 4 years with assets or property and liquid securities.
Origination System (LOS), that automates
competitive interest rates and minimal The loan quantum ranges from ₹25 lakh
and manages the end-to-end loan
documentation. Your Bank has a up to ₹2 crore.
process. The Bank is also in the process of
dedicated relationship team which takes implementing of cash management and
care of all the banking-related requests trade services for commercial clients.
of the customer. Your Bank ensures
loan processing is completed in lowest
timeframe. To further improve market
competitiveness, your Bank has initiated
deployment of Loan Origination System,
which automates and manages the
end-to-end steps in the loan process Small Enterprise Loans
thus improving loan turnaround time
and quality.
cater to businesses, which
are in need of short to
medium term loans.
24
Mortgage Loans Non-Schematic Loans Loans to Non Banking Financial

There are two types of mortgage loans These loans are meant for SMEs or Company (NBFCs) & NBFC-Microfinance
- loan against property and loan against mid-corporate borrowers as per extant Institution (MFI)
rent receivables sanctioned to landlords guidelines who are not covered in existing The Bank considers institutional lending
of bank premises. products or loan schemes and ticket size to NBFCs/HFCs & NBFC-MFIs, primarily
₹10 lakh. These loans may be extended for on-lending activities. The NBFC-MFI
Loans against property are sanctioned
in the form of secured credit facilities business includes lending to Microfinance
for general business purposes and
including term loan, cash credit, overdraft Institutions, Societies and Trusts engaged
provided against collateral security that
or lease rental discounting or as non- in microfinance activities. While most of
may encompass residential, commercial,
fund-based facilities like letter of credit or these loans are extended as Term Loans,
or industrial and non-agricultural property
bank guarantee. the Bank also has credit exposure through
or liquid securities. The loan quantum
Direct Assignments and investment
ranges between ₹25 lakh and ₹10 crore
exposures through PTCs and NCDs.
and is granted as a term loan for a tenure
The NBFC (including Housing Finance
of up to 15 years.
Company) business primarily includes
Term Loan product for on-lending
purpose, and is also foraying into Working
Capital Loan, Direct Assignments and
Co-lending activities.
THIRD PARTY PRODUCTS

During the pandemic, where the
community weathered a storm
and bounced back after facing
unprecedented challenges, your
Bank stood by its customers,
partnering them on their life journey.
Through its robust and measured
third-party products distribution
business, your Bank leveraged its
branch network, customer-centric
processes, diligent product selection
and focussed partnerships. The Bank
is committed to providing one-stop
insurance and investment solutions
as a value-added service to its
customers.
The Bank leveraged emerging

opportunities across financial markets in
terms of enhanced product awareness
and digital adoption as well. Third-
party distribution of financial products, through banking channels will help needs. It will use personalisation to offer
including life insurance, non-life insurance further deepen your Bank’s relationship the right products to cater to customers’
and investment in mutual funds, is with its customers. needs and will focus on building a best-in-
evolving rapidly in a dynamic market. class distribution model.
Going ahead, the Bank will leverage
Therefore, building synergy with third analytics, customer insights and Non-Life Insurance
parties for marketing product offerings technology to better assess customer FY 2021-22 forced individuals to place
enhanced emphasis on planning their
25
finances and managing not Life Insurance
only their own health but The global pandemic over Having partnered with reputed and
also of their families. It has the last two years has professional players, select branches
also reinforced the need to highlighted the vulnerability of your Bank offer customers a wide
be equipped to redraw financial planning of life against unforeseen incidents. While variety of mutual fund products across
to ensure that unforeseen eventualities life insurance is necessary for the financial asset classes. The Bank is associated as a
do not have a deep-rooted impact on lives well-being of loved ones, it also helps to corporate agent for various mutual fund
and livelihood. In placing the customer’s achieve multiple life stage based financial companies like HDFC, ICICI Prudential,
interests first, the Bank distributes an goals. A variety of life insurance products UTI, Nippon India, SBI, Aditya Birla Sun
array of third-party non-life products. available in the market cater to different Life, Kotak, Axis, and Mirae Asset. These
requirements of policyholders, helping associations have enabled your Bank to
The Bank has aligned with reputed recommend specific schemes of these
them to cover the risk of loss of life,
players in the non-life insurance market fund houses, most suited to customers’
along with long-term savings, goal-based
for the distribution of general insurance requirements based on quantitative and
planning, and tax savings benefits.
products. Your Bank is a corporate qualitative evaluation parameters. Your
agent of HDFC ERGO General Insurance Your Bank currently offers a variety of Bank provides customers the convenience
Company and Bajaj Allianz General life insurance products across customer of availing mutual funds online through
Insurance Company for this purpose. Your segments. It is a corporate agent for Internet Banking.
Bank currently offers varied insurance insurance companies like Bajaj Allianz Life,
products to its customers including home, HDFC Life and Kotak Life, and provides Credit Cards
health, motor, personal accident, and fire, its customers with a wide range of life Your Bank offers a range
besides insurance for critical illnesses on a insurance products. These insurance of co-branded credit cards
non-risk participation basis. companies offer protection and savings to suit the customers’
products as well as annuity products with lifestyles. Currently, the
The Bank has essentially focussed on
immediate as well as deferred annuity Bank offers three variants of credit cards
the retail health market to enable retail
options and loan cover. Your Bank has with varied benefits: Reward points,
customers to build a safety net around
also started distribution of Unit Linked fuel surcharge waiver, and spend-based
health-related risks. In FY 2021-22, the
Insurance Plans (ULIP) in FY 2021-22. higher reward points credit cards that
Bank partnered with Niva Bupa Health
Insurance Company to offer customers offer purchase-related perks such as
Mutual Funds redeemable points, cashback, discounts
a wide bouquet of products to secure
The past year has seen and gift vouchers.
their health.
periods of both headwinds
and tailwinds in the global
financial markets and the
India story has not been any different.
The market for the adoption of retail
Your Bank offers
investment products has become dynamic customers a wide variety
across geographies. While knowledge of mutual fund products
percolation by the industry has increased across asset classes.
participation, digital enablers have
driven efficiency and ease of operations.
Professionally managed mutual funds
provide a wide basket of benefits in terms
of asset diversification and allocation,
disciplined savings, and tax benefits in
certain products.
Your Bank has also started distribution

of Unit Linked Insurance Plan (ULIP) in
FY 2021-22.
26
Information Technology
Information Technology has
played a pivotal role in your
Bank’s promising journey.
The Bank continues
to invest in leading technologies to
implement a robust, secure and digital-
first infrastructure to provide a superior
and seamless experience to customers.
In the last couple of years, the country
has witnessed a significant increase in the
usage of digital channels and the trend
is likely to continue in the foreseeable
future. The growing popularity and usage
of digital channels rely on technology to
ensure scalability, performance and up-
time. Your Bank has scaled up investments
in technology in view of its Vision 2025
and business strategy for growth. Your
Bank has initiated steps to implement ensure almost no data loss in case of any Your Bank has instituted
future-ready technologies that will support exigency. Over the next few quarters, all the modernisation of its
growth and enhance customer experience the applications used by the Bank and
through – its customers will be moved to the new technology architecture
DC/DR infrastructure, which will help with the core principles
1. Analytics by investing in Data Lakes deliver high availability, scalability, and of API and micro-services-
2. API/Micro-services-based architecture performance for all applications. Your
to provide agility and scalability
based architecture, lean-
Bank has also invested in the network
3. Refreshed application stack, including infrastructure and security systems to CBS and middleware to
the core banking system ensure the delivery of transactions in a decoupled tiers.
robust and secure environment.
The Bank continues to invest in building
robust, scalable, and state-of-the-art Your Bank has been working on a new
technology and has made significant application stack and onboarding
progress in its journey to implement applications to support its growth
a resilient, secure, and scalable objectives that are in an advanced for driving retention and deepening
infrastructure. In line with this, your Bank stage of implementation in the areas of customer relationships. This is a long-term
has instituted the modernisation of its digital banking, digital account opening, investment by your Bank to harness the
technology architecture in FY 2020-21 enterprise data lake, loan origination power of data and analytics for significant
with the core principles of API and micro- system, cash management system, risk value addition to its services.
services-based architecture, lean-CBS and management systems, loan management
middle-ware to decoupled tiers. The system, trade finance, supply chain, Your Bank is also exploring emerging
first phase of implementation is slated enterprise GL, and treasury. Automated technologies to support business growth
to commence in the first quarter of branch banking transactions will enable and vision, including cloud-native services
FY 2023-24. This initiative will help the partnerships with fintech and provide an and applications, conversational chat-bots
Bank scale in an agile and flexible manner. improved payments experience. based on ML/AI etc., while continually
The Bank’s ability to provide products working to ensure better customer value
To ensure an optimal experience for and experience. Your Bank has also
across the digital spectrum will lead to
customers and promote analytical invested in onboarding requisite talent
superior customer experience, drive cost
capabilities for businesses to offer to manage and execute projects besides
efficiency and reduce the go-to-market
contextual offers and products to assessing technology risk management.
time. Your Bank has set up its own
existing customers, the Bank is building The technology team is diligently and
infrastructure as part of the Data Centre
the Enterprise Data Lake using the relentlessly working with partners to carry
(DC) and Disaster Recovery (DR) Centre
Hadoop framework. This will enable out the transformation under the guidance
strategy, with state-of-the-art technology
the Bank not only to procure MIS for of the Management, the Board, and the
to ensure Zero Data loss of sensitive
regulatory reporting but also enable Technical Advisory Committee.
banking information. Additionally, your
advanced analytics for delivering hyper-
Bank has decided to invest in near DR to
personalisation, or digital models
27
Operational Excellence
The challenges and changes in the operating environment brought about by the pandemic
impacted complex operations across multiple locations that had to be managed remotely
and digitally. During the current financial year, even as the country faced multiple
lockdowns, your Bank remained agile and swiftly made the necessary changes to ensure
that its operations continued to provide individual and business customers with much-needed
support. For delivery of optimum customer experience, the Bank used hybrid working models
including work from home, remote access through virtual private network (VPN), digital employee
and customer engagement and off-site monitoring.
The approach of resiliently facing

uncertainty and emerging challenges,
and working out innovative solutions,
helped the Bank gain new learning. The
Bank’s employees worked remotely in an
effective manner. Customers too were
willing to adopt and use convenient
technology. As the Bank walks this new
path, it continually seeks to create value
across the customer lifecycle. Through
superior delivery mechanisms, the Bank
handles both high-touch and low-touch
operations with the same efficiency and
enhanced customer engagement. Your
Bank always remains responsive and
quick to adapt its approach in line with
customer’s requirements.
During the year in review, your Bank The Bank continued to put customers
focussed on the formalisation of a robust at the heart of every strategy amidst
business continuity plan, which helped the pandemic. Dedicated centralised
it to be resilient and manage operations operation teams worked round-the-clock
seamlessly. This plan is expected to to ensure best-in-class uptimes to ensure
support the management of critical safe and secure transactions. During
operations in future as well. FY 2021-22, your Bank saw a 130% surge
in the volume of digital transactions
Your Bank has made significant
(~33.59 crore) vis-à-vis FY 2020-21.
investments in creating a sustainable and
scalable operations ecosystem across The creation of a robust infrastructure
key areas. These efforts have served to has supported operations that service
ensure compliance, minimise errors and corporate and retail customers with
seamlessly deliver services that drive a products across treasury, commercial
positive customer experience. Your Bank loans, consumer loans, savings, current
continues to invest in building digital and accounts, and time deposits.
technological competencies to deliver
Your Bank has always upheld its
better customer service and increase
customer-first philosophy and continually
productivity while optimising costs. Your
endeavours to deliver high-quality
Bank’s technological upgrade initiatives
services. Regular awareness messages
have supported flexibility in operations,
and emails also encapsulate this focus.
agility, and quick adaptation of business
models to the evolving ecosystem.
28
The rights of the customers, the grievances at their first point of contact
commitment of the Bank, and the itself. The Bank has provided multiple
framework for customer service and channels to its customers to share
grievance redressal are well-formulated feedback on its services, as well as
and documented in various internal register their grievances. In this regard,
policies of the Bank. The Bank has a your Bank has introduced a new CRM
grievance redressal policy, duly approved application to further strengthen and
by its Board, and available in the public improve the efficacy of the grievance
domain for ready reference of the redressal mechanism. A dedicated central
customers. team oversees the resolution of customer
grievances received through various
Your Bank has a well-defined framework
channels. The internal ombudsman also
to monitor key customer service metrics.
ensures that all complaints rejected or
Various key committees including the
partially rejected by the Bank are resolved
Customer Service Committee of the
with one more level of check, which
Board, the Standing Committee on
essentially reduces the escalation of
Customer Service, and the branch-level
grievances to the Banking Ombudsman.
customer service committee meet on a
regular basis. These forums deliberate Overall, your Bank has been able to
on issues faced by customers and the establish key working standards that
initiatives taken by the Bank to enhance enable it to manage risks and run its
customer service. operations smoothly, in a compliant
manner, to accomplish desired business
Your Bank adopts the concept of ‘First
growth while keeping customer-centricity
Contact Resolution’, to provide prompt
at the forefront of all its operations.
and satisfactory resolution of customer
Your Bank adopts the concept of ‘First Contact

Resolution’, to provide prompt and satisfactory
resolution of customer grievances at their first
contact point itself.
29
Human Resources
The extended pandemic coupled with global economic turmoil and the ‘Great Resignation’ in global
labour markets has made it tough even for the most resilient. The new norm was unprecedented
and challenging. It demanded resetting, relearning, re-imagining a better version of ourselves.
By adopting digitalisation, your Bank has reinvented hiring, training, mentoring and performance
management in a risk-controlled environment.
Amid the COVID-19 pandemic, the Bank focussed on rapidly adopting the new normal to ensure
seamless business continuity in these times of uncertainty. During the year, the Bank hired and
inducted new employees, conducted training on upskilling and reskilling, and delivered multiple key
HR projects in its journey towards empowerment.
Fostering a Developed and Relearning the new Workforce Talent Acquisition and
Empowered Workforce in the ‘Great Resignation’ era Planning
A committed and dedicated workforce While the world was recovering from the Your Bank has developed a reputation of
is the key factor in building a resilient global pandemic, a new storm was being one of the very few that continue
Bandhan Bank. Your Bank’s Human brewing - the “Great Resignation”. to hire talent across the country. In the
Resources management strategy is According to the U.S. Bureau of Labour year in review, your Bank added more
focussed on making the Bank one of Statistics, 4 million Americans quit their than 10,000 employees, taking the total
India’s most valuable organisations jobs in July 2021. This phenomenon did to more than 60,000 employees. To aid
by displaying a supportive, engaging not spare countries like India. With a the realisation of the Bank’s ambitions,
and collaborative work environment, new reset to the rate of attrition, the there was a steady inflow of skilled and
that furthers customer centricity, BFSI industry was presented with an capable talent across verticals, thereby
performance-driven orientation and a unprecedented challenge to retain and maintaining a robust talent pipeline
future-ready outlook. hire talent. The HR team at your Bank was for the future. To provide a hassle-free
prompt to redesign talent management experience for candidates as well as
In the journey of more than six years,
practices and start building a talent funnel allow for remote functioning, the Bank
your Bank has strengthened its workforce
that would ensure continuity with desired digitalised the entire recruitment process,
nearly three times. With an employee
capacity in all departments and ensure right from sourcing to on-boarding.
base of 20,548 as on March 31, 2016,
efficient functioning of the Bank.
the Bank has expanded its strength to
60,211 employees as on March 31, 2022,
resulting in an exciting blend of the old
and new, in a culture of value-driven
growth, professionalism, and ethical
governance. Your Bank’s Human Resources
Despite the conditions presented by management strategy is
the second and third wave, your Bank focussed on making the Bank
had to ensure seamless continuity in its
one of India’s most valuable
services to customers in its more than
5,600 banking outlets, while ensuring
organisations by displaying
the safety and well-being of all its staff a supportive, engaging and
members. In these uncertain times, the collaborative work environment,
Bank acknowledged the contribution of that furthers customer centricity,
its employees and rewarded the eligible performance-driven orientation
employees with annual bonus as well
and a future-ready outlook.
as salary increments in line with its PMS
cycle, with a focus on role elevation and
grade elevation.
30
Talent and Performance

Management
Your Bank’s talent management strategy
aims at the holistic development of
employees by providing various avenues
for skillset enhancement and career
progression. The Bank has a structured
process for Internal Job Postings (IJPs)
and cross-functional resource allocation,
which enable employees to explore new
career options and enhance their skillsets
to match the fast evolving demands of
both the customer and the organisation.
Your Bank is keenly focussed on building
a strong talent pipeline. Periodic role
elevations across all levels is a culture
within the Bank and is a testament of
Periodic role elevations
the organisation’s capability building
processes, and the belief and trust it Skilling for the Future across all levels is a
reposes on its employees. In the year in Your Bank has always been keenly
culture within the Bank
review, 14,003 eligible employees across focussed on skill development of its and is a testament of the
the Bank received grade elevations. employees. Pre-pandemic, training organisation’s capability
programmes were conducted completely building processes, and the
Employee Engagement in a classroom format. During the belief and trust it reposes
Engaged employees are more productive pandemic, the modules were shifted to a
on its employees.
and display a greater commitment completely online format. In FY 2021-22,
to a company’s values and goals. To your Bank adopted a highly efficient and
understand employees’ expectations effective hybrid-training model and scaled
and satisfaction levels, the Bank has up the training initiatives significantly. The
on-boarded a leading consulting firm to Bank focussed on upskilling and reskilling
conduct an organisation-wide employee the workforce. A total of 3,483 training Creating NextGen Bankers
engagement survey. This survey will give batches with over 90,000 participants in To create a steady flow of young bankers,
good insights and identify action areas 100 different programmes culminated your Bank hires fresh talent from the
to improve the employee experience. in redefining the culture of governance, NextGen Bankers Programme, a special
The Bank conducts various activities enablement, engagement and learning programme in Banking and Finance under
and programmes to drive employee at the Bank. Agility in programme the affiliation of Maulana Abul Kalam
engagement. In the year in review, the delivery, deeper knowledge assessment Azad University of Technology (MAKAUT),
Bank organised various engagement and precision training, need analysis West Bengal.
activities during Durga Puja, New Year and helped the programmes build efficiency
The one-year course aims to impart
Women’s Day. and impact.
specialised knowledge in different
In line with the current trend of domains across the banking and finance
personalised content and consumption sector for inculcating an appropriate
of tailored and more bite-sized learning blend of knowledge and practical skills
modules, your Bank introduced ‘Learning among students. The students are also
Bytes’ and ‘Learning Matters’, both trained on inclusive banking fundamentals
of which received good feedback which aligns with your Bank’s ethos.
from employees. Nextgen Bankers programme is
31
successfully running for the last four years
and more than 600 students are already
placed and working in different banking
verticals. Your Bank continues to review
COVID-19 Measures various human resources
developments across
The first quarter of the year in review
witnessed the severe second wave of industries and introduce the
the pandemic. This wave also reached best practices, competitive
rural and semi-urban India where your with the industry.
Bank has a significant presence. To help
employees cope with the pandemic, the
Bank took various measures.
Mass vaccination of staff was organised
across the country by the Head Office.
Given the vast spread of your Bank’s
distribution, a number of field staff
members had undergone vaccination at
their respective local centres, the cost of
which was reimbursed by the Bank. Employee Benefits, Health As a part of this, various stages and touch
The Bank, in partnership with several & Safety points within employee journeys were
identified that needed to be digitalised.
leading healthcare service providers, Your Bank continues to review various
The integrated Human Resource
launched Virtual Medical Assistance human resources developments across
Management System (HRMS) platform
for COVID-19 affected employees who industries and introduce the best
has empowered employees to access the
were under home quarantine. As a part practices, competitive with the industry.
entire Employee Life Cycle Management
of this programme, medical safety kits, The major employee benefit measures
on their own devices. The complete
consisting of essential equipment, were introduced in the year under review were:
digitisation of the talent acquisition
provided. Regular tele-consultation Reduction in interest rates for staff module has been a major achievement
was done with doctors and even home housing loans and staff vehicle in making the overall sourcing-to-on-
collection of samples was arranged for. loans, as well as higher slabs for boarding process of the employees
Representatives from the HR team were staff housing loans hassle-free, especially during the
also in constant touch with the affected Extended insurance covers in the pandemic where social distancing became
employees to monitor their recovery. form of top-ups a norm. With the incorporation of the
Your Bank also removed any capping for Introduction of monthly mode grievance redressal mechanism into the
COVID-19 treatment on group mediclaim of premium payment to enable HRMS, the employees have a one-stop
since the onset of the pandemic. The employees to spread the payment solution for any queries or complaints.
entire expense of tele-consulting and over a year and opt for higher cover
Your Bank also upgraded and introduced
home quarantining was borne by the Widening the definition of dependents
an enhanced Learning Experience
Bank for each affected employee. The to encompass parents-in-law
Platform – Bandhan EDGE (Engage
Bank continued with the special leaves In addition to the above, on Women’s
Develop Grow Excel). This platform
with pay to affected employees. For Day, the Bank also conducted an
is available on web as well as mobile
the nominee of deceased employees exclusive session on ‘Breast Cancer -
versions allowing employees to
(due to COVID-19), a one-time Financial Early Detection and Cure’
learn at their own pace through self-
Assistance Scheme was introduced
directed e-modules and assessments.
to ensure that they do not face any Digital Transformation This platform also supports hybrid/
immediate financial stress in their time in HR Processes blended learning intervention giving the
of difficulty.
As part of its employee value creation employees a holistic learning experience
agenda, the Bank embarked upon a through an integrated learning journey.
360-degree revamp in HR functions,
processes, and practices during the year.
32
Responsible Risk Management

Your Bank looks at risks in an integrated way to holistically
manage all kinds of business risks through formal risk
management processes, encompassing operational risk, fraud
Risk is a function of how
poorly a strategy will perform risk, conduct risk, outsourcing risk, compliance and legal risk,
if the ‘wrong’ scenario information security (InfoSec) risk, credit and credit concentration
occurs.” risk, market risk, liquidity risk, interest rate risk in banking
– Michael Porter books, strategic risk and reputational risk, and the underlying
interlinkages between these different types of risks.
Risk & Resilience
and flex quickly to make informed complete business response, including

decisions and take appropriate, measures such as vendor alternatives,
innovative actions. It has put in place geographic office logistics, and
It’s your reaction to adversity,
measures to assess the immediate engagement with key members
not adversity itself that
and potential future effects and of senior management for critical
determines how your life’s
take swift action. decisions and approvals.
story will develop.”
While dealing with this multifaceted Your Bank focussed on building
– Dieter F. Uchtdorf
crisis, affecting personnel safety, essential business processes,
supply chains, and the economy, which support critical services and
your Bank assessed the impact of products and a detailed mapping of
possible threats or disruptions to fully these processes was completed for
understand which business operations, crisis management.
Over the last two years, it feels like clients, vendors, and partners
humankind has lived in a state of People come first. Your organisation
could be affected.
ongoing crisis as unexpected global understands that no business can exist
events have disrupted organisations Resilience testing, through various without its employees, especially in
in every part of the world. A global extreme but plausible scenarios, was a disruption. Your Bank has shown
pandemic led to massive supply chain done regularly to raise your Bank’s genuine care for employees and
disruptions, causing an economic preparedness for uncertainties, apart their families who were affected by
slowdown leading to rising inflation from normal risk scenarios. the crisis, thus boosting employee
and cost of living. In these testing morale. The belief that ‘We are all
Each crisis requires a critical response.
times, large-scale cyberattacks seem in this together’ drives the Bank’s
Therefore, every business has put
to have stopped businesses in their commitment, which goes beyond
in place a comprehensive crisis
tracks. Organisations across industries social media posts or marketing
management and Business Continuity
have faced numerous challenges. content. At the deeper level, your Bank
Plan (BCP) that was developed with
Consequently, as a reaction to impacts employee trust, appreciation
key stakeholders and can be quickly
this massive adversity, operational and benefits that graciously yield
activated to ensure continuity of
resilience has become vital. employee and customer loyalty well
business operations.
beyond the period of disruption.
Your Bank has recognised the critical The BCP process has many moving
need for shaping up a resilient and parts like activating sub-groups
robust organisation that can adapt and sub-tasks to orchestrate the
33
Risk Management Pathways
internal controls that support your Your Bank’s robust Risk Appetite
Bank’s compliance with statutory and Framework (‘RAF’) is reviewed on
regulatory requirements. an annual basis and its monitoring
Everything that can be
parameters are aligned with the
counted does not necessarily Your Bank recognises the changes
Bank’s short-term, medium-term and
count; everything that in the external and epidemiological
long-term strategy and business plan.
counts cannot necessarily be context, and the evolving operating
counted.” environment. Your Bank’s strategy – Your Bank has implemented various
and hence the level of ambition – is scenarios and measurement
– Albert Einstein
critical to managing the risks inherent approaches to quantifying risks and
in delivering its mission. capital demands. Monitoring, stress
testing tools and escalation processes
Your Bank has comprehensive and
are in place for key capital and
well-developed frameworks to set
Your Bank’s Risk Management liquidity thresholds and metrics.
the risk appetite, that is dynamic and
Framework describes the Bank’s Systems, processes, and policies are
in sync with the evolving scenario.
approach to risk management, critical components of your Bank’s risk
Your Bank has put in place prudent
including provisions for risk management capability.
policies, processes, limits, controls,
governance arrangements; the
and systems to define and analyse Your Bank further strengthened
appetite and limits for risk exposures;
the extent of risk in various additional its Risk Assessment Framework by
policies for management of various
scenarios over and above that incorporating its learning during
risk types; risk culture standards; and
mandated by the regulator. This helps the uncertain period, to ensure that
risk reporting.
your Bank primarily to gauge various socio-political risks as well as conduct
It is this framework that defines in stress level that it might face during risks are kept in check and duly taken
detail the key arrangements and an evolving macro and micro into consideration during the Bank’s
standards for risk management and economic scenario. Strategy and Business expansion plan.
Risk Governance
Your Bank adheres to three levels of Management Committee (MRMC),

Risk Governance Framework – the Business Continuity & Planning
Board, Committees of the Board, and Management Committee (BCPMC),
Sense and deal with
Management Committees. Information Security Committee
problems in their smallest
(ISC), etc., constitute the formal
state, before they grow The Bank’s Board, through the
decision-making forums, which enable
bigger and become fatal.” Risk Management Committee of
the views of risk decision takers and
the Board (RMCB), is regularly
– Pearl Zhu risk managers to be considered.
updated as necessary on any special
developments in the risk situation, risk The Chief Risk Officer (CRO) has direct
management and risk control. management responsibility for all
the risk management functions, such
The risk governance framework The RMCB deliberates with the
as Credit Risk Management, Market
provides guidance on adopting a more Management on the issues of
Risk Management, Operational Risk
holistic approach to manage risk, aggregate risk disposition and risk
Management, Liquidity Risk Control,
emphasising four linked elements: strategy. It also supports the Board
and Information Security. In addition,
in monitoring the implementation
Developing the the CRO is also responsible for
of this strategy.
corporate risk profile. monitoring, analysing, and reporting
Establishing a risk function Various risk-related committees at the risks on a comprehensive basis.
that manages risk in an Executive Level, such as Asset Liability
Independence of the CRO is ensured
integrated manner. Management Committee (ALCO),
through a fixed tenure, reporting
Practicing integrated risk Credit Risk Management Committee
structure and periodic reviews by the
management; and (CRMC), Operational Risk Management
Board and RMCB.
Ensuring continual risk monitoring. Committee (ORMC), Market Risk
34
Risk Culture
Your Bank focusses on a set of Emphasis on acceptability of risks

acceptable and encouraged to be taken within a defined risk
behaviours, discussions, decisions, appetite, which ensures that the risk
Risk Management is a and attitudes toward taking and is adequately set off against the risk
culture, not a cult. It only managing risk within an institution, as adjusted performance measures.
works if everyone lives it, constitutions of the Bank’s risk culture.
not if it’s practiced by a Your Bank believes in the philosophy
few high priests.” Your Bank promotes a Risk Aware of ‘Setting the Tone from the Top’
Culture while encouraging employees regarding Risk Culture, with the Board
– Tom Wilson to take personal responsibility to and Management taking the lead
manage risk in everything that they to instil a strong risk culture within
do that inspires others to follow the organisation.
their example.
Key Drivers of Risk Culture
Leadership and ‘Tone from the top’

Decision Making
Risk Governance Structure
Recruitment, Training and Competence
Reward
Learning Environment
RISK CULTURE
Strong Risk Culture Demonstrates

Viable and consistent role modelling from senior leadership; core values practiced in daily actions
Transparent and coordinated decision-making
Continuous and constructive challenging of preconceptions, decision-making and actions
High standards of analytical insight and information-sharing at all levels
Rapid escalation of issues and concerns
Failures used as critical learning opportunities
Incentives that encourage all members to “do the right thing” while considering the overall
health and operation of the organisation
Focus on external stakeholders of risk (e.g., customers, markets, societies)
Your Bank fosters Risk transparency through reporting, disclosure, sharing of information and open dialogue on the risks arising from
various activities across the Bank.
35
Your Bank periodically evaluates current Culture and Risk Awareness status in the organisation by following a
well-defined Risk Culture Management Process as depicted below:
Evaluate current culture

and risk awareness
Monitor Define attributes

7 2
performance against driving risk culture
desired risk culture
RISK CULTURE
MANAGEMENT
6
PROCESS 3
Underpin the desired Embed the

risk culture with desired risk culture
appropriate incentive
5 4
Create risk culture Consistently

education and awareness promote risk culture
Risk Strategy and Capital
Your Bank has put in place suitable governance and control practices,
processes for assessing its overall robust risk management framework
capital adequacy in relation to the and an elaborate process for capital
Life is not a matter of Bank’s risk profile and strategy for calculation and planning.
holding good cards, but of maintaining its capital levels.
playing a poor hand well.” The Bank employs a strategic planning
Your Bank aims to maintain adequate process that aligns risk strategy and
– Robert Louis Stevenson capitalisation on an ongoing and appetite with business objectives – a
forward-looking basis, i.e., internal continual monitoring process against
capital supply to exceed internal approved risk, leverage and set capital
capital demand. The Bank maintains targets; regular risk, leverage, and
compliance with the Internal Capital capital reporting to management;
Adequacy Assessment Process and a stress testing framework,
(ICAAP) as required under Pillar 2 of which also includes specific stress
Basel III, through risk management tests to underpin the Bank’s recovery
and governance framework, monitoring processes.
methodologies, processes, and
On an annual basis, the ICAAP and
infrastructure.
RAF and the Strategic Document are
Your Bank comprehensively identifies, approved by the Board and reviewed
assesses, and manages all risks to periodically, thereby aligning the risk,
which it is exposed through sound capital, and strategy.
36
Risk Awareness & Communication
Your Bank believes that communication Floor level awareness

among stakeholders plays a pivotal role sessions and workshops
in building enhanced risk awareness, Innovative messaging through
To effectively communicate, especially in matters related to risk desktop screensavers
we must realise that we are culture and cybersecurity; a risk aware
all different in the way we Information security awareness
employee and customer will instantly
perceive the world and use for customers through multilingual
initiate the mitigation of undesired risk.
this understanding as a guide text messages, emails, and
to our communication with Your Bank runs regular awareness social media posts
others.” campaigns to educate its employees Your Bank has also designed a
regarding various aspects of framework for gauging the efficacy of
– Tony Robbins risk management through Information security awareness.
various modes like:
Periodic newsletters
Circulars
37
Treasury Management
The Treasury department optimises the Bank’s liquidity while mitigating its financial,
operational, and reputational risks. The treasury team, responsible for liquidity
management, overlooks the investment portfolio, forex transactions, assets, and liabilities.
Apart from building a core portfolio of investments, it actively participates in trading
activities to monetise short-term movements in the market. It has also developed various processes
and governance policies for cash flow management.
The team complies with regulatory requirements like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) and Liquidity Coverage
Ratio (LCR) mandated by the RBI. The department focusses on optimisation of overall portfolio yield, while maintaining appropriate
portfolio duration and mitigating risks related to liquidity, market, credit, and operations, under the guidance of the Bank’s Asset Liability
Management Committee (ALCO), Investment Committee and Market Risk Management Committee (MRMC).
The department is an active participant in money and fixed income markets. It also extends treasury services to customers, to enable
them to manage their foreign exchange and interest rate risks. The investment portfolio of the Bank comprises different financial
instruments, such as Central Government Securities, State Development Loans, T-Bills, Commercial Papers, Certificate of Deposits, Non-
Convertible Debentures, Equity Shares, Mutual Funds, etc.
Your Bank’s Treasury operates actively by way of:

Trading Desk: The trading desks The SLR desk and non-SLR desks seamless business operations.
actively trade in fixed income are required to maintain regulatory The IT team enabled work from
securities, money markets, foreign obligations and optimise returns on home capability for business
exchange and equity. The trading desk investments. A significant portion operations by issuing laptops to
also actively participates in primary of these SLR securities is in Held to treasury personnel and finalised
auctions of government securities. Maturity (HTM) category, while others the standard operating procedures
are in Available for Sale (AFS) and while maintaining highest level of
ALM Desk: It maintains a cautious
Held for Trading (HFT) categories. compliance. The team ensured perfect
stance while managing the funding,
The forex desk provides competitive coordination even while working at
and regulatory investments of the
rates to customers for the conversion 50% capacity and following protocols
Bank. The ALM desk specifically
of major currencies, such as as set by authorities. The department
focusses on liquidity parameters in an
USD, GBP, and Euro. emerged stronger from the COVID-19
eventful year. The desk successfully
pandemic, more agile and flexible
maintains adequate and appropriate The Treasury department is
in ways of conducting treasury
liquidity, as well as various regulatory provided with Integrated Treasury
activities. With better co-ordination
reserve requirements. Management Systems (ITMS) to
and teamwork, it completed business
undertake transactions and generate
Your Bank maintains a portfolio of tasks within deadlines and improved
various MIS reports. Further, the
government securities, in accordance its ability as a team to steer through
department is equipped with various
with the regulatory norms governing unchartered waters to be able to
platforms, like Bloomberg, Reuters,
the Statutory Liquidity Ratio (SLR). meet any challenge. The pandemic
Cogencis workstation, Ticker Plant,
A significant portion of SLR securities period gave the department an
CCIL, and other systems to provide
is in the ‘Held-to-Maturity’ (HTM) opportunity to fine tune processes
real-time financial data and news
category, while some are under and operating procedures under
feed, to achieve a competitive
‘Available for Sale’ (AFS) category. BCP situation and create back-ups
edge in the market.
Your Bank’s trading desk holds fixed for every sub-department within
income securities under ‘Held for Treasury is currently implementing a treasury. With resilience and new
Trading’ (HFT) category. new state-of-the-art IT system across learnings, the department is better
Front Office, Mid Office, and Back placed to handle any work situation
In the year under review, your
Office to introduce more products in or regulatory response for seamless
Bank’s significant participation in the
Treasury and meet customer demands. business operations.
domestic interest rate markets helped
to capitalise on falling bond yields by During the second COVID-19 wave,
booking profits and encashed gains this department supported business
in Equity IPOs. continuity processes and ensured
38
Compliance
The Compliance function is one of the key elements of your Bank’s corporate governance
structure. Compliance at the Bank starts at the top, with the Board and Management
playing an active role in driving a robust risk and compliance culture. The Bank remains
committed to the highest standards of compliance vis-à-vis regulatory prescriptions and
internal guidelines. It has a robust Compliance Policy, outlining the compliance philosophy, as well as
roles and responsibilities of the Compliance department.
The Compliance department assists the As the focal point of contact with the
Board and Management in managing RBI and other regulatory entities, the
the compliance risk of the Bank. Compliance department evaluates
The department ensures that the overall the adequacy of internal controls and
business of the Bank is conducted in examines any design and systemic
strict adherence to the guidelines issued correction required, based on its
by the RBI and other regulators, various analysis and interpretation of regulatory
statutory provisions, standards and guidelines and deviations observed during
codes prescribed by FEDAI, FIMMDA, etc. monitoring and testing. The Bank has
by evaluating the products/processes, a robust Anti Money Laundering (AML)
guiding business departments on the policy/framework and tools to manage
various regulatory guidelines with a the AML risk. It periodically apprises
special emphasis on better understanding the Audit Committee of the Board, the
of the given perspective. It closely works Board itself and the Management on
with operational risk and internal audit compliance levels, based on changes in
functions, and monitors various activities the external regulatory environment.
of the Bank with more emphasis on active The Audit Committee of the Board
risk management. reviews the performance of the
Compliance department and the status of
compliance with regulatory guidelines on
a periodic basis.
39
Strengthening Brand Bandhan
Bandhan Bank truly represents the ethos of inclusive banking in all its endeavours. The marketing
campaigns of the Bank strive to strengthen the brand’s positioning in this regard. The primary
objective of marketing campaigns have been to build awareness for the Bank in the minds of the
relevant audiences in the areas outside of the East of India and to sustain high levels of awareness
and familiarity of the brand in the East and North East.
Brand Ambassador in Assam print and radio. To showcase the work that
the Bank has done in the state of Assam,
In October 2021, the Bank brought
there were testimonial videos of the Bank’s
on board renowned singer, actor and
customers whose lives have transformed
composer Zubeen Garg as the brand
through the assistance of the Bank.
ambassador for the Bank in Assam. This
association is a landmark one for Bandhan The music video was well received
Bank as this is the first time that the Bank and garnered wide popularity among
has associated with a brand ambassador audiences in Assam with over 4 crore
since its inception. views and 17 lakh engagement.
To mark the commencement of this
association, the Bank released a music
Foundation Day 2021
video titled: ‘Axom amaar mone praane, Bandhan Bank turned six on August
milisoo akei shuror bandhane’ (Assam is 23, 2021. Like each year on Foundation
in my mind and soul, and bound together Day, the Anniversary Lecture was
by the bond of music), which showcased organised. This time, the Chief Guest
the diverse elements of Assamese culture for the Foundation Day, Ms. Arundhati
and heritage. This multimedia campaign Bhattacharya, CEO and Chairperson,
was executed on television, digital, OOH, Salesforce India and former Chairperson,
SBI, delivered the Anniversary Lecture.
40
She focussed on the most important

agenda in the current times – business
transformation. The lecture was followed
by an engaging fireside chat between Ms.
Arundhati Bhattacharya and Mr. Chandra
Shekhar Ghosh, moderated by Ms. Latha
Venkatesh, Executive Editor, CNBC-
TV18. The theme of the chat was ‘Key
imperatives of transformation’.
Marketing Campaigns
Strengthening the Brand
In FY 2020-21, the Bank executed
multiple thematic campaigns focussed
on the Bank’s marketing strategy, aligned
with its Vision 2025. As a regular practice,
your Bank carries out various multimedia
campaigns highlighting achievements such as Foundation Day, quarter results awareness and best practices for safe
and announcement-based developments and the Assam brand campaign ran online banking and payments.
round the year. Your Bank also drives successful legs on digital media.
During the financial year under review
campaigns to build product salience in
During this year, the engagement rate on your Bank has been bestowed with
key markets. Some of the noteworthy
the Bank’s social profiles has witnessed the ‘Best Growth Performance-Banks’
campaigns executed in the year were for
a meteoric rise of 176.28%. The Bank award by Dun & Bradstreet as part of
Home Loans, quarter results, the Bank’s
executed digital films to increase user Dun & Bradstreet’s Corporate Awards
anniversary, among others.
engagement and brand visibility on for India’s Top 500 Companies 2021.
Through its various campaigns, your digital platforms. Some major successful Dun & Bradstreet, in association with
Bank has ensured visibility across 87 TV digital films were based on Children’s CtrlS and Cloud4C, hosted a grand virtual
channels, with communication in eight Day, Mother’s Day, Father’s Day, among conference on July 16, 2021. The event
languages. The OOH campaigns have others. The internet phenomenon, was graced by Guest of Honour, Dr. Bibek
been executed in 30 cities. Bhuban Baidyakar of the ‘Kacha Badam’ Debroy, Chairman, Economic Advisory
fame, is a Bandhan Bank customer Council to the Prime Minister, and Special
Foraying further into Digital and the video capturing his visit to the Guest Dr. Krishnamurthy Subramanian,
Marketing Bank’s head office made for a successful Chief Economic Advisor, Ministry of
In FY 2021-22, the Bank has further video. One key area where your Bank Finance, Govt. of India.
strengthened its digital marketing does significant communication on
initiatives. All the marquee campaigns social media is cyber security, to drive
41
Touching Lives
Making a Difference
Renu began her married life in Delhi aspirants the art of stitching. It is
with Rakesh, who worked in an apparel- heartening to note that some of those
manufacturing unit. Given his meagre students have set up their own tailoring
The colourful dresses woven in
earnings, it was difficult for them to units; such was the community impact
beautiful threads, the stylish
make ends meet in a large city like Delhi. Renu was able to create. With subsequent
buttons in a myriad of colours,
Thus, they decided to move back to loans from Bandhan and their hard work,
and the smiling faces of our
their hometown in Himachal Pradesh, to Renu and Rakesh slowly and steadily
customers, fill our hearts with
start something of their own. With their expanded their garment collection.
gratitude for Bandhan. We
thank them from the bottom savings, they set up a store and named it Besides their designer store, they
of our hearts. ‘Delhi Fashion Designer’. have also set up a sewing workshop in
They did not have enough funds to the same premises as the store. This
produce their own material, so they workshop employs six people. With this,
started procuring finished products they can take care of the customisation
from wholesalers in Delhi and Ambala. requests from all clients. Renu now
While they bought two sewing machines, produces fashionable clothing for her
they did not have the working capital to loyal and wide range of customers. Their
employ skilled tailors to make garments. shop has an exclusive stock of threads
Thus, the scalability of the business was and buttons, which they not only use for
jeopardised because of the lack of capital. their own store but also supply to other
shops and factories. They plan to expand
This was when Renu heard about their work further in Himachal Pradesh
Bandhan, availed her first loan in 2019 and Delhi.
and invested the entire amount in the
store. They bought branded sewing
machines and employed skilled tailors.
They also started teaching young
Renu Devi
Solan, Himachal Pradesh
42
Ajmetun studied till class VII and was of. Ajmetun continued to repay her loans
employed in a clinic as support staff. In timely and got eligible for higher loans.
this clinic, she met Babul. After three She used the subsequent loan amounts to
Our dream of setting up a years of working together, they both tied set up ‘MZ polyclinic’, thereby giving life
medical clinic became a reality the knot. In a few years, the couple was to their dream.
only because of Bandhan’s blessed with two daughters. They were
unwavering support. We are Since then, there has been no looking
somehow making ends meet with their
grateful to them for helping back for them. The clinic is running well;
collective earnings, but due to a family
us make medical services it has 17 beds for patients. The landlord
emergency, they had to return to their
accessible to many. of the clinic premises, impressed by their
hometown abruptly. They, consequently,
efforts, has waived off the capital deposit.
lost their job at the clinic and were left
While Babul still works at the medical
without any source of income. However,
college, Ajmentun manages the clinic. She
this is when Ajmetun heard of Bandhan
has also employed five people to help her
and availed her first small loan in 2013
run the clinic. They have visiting surgeons
and used it to purchase a cow. The cow
and doctors to tend to the patients.
milk was sold in the locality, but the
proceeds were not enough to feed the Both Ajmetun and Babul have worked
family of four. very hard to improve their lives while
creating an impact in society. They are
Even before they got married, the two
content that both their daughters are now
had wanted to start a clinic of their own.
studying in a reputed English medium
To make this dream possible, they started
school. The cow they had purchased with
saving money. Babul secured a job in a
their first loan is now for their domestic
local medical college to accelerate their
use. They are also happy that they are
savings for their own clinic.
making medical services accessible to
Thus, they began their journey of setting people who need them. They plan to
up their clinic. With Bandhan in their lives continue with their clinic and serve
now, the initial capital was also taken care the community.
Ajmetun Nisha
Kishanganj, Bihar
43
Kuni was married to Dhanu Behera who However, soon Kuni realised that this
was an auto driver in Puri with small little business needed an impetus so she
earnings. The couple had two sons. Due reached out to Bandhan for financial help.
I have been able to change
to financial constraints, their elder son The first loan she received provided the
my family’s future towards
dropped out of schooling and took up much-needed capital influx. The loan was
stability and prosperity. This
odd jobs to contribute to the household. of such great help that she repaid her
has been possible only with
After two years of odd jobs, the parents loans diligently and continued to avail
Bandhan around. Words are
purchased an auto for him with the subsequent loans of larger amounts and
not enough to thank them.
objective of earning a little more. They invested in expanding the business. Today,
wanted their younger son to complete instead of supplying their finished goods
his studies. to other shops, the family has a rented
shop of their own where they sell their
After completing his graduation, handicraft. They also supply bulk orders
the younger son trained in making across the district.
handicrafts. While he was picking up the
art, he got an opportunity to connect with In order to meet the growing demands,
various suppliers and distributors. This Kuni has employed two girls who help her
helped him build the base for starting the at work. She plans to do away with the
business of making decorative souvenirs. rented shop in due course and intends
Kuni also got involved in this venture. to purchase a space of their own and is
They both made souvenirs at home and confident of expanding their business
sold them to various nearby shops. even further.
Kuni Behera
Puri, Odisha
44
Empowering the Community

Bandhan Bank’s journey is deeply entrenched in its dedication towards transforming lives and building
communities. The Bank runs its CSR programmes through various CSR implementing agencies
including Bandhan-Konnagar. Each programme of Bandhan-Konnagar has been devised to bring about
far-reaching effects in the fields of education, health, livelihood promotion, sustainable livelihood
development, climate action, financial literacy, skill development and employment generation.
TARGETING THE HARDCORE POOR PROGRAMME
This is a unique programme

designed for the poorest of
the poor. Grants (in the form
of free assets, not cash)
are offered to destitute women. They
start generating income from this asset
and are consequently able to sustain
their livelihoods. It is seen that within
24 months of this grant intervention,
these hardcore poor beneficiaries start
to graduate, uplift themselves from
extreme poverty and get linked to
mainstream society.
This programme follows a 360-degree

approach. Besides free assets, consistent
counselling and mentoring support is
also extended. A weekly consumption
stipend (considerable amount of cash)
is also given to these women to meet
their daily basic expenses until the assets
begin to yield returns. Financial literacy is
imparted so that they can make informed Over the years, it has been seen that there is a
financial decisions. Education on socially positive impact of this intervention in the lives
relevant issues is also offered to increase of many. They earn reasonable monthly
their awareness and help them live better income, have a healthy life and are able to
lives. Overall confidence building is done support their families.
so that they do not fall in the poverty
trap again. Over the years, it has been
seen that there is a positive impact of this
intervention in the lives of many. They
earn reasonable monthly income, have a
healthy life and are able to support their
families.
45
HEALTH PROGRAMME
This programme aims to interested women from the villages
increase health awareness and providing them adequate training.
in order to reduce These health volunteers called Swastha
healthcare expenditure of Sahayikas (SS), then work in the villages
underprivileged families. It gives special to impart health education through
focus on children under 5 years, pregnant regular health forums. The programme
women, lactating mothers and adolescent also includes linkage and referral services,
girls regarding safe motherhood, child distribution of health kits, setting up of
nutrition, personal hygiene and sanitation water treatment plants to provide safe
issues. Under this initiative, health drinking water, among others.
volunteers are developed by selecting
Under this initiative, health

volunteers are developed by
selecting interested women
from the villages and
providing them adequate
training.
EDUCATION PROGRAMME
This programme encourages from economically constrained families,
a diverse age group of with special focus on the girl child. These
underprivileged children to free primary schools known as Bandhan
begin and sustain academics Education Centres provide complimentary
in a congenial environment. A unique, school kits and focus on classroom
low-cost, innovative model has been learning, attendance, and extra-curricular
adopted to ensure that the not-so- activities. Further, the programme has
privileged children are able to receive also set up low-cost formal schools, called
quality education. Education centres have Bandhan Academy, that provide holistic
been set up in rural areas. These aim to development for children, which include
reach out to the non-school-going and academics and extracurricular activities.
dropout children aged 6 years and above
Free primary schools

known as Bandhan
Education Centres provide
complimentary school kits
and focus on classroom
learning, attendance, and
extra-curricular activities.
46
EMPLOYING THE UNEMPLOYED PROGRAMME

This programme is aimed sales, hospitality, ITes-BPO, computerised
at addressing the issue of accounting, refrigerator and air
unemployment in India. conditioner repair, etc. After successful
Vocational centres known completion of these skill development
as Bandhan Skill Development Centre courses, candidates either explore
(BSDC), are set up to provide training entrepreneurial opportunities or get
to unemployed youth. The youth can placed with reputed companies.
choose from an array of domains, such as
After successful completion

of these skill development
courses, candidates either
explore entrepreneurial
opportunities or get placed
with reputed companies.
FINANCIAL LITERACY PROGRAMME

This programme is the programme encourages participants
aimed at deepening to become financially aware and gain
financial inclusion in rural financial confidence. The objective is
communities. In the crusade to increase awareness among rural and
to ensure holistic development of people disadvantaged women about financial
and communities, financial literacy and matters, empowering them to plan
inclusion is the tool that assists them to their personal economies. They are also
move from sustenance to a sustainable taught to access varied banking services,
growth path. Accordingly, this initiative including insurance and pension schemes.
pays special attention to ensuring that
In the crusade to ensure

holistic development of
people and communities,
financial literacy and
inclusion is the tool that
assists them to move from
sustenance to a sustainable
growth path.
47
CLIMATE ACTION PROGRAMME
The Goal 13 of the United It is a well-established fact that the
Nation’s Sustainable climate change is linked to Green House
Development Goal (SDG) Gas (GHG) emissions and reducing
calls for urgent action to atmospheric carbon through emission
combat climate change and its impacts. reduction and carbon sequestration can
It is also intrinsically linked to the rest of help limit the rise of global temperature.
the 16 SDGs 2030 Agenda. To address
the climate change, India has adopted Your Bank through its Climate Action
the Paris Accord to limit the global Programme is facilitating to limit the
temperature rise to well below rise in global temperature through the
2 degrees Celsius. following strategy:
Reducing Atmospheric Carbon Climate Change Adaptation
Developing climate change resilience among the

Carbon sequestration through plantation and agroforestry vulnerable communities that are at high risk to climate
change impacts and extreme weather conditions by
addressing the linked SDGs
Reducing GHG emissions through clean development

mechanisms and technologies, especially in energy, Mitigating climate change impacts
agriculture and allied sector
Reducing Atmospheric Carbon

The programme has collaborated with various Panchayat Raj Institutions (PRIs) to undertake plantations in the village commons. The
Bank provided nearly 30,000 saplings for plantation across 26.11 acres of land and 15 km of roadside plantations in 6 states involving 21
PRIs during the year.
To support urban green spaces and creating livelihoods, the programme collaborated with New Town Kolkata Development Authority
(NKDA), West Bengal to undertake plantations of nearly 2,500 saplings in nearly 2 acres of urban space.
The programme provided

nearly 30,000 saplings for
plantation across 26.11
acres of land and 15 km
of roadside plantations in
6 states involving 21 PRIs
during the year.
48
SUSTAINABLE LIVELIHOODS PROGRAMME

A programme was piloted Bandhan-Konnagar selected 51 bright
for incubating young and entrepreneurs (including 17 females)
talented entrepreneurs out of 113 candidates to incubate their
from economically weaker enterprises.
sections. The aim is to help these
entrepreneurs in setting up their own Of the 51 enterprises, 20 have been
start-ups so that instead of becoming registered with MSME and 16 are DIC
employment seekers they become approved and 16 enterprises have also
employment givers. been linked to Financial Institutions for
credit line.
49
Board’s Report
To
The Members,
Your Board of Directors present the Eighth Annual Report on the business and operations of your Bank, together with the Audited
Financial Statements for the Financial Year (‘FY’) ended March 31, 2022.
Financial Performance of the Bank

The financial highlights for the FY under review, are presented below:
(Figures in ₹ crore)
Particulars For the FY ended
March 31, 2022 March 31, 2021
Deposits: 96,330.62 77,972.22
- Savings Bank Deposits 34,616.86 29,260.32
- Current Account Deposits 5,462.32 4,566.99
- Term Deposits 56,251.44 44,144.91
Advances (Net): 93,974.92 81,612.88
- Cash Credits, Overdrafts and Loans repayable on demand 2,330.21 2,395.82
- Term Loans 91,644.71 79,217.06
Total Assets/Liabilities 1,38,866.55 1,15,016.17
Net Interest Income 8,714.02 7,563.35
Non-Interest Income 2,822.82 2,022.25
Less: Operating Expenses (excluding Depreciation) 3,413.40 2,713.81
Profit before Depreciation, Provisions and Tax 8,123.44 6,871.79
Less: Depreciation 110.04 103.06
Less: Provisions 7,884.78 3,820.07
Profit Before Tax (PBT) 128.62 2,948.66
Less: Provision for Tax 2.83 743.20
Profit After Tax (PAT) 125.79 2,205.46
Balance in Profit & Loss Account brought forward from previous year 6,171.00 4,758.71
Appropriations:
Transfer to Statutory Reserves 31.45 551.37
Transfer to Statutory Reserve u/s 36(1)(viii) of the Income-tax Act, 1961 42.45 74.37
Transfer to Capital Reserve 16.00 84.64
Transfer to Investment Reserve 25.24 -
Transfer to Investment Fluctuation Reserve 10.65 82.79
Dividend pertaining to previous year paid during the year 161.07 -
Balance carried over to Balance Sheet 6,009.94 6,171.00
EPS (Basic) (in `) 0.78 13.70
EPS (Diluted) (in `) 0.78 13.69
State of Affairs of the Bank in semi-urban, 18 per cent. in urban and 10 per cent. in metro
Within six years of its operation, the balance sheet size of your locations. The number of customers has increased from 2.30 crore
Bank had crossed a landmark of ₹1 lakh crore and continued as on March 31, 2021 to 2.63 crore as on March 31, 2022. With
to grow further during the year under review. The Total the expanding network of banking outlets and customers, the
Liabilities (including capital and reserves) of your Bank stood at total deposits grew further from ₹77,972.22 crore as on March
₹1,38,866.55 crore and the Total Advances (Net) at ₹93,974.92 31, 2021 to ₹96,330.62 crore as on March 31, 2022 registering a
crore whereas banking outlets increased to 5,639 as on March climb of 23.55 per cent. The Current Account and Savings Account
31, 2022. During the FY under review, the number of banking (‘CASA’) deposits have seen an increase of 18.48 per cent. from
outlets that have been added to the network is 329. Out of the ₹33,827.31 crore as on March 31, 2021 to ₹40,079.18 crore as on
total 5,639 banking outlets, 35 per cent. are in rural, 37 per cent. March 31, 2022.
50
During the FY under review, the total income (net) of your Bank your Bank had managed to keep its services open to customers.
has increased by 20.36 per cent. to ₹11,536.84 crore as against the Your Bank has engaged with its customers through digital channels
total income of ₹9,585.61 crore for FY 2020-21. However, during and contact centres with the objective of catering to their banking
the FY, your Bank has made additional provisions on NPA accounts needs, as well as enquiring about their well-being during these
resulting from elevated risk observed in certain geographies and extraordinarily difficult times.
the potential impact of the COVID-19 pandemic on certain loan
Your Bank continues to take multiple measures to ensure a safe
portfolios. These provisions held by the Bank are based on the
environment for its employees and customers, such as:
information available at the time of approval of accounts and are in
excess of the RBI prescribed norms. Due to this, the profit after tax • Regular sanitisation of the branches, ATMs, currency notes,
(‘PAT’) for the financial year under review stood at ₹125.79 crore, temperature checks at premises.
a decline of 94.30 per cent. as compared to ₹2,205.46 crore for FY
• Maintaining social distancing norms through effective floor
2020-21. Consequently, Return on Average Equity (‘ROAE’) was 0.76
management.
per cent. for FY 2021-22 as against 13.24 per cent. for FY 2020-21
and Return on Average Asset (‘ROAA’) was 0.11 per cent. for FY • Touch-base with all existing customers and enquiring about
2021-22 as against 2.13 per cent. for FY 2020-21. Correspondingly, their well-being.
basic earnings per share (‘EPS’) decreased from ₹13.70 to ₹0.78
• Adopting new digital initiatives from time to time.
whereas diluted EPS decreased from ₹13.69 to ₹0.78 as at the end
of FY 2021-22 in comparison to FY 2020-21. However, due to various • Community outreach initiatives.
initiatives taken by the Government to support the economy and
• Vaccination drive for employees, through tie-ups with
easing out of the impact of pandemic on the lives of customers,
hospitals, based across regions and at Head Office.
your Bank has seen the best ever quarterly performance during the
quarter ended March 31, 2022 backed by robust all round operating Your Bank has implemented necessary packages rolled out by RBI
performance and lower credit costs. Given the strong recovery and for its different segments of customers to provide the financial
stable operating environment, your Bank is confident of further assistance, which are enumerated hereinbelow under different
improving its performances during next fiscal as well. heads.
Your Bank continues to focus on financial inclusion by providing Emerging Entrepreneur Business (‘EEB’)
various financial services to the underserved. The Reserve Bank The EEB vertical of your Bank has been serving borrowers at the
of India (‘RBI’) has mandated Priority Sector Lending (‘PSL’) of a bottom of the pyramid with affordable and convenient loans to
minimum 40 per cent. of advances for all banks. During FY 2021- help them develop into entrepreneurs and transform their lives.
22, your Bank’s PSL was ₹56,397.10 crore as on March 31, 2022 as Your Bank’s EEB strategy is guided by its long-held philosophy
compared to ₹74,369.51 crore (net of IBPC of ₹2,124.13 crore) as of financial inclusion and economic empowerment of the
on March 31, 2021. At the end of FY 2021-22, PSL as a proportion disadvantaged sections of the society.
of the gross advances of ₹98,790.70 crore was 57 per cent.
Your Bank offers a wide array of loans through Banking Units
COVID-19 Pandemic (‘BU’) under EEB vertical to benefit small business owners in need
FY 2021-22 started with the second wave of COVID-19 pandemic, of financial assistance. It also helps in the growth of additional
which was more severe and infectious, affecting lives of people income generation avenues and offers enhanced opportunities to
and resulted in restriction in movements due to lockdowns in small entrepreneurs to achieve their business goals.
various parts of the country. This affected the economic activities
Each BU is linked to a bank branch for operational convenience.
considerably, especially the lower income population and
BUs are self-sufficient and empowered to open deposit accounts
businesses requiring physical movement. With the aggressive
using TABs and also open loan accounts after necessary credit
vaccination drive by the Government and various other measures
checks. The highlight of the BUs’ operations is the TABs that are
to contain the spreading of infection, the impact of the pandemic
connected to the Core Banking System (‘CBS‘) through cellular
started to recede in the second half of the FY. The Government
data. Your Bank’s Relationship Officers (‘RO’) carry these TABs
of India (‘GoI’) and the Reserve Bank of India (‘RBI’) continued
to their group meetings, and the entire instalment reconciliation
with its measures to minimize the adverse economic impact on
for the customer happens through these TABs on real time basis.
business caused by this pandemic.
To ensure timely and effective support to the BUs in their day-
Your Bank had diligently abided by the advisories issued by the to-day functioning, the Bank has a structure comprising Circles,
GoI, State Governments and various statutory and regulatory Territories, Divisions, Areas and Banking Unit Catchments. A
authorities, from time to time. While enforcing the social distancing central operation team maintains oversight of the quality of the
protocols and keeping the safety of employees in mind, banking operations and adherence to prevalent guidelines at all times.
outlets and offices of the Bank operated in accordance with the Your Bank lays significant emphasis on processes and controls to
guidelines/directions issued by various statutory, regulatory and help maintain uniform and consistent standards in transaction
local authorities. processing and service delivery, as well as compliance with
regulatory and statutory guidelines.
Your Bank continued to leverage its technology wherein the
employees were benefitted through availing work from home During FY 2021-22, your Bank opened 287 new BUs pan-India
facilities. Your Bank managed to run its operations smoothly across with a focus on financial inclusion and to enhance portfolio quality
all its banking outlets. At all times during the COVID-19 pandemic, by limiting the number of customers served by a BU. Your Bank’s
51
commitment towards financial inclusion is also reflected in the • Your Bank conducted awareness programmes to educate
fact that it offered loans to 162,581 new borrowers during FY customers about the COVID-19 pandemic and needs of
2021-22. The growth of 6.9 per cent. in the aggregated EEB asset COVID Vaccination.
portfolio from ₹58,346.34 crore to ₹62,399.08 crore during 2021-
• Your Bank has also given them support to overcome the
22, is another indicator of its commitment.
irregularity and distress caused by the pandemic and assured
Your Bank now has EEB loans in 11 categories to cater better to the them that their Bank is always with them in any situation.
varied demands of the customers:
• Your Bank has initiated a vaccination drive for its employees
EEB loan (Group loans) and ensured that all employees are vaccinated.
1. Suchana Loan: Timely funds to start a new business or
Awareness about using digital solutions, like smartphone based
grow an existing one. Loan size is from ₹1,000 to ₹25,000.
transactions and use of credit/debit cards for online transactions is
still a persistent issue to the customers of your Bank under the EEB
2. Srishti Loan: Loan to scale up home-based business. Loan vertical. To overcome these challenges, your Bank is giving training
size is from ₹26,000 to ₹1,50,000. to make the customers aware about the benefits of digital payments
and various other aspects, such as seeding bank accounts with
3. Subriddhi Loan: Loan amount is up to 50 per cent. of the
mobile number and Aadhaar. Your Bank has also taken initiative by
disbursement amount of running primary loan. Sanctioned
informing the customers to pay through online transactions.
to help customers fulfil their extra business requirement
during their ongoing loan. During the pandemic and post pandemic restrictions, many of the
customers of your Bank lost their livelihoods, which made them
4. Samadhaan Loan: Loan from ₹5,000 to ₹15,000 to support
financially vulnerable. To strengthen the customers, your Bank
existing EEB borrowers by providing liquidity support to their
came up with products specifically designed for these situations
businesses during pandemic.
and ensured that the customers get the maximum financial
5. Suraksha Loan: Loan size is up to ₹15,000 and is sanctioned assistance during the toughest time in their lives. In addition to
to help existing customers meet their emergency expenses, lending to customers, your Bank is encouraging them to save in
e.g.- medical, drinking water and sanitation. their savings bank accounts and to inculcate healthy financial
habits, so that in any uncertain situation in the future, they remain
6. Sushiksha Loan: Loan size is up to ₹10,000 and is sanctioned
financially stable.
to help customers meet expenses towards the education of
their children. Your Bank has been driving the transformation of customers at
the ground level. Your Bank has already started migrating vintage
Small Business and Agri Loans
and quality customers to individual loans from their existing group
1. Sahayata Loan: Loan to fund growing business needs of
loans by laying out a strategy to increase the share of individual
existing EEB customers. Loan amount is from ₹51,000 to
business loans in EEB overall portfolio and extending new product
₹2,00,000.
offerings, such as Sahayata Loan, Two-Wheeler Loan, Micro Home
2. Samriddhi Loan: Loan to fund growing business needs Loan as per their changing requirements.
of existing EEB customers. Loan size is from ₹75,000 to
Branch Banking
₹3,00,000. However, this product has since been
Your Bank witnessed an overall retail deposit growth of 21 per
discontinued.
cent. YoY to ₹74,441 crore during FY 2021-22, and the overall
3. Micro Baazar Loan: With a loan size from ₹26,000 to deposit growth of over 24 per cent. YoY to ₹96,331 crore. Your
₹ 1,50,000, this product is for small entrepreneurs, who have Bank also witnessed an overall CASA growth of 18.48 per cent. YoY
an existing super-saver account with your Bank. This loan to ₹40,079 crore.
provides financial support to deposit customers for their
The contribution from the Affluent Savings business segment,
working capital needs.
which consists of the flagship products, like, the Elite and Premium
4. Micro Home Loan: Your Bank offers Micro Home Loan ranging Savings, remained unmatched. This segment contributed to an
from ₹1,00,000 to ₹10,00,000 to existing EEB borrowers for overall Saving Accounts (‘SA’) growth of 33 per cent. YoY.
construction as well as renovation of their houses so that
The liabilities proposition of your Bank achieved significant
their dream of their own house does not remain unfulfilled.
breadth and scale which enabled the Bank to have a competitive
5. Two-wheeler Loan: Your Bank offers two-wheeler loans edge and deliver the best in class customer experience, and the
ranging from ₹30,000 to ₹1,20,000 to existing EEB borrowers. same is evident from the growth in its Liabilities franchise.
It brings them a step closer to their aspirations.
Moreover, to strengthen the current account (‘CA’) customer
During the FY 2021-22, your Bank has taken various base, your Bank has launched 3 variants under its Current Account
initiatives: product offering viz., “Biz-Deluxe”, which is designed to cater
• As per COVID protocols to maintain social distancing norms to the banking and financial needs of customers, like traders,
during the COVID-19 pandemic and resulting restrictions, distributors and wholesalers; “Biz-Pro” designed to cater to the
your Bank has split the groups to reduce the number of self-employed professionals and “Start-up” for addressing the
group members. unique banking requirements of entrepreneurs.
52
Your Bank also introduced Cash@POS facility, which permits  ECLGS 1.0 (Extension) refers to the scheme for providing
cash withdrawal at POS and SoftPOS services, which enables the additional support to existing borrowers of ECLGS 1.0 or
merchant to accept digital payments using a smartphone. new borrowers eligible under ECLGS 1.0 based on revised
reference date of March 31, 2021. All borrower accounts
A total of 42 branches were added during the FY, taking your Bank’s
classified as NPA or SMA-2 as on March 31, 2021 shall not be
footmark to 1,189 branches. Despite challenging circumstances
eligible. The funding can be in the form of additional working
during FY 2021-22, your Bank’s branches remained open throughout
capital term loan facility upto 30 per cent. of their total credit
the lockdown period and your Bank has also introduced offsite ATMs
outstanding (fund based only, net of support received under
as a pilot project at five of its major locations, viz., Ahmedabad,
ECLGS 1.0) up to ₹50 crore as on February 29, 2020 or March
Salt lake Sector-V, Urbana- Kasba, Shillong and Bhubaneswar, for
31, 2021, whichever is higher. The tenor of loans shall be five
providing prompt assistance to the customers.
years from the date of first disbursement. Moratorium period
During FY 2021-22, your Bank overcame all the challenging of two years shall be provided to borrowers for the fund
business conditions and offered customers expedient ways to based portion. The principal shall be repaid in 36 instalments
transact, access their savings and current accounts, fixed deposits, (three years) after the moratorium period is over.
make digital payments and grow their wealth.
 ECLGS 2.0 refers to the scheme for providing 100 per cent.
Commercial Banking guarantee to member lending institutions, extending eligible
RBI announced the introduction of the ‘COVID-19 Regulatory credit facilities in the form of working capital term loan and/
Package’ on March 27, 2020 in the wake of disruptions due to or non-fund based facility or a mix of the two, to its borrowers
COVID-19 pandemic and consequent asset classification and in the 26 sectors identified by the Kamath Committee on
provisioning norms. As part of the COVID-19 Regulatory Package, Resolution Framework vide its report dated September 04,
National Credit Guarantee Trust Company (‘NCGTC’) introduced 2020 and the Healthcare sector, upto 20 per cent. of their
operating guidelines on Emergency Credit Line Guarantee Scheme total credit outstanding (fund based only) not exceeding
(‘ECLGS 1.0’) on June 02, 2020. RBI issued subsequent additions/ ₹500 crore across all lending institutions, as on February 29,
modifications, clarifications and extensions in respect of the 2020. All borrower accounts classified as NPA or SMA-2 as on
Regulatory Packages during FY 2021-22. The COVID-19 Regulatory February 29, 2020 shall not be eligible. The tenor of facilities
Package was included in the Board approved policy of the Bank, shall be five years from the date of first disbursement of fund
with a suitable enabling clause to accommodate any further based facility or first date of utilization of non-fund based
regulatory instructions on the COVID-19 Package. facility, whichever is earlier. Moratorium period of one year
on the principal amount for the fund based portion shall
NCGTC issued introduction of ECLGS 3.0, modification in ECLGS 2.0 be provided to borrowers under the scheme during which
along with extension of all three schemes (ECLGS 1.0, 2.0 & 3.0) interest shall be payable. The principal shall be repaid in 48
until June 30, 2021, vide updated operating guidelines dated April instalments (four years) after the moratorium period is over.
16, 2021. Further, introduction of ECLGS 4.0 and modifications in To be eligible for guarantee cover of the sanctioned non-
ECLGS 3.0 were communicated vide updated operating guidelines fund based facility, first utilization must happen on or before
dated June 07, 2021, along with extension of all four schemes June 30, 2022.
(ECLGS 1.0, 2.0, 3.0 & 4.0) till September 30, 2021. The last
updated operating guidelines on ECLGS was issued by NCGTC  ECLGS 2.0 (Extension) refers to the scheme for providing
on October 20, 2021, including continuation of existing schemes additional support to existing borrowers of ECLGS 2.0 or
(ECLGS 1.0, 2.0, 3.0 & 4.0) and introduction of separate extension new borrowers eligible under ECLGS 2.0 based on revised
schemes under ECLGS 1.0, 2.0 & 3.0, valid till March 31, 2022. reference date of March 31, 2021. All borrower accounts
As per latest guidelines, utilisation/disbursement under select classified as NPA or SMA-2 as on March 31, 2021 shall not be
schemes/facilities stands extended until June 30, 2022. eligible. The funding can be in the form of additional working
capital term loan facility and / or non-fund based facility
The following are the brief details of various schemes under or a mix of the two, upto 30 per cent. of their total credit
ECLGS, valid until March 31, 2022: outstanding (fund based only, net of support received under
 ECLGS 1.0 refers to the scheme for providing 100 per cent. ECLGS 2.0) not exceeding ₹500 crore as on February 29,
guarantee to member lending institutions, extending eligible 2020 or March 31, 2021, whichever is higher. The tenor of
credit facility in the form of additional working capital term facilities shall be six years from the date of first disbursement
loan to its borrowers up to 20 per cent. of their total fund of fund based facility or first date of utilization of non-fund
based credit outstanding (max. ₹50 crore) across all lending based facility, whichever is earlier. A Moratorium period of
two years shall be provided to borrowers for the fund based
institutions, as on February 29, 2020. All borrower accounts
portion. The principal shall be repaid in 48 instalments (four
classified as NPA or SMA-2 as on February 29, 2020 shall not
years) after the moratorium period is over. To be eligible for
be eligible. The tenor of loans shall be four years from the date
guarantee cover of the sanctioned non-fund based facility,
of first disbursement. A Moratorium period of one year on the
first utilization must happen on or before June 30, 2022.
principal amount for the fund based portion shall be provided
to borrowers under the scheme during which interest shall be  ECLGS 3.0 refers to the scheme for providing 100 per cent.
payable. The principal shall be repaid in 36 instalments (three guarantee to member lending institutions, extending eligible
years) after the moratorium period is over. credit facility in the form of working capital term loan to its
53
borrowers in the Hospitality (hotels, restaurants, marriage classified as a MSME as on March 31, 2021 in terms of the Gazette
halls, canteens, etc.), Travel & Tourism, Leisure & Sporting Notification S.O. 2119 (E) dated June 26, 2020. The borrowing
and Civil Aviation (scheduled and non-scheduled airlines, entity shall be GST-registered (other than exempted MSMEs as on
chartered flight operators, air ambulances, airports and March 31, 2021) on the date of implementation of restructuring.
ground handling units) sectors, upto 40 per cent. of their The borrower’s account should be a ‘standard asset’ as on March
total credit outstanding (fund based only) across all lending 31, 2021, and not restructured in terms of earlier applicable
institutions, subject to a cap of ₹200 crore per borrower. MSME restructuring circulars issued by RBI.
All borrower accounts classified as NPA or SMA-2 as on
In line with the Board-approved Credit and related Policies, your
February 29, 2020 shall not be eligible. The tenor of facilities
Bank extended support (ECLGS, Resolution Framework 2.0, etc.) to
shall be six years from the date of first disbursement. A
the deserving and eligible borrowers based on requests.
Moratorium period of two years on the principal amount
for the fund based portion shall be provided to borrowers In order to ensure inclusive book growth along with effective
under the scheme during which interest shall be payable. portfolio monitoring, the SME Segment under Commercial
The principal shall be repaid in 48 instalments (four years) Banking was further categorised into two groups, i.e., one with
after the moratorium period is over. borrower exposures upto ₹5 Crore and the other with exposures
above ₹5 Crore, each led by independent Heads.
 ECLGS 3.0 (Extension) refers to the scheme for providing
additional support to existing borrowers of ECLGS 3.0 or Small Enterprise Loan (SEL)
new borrowers eligible under ECLGS 3.0 based on revised Small businesses regularly need support in the form of short-to-
reference date of March 31, 2021. All borrower accounts medium term funding. Small Enterprise Loan (‘SEL’) vertical of
classified as NPA or SMA-2 as on March 31, 2021 shall not be your Bank empowers small entrepreneurs by extending them
eligible. The funding can be in the form of additional working business loans so as to enable them grow their businesses.
capital term loan facility, upto incremental credit eligibility
The pandemic has been an extremely difficult time for small
based on outstanding of February 29, 2020 or March 31,
businesses, which impacted their cash flows owing to lockdowns,
2021, whichever is higher. The tenor of facilities shall be
reduced business hours and market demand.
six years from the date of first disbursement. Moratorium
period of two years shall be provided to borrowers for Your Bank ensured its team worked relentlessly and flexibly to
the fund based portion. The principal shall be repaid in 48 serve the customers by working in line with their requirements
instalments (four years) after the moratorium period is over. and guiding them to overcome their challenges.
 ECLGS 4.0 refers to the scheme for providing 100 per cent. Together we learnt that hard times can be overcome if we
guarantee to member lending institutions, extending eligible collaborate, handhold and be empathetic towards our customers
credit facility upto `2 Crore, in the form of fund based by understanding their needs. Your Bank understands SEL vertical
(term loan) or non-fund based (LC for import of capital is now more agile and raring to grow with positivity and hard
goods) facility to existing hospitals/nursing homes/clinics/ work, with close customer connect and bringing on new products
medical colleges/units engaged in manufacturing of liquid offering based on the market feedback we have received.
oxygen, oxygen cylinders, etc., for setting up on-site oxygen The following products are presently offered under SEL:
producing plants. All borrower accounts classified NPA as on
February 29, 2020 shall not be eligible. The tenor of facilities • SEL Term Loans (`1 lakh to `10 lakh)
shall be for a maximum of six years from the date of first These loans with tenure of one to four years are towards
disbursement of fund based facility or first date of utilization business requirements pertaining to working capital or
of non-fund based facility, whichever is earlier. Moratorium asset creation for business or other short-term business
period of six months on the principal amount for the fund requirements. These loans range from ₹1 lakh to ₹10 lakh.
based portion shall be provided to borrowers under the • SEL MAX Loan
scheme, during which interest shall be payable. The principal Businesses can avail this loan for meeting requirements
shall be repaid in 54 instalments (four and half years) after pertaining to working capital or asset creation for business
the moratorium period is over. Last date of disbursement or other short-term business requirements. The tenure of
under fund based facility and utilization of LC under non- this loan is from one year to four years. This loan is from ₹10
fund facility shall be June 30, 2022. lakh to ₹25 lakh.
RBI also issued Resolution Framework 2.0 dated May 05, 2021 NBFC Lending
for resolution of COVID-19 pandemic related stress of Micro, Small Your Bank considers Institutional Lending to Non-Banking Financial
and Medium Enterprises (MSMEs). Further, RBI issued subsequent Companies (‘NBFCs’)/Housing Finance Companies (‘HFCs’) and
instruction on the said framework on June 04, 2021. The framework NBFC-MFIs, primarily, for on-lending activities. The NBFC-MFI
is an extension of existing resolution framework introduced by RBI business includes lending to Microfinance Institutions (‘MFIs’),
on August 06, 2020, in view of continued need to support viable Societies and Trusts engaged in microfinance activities. While
MSME entities on the fallout of COVID-19 pandemic. As per the most of these loans are extended as Term Loans, your Bank also
framework, eligible borrowers with aggregate exposure, including has credit exposure through Direct Assignments and investment
non-fund based facilities, of all lending institutions shall not exposures through Pass Through Certificates (‘PTCs’) and Non-
exceed ₹50 Crore as on March 31, 2021. The borrower should be Convertible Debentures (‘NCDs’). The NBFC (including Housing
54
Finance Company) business primarily includes Term Loan product introduction of dealer/ channel based distribution model.
for on-lending purpose, and is also foraying into working capital The objective of the program is to provide financing to
loan, Direct Assignments and co-lending activities. The book-size existing as well as New to Bank customers for purchase
was at ₹2,690.74 crores as on March 31, 2021, which has grown of new Two Wheelers. Your Bank leveraged on the digital
to ₹4,998.84 crores (including TLTRO of ₹238 crores) as on March capabilities and using digital means, approves two wheeler
31, 2022. The Institutional book, comprising lending to NBFCs loans in just 5 minutes for more than 90 per cent. of cases.
and MFIs, has grown by 86 per cent. Your Bank has expanded its The two wheeler loan caters to the customer’s needs by
reach while building Books through diversified asset class as well giving loans starting from ₹5,000 to ₹5,00,000.
as geographies during the FY under review.
• Car Loan was launched by your Bank during the Q2 of FY
Housing Finance 2021-22, to meet the customers’ aspirations of owning a
Your Bank offers loans for the purchase, construction, repairs and car. Your Bank designed various product schemes for loan
renovation of dwelling units. Loan against property (‘LAP‘), as well amounts ranging from ₹50,000 to ₹1 crore, in order to cater
as loans against rent receivables, are also offered against self- to various customer profiles viz. salaried, self-employed as
occupied residential/commercial property. In line with your Bank‘s well as non-individual entities. With the help of its extensive
objective of increasing financial inclusion, Home Loans and LAP manufacturer and dealer network, your Bank aims to provide
loans are offered to Salaried as well as Self-Employed customers, the best deals to existing as well as new customers.
including New to Bank (‘NTB’) customers.
Third Party Products
Post amalgamation of erstwhile GRUH Finance Limited with the Your Bank currently distributes mutual funds, life insurance,
Bank, your Bank has expanded its scope of housing activities and general insurance, including health insurance products, and
has, additionally, started offering home loan products from more co- branded credit cards. The FY under review has been a year
than 160 bank branches across the nation. Your Bank continues of transformation and emergence. Your Bank continues to have
to focus on the affordable housing segment and has tied-up with unabated focus on offering a robust and comprehensive retail
various Government projects as well as projects in the private sector health insurance solution based product proposition for the
in the Affordable Housing segment. Consequently, a majority of the retail customers who bank with us. To strengthen the product
housing loans are also eligible under the PSL category. suite being offered, your Bank has tied up with a leading Health
During the FY under review, your Bank had launched a special Insurance player during the course of the year. In the life insurance
campaign “Jeet Hi Lenge Baazi Ab Hum” with a very competitive business, your Bank has further enhanced the product proposition
rate of interest and has received good response. offering by adding a third partner for distributing retail insurance
through its branches. In addition, your Bank has added Unit Linked
As on March 31, 2022, your Bank had a total Housing and LAP
Insurance Products (‘ULIPs’) in the product basket being offered
exposure of ₹23,560.12 crore, constituting 24 per cent. of the total
for solicitation. In mutual funds distribution, your Bank has started
assets.
the distribution of funds in the New Fund Offer (‘NFO’) stage
Retail Asset with a vision of providing its customers additional flexibility while
With an objective to serve the financing needs of a larger planning for investments. Your Bank continues to invest towards
population and to maximize the profits by diversifying the risk, building a research and technology driven product distribution
your Bank has launched and strengthened several retail asset proposition, across all Third Party Products and continues to seek
products during FY 2021-22. Customers can now avail various out opportunities to add new product suites to serve customers
loans, like gold loans, personal loans, two-wheeler loans and car financial needs holistically.
loans from the Bank.
The total mutual fund AUM managed under your Bank’s code
• Gold loan aims at fulfilling urgent monetary needs with during FY 2021-22 was ₹527.07 crore, earning an income of ₹3.74
ease of access, simplified documentation process and quick crore. A total of ₹166.04 crore and ₹439.60 crore of general and
turnaround time. Gold loans are given from a ticket size of retail life insurance business, respectively, was garnered through
₹10,000 to ₹25,00,000. the retail network during FY 2021-22, earning a fee income of
• Personal Loan: Your Bank has revamped the product and ₹19.76 crore and ₹128.19 crore, respectively. During FY 2021-22,
changed the model of sourcing by a dedicated sales team, the life insurance business through the existing arrangement in all
catering to existing customers and to start sourcing for New asset verticals amounted to ₹1,298.55 crore, earning an income of
to Bank customers as well. The Personal Loan product has ₹61.50 crore. Your Bank has distributed the co-branded credit cards
started channel partner sourcing from the year 2021 to and earned ₹0.06 crore as commission during FY 2021- 22. Your
extend distribution network in major markets to diversify Bank has also earned ₹0.32 crore as commission for distribution of
and expand the portfolio. Personal loans are given for ticket Atal Pension Yojana, NPS Lite Swavalamban schemes of PFRDA and
size from ₹50,000 to ₹15,00,000 for tenure up to 5 years at others during the FY 2021-22.
a competitive rate of interest. Your Bank has been quickly
Corporate Social Responsibility
ramping up this book during FY 2021-22.
Your Bank’s core commitment to creating an inclusive growth is
• Two Wheeler Loans: Erstwhile Two Wheeler Loans were reflected in its Corporate Social Responsibility (‘CSR’) initiatives,
sourced by Bank Branches for existing customers only. Your which focuses on the empowerment of the marginalised sections
Bank redesigned the product as per market standard with of the society. To address its societal commitments, your Bank
55
has adopted a comprehensive CSR Policy that outlines the CSR support and training on confidence building, enterprise skills,
programmes, in line with Schedule VII to the Companies Act, 2013 consumer interaction, marketing and financial skills. They are also
(the ‘Companies Act’). These programmes are being undertaken provided with sustenance allowance to meet their daily needs till
in the vicinity of your Bank’s operational areas. they start generating substantial income from the assets provided.
In a period of 18 to 24 months, these ultra-poor women start
For the seamless implementation and monitoring of the CSR
graduating, uplifting themselves from extreme poverty1 and get
programme, your Bank has constituted the CSR Committee of the
linked to mainstream society2.
Board of Directors (‘CSRCB’), in accordance with the provisions
of Section 135 of the Companies Act, read with the Companies During the FY under review, 27,600 ultra-poor women were
(Corporate Social Responsibility Policy) Rules, 2014 (‘CSR Rules’), provided farm-based, non-farm and mixed assets to sustain their
as amended. The composition of the CSR Committee is given in livelihoods. These women belonged to 18 districts of Assam,
the Report on Corporate Governance as well as Annual Report on Jharkhand, Madhya Pradesh, Odisha and West Bengal.
CSR forming part of the Board’s Report. An Impact Assessment Study carried out by KPMG indicated that
The marginalised communities residing in the vicinity of your more than 29,000 women were alleviated from below poverty line
Bank’s operational areas are confronted with multidimensional to above the national poverty line (₹1,059.42 for rural and ₹1,286
and inter alia, vulnerabilities, at the core of which is the challenge for urban areas) with a significant increase in their business assets
to secure sustained livelihoods. Accordingly, the interventions of and household income, having a monthly income of at least ₹4,000
and average of ₹7,456 per month. Additionally, 29,487 women
your Bank’s CSR initiatives are appropriately designed to build
had improved savings habits and access to safe and secure shelter.
their capabilities for securing sustainable livelihoods.
Further, a long term study done by the Nobel Laureate Dr. Abhijit
Your Bank continued to engage itself with the marginalised sections
Banerjee et.al.,3 based on Randomised Control Trials (‘RCT’)
of the society for inclusive growth. Your Bank has contributed
method, suggests that in seven years after the assets were first
₹78.43 crore towards 23 CSR programmes implemented through
distributed, livestock revenue, income from non-agricultural
10 Project Implementing Agencies (‘PIAs’). The CSR programmes
entrepreneurial activities and daily wage income was 286 per
were spread across 671 project locations in 71 districts of 13 states
cent., 100 per cent. and 25 per cent., respectively, higher in the
in India, reaching out to 2,76,262 individuals during the FY under
treatment group as compared to the control group mean, and it
review, thereby taking the total outreach to 20,74,603 individuals.
was not because of more working hours, but because the income
In terms with the provisions of Rule 8 of the CSR Rules, your Bank per hour went up and they diversified their businesses and
appointed KPMG Assurance and Consulting Services LLP (‘KPMG’) invested part of the gains from livestock into other activities.
to carry out an independent Impact Assessment of the CSR The monthly consumption of those assigned to treatment
Programmes of your Bank. In terms with provisions of para no. 9.6 increased by 25 per cent., as compared to the consumption of
of the General Circular No. 14 /2021 dated August 25, 2021, those assigned to control, which increased by 12 per cent., and
issued by the Ministry of Corporate Affairs, the Impact Assessment the amount deposited in the savings account by the beneficiaries
Report by KPMG on the CSR programmes of your Bank, is available was more than double as compared to the control group. There
at the Bank’s website https://bandhanbank.com/beyond-banking, was also an increase in formal borrowings.
and the programme wise summary of the same is mentioned in
The study highlights the positive effects across all categories of
the subsequent sections.
outcomes. Compared to non-beneficiaries, the beneficiaries’
The details of CSR activities/projects undertaken during the households of the programme have more assets, food security is
financial year are provided in the Annual Report on CSR forming higher, more earnings, and are financially better off. The results
part of the Board’s Report as Annex – 1. During the year under for the adult-level indexed variables of the study indicated that the
review, the CSR Policy was suitably amended to align it with the individuals are healthier, happier, and less stressed. Furthermore,
recent amendments to the provisions relating to CSR under the the effects (except for productive assets) almost always grows over
Companies Act and CSR Rules, which was duly recommended by time, suggesting that the programme may have put beneficiaries’
the CSR Committee and approved by the Board. The updated CSR household on a different trajectory.
Policy is available on your Bank’s website at: https://bandhanbank.
Health, Nutrition, Drinking Water and Sanitation
com/pdfViewerJS/index.html#../sites/default/files/2021-07/CSR-
During the FY under review, your Bank has contributed ₹18.49 Crore
Policy-2021_1.pdf
(₹15.67 crore in FY 2020-21) towards seven health programmes of
Some of the key programmes of your Bank’s CSR initiatives are: five PIAs, covering 35 districts in nine states of India. The health
programmes of the PIAs supported by your Bank covered 88,019
Targeting the Hardcore Poor Programme
beneficiaries during the year.
During the FY under review, your Bank has contributed ₹27.88
1 Poverty Line benchmarked according to the Suresh Tendulkar’s
crore (₹18.20 crore in FY 2020-21) towards Targeting the Hardcore
Committee Poverty Lines per capita monthly expenditure, 2011-12,
Poor (‘THP’) programme of Bandhan Konnagar, an organization Niti Aayog, Government of India
registered under the Societies of West Bengal Registration Act 2 India SDG Index Score for Goal 1 – No Poverty; Goal 2 – Zero Hunger
XXVI of 1961, Implementing Agency. The programme is designed and SGD 5 – Gender Equality
3 Abhijit Banerjee, Esther Duflo, Raghabendra Chattopadhyay and
for the ultra-poor women-headed households, providing them
Jeremy Shaprio (2016). The Long Term Impacts of a “Graduation”
with a range of gainful micro-enterprises (in the form of farm, Program: Evidence from West Bengal. Working Paper, September,
non-farm and mixed assets, non-cash), along with handholding 2016. J-PAL, MIT, Cambridge, Massachusetts. USA
56
Health five years were enrolled in the nutrition initiatives of the Bandhan
Your Bank contributed towards creating health and hygiene- Health Programme. Out of these, 2,100 children were identified
related awareness and behaviour change through a network with severe acute malnutrition (‘SAM’) and were supported for
of 4,518 village-level female health volunteers, known as nutrition rehabilitation, whereas, 11,607 children under the age
“Swasthiya Sahayikas”, who reached out to 2,16,918 pregnant of five were found with moderate acute malnutrition (‘MAM’) and
women and lactating mothers. The Swasthiya Sahayikas held were provided with nutritional supplements, including support for
38,266 health awareness forums. These sessions were attended a nutritional garden. 94 per cent. of the children over 24 months
by 7,71,600 female participants belonging to the reproductive completed their primary immunization and 83.25 per cent.
age group. The Swasthiya Sahayikas and the Health organisers (National Average 54.90 per cent.4) of children from 0-6 months
made 14,81,310 home visits to follow-up on the health status were exclusively breastfed.
of pregnant women, lactating mothers and children below
To provide round the year nutrition support, 27,444 households
five years, and have taken 2,278 women for institutional
were provided planting materials of fruits and vegetables for
deliveries during ante-natal check-ups (‘ANC’) and other health
setting-up their nutrition gardens. These nutrition gardens helped
check-ups.
families, especially, women and children, to consume pesticide-free
The Swasthiya Sahayikas of the health programme inducted fresh fruits and vegetables round the year. This initiative has helped
menstrual hygiene behaviour change communication amongst the in reducing the protein-energy malnutrition (‘PEM’) amongst the
women, especially, the adolescent girls and infant care behaviours children who are less than five years of age and is evident from
to the pregnant women and lactating mothers. They provided the fact that the wasting of children under-five has gone down
sanitary pads during door-to-door visits and have also started to 9 per cent. (as against the national average of 35.7 per cent.4).
to supply infant diapers, soaps, hand sanitizers, moisturisers, The awareness regarding a balanced and adequate diet during
etc. pregnancy, coupled with the availability of fruits and vegetables
These efforts resulted in improving the institutional deliveries from the nutrition garden, resulted in reducing the low birth weight
to 90.25 per cent., (compared to the national average of 78.90 incidences to a mere 2 per cent. of the live births, as compared to
per cent.4) and complete ANC to 91 per cent. (compared to the the national average of 18.2 per cent.4 live births being under 2.5 kg.
national average of 51.20 per cent.4). An Impact Assessment Study conducted by KPMG estimated that
An Impact Assessment study conducted by KPMG indicated that there has been reduction in malnutrition among children below
the programme contributed in the improvement by 2 per cent. five years of age from 14 per cent. to 4 per cent.
to 10 per cent. for Institutional deliveries ranging between 94 per Drinking Water
cent. to 98 per cent., improved by 4 per cent. for complete ANC During the FY under review, 62 community-level reverse osmosis
ranging between 94 per cent. to 97 per cent., and an improvement water treatment plants were operational, which provided 29,577
by 10 per cent. to 21 per cent. for immunisation ranging between kiloliters of purified safe drinking water to 33,749 households.
98 per cent. to 99 per cent.
Sanitation
A study conducted by Grameen Foundation and Freedom from Your Bank has contributed towards developing the community-led
Hunger India Trust from 2015 to 20185, concluded that the sanitation and school sanitation programme of two PIAs, covering
programme has a visible positive impact amongst the participants three districts in three states of India. The initiatives helped in
of the health awareness programme, on the level of awareness improving the sanitation infrastructure of 502 households, 19
and health-related behavior, between baseline from lower than 10 government schools, which included separate toilets for Boys and
per cent. to end-line with more than 90 per cent. of women know Girls, using child-friendly engineering, RO drinking water stations,
about Mother and Child Health (‘MCH’) and from 20 per cent. to mid-day meal platform with shades, dishwashing stations, roof
80 per cent. of adolescent girls managing menstrual complications. rainwater harvesting system, etc. The programme induced
Healthcare behaviour change amongst the school teachers and children
Apart from the public health programme, during the FY under through classroom sessions and demonstrations regarding
review, 76,945 patients were provided treatment for various sanitation and personal hygiene, including hand-washing using
diseases, like cataracts, hypertension, diabetes, cough and cold, soaps after using toilets, before and after a meal, before holding
etc., in three districts of three states of India through the PIAs, infants, after arriving, after playing outdoors, after playing with
taking the total to 2,47,602 patients being treated. animals, after coughing, sneezing or blowing nose, cleaning
toilets, flushing toilets after use, using sanitary pads for menstrual
Nutrition
hygiene, etc. The programme also supported monitoring of the
During the FY under review, 2,75,922 children under the age of
operation and maintenance of the facilities created.
4 International Institute for Population Sciences (IIPS) and ICF. 2017. Education
National Family Health Survey (NFHS-4), 2015-16: India. Mumbai: IIPS.
http://rchiips.org/nfhs/NFHS-4Reports/India.pdf Your Bank’s education programme provides quality education to
5 Alison Burgon Bardsley, Bobbi Gray, Cassie Chandler, and Sabina the children belonging to the marginalised sections of the society in
Rogers (2018). Maa Aur Shishu Swasthya (MASS) Mother and Child your Bank’s catchment area(s). The education programme enables
Health Program, 2015-2018. Final Project Report. December 2018.
the children to improve their learning outcomes, especially in
Grameen Foundation and Freedom from Hunger India Trust. https://
grameenfoundation.org/documents/MASS_Final_Evaluation_ Science, Technology, English and Mathematics (‘STEM’) subjects
Report_2018_Final.pdf and increase their retention and classroom engagement. The
57
programme also provides training to the teachers belonging to the Water Conservation
communities, government schools and schools run by the various The water conservation initiative aims at water security and
charitable trust, who are providing free education to transform drought-proofing to some of the high moisture stressed regions of
their pedagogy, and integrated various teaching and learning tools India, thereby providing a safety net to agriculture and livestock-
in their lesson plans and track the comprehensive continuous based livelihoods. The initiatives facilitate participatory watershed
assessment of each child. management by empowering the communities to participate in the
Your Bank contributed ₹17.01 crore (₹14.80 crore in FY 2020- planning and implementation of local water resource development.
21) towards the education programme of three PIAs, benefiting Measures, such as, building, reviving and maintaining water-
67,575 marginalised children in 33 districts of six states of India. harvesting structures, prioritisation and judicious use of water
for every community member, crop planning and water-efficient
An Impact Assessment study conducted by KPMG indicated that farming, use of drought-resistant varieties, cultivation of high-
according to the situational assessment conducted by Asian value crop requiring less water, etc., creates a multiplier effect in
Institute for Sustainable Development (‘AISD’) in 2021, it was drought-proofing and climate change adaptation measures and
indicated that over 85 per cent. of the parents across the states higher income generation. The programme has supported the
applauded the good quality of education provided at Bandhan construction of 23 water harvesting structures with a storage
Education Centre (‘BEC’). The respondents highlighted that capacity of over 120,000 kiloliters of water in two states, which
there had been an improvement in the academic performance not only provided drinking water to over 1,500 families but also
in English and Mathematics of their wards in formal schools due supported participatory irrigation of various crops and helped in
to the support provided at the BECs. The parents and guardians generating an income of more than ₹123 Lakh.
shared that the staff at BEC provided them with hand-holding
support during the enrolment of their children in formal schools. Afforestation
The report further indicated that the prolonged closures due to Your Bank’s afforestation initiatives have contributed towards
the COVID-19 pandemic had affected the learning capabilities of the project on establishing “Bio-shield” to save the mangroves in
the students. the Bharuch district of Gujarat. Mangrove plantation of 67,540
saplings, carried out in 20 Hectares in a stretch of 1 kilometer of
Support to Person with Disabilities coastline, was done along with plantation of other medical plant
In line with the commitment to inclusive growth, your Bank
species and fodder species, sequestering over 4,400 tonnes of CO2
has contributed ₹38.25 Lakh (₹38.85 Lakh in FY 2020-21) to the
annually. The fodder bank was created to offset the biotic pressure
initiatives of three PIAs, who are dedicated to providing equal
from the mangrove area. The project created 4,629 person-days
opportunities and a conducive environment to persons with
of employment and benefited 9,123 beneficiaries with additional
disabilities (‘PwD’). During the FY under review, the initiatives
income generating avenues from fodder and medicinal plants
have supported 270 PwDs in three districts of three states of India
harvesting.
taking the total to 1,332 PwDs supported through these initiatives.
Skill Development
Dividend
Pursuant to Regulation 43A of the SEBI (Listing Obligations and
Your Bank’s skill development initiatives provide market-linked
Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’), the
and job-ready employable skills to the youths from marginalised
Board of Directors of your Bank has adopted a Dividend Distribution
sections of the society in various domains. This initiative not only
Policy that, inter-alia, balances the objectives of appropriately
provides on-job training and job placement facilitation in the
rewarding shareholders and retaining capital to maintain a healthy
organised sector but also a follow-up on the placements so that
capital adequacy ratio. In addition to the Dividend Distribution
the youths are settled in their job post-training.
Policy, the dividend payout ratio of the Bank is guided by the
During the FY under review, your Bank contributed ₹4.79 core Circulars on dividend issued by RBI, from time to time. The Policy
(₹4.89 crore in FY 2020-21) towards the skill development is available on the Bank’s website at https://bandhanbank.com/
initiatives of two PIAs in 16 districts of six states of India. These PIAs pdfViewerJS/index.html#../sites/default/files/2021-07/Dividend_
operated 16 training centres in domains, like, Warehousing and Distribution_Policy.pdf
Logistics, Retail and Customer Care, Sales and Marketing, ITeS and
BPO, Refrigeration and Air Conditioning, Computer Accounting, In order to conserve capital, the Board of Directors has not
Hardware and Networking, BFSI, Tailoring, Mason, Electrical, GDA proposed any dividend (Previous Year ₹1 per share) for the
(Nursing), Manual Metal Arc Welding, Fitter Fabrication, etc. financial year ended March 31, 2022.
During the FY under review, 3,738 youths were trained, of which Transfer to Reserves
more than 75 per cent. were placed with net salary ranging from In line with the RBI regulations, your Bank has transferred an
₹8,000 to ₹15,000 plus other performance-based allowances and amount of ₹31.45 crore to the statutory reserve during the
social security benefits, like, Provident Fund (‘PF’) and Employee financial year ended March 31, 2022.
State Insurance (‘ESI’).
Issuance of Equity Shares & Capital Adequacy Ratio
An Impact Assessment study conducted by KPMG indicated During the FY under review, your Bank has allotted 1,66,666 equity
that between 2016 to 2021, 11,478 youth were trained with a shares of ₹10 each fully paid-up pursuant to exercise of stock
placement rate of over 68 per cent. These youth earned salaried options by the eligible Employees of your Bank, aggregating to
income in organised sector, with average salary of ₹13,591. ₹16,66,660.
58
Post allotment of aforesaid equity shares, the issued, subscribed is governed by the provisions of the Companies Act, the Banking
and paid-up share capital of your Bank stood at ₹16,10,76,58,670, Regulation Act, 1949 (the ‘BR Act’), the SEBI LODR, other
comprising 1,61,07,65,867 equity shares of ₹10 each fully paid-up applicable laws and the Articles of Association of your Bank. At
as on March 31, 2022. the end of March 31, 2022, the Board of your Bank had twelve
Directors, out of which nine were Independent Directors, two
Your Bank has not issued any equity shares with differential voting
were Non-Executive Non-Independent Directors, including one
rights during the FY under review.
Nominee Director of Caladium Investment Pte. Ltd, and the
The authorised share capital of the Bank was ₹32,00,00,00,000, Managing Director and CEO.
comprising 3,20,00,00,000 equity shares of ₹10 each, as on March
Appointments
31, 2022. Ms. Divya Krishnan (DIN: 09276201)
Your Bank’s capital adequacy ratio (‘CAR’), calculated in line The Board of Directors of the Bank, at its meeting held on May
with the RBI Circular on Capital Adequacy Framework, stood at 11, 2022, on the basis of the recommendations of the Nomination
20.10 per cent. as on March 31, 2022, well above the minimum and Remuneration Committee of the Bank (‘NRC‘), has approved
regulatory requirements of 10.875 per cent., out of which Tier 1 the appointment of Ms. Divya Krishnan (DIN: 09276201) as an
CAR was 18.89 per cent. and Tier 2 CAR was 1.21 per cent. Additional Non-Executive Non-Independent Director [Nominee of
Bandhan Financial Holdings Limited (‘BFHL’ or ‘NOFHC’), promoter
Performance and Financial Position of the Subsidiaries, of the Bank] on the Board of the Bank, with effect from May 11,
Associates or Joint Venture 2022, in place of Mr. Ranodeb Roy (DIN: 00328764), erstwhile Non-
Your Bank did not have any subsidiary, associate or joint venture executive Non-Independent Director of the Bank. Ms. Krishnan
company during the FY 2021-22. Accordingly, no statement is shall hold office of additional director up to the date of the ensuing
required to be reported in Form AOC-1. Annual General Meeting (‘AGM’) or upto three months from the
Awards and Recognitions date of her appointment, whichever is earlier. Further, the NRC
Over the years, your Bank has received multiple prestigious awards and the Board have recommended the appointment of Ms. Divya
from respected institutions. During the FY under review, your Krishnan as a Non-executive Non-Independent (Nominee) Director
Bank has been bestowed with the ‘Best Growth Performance- of the Bank, liable to retire by rotation, to the Shareholders for
their approval at the ensuing AGM.
Banks’ award by Dun & Bradstreet as part of Dun & Bradstreet’s
Corporate Awards for India’s Top 500 Companies 2021. Ms. Divya Krishnan is a finance and investment banking
professional and currently a visiting faculty at Ashoka University.
Rating of Various Debt Instruments
Ms. Krishnan was formerly a Chief Investment Officer (‘CIO’)
Details of rating of various debt instruments of the Bank as on
and Head of Investment at SBI Mutual Fund. Prior to becoming
March 31, 2022 are as under:
CIO, Ms. Krishnan worked as a fund manager at SBI Funds. Post
Instruments Rating Rating Amount her voluntary exit from SBI in 2001, Ms. Krishnan has served as
Agency (₹ in Cr.) a consultant to a number of leading non-profits and NGOs. She
worked closely with non-profit institutions, catalysing growth
Term Loan from Banks [ICRA]AA(Negative) ICRA 80 through impactful programs.
Certificate of Deposit [ICRA]A1+ ICRA
6,000(1) Mr. Philip Mathew (DIN: 09638394)
CRISIL A1+ CRISIL Pursuant to the recommendations of the NRC, the Board approved
Non-Convertible [ICRA]AA(Negative) ICRA the appointment of Mr. Philip Mathew (DIN: 09638394) as an
Debentures(3) 2,052.50 (2) Additional Director (Independent) of the Bank, effective June 15,
CRISIL AA/Negative CRISIL 2022, after ascertaining his fit and proper status and independence
Fixed Deposits FAAA / Negative CRISIL from the management of your Bank. Pursuant to the provisions of
1,600
Programme(3) Section 161 of the Companies Act, read with Regulation 17(1C)
of the SEBI LODR, he will continue to hold office as an Additional
(1) rating of ICRA is for ₹3000 crore only
Director of the Bank, up to the date of the ensuing AGM or upto
(2) rating of ICRA is for ₹196.40 crore only
three months from the date of his appointment, whichever is
(3) t ransferred from erstwhile Gruh Finance Limited pursuant to the
effectiveness of the Scheme of Amalgamation. earlier. Your Bank has received a notice in writing from a member
proposing his candidature as Director on the Board of the Bank.
During the FY 2021-22, your Bank has fully repaid the Subordinated Further, the NRC and the Board have also recommended his
Tier II Non-Convertible Debentures amounting to ₹160 crore appointment as an Independent Director, not liable to retire by
listed on BSE Limited on its maturity, to the Debenture holder. rotation, to the Shareholders at the ensuing AGM, for a period of
Accordingly, ICRA Ltd and CARE Ratings Ltd have withdrawn its three years, effective June 15, 2022.
rating of Subordinated Tier II Non-Convertible Debentures. CRISIL
Ratings Ltd has also withdrawn Subordinated Debt amounting to Mr. Mathew, a HR practitioner, has almost 30 years of work
experience. He left HDFC Bank as the Chief People Officer in
₹35 crore, as there was no outstanding amount due against the
2018 after his association of around 16 years. During his tenure
Subordinated Debt.
at HDFC Bank, he was involved in various HR related initiatives
Board of Directors such as successful transition to a cloud-based enterprise-wide HR
The composition of the Board of Directors of the Bank (‘Board’) application, amongst the first to adopt the new governance and risk
59
management standards set by Compensation Guidelines by RBI, recommendations of the NRC, the Board, at its meeting held on
recognition as ‘Best Employer’ in the BT Survey in 2016, etc. His June 15, 2022, has approved their re-appointment as Independent
experience as a HR practitioner spans across organisations involved Directors of the Bank, not liable to retire by rotation, for the
in manufacturing and financial services. His career journey has second term of five years each, effective May 08, 2023, subject
been through the entire landscape of HR with significant depth. He to the approval of Shareholders of the Bank, by way of special
was Plant HR In charge at Rallis India Ltd and Marico Industries Ltd, resolutions, at the ensuing AGM.
Project Lead for roll-out of new PMS at ANZ Grindlays Bank, a brief
The resolution(s) in respect of appointments and re-appointments
corporate stint at Colgate-Palmolive before becoming Head HR at
of the Directors, as aforesaid, have been included in the Notice
Sharekhan.com and thereafter, moved to HDFC Bank in 2002.
convening the 8th AGM of the Bank. Brief profiles of these
Dr. Aparajita Mitra (DIN: 09484337) Directors, together with other requisite disclosures/details,
Pursuant to the recommendations of the NRC, the Board approved have been annexed to the said Notice. None of the Directors as
the appointment of Dr. Aparajita Mitra (DIN: 09484337) as an proposed for appointment / re-appointment will cross the age of
Additional Director (Independent) of the Bank, effective July 13, 75 years during the continuation of their tenure on the Board of
2022, after ascertaining her fit and proper status and independence the Bank.
from the management of your Bank. Pursuant to the provisions of
Shareholders approved appointments/ re-appointments
Section 161 of the Companies Act, read with Regulation 17(1C)
During the FY under review, the following appointments/re-
of the SEBI LODR, she will continue to hold office as an Additional
appointments were approved by the Shareholders at the 7th AGM
Director of the Bank, up to the date of the ensuing AGM or upto
of the Bank held on August 06, 2021:
three months from the date of her appointment, whichever is
earlier. Your Bank has received a notice in writing from a member • Appointment of Mr. Suhail Chander (DIN: 06941577) as an
proposing her candidature as Director on the Board of the Bank. Independent Director of the Bank, not liable to retire by
Further, the NRC and the Board have also recommended her rotation, for a period of three years, effective March 19,
appointment as an Independent Director, not liable to retire by 2021.
rotation, to the Shareholders at the ensuing AGM, for a period of
• Appointment of Mr. Subrata Dutta Gupta (DIN: 08767943)
three years, effective July 13, 2022.
as an Independent Director of the Bank, not liable to retire
Dr. Aparajita Mitra, a Doctorate in Agriculture (Dept. of Plant by rotation, for a period of three years, effective March 19,
Molecular and cellular Biology, Bose Institute), has extensive 2021.
experience and expertise of more than three decades in the field
• Dr. Holger Dirk Michaelis (DIN: 07205838), Nominee Director
of agricultural sciences. She has done extensive research and
of Caladium Investment Pte. Ltd., being longest in office and
published articles in the field of commercial micropropagation
liable to retire by rotation, retired at the 7th AGM of the
of Horticulture/tree and medicinal species, DNA extraction and
Bank, and who, being eligible, had offered himself for re-
sequencing, DNA fingerprinting (plants), gel electrophoresis,
appointment, was duly re-appointed.
protein and isozyme analysis, etc. Dr. Mitra is a recipient of the CSIR
Fellowship and the ‘Women Scientist Award’ from the Department • Re-appointment of Dr. A. S. Ramasastri (DIN: 06916673) as
of Science and Technology, Government of India, 2005 for the an Independent Director of the Bank, not liable to retire by
project “Identification of Disease Resistant Genetic Markers in rotation, for the second term of five years, effective August
Bamboo Spp.” She has also guided various postgraduate students 08, 2021.
from well-known universities on their projects in the domain of
• Re-appointment of Dr. Anup Kumar Sinha (DIN: 08249893)
Plant Tissue culture part. She has been associated with various
as an Independent Director and Non-Executive Chairman of
organizations.
the Bank, not liable to retire by rotation, for the second term
Re-appointments from January 07, 2022 up to July 04, 2026, i.e., up to the date
Dr. Holger Dirk Michaelis (DIN: 07205838) of his attaining the age of 75 years. RBI approved tenure as
In terms of the provisions of Section 152 of the Companies Non-Executive Chairman is upto January 06, 2025.
Act, Dr. Holger Dirk Michaelis, Nominee Director of Caladium
• Re-appointment of Mr. Santanu Mukherjee (DIN: 07716452)
Investment Pte. Ltd. on the Board of the Bank, being longest in
as an Independent Director of the Bank, not liable to retire by
office, shall retire at ensuing AGM and being eligible, has offered
rotation, for the second term of five years, effective January
himself for re-appointment.
07, 2022.
Mr. Narayan Vasudeo Prabhutendulkar (DIN: 00869913) and
• Re-appointment of Mr. Chandra Shekhar Ghosh (DIN:
Mr. Vijay Nautamlal Bhatt (DIN: 00751001)
00342477), MD & CEO of the Bank, for a period of three
Mr. Narayan Vasudeo Prabhutendulkar and Mr. Vijay Nautamlal years, effective July 10, 2021, not liable to retire by rotation.
Bhatt were appointed as Independent Directors of the Bank,
Cessations
effective May 08, 2020, for a period of three years each and their
During the FY under review, none of the Directors on the Board of
respective current terms are expiring on May 07, 2023. Accordingly,
the Bank ceased to hold office.
considering the outcome of their performance evaluation, notices
received under Section 160 of the Companies Act from member(s) The Board of Directors of the Bank, at its meeting held on May 11,
proposing their candidature for the office of Directors and the 2022, has taken on record, the cessation of Mr. Ranodeb Roy (DIN:
60
00328764) as Non-executive Non-Independent Director of the Declaration from Independent Directors

Bank, pursuant to withdrawal of his nomination by NOFHC from The Bank has received necessary declarations from all the
the Board of the Bank. Accordingly, Mr. Ranodeb Roy ceases to Independent Directors under Section 149(7) of the Companies Act
be a Non-Executive Non-Independent Director of the Bank, with and Regulation 25(8) of the SEBI LODR that they meet the criteria
effect from May 11, 2022. of independence laid down under Section 149(6) of the Companies
Further, Mr. Snehomoy Bhattacharya, Independent Director of the Act, read with allied rules, and Regulation 16(1)(b) of the SEBI
Bank, completed his second term of four years as an Independent LODR, respectively. The Board has reviewed the disclosures of
Director on the Board of the Bank on July 08, 2022. Accordingly, independence submitted by the Independent Directors and is of
Mr. Bhattacharya ceased to be the Director of the Bank effective the opinion that the Independent Directors of the Bank fulfil the
July 09, 2022. conditions specified in the Companies Act and SEBI LODR and are
independent of the management. In the opinion of the Board, all
Necessary disclosures in this regard have been made to the Stock the Independent Directors possess requisite expertise, experience,
Exchanges, RBI and the Ministry of Corporate Affairs. The Board integrity and proficiency as required under the applicable laws and
places on record its sincere appreciation for the contributions
policies of the Bank.
made by Mr. Roy and Mr. Bhattacharya during their tenure as
Directors of the Bank. Familiarisation Programmes for Independent
Directors
Key Managerial Personnel
The details of the familiarisation programme(s) for the
Mr. Chandra Shekhar Ghosh, MD & CEO; Mr. Sunil Samdani, Chief
Independent Directors of the Bank are disclosed in the Report on
Financial Officer; and Mr. Indranil Banerjee, Company Secretary of
Corporate Governance forming part of the Board’s Report.
the Bank are the Key Managerial Personnel of the Bank, as per
the provisions of the Companies Act and rules made thereunder. Board Evaluation
Further, during the FY under review, the Board, at its meeting Pursuant to recommendation of the NRC, the Board has framed the
held on June 25, 2021, while approving the re-appointment of ‘Performance Evaluation Policy for the Board, Committees, Non-
Mr. Ghosh as the MD & CEO of the Bank, had also approved his Independent / Whole Time Directors and Independent Directors‘
re-appointment as Key Managerial Personnel of the Bank, for a (the ‘Board PE Policy’), in accordance with the relevant provisions
period of three years, effective July 10, 2021, pursuant to the of the Companies Act, the SEBI LODR and SEBI Guidance Note on
provisions of Section 203 of the Companies Act. Board Evaluation. In terms of the Board PE Policy, performance
Meetings of the Board and Board Committees evaluation of the Board and its Committees, Chairman and
The Board met fourteen times during the FY 2021- 22, on April individual Directors are done on various parameters. Parameters
12, 2021; May 06, 2021; May 08, 2021; June 25, 2021; July 30, for the Board include various aspects, such as, structure, meetings,
2021; September 29, 2021; October 26, 2021; October 29, 2021; appointments, agenda, discussions, roles and responsibilities,
January 13, 2022; January 21, 2022; February 11, 2022; February evaluation of risks, strategy, governance and compliance, conflict
19, 2022; February 24, 2022; and February 25, 2022. The details of of interest, etc.
the Board meetings held during the FY, attendance of Directors at Parameters for Board Committees include various aspects, such
the meetings, and other details have been provided separately in as, mandate and composition, effectiveness, meetings, agenda,
the Report on Corporate Governance forming part of the Board’s minutes, discussion and dissent, independence, etc.
Report, enclosed as Annex 4.
Parameters for the Directors include various aspects, such as,
Your Bank currently has the following nine Board Committees: knowledge and competency, integrity, functioning, commitment,
1. Audit Committee; contribution, attendance, initiative, teamwork, communication,
2. Nomination & Remuneration Committee; corporate governance, updates, etc., and in case of Independent
3. Stakeholders’ Relationship Committee; Directors, additional parameters include fulfilment of the
independence criteria and their independence from the
4. Risk Management Committee;
management.
5. IT Strategy Committee;
The evaluation process has been carried out electronically. The
6. Customer Service Committee;
Board of Directors has done the evaluation of Independent
7. Corporate Social Responsibility Committee; Directors, excluding the Independent Director being evaluated.
8. Committee of Directors; Similarly, Independent Directors have done the evaluation
9. Special Committee for Monitoring High Value Frauds. of the Board as a whole, Non-Executive Chairman and Non-
Independent Directors, including the MD & CEO. The respective
Additionally, meeting(s) of Independent Directors, without the
Chairmen of Board Committees have done performance
attendance of non-independent directors and members of
evaluation of their respective Committees. Thereafter, the
management, were also held during the FY under review.
report on performance evaluation of Directors, excluding
The details with respect to the composition, terms of reference, NRC members, and Chairman was submitted to the NRC,
numbers of meetings held, attendance of members, etc., of whereas the report on performance evaluation of the Board
these Board Committees are provided in the Report on Corporate as a whole, Board Committees and Directors who were NRC
Governance forming part of the Board’s Report. members was submitted to the Board for necessary action. The
61
NRC, after considering the performance evaluation report of statement containing particulars of employees as required under
Directors, excluding NRC members, made its recommendations Section 197(12) of the Companies Act read with Rule 5(2) of
to the Board for continuation / re-appointment of Directors. the Companies (Appointment and Remuneration of Managerial
Thereafter, the Board considered the recommendations of the Personnel) Rules, 2014, are appended separately as Annex – 2(a)
NRC, and report on the performance evaluation of the NRC and forms part of the Board’s report. The ratio of the remuneration
members, the Board as a whole and the Board Committees. of each Director to the median remuneration of the employees
The Board evaluation has provided some valuable inputs for of your Bank and other details in terms of Section 197(12) of the
optimising the roles and responsibilities, quality, quantity Companies Act read with Rule 5(1) of the Companies (Appointment
and timeliness of flow of information between the Bank’s and Remuneration of Managerial Personnel) Rules, 2014, are
management and the Board. forming part of the Board’s report as Annex – 2(b).
The Board of Directors of the Bank is satisfied with the outcome of Employee Stock Options
the performance evaluation process. They were of the view that Your Bank has instituted Employees Stock Option Scheme
the Directors have been discharging their roles and responsibilities (‘ESOP’), i.e., Bandhan Bank Employee Stock Option Plan Series
as expected by the Board and as required under the applicable 1 (‘ESOP Scheme’) to enable its employees to participate in
regulatory provisions. The Board continues to be duly constituted your Bank’s future growth and financial success. Your Bank
representing various expertise, skill sets, knowledge and provides its employees with a platform for participating in
qualification required for the banking business. There was no important decision making and instilling long-term commitment
observation during the performance evaluation of the previous towards the future growth of the Bank by way of rewarding
years; and so is the case with the current year. them through stock options. ESOP Scheme of your Bank is in
compliance with the provisions of SEBI (Share Based Employee
Appointment of Directors
Benefits and Sweat Equity) Regulations, 2021 (‘SEBI SBEBSE’)
Appointment of Directors on the Board is guided by the
and no change has been made therein during the financial year
provisions of the BR Act and the guidelines/ circulars issued
under review. The ESOP Scheme is administrated by the NRC. In
by the RBI, from time to time, the Companies Act and the SEBI
terms of the ESOP Scheme, the Options would vest not earlier
LODR. In view of these provisions, your Bank has adopted a
than one year and not later than four years from the date of
‘Policy on Appointment and Fit & Proper Criteria for Directors’. In
grant as decided by the NRC /Board. The Options granted shall
terms of this Policy, while appointing directors, the NRC / Board
be equally vested over four years. The exercise period shall be a
considers fit and proper criteria, various skill sets, professional
maximum of five years from the date of the respective vesting of
knowledge, practical experience, integrity, gender diversity and
Options. Since your Bank has been allotting fresh equity shares
additionally, status of independence in case of Independent
upon exercise of Options, the source of the shares is of primary
Directors. The details of the same have been included in the
issuance.
Report on Corporate Governance forming part of the Board’s
Report. The Policy on Appointment and Fit & Proper Criteria for In terms of the Compensation Policy of your Bank and the
Directors was reviewed and suitably amended, by the Board on Shareholders’ approved ESOP Scheme, fresh grants have been
the recommendations of the NRC, to align it with the regulatory/ made during the financial year under review to the eligible
statutory changes. The updated Policy is available on the Bank’s employees. Except the MD & CEO, none of the Directors was
website at: https://bandhanbank.com/pdfViewerJS/index. issued the stock options during the financial year under review.
html#../sites/default/files/2022-03/Policy-on-Appointment-and-
The information pertaining to the ESOP Scheme as prescribed
Fit-and-Proper-Criteria-for-Directors.pdf.
under SEBI SBEBSE is available on the website of the Bank at
Remuneration Policy https://bandhanbank.com/annual-reports.
Your Bank has formulated and adopted a comprehensive
Further, as required under SEBI SBEBSE, a certificate from
‘Compensation Policy’ for its Directors, Key Managerial Personnel
the Secretarial Auditor of the Bank certifying that your Bank
and Employees, in terms of Section 178 of the Companies Act,
has implemented the ESOP Scheme in accordance with the
read with the relevant Rules made thereunder, Regulation 19 of
applicable provisions of the SEBI SBEBSE and resolution(s)
the SEBI LODR and the Guidelines /Circulars issued by the RBI,
passed by Shareholders, will be made available electronically
in this regard, from time to time. The details of the same have
at the AGM.
been included in the Report on Corporate Governance forming
part of the Board’s Report. The Compensation Policy was suitably Deposits
amended, by the Board on the recommendations of the NRC, to Being a banking company, the disclosures required as per Rule
include the provision of payment of fixed remuneration to the 8(5)(v) & (vi) of the Companies (Accounts) Rules, 2014, read with
Non-Executive Directors excluding the Chairman of your Bank, Sections 73 and 74 of the Companies Act, are not applicable to
in terms of the RBI Circular dated April 26, 2021. The updated your Bank. The details of the deposits received and accepted by
Compensation Policy of your Bank is available on the Bank’s your Bank, as a banking company, are enumerated in the Financial
website at: https://bandhanbank.com/pdfViewerJS/index.html#../ Statements for the FY ended March 31, 2022, forming part of this
sites/default/files/2022-02/Compensation_Policy_2022.pdf. Annual Report.
Employees Remuneration Internal Financial Controls, Audit and Compliance

As on March 31, 2022, your Bank had 60,211 employees. The Your Bank has an Internal Audit Department (‘IAD’) and a
62
Compliance Department (‘CD’), which independently carry Related Party Transactions

out evaluation of the adequacy of all internal controls. These There were no materially significant transactions with related
departments ensure that operating and business units adhere to parties during the FY 2021-22, which could lead to a potential
the laid down internal processes and procedures as well as to the conflict of interest between your Bank and these parties. Prior
regulatory/statutory and legal requirements. omnibus approval is obtained from the ACB for the related
The Compliance Function is one of the key elements in your Bank’s party transactions, which are of repetitive nature as well as for
corporate governance structure. The compliance starts from the the normal banking transactions which cannot be foreseen. The
top, and the Board and Senior Management play an important role quarterly update on the details of transactions with the related
in driving the compliance culture. Your Bank remains committed to parties, pursuant to the omnibus approval, are placed before the
adhere to the highest standards of compliance vis-à-vis regulatory ACB. The Related Party Transactions that were entered, during
prescriptions and internal guidelines. Your Bank has a robust the FY under review, were on an arm’s length basis and were in
Compliance Policy, outlining the compliance philosophy, and roles the ordinary course of business, pursuant to the approval of the
and responsibilities of the CD. ACB. Further, there are no Related Party Transactions required
to be reported in Form AOC-2. However, necessary disclosure
The CD assists the Board and Senior Management in managing the as required under the Accounting Standards (AS 18) read with
compliance risk of your Bank. The CD ensures that overall business of RBI’s Master Direction No.: RBI/DOR/2021-22/83DOR.ACC.REC.
your Bank is conducted in strict adherence to the guidelines issued No.45/21.04.018/2021-22 dated August 30, 2021, as may be
by RBI and other regulators, various statutory provisions, standards updated from time to time, has been made in the note no. 18.11
and codes prescribed by FEDAI, FIMMDA, etc. by evaluating to the annual financial statements for the FY 2021-22. Your Bank
the products / processes, guiding business departments on the has a Policy on dealing with Related Party Transactions, which
various regulatory guidelines with a special emphasis on better was suitably amended, by the Board on the recommendations
understanding of the perspective. It closely works with operational of the ACB, to align it with the changes made in the SEBI LODR.
risk and internal audit functions and monitors various activities of The updated Policy is available on the Bank’s website: https://
your Bank with more emphasis on active risk management. bandhanbank.com/pdfViewerJS/index.html#../sites/default/
As the focal point of contact with RBI and other regulatory entities, files/2022-04/Related_Party_Transaction_Policy_0.pdf.
the CD evaluates the adequacy of internal controls and examines Particulars of Loans, Guarantees or Investments
any systemic correction that is required, based on its analysis and In terms of the provisions of Section 186(11) of the Companies
interpretation of regulatory guidelines and deviations observed Act, the provisions of Section 186 of the Companies Act, except
during monitoring and testing. Your Bank has a robust Anti Money sub-section (1) thereof, do not apply to any loan made, any
Laundering (‘AML‘) framework and tools to manage the AML risk. guarantee given, security provided, or any investment made
It periodically apprises the Audit Committee of the Board (‘ACB‘), by a banking company in the ordinary course of its business.
the Board and the Senior Management on compliance levels, However, the particulars of investments made by the Bank are
based on the changes in the external regulatory environment. disclosed in the Financial Statements for the FY 2021-22, forming
The CD submits the compliance report to the ACB at regular part of this Annual Report, as per the applicable provisions
intervals providing the compliance status with the laws/rules and of the BR Act.
regulations applicable to the Bank.
Whistle Blower Policy/Vigil Mechanism
The IAD independently carries out audit of various functions in
Your Bank has adopted the Board approved ‘Policy on Vigilance
the Bank, primarily to assess the effectiveness of internal control
and Whistle Blower Mechanism‘, as required under Section
processes and compliance with regulatory guidelines. The Bank
177 of the Companies Act, Regulation 22 of the SEBI LODR and
has put in place extensive preventive and detective controls
applicable circulars issued by the RBI. This Policy aims to provide
including segregation of duty, dual controls, monitoring processes,
an avenue to raise concerns on Ethical, Legal or Regulatory
checking of audit trails, supervisory reviews, etc., to mitigate
violations and promptly addressing them while assuring the
the various risks emanating from banking business. IAD further
confidentiality and protection of the Whistle Blower against
ensures independent checks and balances, and adherence to laid
any form of retaliation. Your Bank is committed to conduct all
down policies and procedures of your Bank and also recommends
its business operations and transactions by maintaining highest
improvements in operational processes and systems proactively.
ethical, moral and legal standards. Your Bank encourages its
To maintain the independence of these departments, the employees, all stakeholders and members of general public,
performance evaluation of the Chief Compliance Officer (‘CCO’) who have concerns about suspected misconduct, to come
and the Chief Audit Executive (‘CAE’) is carried out by the ACB. forward and express these concerns without fear of retaliation or
unfair treatment.
Considering the internal financial controls, audit and compliance
systems of the Bank and the work performed by the auditors, This Policy aims at putting in place a detailed Protected Disclosure
including the audit of internal financial controls over financial Mechanism based on RBI directions (‘Protected Disclosures
reporting by the statutory auditors and the reviews performed Scheme for Private Sector and Foreign Banks’) and in compliance
by management under the supervision of the ACB, the Board with the provisions of Whistle Blowing / Vigil Mechanism under
of Directors is of the opinion that the internal financial controls the Companies Act, read with the Companies (Meetings of Board
established and maintained by the Bank are adequate. and its Powers) Rules, 2014, and the SEBI LODR.
63
Significant and Material Orders passed by Regulators Secretarial Auditor and its Report
or Courts or Tribunals Pursuant to the provisions of Section 204 of the Companies Act and
During FY 2021-22, no significant or material orders were passed by Regulation 24A(1) of the SEBI LODR, the Board has appointed CS
any Regulators or Courts or Tribunals against your Bank impacting Anjan Kumar Roy, Practising Company Secretary (FCS No.: F5684,
its going concern status and operations in future. However, during C.P. No.: 4557), as the Secretarial Auditor to conduct Secretarial
the FY 2021-22, the Reserve Bank of India, vide its order dated Audit of the Bank for FY 2021-22. Accordingly, the Secretarial
July 06, 2021, in exercise of the powers conferred under Section Audit Report for FY 2021-22 is enclosed to the Board’s Report
47A(l)(c) read with Section 46(4)(i) of the Banking Regulation Act, as Annex – 3. There are no qualifications, reservations, adverse
1949, had imposed a penalty of ₹1 Crore on the Bank, on account remarks or disclaimers in the Secretarial Audit Report. However,
of contravention of directions contained in Circulars on “Lending the Secretarial Auditor has made an observation in its report that
to Non-Banking Financial Companies (NBFCs)” and “Bank Finance “The Reserve Bank of India, vide its order dated July 06, 2021, has
to Non-Banking Financial Companies (NBFCs)”. Your Bank has imposed a penalty of ₹1 crore on the Bank, in exercise of its powers
enhanced its review and monitoring mechanism to avoid such conferred under section 47A(1)(c) read with section 46(4)(i) of
incidents in future. the Banking Regulation Act, 1949, on account of contravention of
the directions contained in circulars on ‘Lending to Non-Banking
Statutory Auditors and their Report Financial Companies (NBFCs)’ and ‘Bank Finance to NBFCs’.” This
In terms of the ‘Guidelines for Appointment of Statutory Central has also been mentioned under the para ‘Significant and Material
Auditors (SCAs)/Statutory Auditors (SAs) of Commercial Banks Orders passed by Regulators or Courts or Tribunals’. Further, no
(excluding RRBs), UCBs and NBFCs (including HFCs)’ dated April offence or fraud was reported by the Secretarial Auditor of the
27, 2021 (‘RBI Guidelines‘) issued by RBI, banks shall appoint Bank under Section 143(12) of the Companies Act.
the Statutory Auditors for a continuous period of three years,
Cost Records
subject to the firms satisfying the eligibility norms each year and
In terms of the provisions of Section 148(1) of the Companies
the approval of RBI on an annual basis. Further, in terms of the
Act, read with Rule 3 of the Companies (Cost Records and Audit)
RBI Guidelines and the Bank’s Policy for Appointment of Statutory
Rules, 2014, your Bank is not required to maintain cost records
Auditors, your Bank is required to appoint two statutory Auditors.
and accordingly, is not required to undergo cost audit.
Accordingly, the Members of the Bank at the 7th AGM held on
August 06, 2021 had approved the appointment of M. M. Nissim Corporate Governance
& Co. LLP, Chartered Accountants (ICAI Firm Registration No. Corporate Governance is based on the principles of conducting
107122W/W100672), as the Joint Statutory Auditors of the Bank business with integrity, fairness and being transparent in all
for a period of three years, to hold office from the conclusion of transactions, making necessary disclosures. Decisions are made
the 7th AGM until the conclusion of the 10th AGM of the Bank to in compliance with the laws of the land, with full accountability
be held in 2024. M. M. Nissim & Co. LLP is holding the office of and responsibility towards the stakeholders, and a commitment to
Statutory Auditors along with Deloitte Haskins & Sells, Chartered conducting all business in an ethical manner. Your Bank is committed
Accountants (ICAI Firm Registration Number 117365W), who will to achieving the highest standards of Corporate Governance
hold office till the conclusion of 8th AGM. and adhering to the Corporate Governance requirements set
by the regulators. A separate section on Corporate Governance
Therefore, the Bank is required to appoint one more audit standards followed by your Bank and the relevant disclosures,
firm to act as a Joint Statutory Auditor of the Bank in place of as stipulated under the SEBI LODR, the Companies Act and rules
retiring auditors, Deloitte Haskins & Sells. Accordingly, on the made thereunder, is enclosed to the Board’s Report as Annex - 4.
basis of recommendation of the ACB, the Board of Directors has
recommended the appointment of M/s. Singhi & Co., Chartered A Certificate from CS Anjan Kumar Roy, Practising Company
Accountants (ICAI Firm Registration No. 302049E), as Joint Secretary (C.P. No. 4557), confirming compliance by your Bank to
Statutory Auditors of the Bank, for a period of three years to hold the conditions of Corporate Governance as stipulated under SEBI
office from the conclusion of the 8th AGM until the conclusion of LODR, is annexed to the Report on Corporate Governance, which
the 11th AGM of the Bank, for the approval of the shareholders at forms part of the Board‘s Report.
the ensuing AGM, subject to approval of RBI on an annual basis. Annual Return
Approval of RBI has already been received for appointment of Pursuant to the provisions of Section 92(3) read with Section
M M Nissim & Co. LLP, Chartered Accountants (FRN 107122W/ 134(3)(a) of the Companies Act, the draft Annual Return of the
W100672) and M/s. Singhi & Co, Chartered Accountants (FRN Bank, in Form No. MGT-7, as on March 31, 2022, is available on
302049E) as the Joint Statutory Auditors of the Bank for the year your Bank‘s website at https://bandhanbank.com/annual-reports.
2022-23 for their second year and first year, respectively. Further, the final Annual Return of the Bank, as on March 31, 2022,
will be available on your Bank’s website at the said link, upon filing
The Report, given by the Joint Statutory Auditors on the financial
of the same with the Registrar of Companies under Section 92(4)
statements of the Bank for the financial year ended March
of the Companies Act.
31, 2022, forms part of this Annual Report. There has been no
qualification, reservation, adverse remark or disclaimer given by Management Discussion and Analysis
the Auditors in their Report. Also, no offence of fraud was reported The Management Discussion and Analysis Report for the FY 2021-
by the Joint Statutory Auditors of the Bank under Section 143(12) 22, as prescribed under the SEBI LODR, forms part of the Board’s
of the Companies Act. Report, and is enclosed as Annex – 5.
64
Business Responsibility Report • Tracking of energy consumptions at all levels and comparing
In terms of the provisions of SEBI LODR, a Business Responsibility with the best international benchmarks;
Report describing the initiatives taken by your Bank from an • Incorporation of smart meters for energy use monitoring
environmental, social and governance perspective, forms part of and engagement with key stakeholders, at regular intervals,
the Board’s Report, and is enclosed as Annex – 6. to drive energy conservation in the organisation culture;
Integrated Reporting • Inclusion of the latest technologies in air-conditioning
Your Bank has prepared an Integrated Report based on the and inductive equipment in terms of variable drives and
principles enunciated by the International Integrated Reporting improved IKW (Consumption per Ton) in HVAC;
Council, which has been hosted on the website of your Bank
and can be accessed at https://www.bandhanbank.com/annual- • Lighting: Incorporation of 100 per cent. LED for lighting,
reports. The report provides information including financial and daylight harvesting, timed illumination of signage through
non-financial parameters, which would enable the members to central monitoring system. Natural daylight utilization is
make well informed decisions and have a better understanding of encouraged in your Bank buildings;
your Bank’s performance. It also deals with various aspects such as • Daily operations and usage - Conservation through basic
organisational strategy, governance framework, performance and hygiene practices on energy usage through occupancy
prospects of value creation, based on the six forms of capital viz. sensors, zoning of electrical circuits and master switches for
financial capital, manufactured capital, intellectual capital, human premises;
capital, social and relationship capital, and natural capital.
• Water Conservation: Ground water recharge facilities
Compliance with Secretarial Standards through rain water harvesting in upcoming projects, volume
The Board of Directors affirms that your Bank has complied with flow controls at each sink point, water recycling through
the applicable provisions of the Secretarial Standards issued by STPs.
the Institute of Company Secretaries of India, viz., SS-1 relating
to Meetings of the Board and its Committees; and SS-2 relating to The details on the Information Technology used by your Bank in its
General Meetings. operations have been provided under the section on ‘Information
Technology at the Bank’ in this Report.
Information under the Sexual Harassment of
The foreign exchange earnings of the Bank was ₹62.38 lakh
Women at Workplace (Prevention, Prohibition and
(including the net gains arising in all exchanges/derivatives
Redressal) Act, 2013 transactions) whereas the foreign exchange outgo was of ₹ 599.26
Your Bank has adopted zero tolerance towards any action on
lakh during the Financial Year 2021-22.
the part of any of its employees, which may fall under the ambit
of ‘sexual harassment’ at workplace and is fully committed to Human Resource Management
uphold and maintain the dignity of every woman constituent Amidst the tumultuous pandemic phase, your Bank has focused
associated with your Bank. It takes all necessary measures to in rapidly adapting the new normal to ensure business continuity
ensure a harassment free workplace and has instituted an Internal in these uncertain times. It has been consistently focused towards
Committee for redressal of complaints and to prevent/ prohibit adapting Digitization, new e-learning modules across genre and
sexual harassment, in compliance with the guidelines enumerated specifically emphasized on its expansion of Branches and Verticals
in the Sexual Harassment of Women at Workplace (Prevention, for better penetration across the Country reaching out to every
Prohibition and Redressal) Act, 2013. At the beginning of the FY prospective customer. It has set an exemplary example of “Human
under review, three complaints were pending and during the FY, Empathy” providing COVID-CARE support and work from home
13 complaints were received, out of which 14 complaints had facilities for its fellow employees.
been closed during the FY. Two complaints were pending at the
During FY 2021-22, your Bank has increased the manpower
end of the FY, which have since been closed.
strength by 22 per cent. from 49,445 in FY2020-21 to 60,211. Your
Conservation of Energy, Technology Absorption and Bank has Pan India network of 1,189 Retail Bank Branches, 4,252
Foreign Exchange Earnings and Outgo Banking Units and 198 Home Loan Centers. Since inception of your
In our endeavour to achieve aggressive goals to reduce carbon Bank, the manpower has increased by 224 per cent. and your Bank
footprints, the conservation of energy has been integrated with has added 124 per cent. new branches since 2015.
the vision of the organisation and its operations. Your Bank
Your Bank understands human motivation and dedicated efforts to
has made it mandatory to use BEE Standard Energy Efficient
achieve the desired goal. Your Bank is intended towards creating
equipment and promote Energy Efficient Building Design (‘ECBC’)
a workplace of Resilience, where employees can Re-learn and Re-
in the upcoming projects. Some of the steps undertaken by your
imagine to excel and overcome this phase of turmoil. To provide
Bank towards conservation of energy are as under:
a platform towards learning and self -growth, your Bank has
• Smart building systems to achieve the highest level of promoted an aligned architecture as:
efficiency;
 Your Bank has adapted to digital connectivity to connect with
• At banking outlets, the focus is on insulation on walls and talents across the globe with the online mode of interview
roof, optimum window wall ratio, premises shape and via MS Team to restrain physical interaction in this pandemic
orientation, and re-engineering and retrofit of equipment; era.
65
 Competency based grade promotion process to nurture Integrated Risk Management Framework
talent and to elevate employee motivation. 14,003 employees Your Bank operates an Integrated Risk Management Framework,
promoted during FY 2021-22. which is centered on the embedding of a strong risk culture.
The framework ensures that the tools and capability are in place
 Succession planning for roles across the Bank. 5,115
to facilitate risk management and decision-making across the
employees identified for role elevation during FY 2021-22 in
organisation. Risk appetite, supported by a robust set of principles,
the Bank based on Competency analysis.
policies and practices, defines the levels of tolerance for a variety
 Adaptation towards Digitization for an enhanced employee of risks and provides a structured approach to risk-taking within
experience. Introduction of LOS process in Retail Assets, agreed boundaries.
portals like Bandhan Express has also been improvised.
All Bank colleagues share ownership of the way the risk is
 Revamping the Retail Asset Model, on-boarding more managed, working together to make sure business activities and
than 1,100 manpower during FY 2021-22 across regions policies are consistent with risk appetite. The methodology for
compared to 60 manpower during FY 2020-21. Your Bank setting, governing and embedding risk appetite has been further
proposed 48 Retail Asset centers across the Country to be enhanced with the introduction of Long Term Risk Appetite with
made Operational. the aim of increasing alignment with strategic planning and
external threat assessments.
 Conducting both offline and online mode of Campus Hire
creating an energetic talent base. During FY 2021-22, your Risk Appetite
Bank has covered almost 56 Campus across country hiring Risk appetite defines the levels and types of risk that are acceptable,
389 Fresh talent recruits across Tiers. within risk capacity, in order to achieve strategic objectives and
business plans. It links the goals and priorities to risk management
 To nurture and empower the next generation of bankers, your in a way that guides and empowers staff to serve customers well
Bank has partnered with Bandhan School of Development and achieve financial targets.
Management (‘BSDM’), who has obtained affiliation of
Maulana Abdul Kalam Azad University of Technology The risk appetite framework, which is approved annually by
(‘MAKAUT’) – West Bengal, to offer a Post Graduate Diploma the Board, bolsters effective risk management by promoting
in Banking and Finance. Over 9 Batches Conducted and 603 sound risk-taking through a structured approach, within agreed
participants placed across 19 states. Batch X, XI comprising 106 boundaries. It also ensures that emerging risks and risk-taking
activities, which would be out of appetite, are identified, assessed,
students to be on-boarded by July’ 2022. Batch XII comprising
escalated and addressed in a timely manner.
69 students have been initiated in February, 2022.
Your Bank’s risk profile is a holistic representation of all risks that
 Your Bank continued extending empathetic support towards
it holds at a point in time, in the form of a dashboard. Your Bank
staff, providing HOMECARE facilities towards COVID-19
monitors its risk profile, and the Board quarterly reviews reports
affected employees. Your Bank has extended support
and analysis concerning its risk profile.
towards 2,146 staffs during FY 2021-22. Besides, it also
provided in house COVID vaccination for employees based Risk Culture
across regions and at Head Office. In your Bank, risk culture is at the centre of both the risk
management framework and risk management practice. The target
 Empaneled with Organizations like Gallup for a focused
culture across is one in which risk is part of the way employees
emphasis on Employee Survey to further improvise employee
work and think. The desired risk culture behaviours are aligned to
experience with your Bank.
your Bank’s core values, therefore, forming an effective basis for
Over the journey of more than 6 years, your Bank has strengthened risk culture since these are used for performance management,
its workforce by 3.2X resulting in an exciting blend of the old and recruitment and development.
new, in a culture of values-driven growth, professionalism, and The Board and Senior Management sets the “tone at the
ethical governance. A committed and dedicated workforce is top” by supporting a strong culture, defined by the Bank’s
the fundamental base towards strengthening the Bandhan Bank expectations, that guides how employees conduct themselves,
approach towards resilience. Our Human Resources Management work with colleagues, and make decisions. Employees are
strategy is focused in emphasizing a supportive, engaging & strongly encouraged and expected to speak up as and when they
collaborative work environment, remaining customer-centric, see something that could cause harm to any stakeholder of the
performance driven and absolutely future ready. Bank, risking its reputation. This is because risk management is
Risk Management everyone’s responsibility, all employees are expected to challenge
Your Bank is in the business of managing the risks inherent to the risk decisions when appropriate and to escalate their concerns
financial services industry as it aims to create maximum value for when they have not been addressed appropriately. Your Bank has
a well-defined Whistle Blower Policy in place.
shareholders, clients, employees and communities. The ability
to manage risk is a core competency of a bank, and is supported Conduct Risk
by strong risk conduct and risk-aware culture. Your Bank’s view Conduct risk is the risk of inappropriate, unethical, or unlawful
of risks is dynamic, reflecting the pace of change in the financial behaviour on the part of employees or individuals acting on behalf
services industry. of the Bank or from deliberate or unintentional business actions or
66
business practices that may be detrimental in the interest of the Risk Management Framework
Bank, its customer or market. Your Bank has, since its inception, Your Bank’s Risk Management Framework sets forth the core
considered conduct risk as a very important parameter and critical principles on how the Bank seeks to manage and govern its risk.
for robust Internal Control Environment. The Risk Management Many Bank policies and documents anchor to the risk management
Committee of the Board (‘RMCB’) reviews the conduct risk framework’s core principles.
components as part of your Bank’s risk culture.
The Board of Directors has the overall responsibility for your Bank‘s
Risk Identification and Measurement Risk Management, including culture and governance framework.
In your Bank, the risk identification and measurement within the The RMCB assists the Board in discharging these responsibilities,
risk management process comprise: effectively. The RMCB annually reviews and approves the risk
• Regular assessment of the overall risk profile, incorporating management framework.
market developments and trends, as well as external and
internal factors. Your Bank’s utmost priority is to strengthen by building the
right risk and control infrastructure. Your Bank continues to
• Monitoring of the risks associated with lending and credit
enhance its risk management programmes, including the
exposures.
non-financial risk management, in accordance with Industry‘s
• Assessment of trading and non-trading portfolios.
best practices and regulatory guidelines. The Board assesses
• Review of potential risks in new business activities and
management’s performance, provides credible challenges, and
processes.
holds management accountable for maintaining an effective risk
• Analysis of potential risks in any complex and unusual management programme and for adhering to risk management
business transactions. expectations.
Risk Treatment and Mitigation The RMCB also oversees the Risk Management Department
Risk treatment and mitigation is an important aspect of ensuring
(‘RMD’) and the performance of the Chief Risk Officer (‘CRO’),
that risk profile remains within risk appetite. Your Bank’s risk
who reports functionally to the RMCB and administratively to the
mitigation strategies are discussed and agreed with the businesses.
MD & CEO.
When evaluating possible strategies, costs and benefits, residual
In addition, the CRO has the authority to escalate risks and issues
risks (risks that are retained) and secondary risks (those that are
directly to the RMCB.
due to risk mitigation actions) are considered.
Major Risks and Emerging Risks
Stress Testing
An important component of your Bank’s risk management
Stress testing is a key risk management tool and a fundamental
approach is to ensure that Major risks and emerging risks, as
component of your Bank’s approach to capital management. It is
they evolve, are identified, managed, and incorporated into its
used to quantify and evaluate the potential impact of specified
existing risk management assessment, measurement, monitoring
changes to risk factors on the financial strength of the Bank,
and escalation processes. These practices ensure that a forward-
including its capital.
looking risk assessment is maintained by management in the
Your Bank’s Stress testing includes Scenario testing, which course of business development and as part of the execution of
examines the impact of a hypothetical future state to define ongoing risk oversight responsibilities. Senior management and
changes in risk factors as also Sensitivity testing, which examines the Board discuss top and emerging risks on a regular basis.
the impact of an incremental change to one or more risk factors.
These are reviewed and agreed by senior management through Operational Risk
senior committees, including the Executive Risk Committees, the Operational risk is the risk resulting from inadequate or failed
Board Risk Committee (i.e., RMCB) and the Board. internal processes, people and systems, or external events.
Your Bank has also started to carry out Reverse stress testing, in Your Bank is committed to providing uninterrupted service to
order to identify circumstances that may lead to specific, defined its customers and therefore, to ensure business resilience and
outcomes. continuity of the various operational units, a Business Continuity
Management Framework has been put in place with the objective
Internal Capital Adequacy Assessment Process (‘ICAAP’) to recover critical activities and systems within defined timelines;
The examination of capital requirements under normal economic
the safety of people and its assets; communicate with stakeholders
and adverse market conditions enables your Bank to determine
during an emergency; manage reputation risk, etc.
whether its projected business performance meets internal
and regulatory capital requirements. The examination of capital Your Bank has also initiated model-based approach for
requirements under adverse economic and market conditions is measurement of Operational Risk VaR.
assessed through stress testing. Your Bank carries out an internal
Your Bank has also in place, robust Fraud Risk, Outsourcing Risk and
assessment of material risks annually to enable an evaluation of
Legal Risk Frameworks within its Operational Risk Management.
the amount, type and distribution of capital required to cover
these risks. This is referred to as the ICAAP. The ICAAP consists of a Regulatory Risk
point-in-time assessment of exposures and risks at the end of the Your Bank recognizes the increased importance of regulatory risk.
FY, together with a forward-looking stress capital assessment. The It keeps a close watch on the developments in the regulatory
ICAAP is approved by the Board and submitted to the RBI. environment and analyses the expected impact of new regulatory
67
guidelines on your Bank’s businesses and strategy. Your Bank also change, their related impacts and their economic and financial
reviews the trend of regulatory observations for identifying the consequences. These risks are, typically, classified as physical and
pattern of observations, major risk areas and emerging risk to transition risks. Physical impacts include the potential economic
keep the risk under control. Your Bank has done a comprehensive costs and financial losses resulting from the increasing severity and
analysis of the Regulator’s supervisory observations over the years frequency of extreme climate-change related events, and longer-
to increase the robustness of its regulatory compliance. term progressive shifts in the climate whereas transition impacts
relate to the process of adjusting to a low-carbon economy. Your
Information Security and Cyber Risks
Bank has identified the Physical Risk in the Bank’s certain portion
Information security and cyber risks remain as major risks, not
of its advance book, which is prone to natural calamities, such
only for the financial services sector, but for other industries
as, flood and cyclone. Your Bank is presently having provision
worldwide. Your Bank is also subject to heightened risks in the
in its Credit Policy to support green financing and considering
form of cyber-attacks, data breaches, cyber extortion and similar
proposals from such segments to encourage green financing.
compromises, due to the increase in size and scale in nature of
Your Bank’s Liability Risks arising from people, businesses seeking
operations as also clients’ use of personal devices as the Bank
compensation for losses suffered from physical, or transition risks,
has little or no control over the safety of these devices. As the
e.g., floods, pollution, etc., is minimal as your Bank’s major loan
volume and sophistication of cyber-attacks continue to increase,
exposure is into retail and micro finance segment and limited
the resulting implications could include business interruptions,
portfolio is under large segment.
service disruptions, financial loss, theft of intellectual property and
confidential information, litigation, enhanced regulatory attention Market Risk
and penalties, and reputational damage. Market risk is the risk of possible economic loss from adverse
changes in market risk factors, such as, interest rates, credit
Your Bank has not experienced any material loss relating to these
spreads, foreign exchange rates, equity and commodity prices, and
or other types of cyber-attacks. Cybersecurity risk is a priority for
the risk of possible loss due to counterparty exposure. This applies
your Bank, and we continue to develop and enhance our controls,
to implied volatility risk, basis risk, and market liquidity risk. Value-
processes and systems in order to protect our networks, computers,
at-risk (‘VaR‘) is a statistical risk measure used to estimate the
software and data from attack, damage or unauthorised access.
potential loss from adverse moves in the financial markets. Your
Your Bank is also proactively involved in industry cybersecurity
Bank uses VaR metrics complemented with sensitivity analysis and
efforts and working with other parties, including our third-party
stress testing in measuring and monitoring market risk. Treasury
service providers and governmental agencies, to continue to
Mid-office, under the Risk Management function, aggregates
enhance defences and improve resiliency to cybersecurity threats.
and monitors all exposures to ensure risk measures are within its
Your Bank has set-up its own independent 24x7 C-SOC (Cyber established risk appetite.
Security Operations Centre) for a state-of-art centralized and
Asset/Liability Management
consolidated cybersecurity incident prevention, security event
Asset/Liability Management involves evaluating, monitoring and
monitoring, detection and response capabilities to take into
managing interest rate risk, market risk, liquidity and funding.
account proactive monitoring and management capabilities with
Interest rate risk, which potentially can have a significant earnings
sophisticated tools for detection, quick response and backed by
impact, arises because assets and liabilities may mature or reprice
data and tools for sound analytics.
at different times, assets and liabilities may reprice at the same
Credit Risk time but by different amounts, short-term and long-term market
Your Bank defines credit risk as the risk of loss associated with a interest rates may change by different amounts, the remaining
borrower or counterparty default (failure to meet obligations in maturity of various assets or liabilities may shorten or lengthen
accordance with agreed upon terms). Credit risk exists with many as interest rates or interest rates may also have a direct or indirect
of our assets and exposures, such as, debt security holdings and effect on loan demand, collateral values, credit losses, mortgage
loans. origination volume, etc. Your Bank assesses interest rate risk
by comparing outcomes under various net interest income
Your Bank balances the risk and return by setting certain objectives,
simulations using many interest rate scenarios that differ in the
e.g., ensuring credit quality is not compromised for growth;
direction of interest rate changes, the degree of change over time,
mitigating credit risk in transactions, relationships and portfolios;
the speed of change and the projected shape of the yield curve.
using our credit risk rating and scoring systems or other approved
The objective of effective liquidity management is to ensure that
credit risk assessment or rating methodologies, policies and tools;
the Bank can meet customer loan requests, customer deposit
pricing appropriately for the credit risk taken; detecting and
maturities/withdrawals and other cash commitments efficiently
preventing inappropriate credit risk through effective systems and
under both normal operating conditions and under periods of
controls; applying consistent credit risk exposure measurements;
Bank-specific and/or market stress. To achieve this objective, the
ongoing credit risk monitoring and administration; and avoiding
Board establishes liquidity guidelines that require sufficient asset-
activities that are inconsistent with our values, code of conduct
based liquidity to cover potential funding requirements and to
or policies.
avoid over-dependence on volatile, less reliable funding markets.
Climate-related Financial Risks Your Bank has always maintained healthy Liquidity ratios; Liquidity
Climate-related financial risks refer to the potential risks that Coverage Ratio (‘LCR’), much above the regulatory minimum LCR
may arise from climate change or from efforts to mitigate climate requirement by having significant HQLA (‘High Quality Liquid
68
Assets’) as also the Net Stable Funding Ratio (‘NSFR’), which is Solution, etc., to a modern, scalable, high available and
measured as the proportion of long-term assets that are funded resilient solution.
by stable sources.
IT Infra related enhancements:
Strategic Risk • Your Bank has set up its own Data Center (‘DC’) and Disaster
Strategic risk is the risk that the enterprise or particular business Recovery (‘DR’) Center and Near DR (‘NDR’) site with state-
areas will make inappropriate strategic choices, or will be unable of-the-art technology to ensure Zero Data loss of sensitive
to successfully implement selected strategies or achieve the banking information.
expected. Your Bank is monitoring the strategic risk by tracking
the continuous validity of the assumptions made in forming the • Built resilient back-up and replication technology to have
strategic plan and their alignment with the macro-economic data backup in Primary DC as well as in DR site.
environment as also the status of your Bank’s strategy plans vis-à- • Setting-up high performance, advanced, state-of-the-art
vis achievements. Your Bank has conducted a mid-term risk review technology for Server/Storage/Network/Virtualization for
of its five-year strategic plan during the year under review and the smooth transformation to a new CBS.
Board has directed for the required directional changes.
• The security of the DC has been strengthened by deploying
Business Risk the controlling solutions, like, Database Access Monitoring
Business risk is the possibility a company will have lower than (‘DAM’), Mobile Device Management (‘MDM’).
anticipated profits or experience a loss rather than taking a profit.
Your Bank has a robust Business Risk Management Framework • In order to facilitate undisrupted support and service,
in place, which cascades the Bank’s risk appetite statement into advanced Work from Home (‘WFH’) solution has been
actionable metrics, including various financial indicators, as well implemented.
as the Bank’s competitive position in the industry, which helps the • Privileged Access Management (‘PIM’) has been
Board to monitor the same. implemented to ensure that administrators have only the
Reputational Risk necessary levels of access to execute their jobs. This enabled
Your Bank’s reputation is rooted in the perception of its secured access and better control on user management.
stakeholders, and the trust and loyalty they place in us is core
• ID Access Management (‘IDAM’) has been implemented
to our purpose as a financial services organization. Your Bank is
to provide a common platform for access and identity
fully aware of the importance of reputational risk, and has put
management information to help employees to use common
reputation as one of the anchors (along with earning, capital and
passwords for all applications which will be used under IDAM
liquidity) for finalising its risk appetite and has a Reputation Risk
solution.
Dashboard as part of Enterprise Risk Dashboard, which is reviewed
by the Board at quarterly intervals. Your Bank’s Reputational Risk • Your Bank has set-up a Network Operating Centre (‘NOC’) in
Management Framework consists of integrated parameters, its premises to manage and monitor the Branch and DC links.
which may influence various stakeholders. Your Bank has started
measuring the idiosyncratic risks related to stock price movement,
Material Changes and Commitment Affecting
as also social as well as traditional media sentiments, complaints, Financial Position of the Bank
regulatory action, etc. There were no material changes and commitments, affecting
the financial position of the Bank, which has occurred between
Information Technology at the Bank the end of the FY of the Bank, i.e., March 31, 2022, to which the
Information Technology has been a pivotal role player in the financial statements relate, and the date of this Board’s Report.
promising journey of your Bank. Few major initiatives taken during
the FY 2021-22 are mentioned below: Directors’ Responsibility Statement
Pursuant to the provisions of Section 134(3)(c) read with Section
• Application portfolio rationalization to enter banking
134(5) of the Companies Act, the Directors hereby confirm that:
enterprise landscape is underway.
i. In the preparation of the annual accounts, the applicable
• Started migrating data and functionalities from old Core
accounting standards have been followed along with proper
Banking Solution (‘CBS’) to modern high scalable and reliable
explanation relating to material departures, if any;
Core Banking Platform.
• Migration of Aadhaar number to a secured Aadhaar vault. ii. We have selected such accounting policies and applied them
consistently and made judgments and estimates that are
• Migration of Home Loan application from existing legacy
reasonable and prudent so as to give a true and fair view of
system to modern resilient architecture.
the Bank’s state of affairs as on March 31, 2022, and of its
• ISO 20022 based domain model standardization for all profit for the FY ended on that date;
Banking APIs through a scalable and resilient API Gateway.
iii. We have taken proper and sufficient care for the maintenance
• In process of introducing assisted intelligence, while of adequate accounting records in accordance with the
detecting early warning, using Artifical Intelligence (‘AI’). provisions of the Companies Act for safeguarding the assets
• Replacing a series of applications, including Card of the Bank and for preventing and detecting fraud and other
Management Systems, Treasury System, Cash Management irregularities;
69
iv. We have prepared the annual accounts on a going concern The Board also expresses its deep sense of appreciation to all the
basis; employees for displaying their strong work ethics, excellence at
work, professionalism, teamwork, commitment and initiative,
v. We have laid down internal financial controls to be followed which has led to the Bank making good progress in today’s
by the Bank and that such internal financial controls are challenging environment. Further, the Board extends its special
adequate and are operating effectively; and thanks for the unmatched efforts put in by the employees of
vi. We have devised proper systems to ensure compliance with the Bank, during these testing times caused due to the ongoing
COVID-19 pandemic, to provide uninterrupted services to the
the provisions of all applicable laws and that such systems
customers and is deeply grateful and has immense respect for
are adequate and operating effectively.
everyone who risked their life and safety to fight this pandemic,
Acknowledgements and Appreciations and deeply regrets the loss of life. Your Board will continue to
The Board of Directors of your Bank extends its gratitude for strive for improvements as your Bank continues on its unique
the invaluable support and guidance received from the Reserve journey towards financial inclusion.
Bank of India, other government and regulatory authorities, and For and on behalf of the Board of Directors
financial institutions. The Board also thanks the correspondent Bandhan Bank Limited
banks for their cooperation and help. The Board acknowledges
the support of its shareholders, and also places on record its Anup Kumar Sinha
sincere thanks to its valued clients and customers for their Place: Kolkata Non-Executive (Independent) Chairman
patronage. Date: July 13, 2022 (DIN: 08249893)
70
Annex - 1
Annual Report on Corporate Social Responsibility (‘CSR’) activities
for the financial year ended March 31, 2022
1. A Brief Outline on CSR Policy:

Approach – Bandhan Bank limited (the ‘Bank’) is aware of its Corporate, Social and Environmental responsibilities and recognises
that a good Corporate Social Responsibility (‘CSR’) policy leads to a better trusteeship of all stakeholders. The CSR of the Bank is not
just philanthropy, but it is a strong commitment to contribute to social and environmental growth and prosperity and is pivotal to
its business sustainability.
Purpose – The purpose of the Bank’s CSR philosophy is to develop the community in which the Bank operates and make a sustainable
improvement in the lives of economically, physically and socially challenged people living at the lower end of the society and initiate
or support programmes that are aimed at creating conditions for better livelihoods in these communities. The Bank shall also
support measures that are aimed at preserving and enhancing the environment and natural resources. The CSR policy shall act as a
mechanism for regulating the CSR activities of the Bank and adhere to laws and regulations in force and adopt best practices.
Vision – Aligned with the vision of the Bank, the CSR initiatives of the Bank shall continue to enhance value creation, improve
the quality of life and inclusion of those who are not adequately and effectively serviced by the formal financial sector into the
mainstream of the society and draw them into the cycle of growth by providing products and services and forming partnerships and
alliances for the fulfilment of its role in the society as a responsible corporate.
CSR Programmes – The focus area of the CSR programmes of the Bank shall be the local areas served by the Bank and based on
the prioritised needs of the local communities. The Bank may undertake any or all of the activities in the subject or the areas as
mentioned in the Schedule VII of the Companies Act, 2013 (the ‘Act’), including the following:
a. Healthcare: Preventive Health, Nutrition and Food Security, Sanitation and Safe Drinking Water
b. Education: Financial and Digital Literacy, Skill Development and Sustainable Livelihoods for underprivileged children, women,
youths and persons with disabilities
c. Reducing Inequalities and promoting gender equality: Women empowerment, empowering persons with disabilities and
such measures that reduce inequalities faced by socially and economically backward groups
d. Environment protection: Natural Resource Management and conservation, and Climate Change mitigation and adaptations
e. Rural area and Slum Area Development: Improving infrastructure and living conditions, and sustainable agriculture.
f. Disaster Management and relief operations
2. Composition of CSR Committee:

Sl. Name of Director Designation / Nature of Directorship Number of Number of
No. meetings of CSR meetings of
Committee held CSR Committee
during the year attended during
the year
1 Mr. Subrata Dutta Gupta Chairperson, Independent Director 2 2
2 Mr. Chandra Shekhar Ghosh Member, Managing Director & CEO 2 2
3 Mr. Ranodeb Roy* Member, Non-Executive Non-Independent Director 2 2
4 Mr. Vijay N Bhatt Member, Independent Director 2 2
*Mr. Ranodeb Roy ceased to be a member of the Committee effective May 11, 2022.
3. Web-link where the Composition of the CSR Committee, CSR Policy and CSR projects approved by the
Board are disclosed on the website of the Bank:
SN Details of CSR Web-link
1 Composition of CSR Committee https://www.bandhanbank.com/corporate-governance
2 CSR Policy https://www.bandhanbank.com/pdfViewerJS/index.html#../sites/default/files/2021-07/
CSR-Policy-2021_1.pdf
3 CSR Projects https://www.bandhanbank.com/beyond-banking
71
4. Details of the 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):
The executive summary of the CSR programmes Impact Assessment is provided in the Board’s Report. The detailed Impact
Assessment Report is available at the Bank’s website https://wwwbandhanbank.com/beyond-banking.
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 the amount required for set off for the financial
year, if any:
Sl. Financial Year Amount available for Amount required to be
No. set-off from preceding set off for the financial
financial years (in `) year, if any (in `)
1 2018-19 2,17,00,000 0
2 2019-20 3,84,00,000 0
3 2020-21 0 0
Total 6,01,00,000 0
6. Average net profit of the Bank as per Section 135(5):

Sl. Financial Year Net Profit Before
No. Tax u/s 198 (in `)
1 2018-19 30,13,05,39,107
2 2019-20 40,53,41,87,208
3 2020-21 29,48,65,48,204
Average 33,38,37,58,173
7. Total CSR obligation for the financial year

Sl. Heads Amount (`)
No.
(a) Two per cent of the average net profit of the Bank as per Section 135(5) 66,76,75,163
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial 0
years
(c) Amount required to be set off for the financial year, if any 0
(d) Total CSR obligation for the financial year (7a+7b-7c). 66,76,75,163
8. Details of CSR spending during the financial year:

a. CSR amount spent or unspent for the financial year:
Amount Unspent (in `)
Total Amount Total Amount transferred to Amount transferred to any fund specified under
Spent for the Unspent CSR Account as per Schedule VII as per the second proviso
Financial Year Section 135(6) to Section 135(5)
(in `) Amount Date of transfer Name of the Amount Date of transfer
Fund
66,56,83,550 19,91,613 April 30, 2022 NA Nil NA
Total 66,56,83,550 19,91,613 Nil

72
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 of the project Project Amount Amount Amount Mode of Mode of Implementation -
No. the Project the list of area duration allocated for spent in transferred to Imple- Through Implementing Agency
activities in (Yes/ State Districts the project the current Unspent CSR mentation Name CSR
Schedule No) for current Financial Account for the - Direct Registration
CORPORATE OVERVIEW
VII to the financial year Year project as per (Yes/ No) Number
Act (in `) (in `) Section 135 (6)
(in `)
1 Targeting (i); (ii) & Yes 1. Assam (i) Goalpara 3 Years 24,67,00,851 24,67,00,851 0 No Bandhan CSR00001463
The Hard (iii) (ii) Kamrup Konnagar
Core Poor (iii) Golaghat
Programme (iv) Sivsagar
(v) Dibrugarh
STATUTORY REPORTS
(vi) Jorhat
2. Jharkhand (i) Ranchi
3. Odisha (i) Bhadrak
(ii) Balasore
4. Tripura (i) North Tripura
(ii) Unakoti
73
5. West (i) Birbhum
Bengal (ii) Dakshin Dinajpur
(iii) North 24 Parganas
(iv) Purba Medinipur

(v) Purulia
(vi) Uttar Dinajpur
2 Bandhan (ii) Yes 1. Assam (i) Barpeta 4 Years 12,70,29,268 12,70,29,268 0 No Bandhan CSR00001463
Education (ii) Cachar Konnagar
Programme (iii) Darang
(iv) Morigaon
(v) Nagaon
(vi) Udalguri
(vii) Hailakandi
1 2 3 4 5 6 7 8 9 10 11
(in `)
2. Bihar (i) Begusarai
(ii) Bhojpur
(iii) Jehanabad
(iv) Jamui
(v) Katihar
(vi) Kishanganj
(vii) Lakhisarai
(viii) Nawada
(ix) Patna
(x) Sheikhpura
3. Jharkhand (i) Bokaro
(ii) Pakur
74
(iii) Ramgarh
(iv) Ranchi
(v) Sahibganj
4. Tripura (i) Sipahijala
(ii) West Tripura
(iii) Khowai
(iv) Gomati
5. West (i) Alipurduar
Bengal (ii) Birbhum
(iii) Cooch Behar
(iv) Darjeeling
(v) Howrah
(vi) Malda
(vii) Murshidabad
(viii) Nadia
(ix) North 24 Parganas
(x) Purba Bardhaman
(xi) South 24 Parganas
(xii) Uttar Dinajpur
1 2 3 4 5 6 7 8 9 10 11
Schedule No) for current FinancialAccount for the - Direct Registration
CORPORATE OVERVIEW

(in `)
3 Bandhan (i) Yes 1. Assam (i) Bangaigaon 3 Years 13,87,90,646 13,87,90,646 0 No Bandhan CSR00001463
Health (ii) Dhubri Konnagar
Programme (iii) Kokrajhar
(iv) Nalbari
2. Bihar (i) Begusarai
(ii) Bhagalpur
STATUTORY REPORTS
(iii) Katihar
(iv) Patna
(v) Samastipur
(vi) Vaishali
3. Jharkhand (i) Deoghar
(ii) East Singhbhum
75
(iii) Pakur
(iv) Ramgarh
4. Odisha (i) Balasore
(ii) Bhadrak
5. West (i) Alipurduar
Bengal (ii) Bankura
(iii) Birbhum
(iv) Cooch Behar
(v) Howrah
(vi) Jalpaiguri
(vii) Malda
(viii) Murshidabad
(ix) Nadia
(x) North 24 Parganas
(xi) Purba Medinipur
(xii) Purulia
(xiii) South 24 Parganas
1 2 3 4 5 6 7 8 9 10 11
(in `)
4 Bandhan (ii) Yes 1. Assam (i) Sivsagar 2 Years 2,90,70,483 2,70,78,870 19,91,613 No Bandhan CSR00001463
Financial (ii) Dibrugarh Konnagar
Literacy (iii) Dhubri
Programme (iv) Kokrajhar
(v) Nalbari
(vi) Charaideo
(vii) Tinsukia
2. West (i) Birbhum
Bengal
5 Bandhan (iv) Yes 1. West 4 Years 24,03,086 24,03,086 No Bandhan CSR00001463
Climate Bengal Konnagar
Action
76
Programme
6 Bandhan (ii) Yes 1. West (i) North 24 Parganas 2 Years 11,63,834 11,63,834 No Bandhan CSR00001463
Sustainable Bengal Konnagar
Livelihood
Programme
Total 54,51,58,168 54,31,66,555 19,91,613
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 Project Item from the Local area Location of the project Amount spent Mode of Mode of implementation -
No. list of activities (Yes/ No) for the project implementation - Through implementing agency
in Schedule VII State District (in `) Direct (Yes/No) Name CSR registration
to the Act number
CORPORATE OVERVIEW
1 Employing the Unemployed (ii) Yes 1. Assam (i) Kamrup 4,58,83,907 No Bandhan CSR00001463
Programme 2. Bihar (i) Patna Konnagar
3. Madhya (i) Indore
Pradesh
4. Odisha (i) Khordha
5. West (i) Bardhaman
Bengal (ii) Darjeeling
STATUTORY REPORTS
(iii) Hooghly
(iv) Malda
(v) Murshidabad
(vi) Nadia
(vii) North 24 Parganas
(viii) South 24 Parganas
77
2 Emergency Assistance to (i) & (xii) Yes All India Multiple Districts 7,20,63,297 No Bandhan CSR00001463
Support COVID-19 Response Konnagar
Total 11,79,47,204
d. Amount spent on Administrative Overheads: NIL

e. Amount spent on Impact Assessment, if applicable: ₹45,69,790
f. Total amount spent for the Financial Year (8b+8c+8d+8e): ₹66,56,83,550
g. Excess amount for set-off, if any:
Sl. Particular Amount (in `)
No.
(i) Two percent of the average net profit of the Bank as per section 135(5) 66,76,75,163
(ii) Total amount spent for the Financial Year 66,56,83,550
(iii) Excess amount spent for the financial year [(ii)-(i)] 0
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any 0
(v) The amount available for set off in succeeding financial years [(iii)-(iv)] 0
9. Details of Unspent CSR amount for the preceding financial years:
a. Details of Unspent CSR amount for the preceding three financial years:
Sl. Preceding Financial Amount transferred to Amount spent in the reporting Amount transferred to any fund specified under Schedule Amount remaining to
No. Year Unspent CSR Account under Financial Year (in `) VII as per Section 135(6), if any be spent in succeeding
Section 135 (6) (in `) Name of the Fund Amount (in `) Date of transfer financial years (in `)
1. 2018-19 - - - - - -
2. 2019-20 6,07,30,000* 5,21,11,061 - - - 86,18,939
3. 2020-21 10,27,62,598 10,27,62,598 - - - -
Total 16,34,92,598 15,48,73,659 - - 86,18,939

*The unspent CSR amount as of March 31, 2020, pertains to the ongoing projects of the preceding financial years of the erstwhile GRUH Finance Limited before the amalgamation with the Bank during FY
2019-20. The said amount was transferred to an Unspent CSR Account on April 30, 2020 and was utilised as per the details provided below.
b. Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
1 2 3 4 5 6 7 8 9
Sl. Project ID Name of the Project Financial Project Total Amount spent on Cumulative Status of
No. Year in duration amount the project in the amount spent the project -
which the allocated for reporting Financial at the end of Completed /
project was the project Year (in `) reporting Financial Ongoing
commenced (in `) Year (in `)
78
1 2018-19/SCT/3 Educating Out of School children of Sarkhej 2018-19 4 Years 26,02,000 7,43,285 25,69,940 Completed
&Vejalpur areas of Ahmedabad, Gujarat
2 2019-20/SCT/4 Samerth Taleem Kendra, Ahmedabad, Gujarat 2019-20 2 Years 13,34,300 2,23,158 13,34,300 Completed
3 2019-20/SCT/5 Development of Water Harvesting Structures at 2019-20 2 Years 24,91,000 4,23,499 23,65,505 Completed
Rapar Block, Kutch District, Gujarat
4 2017-18/YU/1 Transforming Sanitation of five schools of Pune, 2017-18 4 Years 30,88,000 - 29,00,000 Completed
Maharashtra
5 2018-19/YU/2 School Sanitation and Smart Classroom, Karnataka 2018-19 3 Years 50,00,000 - 50,00,000 Completed
6 2018-19/YU/3 School Sanitation and Smart Classroom, Rajasthan 2018-19 3 Years 50,00,000 - 50,00,000 Completed
7 2019-20/ACF/3 Employability through Skill Initiative Project (ESIP), 2019-20 3 Years 46,37,260 9,60,679 44,94,340 Completed
Chandrapur, Maharashtra
8 2019-20/ACF/4 Employability through Skill Initiative Project (ESIP), 2019-20 3 Years 40,59,660 - 40,59,660 Completed
Bhatapara, Chhattisgarh
9 2019-20/ACF/5 Employability through Skill Initiative Project (ESIP), 2019-20 3 Years 47,20,440 - 47,20,440 Completed
Chhindwara, Madhya Pradesh
10 2019-20/BPA/1 Maintenance & Expansion of Eye Hospital at 2019-20 4 Years 67,50,000 22,50,000 67,50,000 Completed
Bareja run by BPA, Gujarat
1 2 3 4 5 6 7 8 9
Sl. Project ID Name of the Project Financial Project Total Amount spent on Cumulative Status of
No. Year in duration amount the project in the amount spent the project -
which the allocated for reporting Financial at the end of Completed /
project was the project Year (in `) reporting Financial Ongoing
commenced (in `) Year (in `)
CORPORATE OVERVIEW
11 2019-20/BPA/2 Day care Centre with disability, Mandor, Jodhpur, 2019-20 3 Years 19,79,000 3,08,343 19,79,000 Completed
Rajasthan
12 2018-19/GVK/2 MMU in villages of Indore district – Madhya 2018-19 4 Years 1,32,40,500 11,57,625 1,32,40,500 Completed
Pradesh
13 2017-18/HI/1 MMU at Jaipur for three years starting from 2017-18 4 Years 68,21,000 - 68,21,000 Completed
December, 2017, Rajasthan
14 2019-20/HI/2 MMU at Ahmedabad for three years starting from 2019-20 4 Years 90,40,000 29,58,708 76,93,971 Ongoing
STATUTORY REPORTS
April, 2019, Gujarat

15 2019-20/ESO/1 Gyan Shala Middle School Programme for Slum 2019-20 4 Years 1,35,00,000 21,43,140 1,06,11,569 Ongoing
Children of Ahmedabad, Gujarat
16 2019-20/NAB/2 “Sammilit Pathshala”, Bavla for 2019-20, Gujarat 2019-20 2 Years 15,31,200 - 15,31,200 Completed
79
17 2019-20/SII/2 Education & Rehabilitation of deaf & blind 2019-20 4 Years 78,92,343 36,07,916 73,66,973 Ongoing
children in Ujjain
18 2018-19/VCD/2 Establishing Bio-shield at Tankari Village, 2018-19 4 Years 34,23,000 10,45,005 33,78,659 Completed
Jambusar, Bharuch, Gujarat

19 2019-20/SF/2 Skill Training to 100 women at Hosur in Tamil 2019-20 2 Years 14,25,500 - 14,25,500 Completed
Nadu
20 2019-20/NBMT/1 “UttamAngreji” Education Programme 2019-20 3 Years 43,32,000 - 9,37,000 Completed
21 2019-20/JV/1 ‘Driverben’ Driving Skill Training to women, 2019-20 2 Years 17,20,000 - 16,97,135 Completed
Ahmedabad, Gujarat
22 2020-21/BK/1 Targeting the Hard-Core Poor Programme 2020-21 3 Years 21,41,00,000 3,20,97,642 21,41,00,000 Completed
23 2020-21/BK/1 Bandhan Education Programme 2020-21 4 Years 18,10,00,000 4,02,03,677 18,10,00,000 Completed
24 2020-21/BK/1 Bandhan Health Programme 2020-21 3 Years 17,31,00,000 2,94,15,709 17,31,00,000 Completed
25 2020-21/BK/1 Employing the Unemployed Programme 2020-21 2 Years 4,00,00,000 10,45,570 4,00,00,000 Completed
Total 71,27,87,203 11,85,83,956 70,40,76,692
10. In case of creation or acquisition of a capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year:
No capital assets were created or acquired on the balance sheet of the Bank through CSR spending.
11. Specify the reason(s), if the Bank has failed to spend two per cent of the average net profit as per
Section 135(5):
The Board approved an amount of ₹66,76,75,163 towards the CSR expenditure, as prescribed under the provision of Sections 135(5)
and (6) of the Companies Act, 2013 for the FY 2021-22. The amount included contribution towards the “Ongoing Projects” that are
beyond a period of one year. Accordingly, an amount of ₹19,91,613 has been transferred to the ‘Bandhan Bank Limited Unspent
Corporate Social Responsibility Account FY 2021-22’ for its utilisation towards ‘ongoing projects’ as per the provisions of Sections
135(5) and (6) of the Companies Act, 2013.
Chandra Shekhar Ghosh Subrata Dutta Gupta

Managing Director & Chief Executive Officer Chairman
(DIN: 00342477) Corporate Social Responsibility Committee
(DIN: 08767943)
Anup Kumar Sinha

Place: Kolkata Non-Executive (Independent) Chairman
Date : June 15, 2022 (DIN: 08249893)
80
Annex - 2(a)
Details of Employees as per Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 for the financial year 2021-22
Sr. Name of the Employee Designation Remuneration Nature of Qualifications and experience Date of joining the Bank Age Last employment
No. received during employment, (in before joining the
FY 2021-22 whether contractual years) Bank
(Amt. in ` ) or otherwise
A. Employees in service for the whole year (top ten employees in terms of remuneration drawn and employees drawing emoluments more than `1,02,00,000 per annum)
CORPORATE OVERVIEW
1 Chandra Shekhar Managing Director & CEO 4,35,87,172 Regular M.Sc. in Statistics with more than 33 years of From the incorporation 61 Bandhan Financial
Ghosh experience of the Bank Services Limited
2 Arvind Singla Head-Operations & 1,66,92,840 Regular MBA with more than 27 years of experience in February 01, 2021 50 Citi Bank
Technology banking Industry and IT Sector
3 Sanjeev Naryani Head-Business 1,55,82,008 Regular MCA with 35 years of experience July 18, 2019 58 State Bank of India
4 Sunil Samdani Chief Financial Officer 1,50,57,834 Regular CA with 24 years of experience March 14, 2015 46 Karvy Financial
Services Limited
5 Santanu Banerjee Head-Human Resources 1,31,59,268 Regular MBA with 26 years of experience September 03, 2014 52 Axis Bank Limited
6 Siddhartha Sanyal Chief Economist and Head 1,13,97,008 Regular M.A in Economics with 22 years of experience July 19, 2019 47 Barclays Bank PLC.
STATUTORY REPORTS
Research
7 Suresh Srinivasan Head-Housing Finance 1,07,48,893 Regular MBA with 24 years of experience October 17, 2019 46 Erstwhile GRUH
Iyer Finance Limited
8 Ronti Kar Chief Information Officer 1,05,75,004 Regular Master in Computer Science & Engineering with December 01, 2009 53 Cognizant Technology
28 years of experience Solutions
9 Biswajit Das Chief Risk Officer 1,04,68,841 Regular MBA with 30 years of experience January 27, 2016 53 ICICI Bank Limited
10 Nand Kumar Singh Head - Banking Operations 1,02,39,472 Regular BA, PGDBM, CAIIB, 26 Years of Experience November 03, 2014 52 Axis Bank Limited
81
& Customer Services
B. Employees in service for part of the year (drawing emoluments more than `8,50,000 per month)
1 Kamal Batra Head-Assets 1,16,23,342 Regular B. Tech, PGDM with more than 25 years of July 14, 2021 50 IndusInd Bank
experience in the field of Banking and Finance Limited

2 Kumar Ashish* Head-Emerging 1,14,13,708 Regular MBA with more than 27 years of experience in September 01, 2020 50 Airtel Money
Entrepreneurs Business the field of Banking and Finance
3 Rahul Dhanesh Chief Marketing & Digital 1,02,44,173 Regular Engineering & MMS with more than 21 years of September 24, 2020 45 Bajaj Capital
Parikh* Officer experience in Financial Industry Limited
4 Deepankar Bose* Head-Corporate Centre 88,44,491 Regular M.A in Economics with 39 years of experience March 22, 2018 62 State Bank of India
in banking industry
* relieved from the services of the Bank during the FY 2021-22.
Notes:
1. Remuneration shown above includes basic salary, allowances, performance bonus, leave encashment, cash allowances in lieu of perquisites and taxable value of perquisites including perquisites
on exercise of ESOPs, if availed, as computed as per Income-tax rules but excludes gratuity, PF settlement, superannuation settlement, and superannuation perquisite.
2. All appointments are terminable by one / three months’ notice as the case may be on either side.
3. None of the employees listed above hold 2 per cent. or more of the paid-up share capital of the Bank as at March 31, 2022.
4. None of the employees listed above is a relative of any Director of the Bank.
For and on behalf of the Board of Directors
Place: Kolkata Bandhan Bank Limited
Date: June 15, 2022
Anup Kumar Sinha
Non-Executive (Independent) Chairman
(DIN: 08249893)
Annex - 2(b)
Disclosure on remuneration as per Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 for FY 2021-22
1. Ratio of remuneration of each Director to the median employees’ remuneration for the financial year 2021-22
Name Designation Ratio
Dr. Anup Kumar Sinha Non-Executive (Independent) Chairman 11:1
Mr. Chandra Shekhar Ghosh Managing Director & CEO 136:1
Note:
a) Fixed pay has been considered for the computation of ratio. Fixed pay includes basic, allowances and employer contribution of
Provident Fund.
b) In case of Non-Executive Chairman, fixed remuneration of ₹24 lakh per annum as approved by RBI and sitting fees paid for
attending Board and Independent Directors’ meetings during FY 2021-22 has been considered.
c) For the calculation of median, all employees of the Bank excluding advisors have been considered.
d) Other than Non-Executive Chairman, the Non-Executive Directors including Independent Directors were paid sitting fees for
attending Board and Committee meetings during FY 2021-22.
2. Percentage increase in remuneration of each Director, CFO, CEO, CS or Manager, if any, in the financial year 2021-22
Designation Percentage Increase
Chairman Nil
Managing Director & CEO 9.36
CFO 21
CS 30
Non-executive/Independent Directors:
Neither there has been any change in the fixed remuneration of the Chairman nor there has been any change in the siting fees for
Non-Executive Directors for attending the Board and Committee meetings during FY 2021-22.
3. Percentage increase in the median remuneration of employees in the financial year 2021-22
Percentage increase in the median remuneration of employees in the financial year 2021-22 was 15 per cent.
4. The number of permanent employees on the rolls of the Bank
As on March 31, 2022, the number of permanent employees on the rolls of the Bank was 60,211.
5. Average percentage increase already made in the salaries of employees other than the managerial personnel in the
last financial year and its comparison with the percentage increase in the managerial remuneration and justification
thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration.
The average percentage increase for Managerial Personnel was 15.00 per cent. Average percentage increase in Managerial
Remuneration is higher from the previous FY, due to consideration of promotion increment during FY 2021-22.
The average percentage increase for Non-Managerial Staff was 9.00 per cent.
6. Affirmation that the remuneration is as per the remuneration policy of the Bank: Yes

Bandhan Bank Limited
Anup Kumar Sinha

Date: June 15, 2022 (DIN: 08249893)
82
Annex - 3
Secretarial Audit Report
For the financial year ended March 31, 2022
[Pursuant to Section 204 of the Companies Act, 2013 read with Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A(1) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended]
To (iv) Foreign Exchange Management Act, 1999 and

The Members the rules and regulations made thereunder to
Bandhan Bank Limited the extent of Foreign Direct Investment, Overseas
DN-32, Sector V, Salt Lake Direct Investment and External Commercial
Kolkata -700091 Borrowings;
1. We have conducted the Secretarial Audit of the compliance (v) The Regulations and Guidelines prescribed under
of applicable statutory provisions and the adherence to the Securities and Exchange Board of India Act,
good corporate practices by Bandhan Bank Limited having 1992 (‘SEBI Act’) viz.: -
CIN: L67190WB2014PLC204622 (hereinafter referred as
a) The Securities and Exchange Board of India
“the Bank”) during the financial year ended March 31,
(Substantial Acquisition of Shares and
2022 (hereinafter referred as “review period”). Secretarial
Takeovers) Regulations, 2011, as amended;
Audit was conducted on test check basis, in a manner that
provided us a reasonable basis for evaluating the corporate b) The Securities and Exchange Board of India
conducts/statutory compliances and expressing our opinion (Prohibition of Insider Trading) Regulations,
thereon: 2015, as amended;
2. On the basis of aforesaid verification of the secretarial c) The Securities and Exchange Board of
compliance and on the basis of secretarial audit of the India (Issue of Capital and Disclosure
Bank’s books, papers, minute books, forms and returns Requirements) Regulations, 2018, as
filed, and other records maintained by the Bank, as amended;
provided to us during the said audit and also based on
the information provided by the Bank, its officers, agents, d) The Securities and Exchange Board of
and authorized representatives during the conduct of the India (Listing Obligations and Disclosure
aforesaid secretarial audit, we hereby report that in our Requirements) Regulation, 2015, as
opinion and to the best of our understanding, the Bank amended;
has, during the audit period covering the financial year e) The Securities and Exchange Board of India
ended on March 31, 2022, complied with the statutory (Share Based Employee Benefits and Sweat
provisions listed hereunder and also the Bank has Equity) Regulations, 2021;
adequate Board processes and compliance mechanism
in place to the extent, in the manner and subject to the f) The Securities and Exchange Board of
reporting made hereinafter. India (Issue and Listing of Debt Securities)
Regulations, 2008;
3. We further report that compliance with applicable laws is
the responsibility of the Bank and our report constitutes an g) The Securities and Exchange Board of
independent opinion. Our report is neither an assurance for India (Issue and Listing of Non-Convertible
future viability of the Bank nor a confirmation of efficient Securities) Regulations, 2021;
management by the Bank. h) The Securities and Exchange Board of India
4. (I) We have examined the secretarial compliance on test (Bankers to an Issue) Regulations, 1994
check basis of the books, papers, minutes books, forms i) The Securities and Exchange Board
and returns filed and other records maintained by the of India (Registrars to an Issue and
Bank for the review period, according to the provisions Share Transfer Agents) Regulations,
of the following laws, rules and regulations, to the 1993 regarding the Companies Act and
extent applicable on the Bank during the review period: dealing with clients;
(i) The Companies Act, 2013 (‘the Act’) and the
j) The Securities and Exchange Board of India
rules made thereunder;
(Delisting of Equity Shares) Regulations,
(ii) The Securities Contracts (Regulation) Act, 1956 2009; -Not Applicable for review period
(‘SCRA’) and the rules made thereunder;
k) The Securities and Exchange Board of India
(iii) The Depositories Act, 1996 and the Regulations (Buy Back of Securities) Regulations, 2018.-
and Bye-laws framed thereunder; Not Applicable for review period
83
(II) We have also examined the compliance on test check Obligations and Disclosure Requirements) Regulations, 2015
basis of the books, papers, minute books, forms, to the extent applicable during the review period and to the
and returns filed and other records maintained by best of our understanding, we are of the view that the Bank
the Bank for the review period, according to the has adequately complied with the secretarial functions and
provisions of the following Acts and Rules mentioned board processes to comply with the applicable provision
hereunder specifically applicable to the Bank and as thereof, during the afore said review period:
per information and representation provided by the
8. We further report that,
officers of the Bank;
a) The Board of Directors of the Bank is duly constituted
a) Reserve Bank of India Act, 1934;
with proper balance of Executive Director, Non-
b) The Banking Regulation Act, 1949 and Executive Directors, and Independent Directors
notifications and circulars issued by the Reserve including Woman Director. The changes in the
Bank of India from time to time; composition of the Board of Directors that took
place during the review period were carried out in
c) The Securitisation and Reconstruction of Financial
compliance with the applicable provisions of the Act.
Assets and Enforcement of Security Interest Act,
2002; b) Adequate notice is given to all directors to schedule the
Board Meetings. Agenda and detailed notes on agenda
d) The Bankers’ Books Evidence Act, 1891;
were sent at least seven days in advance and a system
e) Recovery of Debts Due to Banks and Financial exists for seeking and obtaining further information and
Institutions Act, 1993; clarifications on the agenda items before the meeting
and for meaningful participation at the meeting.
f) Credit Information Companies (Regulation) Act,
2005; c) Majority decision is carried through and recorded as
part of the minutes.
g) Prevention of Money Laundering Act, 2002;
9. We further report that, there are adequate systems and
h) The Deposit Insurance & Credit Guarantee
processes in the Bank commensurate with the size and
Corporation Act, 1961;
operations of the Bank to monitor and ensure compliance
i) The Deposit Insurance & Credit Guarantee with applicable laws, rules, regulations and guidelines, such
Corporation General Regulations, 1961; as laws related to taxation, local laws applicable to the area
of operation of business and other laws generally applicable
j) Industrial Disputes (Banking and Insurance
to the Bank.
Companies) Act, 1949; and
10. We further report that during the review period:
k) Information Technology Act, 2000
a) the listed Non-Convertible Debentures (hereinafter
5. We have also examined compliance with the applicable
referred as ‘NCDs’) aggregating to ₹160 Crore, which
clauses of the following:
were issued and allotted on September 02, 2014,
a. Secretarial Standards issued by The Institute of matured on September 02, 2021. Accordingly, the
Company Secretaries of India under Section 118 of the Bank duly paid the principal amount along with interest
Companies Act, 2013. on the said NCDs to the eligible Debentureholder
on September 02, 2021 and hence the NCDs stand
6. That on the basis of the audit as referred above, to the
redeemed.
best of our knowledge, understanding and belief, we are
of the view that during the review period the Bank has b) the Bank has allotted 1,66,666 equity shares of face
complied with the provisions of the Act, Rules, Regulations, value of ₹10/- each , pursuant to exercise of stock
Guidelines, Standards, etc. as mentioned above in Paragraph options by the eligible employees of the Bank.
4(I), Paragraph 4(II) and Paragraph 5 of this report, subject to
11. This Report is to be read with our letter of even date which
the following observation:
is annexed as Annexure A and forms an integral part of this
The Reserve Bank of India vide its order dated July 06, 2021 Report.
has imposed a penalty of ₹1 crore on the Bank, in exercise of its
For, ANJAN KUMAR ROY & CO.
powers conferred under section 47A(1)(c) read with section
Company Secretaries
46(4)(i) of the Banking Regulation Act, 1949, on account
of contravention of the directions contained in circulars on
ANJAN KUMAR ROY
‘Lending to Non-Banking Financial Companies(NBFCs)’ and
Proprietor
‘Bank Finance to NBFCs’.
FCS No. 5684
7. We have checked the standard listing agreement entered by CP. No. 4557
the Bank with National Stock Exchange of India Limited and Place : Kolkata UDIN: F005684D000480411
BSE Limited, the Stock Exchanges in India and also with the Date : June 15, 2022 Peer Review Certificate No. 869/2020
provisions of Securities and Exchange Board of India (Listing
84
Annexure A
(To the Secretarial Audit Report of Bandhan Bank Limited for the financial year ended March 31, 2022)
To
The Members
DN-32, Sector V, Salt Lake
Kolkata -700091
Our Secretarial Audit Report for the financial year ended March 31, 2022 of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Bank. Our responsibility is limited to expressing an
opinion on existence of adequate board process and compliance management system, commensurate to the size of the Bank, based
on the secretarial records as shown to us during the said audit and also based on the information furnished to us by the officers and
agents of the Bank during the said audit.
2. We have followed the audit practices and processes as were appropriate, to the best of our understanding, to obtain reasonable
assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to check as
to whether correct facts are reflected in secretarial records. We believe that the processes and practices, we followed, provide a
reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and books of accounts of the Bank.
4. Where ever required, we have obtained the management representation about the compliance of laws, rules and regulations and
happening of events etc. and we have relied on such representation, in forming our opinion.
5. The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of compliance procedures on test basis. We would not be liable for
any business decision or any consequences arising thereof, made on the basis of our report.
6. The Secretarial Audit Report is neither an assurance as to the future viability of the Bank nor of the efficacy or effectiveness or
accuracy with which the management has conducted the affairs of the Bank.

Company Secretaries
ANJAN KUMAR ROY

Proprietor
FCS No. 5684
CP. No. 4557
Place : Kolkata UDIN: F005684D000480411
Date : June 15, 2022 Peer Review Certificate No. 869/2020
85
Annex - 4
Report on Corporate Governance

[Report on Corporate Governance pursuant to the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 (the ‘SEBI LODR’) and the Companies Act, 2013 (the ‘Companies Act’), for the financial year ended March 31, 2022, forming part
of the report of the Board of Directors]
Bank’s Philosophy on Corporate Governance Board Composition

Your Bank believes in adopting and adhering to the best standards
of corporate governance. It unswervingly benchmarks itself of such Non-Executive
Non-Independent
practices. The Bank understands and respects its fiduciary role and
17% (2)
responsibilities towards its stakeholders and strives hard to meet
their expectations. The Bank’s philosophy on corporate governance
enshrines the goal of achieving the highest levels of transparency, Executive
accountability and equity in all spheres of its operations and in all 8% (1)
its engagements with its stakeholders. It acknowledges that the
best Board practices, transparent disclosures and shareholder
empowerment are necessary for creating shareholder value. The Independent
philosophy on corporate governance is an important tool for the 75% (9)
protection of interests of stakeholders and maximisation of their
long-term values.
Your Bank is in compliance with the extant corporate governance During the financial year under review, there has been no
requirements specified in Regulations 17 to 27 and clauses (b) to change in the composition of the Board of the Bank. However,
(i) of sub-regulation (2) of Regulation 46 of the SEBI LODR. subsequently, based on the recommendations of the Nomination
and Remuneration Committee of the Board (‘NRC’), Ms. Divya
Board of Directors Krishnan (DIN: 09276201) has been appointed as an Additional
Your Bank entrusts its Board of Directors (the ‘Board’) with the
Non-Executive Non-Independent Director (nominee of the NOFHC)
ultimate responsibility of the management, affairs, directions and
of the Bank, in place of Mr. Ranodeb Roy (DIN: 00328764), Non-
performance of the Bank and is vested with the requisite powers,
Executive Non-Independent Director of the Bank, effective May
authorities and duties. The Corporate Governance philosophy of
11, 2022. Accordingly, Mr. Ranodeb Roy ceased to be a Director of
your Bank establishes that the Board’s independence is essential
the Bank, effective May 11, 2022.
to bring objectivity and transparency in the management and the
dealings of the Bank. Further, based on the recommendations of the NRC, the Board has
approved the appointments of Mr. Philip Mathew (DIN: 09638394)
The composition of the Board of the Bank is governed by the
as an Additional Director (Independent), effective June 15, 2022
provisions of the Companies Act and rules made thereunder, the
and Dr. Aparajita Mitra (DIN: 09484337) as an Additional Director
Banking Regulation Act, 1949 (the ‘BR Act’) and the guidelines/
(Independent), effective July 13, 2022.
circulars issued by the Reserve Bank of India (‘RBI’) in this regard,
provisions of SEBI LODR, the Articles of Association (‘AOA’) of the The appointments of Ms. Divya Krishnan as a Non-Executive Non-
Bank, other applicable laws and the best corporate governance Independent Director (nominee of the NOFHC), and Mr. Philip
practices. Mathew and Dr. Aparajita Mitra as Independent Directors, for a
term of three consecutive years each, are subject to approval of
Composition of the Board and Tenure on the Board
Shareholders at the ensuing Annual General Meeting (‘AGM’) of
As on March 31, 2022, the Board of your Bank comprised of twelve
the Bank.
Directors, of whom nine were Independent Directors including
Non-Executive (Independent) Chairman and one Woman Further, Mr. Snehomoy Bhattacharya (DIN: 02422012),
Independent Director, two Non-executive Non-Independent Independent Director, on completion of his second term of four
Directors including one Nominee Director of Caladium Investment years as an Independent Director on July 08, 2022, ceased to be a
Pte. Ltd. (equity investor) and one Managing Director & CEO. director on the Board of the Bank, effective July 09, 2022.
86
The profiles of the Directors are available on the website of the Bank, at https://bandhanbank.com/corporate-governance.
The composition of the Board of the Bank represents various skill sets, special knowledge, practical experience, qualification,
professionalism and diversity as required under applicable laws and as required for banking business. The Board has been reviewing
its strength and composition, from time to time, to ensure that it remains aligned with the statutory provisions as well as the business
requirements of the Bank.
The average tenure of the Board Members in years as on March 31, 2022 is as follows:
Name of the Director(s) Original Date of Comleted Tenure (in years) Retirement Date / Average Tenure
Appointment as on March 31, 2022 Term Ending Date (in years)
Executive Director
Mr. Chandra Shekhar Ghosh1 July 10, 2015 6 years 9 months July 09, 2024 6 years 9 months
Non-Executive Non-Independent Directors
Mr. Ranodeb Roy July 26, 2016 5 years 8 months Retire by rotation
5 years 11 months
Dr. Holger Dirk Michaelis February 12, 2016 6 years 2 months Retire by rotation
Independent Directors
Dr. Anup Kumar Sinha2 January 07, 2019 3 years 3 months July 04, 2026
Dr. Allamraju Subramanya Ramasastri3 August 08, 2018 3 years 8 months August 07, 2026
Mr. Narayan Vasudeo Prabhutendulkar May 08, 2020 1 year 11 months May 07, 2023
Mr. Santanu Mukherjee4 January 07, 2019 3 years 3 months January 06, 2027
Mr. Snehomoy Bhattacharya July 09, 2015 6 years 9 months July 08, 2022 3 years 8 months
Mr. Subrata Dutta Gupta March 19, 2021 1 year March 18, 2024
Mr. Suhail Chander March 19, 2021 1 year March 18, 2024
Ms. T. S. Raji Gain August 06, 2015 6 years 8 months August 05, 2022
Mr. Vijay Nautamlal Bhatt May 08, 2020 1 year 11 months May 07, 2023
1
Re-appointed as MD & CEO for a period of three years effective July 10, 2021
2
Re-appointed as an Independent Director and as Non-Executive Chairman effective January 07, 2022 upto July 04, 2026, however the RBI
approved tenure as Non-Executive Chairman is for a period of three years effective January 07, 2022
3
Re-appointed as an Independent Director for a period of five years effective August 08, 2021
4
Re-appointed as an Independent Director for a period of five years effective January 07, 2022.
Separation of office of Chairman and the MD & CEO Accordingly, the Board deliberates on matters, such as, business
In terms of the provisions of the BR Act, your Bank has separate strategy, risk, financial results, succession planning, compliance,
offices for the Chairman and the Managing Director & CEO. customer service, information technology and human resources
Your Bank has a Non-Executive (Independent) Chairman and a as covered under the seven critical themes prescribed by RBI and
Managing Director & CEO, the appointment of both approved such other matters as may be deemed appropriate. The Board
by RBI pursuant to the provisions of the BR Act. The Chairman spends considerable time perusing the information provided to
provides overall direction and guidance to the Board whereas the them, which facilitates informed decision-making and effective
Managing Director & CEO of the Bank is responsible for the overall participation at its meetings, leading to higher board effectiveness.
The Board oversees the actions and results of the management
management of the Bank.
to ensure that the long-term objectives of enhancing the
The operational and functional heads assist the Managing Director shareholders’ value is achieved. The Board has the discretion to
& CEO in the operation, execution and functioning of the Bank. engage the services of external expert(s)/advisor(s), as may be
deemed appropriate, from time to time.
Responsibilities of the Board
The responsibilities of the Board, inter alia, include overseeing The Members of the Board have complete freedom to express their
the functioning of the Bank, monitoring legal, statutory opinion and arrive at the decisions after detailed deliberations.
compliance, reviewing the efficacy of internal control systems
Board Meetings and Agenda
and processes and management of risk associated with the The Board plays an important role in ensuring sound Corporate
business of the Bank, based on the information provided to Governance practices, providing strategic direction and functioning
it. The Board is also responsible for approving the strategic of the Bank. Notice and agenda papers are circulated to the Directors,
direction, plans and priorities for the Bank, monitoring corporate in advance, before each meeting of the Board and Committees for
performance against strategic business plans, reviewing and facilitating meaningful and focused discussions at the meetings. All
approving the Bank’s financial and operating results periodically, information, as applicable and specified in Regulation 17(7) read with
overseeing the Bank’s corporate governance framework and Part A of Schedule II to the SEBI LODR are regularly placed before the
supervising the succession planning process for its Directors and Board. The Board also periodically reviews the compliance reports
Senior Management. with regard to the laws applicable to the Bank. In case of exigency(ies)
87
or urgency(ies) of matters, proposals are approved through circulation The Board met fourteen times during FY 2021-22. The details of
which is submitted in the next meeting of the Board for noting as the Board meetings held during the financial year ended March
required under Section 175 of the Companies Act and forms part of 31, 2022 are as under:
the minutes of such meeting.
Sl. Date Through No. of Directors
The Board meets at least once in a quarter and at least four
No. VC - Present/No. of
times a year to review and approve the quarterly/annual financial Location Directors on the Board
results and matters relating to the business operations of the
1 April 12, 2021 Kolkata 11/12
Bank. Apart from the above, Board meetings are also convened,
2 May 06, 2021 Kolkata 11/12
as and when required, by giving due notice to the Directors. The
3 May 08, 2021 Kolkata 11/12
emphasis of the Bank has been to have all the Directors physically
4 June 25, 2021 Kolkata 12/12
present for all the Meetings of the Board and Committees,
5 July 30, 2021 Kolkata 12/12
however, to facilitate Directors travelling / residing abroad or at
6 September 29, 2021 Kolkata 12/12
other locations to participate in the meetings, video-conferencing
7 October 26, 2021 Kolkata 11/12
facilities are also provided, in terms of the provisions of Rule 3 of
8 October 29, 2021 Kolkata 11/12
the Companies (Meetings of Board and its Powers) Rules, 2014.
Accordingly, the Bank has also conducted its Board and Committee 9 January 13, 2022 Kolkata 12/12
Meetings through video conferencing (‘VC‘) during the financial 10 January 21, 2022 Kolkata 12/12
year. The intervening period between any two consecutive Board 11 February 11, 2022 Kolkata 12/12
meetings is well within the maximum gap of 120 days as specified 12 February 19, 2022 Kolkata 12/12
in Regulation 17(2) of the SEBI LODR and Section 173(1) of the 13 February 24, 2022 Siliguri 12/12
Companies Act. 14 February 25, 2022 Siliguri 11/12
Board attendance and Directorships

The names and categories of the Directors on the Board, their attendance at Board Meetings and the last Annual General Meeting (‘AGM’)
held during the financial year under review, directorship in other public companies including names of listed entities and Chairmanship /
Membership of the Committees of such public limited companies at the end of March 31, 2022 are given hereinbelow:
Sl. Name and DIN of the Category Attendance during Number of Number of Committee
No. Directors FY 2021-22 Directorship in other positions held in other
Public Companies Public Companies
No. of Board Meetings AGM held Chairman Member* Chairman Member*
Held Attended % on August
06, 2021
1. Dr. Anup Kumar Sinha Independent 14 14 100 Yes - - - -
(Chairman)
[DIN: 08249893]
2. Mr. Chandra Shekhar Ghosh Executive 14 14 100 Yes - - - -
(Managing Director & CEO)
[DIN: 00342477]
3. Dr. A. S. Ramasastri Independent 14 14 100 Yes - 1 - -
[DIN: 06916673]
4. Dr. Holger Dirk Michaelis Nominee 14 14 100 Yes - - - -
[DIN: 07205838] Director
(Non-Executive)
5. Mr. Narayan Vasudeo Independent 14 14 100 Yes - 1 - 1
Prabhutendulkar1
[DIN: 00869913]
6. Mr. Ranodeb Roy Non-Executive 14 14 100 Yes - 1 - -
[DIN:00328764] Non-
Independent
7. Mr. Santanu Mukherjee2 Independent 14 14 100 Yes - 4 2 4
[DIN: 07716452]
8. Mr. Snehomoy Independent 14 8 57 Yes - - - -
Bhattacharya3
[DIN: 02422012]
88
Sl. Name and DIN of the Category Attendance during Number of Number of Committee
No. Directors FY 2021-22 Directorship in other positions held in other
Public Companies Public Companies
No. of Board Meetings AGM held Chairman Member* Chairman Member*
Held Attended % on August
06, 2021
9. Mr. Suhail Chander Independent 14 14 100 Yes - 1 - 1
[DIN: 06941577]
10. Mr. Subrata Dutta Gupta Independent 14 14 100 Yes - - - -
[DIN: 08767943]
11. Ms. T. S. Raji Gain Independent 14 14 100 Yes - - - -
[DIN: 07256149]
12. Mr. Vijay Nautamlal Bhatt Independent 14 14 100 Yes - 1 1 2
[DIN: 00751001]
* Membership includes chairmanship.
1. Mr. NVP Tendulkar is holding directorship in another listed entity as an Independent Director, i.e., in Centrum Capital Limited.
2. Mr. Santanu Mukherjee is holding directorship in other two listed entities as an Independent Director, i.e., in Suven Life Sciences Limited and Sumedha
Fiscal Services Limited.
3. Mr. Snehomoy Bhattacharya could not attend six Board Meetings due to health issues.
Note:
1. Other directorships do not include directorships of private limited companies, foreign companies and companies registered under Section 8 of the
Companies Act.
2. None of the Directors is a member of more than ten committees or chairperson of more than five committees across all the public companies in which
he / she is a Director.
3. For the purpose of determination of limit of the Board Committees, chairpersonship and membership of the Audit Committee of the Board and
Stakeholders’ Relationship Committee of the Board has been considered as per Regulation 26(1)(b) of the SEBI LODR. Necessary disclosures regarding
Committee positions in other public companies, as on March 31, 2022, have been made by the Directors.
None of the Directors is related to each other. Neither of the Directors on the Board holds directorships in more than ten public companies nor any of the
Independent Directors serves as an independent director in more than seven listed entities. All Directors of the Bank hold directorship in compliance with
Regulation 17A of the SEBI LODR.
Skills / Expertise / Competence of Board of Directors

Being a Banking Company, your Bank is regulated by the provisions of the BR Act, besides the SEBI LODR and the Companies Act. In terms
of Section 10A(2)(a) of the BR Act and the Bank’s ‘Policy on Appointment and Fit & Proper Criteria for Directors’, the members of the Board
of Directors shall consist of persons, who shall have special knowledge or practical experience in respect of one or more of the following
matters, namely; accountancy, agriculture and rural economy, banking, co-operation, economics, finance, law, small-scale industry,
information technology, cyber security, payment and settlement systems, human resources, risk management, business management,
marketing, fin-tech or any other matter the special knowledge of, and practical experience, which would, in the opinion of RBI, be useful
to the banking company and as may be deemed appropriate for the Bank’s business from time to time. The Board of Directors of the Bank
is guided by the above, as and when any new Directors are appointed on the Board. The brief profiles of all the members of the Board is
available on the website of the Bank at https://bandhanbank.com/corporate-governance.
The details of the core skills/expertise/competence possessed by the existing Directors of the Bank is given as under, along with their
shareholding in the Bank as at the end of March 31, 2022. None of the Directors is holding shares of the Bank as a beneficial owner for
any other persons.
Name of the Director(s) Date of Appointment (A)/ Special Knowledge/ Experience Number of
Re-appointment (R) equity shares @
Dr. Anup Kumar Sinha January 07, 2019 (A) Economics | Agriculture -
January 07, 2022 (R)
Mr. Chandra Shekhar Ghosh July 10, 2015 (A) / Financial Services (Micro Finance Sector) | Medium 16,24,436
July 10, 2018 (R) / & Small-Scale Industry | Banking | Finance | Business
July 10, 2021 (R) Management
Dr. A.S. Ramasastri August 08, 2018 (A) Information Technology | Payment & Settlement -
August 08, 2021 (R) Systems| Finance
Dr. Holger Dirk Michaelis February 12, 2016 (A) / Risk Management | Finance | Economics -
August 06, 2021 (R)
Mr. NVP Tendulkar May 08, 2020 (A) Accountancy | Finance | Information Technology | Law -
Mr. Ranodeb Roy July 26, 2016 (A) / Banking | Finance -
August 21, 2020 (R)
89
Name of the Director(s) Date of Appointment (A)/ Special Knowledge/ Experience Number of
Re-appointment (R) equity shares @
Mr. Santanu Mukherjee January 07, 2019 (A) Banking | Treasury Operations | Risk Management | -
January 07, 2022 (R) Finance
Mr. Snehomoy Bhattacharya July 09, 2015 (A) / Banking | Human Resource | Law -
July 09, 2018 (R)
Mr. Subrata Dutta Gupta March 19, 2021 (A) Mortgage finance | Housing | Economics -
Mr. Suhail Chander March 19, 2021 (A) Banking Operations including Trade Finance, Retail -
and Wholesale Banking, Strategy | Risk Management |
Finance | Accountancy
Ms. T S Raji Gain August 06, 2015 (A) / Agriculture | Rural Economy -
August 06, 2018 (R)
Mr. Vijay N Bhatt May 08, 2020 (A) Audit | Accountancy | Assurance | Finance | Law -
A stands for Appointment and R stands for Re-appointments
@
The Bank has not issued any convertible instruments.
Independent Directors
At the end of March 31, 2022, the Board consisted of the following nine Independent Directors, in accordance with the provisions of the
Companies Act, the BR Act and the SEBI LODR:
Sl. No. Name of the Directors Date of Appointment (A) /Re-appointment (R)
1. Mr. Santanu Mukherejee (Lead Independent Director) January 07, 2022 (R)
2. Dr. Anup Kumar Sinha January 07, 2022 (R)
3. Dr. Allamraju Subramanya Ramasastri August 08, 2021 (R)
4. Mr. Narayan Vasudeo Prabhutendulkar May 08, 2020 (A)
5. Mr. Snehomoy Bhattacharya July 09, 2018 (R)
6. Mr. Subrata Dutta Gupta March 19, 2021 (A)
7. Mr. Suhail Chander March 19, 2021 (A)
8. Ms. Thekedathumadam Subramani Raji Gain August 06, 2018 (R)
9. Mr. Vijay Nautamlal Bhatt May 08, 2020 (A)
Meeting of Independent Directors the SEBI LODR and that they are independent of the Management.
During the financial year under review, the Independent Directors A formal letter of appointment has been addressed to the
met twice without the presence of management, i.e., on June Independent Directors at the time of their appointment(s). The
07, 2021 for performance evaluation of the Board, Chairman and terms and conditions of appointment of Independent Directors is
Non-Independent Directors, and on December 28, 2021 to assess available on the website of the Bank at https://bandhanbank.com/
the quality, quantity and timeliness of the flow of information pdfViewerJS/index.html#../sites/default/files/2020-12/Terms-
between the management and the Board and other governance condition-appointment-Independent-Directors.pdf.
related matters. Further, in accordance with Regulation 25(4) of
Independent Director Databank Registration
the SEBI LODR and Clause VII of Schedule IV to the Companies
In terms of Rule 6(3) of the Companies (Appointment and
Act, the Independent Directors met exclusively on May 19, 2022, Qualifications of Directors) Rules, 2014, as amended, Independent
without the presence of the Managing Director & CEO, Non- Directors of the Bank have confirmed that they have registered
Executive Non-Independent Directors or management, to review themselves with the databank maintained by the Indian Institute
the performance of Non-Independent Directors and the Board as of Corporate Affairs (‘Institute‘) as well as renewed the registration
a whole for the Financial Year 2021-22. The Independent Directors wherever required. Further, the Independent Directors, who
also reviewed the performance of the Non-Executive Chairman of were required to pass an online proficiency self-assessment test
the Bank. conducted by the Institute, have appeared for and passed such
Independence of Directors test.
All Independent Directors have given necessary declarations of Familiarisation Programme
independence under Section 149(7) of the Companies Act and The ‘Policy on Appointment and Fit & Proper Criteria for Directors’
Regulation 25(8) of the SEBI LODR and have also confirmed that they sets out the familiarisation programme for Non- Executive
are not aware of any circumstance or situation which exists or may Directors (‘NEDs’) of the Bank. In order to familiarise the Bank’s
be reasonably anticipated that could impair or impact their ability NEDs, including Independent Directors, with the functioning
to discharge their duties. Based on the declarations received from of the Bank and their roles, responsibilities, etc., the newly
the Independent Directors, the Board of Directors has confirmed appointed Directors are provided with a comprehensive Induction
that they meet the criteria of independence as prescribed under Kit, including the business, operations and financials of the Bank,
Section 149(6) of the Companies Act and Regulation 16(1)(b) of history of the Bank, organisational structure, composition and
90
roles of the Board and Committees, core management team of Act. The Board is duly constituted including gender diversity. The
the Bank, rights, responsibilities and liabilities as an Independent appointment of the Chairman and/or the Managing Director on
Director, copies of the applicable policies and Codes of the Bank, the Board is made with the prior approval of RBI. The Board also
along with the Memorandum of Association (‘MOA’) & Articles takes into account the outcome of performance evaluation while
of Association (‘AOA’). The Bank also nominates the Directors considering the re-appointment/continuation of appointment of
to attend relevant external programs at reputed forums and/ or Independent Directors.
internally provide deep-dives/ presentations on subjects relevant
The NRC evaluates whether the members of the Board, excluding
from Bank’s perspective, as may be necessary from time to
NRC members, adhere to the ‘fit and proper’ criteria as prescribed
time. The details of the familiarisation programmes conducted
by RBI and the adherence to the ‘fit and proper’ criteria by the
for the Independent Directors of the Bank are available on the
members of the NRC is evaluated by the Board of Directors
website of the Bank at https://bandhanbank.com/familiarisation-
annually, in addition to evaluation of fit and proper status at the
programmes.
time of appointment / re-appointment of Directors.
Performance Evaluation Criteria for Independent Remuneration Policy
Directors The Bank has formulated and adopted a Compensation Policy
The performance evaluation of Independent Directors is for Directors, Key Managerial Personnel and Employees of the
conducted in terms of the provisions of ‘Performance Evaluation Bank, in terms of Section 178 of the Companies Act, read with
Policy for the Board, Committees, Non-independent / Whole Time the relevant Rules made thereunder, Regulation 19 of the SEBI
Directors and Independent Directors’ (the ‘Board PE Policy’) as LODR and the Guidelines or Circulars issued by RBI, in this regard,
recommended by the NRC and approved by the Board, pursuant from time to time. The Bank’s Compensation Policy is aligned to
to the relevant provisions of the Companies Act, the SEBI LODR its business strategy, market dynamics, internal characteristics and
and SEBI Guidance Note on Board Evaluation. In terms of the complexities within the Bank. The Bank‘s remuneration framework
Board PE Policy, an indicative list of factors on which evaluation of aims to attract, motivate and retain people with the requisite skill,
the Independent Directors was carried out includes participation, experience and ability to deliver the Bank‘s strategy; create an
commitment, contribution, competency, attendance, initiative, alignment and balance between the rewards and risk exposure
teamwork, communication, compliance, corporate governance, of shareholders and interests of employees; promote responsible
fulfilment of the independence criteria and their independence growth and create long term sustainable shareholder value
from the Management. Further details of the evaluation on consistent with strategic goals and appropriate risk management;
Independent Directors is provided in the Board’s Report. reinforce behaviour consistent with the Bank‘s values, principles
Policy on Appointment of Directors and objectives and support appropriate conduct and meritocratic
Your Bank has in place a ‘Policy on Appointment and Fit & Proper culture through differentiated performance rewards. The
Criteria for Directors’. This Policy lays down the criteria for Compensation Policy of the Bank is available on the website of the
identification of persons who are qualified and ‘fit and proper’ to Bank at https://bandhanbank.com/pdfViewerJS/index.html#../
become Directors on the Board, such as, academic qualifications, sites/default/files/2022-02/Compensation_Policy_2022.pdf.
special knowledge or practical experience, competence, track RBI, vide its circular no. RBI/2019-20/89 DOR.Appt.
record, integrity, etc., which shall be considered by the NRC BC.No.23/29.67.001/2019-20 dated November 04, 2019, has
while recommending appointment / re-appointment of a issued guidelines on ‘Compensation of Whole-time Directors/
Director. The Policy is available on the website of the Bank at Chief Executive Officers/Material Risk takers and Control function
https://bandhanbank.com/pdfViewerJS/index.html#../sites/ staff’ for implementation by private sector banks and foreign
default/files/2022-03/Policy-on-Appointment-and-Fit-and- banks from April 01, 2020. The Bank’s Compensation Policy is in
Proper-Criteria-for-Directors.pdf. The Policy on appointment line with this RBI circular. In terms of the Compensation Policy, the
of Director(s) is guided by the provisions of the BR Act and the total compensation shall be a prudent mix of fixed pay (including
rules framed thereunder, the Companies Act and the SEBI LODR basic salary, fixed allowances, retirals and perquisites) and
and the circulars or guidelines issued by RBI, from time to time, performance-based variable pay (comprising cash bonuses and
in this regard. While appointing a Director on its Board, your share-linked instruments, which includes employee stock options
Bank follows the direction of RBI with regard to ‘fit and proper’ and cash linked stock appreciation rights) whereas variable pay
criteria as applicable to private sector banks and obtains the shall not exceed three times the annual fixed pay for Managing
‘Declaration and Undertaking’ from the candidate and executes a Director & CEO. Annual increments for the senior management are
Deed of Covenants, which includes the requirement for Directors recommended by the NRC and approved by the Board. The annual
to discharge their duties and responsibilities to the best of their increment for the Managing Director & CEO is recommended by
abilities, individually and collectively. The NRC ascertains the the NRC and the Board for the approval of RBI and the Members.
fit and proper status of the candidate for the office of director, The Board of Directors, on the recommendation of the NRC and on
fulfilment of criteria of independence as prescribed under the the basis of the evaluation process considering the criteria, such
Companies Act and SEBI LODR in case of independent directors, as, the performance of the Bank as well as that of the Managing
and thereafter, recommends to the Board for approval. The Director & CEO, recommends to RBI for approval of the variable
Board also ensures that the Directors have the requisite skill sets, pay payable to the Managing Director & CEO for the financial year.
practical experience, special knowledge required for the banking The remuneration of the Managing Director & CEO is subject to
business and as prescribed under Section 10A(2)(a) of the BR prior approval of RBI and the approval of Members.
91
Non-Executive Directors’ Compensation and Disclosures responsibilities and demands on time and which are considered
In terms of the provisions of the Companies Act, the SEBI LODR sufficient to attract qualified competent individuals, provided
and the Compensation Policy of the Bank, the Non-Executive such fixed remuneration for a NED, other than the Chairperson
Directors (‘NED’), including Independent Directors, of the Bank of the Board, shall not exceed ₹20 lakh per annum. In addition
are paid sitting fees of ₹90,000 per meeting for attending the to sitting fees, the Non-Executive Chairman of the Bank is also
meetings of the Board, ₹75,000 per meeting for attending paid fixed remuneration with prior approval of RBI pursuant
meetings of the Audit Committee of the Board and the Risk to the provisions of the BR Act and approval of the Members
Management Committee of the Board, and `60,000 per meeting of the Bank. Details of sitting fees paid to the NEDs and the
for attending meetings of other Committees of the Board, remuneration to Non-Executive Chairman are given hereinafter.
subject to applicable taxes, and reimbursement of expenses for During the financial year under review, there was no increase
participation in such meetings. Additionally, pursuant to the RBI in the fixed remuneration of the Non-Executive Chairman of the
Circular dated April 26, 2021, the Compensation Policy of the Bank. The Compensation Policy of the Bank is available on its
Bank provides for payment of compensation in the form of a website and the link for the same has been provided above. No
fixed remuneration commensurate with an individual director’s stock options were/are granted to any of the NEDs of the Bank.
Remuneration to Directors
Details of the total remuneration paid to all the Directors of your Bank for the financial year ended March 31, 2022 are as follows:
a. Non-Executive Directors
(Amt. in `)
Sl. No. Name of the Directors Salary Sitting fees Total
1. Dr. Anup Kumar Sinha* 24,00,000 13,80,000 37,80,000
2. Dr. Allamraju Subramanya Ramasastri - 23,55,000 23,55,000
3. Dr. Holger Dirk Michaelis - 12,60,000 12,60,000
4. Mr. Narayan Vasudeo Prabhutendulkar - 21,60,000 21,60,000
5. Mr. Ranodeb Roy - 24,45,000 24,45,000
6. Mr. Santanu Mukherjee - 34,80,000 34,80,000
7. Mr. Snehomoy Bhattacharya - 14,40,000 14,40,000
8. Mr. Suhail Chander - 32,25,000 32,25,000
9. Mr. Subrata Dutta Gupta - 26,55,000 26,55,000
10. Ms. Thekedathumadam Subramani Raji Gain - 16,20,000 16,20,000
11. Mr. Vijay Nautamlal Bhatt - 24,45,000 24,45,000
*In addition to the sitting fees for attending meetings of the Board and Committees, the Non-Executive Chairman is also paid fixed (consolidated)
remuneration of ₹24 lakh per annum and traveling and official expenses for performing his duty, as approved by RBI and the Shareholders.
During the financial year under review, apart from the aforesaid, there was no pecuniary relationship or significant/material
transactions of the Non- Executive Directors vis-à-vis the Bank (except banking transactions in the ordinary course of business and
at an arm’s length basis).
b. Managing Director & CEO
(Amt. in `)
Sl. Name Salary Perquisite and Contribution to Variable Pay / Total
No. Allowances Provident Fund Bonus(es)
1. Mr. Chandra Shekhar Ghosh 3,27,75,0001 56,42,3232 23,83,548 27,86,301 4,35,87,172

Since the approval of RBI for the revision in remuneration of the MD&CEO effective August 18, 2020 received during FY 2021-22, the salary amount
1.
include arrears for previous FY.

2.
Perquisite value on exercise of 50,000 stock options exercised during FY 2021-22
a. As approved by RBI and the Shareholders at 7th AGM, Mr. Chandra Shekhar Ghosh has been re-appointed as MD & CEO, for a
period of three years, from July 10, 2021.
b. On the basis of the recommendations of the NRC and the Board, Shareholders, at the 7th AGM of the Bank, approved the revision
in total remuneration of the MD & CEO w.e.f. August 18, 2020. Further, the approval of RBI was also received for remuneration
of MD&CEO for FY 2020-21 including the fixed pay and variable pay. Furthermore, on the basis of the recommendations of the
NRC and the Board, RBI has approved the fixed pay of the MD & CEO for FY 2021-22, whereas approval of RBI for variable pay
including only non-cash component for FY 2021-22 is awaited. The proposal for remuneration of the MD &CEO for FY 2021-22
will also be placed for the approval of Shareholders at the ensuing AGM of the Bank.
c. In terms of the approval of RBI, Mr. Ghosh was granted 1,70,809 stock options during FY 2020-21 in terms of the provision
of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and ESOP Scheme of the Bank. These options
92
would vest not earlier than one year and not later All the recommendations made by the Committees of the Board,
than four years from the date of grant as decided by which are mandatorily required to be constituted by the Bank
the NRC and shall be equally vested over four years under the Companies Act, and the SEBI LODR, were accepted by
with a gap of one year between each vesting. The the Board.
said stock options were not issued at any discount.
The Board has constituted the following Committees to oversee
Mr. Ghosh has exercised 50,000 stock options during
specific areas:
FY 2021-22.
1. Audit Committee
d. The notice period applicable to him is three
2. Nomination & Remuneration Committee
months. No severance fees is required to be paid to
Mr. Ghosh. 3. Risk Management Committee
4. Information Technology (IT) Strategy Committee
e. For the overall performance assessment of the MD &
5. Customer Service Committee
CEO, a Balanced Score Card (‘BSC’) is used. The BSC
6. Corporate Social Responsibility (CSR) Committee
is a performance evaluation technique that takes into
consideration a number of financial and non-financial 7. Special Committee for Monitoring High Value Frauds
performance indicators aligned to the long-term 8. Stakeholders’ Relationship Committee
strategy of the organisation. The performance goals are 9. Committee of Directors
organised to address four perspectives, viz., financial,
Audit Committee
customer, internal process and people, the latter three
Qualified and Independent Audit Committee
being drivers of future performance. In the BSC, the
Your Bank has a qualified and independent Audit Committee of
Bank has considered financial performance measures,
the Board (‘ACB’) with the powers and roles that are in accordance
asset quality, the cost to income ratio, adherence to
with Section 177 of the Companies Act and Rules made
anchor wise risk appetite, compliance management
thereunder, Regulation 18 of the SEBI LODR, Circulars issued by RBI
and other strategic initiatives with longer horizons. As
in this regard, from time to time, which acts as a link between the
per the RBI guidelines dated November 4, 2019, the
Management, the Statutory Auditors, Internal Auditors and the
performance based variable pay is subject to in year
Board of Directors and oversees the financial reporting process,
adjustment, malus or clawback.
internal control and compliance matters of the Bank.
f. Further details regarding the compensation of the MD
The ACB provides direction to the audit function and monitors
& CEO as well as other disclosures as required to be
the quality of internal and statutory audits. Its responsibilities,
made as given in the Appendix 3 of RBI Guidelines on
inter alia, include examining the financial statements and
compensation of the WTD/CEO/Material Risk Takers
auditors’ reports and overseeing the financial reporting
and Control Function Staff dated November 04, 2019
process to ensure fairness, sufficiency and credibility of
is made available as notes to the Financial Statement
financial statements, recommending appointment, terms of
forming part of this Annual Report.
appointment, and reviewing and monitoring the internal audit
g. No sitting fee was paid to Mr. Ghosh for attending of the Bank.
meetings of the Board and Board Committees held
Meetings of the Audit Committee
during FY 2021-22.
As on March 31, 2022, the ACB comprised four Directors
Board Committees including three independent Directors and one Non-Executive
The Board has also been conducting its businesses through various Non- Independent Director, and was chaired by Mr. Vijay
Committees constituted to deal with specific matters as may be Nautamlal Bhatt, who is a Chartered Accountant. During FY
delegated by the Board and as mandated under the relevant 2021-22, the Committee met eleven times on April 12, 2021,
provisions of the Companies Act, the SEBI LODR, the BR Act, May 07, 2021, June 14 & 24, 2021, July 29, 2021, September
Guidelines and Circulars issued by RBI, in this regard, from time to 21, 2021, October 28, 2021, January 20 & 28, 2022, February
time, and the AOA of the Bank. 18, 2022 and March 29, 2022, and the gap between any
two consecutive meetings did not exceed one hundred and
The Agenda for the meetings of the Committees is finalised in
twenty days.
consultation with the respective Chairmen of the concerned
Committees. The Committees ensure that any feedback or In terms of the SEBI LODR, Mr. Indranil Banerjee, the Company
observations made by them during the course of the meetings Secretary and Compliance Officer of the Bank, acts as the
forms part of the Action Taken Report (‘ATR’) for their review Secretary to the ACB. He also acts as the Compliance Officer to
and discussion at the subsequent meetings. The Chairmen of ensure compliance and effective implementation of the Bank’s
the Committees brief the Board on the key decisions taken at Code of Conduct for Prevention of Insider Trading (‘PIT Code‘) and
its meetings. In case of business exigency(ies) or urgency(ies) submitting the reports on the matter relating to the PIT Code to
of matters, proposals are approved through circulation by the the ACB/Board at regular intervals.
Committees in the form of ‘Resolution(s) by Circulation’ which are
Further, the last AGM of the Bank was held on August 06, 2021,
subsequently submitted in the forthcoming meeting for its noting
which was attended by Mr. Vijay Nautamlal Bhatt, Chairman of the
as required under the Companies Act.
ACB.
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Composition (as on March 31, 2022) and attendance - ACB
Name of Member Category Number of Meetings during the % of Gross Amount of
FY 2021-22 (Eleven meetings) attendance Sitting fees paid
During tenure Attended (amt. in ₹)
Mr. Vijay Nautamlal Bhatt, Chairman Independent 11 11 100 8,25,000
Mr. Ranodeb Roy(1) Non-Executive 7 7 100 5,25,000
Non-Independent
Mr. Santanu Mukherjee Independent 11 11 100 8,25,000
Mr. Suhail Chander Independent 11 11 100 8,25,000
1. Appointed as Member of the ACB effective June 25, 2021
Note: Post March 31, 2022, Mr. Ranodeb Roy ceased to be a member of the ACB effective May 11, 2022, whereas Ms. Divya Krishnan,
Non-Executive Non-Independent Director was appointed as a Member of the ACB effective June 19, 2022.
ACB Composition - (as on date) 5. Reviewing, with the management, the quarterly, half-yearly
and annual financial statements before submission to the
Non-Executive Board of Director for approval;
Non-Independent
25% (1) 6. Reviewing, with the management, the statement of uses/
application of funds raised through an issue (public issue,
rights issue, preferential issue, etc.), the statement of funds
Executive utilised for purposes other than those stated in the offer
0% (0) document/ prospectus/ notice and the report submitted
by the monitoring agency monitoring the utilisation of
Independent proceeds of a public or rights issue, and making appropriate
75% (3) recommendations to the Board to take up steps in this
matter;
Terms of reference 7. Reviewing and monitoring the statutory auditor’s
Terms of reference of the ACB is given below: - independence and performance, and effectiveness of audit
1. Oversight of the Bank’s financial reporting process, examination process;
of the financial statement and the auditors’ report thereon and 8. Approval or any subsequent modifications of transactions
the disclosure of its financial information to ensure that its of the Bank with related parties (Provided that only those
financial statements are correct, sufficient and credible; members of the audit committee, who are independent
2. Recommendation for appointment, re-appointment and directors, shall approve related party transactions);
replacement, remuneration and terms of appointment of 9. Scrutiny of inter-corporate loans and investments;
auditors of the Bank;
10. Valuation of undertakings or assets of the Bank, wherever it
3. Approval of payment of statutory auditors for any other is necessary;
services rendered by the statutory auditors;
11. Evaluation of internal financial controls and risk management
4. Reviewing, with the management, the annual financial systems;
statements and auditor’s report thereon before submission
to the Board for approval, with particular reference to: 12. Monitoring the end use of funds raised through public offers
and related matters;
a. Matters required to be included in the Director’s
Responsibility Statement to be included in the Board’s 13. Reviewing with the management, the performance of
report in terms of clause (c) of sub-section 3 of Section statutory and internal auditors, and adequacy of the internal
134 of the Companies Act, as amended; control systems;
b. Changes, if any, in accounting policies and practices 14. Reviewing the adequacy of internal audit function, if any,
and reasons for the same; including the structure of the internal audit department,
c. Major accounting entries involving estimates based on staffing and seniority of the official heading the department,
the exercise of judgment by management; reporting structure coverage and frequency of internal audit;
d. Significant adjustments made in the financial 15. Discussion with the internal auditors on any significant
statements arising out of audit findings; findings and follow up thereon;
e. Compliance with listing and other legal requirements 16. Reviewing the findings of any internal investigations by the
relating to financial statements; internal auditors into matters where there is suspected fraud
f. Disclosure of any related party transactions; and or irregularity or a failure of internal control systems of a
g. Modified opinion(s) in the draft audit report. material nature and reporting the matter to the Board;
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17. Discussion with the statutory auditors before the audit and Disclosure Requirements) Regulations, 2015; and
commences, about the nature and scope of audit as well as
23. Consider and comment on the rationale, cost-benefits
post-audit discussion to ascertain any area of concern;
and impact of schemes involving merger, demerger,
18. To look into the reasons for substantial defaults in the amalgamation etc., on the Bank and its shareholders.
payment to the depositors, debenture holders, shareholders
(in case of non-payment of declared dividends) and Nomination & Remuneration Committee
creditors; Your Bank has a Nomination & Remuneration Committee of
the Board (‘NRC’) with the powers and the roles that are in
19. To review the functioning of the whistle blower mechanism; accordance with Section 178 of the Companies Act and Rules
20. Approving the appointment of the chief financial officer or made thereunder, Regulation 19 of SEBI LODR and the Circulars
any other person heading the finance function or discharging issued by RBI in this regard, from time to time, which, inter alia,
that function after assessing the qualifications, experience deals with the matters relating to appointments on the Board and
and background, etc. of the candidate; Senior Management, performance appraisal and compensation
related matters of the Bank.
21. Carrying out any other terms of reference as may be decided
by the Board or specified/ provided under the Companies The NRC evaluates fit and proper criteria of persons who are
Act 2013 or the SEBI (Listing Obligations and Disclosure qualified to become directors and who may be appointed in
Requirements) Regulations, 2015 or by any other regulatory senior management in accordance with the criteria laid down,
authority; recommend to the Board for their appointment and removal, and
specifies the manner for effective evaluation of the performance
22. Reviewing of (1) management discussion and analysis of
financial condition and results of operations; (2) the status of the Board, its Committees and individual directors. The NRC
of long-term (more than one year) or recurring Related Party formulates the criteria for determining qualifications, positive
Transactions, on an annual basis; (3) management letters/ attributes and independence of a director and recommends to
letters of internal control weaknesses issued by the statutory the Board, a policy relating to the remuneration for the directors,
auditors; (4) internal audit reports relating to internal control key managerial personnel and other employees of the Bank.
weaknesses; (5) the appointment, removal and terms of Criteria for performance evaluation for Independent Directors are
remuneration of the chief internal auditor shall be subject provided in the Board’s Report.
to review by the Audit Committee; and (6) statement of Meetings of the Nomination & Remuneration Committee
deviations including (a) quarterly statement of deviation(s) As on March 31, 2022, the NRC comprised four Directors including
including report of monitoring agency, if applicable, three Independent Directors and one Non-Executive Non-
submitted to stock exchange(s) in terms of Regulation
Independent Director, and was chaired by Mr. Suhail Chander, an
32(1) of the Securities and Exchange Board of India (Listing
Independent Director. During FY 2021-22, the NRC met five times,
Obligations and Disclosure Requirements) Regulations, 2015
i.e., on April 12, 2021, June 19, 2021, September 28, 2021, January
as amended; (b) annual statement of funds utilised for
19, 2022 and February 14, 2022.
purposes other than those stated in the offer document/
prospectus/notice in terms of Regulation 32(7) of the The last AGM of the Bank was held on August 06, 2021, which was
Securities and Exchange Board of India (Listing Obligations attended by Mr. Suhail Chander, Chairman of the NRC.
Composition (as on March 31, 2022) and attendance - NRC

Name of Member Category Number of Meetings during % of Gross Amount of
FY 2021-22 (five meetings) attendance Sitting fees paid
During tenure Attended (amt. in ₹)
Mr. Suhail Chander, Chairman Independent 5 5 100 3,00,000
Dr. Allamraju Subramanya Ramasastri Independent 5 5 100 3,00,000
Mr. Ranodeb Roy Non-Executive 5 5 100 3,00,000
Non-Independent
Mr. Snehomoy Bhattacharya Independent 5 4 80 2,40,000
Note: Post March 31, 2022, Mr. Ranodeb Roy and Mr. Snehomoy Bhattacharya ceased to be members of the NRC effective May 11, 2022
and July 09, 2022, respectively, whereas Mr. Philip Mathew, Independent Director was appointed as a Member of the NRC effective June
19, 2022.
95
NRC Composition - (as on date) of a fixed and variable component and in accordance with
the remuneration policy approved by the Board of Directors;
Non-Executive
10. Reviewing and approving compensation strategy from time
Non-Independent to time in the context of the prevailing market in accordance
0% (0) with applicable laws;
11. To report on the systems and on the amount of the annual
remuneration of Directors and senior management;
Executive
0% (0) Independent 12. Framing suitable policies and systems to ensure that there is
100% (3) no violation by an employee of any applicable laws in India or
overseas, including:
Terms of reference (i) The Securities and Exchange Board of India (Prohibition
Terms of reference of the NRC is given below:- of Insider Trading) Regulations, 2015;
1. Formulating the criteria for determining qualifications, (ii) The Securities and Exchange Board of India (Prohibition
positive attributes and independence of a Director and of Fraudulent and Unfair Trade Practices relating to
recommending to the Board of Directors a policy, relating to the Securities Market) Regulations, 2003; Securities
the remuneration of the Directors, key managerial personnel and Exchange Board of India (Listing Obligations and
and other employees; Disclosure Requirements) Regulations, 2015.
2. Evaluating the balance of skills, knowledge and experience 13. Performing such other activities as may be delegated by
on the Board and on the basis of such evaluation, prepare the Board of Directors and/or specified/provided under
a description of the role and capabilities required of an the Companies Act, 2013 together with the rules framed
independent director. The person recommended to the thereunder, as amended and to the extent notified, or the
Board for appointment as an independent director shall have Securities and Exchange Board of India (Listing Obligations
the capabilities identified in such description. For the purpose and Disclosure Requirements) Regulations, 2015, as
of identifying appropriate candidates, the Committee may: amended, or by any other regulatory authority;
a. consider candidates from a wide range of backgrounds, 14. To formulate the criteria for determining qualifications,
having due regard to diversity; positive attributes and independence of a Director and
b. consider the time commitments of the candidates; and decide their ‘fit & proper’ status;
c. use the services of an external agencies, if required 15. To oversee the framing, review and implementation of
3. Formulating of criteria for evaluation of the performance of compensation policy of the Bank and recommend to the Board
the Independent Directors and the Board of Directors; the overall remuneration philosophy and policy including the
level and structure of fixed pay, variable pay, perquisites,
4. Devising a policy on Board of Directors’ diversity;
bonus pool, stock-based remuneration to employees;
5. Identifying persons who qualify to become Directors and
who may be appointed in senior management in accordance 16. To review the HR strategy and policy including the conduct
with the criteria laid down, recommending to the Board of and ethics of the employees and Directors of the Bank
Directors their appointment and removal, and specifying the and review any fundamental change in the organisational
manner for effective evaluation of performance of Board, structure, which could have wide ranging and high risk
its committees and individual directors to be carried out implications;
either by the Board, by the Nomination and Remuneration 17. To review and recommend to the Board, the succession
Committee or by an independent external agency and review policy at the level of Managing Director & CEO, other Whole-
its implementation and compliance; time Directors (WTDs), senior management one level below
6. Determining whether to extend or continue the term of the Board and key roles;
appointment of an Independent Director, on the basis of the
18. Recommend to the Board, all remuneration, in whatever
report of performance evaluation of Independent Directors;
form, payable to Senior Management.
7. Analysing, monitoring and reviewing various human resource
and compensation matters; Risk Management Committee
8. Determining the Bank’s policy on remuneration and any The Risk Management Committee of the Board (‘RMCB’) has been
compensation payment, for the Chief Executive Officer formed pursuant to the guidelines of RBI on Risk Management
(CEO), the Executive Directors, key managerial personnel Systems and in compliance with Regulation 21 of the SEBI LODR.
including pension rights and determination of remuneration The functions of the RMCB, inter alia, is to review the Bank’s risk
packages of such personnel; management framework and policies pertaining to credit, market,
liquidity, operational and cybersecurity risks.
9. Determining compensation levels payable to senior
management personnel and other staff (as deemed The Bank has laid down a procedure to inform the RMCB and the
necessary), which shall be market-related, usually consisting Board, on a periodic basis, about the identified risks and the steps
96
taken to mitigate and minimise the same. The Bank has already Meetings of the Risk Management Committee
identified and assessed the major elements of risks, which may As on March 31, 2022, the RMCB comprised four Directors including
adversely affect the various divisions of the Bank. The RMCB three Independent Directors and was chaired by Mr. Santanu
reviews the identified risks, including assessment of the said risks Mukherjee, Independent Director. During FY 2021-22, RMCB met
and procedures, which are being implemented for monitoring, five times, i.e., on June 18, 2021, August 26, 2021, November 29,
mitigating and minimising the said risks. 2021, February 14 & 15, 2022. The RMCB meets on a quarterly basis.
Composition (as on March 31, 2022) and attendance - RMCB

FY 2021-22 (five meetings) attendance Sitting fees paid
During tenure Attended (amt. in `)
Mr. Santanu Mukherjee, Chairman Independent 5 5 100 3,75,000
Dr. Allamraju Subramanya Ramasastri Independent 5 5 100 3,75,000
Mr. Chandra Shekhar Ghosh Executive 5 5 100 NA
Mr. Subrata Dutta Gupta Independent 5 5 100 3,75,000
RMCB Composition - (as on date) • Appropriate methodology, processes and systems are
in place to monitor and evaluate risks associated with
the business of the Bank;
Executive
• Monitor and overseeing the implementation of the risk
25% (1)
management policy/policies, including evaluating the
adequacy of risk management systems;
• Reviewing the risk management policy/policies, at
Non-Executive least once in two years, including by considering the
Non-Independent changing industry dynamics and evolving complexity
0% (0) Independent
75% (3) 6. To ensure effectiveness and performance of risk rating
system and associated processes and controls through pre-
Terms of reference
approval validation, periodical review or as a part of annual
Terms of reference of the RMCB is given below:-
validation exercise;
1. To oversee risk management function and obtain assurance
7. To oversee allocation and maintenance of sufficient resources
from the respective committees and Risk Department
that the risk faced by the Bank including cyber security (including IT support) for risk identification, measurement,
related risks have been properly identified and are being monitoring and reporting;
appropriately managed; 8. To approve risk capital computation and place it to the Board
2. To define the risk appetite of the Bank within overall for approval;
parameters set by the Board in terms of business strategy 9. To reinforce the culture and awareness of risk management
and growth; throughout the organisation;
3. To ensure effectiveness in the conduct of the overall risk 10. To keep the board of directors informed about the nature
governance; and content of its discussions, recommendations and actions
4. To approve risk limits at the Bank-wide level for various to be taken; and
portfolios such as product, industry, geography, risk types, 11. The appointment, removal and terms of remuneration of the
etc.; Chief Risk Officer (if any) shall be subject to review by the
5. To approve risk management and measurement policy/ Risk Management Committee.
policies, framework, guidelines and procedures before Corporate Social Responsibility Committee
submission to the Board which shall include: Your Bank has a Corporate Social Responsibility (‘CSR’) Committee
• A framework for identification of internal and external of the Board with the powers and the role that is in accordance
risks specifically faced by the Bank, in particular with Section 135 of the Companies Act. The function of the CSR
including financial, operational, sectoral, sustainability Committee includes a review of CSR initiatives, undertaken by the
(particularly, ESG related risks), information, cyber Bank for inclusive growth, formulation and recommendation to the
security risks or any other risk as may be determined Board of a CSR Policy indicating the activities to be undertaken by
by the Committee; the Bank, and the amount of expenditure to be incurred on such
activities. It also makes recommendations to the Board with respect
• Measures for risk mitigation including systems and
to the CSR initiatives, annual action plan, policies and practices of
processes for internal control of identified risks;
the Bank, monitor the conformity of CSR activities, implementation
• Business continuity plan; and compliance with the CSR Policy, and reviews and implements,
97
if required, any other matter relating to CSR initiatives as 22, is enclosed as Annex – 1 to the Board’s Report and is forming
recommended/suggested by any statutory or regulatory body. part of this Annual Report.
The CSR Policy of the Bank, duly aligned with the amendments Meetings of the Corporate Social Responsibility
made to Section 135 of the Companies Act and the Companies Committee of the Board (‘CSRCB’)
(Corporate Social Responsibility Policy) Rules, 2014, is available As on March 31, 2022, the CSR Committee comprised four
on the Bank’s website at https://bandhanbank.com/pdfViewerJS/ Directors, including two Independent Directors and was chaired
index.html#../sites/default/files/2021-07/CSR-Policy-2021_1.pdf. by Mr. Subrata Dutta Gupta, Independent Director. During FY
The Report on CSR activities, including the details of the CSR 2021-22, CSR Committee met twice, i.e., on May 27, 2021 and
programme and activities carried out by the Bank during FY 2021- December 08, 2021.
Composition (as on March 31, 2022) and attendance - CSRCB

FY 2021-22 (two meetings) attendance Sitting fees paid
Mr. Subrata Dutta Gupta, Chairman Independent 2 2 100 1,20,000
Non- Independent
Mr. Vijay Nautamlal Bhatt Independent 2 2 100 1,20,000
Note: Post March 31, 2022, Mr. Ranodeb Roy ceased to be a member of the CSRCB effective May 11, 2022.
CSRCB Composition - (as on date) 5. To review and recommend the amount of expenditure to
be incurred on the activities to be undertaken by the Bank
Non-Executive and the distribution of the same to various corporate social
Non-Independent
responsibility programmes undertaken by the Bank;
0% (0)
6. To monitor the CSR policy of the Bank from time to time; and
Executive 7. Any other matter as the CSR Committee may deem

33% (1) appropriate after approval of the Board of Directors or as
may be directed by the Board of Directors from time to time.
Independent Information Technology (IT) Strategy Committee

67% (2) The IT Strategy Committee of the Board (‘ITSCB’), constituted
pursuant to guidelines/circulars issued by RBI, deals with the
information technology, information security, cybersecurity, etc.,
Terms of reference
aspects of the Bank. It reviews and recommends the strategy and
Terms of reference of the CSRCB is given below:-
policy for IT related-matters to the Board, ensures that IT strategy
1. To formulate and recommend to the Board, a CSR policy is aligned with the business strategy, reviews IT risks, ensures
which shall indicate the activities to be undertaken by the proper balance of IT investments for sustaining the Bank’s growth,
Bank as per the Companies Act, 2013 oversees the aggregate funding of IT at the Bank-level, ascertains
if the management has adequate resources to ensure proper
2. Identifying corporate social responsibility policy partners and
administration of IT risks and reviews the contribution of IT.
corporate social responsibility policy programmes;
Meetings of the IT Strategy Committee
3. Identifying and appointing the corporate social responsibility
As on March 31, 2022, the ITSCB comprised three Directors,
team of the Bank including corporate social responsibility
including two Independent Directors and was chaired by
manager, wherever required;
Dr. Allamraju Subramanya Ramasastri, Independent Director. During
4. Delegating responsibilities to the corporate social FY2021-22, ITSCB met five times, i.e., on May 27, 2021, August 21,
responsibility team and supervise proper execution of all 2021, November 26, 2021, February 16, 2022 and March 30, 2022.
delegated responsibilities; ITSCB meets on a quarterly basis.
Composition (as on March 31, 2022) and attendance - ITSCB
Name of Member Category Number of Meetings during % of Gross Amount
FY 2021-22 (five meetings) attendance of Sitting fees
During tenure Attended paid (amt. in `)
Dr. Allamraju Subramanya Ramasastri, Chairman Independent 5 5 100 3,00,000
Mr. Narayan Vasudeo Prabhutendulkar Independent 5 5 100 3,00,000
98
ITSCB Composition - (as on date) 12. To confirm whether the IT or business architecture is
Non-Executive designed to derive the maximum business value from IT;
Non-Independent 13. To oversee the aggregate funding of IT at Bank-level and
0% (0) ascertaining if management has resources to ensure the
proper management of IT risks;
Executive 14. To review IT performance measurement and contribution of
33% (1) IT to business (i.e. delivering the promised value);
15. The progress of achievement of digital transactions would
Independent be subsequently monitored by the IT Strategy Committee in
67% (2) all its meetings; i.e. it would be a permanant agenda for IT
Strategy Committee; and
Terms of reference 16. To review & monitor the mechanism of the digital
Terms of reference of the ITSCB is given below:- transactions as follows:
1. To approve IT Strategy and policy documents; (i) Progress on implementation of new Digital Products;
2. To ensure whether management has put an effective (ii) Number of Digital Transactions on existing digital channels;
strategic planning in place; (iii) Increasing the number of Digital Transactions in existing
3. To ratify whether the business strategy is indeed aligned with digital channels.
IT strategy; Customer Service Committee
4. To ensure whether the IT organisational structure The functions of the Customer Service Committee of the Board
complements the business model and its direction; (‘CSCB’), constituted pursuant to the Master Circular on Customer
5. To ascertain whether management has implemented Service in Banks issued by RBI, inter alia, include reviewing
customer service initiatives, overseeing the functioning of
processes and practices which ensure that IT delivers value
grievance redressal mechanism for customers, evolving innovative
to the business; measures for enhancing the quality of customer service and
6. To ensure that the IT investments represent a balance of risk improving the overall satisfaction level of customers of the Bank.
& benefits and that the budgets are acceptable;
Enhanced disclosures on complaints received by the Bank from
7. To monitor the methods that management uses to determine
customers and from the Offices of Banking Ombudsman (‘OBOs‘)
the IT resources needed to achieve strategic goals and provide and grievance redress as prescribed under Circular dated January
high-level direction for sourcing and use of IT resources; 27, 2021 on Strengthening of Grievance Redress Mechanism in
8. To ensure proper balance of IT investments for sustaining Banks issued by RBI, is made available as part of notes to Financial
Bank’s growth; Statement forming part of this Annual Report.
9. To be aware of the exposures towards IT risks and controls
Meetings of the Customer Service Committee
and evaluating effectiveness of management’s monitoring of
As on March 31, 2022, the CSCB comprised three Directors,
IT risks; including two Independent Directors and one Executive Director,
10. To assess senior management’s performance in implementing and was chaired by Mr. Narayan Vasudeo Prabhutendulkar,
IT strategies; Independent Director. During FY 2021- 22, CSCB met four times,
11. To issue high- level policy guidance (e.g. related to risk, i.e., on May 31, 2021, September 23, 2021, December 08, 2021
funding or sourcing tasks); and March 16, 2022. CSCB meets on a quarterly basis.
Composition (as on March 31, 2022) and attendance - CSCB
Name of Member Category Number of Meetings during % of Gross Amount
FY 2021-22 (four meetings) attendance of Sitting fees
During tenure Attended paid (amt. in `)
Mr. Narayan Vasudeo Prabhutendulkar, Chairman Independent 4 4 100 2,40,000
Mr. Ranodeb Roy(1) Non-Executive 1 1 100 60,000
Non-Independent
1. Ceased to be Member of the CSCB effective July 30, 2021
CSCB Composition - (as on date) Terms of reference

Terms of reference of the CSCB is given below:-
Non-Executive
Non-Independent 1. To formulate a comprehensive deposit policy;
0% (0)
2. To monitor product approval process with a view to suitability
and appropriateness;
Executive 3. To conduct annual survey of depositor satisfaction;
33% (1)
4. To conduct triennial audit of such services;
5. To review Regulatory guidelines issued from time to time and
Independent
67% (2) formulate policy for their implementation;
99
6. To set up a grievance redressal mechanism for the Bank to 12. To oversee and review / modify the initiatives taken by Customer
handle customer complaints; Service Committee of the branches and other departments; and
7. To monitor and follow up complaints / grievances escalated 13. To address any other issues having a bearing on the quality of
to be resolved by Banking Ombudsmen of the various States; customer service rendered, such as examining reports on no.
and nature of complaints received and status of resolution
8. To implement awards under the Banking Ombudsman thereof, etc.
Scheme;
Special Committee for Monitoring High Value Frauds
9. To address issues of systemic deficiencies, if any, brought out The Special Committee for Monitoring High Value Frauds
by the awards; (‘SCMHVF’) was constituted as per Master Directions on Frauds
issued by RBI for commercial banks. The Committee is required to
10. To monitor awards remaining unimplemented for more than
meet and review as and when a fraud involving an amount of ₹1
three months with the reasons (for a report to the Board) for
crore and above comes to light.
such delays in implementation and for initiating necessary
remedial action; Meetings of the Special Committee for Monitoring High
Value Frauds
11. To review customer service / customer care aspects in the As on March 31, 2022, the SCMHVF comprised five Directors,
Bank and submit a detailed memorandum in this regard to including four Independent Directors and the Managing Director
the Board of Directors, once every six months and initiate & CEO, and was chaired by Mr. Suhail Chander, Independent
prompt corrective action wherever service quality / skill gaps Director. During FY 2021-22, the SCMHVF met twice, i.e., on May
have been noticed; 20, 2021 and August 31, 2021.
Composition (as on March 31, 2022) and attendance - SCMHVF

FY 2021-22 (two meetings) attendance Sitting fees paid
Mr. Suhail Chander, Chairman Independent 2 2 100 1,20,000
Mr. Vijay Nautamlal Bhatt Independent 2 2 100 1,20,000
Note: Post March 31, 2022, Mr. Snehomoy Bhattacharya ceased 3. To monitor progress of investigation by law enforcing
to be a member of the SCMHVF effective July 09, 2022, whereas agencies and recovery position;
Mr. Philip Mathew, Independent Director was appointed as 4. To ensure that staff accountability is examined at all levels
member of the SCMHVF effective June 19, 2022 in all the cases of frauds and staff side action, if required, is
completed quickly without loss of time;
SCMHVF Composition - (as on date)
5. To review the efficacy of the remedial action taken to prevent
Non-Executive
Non-Independent recurrence of frauds, such as strengthening of internal
Executive 0% (0) controls; and
20% (1)
6. To put in place other measures as may be considered relevant
to strengthen preventive measures against frauds.
Stakeholders Relationship Committee

The Bank has a Stakeholders Relationship Committee of the Board
Independent (‘SRCB’), constituted in accordance with the provisions of Section
80% (4)
178(5) of the Companies Act and Regulation 20 of the SEBI LODR,
to specifically look into various matters relating to Shareholders,
Terms of reference including the transfer and transmission of shares, issue of share
certificates (including the issue of renewed or duplicate share
Terms of reference of the SCMHVF is given below:-
certificates), claims of unclaimed dividend and shares lying in
1. To identify the systematic lacunae if any that facilitated the suspense account as well as with IEPF Authority, non-receipt
perpetration of the fraud and put in place measures to plug of Annual Report and so on. Additionally, the Committee also
the same; looks into other issues, such as, the status of dematerialisation/
re-materialisation of shares as well as systems and procedures
2. To identify the reasons for delay in detection, and/or followed to track investor complaints and suggests measures
reporting to top management of the Bank and RBI, if for improvement, from time to time, and the matters related to
any; unsecured debentures issued by the Bank.
100
Meetings of the Stakeholders Relationship Committee

As on March 31, 2022, the SRCB comprised four Directors, including three Independent Directors and was chaired by Mr. NVP Tendulkar,
Independent Director. During FY 2021-22, the SRCB met four times, i.e., on May 20, 2021, August 30, 2021, November 30, 2021 and
February 10, 2022. The SRCB meets on a quarterly basis.
The last AGM of the Bank was held on August 06, 2021, which was attended by Mr. NVP Tendulkar, Chairman of the SRCB. Mr. Indranil
Banerjee is the Company Secretary and Compliance Officer of the Bank in terms of the SEBI LODR.
Composition (as on March 31, 2022) and attendance - SRCB
FY 2021-22 (four meetings) attendance Sitting fees paid
Mr. Narayan Vasudeo Independent 4 4 100 2,40,000
Prabhutendulkar, Chairman
Non-Independent
Ms. T. S. Raji Gain Independent 4 4 100 2,40,000
Note: Post March 31, 2022, Mr. Ranodeb Roy and Mr. Snehomoy 4. Issuing duplicate certificates and new certificates on split/
Bhattacharya ceased to be members of the SRCB effective May 11, consolidation/renewal;
2022 and July 09, 2022, respectively, whereas Ms. Divya Krishnan, 5. Dematerialisation / rematerialisation of shares;
Non-Executive Non-Independent Director and Mr. Philip Mathew, 6. Transfer / transmission of shares and their redressal;
Independent Director were appointed as Members of the SRCB
7. Monitoring and supervision of the Registrar and Transfer
effective June 19, 2022.
Agent (RTA) and review of adherence to the service standards
SRCB Composition - (as on date) adopted by the Bank in respect of various services being
rendered by the RTA;
Non-Executive
Non-Independent 8. Review of the activities of the services provided to the security
25% (1) holders relating to the various services rendered by the
Secretarial Department, Investor Services Department, various
initiatives taken to inter-alia to reduce quantum of unclaimed
Executive dividends, status of claims received, ensuring timely receipt
0% (0)
of dividend warrants/annual reports/ statutory notices by the
Independent
shareholders of the Bank and process for unclaimed shares,
75% (3) uploading of data relating to unclaimed dividends on the
website of Investor Education & Protection Fund and the Bank;
9. Review the Action Taken Report in respect of
Terms of reference recommendations made by the Committee;
Terms of reference of the SRCB is given below:- 10. Review the status of the litigation(s) filed by/ against the
1. Review the mechanism adopted for redressing the grievance security holders of the Bank;
of shareholders, debenture holders and deposit holders and 11. Review the mechanism adopted to review, monitor and
other security holders and the status of such redressal; report transactions relating to securities which may be
suspicious from a money-laundering perspective;
2. Considering and resolving the grievances of the security
12. The Committee shall perform such other functions as may
holders of the Bank including complaints related to transfer/
be required under the relevant provisions of the Companies
transmission of shares, non-receipt of the annual report,
Act, and the SEBI (Listing Obligations and Disclosure
non-receipt of declared dividends, general meetings, etc.; Requirements) Regulations, 2015, relating to Corporate
3. Investigating complaints relating to allotment of shares, Governance, as amended from time to time; and
approval of transfer or transmission of shares, debentures or 13. Review of measures taken for effective exercise of voting
any other securities; rights by shareholders.
Status of Shareholders’ Complaints as on March 31, 2022

Particulars Total
Number of Shareholders’ complaints pending at the beginning of the year Nil
Number of Shareholders’ complaints received during the year 424
Number of Shareholders’ complaints disposed of during the year 424
Number of Shareholders’ complaints unresolved at the end of the year Nil
101
There was no investor complaint pending against the Bank as on and necessary details with regard to these are provided on the
March 31, 2022 on SCORES, the web- based complaint redressal website of the Bank.
system of SEBI. Further, in compliance with Regulations 7(2) & 7(3) of SEBI LODR,
Pursuant to the authorisation by the Board and/or the SRCB, the a Compliance Certificate is filed with the Stock Exchanges where
Company Secretary is authorised to approve Transmission/ Sub- the shares of the Bank are listed. The said certificate is duly signed
division/Consolidation/Renewal/Replacement/Issue of Duplicate by both the Company Secretary & Compliance Officer of the Bank
Share Certificate(s)/Deletion of Name(s) and Dematerialisation/ and the authorised representative of the Share Transfer Agent, on
Rematerialisation of shares of the Bank. A summary of transfer/ a yearly basis, certifying that all activities relating to share transfer
transmission, etc., of securities of the Bank so approved by the facility of the Bank are maintained by KFin Technologies Limited,
Company Secretary is placed at the SRCB meeting. A certificate Registrar and Share Transfer Agent (‘RTA’) of the Bank.
from a Practicing Company Secretary is obtained on a yearly basis, Committee of Directors
as per the provisions of Regulations 40(9) & (10) of SEBI LODR, The Committee of Directors (‘COD’) was constituted by the Board
relating to compliance with the formalities of share transfer and to consider and sanction loan proposals exceeding ₹50 crore in
the same is also filed with the Stock Exchanges. case of Non-Banking Financial Company Non-Micro Finance
Institutions (NBFC Non-MFIs) and exceeding ₹200 crore for NBFC
However, as an on-going measure to enhance ease of dealing in
MFIs, within the prudential limits, and to handle any other issue
securities market by investors, SEBI has issued various circulars
as may be decided by the Board of Directors, from time to time,
during recent times. One of such circular no. SEBI/HO/MIRSD/
including borrowing of funds for the Bank.
MIRSD_RTAMB/P/CIR/2022/8 dated January 25, 2022, has
mandated the listed entities to issue securities in dematerialized Meetings of the Committee of Directors
form only, while processing specified service requests made by As on March 31, 2022, the COD comprised four Directors, including
the physical security holders. The Circulars specify the manner three independent Directors and was chaired by the Managing
in which such requests are required to be entertained by the Director & CEO. During FY 2021-22, the COD met eleven times,
listed entities and the manner in which the dematerialization of i.e., on April 23, 2021, June 24, 2021, August 24, 2021, September
securities are required to be completed. The Bank encourages 23, 2021, November 26, 2021, December 24, 2021, January 10,
the shareholders to hold the shares in dematerialized mode 2022, February 10 and 28, 2022, and March 10 and 24, 2022.
Composition (as on March 31, 2022) and attendance - COD

FY 2021-22 (eleven meetings) attendance Sitting fees paid
Mr. Chandra Shekhar Ghosh, Chairman Executive 11 11 100 NA
Mr. Suhail Chander Independent 11 10 91 6,00,000
COD Composition - (as on date)

Non-Executive
Non-Independent
0% (0)
Executive
25% (1)
Independent
75% (3)
Annual General Meetings

(Details of Annual General Meetings for the previous three financial year are as under)
Sl. Particulars of meeting Location Date & Time Special Resolutions
No. passed, if any
1. 5th Annual General Mini Auditorium, Biswa Bangla Convention Centre, June 28, 2019 Three special resolutions
Meeting DG Block (Newtown), Action Area I, at 11:00 A.M. were passed
New Town, West Bengal 700 156
2. 6th Annual General DN-32, Sector V, Salt Lake, Kolkata – 700091 August 21, 2020 Two special resolutions
Meeting (through VC) at 11:00 A.M. were passed
3. 7th Annual General 14th Floor, Adventz Infinity@5, BN-5, Sector V, Salt August 06, 2021 Three special resolutions
Meeting Lake City, Kolkata – 700091 (through VC) at 11:00 A.M. were passed
102
Postal Ballot Your Bank has made a diagnostic study to identify the gaps,
During the financial year under review, no resolution, whether process and system changes required to implement Ind AS and is
ordinary or special, was passed by the members of the Bank in the process of implementing necessary changes in its IT system
through Postal Ballot. Further, no special resolution is proposed and other processes. The Bank is regularly holding workshops and
to be conducted through Postal Ballot. None of the businesses training for its staff.
proposed to be transacted at the ensuing AGM of the Bank require
Related Party Transactions
passing a resolution through Postal Ballot.
There were no materially significant transactions with related
Other Disclosures parties during the financial year 2021-22, which could lead to a
Management Discussion & Analysis Report potential conflict of interest between the Bank and these parties.
The Management Discussion & Analysis Report, giving an overview Related Party Transactions that were entered into during the
of the industry, the Bank’s business and its financials, is provided financial year 2021-22 were on an arm’s length basis and were
separately as Annex - 5 to the Board’s Report and forms part of in the ordinary course of the Bank’s business. Weblink for your
this Annual Report. Bank’s Policy on dealing with Related Party Transactions is https://
bandhanbank.com/pdfViewerJS/index.html#../sites/default/
Disclosure on Material Subsidiary files/2022-04/Related_Party_Transaction_Policy_0.pdf. Further
The Bank does not have a subsidiary, at present. Therefore,
details are provided in the Board’s Report.
requirement to formulate a policy for determining ‘material’
subsidiary is not applicable to the Bank. Penalties and Strictures for last three financial years
With regard to the matters related to the capital market, there was
Commodity Price Risks, Foreign Exchange Risks and no non-compliance neither penalties nor strictures imposed on
Hedging Activities your Bank by the Stock Exchanges and/ or SEBI and/ or any other
Your Bank has not taken any position in commodity. The Bank has
statutory authorities during the last three financial years.
no foreign currency liability, neither in foreign currency bonds
nor bilateral or syndicated loans. Your Bank has a Board approved Whistle Blower Policy & Vigil Mechanism
Market Risk Policy which defines a risk control framework for The Bank has adopted the Board approved ‘Policy on Vigilance
undertaking any foreign exchange risk. Vide Market Risk Policy, the and Whistle Blower Mechanism’, as required under Section 177
Board of your Bank has defined an overall Net Overnight Open of the Companies Act, Regulation 22 of SEBI LODR and applicable
Position (NOOP) Limit, Stop Loss Limit, Aggregate Gap Limit (AGL), circulars issued by RBI, in this regard. The said Policy provides for
Value at Risk (VaR) Limit to control the foreign exchange risk within adequate safeguards against the victimisation of the Directors
its risk control framework. and employees who avail this mechanism and ensures that
the personnel gets direct access to the Chairman of the ACB as
Accounting Treatment
prescribed under the Companies Act and SEBI LODR. None of the
The financial statements have been prepared under the historical
Bank’s personnel has been denied access to the ACB. The said
cost convention and on the accrual basis of accounting, unless
Policy is available on the Bank’s website at https://bandhanbank.
otherwise stated and in compliance with the requirements
com/pdfViewerJS/index.html#../sites/default/files/2021-03/
prescribed under the Third Schedule (Form A and Form B) of
Annexure%20B-%20%20Revised%20Vigilance%20Policy%20%20
the BR Act. The accounting and reporting policies of your Bank
Whistle%20Blower%20Mechanism_.pdf .
used in the preparation of the financial statements conform to
Generally Accepted Accounting Principles in India (‘Indian GAAP’), Code of Conduct
the guidelines issued by RBI, from time to time, the accounting Your Bank has adopted a Code of Conduct for Directors and also a
standards notified under Section 133 and other relevant provisions Code of Conduct for its senior management which are approved
of the Companies Act, read together with the Companies by the Board. The Code of Conduct for senior management
(Accounts) Rules, 2014 and the Companies (Accounting Standards) attempts to set forth the guiding principles on which your Bank
Amendment Rules, 2016, as amended from time to time, to the shall operate and, conduct its daily business with its multitudinous
extent applicable, and practices generally prevalent in the banking stakeholders, viz., shareholders, customers, employees,
industry in India. regulators. This Code is available on the Bank’s website at https://
bandhanbank.com/pdfViewerJS/index.html#../sites/default/
Indian Accounting Standard (IND AS) implementation
files/2020-12/Code-Conduct-for-Senior-Management.pdf.
RBI had issued a circular in February 2016 requiring banks to
The Code of Conduct for Directors also contains a reference to the
implement the Indian Accounting Standards (‘Ind AS‘) and prepare
duties of the Independent Directors as laid down in Schedule IV
Ind AS financial statements with effect from April 01, 2018.
to the Companies Act. This Code is also available on the Bank’s
In line with RBI guidelines on Ind AS implementation, your Bank website at https://bandhanbank.com/pdfViewerJS/index.html#../
has formed a Steering Committee comprising members from the sites/default/files/2020-12/Code-Conduct-for-Directors.pdf.
concerned functional areas. As advised by RBI, your Bank has also As required under Regulation 26(3) of SEBI LODR, all Directors and
submitted Proforma Ind AS financial statements every quarter senior management personnel have affirmed compliance with the
starting from the quarter ended June 30, 2018 to RBI. Code of Conduct, as approved and adopted by the Board, for the
financial year ended March 31, 2022.
However, RBI in its press release issued on March 22, 2019 has
deferred the applicability of Ind AS till further notice for Scheduled Declaration, as required under Para D of Schedule V to the SEBI
Commercial Banks. LODR, with respect to the financial year ended March 31, 2022,
103
duly signed by the Managing Director & CEO, is annexed to this and disclosures by designated persons through Structured Digital
Report. Database (SDD). The report on the compliance with the PIT Code
is being submitted to the ACB/Board periodically.
Policy for the Preservation of Documents
In accordance with Regulation 9 of the SEBI LODR, your Bank has Dividend Distribution Policy
framed a policy for the preservation of documents, which has Your Bank has adopted the Dividend Distribution Policy to
been approved by the Board of Directors of the Bank. This Policy determine the distribution of dividends in accordance with the
is intended to guide your Bank and its officers on the maintenance provisions of applicable laws. The details of the same are provided
of any documents, their preservation and disposal. The said policy in the Board‘s Report of this Annual Report.
can be accessed on the Bank’s website at https://bandhanbank.
Directors and Officers Insurance (D & O Policy)
com/pdfViewerJS/index.html#../sites/default/files/2020-12/
Your Bank has in place a Directors and Officers Liability Policy (D & O
Policy-Preservation-of-Documents.pdf.
Policy) for all its Directors, with the quantum and risks determined
Policy for Determination of Materiality of Events/ by its Board of Directors. The Policy covers management liability,
Information and Archival Policy company securities, investigation cost, Non-Executive Directors’
In accordance with Regulation 30 of the SEBI LODR, your Bank protection, investigation, extradition, outside directorship, bodily
has framed a policy for Determination of Materiality of Events/ injury and property damage defence costs, assets and liberty, etc.
Information, which provides guidance to the Board, management
Complaints pertaining to Sexual Harassment
and staff on the assessment of the materiality of events, which
The details of complaints filed and disposed of during the financial
will have bearing on the performance/operations of your Bank.
year as well as pending cases pertaining to sexual harassment are
The Policy has been reviewed and amended by the Board, during
provided in the Board‘s Report of this Annual Report.
the financial year under review, primarily, to align its provisions
with the recent SEBI LODR amendments. The Policy is available Details of utilisation of funds raised through preferential
on the Bank’s website at https://bandhanbank.com/sites/default/ allotment or qualified institutions placement as specified
files/2021-11/Determination_of_Material_Event_Information. under Regulation 32 (7A) of SEBI LODR
pdf. Further, your Bank has a Board approved Archival Policy in line During the financial year under review, your Bank has not raised
with the requirements of SEBI LODR to ensure that information any funds through Preferential Allotment or Qualified Institutions
relating to your Bank is adequately disclosed on its website as Placement as specified under Regulation 32(7A) of the SEBI LODR.
required by law. The policy has been uploaded on the Bank’s
Compliance with Mandatory Requirements
website at https://bandhanbank.com/pdfViewerJS/index.html#../
Your Bank has complied with all the applicable mandatory
sites/default/files/2020-12/Archival-Policy.pdf.
requirements of Corporate Governance as prescribed under the
Code of Conduct for Prevention of Insider Trading SEBI LODR.
Your Bank has adopted a Code of Conduct for Prevention of Insider
Tentative period of Board Meetings for the financial year
Trading in the securities of the Bank (‘PIT Code’) in line with the
ending March 31, 2023
provisions of the SEBI (Prohibition of Insider Trading) Regulations,
The tentative period of the meetings of the Board of Directors for
2015. The PIT Code, inter- alia, prohibits trading in the securities
the consideration of quarterly financial results for the financial
of your Bank by insiders while in possession of any Unpublished
year ending March 31, 2023 are as follows:
Price Sensitive Information (‘UPSI’) in relation to the Bank. Your
Bank has also adopted a Board approved Code of Practices and Quarter Tentative period of Board
Procedure for Fair Disclosure of UPSI, which is available on the Meetings
website of the Bank at https://bandhanbank.com/corporate- First quarter ending on June Within 45 days from the end
governance#retabthree. The Board reviews the PIT Code on an 30, 2022 of quarter
annual basis and whenever required. The PIT Code has been Second quarter ending on Within 45 days from the end
reviewed during the financial year under review, primarily, to September 30, 2022 of quarter
align it with the recent amendments to the SEBI (Prohibition of Third quarter ending on Within 45 days from the end
Insider Trading) Regulations, 2015 and has been duly approved December 31, 2022 of quarter
by the Board. The Company Secretary of your Bank acts as the Fourth quarter ending on Within 60 days from the end
‘Compliance Officer’ in terms of the PIT Code and is responsible March 31, 2023 of quarter
for implementation and overseeing compliance with the PIT
Code across the Bank. The cases of violations observed during Compliance with Non-Mandatory Requirements
a) The Board
the financial year were submitted to the Disciplinary Committee
The expenses pertaining to the office of the Non-Executive
of the Bank and accordingly, the intimation, with regard to the
Chairman is maintained by the Bank along with the
action taken by your Bank along with the details of the penal
reimbursement of all the expenses incurred by the Chairman
amount remitted to the Investor Protection and Education Fund
while performing his duties.
maintained by SEBI, were submitted to the Stock Exchanges from
time to time. Your Bank has also undertaken various initiatives b) Shareholder Rights
during the financial year to spread awareness amongst the Your Bank publishes its financial results every quarter on
employees of your Bank about the provisions of the PIT Code. Your its website at www.bandhanbank.com, which is accessible
Bank has automated the process for submission of declarations to the public at large. The same is also available on the
104
websites of the Stock Exchanges, i.e., BSE Limited and d) Separate posts of Chairperson and the Managing Director
National Stock Exchange of India Limited (’NSE‘). Along or the Chief Executive Officer
with the quarterly results, detailed earnings updates are Your Bank has separate office for the Non-Executive Chairman
also hosted on the website of the Bank. Further, a quarterly and the Managing Director & CEO. The Non-Executive
investors’/ analysts’ conference call is made to discuss the Chairman of your Bank is not related to any directors of your
financial results and performance of the Bank, the audio Bank including the MD&CEO.
recording of which are hosted on the website of the Bank. e) Reporting of Internal Auditor
The Bank’s results for each quarter is published in English The Reporting of the Chief Audit Executive of the Bank is
newspaper having nationwide circulation and in Bengali guided by the extant RBI Circular.
newspaper (viz., Financial Express and Bartaman), whereas
the financial highlights are also published in English as well Means of Communication
The Board of your Bank has been approving the quarterly financial
as Bengali newspaper (viz. Economic Times, Mint, Business
results well within the stipulated time of 45 days from the end
Standard, Business Line, Hindu Ananda Bazar Patrika, Ei
of respective quarters and the audited annual financial results
Samay, Aajkaal, Dainik Statesman, Arthik Lipi, etc.). In view
for the quarter and year ending on March 31 within 60 days from
of the foregoing and the fact that the financial results of
the end of the financial year. The financial results are promptly
the Bank are available in the public domain and easily
submitted to the stock exchanges and are published in English and
accessible, the half-yearly results of the Bank are not sent
Bengali (regional language) newspapers (viz., Financial Express
to shareholders individually.
and Bartaman), within 48 hours of the conclusion of the respective
c) Modified Opinion(s) in Audit Report Board meetings at which such financial results are approved. The
The Independent Audit Report issued by the Joint Statutory financial results, as well as press release, are simultaneously
Auditors of your Bank on the financial statement for the hosted on the Bank’s website accessible at www.bandhanbank.
financial year ended March 31, 2022, is with unmodified com. The website also displays all official news releases by your
audit opinion. The Bank continues to adopt the best practices Bank along with the earnings updates and presentations made to
to ensure a regime of unqualified financial statements. investors and analysts.
Corporate Policies
Sl. Name of the Policy Brief Description Web link
No.
1 Policy on Appointment and Your Bank has adopted the policy for https://bandhanbank.com/pdfViewerJS/
Fit & Proper Criteria for Directors appointment of Directors on the Board index.html#../sites/default/files/2022-03/
considering their fit and proper criteria including Policy-on-Appointment-and-Fit-and-Proper-
special knowledge or practical experience Criteria-for-Directors.pdf
required for banking business.
2 Policy on Vigilance and Whistle Your Bank has adopted a whistle blower https://bandhanbank.com/pdfViewerJS/
Blower Mechanism mechanism for Directors and employees to index.html#../sites/default/files/2021-03/
report concerns about unethical behavior, actual Annexure%20B-%20%20Revised%20
or suspected fraud. Vigilance%20Policy%20%20Whistle%20
Blower%20Mechanism_.pdf
3 Policy on dealing with Related The Policy regulates all transactions between the https://bandhanbank.com/pdfViewerJS/
Party Transaction Bank and its related parties. index.html#../sites/default/files/2022-04/
Related_Party_Transaction_Policy_0.pdf
4 Policy for Determination of This Policy applies to disclosures of material https://bandhanbank.com/sites/default/
Materiality information/events for your Bank. files/2021-11/Determination_of_Material_
Event_Information.pdf
5 Dividend Distribution Policy Your Bank has adopted the Dividend Distribution https://bandhanbank.com/pdfViewerJS/
Policy to determine the distribution of dividends index.html#../sites/default/files/2021-07/
in accordance with the provisions of Circulars Dividend_Distribution_Policy.pdf
issued by RBI, from time to time, and applicable
laws.
6 CSR Policy The Policy outlines your Bank’s strategy to bring https://bandhanbank.com/pdfViewerJS/
about a positive impact on society through index.html#../sites/default/files/2021-07/
programs relating to skill development, poverty CSR-Policy-2021_1.pdf
alleviation, education, healthcare, sanitation,
water conservation, afforestation.
105
Sl. Name of the Policy Brief Description Web link
No.
7 Compensation Policy This Policy formulates the criteria for https://bandhanbank.com/pdfViewerJS/
determining the remuneration of the directors, index.html#../sites/default/files/2022-02/
KMP, senior management and other employees. Compensation_Policy_2022.pdf
8 Policy on Preservation of The Policy formulates categories of documents https://bandhanbank.com/pdfViewerJS/
Documents to be preserved as per regulatory requirements. index.html#../sites/default/files/2020-12/
Policy-Preservation-of-Documents.pdf
9 Archival Policy The Policy deals with the retention and archival https://bandhanbank.com/pdfViewerJS/
of corporate records of your Bank. index.html#../sites/default/files/2020-12/
Archival-Policy.pdf
The Board has been reviewing the above policies, from time to time, to align with the regulatory and business requirements.
General Shareholder Information:

1) Corporate Identity Number (‘CIN’) L67190WB2014PLC204622
Address for Correspondence Registered Office: DN-32, Sector - V, Salt Lake, Kolkata - 700 091
Head Office: Floors 12-14, Adventz Infinity@5, BN 5, Sector V, Salt Lake City, Kolkata- 700 091
Contact: Mr. Indranil Banerjee, Company Secretary & Compliance Officer (Nodal Officer for
IEPF related matters)
Phone Number: 033 6609 0909
E-mail ID: [email protected]
Website: www.bandhanbank.com
2) Date, Time and Venue of the Annual 8th AGM of the Bank will be held on Wednesday, August 10, 2022, at 11:00 A.M.
General Meeting (‘AGM’) Since the AGM will be conducted through VC / OAVM pursuant to the MCA General Circular
Nos. 02/2022 dated May 05, 2022 read with General Circular No. 20/2020 dated May 05,
2020, as such, there is no requirement to arrange a venue for the 8th AGM of the Bank. For
details, please refer to the Notice of the 8th AGM.
3) AGM Webcast link https://emeetings.kfintech.com
4) Financial Year April 01, 2021 to March 31, 2022
5) Date of Book Closure Thursday, August 04, 2022 to Wednesday, August 10, 2022 (both days inclusive)
6) Dividend Payment Date No dividend has been recommended by the Board for FY 2021-22
7) Listing on Stock Exchanges i) National Stock Exchange of India Limited (‘NSE’)
Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
ii) BSE Limited (‘BSE’)
Phiroze Jeejabhoy Towers, Dalal Street, Fort, Mumbai – 400 001
The Bank has duly paid the Annual Listing Fees to NSE & BSE for the financial year 2022-23.
During the financial year under review, the equity shares of the Bank were not suspended
from trading on the said Stock Exchanges, where the shares of the Bank are listed or by any
Regulatory / Statutory Authority.
8) Stock Code NSE Symbol – BANDHANBNK
BSE Scrip Code – 541153
9) Registrars & Share Transfer Agent KFin Technologies Limited
(both Physical & Demat Segments) (formerly, known as KFin Technologies Private Limited)
(Equity & Debentures) Selenium Tower B, Plot No 31 & 32, Financial District,
Nanakramguda, Serllingampally Mandal,
Hyderabad – 500 032, Telangana
E-mail ID: [email protected]
Website: www.kfintech.com
Toll free number: 1800-309-4001
Name of the Contact Person: Mr. S.V. Raju / Mr. Vijayananda Banerjee
(Deputy Vice President, Corporate Registry)
Shareholders are requested to note that our RTA, has launched a mobile application -
KPRISM and a website https://kprism.kfintech.com/ for our investors. Now, shareholders can
download the mobile app and access his/her portfolio(s) serviced by Kfin. Check Dividend
status, request for annual reports, change of address, change / update Bank mandate,
download standard forms, etc. The android mobile application can be downloaded from
Play Store Application by searching for “KPRISM”.
106
10) Share Transfer System The Bank’s shares which are in dematerialised (demat) mode are transferable through the
depository system.
With regard to shares held in physical mode, SEBI vide amendment to Regulation 40(1)
of the SEBI LODR, with effect from April 01, 2019, mandated that except in case of
transmission or transposition of securities, requests for effecting transfer of securities
shall not be processed unless the securities are held in the dematerialized form with a
depository. Further, vide amendment dated January 24, 2022 to Regulation 40(1) of the
SEBI LODR, SEBI has mandated that transmission or transposition of securities held in
physical or dematerialised form shall be effected only in dematerialised form. Moreover,
SEBI vide Circular dated January 25, 2022, has mandated that the listed companies shall
henceforth issue the securities in dematerialized form only while processing certain service
request as explained in subsequent section of this report.
In view of the above, Shareholders holding shares in physical form are requested to consider
converting their holdings to dematerialized form. Transfers of equity shares in electronic
mode are effected through the depositories with no involvement of the Bank. Further, the
Bank has also sent individual letter to the Shareholders holding shares in physical form to
update their KYC, bank details and nomination details with the RTA/the Bank. The Bank has
also implemented the process to issue ‘letter of confirmation’ pursuant to receipt of duly
filled in form ISR -4 by the shareholders holding shares in physical mode.
Therefore, shareholders, holding shares in physical mode, are requested to get in touch with
any Depository Participant registered with SEBI to open a Demat Account or may also visit
website of depositories, viz., National Securities Depository Limited (‘NSDL’), viz., https://
nsdl.co.in/services/demat.php or Central Depository Services (India) Limited (‘CDSL’), viz.,
https://www.cdslindia.com/investors/open-demat.html, for further understanding of the
dematerialisation procedure.
11) Dematerialisation of Shares and The shares of your Bank are available for trading in the dematerialized form under both the
Liquidity Depository Systems in India - NSDL and CDSL. The annual custodian fees for the financial
year 2022-23 have been paid to NSDL and CDSL. Trading in your Bank’s shares can now be
done only in the dematerialised form.
As on March 31, 2022, 160,89,65,936 Shares representing 99.89 per cent. of the
total Share Capital of the Bank were held in dematerialised form. The International
Securities Identification Number (‘ISIN’) of the Bank, as allotted by NSDL and CDSL, is
INE545U01014.
Mode of Shares Held
Demat (CDSL) Physical
5,01,99,595 17,99,931
3.12% 0.11%
Demat (NSDL)
1,55,87,66,341
96.77%
Demat (NSDL) Demat (CDSL) Physical

12) Outstanding ADRs/GDRs/ Warrants
or Any Convertible Instruments,
Not applicable
Conversion Date and Likely Impact
on Equity
107
13) Reconciliation of Share Capital Reconciliation of Share Capital Audit in terms of Regulation 76 of SEBI (Depositories and
Audit Participants) Regulations, 2018 read with SEBI circular D&CC/FITTC/CC/CIR/-16/2002 dated
December 31, 2002, as amended, has been carried out by Company Secretary in Practice
on quarterly basis, who reports on the reconciliation of total issued and listed capital with
that of total share capital admitted/held in dematerialized form with NSDL and CDSL and
those held in physical form. The audit report confirms that the total issued / paid-up capital
is in agreement with the total number of shares in physical form and the total number of
dematerialized shares held with NSDL and CDSL.
The quarterly Reports in this regard have been submitted to Stock Exchanges, viz., BSE and
NSE, and were placed before the Board of Directors of the Bank for its review.
Shareholders holding 1% and above as on March 31, 2022

Sl. No. Name of Holder No. of Shares % of Total
Holdings
1 Bandhan Financial Holdings Limited1 64,41,15,857 39.99
2 Housing Development Finance Corporation Limited 14,51,12,778 9.01
3 Caladium Investment Pte. Ltd. 12,54,44,201 7.79
4 Life Insurance Corporation of India 5,94,55,863 3.69
5 Fidelity Investment Trust Fidelity Series Emerging Markets Opportunities Fund 2,97,52,232 1,85
6 Stichting Depositary APG Emerging Markets Equity Pool 2,74,85,473 1.71
7 Camas Investments Pte. Ltd. 2,24,23,184 1.39
1. Five Individuals held six equity shares as nominees of the Promoter, Bandhan Financial Holdings Limited (‘BFHL’), and they are neither the promoters
nor form part of the promoter group of the Bank. However, post March 31, 2022, these five individuals have transferred the said six equity shares to
the beneficial owner of these shares i.e. BFHL. Consequently, these five individuals ceased to be the nominees of BFHL.
Distribution Schedule as on March 31, 2022

Equity shares held No. of % of No. of Shares % of Total
Shareholders* Shareholders Holdings
1- 5,000 4,42,031 94.40 2,91,95,083 1.81
5,001 – 10,000 12,026 2.57 89,55,814 0.56
10,001 – 20,000 7,046 1.50 1,00,61,900 0.62
20,001 – 30,000 2,347 0.50 59,47,889 0.37
30,001 – 40,000 1,299 0.28 46,17,303 0.29
40,001 – 50,000 726 0.16 33,43,492 0.21
50,001 – 1,00,000 1,279 0.27 89,45,239 0.56
1,00,001 and above 1,504 0.32 153,96,99,147 95.59
Total 4,68,258 100.00 161,07,65,867 100.00
*Number of shareholders on the basis of folios
Top 10 Shareholders as on March 31, 2022

Sl. No. Name of Holder No. of Shares % of Total
Holdings
1 Bandhan Financial Holdings Limited1 64,41,15,857 39.99
2 Housing Development Finance Corporation Limited 14,51,12,778 9.01
3 Caladium Investment Pte. Ltd. 12,54,44,201 7.79
4 Life Insurance Corporation of India 5,94,55,863 3.69
5 Fidelity Investment Trust Fidelity Series Emerging Markets Opportunities Fund 2,97,52,232 1,85
6 Stichting Depositary APG Emerging Markets Equity Pool 2,74,85,473 1.71
7 Camas Investments Pte. Ltd. 2,24,23,184 1.39
8 Touchstone Strategic Trust- Touchstone Sands Capital Emerging Markets Growth Fund 1,16,95,459 0.73
9 Vanguard Emerging Markets Stock Index Fund, A Series of Vanguard International Equity 1,09,48,092 0.68
Index Funds
10 International Finance Corporation 1,05,38,086 0.65
nor form part of the promoter group of the Bank. However, post March 31, 2022, these five individuals have transferred the said six equity shares to
the beneficial owner of these shares i.e. BFHL. Consequently, these five individuals ceased to be the nominees of BFHL.
108
Categories of Shareholders as on March 31, 2022

Sl. Category of Shareholder No. of Shares % of Total
No. Holdings
(A) Promoter and Promoter Group
(a) Bandhan Financial Holdings Limited (Promoter) 64,41,15,857(1) 39.99
(b) Bandhan Financial Services Limited (Promoter) 0 0
(c) Financial Inclusion Trust (Promoter) 0 0
(d) North East Financial Inclusion Trust (Promoter) 0 0
(e) Bandhan Konnagar (Promoter Group) 0 0
Sub-Total 64,41,15,857 39.99
(B) Public Shareholding
(1) Institutions
(a) Mutual Funds /UTI 6,75,71,156 4.19
(b) Financial Institutions /Banks 18,227 0
(c) Foreign Portfolio Investors 55,26,22,646 34.31
(d) Qualified Institutional Buyer 6,30,12,493 3.91
(e) Alternative Investment Fund 58,91,690 0.37
(2) Non-Institutions
(a) Bodies Corporate 15,63,34,062 9.71
(b) Individuals 9,92,98,579 6.16
(c) Clearing Members 21,58,302 0.13
(d) Foreign Nationals 757 0
(e) H U F 23,09,931 0.14
(f) I E P F 7,70,630 0.05
(g) NBFC 17,000 0
(h) Non Resident Indians (‘NRI’) 40,54,876 0.25
(i) NRI Non-Repatriable 22,86,078 0.14
(j) Trusts 1,03,03,583 0.64
Sub-Total 96,66,50,010 60.01
GRAND TOTAL (A+B) 1,61,07,65,867 100
nor form part of the promoter group of the Bank. However, post March 31, 2022, these five individuals have transferred the said six equity shares to the
beneficial owner of these shares i.e. BFHL. Consequently, these five individuals ceased to be the nominees of BFHL.
2. Equity Shares held by the Promoters are neither under pledge nor under lock-in.
Category-wise Shareholding
Non-Institutions Promoter and

27,75,33,798 Promoter Group
17.23% 64,41,15,857
39.99%
Institutions
68,91,16,212
42.78%
109
Market Price Data: High and Low during each month in the financial year 2021-22
Month NSE BSE
High (`) Low (`) Volume High (`) Low (`) Volume
Apr-21 364.80 301.70 14,24,63,069 364.85 301.85 89,72,903
May-21 330.00 278.70 23,07,52,779 329.35 278.60 1,12,48,755
Jun-21 354.35 300.00 13,37,09,528 354.10 300.00 65,50,708
Jul-21 332.40 290.55 10,08,26,930 332.30 290.70 63,36,463
Aug-21 310.95 259.25 14,43,49,015 310.70 259.40 99,15,897
Sep-21 301.35 274.45 8,65,50,212 300.95 274.50 52,14,149
Oct-21 348.30 279.20 19,23,45,409 348.15 279.30 1,22,91,780
Nov-21 318.90 266.85 19,26,12,891 318.85 266.80 81,96,322
Dec-21 289.00 229.55 13,46,92,490 289.00 229.65 62,62,974
Jan-22 327.50 249.20 22,85,23,690 327.35 249.30 1,06,75,564
Feb-22 331.75 287.50 11,47,29,919 331.60 287.65 48,06,247
Mar-22 313.50 249.00 23,86,67,666 313.30 249.00 91,41,117
Performance of the Bank’s Equity Shares as compared with NSE Nifty Index during the FY 2021-22
NIFTY 50 V/S BANDHAN BANK LIMITED
20000 350
300

15000 250
Nifty 50
200
10000
150
5000 100
50
0 0
Jun-21
Jul-21
Apr-21
May-21
Aug-21
Sep-21
Jan-22
Feb-22
Oct-21
Nov-21
Dec-21
Mar-22
Nifty 50 Bandhan Bank Limited
Performance of the Bank’s Equity Shares as compared with S&P BSE SENSEX during the FY 2021-22
BSE SENSEX V/S BANDHAN BANK LIMITED

70,000 350
60,000 300
50,000 250
BSE Sensex
40,000 200
30,000 150
20,000 100
10,000 50
0 0
Jun-21
Jul-21
Apr-21
May-21
Aug-21
Sep-21
Jan-22
Feb-22
Oct-21
Nov-21
Dec-21
Mar-22
BSE Sensex Bandhan Bank Limited
110
Performance of the Bank’s Equity Shares as compared with Nifty Bank Index during the FY 2021-22
NIFTY BANK V/S BANDHAN BANK LIMITED
40000 350

38000 300
36000 250
Nifty Bank
200
34000
150
32000 100
30000 50
28000 0
Jun-21
Jul-21
Apr-21
May-21
Aug-21
Sep-21
Jan-22
Feb-22
Oct-21
Nov-21
Dec-21
Mar-22
Nifty Bank Bandhan Bank Limited
Debenture Trustee Annual Secretarial Compliance Report

The SEBI LODR requires companies, which have listed their debt The Bank has obtained an Annual Secretarial Compliance Report,
securities, to disclose the names of their debenture trustees with in the format prescribed by SEBI, in terms of Regulation 24A(2)
contact details in their Annual Report. Your Bank was having Non- of the SEBI LODR, read with the SEBI Circular No. CIR/CFD/
Convertible Debentures (‘NCD’), listed on the BSE, which were CMD1/27/2019 dated February 08, 2019, from CS Anjan Kumar
redeemed on September 02, 2021. Therefore, the Bank was not Roy, Practicing Company Secretary (C.P. No.: 4557). The said
having any listed debt securities as on March 31, 2022. However, Report has been duly filed with the Stock Exchanges and has
the details of Debenture Trustee for unlisted NCDs are as under: been uploaded at the website of the Bank at www.bandhanbank.
IDBI Trusteeship Services Limited com.
Asain Building, Ground Floor, 17 R. Kamani Marg, Ballard Estate, Compliance Certificate
Mumbai, Maharashtra 400 001, India A Certificate from CS Anjan Kumar Roy, Practicing Company
Contact: 022-40807000, +91 7208822299, +91 85915855821, Secretary (C.P. No.: 4557), regarding compliance with the
022-66311776 conditions of Corporate Governance, as stipulated in SEBI LODR, is
Email: [email protected] annexed to this Report and forms part of the Annual Report.
Website: https://idbitrustee.com
The Certificate from the Practicing Company Secretary will be sent
Plant Locations to the Stock Exchanges along with the Annual Report of the Bank.
Being in the banking business, your Bank does not have any plant.
Certificate on Directors status
However, your Bank has 4,450 Banking Units and 1,189 Branches
None of the Directors of the Bank has been debarred or disqualified
as on March 31, 2022. The total number of ATMs as on March 31,
from being appointed or continuing as directors of companies
2022 was 471. The locations of the banking outlets are displayed
by the Securities and Exchange Board of India or the Ministry
on your Bank’s website.
of Corporate Affairs (‘MCA’) or any such statutory authority. A
Rating of Various Debt Instruments (As on March 31, Certificate to this effect from CS Anjan Kumar Roy, Practicing
2022) Company Secretary (C.P. No.: 4557) is annexed to this Report and
Details of rating of various debt instruments of your Bank for the forms part of the Annual Report.
financial year 2021-22 has been provided in the Board’s Report
Directors E-KYC
The MCA, vide amendment to the Companies (Appointment and
CEO and CFO Certification Qualification of Directors) Rules, 2014, has mandated KYC of all
The Managing Director & CEO and the CFO of the Bank give annual the Directors through the e-form DIR-3 KYC. All Directors of the
certification on financial reporting and internal controls to the ACB / Bank have complied with the aforesaid requirement.
Board in terms of Regulation 17(8) of SEBI LODR. The quarterly
certificates for all the quarters on financial results were also placed
Other Useful Information for Shareholders
1) Unpaid/Unclaimed Dividends
before the ACB / Board in terms of Regulation 33(2) of SEBI LODR.
Pursuant to provisions of Sections 124 and 125 of the
Secretarial Audit Report Companies Act, read with the Investor Education and
The Bank has obtained a Secretarial Audit Report, in Form MR-3, in Protection Fund Authority (Accounting, Audit, Transfer and
terms of Section 204 of the Companies Act and Regulation 24A(1) Refund) Rules, 2016 (‘IEPF Rules’), wherein any dividend
of the SEBI LODR, from CS Anjan Kumar Roy, Practicing Company declared by the Bank, which remains unclaimed or unpaid for
Secretary (C.P. No.: 4557). The details of the same have been a period of seven years from the date of transfer to Unpaid
provided in the Board’s Report, which forms part of this Annual Dividend Account of the Bank, is liable to be transferred to
Report. the Investor Education and Protection Fund (‘IEPF’).
111
Further, all the shares in respect of which dividend has not IEPF - 5 by them. Upon submission of e-verification report by
been paid or claimed for seven consecutive years or more your Bank, the IEPF Authority shall verify the documents as
shall also be transferred to the IEPF Authority. However, submitted by such shareholder and accordingly may approve/
the said requirement does not apply to shares in respect of reject such claim. In case, the aforesaid documents are not
which there is a specific order of Court, Tribunal or Statutory received within the timeline as specified above or incomplete
Authority, restraining any transfer of the shares. documents are received, your Bank would be bound to file
e-verification report for rejection of such claim.
Your Bank was incorporated on December 23, 2014. Since
inception, your Bank has declared dividend in its 4th, 5th In the interest of the shareholders, your Bank has sent
and 7th AGMs held in 2018, 2019 and 2021, respectively. reminders to the shareholders to claim their dividends/
Hence, your Bank is not required to transfer any unclaimed equity shares, three months before the due date for transfer
dividend amount to IEPF Authority. However, GRUH Finance to IEPF Authority. Notices in this regard are also published
Limited (‘GRUH’) amalgamated into and with your Bank with in the newspapers and the details of unclaimed dividends
effect from October 17, 2019 and in light of the aforesaid and shareholders whose shares are liable to be transferred
provisions, the equity shares issued by your Bank as against to the IEPF Authority, are available on the Bank’s website
the equity shares held by the shareholders of erstwhile under the investor relations section at https://bandhanbank.
GRUH and unclaimed dividend pertaining to such equity com/sites/default/files/2022-04/SE_IntimationLetter_
shares not claimed for seven consecutive years was required NewspaperPublication25042022.pdf.
to be transferred to IEPF during FY 2021-22. Accordingly,
The following tables gives information relating to unclaimed
such equity shares, in respect of which dividend has not
dividends and the dates by which they can be claimed by the
been claimed for seven consecutive years or more from
shareholders from the Bank:
the date of transfer to unpaid dividend account, have been
transferred to the demat account of the IEPF Authority. a. For shareholders of the Bank:
Further, the dividend that remained unclaimed for seven Financial Date of Declaration Last date for
years, has also been transferred to IEPF during FY 2021-22. Year of Dividend claiming Dividend
The details of unclaimed dividends and shares transferred to 2017-18 July 19, 2018 August 19, 2025
IEPF Authority during FY 2021-22 are as follows: 2018-19 June 28, 2019 July 29, 2026
2019-20 No dividend declared Not Applicable
Relevant Amount of unclaimed Number 2020-21 August 06, 2021 September 06, 2028
Financial dividend transferred of shares
Year (amt. in ₹) transferred b. For shareholders of erstwhile GRUH which has
2013-14 21,40,701 13,416 merged with the Bank:
The concerned shareholder who has a claim on the above Financial Date of Declaration Last date for
dividends/ shares may claim the same from IEPF Authority Year of Dividend claiming Dividend
by following the below-mentioned steps: 2014-2015 June 26, 2015 July 27, 2022
2015-2016 June 22, 2016 July 21, 2023
1. By making an application in web based Form IEPF-5 2016-2017 June 15, 2017 July 13, 2024
available at http://iepf.gov.in/IEPF/corporates.html 2017-2018 May 30, 2018 June 27, 2025
along with applicable fees; and
2018-2019 July 19, 2019 August 20, 2026
2. Sending the physical copy of such application duly
signed by all the joint holders {as per registered 2) Payment of Dividend through Electronic mode
specimen signature(s)} along with all the relevant In terms of Regulation 12 and Schedule I of SEBI LODR, every
documents enumerated in the aforesaid web based listed entity is required to mandatorily make all payments to
Form IEPF-5 to the Bank at its registered office or to shareholders, including Dividend, through any RBI approved
the RTA for verification of their claim; electronic mode of payments, viz., Direct Credit, Real Time
Gross Settlement (RTGS), National Electronic Fund Transfer
3. Shareholders may scan the whole set of documents
(NEFT), Electronic Clearing Service (ECS), National Automated
and send the same to the Bank by email at
[email protected] to enable quick Clearing House (NACH), etc. Your Bank would be entitled to
processing. use the bank account details of the shareholders available
with the Depository Participant to facilitate payment through
In terms of the provisions of the IEPF Rules, your Bank is electronic mode.
required to submit the e-verification report to the IEPF
Authority within 30 days from the date of filing of web-based Therefore, the Shareholders holding shares in demat mode
e-form IEPF-5. Accordingly, shareholders are requested are requested to update with their respective Depository
to submit the original documents complete in all respect Participants, core banking account number which is currently
pertaining to the claim made through e-form IEPF-5 to the Bank operative/active, including 9 digits MICR Code and 11 digits
or its RTA, at the address provided herein below, well before IFSC Code, E-Mail ID and Mobile No(s). Updation of E-mail
the prescribed timeline of 30 days, so as to enable us to file IDs and Mobile No(s). will enable sending communication
the e-verification report within 30 days of filing of such e-form relating to the credit of dividend, uncashed dividend, etc.
112
3) Information to Physical Shareholders

Compulsory Furnishing of Documents/Details:
As an on-going measure to enhance the ease of doing business for investors in the securities market, the SEBI, vide its Circular dated
November 03, 2021, read with Circular dated December 14, 2021, with subject ‘Common and Simplified Norms for processing
investor’s service request by RTAs and norms for furnishing PAN, KYC details and Nomination’ (‘SEBI Circular’), has mandated the
following:
• Furnishing of PAN, KYC details and Nomination by holders of physical securities;
• Compulsory linking of PAN and AADHAAR by all holders of physical securities; and
• Freezing of folios without valid PAN, KYC details and Nomination.
Actionable:
Subject Matter Action to be taken by Physical Shareholders
Compulsory Linking of Shareholders are requested to link their PAN with their AADHAAR number before March 31, 2023 or any
PAN with AADHAAR by other date, as may be specified by SEBI or any other regulatory authorities, so as to have valid PAN and
March 31, 2023 avoid freezing of their folio.
Compulsory furnishing In case any of these information/documents are not provided earlier, the holders of physical shares of
of the following: the Bank are required to furnish the same to the Bank’s RTA, KFin Technologies Limited, in the manner as
provided herein below:
Details to be provided Documents required Form for

furnishing details
• PAN Valid PAN Self-certified copy of PAN duly linked with
AADHAAR
• Contact details Contact Details: In case of change in address, self-certified copy

(Postal address (i) Postal Address with PIN; of the Postal address proof as per point no. C
with PIN, Mobile (ii) Mobile Number; (3) of Form ISR -1. It is compulsory to provide
number, E-mail (iii) E-mail Address Mobile number and E-mail ID.
address) Demat Account details, if available Client Master List (‘CML’) of your Demat
Account, provided by the Depository Participant.
Form No. ISR - 1
• Bank account Bank Account Details: • Self-certified copy of Bank passbook; or
details (bank (i) Name of Bank & Branch; • Bank Statement attested by Bank, in
name and (ii) Account Number; original; or
branch, bank (iii) IFS Code • Original cancelled cheque leaf, bearing the
account number, name of the shareholder printed on it
IFS code); and
Specimen Signature Banker’s attestation of the signature of the
[for shareholder whose specimen holder(s); along with:
• Specimen signature is not available with the • Original cancelled cheque, bearing the
Form No. ISR - 2
signature RTA or who wish to update their name of the shareholder printed on it; or
existing signature in the records of • Self-certified copy of Bank Passbook; or
the RTA] • Bank Statement attested by the bank
Nomination details Original copy of Nomination Form as provided in
[for shareholders who have not the Rule 19(1) of the Companies (Share Capital Form No. SH-13
registered any nominee] and Debentures) Rules, 2014
Change in Nomination Original copy of Variation of Nomination Form
[for shareholders who have as provided in the Rule 19(9) of the Companies
Form No. SH-14
registered nominee(s), but, they (Share Capital and Debentures) Rules, 2014
wish to change/alter the same]
Declaration to opt-out nomination In case the holder does not wish to nominate
• Nomination [for shareholders who have not any person, then the ‘Declaration to Opt-out’,
Form No. ISR - 3
registered any nominee and who shall be furnished in original
do not wish to have any nominee]
Cancellation of nomination • Original copy of Cancellation of
Form No. SH-14
[for shareholders who have Nomination Form as provided in the Rule
registered nominee(s), but, who no 19(9) of the Companies (Share Capital and
longer wish to have any nominee] Debentures) Rules, 2014; and
• Form for ‘Declaration to Opt out’ is also Form No. ISR - 3
required to be submitted
113
Issue of Securities in DEMAT Form Only:
As an ongoing measure to enhance the ease of dealing in securities market by the investors, the SEBI, vide its Circular dated January
25, 2022, has mandated that the listed companies shall henceforth issue the securities in dematerialized form only while processing
the following service request:
Nature/Details of Request Required Form

Issue of duplicate securities certificate
Claim from Unclaimed Suspense Account
Renewal / Exchange of securities certificate ISR – 4
Endorsement
Sub-division / Splitting of securities certificate (along with relevant
Consolidation of securities certificates/folios documents)
Transmission
Transposition
Note:
• SEBI has mandated that request for effecting transfer of securities shall not be processed unless the securities are held in
dematerialized form with a depository;
• Similarly, transmission or transposition of securities held in physical or dematerialized form and other service requests, as
aforesaid, shall be effected only in dematerialized form.
4) Total fees for all services paid by your Bank to the statutory auditor and all entities in the network firm/network
entity of which the statutory auditor is a part
Your Bank did not have any subsidiary as on March 31, 2022. The fees paid to Deloitte Haskins & Sells and M. M. Nissim & Co. LLP,
Chartered Accountants, Joint Statutory Auditors of the Bank for FY 2021-22 is as under:
Nature of Services Amt. in ` Crores

Audit Fees 0.97
Certification and Other Fees to Auditors 0.62
Tax Audit Fees 0.09
Others 0.30
TOTAL 1.98
At the 7th AGM of the Bank, the Shareholders while approving the remuneration of the Joint Statutory Auditors have given the
power to the ACB / Board to alter and vary the terms and conditions of appointment and remuneration, including allocation of
overall audit fees between the Joint Statutory Auditors depending upon their respective scope of work and/or by reason of necessity
on account of conditions as may be stipulated by the RBI and / or any other authority, in such manner and to such extent as may
be mutually agreed between the Bank and the said joint Statutory Auditors. Further, it was also mentioned that the remuneration
paid to the Statutory Auditors will be disclosed in the Report on Corporate Governance as well as the Annual Financial Statements
of the Bank.
Accordingly, the fees paid to the Joint Statutory Auditors have been reviewed and approved by the Audit Committee of the Board of
the Bank under the power given by the Shareholders and disclosed hereinabove as well as notes to the annual financial statement
5) Equity Shares in the Suspense Account
In terms of Regulation 39(4) read with Schedule VI of the SEBI LODR, the details of Equity shares lying in the suspense account are
given below, which includes the equity shares issued by the Bank pursuant to the amalgamation of GRUH with the Bank against
shares lying in the suspense account of erstwhile GRUH in terms of share exchange ratio:
Particulars No. of cases No. of shares

Aggregate number of shareholders and the outstanding shares as on April 01, 2021 290 4,17,915
Shareholders who approached the Bank for transfer of shares during the financial year 2 3,976
Shareholders to whom shares were transferred during the financial year 2 3,976
Shareholders whose shares are transferred to the demat account of the IEPF Authority as 0 0
per Section 124 of the Companies Act
Aggregate number of shareholders and the outstanding shares as on March 31, 2022 288 4,13,939
114
The voting rights on the equity shares lying in the suspense account as on March 31, 2022 shall remain frozen until the rightful owner
claims such shares.
6) Green Initiative in Corporate Governance
In furtherance of the ‘Green Initiative in Corporate Governance’ initiated by the MCA, the Bank once again requests all the
shareholders, holding shares in dematerialised form and who have not yet registered their e-mail address, to register their e-mail
address with the Bank for receiving notice/documents including Annual Report in electronic mode through their concerned
Depository Participants. Shareholders who hold shares in physical form and who have not yet registered their e-mail address are
requested to register their e-mail address with KFin Technologies Limited, RTA of the Bank.

Anup Kumar Sinha

Date: July 13, 2022 (DIN: 08249893)
Declaration as prescribed under Para D of Schedule V to the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015
I confirm that for the financial year ended March 31, 2022, the members of the Board of Directors and Senior Management Personnel
have affirmed compliance with the provisions of the Bank’s Code of Conduct for Board of Directors and Senior Management, respectively.
Chandra Shekhar Ghosh

Place: Kolkata Managing Director & CEO
Date: June 15, 2022 (DIN: 00342477)
115
CERTIFICATE ON CORPORATE GOVERNANCE
[Pursuant to Clause E of Schedule V to the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015]
To
The Members
DN-32, Sector-V, Salt Lake
Kolkata – 700091
A. We have conducted an audit of compliance of corporate governance norms and procedures by Bandhan Bank Limited (CIN:
L67190WB2014PLC204622), having it’s registered office at DN-32, Sector-V, Salt Lake, Kolkata – 700091 (here in after referred
as “the Bank”) during the Financial Year ended March 31, 2022 pursuant to the provisions of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, read with other applicable provisions of law during the aforesaid period.
B. That our audit is an independent audit of compliance of corporate governance norms and procedures as maintained by the Bank.
That compliance of corporate governance norms and procedures is the responsibility of the Bank. That our audit is neither an
opinion on financial statements of the Bank nor on future viability of the Bank or on effective management of the Bank.
C. In our opinion and to the best of our understanding, based on the records, documents, books and other information examined by
us during the aforesaid audit, we confirm that the Bank has complied with the corporate governance norms and procedures, as
referred above and to the extent applicable to the Bank, during the aforesaid period under scrutiny.

Company Secretaries
ANJAN KUMAR ROY

Proprietor
FCS No. 5684
CP. No. 4557
116
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

[Pursuant to Regulation 34(3) and Schedule V, Para C, Clause (10)-(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
To
The Members
DN-32, Sector-V, Salt Lake
Kolkata-700091
We have examined the relevant registers, records, forms, returns and disclosures from the Directors of Bandhan Bank Limited having
CIN: L67190WB2014PLC204622 and having registered office at DN-32, Sector-V, Salt Lake, Kolkata – 700091 (here in after referred to
as ‘the Bank’), produced before us by the Bank for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read
with Schedule V, Para-C, Clause 10(i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
In our opinion and to the best of our information and according to the verification [including Directors Identification Number (hereinafter
referred to as ‘DIN’) status at the portal www.mca.gov.in] as considered necessary and explanations furnished to us by the Bank and its
officers, we certify that none of the Directors on the Board of the Bank, as stated below for the Financial Year ended on March 31, 2022
have been debarred or disqualified from being appointed or continuing as Director of companies by the Securities and Exchange Board of
India or Ministry of Corporate Affairs or any such statutory authority.
Sl.No. Name of Director DIN Date of appointment in

the Bank
1 Dr. Anup Kumar Sinha 08249893 January 07, 2019
2 Mr. Chandra Shekhar Ghosh 00342477 December 23, 2014
3 Mr. Vijay Nautamlal Bhatt 00751001 May 08, 2020
4 Mr. Narayan Vasudeo Prabhutendulkar 00869913 May 08, 2020
5 Mr. Snehomoy Bhattacharya 02422012 July 09, 2015
6 Dr. Allamraju Subramanya Ramasastri 06916673 August 08, 2018
7 Mr. Suhail Chander 06941577 March 19, 2021
8 Mrs. Thekedathumadam Subramani Raji Gain 07256149 August 06, 2015
9 Mr. Santanu Mukherjee 07716452 January 07, 2019
10 Mr. Subrata Dutta Gupta 08767943 March 19, 2021
11 Dr. Holger Dirk Michaelis 07205838 February 12, 2016
12 Mr. Ranodeb Roy* 00328764 July 26, 2016
*Ceased to be the director of the Bank with effect from May 11, 2022
Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the management of the Bank.
Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to future viability
of the Bank nor of the efficiency or effectiveness with which the management has conducted the affairs of the Bank.

Company Secretaries
ANJAN KUMAR ROY

Proprietor
FCS No. 5684
CP. No. 4557
117
Annex - 5
Management Discussion & Analysis Report

A. Global and Indian Economic Scenario quarter low, reflecting impact of Omicron wave on
1. Global Economy – Turbulent Times manufacturing and contact intensive services. As
a. Before the impact of COVID-19 pandemic could ease, per Monetary Policy Committee (‘MPC’) of Reserve
the global economy faces another set of threats – Bank of India (‘RBI’), the growth projected for
geo-political conflicts involving one of the major FY2022-23 is 7.2 per cent. with first quarter at 16.2 per
powers, surge in commodity prices and high inflation cent.; second quarter at 6.2 per cent.; third quarter
in a number of advanced and emerging economies. at 4.1 per cent. and fourth quarter at 4.0 per cent.
Financial markets and crude oil prices are experiencing Economic activity has experienced turbulence due to
high volatility with the latter jumping to a 14-year successive COVID-19 waves followed by geopolitical
high. According to the global composite purchasing situations in the continent.3
managers’ index (‘PMI’), supply chain pressures are b. In the sectoral growth analysis, agriculture remains
mounting leading to slowed output growth. unperturbed during national lockdown and had growth
b. International Monetary Fund (‘IMF’) projected in the last two financial years, continues to show
moderation in the world’s growth at 3.6 per cent. in similar growth of 3.0 per cent. during FY2021-22.
2022 from 6.1 per cent. in 2021. It is further expected to Manufacturing grew at 9.9 per cent. in the same period
slow down to 3.6 per cent. in 2023, which is conditionally against previous year contraction of 0.6 per cent.
estimated on factors such as improved global health Contact intensive sectors are on the path to normalcy,
outcomes, and higher vaccination rates. The uncertainty thus trade, hotels and transport showed growth of 11.1
about the trajectory of the pandemic and geopolitical per cent. during FY2021-224, which had experienced
tensions remain major challenges for near future.1 highest contraction during the pandemic.
c. The world is experiencing immediate shock, which is c. Consumer Price Index (‘CPI’) inflation stood at 6.9
expected to persist for relatively longer period emanating per cent. in March 2022. RBI, in its Monetary Policy
from recent developments i.e. the pandemic, war, Committee meeting of June 2022, revised the CPI
inflation, etc. Supply chain disruptions leading to global inflation projection to 6.7 per cent. for FY2022-23 with
inflationary pressure on Food and Energy prices may 7.5 per cent., 7.4 per cent., 6.2 per cent. and 5.8 per
increase financial stress and reduce global confidence. cent. during first, second, third and fourth quarter,
Subsequently, sanctions are hurting consumers directly respectively, of FY2022-23.5Inflation outlook faces risks
and hence, the growth is expected to be impacted. due to lingering war and sanctions, elevated oil and
commodity prices, prolonged supply chain disruptions,
d. As per the World Bank estimates, not all countries accentuated global financial market volatility in major
in the Asia Pacific region are equipped to sustain the economies and renewed waves of COVID-19 across
above shocks and hence growth prospects in 2022 countries. Wholesale Price Index (‘WPI’) stood at 14.6
for the region have been revised to 5 per cent. from per cent. in March 2022.
previously 5.4 per cent. which could further go down
d. Owing to higher expenditure and lower receipt
to 4 per cent. if situations worsen and national policies
during the pandemic, India’s fiscal deficit was 9.2
aren’t robust enough to handle the current scenario.2
per cent. of GDP during FY2020-21. It improved
e. To attain full economic recovery, international to 6.7 per cent. during FY2021-22 owing to higher
cooperation is most important among the economies. tax realisation. The tax receipts during the fiscal
Policymakers who respond to the situation at hand were ₹18.2 trillion against revised estimate (‘RE’) of
with the inclusion of sound health policies to end ₹17.7 trillion. Fiscal deficit is expected to further fall to
access disparities, climate policies, fiscal, monetary and 6.4 per cent. for FY2022-23 budget estimate (‘BE’).6
external policies as pivot are expected to fare better
e. Exports during FY2021-22 was US$ 417.8 billion but
than the others.
was outpaced by the imports at US$ 610.2 billion for
2. Indian Economy – the same period, leading to trade deficit of US$ 192.4
a. India’s real gross domestic product (‘GDP’) grew at 3 https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/
8.7 per cent. during FY2021-22, according to National MPR0804223897C8D9006C4981AEBA943DEDDD6F98.PDF
Statistical Office (‘NSO’), Growth during the quarter 4 https://economictimes.indiatimes.com/news/economy/
ended March 31, 2022 was at 4.1 per cent., a four indicators/gdp-grows-by-8-7-in-fy22-q4-gdp-slows-to-4-1/
articleshow/91914997.cms?from=mdr
1 https://www.imf.org/en/Publications/WEO/Issues/2022/04/19/ 5 https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/
world-economic-outlook-april-2022 PR3336416D60D22514022BC8C197A992D837C.PDF
2 https://openknowledge.worldbank.org/bitstream/ 6 https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/
handle/10986/37097/9781464818585.pdf MPR0804223897C8D9006C4981AEBA943DEDDD6F98.PDF
118
billion. As per preliminary data released by Ministry of 2. As per latest data from Microfinance Institutions
Commerce and Industry (‘MoCI’), share of petroleum Network (‘MFIN’), total gross loan portfolio (‘GLP’) of
imports in India’s total imports was 26 per cent. during microfinance industry stood at ₹2.85 lakh crore and
FY2021-22, of which the value of inbound shipments served 5.8 crore unique borrowers as on March 31,
nearly doubled up (94 per cent.) as compared to a year 2022. It showed an increase of 10 per cent. (Y-o-Y) over
earlier due to rise in global crude oil prices.7, 8 ₹2.59 lakh crore as on March 31, 2021. Banks, NBFC-MFI
and Small Finance Bank (SFB) contribute 40 per cent.,
f. In MPC meeting in April 2022, RBI kept the repo rate
35 per cent. and 17 per cent. of the total microfinance
under the liquidity adjustment facility (‘LAF’) unchanged
GLP, respectively. Regionally, East, Northeast and South
at 4.0 per cent. The central bank maintained the
account for 64.3 per cent. of the total portfolio. Tamil
accommodative stance though focused at withdrawal
Nadu stood as largest state followed by Bihar and West
of accommodation to support growth. The decisions
Bengal.12
are on the expected lines of the market to achieve
targeted inflation level of 4.0 per cent. within +2.0 per 3. Throughout the pandemic, Indian Banking Sector
cent. band along with focus on growth.9 remained resilient aided by policy initiatives from the
RBI and the Government. Initiatives like moratorium,
g. However, in the unscheduled MPC meeting in May
restructuring and higher capital & liquidity buffers
2022, the repo rate was raised by 40 basis points (‘bps’)
helped both, demand and supply of the credit, to
to 4.40 per cent., taking into account high geopolitical
remain afloat. Though the measures had sunset clause,
uncertainty, global price dynamics, and supply chain
its impact on bank’s balance sheets can only be tracked
disruptions. In June 2022 meeting, MPC further raised
at a later stage.
the policy rate by 50 bps to 4.90 per cent. and withdrew
the accommodative stance of monetary policy. 4. As per Financial Stability Report by RBI, the gross non-
performing asset (‘GNPA’) ratio of Scheduled Commercial
h. Money supply (M3) and bank credit by commercial
Banks (‘SCBs’) improved to six year low of 5.9 per cent.
banks rose (Y-o-Y) by 8.7 per cent. and 9.6 per cent.,
in March 2022 from 7.4 per cent. in March 2021. The
respectively, as at end-March, 2022. India’s foreign
provisioning coverage ratio (‘PCR’) improved to 70.9 per
exchange reserves increased by US$ 30.3 billion to US$
cent. in March 2022 from 67.6 per cent. in previous year
607.3 billion in FY2021-22.10
and Write –off ratio declined for the second successive
B. Indian Banking Sector : Key Developments year to 20.0 per cent. in FY2021–22. Stress test indicates
1. Non-food bank credit registered a growth of 9.7 per cent. that GNPA ratio of all SCBs may improve from 5.9 per cent.
in March 2022 as compared to 4.5 per cent. in March in March 2022 to 5.3 per cent. by March 2023 under the
2021. Credit growth to services sector accelerated to baseline scenario driven by higher expected bank credit
8.9 per cent. in March 2022 as compared to 3.0 per growth and declining trend in the stock of GNPAs. The
cent. a year ago, mainly due to significant improvement outlook for the global economy is negatively impacted
in credit growth to NBFCs and robust credit offtake by considerable uncertainty because of the geopolitical
in ‘trade’ and ‘transport operators’. Personal loans tension, front-loaded monetary policy normalisation by
segment continued to expand at a robust rate and grew central banks in response to persistently high inflation
by 12.4 per cent. in March 2022 from 10.7 per cent. in and multiple waves of the COVID-19 pandemic. SCBs as
March 2021.11 well as non- banking financial institutions (NBFCs) would,
however, have sufficient capital, both at the aggregate
Sector Growth and individual levels, even under stress conditions.13
March March
2022 2021 A. Advantage India:
Agriculture & allied activities 9.9% 10.5% While the Indian economy of late faced several headwinds
triggered by the COVID-19 pandemic and enhanced
Industries 7.1% 0.4%
geopolitical tension, the economy and the banking sector
i. Micro and small 21.5% 3.9% continue to enjoy several long-term structural strengths.
ii. Medium 71.4% 34.5%
1. Robust Demand – Increase in the working population
iii. Large 0.9% -2.5% with rising income levels is poised to lead to higher
Services 8.9% 3.0% demand of financial services. Housing and personal
finances will remain key to such demand growth. The
7 https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/ Indian fintech market is expected to grow significantly
MPR0804223897C8D9006C4981AEBA943DEDDD6F98.PDF
8 https://www.business-standard.com/article/economy-policy/ in the coming years. Investments, including
trade-deficit-widens-to-192-billion-in-fy22-imports-at-record- infrastructure, remain the other key source of demand
high-122040500051_1.html#:~:text=India’s%20merchandise%20 growth in the coming years.
import%20in%20March,March%202022%20was%20%2418.69%20billion.
9 https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51683 12 https://mfinindia.org/assets/upload_image/news/pdf/Micrometer%20
10 https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53537 Q4%20FY%2021-22%20Press%20Release-converted.pdf
11 https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/ 13 https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/
PR133E2F1C2701A644D628D37620D83817605.PDF PR441FSRA6BCD500F0D74181AF17220A741E38E4.PDF
119
2. Innovation – Internet and mobile penetration, along a. Strong credit underwriting, risk management
with extended financial services at ATM stations are practices and faster turnaround time have been
widely deployed to improve operational efficiency. A differentiating factors for several private banks to
large unbanked population offers large opportunity for gain market share.
innovation in banking practices.
3. Differential credit growth in Rural & Semi-urban and
3. Policy Initiatives – Setting up of National Asset Metropolitan & urban areas:
Reconstruction Company Limited (‘NARCL’),
a. The credit growth has been faster in rural and
amendment of Banking Regulation Act to deal with
semi-urban areas at 12.1 per cent. and 11.7 per
NPAs, merger of banks to create a larger and robust
cent., respectively, from FY2020 to FY2022 as
entity, various government schemes (Pradhan Mantri
compared to 10.9 per cent. and 5.1 per cent. in
Suraksha Bima Yojana, Pradhan Mantri Jan Dhan Yojana,
urban and metropolitan areas, respectively.
Pradhan Mantri Jeevan Jyoti Bima Yojana and Capital
Infusion Scheme) and focus on Financial Inclusion have b. Economic slowdown and COVID-19 pandemic
taken banks and formal financial services to a larger induced lockdown impacted the metropolitans
section of the country. more adversely while several rural activities
4. Central Bank Digital Currency (‘CBDC’) - In the latest including agriculture remained afloat; evidently
budget, its mention indicates the shift government is from the GDP growth in agriculture during the
considering for transactions in future. Over time, CBDC lockdown period.
may provide a safe, more robust entities, convenient 4. Retail Assets are leading the growth story of advances:
alternative to physical cash. Depending on various
a. From FY2020 to FY2022, retail assets products
design choices, it can also assume the complex form of
a financial instrument. grew at 16.1 per cent., out of which consumer
durables led the growth at 27.5 per cent. followed
5. Open Banking Framework (‘OBF’) - Adoption of OBF by credit cards, personal vehicles and housing
to allow authorised third parties to access customers’ loans at 16.0 per cent., 14.6 per cent. and 14.0
data, with the explicit consent of the latter. It would per cent., respectively.
benefit into convenient access to financial data and
services to consumers as well as cost optimization for b. Engineering goods loan, commercial auto &
financial institutions. On the other hand, concerns auto components loans were muted (negative
about data privacy and security, customer grievance growth) during same period, owing to slowdown
redressal, cybersecurity and operational risks, in economic as well as construction activities due
compliance and regulatory risks need to be carefully to lockdown.
addressed to develop a safe and secure ecosystem. 5. Deposits in SCBs grew at 10.4 per cent. during from
6. Green Finance - RBI is actively involved in researches on FY2020 to FY2022. Growth in urban and metropolitan
the areas like, impact on macroeconomic variable and stood a notch higher than that in rural and semi-urban
green finance. A ‘Sustainable Finance Group’ (‘SFG’) areas. Share of deposits in private sector banks showed
was set up in the RBI to coordinate with other national an upward tick from 29 per cent. on March 31, 2019 to
and international agencies on issues relating to climate 31 per cent. on March 31, 2022:
change. The group would be instrumental in suggesting a. Similar to growth in market share of advances,
strategies and regulatory framework, which could be deposits market share also follows the suit.
prescribed for banks and other regulated entities.
b. Private sector banks have increased their reach in
B. Key Trends – tier II and tier III cities and realized economies of
1. The growth in aggregate lending for SCBs moderated in scale. Increased urbanization, growth in economy
from FY2020 to FY2022, at 7.3 per cent. while it grew at and formalization has benefited private sector
11 per cent. in from FY2013 to FY2019: banks.
a. The main driver for dip in lending growth from C. Threats –
FY2020 to FY2022, has been Public Sector Banks, 1. In recent years, the highly transmissible coronavirus
which grew at only 4.9 per cent. owing to high
posed considerable risks for global financial and
GNPAs and RBI restrictions. GNPA of PSBs stood
commodity markets. A future variant of coronavirus
at 7.6 per cent. as on March 2022.
could potentially be one risk, including possibility of the
b. The private banks from FY2020 to FY2022, grew emergence of vaccine-resistant COVID-19 variants.
at 11 per cent., i.e., half the growth from FY2013
2. Supply chain disruptions have played a key role in
to FY2019, at 21 per cent.
disrupting global recovery of late. Shipping snarls along
2. Credit market share of private banks increased from 34 with a shortage of shipping containers, and a steep
per cent. on March 31, 2019 to 38 per cent. on March rebound in demand once pandemic-related restrictions
31, 2022: were eased, have left producers scampering for
120
components and raw materials. While there are signs innovative financial solutions in a courteous and responsible
that supply shortages are easing with a drop in shipping manner. It intends to create value for all stakeholders through
costs and a rise in chip exports, experts expect the a committed team, robust policies and superior systems and
supply bottlenecks to continue weighing on growth, technology while continuing to be a bank for all.
well into next year.
The Bank’s Vision 2025 lays down the following objectives –
3. The raw material and input shortages, along with higher 1. Be a banker for the new Indian, through every step of
energy prices, have pushed inflation in the Eurozone their aspiration journey
and the United States to multi-decade highs. This has
spooked global investors who fear that central banks 2. Serve the needs of emerging India
would further raise interest rates to tame soaring prices. 3. Enable entrepreneurs to grow bigger
4. Fintech captured the consumer’s affinity towards digital 4. Be a value-based ‘employer of choice’ – to attract high-
technology early on and have forced the traditional quality, motivated talent
players to rejig their business model.
In order to drive this vision of your Bank, the following would
D. Outlook – be the key focus areas in the coming years –
1. According to RBI’s latest forecast, India’s real GDP will
• Diversification of asset portfolio with modern
likely grow at 7.2 per cent. IMF revised its expectation
underwriting and collection capabilities
for India to grow at 8.2 per cent. in FY2022-23 from its
earlier estimates of 9.0 per cent. • Strengthening people capabilities, including hiring of
fresh talent, for growth
2. The global economic scenario has been hit due to
• Development of in-house technology, analytics and
geopolitical conflict. Consequently, price rise created
digital capabilities
inflationary pressure across advanced and emerging
economies. To curb this rising inflationary pressure, • Consolidate Current and Savings Account (‘CASA’) by
several central banks have stated their stance on developing deeper customer engagement leveraging
tightening the monetary policy. Similarly, RBI’s move to digital and analytics
hike the interest rate by 90 bps to 4.90 per cent. during Given the huge untapped opportunity in the financial
May-June, 2022 will increase the borrowing cost for services space in India, your Bank in the medium term
industries and individuals, hence, the liquidity will be will continue to expand its current geographic reach and
reduced from the economy resulting in slowing down increase its presence in the underbanked areas across the
of economic recovery rate post COVID-19 pandemic. country. Your Bank will leverage its microcredit experience.
Your Bank will also utilise the skills and expertise of erstwhile
3. India’s underlying economic fundamentals are strong
GRUH Finance to penetrate strongly into the affordable
and despite the short-term turbulence, the impact on
housing segment. The Small and Medium Enterprises (‘SME’)
the long-term outlook is expected to be marginal. The
segment is expected to contribute strongly to the growth
results of growth-enhancing policies and schemes (such
story with rising demand from the diverse business entities
as production-linked incentives and government’s push
in the country. Your Bank will further strengthen its focus on
towards self-reliance) and increased infrastructure
various segments of retail loans.
spending shall lead to a stronger multiplier effect
on jobs and income, higher productivity and more As part of its strategy, your Bank has been a part of various
efficiency – all leading to accelerated economic growth. social development programmes on enhancing education,
Furthermore, the emphasis on manufacturing in India, health, poverty alleviation, livelihood promotion, market
various government incentives such as lower taxes linkages, enterprise development, employment generation
and rising services exports on the back of stronger and financial literacy. Going forward, your Bank will
digitization and technology transformation drive across continue to engage with the community through strategic
the world is expected to aid in growth. interventions aimed at contributing to society.
4. Also, several spill over effects of geopolitical conflicts Since its inception, your Bank has transformed with each
could enhance India’s status as a preferred alternate milestone, to become better and stronger. As a universal
investment destination. Global in-house centres and Bank and in all its previous avatars, each transformation
multinationals, for instance, may prefer India over resulted in further broad-basing of services, growth and
Eastern European markets (especially those that share increased impact on people and communities. As the Bank
border with Ukraine) to shift their current operations is about to commence its eighth year of operations, your
or open new facilities. On the health front, a large, Bank continues to evolve focusing on serving the needs of
vaccinated population will likely help contain the emerging India and to be the banker for the new Indian,
impact of subsequent COVID-19 waves, if any. through every step of their aspiration journey.
C. Strategy Your Bank is committed to executing its strategy ensuring
Your Bank has clearly laid out its vision to be an affordable professional integrity, corporate governance and ethical
financial institution by providing simple, cost-effective and standards, and all legal and regulatory compliance.
121
D. Financial Performance of the Bank
The financial highlights for the financial year under review are presented below:
Summary of Financial Performance (` in crore)
Particulars For the financial year ended
March 31, 2022 March 31, 2021
Deposits: 96,330.62 77,972.22
Advances (Net): 93,974.92 81,612.88
Total Assets/Liabilities 1,38,866.55 1,15,016.17
Net Interest Income 8,714.02 7,563.35
Non-Interest Income 2,822.82 2,022.25
Operating Expenses (excluding depreciation) 3,413.40 2,713.81
Profit before Depreciation, Provisions and Tax 8,123.44 6,871.79
Less: Depreciation 110.04 103.06
Less: Provisions 7,884.78 3,820.07
Profit before Tax (PBT) 128.62 2,948.66
Less: Provision for Tax 2.83 743.20
Profit After Tax (PAT) 125.79 2,205.46
Balance in Profit & Loss Account brought forward from previous year 6,171.00 4,758.71
Less: Appropriations 286.86 793.17
Balance carried over to Balance Sheet 6,009.94 6,171.00
EPS (Basic) (in `) 0.78 13.70
EPS (Diluted) (in `) 0.78 13.69
The financial performance of your Bank during the financial 13.24 per cent. in FY2020- 21. Return on Average Asset
year ended March 31, 2022, remained healthy with the Total (‘ROAA’) was 0.11 per cent. in FY2021-22 against 2.13 per
Net Revenue (Net Interest Income Plus Other Income) rising cent. in FY2020-21. Your Bank’s basic earnings per share
by 20.36 per cent. to ₹11,536.84 crore from ₹9,585.61 crore (‘EPS’) decreased from ₹13.70 in FY2020-21 to ₹0.78 in
in the previous financial year. Net Interest Income grew by FY2021-22 whereas diluted EPS decreased from ₹13.69 in
15.22 per cent. to ₹8,714.02 crore. The net interest margin FY2020-21 to ₹0.78 in FY2021-22.
(‘NIM’) was 8.2 per cent. during FY2021-22 against 7.8 per
However, reflecting on steady growth in the balance sheet,
cent. during the FY2020-21.
Total Liabilities (including capital and reserves) increased by
Other Income grew by 39.61 per cent. to ₹2,822.82 20.74 per cent. from ₹1,15,016.17 crore as on March 31,
crore. Major increase is due to processing fees and bad 2021 to ₹1,38,866.55 crore as on March 31, 2022 whereas
debts recovery. Income from treasury-related activities Total Advances (Net) stood at ₹93,974.93 crore, a growth
increased to ₹277 crore during FY2021-22 from ₹223 crore of 15.15 per cent. over FY2020-21. Total Business of your
during FY2020-21, primarily due to profit from the sale of Bank increased to ₹1,95,669 crore (Gross Advances: ₹99,338
investments. crore and Deposits: ₹96,331 crore as on March 31, 2022)
Operating (Non-Interest) Expenses increased to ₹3,523.44 from previous year of ₹1,65,015 crore (Gross Advances:
crore from ₹2,816.89 crore during FY2021-22. Infrastructure ₹87,043 crore and Deposits: ₹77,972 crore) as on March
and staffing expenses contributed to 25.08 per cent. of this 31, 2021. However, due to various initiatives taken by the
increase. During the FY under review, your Bank has set Governments to support the economy and easing out of the
up 42 new branches and 287 new Banking Units. Employee impact of pandemic on the lives of customers, your Bank has
strength increased to 60,211 during FY2021-22 from 49,445 seen best ever quarterly performance during the quarter
as on March 31, 2021. Staff expenses also went up due ended March 31, 2022 backed by robust all round operating
to annual wage revisions and there was a 21.77 per cent. performance and lower credit costs.
increase in staff strength. Consequently, the Cost to Income Priority Sector Lending and Investment
Ratio increased slightly to 30.5 per cent. from 29.4 per cent. RBI has mandated Priority Sector Lending (‘PSL’) of 40 per
in FY2020-21. cent. of advances for all the banks. Your Bank continues to
The profit after tax (‘PAT’) for FY2021-22 stood at ₹125.79 focus on financial inclusion by providing various financial
crore, a decrease of 94.3 per cent. over the previous services to the underserved. During FY 2021-22, your
financial year due to higher provisioning. The Total Bank’s PSL was ₹56,397.10 crore as on March 31, 2022 as
Provisions and Contingencies (including tax provisions) compared to ₹74,369.51 crore (net of IBPC of ₹2,124.13
was ₹7,887.61 crore as compared to ₹4,563.27 crore in crore) as on March 31, 2021. At the end of FY 2021-22, PSL
FY2020-21. Consequently, the Return on Average Net as a proportion of the gross advances of ₹98,790.70 crore
Worth (‘ROANW’) was 0.76 per cent. in FY2021-22 against was 57 per cent.
122
Key Ratios 2. Samriddhi Loan: Loan to fund growing business needs

Particulars FY 2021-22 FY 2020-21 of existing EEB customers. Loan size is from ₹75,000
Fee to total income 16.91% 14.41% to ₹3,00,000. However, this product has since been
Cost to income 30.54% 29.39% discontinued.
Earnings per share# ₹ 0.78 ₹ 13.7 3. Micro Baazar Loan: With a loan size from ₹26,000
Book value per share ₹ 100.14 ₹ 106.47 to ₹1,50,000, this product is for small entrepreneurs,
Return on average assets# 0.11% 2.13% who have an existing super-saver account with your
Return on average net worth# 0.76% 13.24% Bank. This loan provides financial support to deposit
Operating Profit to Average 6.76% 6.63% customers for their working capital needs.
Total Assets
4. Micro Home Loan: Your Bank offers Micro Home Loan
Net Interest Margin 8.17% 7.78%
ranging from ₹1,00,000 to ₹10,00,000 to existing EEB

#
The Bank has made additional provisions against the existing NPA borrowers for construction as well as renovation of
accounts resulting from elevated risk observed in certain geographies their houses so that their dream of own house doesn’t
and potential impact of COVID-19 pandemic on certain loan portfolios. remain unfulfilled.
E. Business Segment-wise Performance 5. Two-wheeler Loan: Your Bank offers two-wheeler

1. Emerging Entrepreneurs Business (‘EEB’) loans ranging from ₹30,000 to ₹1,20,000 to existing
EEB borrowers. It brings them a step closer to their
Your Bank now has EEB loans in the following 11 categories to
aspirations.
cater to the varied demands of the customers in a desirable
way:- Transforming lives of customer at ground level has been
the driving force of your Bank. Migration of customers from
EEB loan (Group loans)
existing group loans to individual loans to increase the share of
1. Suchana Loan: Timely funds to start a new business
individual business loans in EEB overall portfolio and extending
or grow an existing one. Loan size is from ₹1,000 to
new product offerings such as Sahayata Loan, Two Wheeler
₹25,000. However, this product has since been
Loan, Micro Home Loan as per their changing requirements
discontinued.
are some of the strategic objectives of your Bank.
2. Srishti Loan: Loan to scale up home-based business.
2. Commercial Banking
Loan size is from ₹26,000 to ₹1,50,000. Small Enterprise Loan (‘SEL’)
3. Subriddhi Loan: Loan amount upto 50 per cent. of the SEL is a unique business loan product for small entrepreneurs.
disbursement amount of running primary loan. It is These are affordable loan products for meeting the credit
sanctioned to help customers fulfil their extra business needs of entities having income generating activities in the
form of working capital or assets creation for business or
requirement during their ongoing loan.
short-term business requirements.
4. Samadhaan Loan: Loan from ₹5,000 to ₹15,000 to
Your Bank has taken various initiatives over the last year
support existing EEB borrowers by providing liquidity
to tap into this segment. These include enhancement of
support to their businesses during pandemic.
maximum limit of the loan amount from ₹10 lakh to ₹25 lakh
5. Suraksha Loan: Loan size is up to ₹15,000 and is and smoothening the file processing by delegation of the
sanctioned to help existing customers meet their sanctioning power to regions, among others.
emergency expenses e.g., medical, drinking water and SEL has accounted for a total book size of ₹4,468 crore as
sanitation. on March 31, 2022 as against ₹3,095 crore as on March 31,
6. Sushiksha Loan: Loan size is up to ₹10,000 and is 2021, registering a growth of 44 per cent. during FY2021-22.
sanctioned to help customers meet expenses towards Small & Medium Enterprises Loan (‘SME’)
the education of their children. The SME business under Commercial Banking focuses on
secured loans with a ticket size of more than ₹10 lakh, which
Your Bank help enhancing banking abilities to achieve the
are extended to business entities (including SMEs & Mid-
dreams and achievements of borrowers at the bottom of the
sized corporates) involved in manufacturing, trading and
pyramid for their development and transformation.
services through products designed to cater to their specific
During FY2021-22, your Bank opened 287 new Banking business needs.
Units. The growth of 6.95 per cent. in the aggregated EEB
The range of major products offered includes fund-based
asset portfolio from ₹58,346 crore to ₹62,399 crore during
facilities such as cash-credit, term loans, overdrafts, demand
FY2021-22, is another indicator of its commitment.
loans and non-fund based facilities, such as, bank guarantees
Small Business and Agri Loans (SBAL) and inland letter of credit. Your Bank is at advanced stage
1. Sahayata Loan: Loan to fund growing business needs of implementation of applications such as cash management
of existing EEB customers. Loan size is from ₹51,000 to and trade services to expand the service offering to its
₹2,00,000. commercial clients.
123
The SME book was at ₹2,253 crore as on March 31, 2022 and metropolitan regions, as well as to further diversify the
as against ₹1,504 crore as on March 31, 2021, registering a presence across the country.
growth of about 50 per cent. during FY2021-22.
Your Bank’s deposit book grew by 23.5 per cent. during
Non-Banking Financial Company (‘NBFC’) and NBFC- FY2021-22. Retail deposits at 77.3 per cent. of the total
Microfinance Institutions (‘MFIs’) deposits indicate that your Bank has been able to reduce its
The NBFC-MFI lending business vertical lends to Micro funding through bulk term deposits. Your Bank’s CASA book
Finance Institutions, Societies and Trusts engaged in remains strong at 41.6 per cent. at the end of the FY2021-22.
microfinance activities. While most of these loans are
extended as Term Loans, your Bank also has credit exposure (` in crore)
through Direct Assignments. Leveraging its rich experience Type of deposit As at March 31
in micro banking, your Bank has developed an internal credit 2022 2021
rating model to assess the credit risk while lending to this
Total 96,331 77,972
segment.
Current account 5,462 4,567
The NBFC lending vertical lends to all NBFCs, other than
MFIs/Society/Trust engaged in micro finance activities. This Savings account 34,617 29,260
vertical primarily deals with Term Loan products for on- Term deposits 56,251 44,145
lending purposes. Retail term deposit 34,362 27,606
The institutional book, comprising of lending to NBFCs and Bulk term deposit^ 21,890 16,539
NBFC-MFIs increased by 86 per cent., from ₹2,691 crore as ^ Term deposit of ` 2 crore and above
on March 31, 2021 to ₹4,999 crore (including TLTRO of ₹238
crore) as on March 31, 2022. 5. Third Party Products
3. Retail Assets Your Bank continues to have a keen focus on offering a
Retail Assets portfolio currently comprises Home Loan, Loan robust and comprehensive solution-based product suite for
Against property (‘LAP’), Gold Loan (‘GL’), Personal Loan its customers and is committed to generating the financial
(‘PL’), Two-Wheeler (‘TW’) Loan and Loan/Overdraft against well-being of all. In this endeavour, Third Party Products play
Term Deposits. The Retail Assets book stood at ₹25,219 crore a key role in building a product and process proposition to
as on March 31, 2022. holistically cater to the financial needs of its customers.
Your Bank has expanded its scope of housing finance and The total mutual fund AUM managed under your Bank’s
has started offering home loan products from 35 additional code during FY2021-22 was ₹527.07 crore earning an
bank branches as well during the year under review. Your income of ₹3.74 crore. A total of ₹166.04 crore and
Bank continues to focus on the affordable housing segment ₹439.60 crore of general and retail life insurance business,
and has tied up with various Government projects as well respectively, was garnered through the retail network
as projects in the private sector in the affordable housing during FY2021-22 earning a fee income of ₹19.76 crore
segment. Consequently, a majority of the housing loans are and ₹128.19 crore, respectively. During FY2021-22, the life
also eligible under the PSL category. As on March 31, 2022, insurance business through the existing arrangement in
your Bank is having a total Housing and LAP exposure of all asset verticals amounted to ₹1,298.55 crore earning an
₹23,560 crore constituting 24 per cent. of the total assets of income of ₹61.50 crore. Your Bank has distributed the co-
your Bank. branded credit cards and earned ₹0.06 crore as commission
during FY2021- 22.
During the financial year under review, the Gold Loan
portfolio was strengthened and is being offered from 419 Your Bank has also earned ₹0.32 crore as commission
branches across the country. Book size grew from ₹394 crore for distribution of Atal Pension Yojana, National Pension
to ₹503 crore, with 40,523 borrowers. System (NPS) Lite Swavalamban schemes of Pension Fund
Regulatory and Development Authority (PFRDA) and Others
The financial year under review, also saw the reintroduction
during FY2021-22.
of PL with a new credit framework and PL attained a book
size of ₹273 crore by registering a 200 per cent. growth over 6. Merchant Acquiring Business
the previous year book of ₹91 crore. It indicates your Banks’s During FY2021-22, your Bank installed 1,630 Electronic
commitment to diversification of its portfolio. Draft Capture – Point of Sale (EDC- PoS) terminals, and
transactions worth ₹5,374.19 crore were carried out on your
4. Liabilities
Bank’s installed terminals.
In building its liability business, the strategic focus of your
Bank has been on retail customers. During the year under 7. Digital Banking and Information Technology
review, your Bank set up 42 new bank branches. As a Digitalisation and innovation are two key strategic focus areas
result, the branch distribution network went up to 1,189 for your Bank to drive customer centricity, build productivity
branches during FY2021-22. The branch network covers & efficiency and attain scalability. Your Bank’s ability to cater
various geographies to maintain an appropriate balance to the 360-degree banking needs of its customers, through
among rural (banked and unbanked), semi-urban, urban both hi-touch and hi-tech modes offering relevant products
124
& services using its robust and secure digital channels, is one of compliance and governance and has placed controls
of the key imperatives for its growth. Your Bank continues and appropriate structure to ensure this. To safeguard the
to invest in upgrading the technology stack and leveraging independence, the performance evaluation of the Chief
emerging technologies and data analytics to enhance Compliance Officer (CCO) and the Chief Audit Executive
customer experience, deliver better value and improve (CAE) is carried out by the Audit Committee of the Board. It
operational efficiency. further reviews the effectiveness of controls and compliance
with regulatory guidelines. The Board of Directors confirms
As the economy recovers post-pandemic, we are witnessing
that there are internal controls in place with reference to the
digital natives rise up the bell curve from the “Early adopters”
Financial Statements and that such controls are operating
to the “Early majority” stage, which is indicative of the
effectively. Further details are provided under the ‘Internal
accelerated digital adoption onto our platforms and, to ensure
Financial Controls, Audit and Compliance’ section of the
it stays relevant and preferred, your Bank is accelerating its
Board’s Report.
Digital and IT transformation journey. During the financial
year under review, your Bank has been focusing on a set of G. Risks and Concerns
new initiatives to build a simple, smart, secure and seamless Your Bank is exposed to various risks by the very nature of
platform to bring convenience to its customers at just a few its business. Your Bank has put in place a comprehensive
clicks. Some notable product innovations in the Bank’s digital Enterprise wide Integrated Risk Management Framework
platforms include video-based account opening, fastag, supported by detailed policies and processes for
online mutual fund investment & insurance offering, digital management of Credit Risk, Market Risk, Liquidity Risk,
banking feature and experience enhancement, improving Operational Risk and various other risks. Please refer to
payment experience, among others. the section ‘Risk Management’ of the Board’s Report for
details.
While your Bank had been working towards onboarding
the best of the breed of applications as part of the IT H. Material Development in Human Resources
transformation, and building the new architecture for During the uncertain times that businesses have experienced
agility, flexibility and scalability, it has started development in the last two years, your Bank has focused on rapidly
of a completely new Internet and Mobile banking platforms transforming to adapt to the evolving environment. Your
to give an omnichannel experience to its users. The new Bank continues to attract high quality talent to drive growth
platform will offer industry-best features, an easy-to-use as well as further its transformation journey. Your Bank
and more engaging interface and the ability for the Bank to values people as its most precious assets and has dedicated
provide a personalised experience. efforts to achieve people centric goals. It has demonstrated
high standard of empathy through COVID-CARE support for
During FY2021-22, your Bank has has registered significant
its fast growing employee base of over 60,000 workforce.
uptick across all digital banking metrics. The number of
customers adopting digital banking platforms of your Bank During FY2021-22, your Bank increased its workforce
has grown by 77 per cent. over FY2020-21 customer base. strength by 22 per cent. or 10,766 employees taking the
total to 60,211 employees as on March 31, 2022. Since
F. Internal Control Systems and their Adequacy
inception, your Bank has increased its employee strength by
Your Bank has implemented robust internal controls across
224 per cent. to support growth ambitions and increase in
all processes and departments. These controls are driven
distribution.
through various well-defined policies and procedures, which
are reviewed periodically. Your Bank has a procedure of Your Bank is dedicated towards creating a workplace of
testing the controls at regular intervals for their design and resilience, where employees can relearn to excel and
operational effectiveness to ascertain the reliability and overcome this phase of turmoil and reimagine the future, for
authenticity of financial information. both themselves and the Bank. To provide an ideal platform
towards learning and self-growth, your Bank has promoted
Your Bank has an Internal Audit Department (IAD) and a
an aligned architecture.
Compliance department, which independently carry out the
evaluation of the adequacy of all internal controls. These • Your Bank has reshaped the approach towards
departments ensure that operation and business units managing employee life cycle and there has been
adhere to laid down internal processes and procedures as considerate amount of focus on digitalising to attract,
well as to regulatory and legal requirements. The IAD also on board and retain the talent.
proactively recommends improvements in operational
• Your Bank executed grade promotion process to
processes and service quality. Your Bank has put in place
nurture talent and elevated 14,003 employees to
extensive internal controls including audit trails, appropriate
the next grade during FY2021-22. This exercise was
segregation of front and back-office operations, post-
conducted digitally and this was a source of motivation
transaction monitoring processes at the backend to mitigate
for employees amid the pandemic.
operational risks. It further ensures independent checks
and balances, and adherence to the laid down policies and • Your Bank has also created a Talent Funnel with the
procedures of your Bank that are in line with regulatory process of Role Elevation. This has further helped
guidelines. Your Bank has adhered to the highest standards in formulating succession planning for roles across
125
the Bank. A competency based assessment process A total of 1,252 employees were nominated for external
identified 5,115 employees for role elevation during training programmes across premier and reputed institutes
FY2021-22. including NIBM, Moody’s Analytics, IBA, CAB, Institute of
Internal Auditors, among others.
• The Human Resource team in coordination with the
business teams has adopted various Digital processes Culture of Ethics
and platforms such as Bandhan Express, multiple LOS The Code of Conduct and Ethics (‘Code’) articulates your
to improve employee experience and focus on higher Bank’s commitment to conduct business in accordance
productivity. with the highest ethical standards and in compliance with
all applicable laws, rules and regulations. At Bandhan Bank,
• Your Bank has revamped the Retail Assets business
ethical behaviour is doing “what is right when no one is
model and to support this, 1,100+ employees were on-
watching”. Making it inseparable from honesty, integrity
boarded during FY2021-22 alone.
and good judgment, all employees follow the Code with
• Your Bank has always believed in hiring young talent a high degree of professional and ethical standards. Your
and nurturing it. It has on-boarded a sizeable portion Bank focused on sensitising and reiterating the Code and
of fresh bankers from the Nextgen Bankers programme conducted focused training for 18,000 employees on
and also from various business schools across the Business Ethics and over 46,000 employees on AML KYC
nation. during the year under review.
• Your Bank continued providing homecare facilities In the journey of over six years, your Bank has strengthened
towards COVID-19 affected employees, extending the its workforce by 3.2x resulting in an exciting blend of the
facilities towards 2,146 staff members and associated energetic new and experienced old workforce focussed
families during FY2021-22. Your Bank also ran COVID-19 towards a culture of professionalism, value driven growth
vaccination drives for employees based across regions and ethical governance.
and at its Head Office.
Human Resources has strategically focussed on a supportive
• Your Bank has appraised 40,000+ employees, amidst and collaborative work environment, remaining customer-
the disruption caused by the pandemic. Your Bank centric, performance driven and future ready.
stood strong with all its employees at the time of
I. Disclosure of Accounting Treatment
need by ensuring all eligible employees receive their
The financial statements have been prepared under the
performance based variable payout and increments.
historical cost convention and on the accrual basis of
• Your Bank upgraded its learning management systems accounting, unless otherwise stated and in complience
to a new-age learning experience platform, Bandhan with the requirements prescribed under the Third Schedule
Bank EDGE (Engage Develop Grow Excel), for providing (Form A and Form B) of the Banking Regulation Act, 1949.
an enhanced and fulfilling learning experience to all its The accounting and reporting policies of your Bank used in
employees. Employees can hereby learn through byte- the preparation of these financial statements conform to
sized lesson modules at their own pace, on the web Generally Accepted Accounting Principles in India (Indian
and mobile devices. GAAP), the guidelines issued by RBI from time to time,
Skilling for the Future & Talent Development the accounting standards notified under Section 133 and
Your Bank took a leap during the year under review in re- the relevant provisions of the Companies Act 2013, read
skilling & upskilling the workforce to prepare them for new together with the Companies (Accounts) Rules 2014 and the
challenges amidst challenging and ever-evolving operating Companies (Accounting Standards) Amendment Rules, 2016,
environment. The number of training programme batches as amended, from time to time, to the extent applicable and
increased by 105 per cent. as compared to the previous practices generally prevalent in the banking industry in India.
year and participation increased by 77 per cent. Your Bank
invested more than 1,60,000 man-hours in the upskilling and
reskilling of the workforce in classroom and virtual training. For and on behalf of the Board of Directors
3,483 training batches with over 90,000 participants in 100 Bandhan Bank Limited
programs saw us redefining the culture of governance,
enablement, engagement and learning in the Bank. Your Bank Anup Kumar Sinha
also continued its focus on building talent and capability in Place: Kolkata Non-Executive (Independent) Chairman
specialised areas of IT, Risk, Audit, Operations & Compliance. Date: July 13, 2022 (DIN: 08249893)
126
Annex - 6
Business Responsibility Report
[Pursuant to Regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015]
The Securities and Exchange Board of India (‘SEBI’) has mandated the top 1,000 listed entities, based on their market capitalization, to
include as a part of their annual reports, a Business Responsibility Report (‘BRR’) describing the initiatives taken by the listed entity from
an environmental, social and governance perspective, in the format as specified by the SEBI from time to time.
Based on the business responsibility and sustainability indicators contained in the National Voluntary Guidelines on Social, Environmental
and Economic Responsibilities of Business (‘NVGs’) issued in 2011 by the Ministry of Corporate Affairs (‘MCA’), SEBI vide Circular No. CIR/
CFD/CMD/10/2015 dated November 04, 2015, specified the format for the BRR.
However, on August 11, 2020, MCA issued the ‘Report of the Committee on BRR’, prescribing a new format for the Business Responsibility
and Sustainability Report (‘BRSR’) and made recommendations relating to its implementation.
On August 18, 2020, SEBI issued a consultation paper and proposed that the BRSR format, as recommended by the Committee on BRR
constituted by MCA, should be made applicable to the top 1,000 listed entities by market capitalisation.
On March 25, 2021, SEBI in its press release of the Board meeting announced that the new format shall be applied voluntarily for the
financial year 2021–22 and mandatorily from the financial year 2022-23, which was later incorporated in Regulation 34(2)(f) of Securities
and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’) vide amendment dated
May 05, 2021. The format for BRSR was prescribed by SEBI vide circular dated May 10, 2021.
Therefore, in terms of Regulation 34(2)(f) of the SEBI LODR, the Environmental, Social and Governance (‘ESG’) related disclosures of the
Bank are based on the existing version of the BRR format for the FY 2021-22.
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

1. Corporate Identification Number (CIN) of the Company L67190WB2014PLC204622
2. Name of the Company Bandhan Bank Limited
3. Registered Address DN-32, Sector – V, Salt Lake City, Kolkata – 700 091
4. Website www.bandhanbank.com
5. Email ID [email protected]
6. Financial Year Reported April 1, 2021 to March 31, 2022
7. Sector(s) that the Company is engaged in (industrial activity code-wise) Code: 64191
Bandhan Bank is a Banking Company governed by the
Banking Regulation Act, 1949
8. List three key products/services that the Company manufactures/ 1. Treasury
provides (as in the balance sheet) 2. Retail Banking
3. Wholesale Banking
9 Total number of locations where business activity is undertaken by the Company
(a) Number of international locations (Provide details of major 5) None
(b) Number of National locations As of March 31, 2022, the Bank has a network of 1,189
branches, 4,450 banking units and 471 ATMs in 34
States and Union Territories in India.
10. Markets served by the Company – Local/State/National/International National (pan India)
SECTION B: FINANCIAL DETAILS OF THE COMPANY
1. Paid up capital (₹ in lakhs) 1,61,076.59
2. Total turnover (₹ in lakhs) 16,69,394.28
3. Total profit after tax (₹ in lakhs) 12,579.40
4. Total spending on Corporate Social Responsibility (CSR) as a percent- CSR Spends – ₹78,42,67,506 (62%)
age of profit after tax (PAT) (%)
5. List of activities in which expenditure in 4 above has been incurred 1. Targeting the Hardcore Poor
2. Bandhan Education Programme
3. Bandhan Health Programme
4. Employing the Unemployed (Skill Development)
5. Bandhan Financial Literacy Programme
6. Sustainable Livelihoods Programme
7. Climate Action Programme
8. Afforestation
9. Water Conservation
10. Emergency Assistance for COVID-19
127
SECTION C: OTHER DETAILS
1. Does the Company have any Subsidiary Company/ companies? The Bank does not have any subsidiary company.
2. Does the subsidiary company/ companies participate in the BR initiatives of Other than the Bank, no other entity (e.g. suppliers,
the parent company? If yes, then indicate the number of such subsidiary distributors, etc.) participate in the BR initiatives of
company(s) the Bank.
3. Do any other entity/ entities (e.g. suppliers, distributors etc.) that the
Company does business with, participate in the BR initiatives of the
Company? If yes, then indicate the percentage of such entity/entities? [Less
than 30%, 30-60%, More than 60%]
SECTION D: BUSINESS RESPONSIBILITY (BR) INFORMATION

1. Details of Director/ Directors responsible for BR
a. Details of the Director/ Directors responsible for the implementation of the BR policies
DIN 00342477
Name Chandra Shekhar Ghosh
Designation Managing Director & CEO
b. Details of the BR Head
DIN (if applicable) 00342477
Name Chandra Shekhar Ghosh
Designation Managing Director & CEO
Telephone number 91-33-6609 0909
E-mail ID [email protected]
2. Principle-wise (as per NVGs) BR Policy/policies
(a) Details of Compliance (Reply in Y/N)
Sl. Questions P11 P22 P33 P44 P55 P66 P77 P88 P99
No.
1. Do you have a policy/policies for… Y Y Y Y Y Y Y Y Y
2. Has the policy been formulated in consultation with the relevant Y Y Y Y Y Y Y Y Y
stakeholders?
3. Does the policy conform to any national /international standards? If Y Y Y Y Y Y Y Y Y
yes, specify? (50 words)
4. Has the policy been approved by the Board? If yes, has it been signed by Y Y Y Y Y Y Y Y Y
MD/owner/CEO/appropriate Board Director?
5. Does the Company have a specified committee of the Board/ Director/ Y Y Y Y Y Y Y Y Y
Official to oversee the implementation of the policy?
6. Indicate the link for the policy to be viewed online? Weblinks of the Policies are mentioned below.
7. Has the policy been formally communicated to all relevant internal and Y Y Y Y Y Y Y Y Y
external stakeholders?
8. Does the Company have an in-house structure to implement the policy/ Y Y Y Y Y Y Y Y Y
policies?
9. Does the Company have a grievance redressal mechanism related to Y Y Y Y Y Y Y Y Y
the policy/policies to address stakeholders’ grievances related to the
policy/policies?
10. Has the Company carried out any Independent audit/evaluation of the Y Y Y Y Y Y Y Y Y
working of this policy by an internal or external agency?
1. Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
2. Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
3. Businesses should promote the wellbeing of all employees
4. Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and
marginalized.
5. Businesses should respect and promote human rights
6. Businesses should respect, protect, and make efforts to restore the environment
7. Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
8. Businesses should support inclusive growth and equitable development
9. Businesses should engage with and provide value to their customers and consumers in a responsible manner
128
Weblinks of the Policies:

List of Relevant Code / Policies Governing the above-mentioned Principles
1. Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
a. Code of Conduct (Directors and Senior Management)
https://www.bandhanbank.com/pdfViewerJS/index.html#../sites/default/files/2020-12/Code-Conduct-for-Directors.pdf
https://bandhanbank.com/pdfViewerJS/index.html#../sites/default/files/2020-12/Code-Conduct-for-Senior-Management.pdf
b. Human Resource Policy – Code of Conduct for Employees (available on intranet)
c. Policy on Vigilance and Whistle Blower mechanism
ttps://www.bandhanbank.com/pdfViewerJS/index.html#../sites/default/files/2021-03/Annexure%20B-%20%20Revised%20
h
Vigilance%20Policy%20%20Whistle%20Blower%20Mechanism
d. Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information
https://www.bandhanbank.com/pdfViewerJS/index.html#../sites/default/files/2020-12/Final-Fair-disclosure-CCIT.pdf
e. Policy on Dealing with Related Party Transaction
https://bandhanbank.com/pdfViewerJS/index.html#../sites/default/files/2022-04/Related_Party_Transaction_Policy_0.pdf
2. Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
a. Credit Policy (available with relevant departments)
3. Principle 3: Businesses should promote the well-being of all employees
a. Human Resource Policy (available on intranet)
4. Principle 4: Businesses should respect the interests of, and be responsive toward all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized
b. CSR Policy
https://bandhanbank.com/pdfViewerJS/index.html#../sites/default/files/2021-07/CSR-Policy-2021_1.pdf
5. Principle 5: Businesses should respect and promote human rights
6. Principle 6: Businesses should respect, protect, and make efforts to restore the environment
a. CSR Policy
7. Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
a. External Communication Policy (available with relevant department)
8. Principle 8: Businesses should support inclusive growth and equitable development
a. CSR Policy
9. Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner
a. Grievance Redressal Policy
https://bandhanbank.com/sites/default/files/2022-02/Grievance_Redressal_Policy_22.pdf
b. Customer Compensation Policy
https://bandhanbank.com/sites/default/files/2022-02/Customer_Compensation_Policy_22.pdf
c. Policy for General Management of Branches and DSC
https://www.bandhanbank.com/sites/default/files/2020-12/Doorstep-Banking-Policy-Final-wef12102020%5B1%5D.pdf
d. Deposit Policy
https://bandhanbank.com/sites/default/files/2022-01/Deposit%20Policy_17122.pdf
e. Customer Protection Policy – Limiting Liability of Customers in Unauthorised Electronic Banking Transaction

https://www.bandhanbank.com/sites/default/files/2022-06/Policy_on_Customer_Protection_Version_3_0.pdf In addition to
the above-mentioned policies, the Bank has various internal processes and framework that relates to the subject areas of the
nine principles of NVR/BRR.
In addition to the above-mentioned policies, the Bank has various internal processes and framework that relates to the subject areas
of the nine principles of NVR/BRR.
129
(b) If the answer to S. No. 1 against any principle is ‘No’, please explain why: (tick up to 2 options)
Sr. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No.
1. The Company has not understood the Principles.
2. The Company is not at a stage where it finds itself in a position

to formulate and implement the policies on specified principles.
3. The Company does not have financial or manpower resources

available for the task. Not Applicable
4. It is planned to be done within the next six months
5. It is planned to be done within the next year.
6. Any other reason (please specify)
3. Governance related to BR
a. Indicate the frequency with which the Board of Directors, Annually
Committee of the Board or CEO assess the BR performance of
the Company Within 3 months, 3-6 months, Annually, More
than 1 year
b. Does the Company publish a BR or a sustainability report? What Business Responsibility Report
is the hyperlink for viewing this report? How frequently it is Frequency: Annual
published? Hyperlink: https://bandhanbank.com/annual-reports
SECTION E: PRINCIPLE-WISE PERFORMANCE

Principle 1 – Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
Principle Description Response
No.
1.1 Does the policy relating to ethics, bribery and The Policy related to ethics, bribery and corruption applies to all
corruption cover only the Company? Does it extend relevant stakeholders whom the Bank has dealings with, including
to the Group/Joint Ventures/ Suppliers / Contractors/ groups, Vendors, NGOs and others.
NGOs / Others?
1.2 How many stakeholder complaints have been received During the FY 2021-22, the Bank has received the following
in the past financial year and what percentage were complaints/ cases from various stakeholders:
satisfactorily resolved by the management? So,
provide details thereof, in about 50 words or so. Stakeholders Complaints/ Resolved
cases
(No.) (%)
Shareholders 424 424 100%
Employees 203 175 86.21%
Vendors 0 N.A N.A.
Customers 36,483* 35,981 98.62%
Communities 0 N.A N.A.
Regulatory Authority 0 N.A N.A.
Media 0 N.A N.A.
The complaints / cases include all operational and other grievances.

*includes 537 complaints / cases pending at the beginning of the year.
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P2 – Businesses should provide goods and services that are safe and contribute to sustainability throughout their life
cycle.
No.
2.1 List up to 3 of your products or services whose design The Bank has several products and services that are specifically
has incorporated social or environmental concerns, targeted toward the marginalised sections of the society and
risks and/or opportunities attempts to address and cater to the social concerns, risks and
opportunities. The details of the products and services are given on
the Bank’s website some of which are mentioned below:
1. Suchana Loan
2. Suraksha Loan
3. Micro Home loan
2.2 For each such product, provide the following details in a. The resource use optimisation does not apply to the above-
respect of resource use (energy, water, raw material mentioned products.
etc.) per unit of product (optional): b. The products are more geared towards providing innovative
(a) Reduction during sourcing/ production/ and suitable financial solutions to the marginalised sections
distribution achieved since the previous year of society.
throughout the value chain? c. 72 per cent. of the banking units are in the rural and semi-
urban areas belonging to tier 3 to tier 6 locations. Majority of
(b) Reduction during usage by customers (energy,
the Bank’s customers belong to EEB, indicating a high focus
water) has been achieved since the previous
on providing banking services to marginalised groups and
year?
addressing the various social concern in the banking sector.
d. There is no high usage of energy and water consumption.
Therefore, a reduction in usage of consumption is not
applicable.
2.3 Does the Company have procedures in place for
sustainable sourcing (including transportation)?
(a) If yes, what percentage of your inputs was sourced Not Applicable
sustainably? Also, provide details thereof, in about 50
words or so.
2.4 Has the Company taken any steps to procure goods The Bank does not procure any raw materials for processing.
and services from local and small producers, including Therefore, the procurement of goods and services from local
communities surrounding their place of work? and small producers is not applicable. However, the Bank has
been providing the services to its EEB customer through the
(a) If yes, what steps have been taken to improve the
local Branches and Banking Units (‘BUs’) that cater to small and
capacity and capability of local and small vendors?
marginalised communities in the localities of the BU’s catchment
area, including generating large numbers of employment both
directly and indirectly.
2.5 Does the Company have a mechanism to recycle
products and waste? If yes what is the percentage of
recycling of products and waste (separately as <5%, Not Applicable
5-10%, >10%). Also, provide details thereof, in about
50 words or so.
131
P3 – Businesses should promote the well-being of all employees.
No.
3.1 Total number of employees (as of March 31, 2022) 60,211
3.2 Total number of employees hired on a temporary/ 0
contractual/ casual basis
3.3 Total number of permanent women employees 5,818
3.4 Total number of permanent employees with NIL
disabilities.
3.5 Employee association that is recognized by the None
Management?
3.6 Percentage of your permanent employees that are N.A
members of this recognized employee association.
3.7 Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, and sexual harassment
in the last financial year and pending, as of the end of the financial year.
.i Child labour/forced labour/involuntary labour No. of complaints filed during the financial year: NIL
No. of complaints pending as of the end of the financial year: NIL
ii Sexual harassments complaints No. of complaints filed during the financial year: 13
No. of complaints pending as of the end of the financial year: 2
iii Discriminatory employment No. of complaints filed during the financial year: NIL
No. of complaints pending as of the end of the financial year: NIL
3.8 What percentage of your under mentioned employees were given safety & skill upgradation training in the last year?
i Permanent employees 92%
ii Permanent women employees 88%
iii Casual/ Temporary/ Contractual Employees N.A.
iv Employees with disabilities N.A.
P4 – Businesses should respect the interests of, and be responsive toward all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized.
No.
4.1 Has the company mapped its internal and external Yes
stakeholders? Yes/No
4.2 Out of the above, has the company identified Yes

the disadvantaged, vulnerable & marginalized
stakeholders
4.3 Are there any special initiatives taken by the company The Bank operates through its 5,639 banking outlets as of March
to engage with the disadvantaged, vulnerable and 31, 2022, to cater to the financial needs of 26.3 million customers,
marginalized stakeholders? If so, provide details including a large number of the disadvantaged, vulnerable and
thereof, in about 50 words or so. marginalized stakeholders who remain underbanked. The Bank
through its CSR initiatives and banking operations is reaching out to
the vulnerable and marginalised stakeholders.
132
P5 – Businesses should respect and promote human rights.

No.
5.1 Does the policy of the Company on Human Rights The Human Rights related provisions extend to all the relevant
cover only the Company or extend to the Group/ Joint stakeholders that the Bank has dealings with, including its groups,
Ventures/ Suppliers/ Contractors/ NGOs /Others? affiliates, vendors and NGOs.
5.2 How many stakeholder complaints have been The Bank complies with human rights. The Bank hires solely based
received in the past financial year and what per cent on merit and doesn’t discriminate against any applicant based on
was satisfactorily resolved by the management? race, colour, religion, age, gender or any other basis prohibited by
the law. The principle for people-related issues is enshrined in the
HR Policy of the Bank. Also as of March 31, 2022, the Bank has not
received any stakeholder complaints on human rights.
P6 – Businesses should respect, protect, and make efforts to restore the environment.
No.
6.1 Does the policy related to Principle 6 cover only the The environment protection related provisions like saving energy,
company or extend to the Group/Joint Ventures/ water, paper and waste management extend to all the relevant
Suppliers/Contractors/NGOs/others? stakeholders that the Bank has dealings with, including its groups,
affiliates, vendors and NGOs.
6.2 Does the Company have strategies/ initiatives to The Bank through its CSR Policy has been addressing climate change
address global environmental issues such as climate and global warming-related issues, including the afforestation
change, global warming, etc? Y/N. If yes, please give of mangrove plantations in Gujarat. For details, please refer to
hyperlinks for the webpage etc. www.bandhanbank.com
6.3 Does the Company identify and assess potential The Bank identifies environmental risks. For details refer to the
environmental risks? Y/N Integrated Report of the Bank.
6.4 Does the Company have any project related to Clean The Bank has taken several measures for CDM including offices
Development Mechanism? If so, provide details being on the premises of the sustainable building, energy-efficient
thereof, in about 50 words or so. Also, if Yes, whether lighting and environmentally friendly cooling systems.
any environmental compliance report filed?
6.5 Has the company had any project related to clean The Bank through its CSR initiatives has promoted the use of Solar
technology, energy efficiency, renewable energy, etc? Energy for lighting rural households and provided solar lanterns
Y/N. If yes, please give hyperlinks for the web page to the beneficiaries of the Targeting the Hardcore Poor (‘THP’)
etc. programme. The CSR initiatives are covered in the Annual Report
and at the web link https://bandhanbank.com/beyond-banking.
6.6 Are the Emissions/Waste generated by the company
within the permissible limits given by CPCB/SPCB for Not Applicable
the financial year being reported?
6.7 The number of show cause/ legal notices received
from CPCB/SPCB which are pending (i.e. not resolved Not Applicable
to satisfaction) as of the end of the Financial Year.
P7 – Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
No.
7.1 Is your company a member of any trade and chamber 1. IBA (Indian Bankers Association)
or association? If Yes, Name only those major ones
2. CII (Confederation of Indian Industries)
that your business deals with
3. BCC&I (Bengal Chambers of Commerce & Industries)
7.2 Have you advocated/lobbied through the above The Bank was not involved in any advocacy through the above-
associations for the advancement or improvement of mentioned associations.
the public good? Yes/No; if yes specify the broad areas
(Governance and Administration, Economic Reforms,
Inclusive Development Policies, Energy security, Water,
Food Security, Sustainable Business Principles, Others)
133
P8 – Businesses should support inclusive growth and equitable development.
No.
8.1 Does the Company have specified programmes/ 1. Targeting the Hardcore Poor
initiatives/projects in pursuit of the policy related to 2. Health, Nutrition, Drinking Water and Sanitation
Principle 8? If yes, details thereof. 3. Education
4. Support for Person with Disability
5. Skill Development
6. Water Conservation
7. Afforestation
8.2 Are the programmes/projects undertaken through
in-house team/own foundation/external NGO/
government structures/any other organization?
8.3 Have you done any impact assessment of your
initiative?
8.4 What is your company’s direct contribution to Refer to Principle 8 detailed section below
community development projects - Amount in INR
and the details of the projects undertaken
8.5 Have you taken steps to ensure that this community
development initiative is successfully adopted by the
community? Please explain in 50 words, or so.
P9 – Businesses should engage with and provide value to their customers and consumers in a responsible manner.
No.
9.1 What percentage of customer complaints/consumer During the FY 2021-22, opening complaints /cases were 537 and
cases are pending as of the end of the financial year. received during the year was 35,946 of which 1.38 per cent. (i.e.,
502) were pending as at the end of the financial year.
9.2 Does the Company display product information on The product and services information is available on the Bank’s
the product label, over and above what is mandated Website and is also displayed on Branch and BU notice boards.
as per local laws.
Yes/No/N.A./Remarks (additional information)
9.3 Is there any case filed by any stakeholder against
the company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive
NIL
behaviour during the last five years and pending as
of the end of the financial year. If so, provide details
thereof, in about 50 words or so.
9.4 Did your company carry out any consumer survey/
NIL
consumer satisfaction trends?
PRINCIPLES TO ASSESS COMPLIANCE WITH ENVIRONMENTAL, SOCIAL AND GOVERNANCE NORMS

PRINCIPLE 1: ETHICS, TRANSPARENCY AND ACCOUNTABILITY
Your Bank’s values revolve around its business ethics, consumer focus and corporate responsibility towards society at large. The values
of your Bank are Cost-Effective and Simple, Respect for all, Exemplary Governance, Accountability, Professionalism and Discipline,
Transparency and Integrity, Effective Teamwork and Commitment to maintaining the highest level of customer satisfaction and Customer
Centrism.
Good governance and ethical conduct are rooted within your Bank’s practices and thus helped nurture long-lasting relationships with all
its employees, customers and partners. Also, the best banking practices are ensured by the Board of Directors and Committees involved in
managing stakeholder priorities and concerns. Its robust framework ensures that all daily operations are conducted in a transparent and
accountable manner. The Policy on Vigilance and Whistle Blower Mechanism enables employees to stand up and speak out freely against
any unethical practice observed within the work environment. The policy is also extended to the Bank’s customers.
134
Your Bank’s Policy initiates steps to ensure that no financial or other inducements are offered or accepted by or on behalf of the Bank. All
employees are encouraged to raise concerns about any actual or suspected cases of bribery and corruption at the earliest possible stage
to mitigate the risk of damaging the reputation of the Bank. It also helps to identify and address appropriately any potential conflicts of
interest instantly, monitor and investigate instances of alleged corruption and takes action against any individual(s) involved in corruption,
provide advice, information and periodical training on ethics to all our employees at all levels and locations round the year.
Your Bank follows the “The Banking Codes and Standards Board of India”, which covers aspects like good & fair banking practices,
transparency in services & products, high operating standards, cordial relationships with consumers and measures which build the
confidence of the consumer in the banking system.
A detailed description of your Bank’s corporate governance standards can be found in the ‘Report on Corporate Governance’ section of
the annual report.
The principle wise initiatives of the Bank as per Annexure-II of BRR are provided below:
Principle Principle-wise index Bank’s Initiatives
No.
1.1 Businesses should develop governance structures, The Bank’s governance related structure, procedures and practices
procedures and practices that ensure ethical conduct that ensure ethical conduct at all levels are included in the relevant
at all levels; and promote the adoption of this policies as mentioned above.
principle across the value chain. Businesses should The Bank believes in transparent communication and access to
communicate transparently and assure access to information that may impact relevant stakeholders. The details
information about their decisions that impact relevant are included in the corporate governance section on the Bank’s
stakeholders. website https://bandhanbank.com/corporate-governance
1.2 Businesses should not engage in practices that are The Bank upholds the highest integrity and standards of ethical
abusive, corrupt, or anti-competition. practices in all its dealings. The Bank through its various code of
conduct policies promotes a ‘zero tolerance’ towards bribery and
corrupt practices.
1.3 Businesses should truthfully discharge their The Bank is regulated by the RBI under the Banking Regulation Act,
responsibility for financial and other mandatory 1949 and provides regular updates to RBI as per the regulatory
disclosures. requirements. Additionally, the Bank also files the disclosures as
mandated by the Companies Act, 2013 and the regulations of SEBI.
The Bank ensures that all its disclosures are truthfully disclosed in
accordance with the provisions of such regulations. The regulatory
disclosures are covered in the Annual Report of the Bank and also
at the weblink https://bandhanbank.com/regulatory-disclosures
1.4 Businesses should report on the status of their The status of the adoption of the Guidelines is provided in this
adoption of these Guidelines as suggested in the Business Responsibility Report.
reporting framework in this document.
1.5 Businesses should avoid complicity with the actions The Bank has put in place the necessary framework that helps in
of any third party that violates any of the principles avoiding the complicity with the actions of any third party that
contained in these Guidelines. violates any of the principles of the NVF/BRR.
PRINCIPLE 2: PRODUCTS AND SERVICES DESIGNED WITH ENVIRONMENTAL AND SOCIAL OPPORTUNITIES
Your Bank believes that it is the responsibility of the organisation to provide products and services that satisfactorily meet customer
requirements. Your Bank’s products and services have been designed in a manner to fulfil customer expectations, and additionally,
drive socio-economic development by making a positive impact on society. Further, the focus is also on creating value for its customers,
especially from marginalised and rural sections of society. Your Bank focuses on financial inclusion in the underbanked areas of society.
The branch network has been distributed over different types of locations, to maintain an appropriate balance among rural (banked
and unbanked), semi-urban, urban and metropolitan regions. The table below provides the details of the distribution of the branches at
different locations.
Banking Outlet percentage as of March 31, 2022
Banking outlets Area Branches Banking Units Total
Metro
Rural 10% Metro 207 323 530
35%
Urban 339 685 1,024
Urban
18% Semi Urban 273 1,818 2,091
Rural 370 1624 1,994
Semi-Urban
37% Total 1,189 4,450 5,639
135
mBandhan App
The focus of your Bank is in line with the government’s mission of mobile-first transactions. mBandhan, the mobile banking application,
is designed to meet the daily banking needs of our customers. The application provides members banking transactions for its customers.
The details of Products and Services are available in the Annual Report and on the website the Bank also at :
https://bandhanbank.com/personal
https://bandhanbank.com/business-banking
https://bandhanbank.com/nri-banking
Principle Principle-wise index: Bank’s Initiatives
No.
2.1 Businesses should assure safety and optimal The Bank does not have any products and services that have any
resource use over the life-cycle of the product – safety and resource concerns.
from design to disposal - and ensure that everyone
To mitigate any financial risk associated with the products and
connected with it - designers, producers, value chain
services of the Bank, it has placed an adequate risk mitigation
members, customers and recyclers are aware of their
framework.
responsibilities.
2.2 Businesses should raise the consumer’s awareness The Bank has a robust corporate communication framework for
of their rights through education, product labelling, raising consumer awareness. The details of the customer education
appropriate and helpful marketing communication, programme are given in the Customer Welfare Section of the BRR.
full details of contents and composition and
promotion of safe usage and disposal of their products
and services.
2.3 In designing the product, businesses should ensure Not Applicable
that the manufacturing processes and technologies
required to produce it are resource-efficient and
sustainable.
2.4 Businesses should regularly review and improve The Bank regularly reviews the processes and integration of new
upon the process of new technology development, technologies through its management committees.
deployment and commercialisation, incorporating
social, ethical, and environmental considerations.
2.5 Businesses should recognize and respect the rights of The Bank recognises and respects the rights of the owners of IPR
people who may be owners of traditional knowledge, and does not promote piracy and plagiarism.
and other forms of intellectual property.
2.6 Businesses should recognize that over-consumption Not Applicable
results in unsustainable exploitation of our planet’s
resources, and should therefore promote sustainable
consumption, including recycling of resources
PRINCIPLE 3: EMPLOYEE WELLBEING

Apart from structural and process integration, your Bank has a strong cultural integration plan involving the synthesis of people into one
‘culture’. Over and above this, your Bank has also introduced HR practices that help to strengthen the bonding amongst the employees to
achieve organizational objectives.

No.
3.1 Businesses should respect the right to freedom of 1. The Bank respects the rights of the employees and does not
association, participation, collective bargaining, and restrict them from participating in any legitimate association.
provide access to appropriate grievance redressal
2. The Bank has an HR portal for addressing any grievances of
mechanisms.
the employees.
3.2 Businesses should provide and maintain equal 1. The Bank is an equal opportunity employer and does not
opportunities at the time of recruitment as well as restrict employment based on gender, caste, creed, race,
during the course of employment irrespective of religion, disability or sexual orientation.
caste, creed, gender, race, religion, disability or sexual
2. It actively promotes diversity and inclusion through its
orientation
various HR initiatives.
136

No.
3.3 Businesses should not use child labour, forced labour The Bank strictly prohibits any form of child labour, forced labour
or any form of involuntary labour, paid or unpaid. or any form of involuntary labour whether paid or unpaid.
3.4 Businesses should take cognizance of the work-life 1. The Bank promotes a decent work-life balance, especially for
balance of its employees, especially that of women. women and has robust maternity leave and maternity benefit
options for women.
2. During the COVID-19 pandemic, the Bank proactively
adopted work from home and alternate day working options.
3.5 Businesses should provide facilities for the well-being 1. The Bank practices timely payment of salaries to all staff and
of its employees including those with special needs. provides mandatory social securities, like PF, gratuity and
They should ensure timely payment of fair living medical insurance.
wages to meet the basic needs and economic security
2. The Staff and asset loan provides a high subsidy rate and long
of the employees.
repayment duration to encourage employees to build their
asset base.
3.6 Businesses should provide a workplace environment 1. The Bank provides safe, hygienic, secured workplace facilities
that is safe, hygienic humane, and which upholds to all employees.
the dignity of the employees. Businesses should
2. The SOP on operational security provides detailed guidelines
communicate this provision to their employees and
for such facilities and employees are trained to access the
train them on a regular basis.
same.
3. SOP on Emergency Action Procedure provides steps to be
taken during an event of an emergency and the employees
are trained to handle such emergencies.
3.7 Businesses should ensure continuous skill and 1. The Bank has a dedicated learning and development wing
competence upgrading of all employees by providing that provides ample learning opportunities to all employees.
access to necessary learning opportunities, on an
2. The Bank also has a dedicated learning management system
equal and non-discriminatory basis. They should
that provides online training to all employees at their own
promote employee morale and career development
time and pace.
through enlightened human resource interventions.
3. The performance appraisal system of the Bank provides
career development opportunities and feedback for
continuous improvement.
3.8 Businesses should create systems and practices 1. The Bank has zero tolerance against any form of harassment.
to ensure a harassment free workplace where
2. The Bank has implemented an internal POSH Committee to
employees feel safe and secure in discharging their
look into any complaints related to sexual harassment.
responsibilities.
PRINCIPLE 4: STAKEHOLDER ENGAGEMENT

As a Bank that has a growing footprint all across India, your Bank recognises the importance of interacting with both internal and external
stakeholders regularly to discuss topics of mutual and public interest. Constant feedback received from your Bank’s stakeholder groups
helps your Bank in making informed decisions towards driving its business strategy, integrating external perspective into developing
innovative and sustainable products and services and mitigating potential risks.
The details of the engagement process and frequency for each of the groups have been outlined in the table below:
Key Method of Engagement Frequency of Topic of Discussion Relationship Manager

Stakeholders Engagement
Investors and Emails, letters, investor Annually, Financial results, shareholder Investor relations team
Shareholders grievance cell, media, the quarterly and returns and dividends, issues
Bank’s website, Annual Report on a need basis, related to shares and dividend pay-
i.e., during events outs. Post the quarterly results, a
that take place conference call is held wherein the
concerning senior leadership team participates
shareholders and the call is open to all investors
e.g. General and analysts. The transcript of the
Meetings, etc. call is also made available on the
Bank’s website.
137
Key Method of Engagement Frequency of Topic of Discussion Relationship Manager
Stakeholders Engagement
Customers and One-on-one interactions, On-going and Customer service quality, Relationship managers,
Clients customer satisfaction need-based investment returns, product Branch staff, Customer
surveys, customer features and benefits, technology Service Quality team,
grievance cell, customer interface for a banking experience Operation team,
meets, the standing Business team. Several
committee of the customer, tele-calling & personal
customer helplines / toll-free one to one contacts on
numbers, media, the Bank’s Banking Services.
website
Employees Induction Programme, On-going and The Bank’s policies and Human resources
e-mails, town halls, skip- need-based procedures, employee welfare team
level meetings, leadership issues, performance appraisal
meetings, employee and rewards, training and career
engagement initiatives, development, workplace health,
employee grievance cell, safety and security, community
intranet. development and employee
volunteering
Government and The Bank’s regulatory filings, As per regulatory License request and renewal, Cross-functional team
Regulatory compliance statements, requirements and compliance with regulatory
Bodies meetings, letters, emails need based and statutory requirements,
participation in Government,
financial sector plans and
programmes
Suppliers and Meetings, emails, letters On-going and Product/Service/Technology quality Respective departments
Business need-based and support, contract commercial dealing with suppliers
Associates and technical terms and conditions. and business associates,
Commercial and
procurements team
Media Advertising, media On-going and Marketing and advertising agenda, Marketing
interactions /interviews / need-based information disclosure through team, Corporate
responses, meetings, emails media. communications team
PRINCIPLE 5: HUMAN RIGHTS

Your Bank respects the human rights of all its employees, customers, etc., upholding the dignity of every individual. As mandated by the
Fair Practice code, your Bank offers its products and services without any discrimination. It does not employ child labour. Further, the
statutory compliance of all contractors on minimum wages is reviewed and monitored.

No.
5.1 Businesses should understand the human rights The Bank is well aware of the Human Rights content of the
content of the Constitution of India, national laws Constitution of India and related laws, and do not undermine its
and policies and the content of the International Bill adherences among its stakeholders.
of Human Rights. Businesses should appreciate that
human rights are inherent, universal, indivisible and
interdependent in nature.
5.2 Businesses should integrate respect for human The Bank’s grievance redressal mechanism provides access to
rights in management systems, in particular through all employees to access and lodge complaints related to human
assessing and managing human rights impacts of rights, including any discrimination on the ground of caste, class,
operations, and ensuring all individuals impacted by creed, race, etc.
the business have access to grievance mechanisms.
138

No.
5.3 Businesses should recognize and respect the human The Bank has adopted a Customer Grievance Redressal System and
rights of all relevant stakeholders and groups all relevant stakeholders have access to lodge any complaint of any
within and beyond the workplace, including that human rights violations.
of communities, consumers and vulnerable and
The Bank takes utmost care in training all its employees to uphold
marginalized groups.
the dignity of all its stakeholders, especially vulnerable and
marginalised groups.
5.4 Businesses should, within their sphere of influence, The Bank maintains a high touch model to promote awareness and
promote the awareness and realization of human realization of human rights across its network.
rights across their value chain.
5.5 Businesses should not be complicit with human rights The outsourcing policy of the Bank prohibits any kind of human
abuses by a third party. rights violation by any third party.
PRINCIPLE 6: ENVIRONMENT PROTECTION

As a conscientious Bank, your Bank understands its responsibility to operate in an environmentally sustainable way by developing,
promoting and utilising eco-friendly and resource-efficient services. Your Bank has incorporated environment-friendly features into its
infrastructure. Some of the energy-efficient and environment-friendly technologies are illustrated below:
Digital Banking • Conversion of statements into e-statements;

• Numerous other administration focus on paperless exchanges;
• Done away with ATM slip generation
Energy Saving • Five Star rated and energy efficient ACs and Diesel Gensets
Initiatives • Replacement with LED lights in the office
IT Initiatives • Automated server and desktop shutdown to reduce consumption of energy;
• Video conferencing, video chatting to reduce contributory emissions as a result of air travel.
None of the Banking offices violates any biodiversity or b) Afforestation

environmental protection act of the country. Your Bank has supported the afforestation initiatives and
has contributed to the project of establishing a “Bio-shield”
Apart from the above initiatives, your Bank has actively contributed
to environmental development projects through its CSR initiatives to save the mangroves in the Bharuch district of Gujarat.
for the conservation of water and carbon sequestration. The Mangrove plantation of 67,540 saplings was carried out
details of the projects are given below: in 20 hectares in a stretch of 1 kilometer of coastline was
done along with plantation of other medical plant species
a) Water Conservation
and fodder species, sequestering over 4,400 tonnes of CO2
The water conservation initiative aims at water security and
annually to date. The fodder bank was created to offset the
drought-proofing in some of the high moisture stressed
biotic pressure from the mangrove area. The project created
regions of India, thereby providing a safety net to agriculture
4,629 person-days of employment and benefited 9,123
and livestock-based livelihoods. The initiatives facilitate
beneficiaries with additional income generating avenues
participatory watershed management by empowering
from fodder and medicinal plant harvesting.
the communities to participate in the planning and
implementation of local water resource development. PRINCIPLE 7: POLICY ADVOCACY
Measures such as building, reviving and maintaining water- Bandhan Bank has not lobbied through any associations or taken
harvesting structures, prioritisation and judicious use of
any public policy positions.
water for every community member, crop planning and
water-efficient farming, use of drought-resistant varieties, PRINCIPLE 8: INCLUSIVE GROWTH
cultivation of high-value crop requiring less water, etc., The Corporate Social Responsibility (‘CSR’) policy of your Bank
creates a multiplier effect in drought-proofing and climate articulates its goal to positively contribute toward the economic,
change adaptation measures and higher income generation. environmental and social well-being of the marginalised
The programme has supported the construction of 23 water communities through its CSR programme. The Bank has contributed
harvesting structures with a storage capacity of over 120,000 `78.43 Crore towards 23 CSR programmes implemented through
kilolitres of water in two states to date. The water harvesting 10 Project Implementing Agencies (‘PIAs’). These CSR programmes
structures not only provided drinking water to over 1,500 were spread across 671 project locations in 71 districts of 13 states
families but also supported participatory irrigation of various in India. The CSR initiatives reached out to 2,76,262 beneficiaries
crops and helped in generating an income of more than during the financial year, thereby taking the total beneficiaries to
`123 Lakh. 20,74,603 individuals.
139
The details of CSR programmes undertaken during the financial distributed, livestock revenue, income from non-agricultural
year are are provided in the Annual Report on CSR forming part of entrepreneurial activities and daily wage income was 286
the Board’s Report as Annex – 1. The CSR Policy as recommended per cent., 100 per cent. and 25 per cent., respectively, higher
by the CSR Committee and approved by the Board is available on in the treatment group as compared to the control group
the Bank’s website: https://www.bandhanbank.com/pdfViewerJS/ mean, and it was not because of more working hours, but
index.html#../sites/default/files/2021-07/CSR-Policy-2021.pdf because the income per hour went up and they diversified
Some of the key programmes of the Bank’s CSR initiatives are: their businesses and invested part of the gains from livestock
into other activities.
a) Targeting the Hardcore Poor (THP)
Targetting the Hardcore Poor is the flagship programme The monthly consumption of those assigned to treatment
of Bandhan. The programme is designed for ultra-poor increased by 25 per cent., as compared to the consumption
women-headed households. Through this programme, the of those assigned to the control, which increased by 12 per
beneficiaries are provided with a range of gainful micro- cent. and the amount deposited in the savings account by
enterprises (in form of the farm, non-farm and mixed assets, the beneficiaries was more than double as compared to
non-cash) along with handholding support and training on the control group. There was also an increase in formal
confidence building, enterprise skills, consumer interaction, borrowings.
marketing and financial skills. They are also provided with a The study highlights the positive effects across all categories of
sustenance allowance to meet their daily needs until they outcomes. Compared to non-beneficiaries, the beneficiaries’
start generating substantial income from the assets provided. households of the programme have more assets, food
In a period of 18-24 months, these ultra-poor women start security is higher, earning more, and are financially better off.
graduating, uplifting themselves from extreme poverty1 and The results for the adult-level indexed variables of the study
getting linked to mainstream society2.
indicated that the individuals are healthier, happier, and less
During the financial year under review, your Bank has stressed. Furthermore, the effects (except for productive
contributed `27.88 Crore (`18.20 Crore in FY 2020- assets) almost always grows over time, suggesting that the
21) towards the Targeting the Hardcore Poor (‘THP’) programme may have put beneficiaries’ household on a
programme of Bandhan Konnagar, an organization different trajectory.
registered under the Societies of West Bengal Registration
b) Health, Nutrition, Drinking Water and Sanitation
Act XXVI of 1961, Implementing Agency. The funds were
During the financial year under review, your Bank has
utilised towards alleviating 27,600 ultra-poor women,
contributed `18.49 Crore (`15.67 Crore in FY 2020-21)
who were provided assets to start their own petty
towards seven health programmes of five PIAs covering 35
businesses in farm, non-farm and mixed sectors to build
districts in nine states of India. The health programmes of the
their livelihoods. These ultra-poor women belonged to 18
PIAs supported by your Bank covered 88,019 beneficiaries
districts of Assam, Jharkhand, Madhya Pradesh, Odisha and
during the year.
West Bengal.
Health
Your Bank appointed KPMG Assurance and Consulting
Your Bank contributed towards creating health and hygiene-
Services LLP (‘KPMG’) to carry out an independent Impact
related awareness and behaviour change through a network
Assessment of the CSR Programmes of your Bank. This
of 4,518 village-level female health volunteers known
Impact Assessment Study carried out by KPMG indicated
as “Swasthiya Sahayikas” who reached out to 2,16,918
that during the period 2016-2022, more than 29,000 women
pregnant women and lactating mothers. The Swasthiya
were alleviated from extreme poverty to above the national
poverty line (`1,059.42 for rural and `1,286 for urban areas)1 Sahayikas held 38,266 health awareness forums. These
with a significant increase in their income (at least an income sessions were attended by 7,71,600 female participants
of above `4,000 and average of `7,456 per month) and belonging to the reproductive age group. The Swasthiya
business assets and household assets. Additionally, these Sahayikas made 14,81,310 home visits to follow up on the
women had improved regular savings habits and access to health status of pregnant women, lactating mothers and
safe and secure shelter. children below five years and have taken 2,278 women for
institutional deliveries during ante-natal check-ups (‘ANC’)
A long term study was done by the Nobel Laureate Dr. Abhijit and other health check-ups.
Banerjee et.al3., based on Randomised Control Trials (‘RCT’)
method, suggests that in seven years after the asset was first The Swasthiya Sahayikas of the health programme inducted
menstrual hygiene, behaviour change communication
1 Poverty Line benchmarked accordingly to the Suresh Tendulkar amongst the women especially the adolescent girls and
Committee Poverty Lines per capita monthly expenditure, 2011-12, infant care behaviours to the pregnant women and lactating
Niti Aayog, Government of India mothers. They provided sanitary pads during door-to-door
2 India SDG Index Score for Goal 1 – No Poverty; Goal 2 – Zero Hunger
and SGD 5 – Gender Equality
visits and have also started to supply infant diapers, soaps,
3 Abhijit Banerjee, Esther Duflo, Raghabendra Chattopadhyay and hand sanitisers, moisturisers, etc.
Jeremy Shaprio. 2016. The Long Term Impacts of a “Graduation”
Program: Evidence from West Bengal. Working Paper, September, These efforts resulted in improving the institutional
2016. J-PAL, MIT, Cambridge, Massachusetts. USA. deliveries to 90.25 per cent., (compared to the national
140
average of 78.90 per cent.4) and complete ANC to 91 per the children who are less than five years of age and is
cent. (compared to the national average of 51.20 per cent.4). evident from the fact the wasting of children under five has
gone down to 9 per cent. (as against the national average
An Impact Assessment study conducted by KPMG indicated
of 35.7 per cent.4). The awareness regarding a balanced and
that the programme contributed in the improvement by 2
adequate diet during pregnancy coupled with the availability
per cent. to 10 per cent. for Institutional deliveries ranging
of fruits and vegetables from the nutrition garden resulted
between 94 per cent. to 98 per cent., improved by 4 per
in reducing the low birth weight incidences to a mere 2 per
cent. for complete ANC ranging between 94 per cent. to 97
cent. of the live births as compared to the national average
per cent., and an improvement by 10 per cent. to 21 per
of 18.2 per cent.4 live births being under 2.5 kilogram.
cent. for immunisation ranging between 98 per cent. to 99
per cent. A study conducted by KPMG estimated that there has been a
A study conducted by Grameen Foundation and Freedom reduction in malnutrition among children below five years of
from Hunger India Trust from 2015 to 20185, concluded age from 14 per cent. to 4 per cent.
that the programme has a visible positive impact amongst Drinking Water
the participants of the health awareness programme on the During the financial year under review, 62 community-level
level of awareness and health-related behaviour between reverse osmosis water treatment plants were operational,
baseline from lower than 10 per cent. to end-line with more which provided 29,577 kiloliters of purified safe drinking
than 90 per cent. of women know about Mother and Child water to 33,749 households.
Health (‘MCH’) and from 20 per cent. to 80 per cent. of
Sanitation
adolescent girls managing menstrual complications.
Your Bank has contributed towards developing the
Healthcare community-led sanitation and school sanitation programme
During the financial year under review, 76,945 patients of two PIAs covering three districts in three states of India. The
were provided treatment for various diseases like cataract, initiatives helped in improving the sanitation infrastructure of
hypertension, diabetes, cough & cold, etc., in three districts 502 households, and 19 government schools, which included
of three states of India through PIAs, taking the total to separate toilets for Boys and Girls using child-friendly
2,47,602 patients being treated. engineering, RO drinking water stations, mid-day meal
Nutrition platform with shades, dishwashing stations, roof rainwater
During the financial year under review, 2,75,922 children, harvesting system, etc. The programme induced behaviour
under the age of five years, were surveyed in the nutrition change amongst the school teachers and children through
initiatives, of which 2,100 children were identified with classroom sessions and demonstrations regarding sanitation
severe acute malnutrition (‘SAM’) and were supported for and personal hygiene including hand-washing using soaps
nutrition rehabilitation, whereas, 11,607 children under the after using toilets, before and after a meal, before holding
age of five were found with moderate acute malnutrition infants, after arriving, after playing outdoors, after playing
(‘MAM’) and were provided with nutritional supplements with animals, after coughing, sneezing or blowing your nose,
including support for nutritional gardens. cleaning toilets, flushing toilets after use, using sanitary pads
for menstrual hygiene, etc. The programme also supported
94 per cent. of the children over 24 months completed
monitoring of the operation and maintenance of the facilities
their primary immunisation and 83.25 per cent. (National
created.
Average 54.90 per cent.4) of children from 0- 6 months were
exclusively breastfed. c) Education
Your Bank’s supported education programmes provide
To provide round the year nutritional support, 27,444
quality education to the children belonging to the
households were provided planting materials of fruits and
marginalised section of the society in your Bank’s catchment
vegetables for setting up their nutrition gardens. These
area(s). The education programme enables the children
nutrition gardens helped families, especially women
to improve their learning outcomes, especially in Science,
and children to consume pesticide-free fresh fruits and
Technology, English and Mathematics (‘STEM’) subjects and
vegetables round the year. This initiative has helped in
increase their retention and classroom engagement. The
reducing the protein-energy malnutrition (‘PEM’) amongst
programme also provides training to the teachers belonging
4 International Institute for Population Sciences (IIPS) and ICF. 2017. to the communities, government schools and schools run by
National Family Health Survey (NFHS-4), 2015-16: India. Mumbai:
IIPS. http://rchiips.org/nfhs/NFHS-4Reports/India.pdf the various charitable trust who are providing free education
4 Abhijit Banerjee, Esther Duflo, Raghabendra Chattopadhyay and to transform their pedagogy and integrated various teaching
Jeremy Shaprio, 2016. The long term impacts of a “Graduation” and learning tools in their lesson plans and track the
Programme Evidence from West Bengal. Working Paper, September, comprehensive continuous assessment of each child.
2016, J-PAL, MIT, Cambridge, Massachusetts, USA.
5 Alison Burgon Bardsley, Bobbi Gray, Cassie Chandler, and Sabina For inclusive learning, your Bank has also contributed to
Rogers (2018). Maa Aur Shishu Swasthya (MASS) Mother and Child “Sammilit Pathshala” for providing education to children
Health Program, 2015-2018. Final Project Report. December 2018.
with special needs with other children. For creating a better
Grameen Foundation and Freedom from Hunder India Trust. https://
grameenfoundation.org/documents/MASS_Final_Evaluation_ learning environment, the programme also contributed to
Report_2018_Final.pdf the creation of school education facilities including, setting
141
up computer labs, smart classrooms, furniture and fixtures, a placement rate of over 68 per cent. These youths earned
building as a learning aid (‘BALA’) paintings, etc. salaried income in the organised sector with an average
salary of ₹13,591.
Your Bank contributed `17.01 Crore (`14.80 Crore in FY
2020-21) towards the education programme of three PIAs PRINCIPLE 9: CUSTOMER WELFARE
benefiting 67,575 marginalised children. The cumulative Finance and banking are all about trust. In this light, customer
geographical outreach of the programme spread across 33 service takes the center stage in this business. The current scenario
districts of six states of India. of competitive banking presents new challenges and complexities
An Impact Assessment study conducted by KPMG indicated with the emerging trend of digitization of services and the adoption
that according to the situational assessment conducted by of online transaction modes by consumers. Your Bank understands
Asian Institute for Sustainable Development (AISD) in 2021, that in the banking industry, where technology continues to
it was indicated that over 85 per cent. of the parents across evolve the way we handle personal and business finances, quality
the states applauded the good quality of education provided customer care includes keeping pace with both live and digital
at Bandhan Education Centre (‘BEC’). The respondents options to ensure seamless and hassle-free service to customers.
highlighted that there had been an improvement in the Amidst strong market competition, your Bank continuously strives
academic performance in English and Mathematics of their to improve its relationship with customers. By constantly listening
wards in formal schools due to the support provided at the to our customers and improving and embracing new technology,
BECs. The parents and guardians shared that the staff at your Bank aims to improve the customer management system and
BEC provided them with hand-holding support during the bring about a positive experience in the entire customer service
enrolment of their children in formal schools. The report journey.
further indicated that the prolonged closures due to the Grievance Redressal Mechanisms
COVID-19 pandemic had affected the learning capabilities of Your Bank follows the principle of ‘First Contact Resolution’, i.e.,
the students.
all efforts are made to resolve the grievance to the satisfaction of
d) Support for Person with Disabilities the complainant at the point of the first contact. Complaints may
In line with the commitment to inclusive growth, your Bank be received by the Bank from its customers at all levels - Branches,
has contributed ₹38.25 Lakh (₹38.85 Lakh in FY 2020-21) to Banking Units, Housing Finance Centers, Cluster Offices, Regional
the initiatives of three PIAs who are dedicated to providing Offices, Zonal Offices and Head offices as well as other customer
equal opportunities and a conducive environment to persons contact points such as the Phone Banking Center, Bandhan Bank
with disabilities (‘PwD’). During the financial year under website, Customer Care mail IDs. Issues raised by customers on
review, the initiatives have supported 270 PwDs in three social media platforms like Facebook, Twitter, LinkedIn, etc., are
districts of three states of India taking the total to 1,332 also treated as complaints, wherever applicable.
PwDs supported through these initiatives.
Both Your Bank’s toll-free numbers and toll-paid numbers are
e) Skill Development enabled with an IVR option in the main menu for ease of reporting
Your Bank’s skill development initiative provides market- fraudulent activity. On selection of the requisite option the calls
linked and job-ready employable skills to the youths from land to a trained Phone banking agent with adequate knowledge
marginalised sections of the society in various domains to handle complaints related to Unauthorised Electronic Banking
This initiative not only provides on-job training, and job Transactions. The agents have the authority to block or freeze
placement facilitation in the organised sector but also a accounts as required.
follow-up of the placements so that the youths are settled in
their jobs post-training. A complaint redressal mechanism as given below is put in place by
the Bank for resolving customer complaints expeditiously, to bring
During the financial year under review, your Bank contributed about transparency and to assist in creating a positive image of the
₹4.79 core (₹4.89 crore in FY 2020-21) towards the skill Bank amongst its customers.
development initiatives of two PIAs in 16 districts of six
states of India. These PIAs operated 16 training centres in Channels for receiving grievances, the turnaround time for
domains, like, Warehousing and Logistics, Retail and Customer resolution and escalation matrix are as below:
Care, Sales and Marketing, ITeS and BPO, Refrigeration and Level 1 - Branch/Phone Banking Centre/Housing Finance
Air Conditioning, Computer Accounting, Hardware and Centre/Banking Unit: Complaints received at this level will be
Networking, BFSI, Tailoring, Mason, Electrical, GDA (Nursing), resolved within 7 working days. In case of dependency on other
Manual Metal Arc Welding, Fitter Fabrication, etc. departments or in case of issues that need retrieval of old records,
During the financial year, 3,738 youth were trained, of which the resolution time would be 10 working days.
more than 75 per cent. were placed with a net salary ranging Level 2 – Cluster Office: If the customer is not satisfied with the
from ₹8,000 to ₹15,000 plus other performance-based
resolution provided, he may escalate the matter to the Cluster
allowances and social security benefits like Provident Fund
Head or the Bank’s Nodal Officers to the Banking Ombudsman of
(‘PF’) and Employee State Insurance (‘ESI’).
the concerned area. The Cluster Head will look into the matter and
An Impact Assessment Study conducted by KPMG indicated resolve the complaint within 10 working days from the receipt of
that between 2016 to 2021, 11,478 youth were trained with the complaint.
142
Level 3 – Head Office: If the customer is not satisfied with the Customer Education Initiatives
resolution provided, he/she may escalate the matter to the Head- As a part of the customer education initiative to prevent fraud,
Banking Operations & Customer Service at Head Office, who regular SMS / emails are being sent to customers advising them to
would look into the matter and arrange to resolve the same within use strong passwords and biometric access to secure phones and
15 working days of receipt of the complaint. applications and not to share any payment credentials like OTP,
CVV, password or any confidential details with anyone. Customers
It is made known to the customer that in case he/she is not
are also alerted against downloading and clicking on fictitious
satisfied by the resolution provided by the Bank, then he/she may
links and to immediately report to Customer Care or to visit the
approach the Banking Ombudsman. Nineteen Officers of the Bank
Bandhan Bank branch in case of fraudulent access or transaction
across the country have been identified as Nodal Officers to the
through internet and mobile banking. Our awareness programs
Banking Ombudsmen.
(Financial Literacy Camps) help educate our customers and
Ensuring Customer Privacy citizens against online banking frauds. The information on features
Personal information and financial transactions are entirely of Digital Banking and their safe usage have been disseminated
confidential. As an organisation, Bandhan Bank takes issues of through multiple communication channels/touchpoints like
customer confidentiality very seriously. The Bank is constantly branch promotion, website content creation, etc., to increase
making employees aware of Information Security which awareness among customers.
includes protecting information and information systems from
unauthorised access, use, and disclosure in addition to developing
new technological innovations to ensure the absolute protection For and on behalf of the Board of Directors
of all customers’ data. Bandhan Bank Limited
Further, the Bank actively monitors the usage of its information/
phone numbers/ contact details, similar-looking URLs, etc. being Anup Kumar Sinha
wrongly put out on search engines by fraudsters to fool the gullible Place: Kolkata Non-Executive (Independent) Chairman
public/customers. Date: June 15, 2022 (DIN: 08249893)
143
Financial
Statements
Independent Auditor’s Report
To the Members of BANDHAN BANK LIMITED section 143(10) of the Act (SAs). Our responsibilities under those
Standards are further described in the Auditor’s Responsibility
Report on the Audit of the Financial Statements for the Audit of the Financial Statements section of our report.
Opinion
We are independent of the Bank in accordance with the Code
We have audited the accompanying financial statements of
of Ethics issued by the Institute of Chartered Accountants of
BANDHAN BANK LIMITED (“the Bank”), which comprise the
India (ICAI) together with the ethical requirements that are
Balance Sheet as at March 31, 2022, the Profit and Loss Account,
relevant to our audit of the financial statements under the
the Cash Flow Statement for the year then ended, and a summary of
provisions of the Act and the Rules made thereunder, and we
significant accounting policies and other explanatory information.
have fulfilled our other ethical responsibilities in accordance
In our opinion and to the best of our information and according with these requirements and the ICAI’s Code of Ethics. We
to the explanations given to us, the aforesaid financial statements believe that the audit evidence obtained by us is sufficient
give the information required by the Banking Regulation Act, 1949, and appropriate to provide a basis for our audit opinion on the
Companies Act, 2013 (“the Act”) in the manner so required and give financial statements.
a true and fair view in conformity with the Accounting Standards
Key Audit Matters
prescribed under section 133 of the Act read with the Companies
Key audit matters are those matters that, in our professional
(Accounting Standards) Rules, 2021, (“Accounting Standards”)
judgment, were of most significance in our audit of the financial
as applicable to banks and other accounting principles generally
statements of the current period. These matters were addressed
accepted in India, of the state of affairs of the Bank as at March 31,
in the context of our audit of the financial statements as a whole,
2022, its profit and its cash flows for the year ended on that date.
and in forming our opinion thereon, and we do not provide a
Basis for Opinion separate opinion on these matters. We have determined the
We conducted our audit of the financial statements in matters described below to be the key audit matters to be
accordance with the Standards on Auditing specified under communicated in our report.
Sl.
Key Audit Matter Auditor’s Response
No.
1 Identification of Non-Performing Advances and Provisioning for Advances
(Refer Schedule 9 read with Note 18.6 to the financial Our audit approach included testing the design, operating
statements) effectiveness of internal controls and substantive audit procedures
in respect of income recognition, asset classification and provisioning
Advances constitute a significant portion of the Bank’s
pertaining to advances. In particular:
assets and the quality of these advances is measured
in terms of ratio of Non-Performing Advances (“NPA”) • We have evaluated and understood the Bank’s internal control
to the gross advances of the Bank. The Bank has gross system in adhering to the Relevant RBI guidelines which includes
advances amounting to ₹ 98,790 crores and the gross evaluating the governance process and tested controls over
NPA ratio of Bank is 6.46% as at March 31, 2022. calculations of provision on non-performing advances, basis of
provisioning in accordance with the Board approved policy;
The Reserve Bank of India’s (RBI) guidelines on income
recognition, asset classification and provisioning • We have analysed and understood key IT systems/ applications
(‘IRAC norms’) and guidelines relating to Resolution used and tested the design and implementation as well as
Framework for covid-19 related stress (herein after operational effectiveness of relevant controls in relation to
referred as “Relevant RBI guidelines”) prescribes the income recognition, asset classification, viz., standard, sub-
norms for identification and classification of NPAs and standard, doubtful and loss with reference to relevant RBI
the minimum provision required for such assets. guidelines and provisioning pertaining to advances;
• We test checked advances to examine the validity of the
recorded amounts, underlying loan documentation and
statement of accounts, indicators of impairment, impairment
provision for NPAs, and compliance with IRAC norms which
includes selection of borrowers based on quantitative and
qualitative risk factors for their assessment of appropriate
classification as NPA including computation of overdue ageing
to assess its correct classification and provision amount as per
extant IRACP norms and Bank policy.
145
Sl.
Key Audit Matter Auditor’s Response
No.
The Bank is required to have Board approved policy as • Selected samples of performing loans and assessed
per IRACP guidelines for NPA identification and provision. independently as to whether those should be classified as NPA;
The Bank is also required to apply its judgement to • For samples selected examined the security valuation, financial
determine the identification and provisioning for NPAs statements and other qualitative information of the borrowers,
by applying quantitative as well as qualitative factors. wherever applicable;
The provision on NPA is estimated based on ageing and
• Considered the accounts reported by the Bank and other Banks
classification of NPAs, recovery estimates, nature of loan
as Special Mention Accounts (“SMA”) in RBI’s Central Repository
product, value of security and other qualitative factors
of Information on Large Credits (CRILC) to identify stress;
and is subject to the minimum provisioning norms
specified by RBI and approved policy of the Bank in this • For selected samples assessed independently accounts that can
regard. potentially be classified as NPA;
Additionally, the Bank carries provision on advances that • We obtained an understanding of implementation of the
are not classified as NPAs including advances to certain Regulatory Package and checked that the Bank’s board
sectors and identified advances or group advances that approved policy is in line with the Resolution Framework
can potentially slip into NPA. which includes MSME restructuring circular and Resolution
Since the identification of NPAs and provisioning for Framework for Covid- 19 related stress. On sample basis, tested
advances is significant to the overall audit due to reasons that restructuring was carried out in accordance with the
stated above as well as stakeholder and regulatory focus, Resolution Framework and re-computed the provision made in
we have ascertained this as a key audit matter. accordance with the Resolution Framework.
• We have evaluated the adequacy of the additional provisions

as prepared by the Management and checked consistency of
various inputs and assumptions used by the Management to
determine adequacy of the additional provisions.
• Assessed the adequacy of disclosures against the relevant

accounting standards and RBI requirements relating to NPAs.
2 Key Information technology (IT) systems used in financial reporting process:
As a Scheduled Commercial Bank that operates on We involved our IT specialists to obtain an understanding of the
core banking solution (“CBS”) across its branches and Bank’s IT related control environment. Furthermore, we conducted
asset centres, the reliability and security of IT systems an assessment and identified key IT applications, databases and
plays a key role in the business operations. The Bank operating systems that are relevant for our audit. For the key IT
has a complex IT architecture to support its day-to- systems used to prepare accounting and financial information, our
day business operations. High volume of transactions areas of audit focus included access security (including controls over
is processed and recorded on single or multiple privileged access), program change controls, database management
applications. and network operations. In particular:
Accordingly, the IT controls are required to ensure that • We obtained an understanding of the Bank’s IT control
applications process data as expected and that changes environment and key changes during the audit period that may
are made in an appropriate manner. be relevant to the audit;
The IT infrastructure is critical for smooth functioning of • We tested the design, implementation and operating
the Bank’s business operations as well as for timely and effectiveness of the Bank’s General IT controls over the key IT
accurate financial accounting and reporting. systems that are critical to financial reporting. This included
evaluation of Bank’s controls to evaluate segregation of
Appropriate IT general controls and application controls
duties and access rights being provisioned / modified based
are required to ensure that such IT systems are able to
on duly approved requests, access for exit cases being
process the data, as required, completely, accurately and
revoked in a timely manner and access of all users being
consistently for reliable financial reporting. We have
recertified access of all users being rectified during the
identified ‘IT systems and controls’ as key audit matter
period of audit;
because of the high-level automation, significant
number of systems being used by the management and • We also tested key automated and manual business cycle
the complexity of the IT architecture and its impact on controls and logic for system generated reports relevant
the financial reporting system. to the audit; including testing of compensating controls or
formed alternate procedures to assess whether there were any
unaddressed IT risks that would materially impact the financial
statements.
146
Information Other than the Financial Statements and Auditor’s Responsibility for the Audit of the Financial
Auditor’s Report Thereon Statements
• The Bank’s Board of Directors is responsible for the Our objectives are to obtain reasonable assurance about whether
preparation of the other information. The other information the financial statements as a whole are free from material
comprises the Chairman’s Statement, the Directors Report misstatement, whether due to fraud or error, and to issue an
including annexures to the Directors report and Corporate auditor’s report that includes our opinion. Reasonable assurance
Governance Report included in the Annual Report, but does is a high level of assurance, but is not a guarantee that an audit
not include the financial statement and our auditors report conducted in accordance with SAs will always detect a material
thereon and the Pillar III Disclosures under New Capital misstatement when it exists. Misstatements can arise from fraud
Adequacy Framework (Basel III Disclosures). The other or error and are considered material if, individually or in the
information is expected to be made available to us after the aggregate, they could reasonably be expected to influence the
date of this auditor’s report. economic decisions of users taken on the basis of these financial
statements.
• Our opinion on the financial statements does not cover the
other information and Basel III Disclosures and accordingly As part of an audit in accordance with SAs, we exercise professional
will not express any form of assurance conclusion thereon. judgment and maintain professional skepticism throughout the
audit. We also:
• In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing • Identify and assess the risks of material misstatement of the
so, consider whether the other information is materially financial statements, whether due to fraud or error, design
inconsistent with the financial statements or our knowledge and perform audit procedures responsive to those risks, and
obtained during the course of our audit or otherwise appears obtain audit evidence that is sufficient and appropriate to
to be materially misstated. provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than
• When we read the Other Information, if we conclude that for one resulting from error, as fraud may involve collusion,
there is a material misstatement therein, we are required to forgery, intentional omissions, misrepresentations, or the
communicate the matter to those charged with governance override of internal control.
as required under SA 720 (Revised) ‘The Auditor’s
responsibilities Relating to Other Information’. • Obtain an understanding of internal financial control
relevant to the audit in order to design audit procedures that
Management’s Responsibility for the Financial Statements are appropriate in the circumstances. Under section 143(3)
The Bank’s Board of Directors is responsible for the matters stated (i) of the Act, we are also responsible for expressing our
in section 134(5) of the Act with respect to the preparation of opinion on whether the Bank has adequate internal financial
these financial statements that give a true and fair view of the controls system in place and the operating effectiveness of
financial position, financial performance and cash flows of the such controls.
Bank in accordance with the provisions of Section 29 of the
Banking Regulation Act, 1949, Accounting Standards and other • Evaluate the appropriateness of accounting policies used
accounting principles generally accepted in India and the circulars, and the reasonableness of accounting estimates and related
guidelines and the directions issued by the Reserve Bank of India, disclosures made by the management.
from time to time. This responsibility also includes maintenance of • Conclude on the appropriateness of management’s use of
adequate accounting records in accordance with the provisions of the going concern basis of accounting and, based on the
the Act for safeguarding the assets of the Bank and for preventing audit evidence obtained, whether a material uncertainty
and detecting frauds and other irregularities; selection and exists related to events or conditions that may cast
application of appropriate accounting policies; making judgments significant doubt on the Bank’s ability to continue as a going
and estimates that are reasonable and prudent; and design, concern. If we conclude that a material uncertainty exists,
implementation and maintenance of adequate internal financial we are required to draw attention in our auditor’s report
controls, that were operating effectively for ensuring the accuracy to the related disclosures in the financial statements or, if
and completeness of the accounting records, relevant to the such disclosures are inadequate, to modify our opinion. Our
preparation and presentation of the financial statement that give conclusions are based on the audit evidence obtained up
a true and fair view and are free from material misstatement, to the date of our auditor’s report. However, future events
whether due to fraud or error. or conditions may cause the Bank to cease to continue as a
going concern.
In preparing the financial statements, management is responsible
for assessing the Bank’s ability to continue as a going concern, • Evaluate the overall presentation, structure and content
disclosing, as applicable, matters related to going concern and of the financial statements, including the disclosures, and
using the going concern basis of accounting unless management whether the financial statements represent the underlying
either intends to liquidate the Bank or to cease operations, or has transactions and events in a manner that achieves fair
no realistic alternative but to do so. presentation.
Those Board of Directors are also responsible for overseeing the Materiality is the magnitude of misstatements in the financial
financial reporting process of Bank. statements that, individually or in aggregate, makes it probable
147
that the economic decisions of a reasonably knowledgeable d) In our opinion, proper books of account as required by
user of the financial statements may be influenced. We consider law have been kept by the Bank so far as it appears
quantitative materiality and qualitative factors in (i) planning the from our examination of those books.
scope of our audit work and in evaluating the results of our work;
e) The Balance Sheet, Profit and Loss Account and the
and (ii) to evaluate the effect of any identified misstatements in
Cash Flow Statement dealt with by this Report are in
the financial statements.
agreement with the books of account.
We communicate with those charged with governance regarding,
f) In our opinion, the aforesaid financial statements comply
among other matters, the planned scope and timing of the audit
with the Accounting Standards specified under Section
and significant audit findings, including any significant deficiencies
133 of the Act as applicable to the Banks.
in internal control that we identify during our audit.
g) On the basis of the written representations received
We also provide those charged with governance with a statement
from the directors and taken on record by the Board
that we have complied with relevant ethical requirements
of Directors, none of the directors is disqualified as on
regarding independence, and to communicate with them all
March 31, 2022 from being appointed as a director in
relationships and other matters that may reasonably be thought
terms of Section 164(2) of the Act.
to bear on our independence, and where applicable, related
safeguards. h) With respect to the adequacy of the internal financial
controls with reference to financial statements and the
From the matters communicated with those charged with operating effectiveness of such controls, refer to our
governance, we determine those matters that were of most separate Report in “Annexure A”. Our report expresses
significance in the audit of the financial statements of the an unmodified opinion on the adequacy and operating
current period and are therefore the key audit matters. We effectiveness of the Bank’s internal financial controls
describe these matters in our auditor’s report unless law or with reference to financial statements.
regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a i) With respect to the other matters to be included in the
matter should not be communicated in our report because Auditor’s Report in accordance with the requirements
the adverse consequences of doing so would reasonably be of section 197(16) of the Act, as amended, in our
expected to outweigh the public interest benefits of such opinion and to the best of our information and
communication. according to the explanations given to us, the entity
being a banking company, section 197 of the Act related
Other Matter to the managerial remuneration is not applicable by
The financial statements as at and for the year ended March 31, virtue of Section 35B(2A) of the Banking Regulation
2021, have been audited by the Deloitte Haskins & Sells, Chartered Act, 1949.
Accountants, one of the joint auditors of the Bank, whose report
dated May 08, 2021 expressed an unmodified opinion on those j) With respect to the other matters to be included in
financial statements. Accordingly, we, M M Nissim & Co LLP, the Auditor’s Report in accordance with Rule 11 of
Chartered Accountants do not express any opinion on the figures the Companies (Audit and Auditors) Rules, 2021, in
reported in the financial statements as at and for the year ended our opinion and to the best of our information and
March 31, 2021. according to the explanations given to us:
Our opinion on the financial statements and our report on Other i. The Bank has disclosed the impact of pending
Legal and Regulatory Requirements below is not modified in litigations on its financial position in its financial
respect of this matter. statements - Refer Schedule 18.16 to the financial
statements;
Report on Other Legal and Regulatory Requirements
ii. The Bank did not have any long-term contracts
1. As required by Section 143(3) of the Act and Section 30(3)
including derivative contracts for which there
of the Banking Regulation Act, 1949, based on our Audit, we
were any material foreseeable losses.
report that:
iii. There were no amounts which were required
a) We have sought and obtained all the information and
to be transferred to the Investor Education and
explanations which to the best of our knowledge and
Protection Fund by the Bank;
belief were necessary for the purposes of our audit and
found them to be satisfactory. iv. (a) The Management has represented that,
to the best of its knowledge and belief, as
b) In our opinion, the transactions of the Bank which have
disclosed in the notes to the accounts no
come to our notice have been within the powers of the
funds (which are material either individually
bank.
or in the aggregate) have been advanced or
c) As explained in the paragraph 2 below, the financial loaned or invested (either from borrowed
accounting system of the Bank are centralised and, funds or share premium or any other
therefore, accounting returns are not required to be sources or kind of funds) by the Bank to or in
submitted by branches. any other person(s) or entity(ies), including
148
foreign entities (“Intermediaries”), with the v. The Bank has not declared any dividend during
understanding, whether recorded in writing the year and has not proposed final dividend for
or otherwise, that the Intermediary shall, the year.
directly or indirectly lend or invest in other
2. We report that during the course of our audit we have
persons or entities identified in any manner
visited and performed select relevant procedures at
whatsoever by or on behalf of the Bank
37 branches and 60 Banking Units (BU). Since the Bank
(“Ultimate Beneficiaries”) or provide any
considers its key operations to be automated, with the key
guarantee, security or the like on behalf of
applications largely integrated to the Core Banking System,
the Ultimate Beneficiaries – Refer schedule
it does not require its branches/banking units to submit
18.32 to the financial statements.
any financial returns. Accordingly, our audit is carried
(b) The Management has represented, that, out centrally at Head Office and Central Processing Units
to the best of its knowledge and belief, as based on the records and data required for the purpose of
disclosed in the notes to accounts, no funds Audit being made available to us.
(which are material either individually or
in the aggregate) have been received by
the Bank from any person(s) or entity(ies),
For Deloitte Haskins & Sells
including foreign entities (“Funding
Chartered Accountants
Parties”), with the understanding, whether
(Firm Registration No. 117365W)
recorded in writing or otherwise, that the
G. K. Subramaniam
Bank shall, directly or indirectly, lend or
Partner
invest in other persons or entities identified
Membership No. 109839
in any manner whatsoever by or on behalf of
UDIN: 22109839AIXBLV8224
the Funding Party (“Ultimate Beneficiaries”)
Place: Bengaluru
or provide any guarantee, security or the
Date: May 13, 2022
like on behalf of the Ultimate Beneficiaries
– Refer schedule 18.32 to the financial
For M M Nissim & Co LLP
statements.
(c) Based on the audit procedures that has been (Firm Registration No. 107122W / W100672)
considered reasonable and appropriate in Sanjay Khemani
the circumstances, nothing has come to our Partner
notice that has caused us to believe that the Membership No. 044577
representations under sub-clause (i) and (ii) UDIN: 22044577AIXMFU3791
of Rule 11(e), as provided under (a) and (b) Place: Mumbai
above, contain any material mis-statement. Date: May 13, 2022
149
Annexure “A” to the Independent
Auditor’s Report
(Referred to in paragraph 1(h) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even
date)
Report on the Internal Financial Controls Over of internal financial controls over financial reporting included
Financial Reporting under Clause (i) of Sub-section 3 obtaining an understanding of internal financial controls over
of Section 143 of the Companies Act, 2013 (“the Act”) financial reporting, assessing the risk that a material weakness
We have audited the internal financial controls over financial exists, and testing and evaluating the design and operating
reporting of Bandhan Bank Limited (the “Bank”) as of March 31, effectiveness of internal control based on the assessed risk.
2022 in conjunction with our audit of the financial statements of The procedures selected depend on the auditor’s judgement,
the Bank for the year ended on that date. including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error.
Management’s Responsibility for Internal Financial
We believe that the audit evidence we have obtained is sufficient
Controls
and appropriate to provide a basis for our audit opinion on the
The Bank’s management is responsible for establishing and
Bank’s internal financial controls system over financial reporting.
maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Bank Meaning of Internal Financial Controls Over Financial
considering the essential components of internal control stated
Reporting
in the Guidance Note on Audit of Internal Financial Controls
A Bank’s internal financial control over financial reporting is a
Over Financial Reporting issued by the Institute of Chartered
process designed to provide reasonable assurance regarding the
Accountants of India. These responsibilities include the design,
reliability of financial reporting and the preparation of financial
implementation and maintenance of adequate internal financial
statements for external purposes in accordance with generally
controls that were operating effectively for ensuring the orderly
accepted accounting principles. A Bank’s internal financial control
and efficient conduct of its business, including adherence to
over financial reporting includes those policies and procedures
Bank’s policies, the safeguarding of its assets, the prevention and
that (1) pertain to the maintenance of records that, in reasonable
detection of frauds and errors, the accuracy and completeness
detail, accurately and fairly reflect the transactions and dispositions
of the accounting records, and the timely preparation of reliable
of the assets of the Bank; (2) provide reasonable assurance that
financial information, as required under the Companies Act, 2013,
transactions are recorded as necessary to permit preparation
the Banking Regulation Act, 1949 and the guidelines issued by the
of financial statements in accordance with generally accepted
Reserve Bank of India.
accounting principles, and that receipts and expenditures of the
Auditor’s Responsibility Bank are being made only in accordance with authorisations
Our responsibility is to express an opinion on the Bank’s internal of management and directors of the Bank; and (3) provide
financial controls over financial reporting of the Bank based reasonable assurance regarding prevention or timely detection of
on our audit. We conducted our audit in accordance with the unauthorised acquisition, use, or disposition of the Bank’s assets
Guidance Note on Audit of Internal Financial Controls Over that could have a material effect on the financial statements.
Financial Reporting (the “Guidance Note”) issued by the Institute
Inherent Limitations of Internal Financial Controls
of Chartered Accountants of India and the Standards on Auditing
Over Financial Reporting
prescribed under Section 143(10) of the Companies Act, 2013,
Because of the inherent limitations of internal financial controls
to the extent applicable to an audit of internal financial controls.
over financial reporting, including the possibility of collusion
Those Standards and the Guidance Note require that we comply
or improper management override of controls, material
with ethical requirements and plan and perform the audit to obtain
misstatements due to error or fraud may occur and not be
reasonable assurance about whether adequate internal financial
detected. Also, projections of any evaluation of the internal
controls over financial reporting was established and maintained
financial controls over financial reporting to future periods
and if such controls operated effectively in all material respects.
are subject to the risk that the internal financial control over
Our audit involves performing procedures to obtain audit evidence financial reporting may become inadequate because of changes in
about the adequacy of the internal financial controls system over conditions, or that the degree of compliance with the policies or
financial reporting and their operating effectiveness. Our audit procedures may deteriorate.
150
Opinion operating effectively as at March 31, 2022, based on the criteria

In our opinion, to the best of our information and according to the for internal financial control over financial reporting established by
the Bank considering the essential components of internal control
explanations given to us the Bank has, in all material respects, an
stated in the Guidance Note on Audit of Internal Financial Controls
adequate internal financial controls system over financial reporting Over Financial Reporting issued by the Institute of Chartered
and such internal financial controls over financial reporting were Accountants of India.
For Deloitte Haskins & Sells

(Firm Registration No. 117365W)
G. K. Subramaniam
Partner
UDIN: 22109839AIXBLV8224
Place: Bengaluru
Date: May 13, 2022
For M M Nissim & Co LLP

(Firm Registration No. 107122W / W100672)
Sanjay Khemani
Partner
UDIN: 22044577AIXMFU3791
Place: Mumbai
Date: May 13, 2022
151
Balance Sheet
as at March 31, 2022
(` in ‘000)
As at As at
Particulars Schedule
March 31 2022 March 31 2021
Capital & Liabilities
Capital 1 1,61,07,659 1,61,05,992
Reserves & Surplus 2 15,77,03,848 15,79,75,845
Deposits 3 96,33,06,131 77,97,22,248
Borrowings 4 19,92,12,280 16,96,03,572
Other liabilities and provisions 5 5,23,35,536 2,67,54,092
Total 1,38,86,65,454 1,15,01,61,749
Assets
Cash and balances with Reserve Bank of India 6 4,94,25,645 3,33,53,864
Balance with Banks and Money at call and short notice 7 4,37,87,883 2,89,29,337
Investments 8 29,07,87,101 25,15,53,875
Advances 9 93,97,49,267 81,61,28,759
Fixed Assets 10 58,78,851 48,67,122
Other Assets 11 5,90,36,707 1,53,28,792
Total 1,38,86,65,454 1,15,01,61,749
Contingent liabilities 12 12,40,55,253 1,34,19,063
Bills for collection - -
Significant Accounting Policies and Notes to Accounts 17 & 18
Schedules referred to above form an integral part of the Balance Sheet
As per our report of even date For and on behalf of Board of Directors
For Bandhan Bank Limited
For DELOITTE HASKINS & SELLS For M M NISSIM & CO LLP Sunil Samdani Indranil Banerjee
Chartered Accountants Chartered Accountants Chief Financial Officer Company Secretary
Firm Registration Number : Firm Registration Number : Mumbai Mumbai
117365W 107122W / W100672
G. K. Subramaniam Sanjay Khemani Vijay Nautamlal Bhatt Subrata Dutta Gupta

Partner Partner ACB Chairman & Independent Director Independent Director
Membership Number : 109839 Membership Number : 044577 Mumbai Mumbai
Place : Bengaluru Place : Mumbai DIN: 00751001 DIN: 08767943
Date : May 13, 2022 Date : May 13, 2022
Chandra Shekhar Ghosh Anup Kumar Sinha
Managing Director & CEO Chairman & Independent Director
Mumbai Mumbai
DIN: 00342477 DIN: 08249893
152
Profit and Loss Account

For the year ended March 31, 2022
(` in ‘000)
Year ended Year ended
Particulars Schedule
March 31 2022 March 31 2021
I. Income
Interest Earned 13 13,87,11,202 12,52,42,119
Other Income 14 2,82,28,226 2,02,22,539
Total 16,69,39,428 14,54,64,658
II. Expenditure
Interest Expended 15 5,15,71,016 4,96,08,563
Operating Expenses 16 3,52,34,377 2,81,68,850
Provisions & Contingencies 18.1 7,88,76,095 4,56,32,675
Total 16,56,81,488 12,34,10,088
III. Net Profit for the year (I-II) 12,57,940 2,20,54,570
Balance in Profit & Loss Account brought forward from previous year 6,17,10,030 4,75,87,096
IV. Amount available for appropriations 6,29,67,970 6,96,41,666
V. Appropriation
Transfer to Statutory Reserves 3,14,485 55,13,642
Transfer to Statutory Reserve u/s 36(1)(viii) of Income Tax Act 1961 4,24,522 7,43,688
Transfer to Capital Reserve 1,59,996 8,46,398
Transfer to Investment Reserve 2,52,391 -
Transfer to Investment Fluctuation Reserve 1,06,546 8,27,908
Dividend Paid 16,10,674 -
Balance carried over to Balance Sheet 6,00,99,356 6,17,10,030
Total 6,29,67,970 6,96,41,666
VI. Earnings per Share
Basic (`) 0.78 13.70
Diluted (`) 0.78 13.69
Face value per share (`) 10 10
Significant Accounting Policies and Notes to Accounts 17 & 18
Schedules referred to above form an integral part of the Profit & Loss Account.
117365W 107122W / W100672

Date : May 13, 2022 Date : May 13, 2022
Mumbai Mumbai
DIN: 00342477 DIN: 08249893
153
Cash Flow Statement
For the year ended March 31, 2022
(` in ‘000)
Particulars
March 31 2022 March 31 2021
A. Cash flow from Operating Activities :
Profit Before Taxation 12,86,231 2,94,86,548
Adjustments for :
Depreciation and amortization 11,00,374 10,30,649
Provisions & Contingencies 7,88,47,804 3,75,77,521
Interest Income from fixed deposits (42,908) (31,721)
Profit on sale of Held-to-maturity (HTM) securities (2,85,076) (15,08,086)
Interest Income from Investments in Held-to-maturity (HTM) securities (1,12,26,727) (82,27,973)
Provision/(reversal of provision) for depreciation in value of investments (4,49,702) 8,68,058
Employee Stock Options Expense 52,396 -
Profit on sale of fixed assets (4,057) (11,134)
Operating Profit Before Working Capital Changes 6,92,78,335 5,91,83,862
Movements in working capital :
Increase in Advances (17,52,85,772) (19,37,66,725)
Increase in Other Assets (3,59,93,598) (18,36,815)
Increase in Investment in HFT & AFS securities (2,32,14,573) (7,40,99,634)
Increase in Deposits 18,35,83,883 20,89,07,212
Increase/(Decrease) in Other Current Liabilities and Provisions (24,52,688) 34,08,981
Cash flows generated from operations 1,59,15,587 17,96,881
Direct Taxes Paid (net of refunds) (68,95,194) (1,08,88,703)
Net Cash flows generated from/(used in) Operating Activities (A) 90,20,393 (90,91,822)
B. Cash flow from Investing Activities :
Purchase of Fixed Assets/Capital work-in-progress (21,18,859) (22,25,113)
Sale of Fixed Assets/Capital work-in-progress 10,811 26,151
Interest Income from fixed deposits 42,787 33,290
Interest Income from Investments in Held-to-maturity (HTM) securities 1,12,31,025 74,23,643
(Increase)/Decrease in Held to Maturity Investment (1,52,83,874) (2,32,96,469)
Deposits created with banks and financial institutions (162) (207)
Net Cash flows generated from/(used in) Investing Activities (B) (61,18,272) (1,80,38,705)
C. Cash flow from Financing Activities :
Dividend paid (16,10,674) -
Proceeds from share issue (Including share premium) 30,009 72,675
Repayment of short term borrowings (2,10,87,254) (75,06,968)
Proceeds from long term borrowings 5,06,95,963 1,33,18,768
Net Cash flows generated from Financing Activities(C) 2,80,28,044 58,84,475
Net Increase/ (Decrease) In Cash And Cash Equivalents (A+B+C) 3,09,30,165 (2,12,46,052)
Cash And Cash Equivalents At The Beginning of the year 6,22,78,055 8,35,24,107
Cash And Cash Equivalents At The End of the year 9,32,08,220 6,22,78,055
Components of Cash and Cash Equivalents :
Cash and Balances with Reserve Bank of India (Refer Schedule no. 6) 4,94,25,645 3,33,53,864
Balance with Banks and Money at call and short notice (Refer Schedule no. 7)* 4,37,82,575 2,89,24,191
9,32,08,220 6,22,78,055
* Cash and Cash Equivalents excludes Fixed Deposits of ₹ 0.53 crore (Previous Year: ₹ 0.51 crore) with original maturity of more than three months.
The accompanying notes are an integral part of these financial statements.
117365W 107122W / W100672

Date : May 13, 2022 Date : May 13, 2022
Mumbai Mumbai
DIN: 00342477 DIN: 08249893
154
Schedules
forming part of the Balance sheet as at March 31, 2022
Schedule 1 - Capital
(` in ‘000)
As at As at
March 31 2022 March 31 2021
Authorized Capital
3,200,000,000 (Previous Year: 3,200,000,000) equity shares of ₹ 10/- each 3,20,00,000 3,20,00,000
Issued, subscribed and fully paid-up capital
1,61,07,65,867 (Previous Year: 1,61,05,99,201) Equity Share of ₹ 10/- each 1,61,07,659 1,61,05,992
Total 1,61,07,659 1,61,05,992
Schedule 2 - Reserves & Surplus

(` in ‘000)
As at As at
March 31 2022 March 31 2021
l. Statutory Reserve
Opening Balance 2,47,85,072 1,92,71,430
Additions during the Year 3,14,485 55,13,642
Deduction during the Year - -
Total 2,50,99,557 2,47,85,072
ll. Statutory Reserve U/S 36(1)(viii) OF Income Tax Act 1961
Opening Balance 82,86,713 75,43,026
Total 87,11,235 82,86,713
lll. Capital Reserve
Additions during the Year1 1,59,996 8,46,398
Total 64,60,447 63,00,451
IV. Share Premium Account
Opening Balance 5,41,43,674 5,40,74,513
Additions during the Year 28,342 69,161
Total 5,41,72,016 5,41,43,674
V. Investment Fluctuation Reserve
Total 18,12,993 17,06,447
VI. Investment Reserve
Opening Balance 51,633 51,633
Additions during the Year2 2,52,391 -
Total 3,04,024 51,633
VII. Additional Reserve3
Additions during the Year - -
Total 2,77,389 2,77,389
155
Schedules
(` in ‘000)
As at As at
March 31 2022 March 31 2021
VIII. General Reserve
Additions during the Year - -
Total 7,14,436 7,14,436
VIII. Employee Stock Option Reserve
Opening Balance - -
Additions during the Year 52,395 -
Total 52,395 -
IX. Balance in Profit and Loss Account 6,00,99,356 6,17,10,030
GRAND TOTAL (I+II+III+IV+V+VI+VII+VIII+IX+X) 15,77,03,848 15,79,75,845
1. Appropriations made for profit on sale of investments in held to maturity category, net of taxes and transfer to Statutory reserve.
2. Appropriations made for reversal of excess provision for depreciation in “Available for Sale” & “Held for Trading” categories, net of taxes and transfer
to Statutory reserve.
3. Additional Reserve represents reserve created in terms of section 29C of the National Housing Bank Act, 1987 out of the distributable profits by
erstwhile Gruh Finance Limited, which have been carried forward in accordance with the terms of the Merger scheme.
Schedule 3 - Deposits
(` in ‘000)
As at As at
March 31 2022 March 31 2021
A. l. Demand Deposits
i) From Banks 23,30,829 12,29,013
ii) From Others 5,22,92,322 4,44,40,963
ll. Savings Bank Deposits 34,61,68,624 29,26,03,166
lll. Term Deposits
i) From Banks 16,42,30,541 11,68,89,492
ii) From Others 39,82,83,815 32,45,59,614
Total 96,33,06,131 77,97,22,248
B. l. Deposits of branches in India 96,33,06,131 77,97,22,248
ll. Deposits of branches outside India - -
Total 96,33,06,131 77,97,22,248
Schedule 4 - Borrowings
(` in ‘000)
As at As at
March 31 2022 March 31 2021
l. Borrowings in India
i) Reserve Bank of India - -
ii) Other banks 1,11,52,737 53,00,000
iii) Other Institutions & agencies* 18,80,59,543 16,43,03,572
ll. Borrowings outside India - -
Total 19,92,12,280 16,96,03,572
Secured borrowings included in (I&II) above - 2,69,39,992
* Borrowings from other institutions and agencies includes Subordinated Debt of ₹ NIL (Previous Year: ₹ 160.00 crore) in the nature of Non-Convertible
Debentures.
156
Schedules
Schedule 5 - Other liabilities and provisions

(` in ‘000)
As at As at
March 31 2022 March 31 2021
l. Bills Payable 66,02,212 26,98,526
ll. Inter-office Adjustments(Net) 13,90,395 3,53,917
lll. Interest accrued 11,03,648 41,54,051
lV. Contingent Provision against Standard Assets 3,38,16,165 67,86,123
V. Provision for Income Tax (Net of Advance tax and Tax deducted at source) 8,51,591 -
Vl. Others* 85,71,525 1,27,61,475
Total 5,23,35,536 2,67,54,092
*Includes ₹ NIL (Previous year ₹ 440.01 crore) payable for inter Bank Participation Certificate (IBPC) transactions (Refer Note. 18.28)
Schedule 6 - Cash and balances with Reserve Bank of India

(` in ‘000)
As at As at
March 31 2022 March 31 2021
l. Cash In hand (including foreign currency notes) 1,17,30,810 76,43,781
ll. Balance with Reserve Bank of India
i) In Current Account 3,76,94,835 2,57,10,083
ii) In Other Accounts - -
Total 4,94,25,645 3,33,53,864
Schedule 7 - Balances with Banks and Money at call and short notice
(` in ‘000)
As at As at
March 31 2022 March 31 2021
I. In India
i) Balance with Banks
a) In Current Account 94,01,187 93,52,915
b) In Other Deposit Accounts 5,307 5,145
ii) Money at call & short notice
a) With banks 3,40,00,000 1,94,38,660
b) With other institutions 2,49,993 -
Total 4,36,56,487 2,87,96,720
II. Outside India
a) In Current Account 1,31,396 1,32,617
b) In Other Deposit Accounts - -
c) Money at call & short notice - -
Total 1,31,396 1,32,617
GRAND TOTAL (I+II) 4,37,87,883 2,89,29,337
157
Schedules
Schedule 8 - Investments
(` in ‘000)
As at As at
March 31 2022 March 31 2021
I. Investment in India in
i) Government Securities 28,02,21,062 24,11,24,246
ii) Other Approved Securities - -
iii) Shares 32,85,869 32,96,040
iv) Debentures & Bonds 28,83,459 65,74,938
v) Subsidiaries and /or joint ventures - -
vi) Others (Mututal Fund units, Certificate of Deposits and Pass Through 48,15,067 14,26,709
certificates, etc.)
Total 29,12,05,457 25,24,21,933
Less- Provision for Depreciation on Investment (4,18,356) (8,68,058)
Total 29,07,87,101 25,15,53,875
II. Investments outside India - -
Total - -
GRAND TOTAL (I+II) 29,07,87,101 25,15,53,875
Schedule 9 - Advances
(` in ‘000)
As at As at
March 31 2022 March 31 2021
A. i) Bills Purchased & Discounted - -
ii) Cash credits, overdrafts and loans repayable on demand 2,33,02,121 2,39,58,232
iii) Term loans* 91,64,47,146 79,21,70,527
Total 93,97,49,267 81,61,28,759
* Net of loans outstanding under Inter bank participation certificate ₹ NIL
(Previous Year: ₹ 2,124.13 crore)
B. i) Secured by tangible assets 31,14,99,914 24,65,64,233
(Including Advances against fixed deposits and book debts)
ii) Covered by Bank/Government Guarantees 5,75,97,555 8,71,06,363
iii) Unsecured 57,06,51,798 48,24,58,163
Total 93,97,49,267 81,61,28,759
C. I) Advances in India
i) Priority Sector 54,47,20,228 71,97,79,764
ii) Public Sector - -
iii) Banks - -
iv) Others 39,50,29,039 9,63,48,995
Total 93,97,49,267 81,61,28,759
II) Advances Outside India - -
Total - -
GRAND TOTAL (I+II) 93,97,49,267 81,61,28,759
158
Schedules
Schedule 10 - Fixed Assets

(` in ‘000)
As at As at
March 31 2022 March 31 2021
I) Premises
Gross Block
At cost as at March 31 of the preceding year 15,37,193 14,50,398
Addition during the Year 859 86,795
Deduction during the Year (427) -
Total 15,37,625 15,37,193
Depreciation
As at the beginning of the Year 62,885 42,178
Charge for the year 23,000 20,706
Deduction during the Year (406) -
Total 85,479 62,884
Net Block 14,52,146 14,74,309
II) Other Fixed Assets (Including Furniture & Fixture)
Gross Block
Addition during the Year 9,32,472 18,05,821
Deduction during the Year (1,30,203) (2,32,716)
Total 80,15,308 72,13,038
Depreciation
Addition during the Year 10,77,374 10,09,943
Deduction during the Year (1,23,470) (2,17,698)
Total 53,21,628 43,67,724
Net Block 26,93,680 28,45,314
III) Capital Work-in-progress (including capital advances) 17,33,026 5,47,499
GRAND TOTAL (I+II+III) 58,78,851 48,67,122
Schedule 11 - Other Assets

(` in ‘000)
As at As at
March 31 2022 March 31 2021
I) Inter Office adjustment (Net) - -
II) Interest Accrued 1,03,51,100 54,15,025
III) Advance Income Tax (Net of Provision) - 23,61,934
IV) Stationery and stamps - -
V) Non banking assets acquired in satisfaction of claims 5,85,643 6,37,343
VI) Others* 4,80,99,964 69,14,490
Total 5,90,36,707 1,53,28,792
* Includes Deferred Tax Assets of ₹ 1,218.43 crore (Previous Year: ₹ 228.42 crore) (Refer Note. 18.12)
* Includes Deposits in Rural Infrastructure and Development Fund amounting to ₹ 3,300.28 crore (Previous Year: ₹ NIL)
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Schedule 12 - Contingent liabilities

(` in ‘000)
As at As at
March 31 2022 March 31 2021
I) Claims against the Bank not acknowledged as debts 5,55,877 22,94,667
II) Liability for partly paid investments - -
III) Liability on account of outstanding forward exchange contracts 11,52,80,150 62,35,790
IV) Guarantees given on behalf of constituents
(a) In India 36,77,906 21,88,502
(b) Outside India - -
V) Acceptances, endorsements and other obligations 22,66,652 11,45,282
VI) Other items-Capital Commitments 22,74,668 15,54,822
Total 12,40,55,253 1,34,19,063
Schedule 13 - Interest Earned

(` in ‘000)
March 31 2022 March 31 2021
I) Interest/discount on advances/bills 12,18,38,960 10,89,17,939
II) Income on investments 1,47,83,033 1,17,41,524
III) Interest on balances with Reserve Bank of India and other inter-bank funds 14,05,144 11,82,112
IV) Others (Includes gain on IBPC) 6,84,065 34,00,544
Total 13,87,11,202 12,52,42,119
Schedule 14 - Other Income

(` in ‘000)
March 31 2022 March 31 2021
I) Commission, exchange and brokerage 1,17,76,328 83,96,950
II) Profit/(Loss) on sale of investments (Net) 23,20,827 30,87,128
III) Profit/(Loss) on revaluation of investments (Net) 4,49,702 (8,68,058)
IV) Profit/(Loss) on sale of fixed assets (Net) 4,057 11,134
V) Profit/(Loss) on exchange/derivative transactions (Net) 6,238 4,650
VI) Income earned by way of dividends etc. from subsidiaries/companies and/or joint - -
venture abroad/in India
VII) Miscellaneous income (Refer Note no. 18.34) 1,36,71,074 95,90,735
Total 2,82,28,226 2,02,22,539
Schedule 15 - Interest Expended

(` in ‘000)
March 31 2022 March 31 2021
I) Interest on deposits 4,31,81,992 3,96,29,029
II) Interest on Reserve Bank of India/Inter-bank borrowings 1,46,294 11,15,342
III) Others 82,42,730 88,64,192
Total 5,15,71,016 4,96,08,563
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Schedule 16 - Operating Expenses

(` in ‘000)
March 31 2022 March 31 2021
I) Payments to and provisions for employees 2,13,48,825 1,66,46,304
II) Rent, taxes and lighting 25,11,323 21,08,956
III) Printing and stationery 3,05,229 2,81,290
IV) Advertisement and publicity 2,66,545 5,73,915
V) Depreciation on bank’s property 11,00,374 10,30,649
VI) Directors’ fees, allowance and expenses 33,411 31,931
VII) Auditors’ fees and expenses (including branch auditors) (Refer Note. 18.37) 19,847 16,903
VIII) Law charges 1,61,562 1,13,700
IX) Postage, telegrams, telephones etc 5,71,004 4,58,608
X) Repairs and maintenance 98,293 1,02,825
XI) Insurance 10,80,289 10,37,324
XII) Other expenditure (Refer Note. 18.35) 77,37,675 57,66,445
Total 3,52,34,377 2,81,68,850
Schedule 17 – Significant accounting policies forming (including contingent liabilities) as at the date of the financial
part of the financial statements for the year ended statements and the reported income and expenses during
March 31, 2022 the reporting period. The Management believes that the
1. Background estimates used in the preparation of the financial statements
Bandhan Bank Limited (the ‘Bank’), incorporated on are prudent and reasonable. Any revisions to the accounting
December 23, 2014 in India, is a banking company, governed estimates are recognised prospectively in the current and
by the Banking Regulation Act, 1949. future periods. Actual results could differ from estimates.
Pursuant to the Banking license received from Reserve Bank 4. SIGNIFICANT ACCOUNTING POLICIES
4.1 Revenue Recognition
of India on June 17, 2015, the Bank has commenced its
Interest income is recognised in the profit and loss
banking operations from August 23, 2015.
account on an accrual basis, except in the case of
2. Basis of preparation interest on non-performing assets, which is recognised
The accompanying financial statements have been prepared as income on realisation, as per the income recognition
under the historical cost convention and on the accrual and asset classification norms of RBI.
basis of accounting, unless otherwise stated and comply
Profit or Loss on sale of investments is recognised in
with the requirements prescribed under the Third Schedule
the Profit and Loss Account. However, the profit on
(Form A and Form B) of the Banking Regulation Act, 1949.
sale of investments in ‘Held to Maturity’ category is
The accounting and reporting policies of the Bank used in
appropriated (net of applicable taxes and amount
the preparation of these financial statements conform to
required to be transferred to statutory reserve) to
Generally Accepted Accounting Principles in India (‘Indian
‘Capital Reserve Account’.
GAAP’), the guidelines issued by RBI from time to time,
the accounting standards notified under section 133 of the Income on discounted instruments is recognised over
Companies Act 2013, read together with paragraph 7 of the tenure of the instrument on a constant yield basis.
the Companies (Accounts) Rules 2014 and the Companies
Interest Income on PTC and Loan purchase through
(Accounting Standards) Amendment Rules, 2016 to the
assignment are recognised on a constant yield basis.
extent applicable and practices generally prevalent in the
banking industry in India. Dividend is accounted on an when the right to receive
the dividend is established.
3. Use of Estimates
The preparation of the financial statements in conformity Loan processing fees is accounted for upfront when it
with the generally accepted accounting principles requires becomes due.
the Management to make estimates and assumptions Compromise on settlement is accounted on receipt of
that affect the reported amounts of assets and liabilities settlement money.
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Commission received on guarantees is amortised on a Investments marked as AFS and HFT are marked-
straight-line basis over the period of the guarantee. to-market on a periodic basis as per relevant RBI
Annual/renewal fee on credit cards and debit cards is guidelines. The securities are valued scrip-wise
recognised upfront. and depreciation /appreciation is aggregated
for each category. Net appreciation in each
Locker Rent recognised on Straight Line Method basis
category, if any, is ignored, while net depreciation
over the period of Contract
is provided for. The book value of individual
All fees from deposit accounts are accounted for as and
securities is not changed consequent to the
when they are due and realised.
periodic valuation of investments.
Income from sale of Priority Sector Lending certificate
is recognised over the period of PSLC. ‘Held to Maturity’ securities shall be carried
at their acquisition cost or at amortized cost if
All other fees are accounted for as and when they
acquired at a premium over the face value. Any
become due.
premium over the face value of fixed rate and
4.2. Investments floating rate securities acquired is amortized over
A) Classification the remaining period to maturity on a constant
Investments are classified into three categories, yield basis and straight line basis respectively.
viz. Held to Maturity (HTM), Available for Sale Where in the opinion of the management, a
(AFS) and Held for Trading (HFT) at the time of diminution, other than temporary in the value
purchase. of investments classified under HTM has taken
Basis of classification: place, suitable provisions are required to be
made.
Investments that the Bank intends to hold till
maturity are classified as “Held to Maturity Quoted investments are valued at traded/
(HTM)”. quoted price available from recognized stock
exchanges, subsidiary general ledgers account
Investments that are held principally for sale
transactions, price list of RBI, or prices declared
within 90 days from the date of purchase are
by Primary Dealers Association of India (“PDAI”)
classified as “Held for Trading (HFT)”.
jointly with Financial Benchmarks India Pvt.
Investments, which are not classified in any of the Limited (FBIL). The market/fair value of unquoted
above two categories, are classified as “Available government securities which are in the nature of
for Sale (AFS)” investments. statutory liquidity ratio(SLR) securities included
However, for disclosure in the Balance Sheet, in the ‘Available for Sale’ and ‘Held for trading’
investments in India are classified under six categories is valued as per the rate published by
categories Government Securities, Other the FBIL.
approved securities, Shares, Debentures and Unquoted equity shares are valued at the break-
Bonds, Investment in Subsidiaries/ Joint Ventures up value, if the latest Balance Sheet is available or
and Others. at Re.1 as per the RBI guidelines.
An investment is classified as HTM, HFT or AFS at The units of Mutual Funds are valued at the latest
the time of its purchase and subsequent shifting repurchase price/ net asset value declared by the
amongst categories is done in conformity with Mutual Fund.
regulatory guidelines.
Transfer of securities between categories
Investments are classified as performing or non- of investments is accounted as per the RBI
performing as per RBI guidelines. Non performing Guidelines
investments are subjected to similar income
recognition and provisioning norms as prescribed Purchase and sale transactions in securities are
by RBI for non-performing advances. recorded under settlement date of accounting,
except in the case of equity shares where trade
B) Valuation
date accounting is followed.
Broken period interest and costs such as
brokerage paid at the time of acquisition of the Repurchase (‘repo’) and reverse repurchase
security are charged to Profit and Loss account. (‘reverse repo’) transactions including liquidity
Cost of investments is computed on weighted adjustment facility (with RBI) are accounted for as
average cost method. borrowing and lending transactions. Accordingly,
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securities given as collateral under an agreement Schedule 5 – Other Liabilities in the Balance Sheet.
to repurchase them continue to be held under Further, Incremental capital is maintained in respect of
the investment account of the Bank and the Bank borrower counter parties in the highest risk category, in
would continue to accrue the coupon/discount on line with stipulations by RBI.
the security during the repo period. Also, the Bank
4.4 Inter Bank Participation Certificate
continues to value the securities sold under repo
The Bank enters into Inter Bank Participation with risk
as per the investment classification of the security.
sharing as issuing Bank and the aggregate amount of
The difference between the clean price of the first
participation are reduced form the aggregate advance
leg and clean price of the second leg is recognized
outstanding .
as interest income/expense over the period of the
transaction in the profit and loss account. Gain on IBPC is the excess of income earned on the
participation pool and interest paid to the issuing Bank
4.3 Loans / Advances and Provisions thereon
and is recognised on accrual basis.
Advances are classified into performing and non-
performing advances (‘NPAs’) as per the RBI guidelines 4.5 Tangible Assets
and are stated net of specific provisions made towards All fixed assets are stated at historical cost less
NPAs. Further, NPAs are classified into sub-standard, accumulated depreciation and impairment loss, if any.
doubtful and loss assets based on the criteria stipulated Cost comprises the purchase price and any attributable
by the RBI. Provisions for NPAs are made for sub-standard cost of bringing the asset to its working condition for
and doubtful assets at rates as prescribed by the RBI. its intended use.
The Bank has a policy of deferment of installments
Asset under development as at the balance sheet date are
for micro (EEB) loan borrowers in case the group
shown as Capital Work in Progress. Advance paid towards
meetings have been suspended and the same has not
such development are shown as capital advance.
been considered as overdue for the purpose of NPA
classification. Any subsequent expenses is capitalised only when it
increases the future economic benefit / functioning
Amounts recovered against debts written off in earlier
capability.
years are recognised in the profit and loss account as
credit to Miscellaneous Income under the head ‘Other 4.6 Intangible Assets
Income’ Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
The Bank maintains general provision on standard
intangible assets are carried at cost less accumulated
advances as prescribed by RBI. In case of micro (EEB)
amortisation and accumulated impairment loss, if any.
lending portfolio, general provision on standard
advances will be maintained by Bank at 1% comprising 4.7 Depreciation
0.25% as per the minimum provisioning requirement Depreciation is charged over the estimated useful life
by RBI and 0.75% as additional provision. Provision of a fixed asset on a straight-line basis. The useful lives
made against standard assets is included in “Other of the groups of fixed assets are given below:
liabilities & provisions”.
Asset Useful life in years
In case of non-performing micro (EEB) lending portfolio, Leasehold Land 99
where 30 days have elapsed from the completion of Building 60
loan tenure, the Bank is making 100% provision. Improvements to leasehold 3
premises
Non-performing loans, which have been fully provided Furniture & Fixtures Interior 3
for, are written off when the prospect of recovery is Furniture & Fixtures Moduler 5
considered remote as per the management estimates. Furniture & Fixtures Others 10
Office equipments (including 5
Restructured assets are classified and provided for in
air conditioners)
accordance with the guidelines issued by RBI from time
Motor vehicles 8
to time. Computers 3
For entities with Unhedged Foreign Currency Electrical Installation and 10
Exposure (‘UFCE’), provision is made in accordance Equipment
with the guidelines issued by RBI, which requires Software/ Intangible Assets 3
Computer Networking/Server 6
to ascertain the amount of UFCE, estimate the
extent of likely loss and estimate the riskiness of Items costing less than R` 5,000/- shall be fully
unhedged position. This provision is classified under depreciated in the year of purchase.
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Assets purchased and sold during the year shall be 4.10 Employee Stock Option Scheme (ESOS)
depreciated on the basis of actual number of days the In case of Employee stock option plan, measurement
asset has been put to use. and disclosure of the employee share based
payment plans is done in accordance with Securities
In case of revision in the estimated useful life of assets
and Exchange Board of India (Share Based Employee
any unamortized depericiation shall be amortised over
Benefits) Regulations, 2014 and the Guidance Note
the remaining useful life of the assets.
on Accounting for Employee Share-based Payments,
4.8 Impairment issued by the Institute of Chartered Accountants
The carrying amounts of assets are reviewed at of India. The cost of equity-settled transactions
each balance sheet date to determine if there is any is measured using the intrinsic value method and
indication of impairment based on internal/external recognised, together with a corresponding increase
factors. An impairment loss is recognised wherever the in the ‘Stock options outstanding account’ in
carrying amount of an asset exceeds its recoverable reserve. The cumulative expense recognized for
amount which is the greater of the asset’s net selling equity-settled transactions at each reporting date
price and value in use. In assessing the value in use, until the vesting date reflects the extent to which
the estimated future cash flows are discounted to their the vesting period has expired and the Bank’s best
present value using pre-tax discount rate that reflects estimate of the number of equity instruments
current market assessment of the time value of money that will ultimately vest. The expense or credit
and risks specific to the asset. recognized in the statement of profit and loss for
After impairment, depreciation is provided on the revised a period represents the movement in cumulative
carrying amount of the asset over its remaining useful life. expense recognized as at the beginning and end of
that period and is recognized in employee benefits
4.9 Foreign Currency transactions
expense.
All transactions in foreign currency are recognised
at the exchange rate prevailing on the date of the In accordance with the RBI circular RBI/2021-22/95
transaction. DOR.GOV.REC.44/29.67.001/2021-22 “Guidelines
Monetary assets and liabilities in foreign currency are on Compensation of Whole Time Directors/ Chief
translated at the Balance Sheet date at the closing rates Executive Officers/ Material Risk Takers and Control
of exchange notified by the Foreign Exchange Dealers’ Function staff – Clarification” dated August 30, 2021,
Association of India (‘FEDAI’) and the resulting gains or Share-linked instruments granted to Whole Time
losses are recognised in the Profit and Loss account. Directors/ Chief Executive Officers/ Material Risk Takers
and Control Function staff after the accounting period
Non-monetary items which are measured in terms ending March 31, 2021, is accounted at fair valued on
of historical cost denominated in a foreign currency, the date of grant using Black-Scholes model.
are reported using the exchange rate at the date of
transaction. Non-monetary items, which are measured 4.11 Retirement and employee benefits
at fair value or others similar valuation denominated in Retirement benefit in the form of provident fund
a foreign currency, are translated using the exchange is a defined contribution scheme. The Bank has no
rate at the date when such value was determined. obligation, other than the contribution payable to
the provident fund. The Bank recognises contribution
Foreign currency income and expenditure items of
payable to the provident fund scheme as expenditure,
domestic operations are translated at the exchange
when an employee renders the related service. If
rates prevailing on the date of the transaction.
the contribution payable to the scheme for service
Foreign exchange spot and forward contracts received before the balance sheet date exceeds the
outstanding as at the Balance Sheet date and held contribution already paid, the deficit payable to the
for trading, are revalued at the closing spot and scheme is recognised as a liability after deducting
forward rates respectively as notified by FEDAI and at the contribution already paid. If the contribution
interpolated rates for contracts of interim maturities. already paid exceeds the contribution due for services
received before the balance sheet date, then excess is
Contingent liabilities at the Balance Sheet date on
recognised as an asset.
account of outstanding forward foreign exchange
contracts, guarantees, acceptances, endorsements and Gratuity liability is a defined benefit obligation and is
other obligations denominated in a foreign currency provided for on the basis of an actuarial valuation on
are stated at the closing rates of exchange notified by projected unit credit method made at the end of each
the FEDAI. financial year.
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The Bank provides for compensated absences based equity shareholders by the weighted average number
on actuarial valuation conducted by an independent of equity shares outstanding during the year.
actuary.
Diluted earnings per share reflect the potential dilution
Actuarial gains/losses are immediately taken to the that could occur if contracts to issue equity shares
profit and loss account and are not deferred. were exercised or converted during the year. Diluted
4.12 Income Taxes earnings per equity share is computed using the
Tax expenses comprises current and deferred tax. weighted average number of equity shares and dilutive
Current income tax is measured at the amount expected potential equity shares outstanding during the year,
to be paid to the tax authorities in accordance with the except where the results are anti-dilutive.
Income Tax Act, 1961. Deferred income taxes reflects
4.15 Provisions, Contingent Liabilities and Contingent
the impact of current year timing differences between
Assets
taxable income and accounting income for the year and
A provision is recognized when the Bank has a present
reversal of timing differences of earlier years.
obligation as a result of past event, it is probable that
Deferred Tax is measured based on the tax rates and an outflow of resources embodying economic benefits
the tax laws enacted or substantively enacted at the will be required to settle the obligation and a reliable
balance sheet date. Deferred tax assets are recognised estimate can be made of the amount of the obligation.
only to the extent that there is reasonable certainty Provisions are not discounted to their present value
that sufficient future taxable income will be available and are determined based on the best estimate
against which such deferred tax assets can be realised. If required to settle the obligation at the reporting date.
the Bank has carried forward unabsorbed depreciation These estimates are reviewed at each reporting date
and tax losses, all deferred tax assets is recognised only and adjusted to reflect the current best estimates.
to the extent that there is a virtual certainty supported
by convincing evidence that sufficient taxable income A contingent liability is a possible obligation that arises
will be available in future against which such deferred from past events whose existence will be confirmed
tax assets can be realised. by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the Bank
At each reporting date, the Bank re-assesses
or a present obligation that is not recognized because it is
unrecognised deferred tax assets. It recognises
not probable that an outflow of resources will be required
unrecognised deferred tax assets to the extent that it
to settle the obligation. A contingent liability also arises in
has become reasonably certain or virtually certain, as
extremely rare cases where there is a liability that cannot
the case may be, that sufficient future taxable income
be recognized because it cannot be measured reliably.
will be available against which such deferred tax assets
The Bank does not recognize a contingent liability but
can be realised.
discloses its existence in the financial statements.
The carrying amounts of deferred tax assets are
reviewed at each balance sheet date. The Bank writes Contingent Assets are not recognised in the financial
down the carrying amount of deferred tax assets to statements.
the extent that it is no longer reasonably certain or
4.16 Leases
virtually certain as the case may be, that sufficient
Leases where the lessor effectively retains substantially
future taxable income will be available against which
all the risks and benefits of ownership of the leased
deferred tax asset can be realised. Any such write down
items are classified as operating leases. Operating lease
is reversed to the extent that it becomes reasonably
payments are recognised as an expense in the profit
certain or virtually certain, as the case may be that
and loss account on a straight line basis over the lease
sufficient future taxable income will be available.
term.
4.13 Non-banking assets
Non-banking assets (NBAs) acquired in satisfaction of 4.17 Cash and Cash equivalent
claims are valued at the market value on a distress Cash and cash equivalents include cash in hand,
sale basis or value of loan, whichever is lower. Further, balances with RBI, balances with other banks and
the Bank creates provision on these assets as per the money at call and short notice.
extant RBI guidelines or specific RBI directions.
4.18 Share Issue Expenses
4.14 Earnings per Share Share issue expenses are adjusted against the
Basic earnings per share is calculated by dividing the Securities Premium Account in terms of Section 52(2)
net profit or loss after tax for the period attributable to of the Companies Act, 2013.
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Schedule 18 -Notes to accounts forming part of the financial statements for the year ended March 31, 2022
The following disclosures have been made taking into account the requirements of Accounting Standards (ASs) and Reserve Bank of India
(RBI) guidelines in this regard.
18.1 "Provisions & Contingencies" recognised in the Profit & Loss Account comprise:
(` in crore)
Particulars
March 31 2022 March 31 2021
Provision for Income Tax
- Current Tax 1,010.87 761.52
- Deferred tax (990.02) (18.32)
- Taxes of Earlier Years (18.02) -
Total Tax Expenses 2.83 743.20
Provision for Standard assets 1,535.42 (583.44)
Provision for non-performing assets [Includes bad debts written off ₹ 3,244.13 5,163.17 4,331.97
crore (Previous Year:₹ 2,038.35 crore)]
Provision for depreciation in value of Investments* - -
Provision for restructured assets 1,167.59 62.05
Provision for unhedged foreign currency exposure 0.50 0.06
Provision for country risk - -
Provision for One time Settlement 3.36 -
Provision for other contingencies 14.74 9.43
Total 7,887.61 4,563.27
* Based on RBI Master Direction on Financial Statements – Presentation and Disclosures issued on 30th August, 2021 updated on 15th November,
2021 Provision for depreciation in value of investments, which was hitherto classified as part of provisions and contingencies has been reclassified
as part of other income. Accordingly, the Bank has reclassified provision for investments of ₹ 44.96 crore for the year ended March 31, 2022 and
₹ (86.80 crore) for the year ended March 31, 2021 from provisions and contingencies to income from investments. There is no impact of this
change on the net profit/loss of the current or previous year.
18.2 Capital
During the year ended March 31, 2022, the Bank has allotted 1,66,666 Equity Shares (Previous Year- 3,51,358 Equity Shares) of
₹ 10/- each in respect of stock option exercised aggregating to ₹ 3.00 crore (Previous Year- ₹ 7.27 crore). Accordingly, share capital
increased by ₹ 0.17 crore and share premium increased by ₹ 2.83 crore respectively (Previous Year- ₹ 0.35 crore and ₹ 6.92 crore
respectively).
Details of movement in the paid-up equity share capital of the Bank are given below:
(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
At the beginning of the year 1610.60 1610.25
Addition pursuant to share issued during the year 0.17 0.35
Outstanding at the end of the year 1610.77 1610.60
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18.3 Proposed dividend

The Board of Directors at its meeting held on May 13, 2022, has proposed a dividend of NIL per share (Previous Year- ₹ 1 per share)
for the year ended March 31, 2022. In terms of revised Accounting Standard (AS) 4 ‘Contingencies and Events occurring after the
Balance sheet date as notified by the Ministry of Corporate Affairs through amendments to Companies (Accounting Standards)
Amendment Rules, 2016, the Bank has not accounted for proposed dividend aggregating to ₹ NIL (Previous Year: ₹ 161.06 crores)
as a liability for the year ended March 31, 2022.
18.4 The capital adequacy ratio of the Bank, calculated as per the RBI guidelines (under Basel III) is set out below:
A) Composition of Regulatory Capital
(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
i) Common Equity Tier 1 capital (CET 1) 17,136.83 16,876.87
ii) Additional Tier 1 capital - -
iii) Tier 1 capital (i + ii) 17,136.83 16,876.87
iv) Tier 2 capital 1,097.40 740.73
v) Total capital (Tier 1+Tier 2) 18,234.23 17,617.60
vi) Total Risk Weighted Assets (RWAs) 90,697.31 75,088.12
vii) CET 1 Ratio 18.89 22.48
viii) Tier 1 Ratio 18.89 22.48
ix) Tier 2 Ratio 1.21 0.99
x) Capital to Risk Weighted Assets Ratio (CRAR) 20.10 23.47
xi) Leverage Ratio 12.23 14.63
xii) Percentage of the shareholding of Government of India NIL NIL
xiii) Amount of paid-up equity capital raised during the year 3.00 7.27
xiv) Amount of non-equity Tier 1 capital raised during the year: - -
xv) Amount of Tier 2 capital raised during the year: - -
In accordance with the RBI guidelines, banks are required to make consolidated Pillar 3 and Net Stable Funding Ratio (NSFR)
disclosures under the Basel III Framework. These disclosures are available on the Bank’s website at the following link:https://
www.bandhanbank.com/regulatory-disclosures. The disclosures have not been subjected to audit by the statutory auditors
of the Bank.
B) Draw Down from Reserve

There has been no draw down from reserves during the year ended March 31, 2022 and March 31, 2021.
167
18.5 (A) Investments
a) Composition of Investment Portfolio As at March 31, 2022
(` in crore)
Investments in India Investments outside India
Subsid- Government
Total
Govern- Other iaries Total securities Subsidiaries Total
Particulars Investments
ment Approved Shares Debentures and/ Others Investments (including and/or joint Others Investments
outside
Securities Securities and Bonds or joint in India local ventures
India
ventures authorities)
Schedules
Held to Maturity
Gross 20,055.58 - - - - - 20,055.58 - - - - 20,055.58
Less: Provision for non- - - - - - - - - - - - -
performing investments
(NPI)
Net 20,055.58 - - - - - 20,055.58 - - - - 20,055.58
Available for Sale
Gross 7,917.14 - 328.59 288.34 - 481.51 9,015.58 - - - - 9,015.58
Less: Provision for 41.84 - - - - - 41.84 - - - - 41.84
depreciation and NPI
Net 7,875.30 - 328.59 288.34 - 481.51 8,973.74 - - - - 8,973.74
168
Held for Trading
Gross 49.39 - - - - - 49.39 - - - - 49.39
Less: Provision for - - - - - - - - - - - -
Net 49.39 - - - - - 49.39 - - - - 49.39
Total Investments 28,022.11 - 328.59 288.34 - 481.51 29,120.55 - - - - 29,120.55
Less: Provision for non- 41.84 - - - - - 41.84 - - - - 41.84
Net 27,980.27 - 328.59 288.34 - 481.51 29,078.71 - - - - 29,078.71
b) Composition of Investment Portfolio As at March 31, 2021
(` in crore)
Investments in India Investments outside India
Subsid- Government
Total
Govern- Other iaries Total securities Subsidiaries Total
Particulars Investments
ment Approved Shares Debentures and/ Others Investments (including and/or joint Others Investments
outside
CORPORATE OVERVIEW
Securities Securities and Bonds or joint in India local ventures

India
ventures authorities)
Held to Maturity
Schedules
Gross 16,709.96 - - - - - 16,709.96 - - - - 16,709.96

Less: Provision for non- - - - - - - - - - - - -
(NPI)
Net 16,709.96 - - - - - 16,709.96 - - - - 16,709.96
STATUTORY REPORTS
Available for Sale

Gross 7,377.75 - 329.60 657.49 - 142.67 8,507.51 - - - - 8,507.51
Less: Provision for 86.80 - - - - - 86.80 - - - - 86.80
Net 7,290.95 - 329.60 657.49 - 142.67 8,420.71 - - - - 8,420.71
Held for Trading
169
Gross 24.72 - - - - - 24.72 - - - - 24.72
Net 24.72 - - - - - 24.72 - - - - 24.72

Total Investments 24,112.43 - 329.60 657.49 - 142.67 25,242.19 - - - - 25,242.19
Less: Provision for non- 86.80 - - - - - 86.80 - - - - 86.80
Net 24,025.63 - 329.60 657.49 - 142.67 25,155.39 - - - - 25,155.39
Schedules
B) Movement of Provisions for Depreciation and Investment Fluctuation Reserve

(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
i) Movement of provisions held towards depreciation on investments
a) Opening balance 86.80 -
b) Add: Provisions made during the year 92.74 127.12
c) Less: Write off / write back of excess provisions during the year (137.70) (40.32)
d) Closing balance 41.84 86.80
ii) Movement of Investment Fluctuation Reserve
a) Opening balance 170.65 87.85
b) Add: Amount transferred during the year 10.65 82.80
c) Less: Drawdown - -
d) Closing balance 181.30 170.65
iii) Closing balance in IFR as a percentage of closing balance of investments 2% 2%
in AFS and HFT/Current category
C) Sale and transfers of Securities to / from HTM Category

During the year ended March 31, 2022 and the previous year ended March 31, 2021 the Bank has not sold and transferred securities
to or from HTM category exceeding 5% of the book value of investment held in HTM category at the beginning of the year. The 5%
threshold referred to above does not include onetime transfer of securities to/from HTM category with the approval of Board of
Directors permitted to be undertaken by banks as per extant RBI guidelines, sale of securities under pre-announced Open Market
Operation (OMO) auction to the RBI and sale of securities or transfer to AFS / HFT consequent to the reduction of ceiling on SLR
securities under HTM.
D) Repo Transactions
(` in crore)
Minimum Maximum Daily Average Outstanding
Particulars outstanding outstanding outstanding as at
during the year during the year during the year March 31 2022
Securities sold under Repo
i. Government securities - 7,696.31 2,511.27 -
(372.57) (5,136.09) (2,560.67) (2,694.00)
ii. Corporate debt securities - - - -
- - - -
iii. Any Other Securities - - - -
- - - -
Securities purchased under reverse repo
i. Government securities 320.00 8,928.00 3,994.72 3,325.00
(150.00) (14,960.52) (3,807.84) (1,900.00)
ii. Corporate debt securities - - - -
- - - -
iii. Any Other Securities - - - -
- - - -
Previous year figures are shown in"()".
170
Schedules
E) Non SLR Investment Portfolio

i) Issuer composition of Non SLR investments
(` in crore)
Extent of Extent of ‘Below Extent of Extent of
Issuer Amount Private Investment ‘Unrated’ ‘Unlisted’
Placement Grade’ Securities Securities Securities
(1) (2) (3) (4) (5) (6)
(i) Public Sector Units 13.66 - - - -
(178.33) - - - -
(ii) Financial Institutions 50.01 - - - -
(127.52) - - - -
(iii) Banks 472.49 472.49 - - -
(393.54) (325.00) - - -
(iv) Private Corporates 91.03 91.03 - - 30.00
(163.53) (163.53) - - (50.00)
(v) Subsidiaries / Joint Ventures - - - - -
- - - - -
(vi) Others 476.52 456.52 - - -
(266.85) (245.83) - - -
(vii) Provision held towards - - - - -
depreciation - - - - -
Total 1,103.71 1,020.04 - - 30.00
(1,129.77) (734.37) - - (50.00)
Amounts reported under columns (3), (4), (5) and (6) above are not mutually exclusive.
Discounted instruments are reported at carrying cost
Previous year figures are shown in”()”.
ii) Non performing Non-SLR investments

The Bank does not have any Non performing Non-SLR investment as on March 31, 2022 and March 31, 2021.
18.6 Asset Quality

A) Classification of Advances and provisions held
(` in crore)
Standard Non -Performing Total
Total Sub - Doubtful Loss Total Non -
Particulars
Standard standard Performing
Advances Advances
Gross Standard Advances and NPAs
Opening Balance 78,751.84 5,067.21 259.40 431.15 5,757.76 84,509.60
(66,240.55) (440.11) (128.16) (424.51) (992.78) (67,233.33)
Add: Additions during the year 9,430.27
(6,887.84)
Less: Reductions during the year* 8,808.03
(-2122.86)
Closing balance 92,410.70 1,746.28 464.81 4,168.91 6,380.00 98,790.70
(78,751.84) (5,067.21) (259.40) (431.15) (5,757.76) (84,509.60)
*Reductions in Gross NPAs due to:
i) Upgradation 5,006.55 5,006.55
(72.20) (72.20)
ii) Recoveries (excluding 554.62 554.62
recoveries from upgraded (12.31) (12.31)
accounts)
iii) Technical/ Prudential Write- 3,244.13 3,244.13
offs (2,038.35) (2,038.35)
iv) Write-offs other than those 2.73 2.73
under (iii) above (-) (-)
171
Schedules
(` in crore)
Particulars
Advances Advances
Provisions (excluding Floating Provisions)
Opening balance of provisions held 678.61 2,326.91 138.66 431.15 2,896.73 3,575.34
(1,200.00) (112.96) (65.91) (424.51) (603.38) (1,803.38)
Add: Fresh provisions made during 6,217.86
the year (4,360.60)
Less: Excess provision reversed/ Write- 4,298.82
off loans (-2067.25)
Closing balance of provisions held 3,381.62 399.48 247.38 4,168.91 4,815.77 8,197.39
(678.61) (2,326.91) (138.66) (431.15) (2,896.73) (3,575.34)
Net NPAs
Opening Balance 2,740.30 120.74 - 2,861.03
(327.15) (62.25) - (389.40)
Add: Fresh additions during the year 3,212.41
(2,527.24)
Less: Reductions during the year 4,509.21
(-55.61)
Closing Balance 1,346.80 217.43 - 1,564.23 1,564.23
(2,740.30) (120.74) - (2,861.03) (2,861.03)
B) Classification of Advances and provisions held (` in crore)

Particulars
Advances Advances
Floating Provisions
Opening Balance - - - - - -
(-) (-) (-) (-) (-) (-)
Add: Additional provisions made -
during the year (-)
Less: Amount drawn down during the -
year (-)
Closing balance of floating provisions -
(-)
Technical write -offs and the recoveries made thereon
Opening balance of Technical/ 3,011.88
Prudential written-off accounts (1,004.30)
Add: Technical/ Prudential write-offs 3,244.13
during the year (2,038.35)
Less: Recoveries made from previously 388.13
technical/ prudential written-off (30.77)
accounts during the year
Closing balance 5,867.88
(3,011.88)
172
Schedules
C) Ratios (in per cent)

(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
Gross NPA to Gross Advances 6.46% 6.81%
Net NPA to Net Advances 1.66% 3.51%
Provision coverage ratio (without Prudential write-offs) 75.48% 50.31%
Provision coverage ratio (including Prudential write-offs) 87.23% 67.38%
D) Overseas Assets, NPAs and Revenue
The Bank does not have any overseas assets as on March 31, 2022 and March 31, 2021.
E) Off-balance Sheet SPVs sponsored
The Bank has not sponsored any special purposes vehicle which is required to be consolidated as per accounting norms.
F) Transfer of Loan Exposures
Details of loans transferred excluding through Inter- Bank Participation Certificate (IBPC) & acquired during the year ended March
31, 2022 under the RBI Master Direction on Transfer of Loan Exposures dated September 24, 2021 are given below:
i) Details of Financial Assets sold to Securitisation / Reconstruction company for Reconstruction
The details of stressed loans transferred during the year ended March 31, 2022 (Previous Year ended March 31, 2021- NIL) to
ARCs are given below:
Particulars Value (To ARCs)

No of accounts 8
Aggregate principal outstanding of loans transferred (₹ in crores) 9.87
Weighted average residual tenor of the loans transferred (in years) 2.57
Net book value of loans transferred (at the time of transfer) (₹ in crores) 8.39
Aggregate consideration (including interest) (₹ in crores) 10.26
Additional consideration realized in respect of accounts transferred in earlier years -
Quantum of excess provisions reversed to Profit and Loss Account (₹ in crores) 1.48
ii) Details of Non Performing Financial Assets Purchased
The Bank did not purchase any Non Performing Financial Assets during the year ended March 31, 2022 and March 31, 2021.
iii) Details of Special Mention Account (SMA) or Stressed Financial Assets Purchased
The Bank did not purchase any Special Mention Account (SMA) or Stressed Financial Assets during the year ended March 31,
2022 and March 31, 2021.
(iv) Details of Loan Acquired through assignment
Details of Loan not in default acquired through assignment during the year ended March 31, 2022 and March 31, 2021 are
given below:
Particulars Value
Aggregate amount of loans acquired (₹ in crores) 403.83
(124.78)
Aggregate amount of loans O/s (₹ in crores) 425.21
(86.95)
Weighted average residual maturity (in years) 2.07
(5.58)
Weighted average holding period by originator (in years) 0.68
(1.12)
Retention of beneficial economic interest by the originator 10.92%
(7.25%)
Note:
i) The Loans acquired does not have any Tangible security coverage except from M/s India Shelter Finance having 100% coverage.
(ii) The loans acquired are not rated.
173
Schedules
G) Disclosure of Provision for Frauds

(` in crore)
Particulars
March 31 2022 March 31 2021
No. of Frauds reported during the year to Reserve Bank of India 344 211
Amount involved in such Frauds 450.03 34.17
Amount involved in such Frauds net of recoveries / write-offs 449.23 31.45
Amount of provision made/held for such frauds 449.23 31.45
Amount of Unamortised provision debited from ‘other reserves’ as at the end of - -
the year
Note: The information on frauds as above includes certain accounts which were already reckoned as NPAs in the prior years and these are fully
provided for.
H) Disclosure under Resolution Framework for COVID-19-related Stress

Details of resolution plan implemented under the Resolution Framework for COVID-19 related Stress as per RBI circular dated August
06, 2020 (Resolution Framework 1.0) and COVID-19 related stress of Individuals and Small Businesses dated May 5, 2021 (Resolution
Framework 2.0) are given below:
(` in crore)
Exposure to accounts Exposure to accounts
classified as Standard Of (A), Of (A) classified as Standard
Of (A)
consequent to aggregate debt amount consequent to
amount
implementation of that slipped into paid by the implementation of
Type of borrower written off
resolution plan– Position NPA during the borrowers resolution plan –
during the
as at the end of the half-year ended during the Position as at the end of
half-year
previous half-year i.e March 31 2022 half- year* this half-year i.e March
September 30, 2021 (A) 31 2022**
Personal Loans (Housing) 1,147.62 125.34 - 11.83 1,010.44
Corporate persons 50.20 - - 15.60 34.60
Of which, MSMEs - - - - -
Others 7,120.33 175.68 26.43 1,019.18 5,899.04
Total 8,318.15 301.02 26.43 1,046.62 6,944.08
* Net of increase in exposure during the period.
**Including exposure of ` 474.98 crores for which moratorium ended before March 31, 2022.
I) Provisions on Standard Assets

(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
Provisions towards Standard Assets* 3,381.62 678.61
*Includes accelerated provision of ₹ 394.92 crores (Previous Year- ₹ 387.96 crores) and also includes advances restructured under the Resolution
Framework for COVID-19-related Stress amounting to ₹ 2,680.74 crores (Previous Year- ₹ 62.05 crores)
J) Disclosure on Advances
(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
Gross Advances (Including IBPC/Assignment) 98,790.70 86,633.73
Less: Managed Advance (IBPC/Assignment) - 2,124.13
Gross Advances (Excluding IBPC/Assignment) 98,790.70 84,509.60
Less: Provision on NPA 4,815.77 2,896.73
Net Advances (Refer Schedule 9) 93,974.93 81,612.87
174
Schedules
18.7 Exposures
A) Exposure to Real Estate Sector
(` in crore)
As at As at
Category
March 31 2022 March 31 2021
a) Direct exposure*
(i) Residential Mortgages - represents lending fully secured by mortgages 24,234.13 20,334.29
on residential property that is or will be occupied by the borrower or
that is rented.
(ii) Commercial Real Estate - represents lending secured by mortgages on 860.18 1,198.35
commercial real estate
(iii) Investments in Mortgage Backed Securities (MBS) and other securitised - -
exposures –
1. Residential - -
2. Commercial Real Estate - -
b) Indirect exposure
Fund based and non-fund based exposures on National Housing Bank (NHB) 485.07 194.12
and Housing Finance Companies (HFCs).
Total Exposure to Real Estate Sector 25,579.38 21,726.76
* Includes purchase of retail mortgage loans through IBPC route.
B) Exposure to Capital Market

(` in crore)
As at As at
Category
March 31 2022 March 31 2021
Direct investments in equity shares, convertible bonds, convertible debentures 328.59 329.60
and units of equity-oriented mutual funds the corpus of which is not exclusively
invested in corporate debt
Advances against shares/bonds/debentures or other securities or on clean basis - -
to individuals for investment in shares (including IPOs/ESOPs), convertible bonds,
convertible debentures, and units of equity-oriented mutual funds
Advances for any other purposes where shares or convertible bonds or convertible - -
debentures or units of equity-oriented mutual funds are taken as primary security
Advances for any other purposes to the extent secured by the collateral security of - -
shares or convertible bonds or convertible debentures or units of equity-oriented
mutual funds i.e. where primary security other than shares/convertible bonds/
convertible debentures/units of equity-oriented mutual funds does not fully cover
the advances
Secured and unsecured advances to stockbrokers and guarantees issued on behalf 40.00 25.20
of stockbrokers and market makers
Loans sanctioned to corporates against the security of shares/ bonds/debentures - -
or other securities or on clean basis for meeting promoter’s contribution to the
equity of new companies in anticipation of raising resources
Bridge loans to companies against expected equity flows/issues - -
Underwriting commitments taken up in respect of primary issue of shares or - -
convertible bonds or convertible debentures or units of equity-oriented mutual
funds
Financing to stock brokers for margin trading - -
All exposures to Venture Capital Funds (both registered and unregistered) - -
Total Exposure to Capital Market 368.59 354.80
C) Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the Bank
During the year ended March 31, 2022 and March 31, 2021, the Bank’s credit exposure to single borrower and group borrowers was
within the prudential exposure limits prescribed by RBI.
175
Schedules
D) Unsecured Advances against Intangible Collaterals

During the year ended March 31, 2022 and March 31, 2021, there are no unsecured advances for which intangible securities such
as charge over the rights, licenses, authority etc. has been taken as collateral by the Bank.
E) Risk Category wise Country Exposure
The Bank does not have any Risk Category wise country exposure for the year ended March 31, 2022 and March 31, 2021.
F) Unhedged Foreign Currency Exposure
During the year ended March 31, 2022, the Bank made provision of ₹ 0.50 crores (Previous Year ₹ 0.06 crores) towards un-hedged
foreign currency exposure. As on March 31, 2022, the Bank held cumulative provision towards un-hedged foreign currency exposure
of ₹ 0.56 crores (Previous Year ₹ 0.06 crores).
As on March’22, the Bank is required to provide additional Capital of ₹ 4.58 crores (Previous year ₹ NIL) towards borrowers having
un-hedged foreign currency exposures in acordance with RBI guidelines.
G) Intra Group Exposures
The Bank did not have any intra group exposure during the year ended March 31, 2022 and March 31, 2021.
H) Factoring Exposures
The Bank did not have any factoring exposure during the year ended March 31, 2022 and March 31, 2021.
18.8 Miscellaneous
Disclosure of penalties imposed by RBI
Penalty amounting to ₹ 1.00 crore has been levied on the Bank by RBI during the year ended March 31, 2022 and ₹ NIL as on March
31, 2021. The details are specified below:
Details Particulars
Nature of Breach Contravention of RBI directions on ‘Lending to Non-Banking Financial Companies (NBFCs) and
Bank Finance to NBFCs
Number of Instances of default 4
Quantum of penalty imposed INR 1 Crore
Other details On July 7, 2021, the Bank had received an Order dated July 6, 2021, wherein it was stated that
by providing credit to the borrower, a NBFC, for the purpose of providing loans and advances
to its group companies, the Bank had contravened the RBI directions and the Adjudicating
Committee of Executive Directors had passed the order stating that a penalty of ₹ 1.00 crore
is imposed on the Bank. The Bank had paid the penalty amount of ₹ 1.00 crore on July 8, 2021
and the same was intimated to RBI vide email dated July 8, 2021.
18.9 Employee Benefits

A) Gratuity
The Bank has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity
on departure and it is computed at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with
an insurance company in the form of qualifying insurance policy.
The following tables summarize the components of net benefit expense recognised in the profit and loss account and the funded
status and amounts recognised in the balance sheet for the Gratuity plan.
(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
i) Table Showing changes in present value of Defined Benefit obligation:
Present value of defined benefit obligations as at beginning of the year 135.09 107.96
Interest cost 8.96 7.19
Current service cost 27.32 20.42
Acquisitions cost - -
Benefit Paid 4.73 2.77
Actuarial loss/(gain) on obligations 1.48 2.29
Present value of defined benefit obligations as at end of the year 168.13 135.09
176
Schedules
(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
ii) Table showing fair value of plan assets:
Fair value of plan assets as at beginning of the year 102.12 59.90
Acquisitions cost - -
Expected return on plan assets 8.68 5.56
Contributions paid 40.00 41.86
Benefits Paid 4.73 2.77
Acquisition Adjustment
Actuarial gain/(loss) on plan assets (5.25) (2.43)
Fair value of plan assets at end of the year 140.82 102.12
iii) Actuarial Gain/(Loss) recognised:
Actuarial (gain)/loss on obligations 1.48 2.29
Actuarial (loss)/gain for the year-Plan assets. (5.25) (2.43)
Net Actuarial gain/(loss) recognised in the year (6.73) (4.72)
iv) The amounts to be recognised in the Balance Sheet and Profit and Loss
Account:
Present value of obligations at the end of the year 168.13 135.09
Fair value of plan assets at the end of the year 140.82 102.12
Net liability recognised in balance sheet 27.31 32.97
v) The Principal assumptions used in the actuarial valuation are shown
below:
Discount Rate 7.00% 6.75%
Salary Escalation 8.00% 8.00%
Withdrawal Rate 8.00% 8.00%
Expected rate of return on assets 7.25% 7.25%
vi) Expenses Recognised in Profit and Loss Account:
(` in crore)
Particulars
March 31 2022 March 31 2021
Current Service Cost 27.32 20.42
Interest Cost 8.96 7.19
Expected return (8.68) (5.56)
Net Actuarial loss/(Gain) recognised in the year 6.73 4.72
Expenses recognised in profit and loss account 34.33 26.77
Actual return on plan assets 3.43 3.13
vii) Amounts for the current and previous year are as follows:
(` in crore)
As at As at As at As at As at
Particulars March 31 March 31 March 31 March 31 March 31
2022 2021 2020 2019 2018
a) Defined Benefit Obligations at the end of the period (168.13) (135.09) (107.96) (65.07) (42.86)
b) Plan Assets at the end of the period 140.82 102.12 59.90 18.65 17.65
c) Deficit (27.31) (32.97) (48.06) (46.42) (25.21)
d) Experience adjustments on plan liabilities [(Gain)/ 1.48 2.29 18.83 6.03 (1.19)
Loss]
e) Experience adjustments on plan assets [Gain/(Loss)] (5.25) (2.43) (1.51) (0.13) 0.11
177
Schedules
viii) The Major categories of Plan Assets as a percentage of the fair value of Total Plan Asset are as follows:
(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
Insurance Managed Fund 100% 100%
ix) The estimates of future salary increases considered in actuarial valuation, takes account of inflation, seniority and other relevant
factors, such as supply and demand in the employment market.
x) The Bank expects to contribute ₹ 20 crores to gratuity fund in 2022-23 (Previous year ended March 31, 2021: ₹ 20 crores)
xi) The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the year
over which the obligation is to be settled.
B) Provident Fund
Amount incurred as expense for defined contribution to Provident Fund is ₹ 115.50 Crore (Previous year ended March 31, 2021 :
₹ 92.60 Crores).
C) Compensated Absences
The Bank has provided for compensatory leaves which can be availed and not encashed as per policy of the Bank as present value
obligation of the benefit at related current service cost measured using the Projected Unit Credit Method on the basis of an actuarial
valuation. The Bank has accordingly booked ₹ 43.42 Crore (Previous Year ₹ 38.45 Crore) in the books of accounts for the year.
D) The Code on Social Security, 2020
The Code on Social Security 2020 (‘the Code’) relating to employee benefits, during the employment and postemployment, has
received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of
Labour and Employment has released draft rules for the Code on November 13, 2020. The effective date from which the changes
are applicable is yet to be notified and rules for quantifying the financial impact are not yet issued. The Bank will assess the impact
of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the
related rules to determine the financial impact are published.
18.10 Segment Reporting

A) Segment Identification
Pursuant to the guidelines issued by RBI on AS 17 - Segment Reporting - Enhancement of Disclosures dated April 18, 2007, the
following business segments have been reported:
i) Treasury:
Treasury operations include investments in sovereign securities and trading operations. The Treasury segment also includes
the central funding unit.
ii) Retail banking:
Includes lending to individuals/small businesses through the branch network and other delivery channels subject to the
orientation, nature of product, granularity of the exposure and low value of individual exposure thereof. It also includes liability
products, card services, internet banking, mobile banking, ATM services and NRI services. All deposits sourced by branches are
classified in retail category.
iii) Corporate/Wholesale Banking:
Includes corporate relationships not included under Retail Banking.
iv) Other Banking Business:
Include para banking activities like third party product distribution and other banking transaction not covered under any of the
above three segments.
Income, expenses, assets and liabilities are either specifically identified with individual segments or are allocated to segments
on a systematic basis.
The liabilities of the Bank are first used by the units generating the same. Any excess liabilities of the units are pooled to central
funding unit (Treasury). Treasury then lends these funds to other units at appropriate rates.
The transfer pricing mechanism of the Bank is periodically reviewed. The segment results are determined based on the transfer
pricing mechanism prevailing for the respective reporting periods.
178
Schedules
Revenues of the Treasury segment primarily consist of fees and gains or losses from trading operations and interest
income on the investment portfolio. The principal expenses of the segment consist of interest expense on funds borrowed
from external sources and other internal segments, premises expenses, personnel costs, other direct overheads and
allocated expenses
Revenues of the Corporate/Wholesale Banking segment consist of interest and fees earned on loans given to customers falling
under this segment and fees arising from these. Revenues of the Retail Banking segment are derived from interest earned on
loans classified under this segment, fees for banking services and ATM interchange fees. Expenses of the Corporate/Wholesale
Banking and Retail Banking segments primarily comprise interest expense on deposits and funds borrowed from other internal
segments, infrastructure and premises expenses for operating the branch network and other delivery channels, personnel
costs, other direct overheads and allocated expenses.
Segment income includes earnings from external customers and from funds transferred to the other segments. Segment result
includes revenue as reduced by interest expense and operating expenses and provisions, if any, for that segment. Segment-
wise income and expenses include certain allocations. Inter segment interest income and interest expense represent the
transfer price received from and paid as per the transfer pricing mechanism presently followed by the Bank.
B) Segment Information
i) Primary (Business Segment)
(` in crore)
Corporate/ Other
Retail
Particulars Treasury Wholesale banking Total
Banking
Banking business
Segment Revenue
Gross interest income (external customers) 1,590.62 11,804.70 475.80 - 13,871.12
(1,277.59) (10,735.60) (511.02) - (12,524.21)
Other income 277.67 2,197.23 - 347.92 2,822.82
(222.03) (1,596.51) - (203.72) (2,022.26)
Total income as per profit and Loss Account 1,868.29 14,001.93 475.80 347.92 16,693.94
(1,499.62) (12,332.11) (511.02) (203.72) (14,546.47)
Add: Inter segment interest income - 192.67 - - 192.67
(523.70) - - - (523.70)
Total segment revenue 1,868.29 14,194.60 475.80 347.92 16,886.61
(2,023.32) (12,332.11) (511.02) (203.72) (15,070.17)
Less: Interest expenses 887.83 4,094.60 174.67 - 5,157.10
(1,042.73) (3,837.08) (81.05) - (4,960.86)
Less: Inter segment interest expenses 130.43 - 60.89 1.35 192.67
- (298.45) (223.40) (1.85) (523.70)
Less: Operating expenses 122.46 3,312.20 83.48 5.30 3,523.44
(113.38) (2,637.40) (63.53) (2.58) (2,816.89)
Operating Profit 727.57 6,787.80 156.76 341.27 8,013.40
(867.21) (5,559.18) (143.04) (199.29) (6,768.72)
Less: Provisions for non performing assets/others - 7,816.11 68.67 - 7,884.78
(0.27) (3,807.47) (12.32) (0.01) (3,820.07)
Segment results 727.57 (1,028.31) 88.09 341.27 128.62
(866.93) (1,751.71) (130.72) (199.28) (2,948.65)
Less: provisions for tax 2.83
(743.20)
Net profit 125.79
(2,205.45)
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(` in crore)
Corporate/ Other
Retail
Particulars Treasury Wholesale banking Total
Banking
Banking business
Other information
Segment assets 37,427.20 93,258.04 6,910.55 31.68 1,37,627.47

(30,669.65) (79,456.61) (4,383.85) (13.51) (1,14,523.62)
Unallocated assets 1,239.08
(492.55)
Total assets 37,427.20 93,258.04 6,910.55 31.68 1,38,866.55
30,669.65 79,456.61 4,383.85 13.51 (1,15,016.17)
Segment liabilities* 38,896.27 94,983.20 4,784.45 - 1,38,663.92
(36,857.64) (75,739.77) (2,344.86) - (1,14,942.27)
Unallocated liabilities 202.63
(73.90)
Total liabilities 38,896.27 94,983.20 4,784.45 - 1,38,866.55
(36,857.64) (75,739.77) (2,344.86) - (1,15,016.17)
Capital Expenditure - 211.89 - - 211.89
- (222.51) - - (222.51)
Depreciation - 110.04 - - 110.04
- (103.06) - - (103.06)
Notes:
The business of the Bank does not extend outside India and it does not have any assets outside India or earnings emanating from outside India.
Accordingly, the Bank has reported operations in the domestic segment only.
*Treasury segment liabilities includes share capital and reserve & surplus
18.11 Related Party disclosure

Names of related parties and nature of relationship
Entities Nature of relationship
Bandhan Financial Services Limited Entity having Significant influence (Promoter)
Bandhan Financial Holdings Limited Entity having Significant influence (Promoter)
Nakshi Creations Pvt. Ltd. Entity in which key management personnel are interested
Key Management Personnel
Mr. Chandra Shekhar Ghosh Managing Director & Chief Executive Officer
Mr. Indranil Banerjee Company Secretary
Mr. Sunil Samdani Chief Financial Officer
Relatives of Key Management Personnel
Nilima Ghosh, Angshuman Ghosh, Suchitra Ghosh, Vaskar Ghosh, Dibakar Ghosh,Shipra Ghosh, Supriya Ghosh, Nidhi Samdani, Sohan
Samdani, Manju Somani, Asha Baheria,Usha Kothari, Saswati Banerjee, Arati Banerjee, Ishaan Banerjee, Mousumi Mukherjee.
In accordance with paragraph 5 of AS-18, the Bank has not disclosed certain transactions with entity in which Key management personnel
or thier relatives are interested as they are in the nature of banker-customer relationship.
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The Bank’s related party balances and transactions for the year ended March 31, 2022 are summarised as follows:

(` in crore)
Entity having
Key Relatives of Key
Significant
Items/Related Party Management Management Total
influence
Personnel Personnel
(Promoter)
Deposits taken 2829.52 1.34 2.20 2,833.06
(5,596.87) (2.55) (5.94) (5,605.36)
Deposits placed - - - -
Advances given - - - -
Dividend paid 64.41 0.17 0.00 64.58
Dividend received - - - -
Interest paid 114.03 0.11 0.22 114.36
Rendering of services 0.06 - 0.00 0.06
Remuneration paid - 6.14 1.47 7.61
Stock options exercised during the year* - 0.90 - 0.90
Other reimbursements - 0.01 0.01 0.02
Figures in bracket () indicate maximum balance outstanding during the year.
*Options exercised under Employee Stock Option Plan Series 1.
The Bank’s related party balances and transactions for the year ended March 31, 2021 are summarised as follows:
(` in crore)
Entity having
Significant
Items/Related Party Management Management Total
influence
Personnel Personnel
(Promoter)
Deposits taken 1,924.44 1.55 4.47 1,930.46
(13,815.61) (1.97) (8.47) (13,826.05)
Deposits placed - - - -
Advances given - - - -
Dividend paid - - - -
Dividend received - - - -
Interest paid 65.84 0.08 0.11 66.03
Rendering of services - - 0.003 0.00
Remuneration paid - 4.52 1.37 5.89
Stock options exercised during the year* - 0.98 - 0.98
Other reimbursements - 0.00 0.01 0.01
Figures in bracket () indicate maximum balance outstanding during the year.
*Options exercised under Employee Stock Option Plan Series 1.
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Schedules
A specific related party transaction is a significant transaction wherever it exceeds 10% of all related party transactions in that
category. The significant transactions between the Bank and related parties during the year ended March 31, 2022 and March 31,
2021 are given below:
(` in crore)
Entity having
Significant
Particulars Management Management
influence
Personnel Personnel
(Promoter)
Deposit 2,829.52 - -
(1,924.44) - -
Dividend paid 64.41 - -
(-) - -
Interest paid 114.03 - -
(65.84) - -
Rendering of services
Nidhi Samdani - - -
- - (0.001)
Nilima Ghosh - - -
- - (0.001)
Saswati Banerjee - - -
- - (0.0003)
Angshuman Ghosh - - -
- - (0.001)
Bandhan Financial Services Limited 0.03 - -
(-) - -
Bandhan Financial Holdings Limited 0.03 - -
(-) - -
Stock Options exercised
Chandra Shekhar Ghosh - 0.90 -
- (0.90) -
Other reimbursements
Sunil Samdani - 0.01 -
- (0.003) -
Vaskar Chandra Ghosh - - 0.01
- - (0.005)
Remuneration paid
Chandra Shekhar Ghosh - 3.85 -
- (2.58) -
Sunil Samdani - 1.51 -
- (1.30) -
Indranil Banerjee - 0.79 -
- (0.64) -
Dibakar Chandra Ghosh - - 0.94
- - (0.90)
Vaskar Chandra Ghosh - - 0.53
- - (0.47)
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18.12 Deferred Tax

(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
Deferred Tax Assets arising out of
Depreciation on fixed assets 26.47 23.50
Provisions for loan losses 991.81 311.38
Provision for depreciation in value of investments 10.53 21.85
Expenditure charged to reserve but allowed for tax purposes as per provision or on 4.86 6.58
actual basis
Expenditure charged to the profit & Loss account in the current year but allowed for tax 401.74 71.39
purposes on payment basis
Total (a) 1,435.41 434.70
Deferred Tax Liability arising out of
Special Reserves (216.98) (206.28)
Total (b) (216.98) (206.28)
Deferred tax asset (net) (a-b) 1,218.43 228.42
18.13 Liability for Operating Leases

The Banking Units premises are generally rented on cancellable terms for less than twelve months with no escalation clause and
renewable at the option of the Company. The Head office and the Bank Branches office premises are obtained on non-cancellable
lease terms. Lease payment during the year are charged in the statement of profit & loss.
The amount of rent expenses included in the Profit & Loss account towards operating leases aggregate to ₹ 210.33 crore (Previous
year ended March 31, 2021: ₹ 176.25 crore).
Particulars of future minimum lease payment in respect of Head office & Bank branches are as mentioned below :
(` in crore)
As at As at
Particulars
March 31 2022 March 31 2021
a) Not later than 1 year 132.89 116.94
b) Later than 1 year and not later than 5 years 389.88 455.74
c) Later than 5 years 175.16 116.86
18.14 Earnings per Share

The Bank reports basic and diluted earnings per equity share in accordance with Accounting Standard 20 - “Earnings per Share”.
(` in crore)
Particulars
March 31 2022 March 31 2021
Basic
Weighted Average Number of equity shares 1,61,06,91,061 1,61,03,66,506
Net Profit after tax available for equity share holders 125.79 2,205.46
Basic Earnings Per Share (FV ₹10/-) 0.78 13.70
Diluted
Weighted Average Number of equity shares (including dilutive potential equity 1,61,11,93,362 1,61,10,72,504
share)
Net Profit after tax available for equity share holders 125.79 2,205.46
Diluted Earnings Per Share (FV ₹10/-) 0.78 13.69
Nominal value per share 10.00 10.00
The dilutive impact is due to stock options granted to employees of the Bank.
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18.15 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 during the years ended March
31, 2022 and March 31, 2021. The above is based on the information available with the Bank which has been relied upon by the
auditors.
18.16 Description of contingent liabilities
a) Claims against the Bank not acknowledged as debts:
These represent claims filed against the Bank in the normal course of business and related to taxation matters which are in dispute
and are under appeal.
b) Guarantees given on behalf of constituents:
As a part of its banking activities, the Bank issues guarantees on behalf of its customers to enhance their credit standing. Guarantees
represent irrevocable assurances that the Bank will make payments in the event of the customer failing to fulfill its financial or
performance obligations.
c) Other items:
Other items represent outstanding amount of estimated amount of contracts remaining to be executed on capital account.
d) Acceptances, endorsements and other obligations:
These includes documentary credit issued by the Bank on behalf of its customers and bills drawn by the Bank’s customers that are
accepted or endorsed by the Bank.
18.17 Additional Disclosures
A) Disclosure of customer complaints
Summary information on complaints received by the bank from customers and from the Offices of Ombudsman
(` in crore)
Sr. Year ended Year ended
Particulars
No March 31 2022 March 31 2021
Complaints received by the bank from its customers
1 Number of complaints pending at beginning of the year 447 187
2 Number of complaints received during the year* 35,865 30,830
3 Number of complaints disposed during the year* 35,939 30,570
3.1 Of which, number of complaints rejected by the bank 4,653 3,458
4 Number of complaints pending at the end of the year 373 447
Maintainable complaints received by the bank from Office of Ombudsman
5 Number of maintainable complaints received by the bank from 586 306
Office of Ombudsman
5.1 Number of complaints resolved in favour of the bank by Office 535 262
of Ombudsman
5.2 Number of complaints resolved through conciliation/ 51 44
mediation/advisories issued by Office of Ombudsman
5.3 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)
* The above doesnot include 9,376 Nos. of complaints received and resolved within 24hrs as on March 31, 2022 (Previous Year - 1,865 Nos.)
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Top five grounds of complaints received by the bank from customers
%increase/
Number of
Number of decrease in Number of
complaints Of 5, number of
complaints the number complaints
Grounds of complaints, pending at complaints
received of complaints pending at
(i.e. complaints relating to) the pending
during the received over the end of
beginning of beyond 30 days
year the previous the year
the year
year
1 2 3 4 5 6
Year ended March 31, 2022
ATM/Debit Cards 401 19,196 -20.73% 206 4
Internet/Mobile/Electronic Banking 8 10,947 155.95% 70 21
Account opening/difficulty in operation 36 4,891 180.29% 62 -
of accounts
Loans and advances 2 352 -9.74% 14 4
Levy of charges without prior notice/ - 169 122.37% 3 -
excessive charges/foreclosure charges
Others - 310 148.00% 18 -
Total 447 35,865 373 29
Top five grounds of complaints received by the bank from customers
%increase/
Number of
Number of decrease in Number of
complaints Of 5, number of
complaints the number complaints
Grounds of complaints, pending at complaints
received of complaints pending at
(i.e. complaints relating to) the pending
during the received over the end of
beginning of beyond 30 days
year the previous the year
the year
year
1 2 3 4 5 6
Year ended March 31, 2021
ATM/Debit Cards 179 24,217 -45.82% 401 24
Internet/Mobile/Electronic Banking 4 4,277 -25.68% 8 0
Account opening/difficulty in operation 2 1,745 18.00% 36 0
of accounts
Loans and advances 1 390 29.00% 2 0
Levy of charges without prior notice/ 0 76 27.00% 0 0
excessive charges/foreclosure charges
Others 1 125 -98.68% 0 0
Total 187 30,830 447 24
B) Letter of Comfort (LOC’s) issued by the Bank
The Bank has not issued any Letter of Comfort (LOC) during the year ended March 31, 2022 and March 31, 2021.
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C) Bancassurance Business
The following table shows breakup of income derived from sale of insurance /Mutual funds.
(` in crore)
Particulars
March 31 2022 March 31 2021
For selling life insurance policies 189.68 135.85
For selling non-life insurance policies 19.76 14.20
For selling mutual fund products 3.74 2.32
Others 0.39 1.26
D) Concentration of Deposits, Advances Exposures & NPAs

I) Concentration of Deposits (` in crore)
Particulars
March 31 2022 March 31 2021
i) Total Deposits of twenty largest depositors 19,356.31 14,647.29
ii) Percentage of Deposits of twenty largest depositors to Total Deposits 20.09% 18.79%
of the bank
II) Concentration of Advances (` in crore)

Particulars
March 31 2022 March 31 2021
i) Total Advances to twenty largest borrowers 3,790.66 2,225.47
ii) Percentage of Advances to twenty largest borrowers to Total 3.87% 2.53%
Advances of the Bank
III) Concentration of Exposures (` in crore)

Particulars
March 31 2022 March 31 2021
i) Total Exposure to twenty largest borrowers / customers 4,756.56 3,006.56
ii) Percentage of Exposures to twenty largest borrowers / customers to 4.78% 3.37%
total exposure of the bank on borrowers / customers
IV) Concentration of NPAs (` in crore)

Particulars
March 31 2022 March 31 2021
Total Exposure to the top twenty NPA accounts 580.43 535.16
Percentage of exposures to the twenty largest NPA exposure to total Gross 9.10% 9.29%
NPAs.
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18.18 Disclosures on Remuneration (vi) To review and recommend to the Board, the succession
Qualitative Disclosures policy at the level of Managing Director & CEO, other
a) Information relating to the composition and mandate of WTDs, senior management one level below the Board
the Remuneration Committee. and key roles.
The Bank’s Nomination and Remuneration Committee (NRC)
b) Information relating to the design and structure of
oversees the framing, review and implementation of the
remuneration processes and the key features and
Compensation Policy on behalf of the Board of Directors. objectives of remuneration policy
The NRC reviews the policy at least once a year to ensure Objectives of the Remuneration Policy
that the reward design is aligned to industry best practices
and is consistent with effective risk management and long The Compensation Policy reflects the Bank’s objectives for
term business interests of the Bank. The NRC works in good corporate governance as well as sustained and long-
close coordination with the Risk Management Committee term value creation for stakeholders. The aims of the Bank’s
of the Bank, to achieve the effective alignment between remuneration framework are to:
remuneration and risks. i) Attract, motivate and retain people with requisite skill,
experience and ability to deliver the Bank’s strategy;
As on March 31, 2022 the NRC comprises of the following
directors. ii) Create an alignment and balance between the rewards
and risk exposure of shareholders and interests of
Mr. Suhail Chander - Chairman employees;
Mr. A. S. Ramasastri
iii) Link rewards to creation of long term sustainable
Mr. Ranodeb Roy
shareholder value consistent with strategic goals and
Mr. Snehomoy Bhattachary
appropriate risk management; and
The NRC functions with the following main objectives: iv) Encourage behavior consistent with the Bank’s values
and principles.
(i) To identify persons who are qualified to become
directors in accordance with the criteria laid down, To achieve the above objectives, the philosophy adopted by
recommend to the Board their appointment, re- the Bank is as follows:
appointment or removal and to carry out evaluation of
i) Market referenced: offer employees competitive salary,
every Director’s performance;
achieved through benchmarking with peer groups.
(ii) To formulate the criteria for determining qualifications,
ii) Making fixed salary the main remuneration component.
positive attributes and independence of a Director and
decide their ‘fit & proper’ status; iii) Ensure that jobs of similar internal value are grouped
and pegged within a range guided by market
(iii) To oversee the framing, review and implementation
benchmarked jobs.
of compensation policy of the Bank and recommend
to the Board the overall remuneration philosophy iv) Risk factoring: A significant portion of the senior and top
and policy including the level and structure of fixed management compensation will be variable, of which,
pay, variable pay, perquisites, bonus pool, stock based for some key roles, part of the variable compensation
remuneration to employees; may be deferred.
(iv) To oversee the framing, implementation and review of v) Focus on ‘Total rewards’, all aspects of compensation,
the Remuneration of the Whole Time Director (WTDs) rewards and well defined benefits, including rewarding
/Managing Director (MD)/ Chief Executive Officer work environment and personal development.
(CEOs) as per the RBI Guidelines and Companies Act, vi) The focus will be to ensure that the Bank is competitive
2013. The Committee shall recommend to the Board in its overall salary offer to its employees without being
the remuneration package for the Managing Director excessively expensive for the Bank.
& CEO and the other Whole Time Directors – including
The compensation structure for the MD & CEO also mirrors
the level of fixed pay, variable pay, stock based
the Bank’s philosophy of aligning with the principles of sound
Remuneration and perquisites;
compensation practices to ensure:
(v) To review the HR strategy and policy including the
i) Effective and independent governance of
conduct and ethics of the Bank and review any
compensation.
fundamental changes in the organization structure
which could have wide ranging and high risk ii) Effective alignment of compensation with prudent risk
implications; taking.
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Schedules
iii) Effective supervisory oversight and engagement by The alignment of compensation to prudent risk taking is
stakeholders. ensured through the following:
Design & Structure of Remuneration process i) Structure of remuneration is such that a significant
part of performance based variable remuneration is
The total compensation is a prudent mix of fixed remuneration
deferred.
and performance-based variable remuneration
ii) Performance hurdles includes financial and non-
The key remuneration elements are:
financial parameters, ensuring compensation is aligned
1) Fixed Pay to both.
2) Discretionary Performance-based Variable iii) Fixed Salary is reasonable and sufficient, thereby
Remuneration discouraging inappropriate risk taking.
The Bank ensures that the fixed pay element is reasonable, iv) Annual Bonus Plan is managed with an independent
taking into account the market rates and trends. The fixed governance framework.
pay is reviewed annually using market intelligence provided v) Variable remuneration awards are conditional,
by a leading global performance/reward consulting and discretionary and contingent upon a sustainable and
benchmarking firm for financial services industry to ensure risk-adjusted performance. They are therefore capable
that the Bank remains competitive in marketplace and that of forfeiture or reduction at the Bank’s discretion.
the Bank is able to attract and retain best talent. The level of
fixed pay shall be sufficient enough in order to discourage vi) For employees included in the policy of risk alignment
of compensation, NRC has the discretion to apply
inappropriate risk-taking.
malus and clawback – ex-post risk adjustment, allowing
Performance-based variable remuneration may comprise the Bank to adjust previously awarded remuneration to
cash bonus, stock linked instruments, and is awarded by take account of subsequent performance and potential
ensuring: risk outcomes and thus enabling to recoup variable pay
in the event of a negative contribution.
i) an appropriate balance between fixed and
performance-based components; Deferral of Variable Pay
ii) that the fixed component represents a higher To ensure that risk measures are not focused only on
proportion of the total remuneration; the achievement of short term goals, variable payout is
deferred, if it exceeds 50% of the fixed pay.
iii) that the performance-based component reflects the
risk underlying the achieved result; The Bank’s compensation policy aims to ensure that
both ex-ante estimates and ex-post outcomes of risk
iv) that a part of the performance-based component may
affect payoffs; so that one or the other, can better
be deferred;
address the various situations or risks.
v) that no hedging of deferred shares takes place; d) Description of ways in which the Bank seeks to link
Presently, the bank utilises only two form of performance performance, during a performance measurement period
with levels of remuneration.
based variable remuneration, viz.,cash bonus, ESOP, as
The Bank has a performance measurement framework
referred in note no 18.29 is linked to continuous service with
in place to assess the achievements of the organization
the Bank.
as a whole, its business lines and organizational units as
The compensation policy of the Bank is reviewed by the NRC well as individual employees. In order to maximise the
and approved by the Board of Directors. The NRC oversees incentive to deliver adequate performance and to take into
the implementation of the policy and reviews the fixed account any risks of the business activities, the Bank seeks
pay increases, the organizational performance threshold to closely link remuneration outcomes with performance
for bonus to be paid, cash bonus and deferred variable and risk outcomes. Accordingly, the Bank’s performance
remuneration. management and compensation philosophy is designed in a
manner to help achieve the Bank’s business objectives.
c) Description of the ways in which current and future risks
are taken into account in the remuneration process The performance management system in the Bank is aligned
The MD & CEO, employees in the grades of SVPs and above to the balanced scorecard approach. The goal setting process
and employees engaged in the functions of Risk Control and helps individuals to have clarity on their roles and align
Compliance are included in the policy of risk alignment of their profiles in line with the broad organization strategy.
compensation. Both quantitative / financial and qualitative / non-financial
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Schedules
performance measures are considered. The qualitative or Category I : MD&CEO / Whole Time Directors
non-financial measures include customer service, adherence
Category II : Risk Control and Compliance Staff
to risk and compliance standards, behavior and values such
as accountability, team work, etc., which builds a culture Category III: Other Categories of Staff
conducive to sustainable business performance.
The following principles are applied for grant and deferral
The performance appraisal process starts with the employee of performance-based variable remuneration for the above
conducting self-appraisal followed by the assessment of categories of employees.
the supervisor via appraisal feedback and discussion. For
Category I
all employees of the Bank, half-yearly appraisal is followed
by the annual appraisal. The mid-year feedback process i) Variable Remuneration will not exceed 70% of annual
includes feedback on performance and on competencies Fixed Pay.
with an objective of a mid-course review, to help plan and
ii) If the Variable Remuneration exceeds 50% of annual
prioritize corrective actions for employees to remain aligned
Fixed Pay, 40% of the Variable Remuneration will be
to achievement of their business goals and self-development.
deferred over a period of 3 years, on a proportionate
The performance appraisal ratings is reviewed/ calibrated by
basis.
a committee comprising senior leaders.
iii) In case the variable remuneration is a mix of cash
Individual fixed pay increases and variable remuneration
and stock linked instruments (other than ESOP), a
are based on the final performance ratings. In addition,
proper balance between cash and share / stock linked
the fixed pay increase is also influenced by an employee’s
instruments will be ensured.
position in the salary range and relevant market salaries.
Performance related variable compensation is linked iv) In the event of negative contributions of the Bank,
to corporate performance, business performance and the unvested deferred variable remuneration of the
individual performance. The performance ratings based reference year will be held back (malus). In such cases,
bonus distribution matrix is reviewed by the NRC. the vested / paid variable remuneration will also be
Employees engaged in all control functions including subject to suitable claw back arrangements.
Compliance and Risk do not carry business profit targets in Category II
their goal sheets and hence are compensated based on their
achievement of key result areas as per the balance score a) The mix of Fixed Pay and Variable remuneration will be
card. The aim is to ensure that the remuneration system weighed towards Fixed Pay.
and outcomes relating to such control functions maintain b) Variable pay shall not exceed the annual fixed pay.
the independence of the function and Bank’s robust risk
c) At least 40% of the variable pay shall be in the form of
management framework. Accordingly, for the control
functions, the variable pay is conservative to promote share-linked instruments (i.e. non-cash).
prudent risk management behavior and the ‘pay mix’ is d) Deferral of share-linked variable pay shall be for 4 years
skewed towards fixed pay. on pro-rata yearly basis (annual vesting).
In the case of performance evaluation of the Managing e) The compensation will be commensurate to their key
Director and Chief Executive Officer of the Bank, factors role in the Bank.
such as financial performance measures, cost management
initiatives, other strategic initiatives, prudential risk and Category III
compliance management, recognition and awards to the a) Variable Remuneration will be as per the NRC approved
Bank, etc., is taken into account, which may vary from year pay-out levels in terms of grade and role matrix.
to year depending on the Bank’s strategic priorities. Based
on the inputs from NRC, the Board reviews the performance b) Variable pay shall not exceed the annual fixed pay.
and recommends the rate of bonus to be paid, and the c) At least 50% of the variable pay shall be in the form of
increments for the MD & CEO, for regulatory approval in share-linked instruments (i.e. non-cash).
terms of Section 35B of the Banking Regulation Act, 1949
(B.R. Act, 1949). d) Deferral of share-linked variable pay shall be for 4 years
on pro-rata yearly basis (annual vesting).
e) Bank’s policy on deferral and vesting of variable
remuneration and bank’s policy and criteria for adjusting For the three categories of employees mentioned
deferred remuneration before vesting and after vesting. hereinabove, the awarded performance based variable pay
In terms of RBI guidelines, the Compensation Policy shall be subject to in-year adjustment, malus or clawback as
specifically addresses the following categories of employees: decided by the NRC, in the event of negative contribution of
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the Bank and / or relevant line of business and in material iii) If the performance, decisions or actions taken leads
cases of detrimental conduct of individual or business. to the Bank or the relevant business unit suffering
a significant material downturn in its financial
Negative contribution of the Bank and / or relevant line of
performance.
business is defined as:
iv) If the RBI assessed divergence in the Bank’s
Conduct related:
provisioning for Non-Performing Assets (NPAs) or
i) If an employee engages in certain detrimental conduct, asset classification exceeds the prescribed threshold
including mis-selling practices, manipulation of interest for public disclosure, the bank shall not pay the
rate benchmarks, illegal activity, breach of a fiduciary unvested portion of the variable compensation for
duty, etc. that causes material financial or reputational the assessment year under malus clause. Further,
harm to the Bank. in such a situation, there shall not be any increase
ii) If the award was based on a material misrepresentation in variable pay for the assessment year. In case the
by the employee. bank’s post assessment Gross NPAs are less than
2.0%, these restrictions will apply only if the criteria
iii) If there is reasonable evidence of employee malfeasance for public disclosure are triggered either on account
and breach of integrity inviting disciplinary actions. of divergence in provisioning or both provisioning
iv) Violation of Anti Hedging and Anti Pledging Policy or and asset classification.
Code of Conduct for Prevention of Insider Trading. v) In the event of a material restatement, correction or
Risk related and others: amendment of the Bank’s financial results for the
relevant period.
i) If the awarded performance-based variable pay was
granted on a deliberately erroneous foundation or an f) Description of the different forms of variable remuneration
(i.e. cash, shares, ESOPs and other forms) that the bank
incorrect decision made due to gross negligence not
utilizes and the rationale for using these different forms.
considered as errors of judgement.
The Bank presently utilizes only one form of variable
ii) If the employee who is reasonably expected to be remuneration, viz., cash bonus, which is linked to corporate
aware of the failure, misconduct or weakness in performance, business performance and individual
approach that contributed to the failure, improperly or performance ensuring differential pay based on the
with gross negligence failed to identify, assess, report performance. ESOP, as referred in Note 18.29 is linked to
or escalate in a timely manner. continuous service with the Bank.
Quantitative disclosures :
The quantitative disclosures pertaining to the MD & CEO, WTDs & MRTs, for the year ended March 31, 2022 and March 31, 2021
are given below:
(` in crore)
Particulars
March 31 2022 March 31 2021
a) i) Number of meetings held by the Remuneration Committee during 5 6
the year.
ii) Remuneration paid to its members (sitting fees) ₹ 11,40,000 ₹ 11,80,000
b) Number of employees having received a variable remuneration award 25 21
during the year.
c) Number and total amount of sign on awards made during the year. Nil Nil
d) Details of guaranteed bonus, if any, paid as joining / sign on bonus. Nil Nil
e) Details of severance pay, in addition to accrued benefits, if any. Nil Nil
f) Total amount of outstanding deferred remuneration, split into cash, shares ₹ 0.278 Cr (Cash) Nil
and share linked instruments and other forms.
g) Total amount of deferred remuneration paid out in the year (paid in cash) Nil Nil
190
Schedules
(` in crore)
Particulars
March 31 2022 March 31 2021
h) Breakdown of amount of remuneration awards for the year to show Fixed - ₹ 24.26 Crore, Fixed - ₹ 17.74 Crore,
fixed and variable, deferred and non deferred. Variable - ₹ 2.82 Variable - ₹ 2.29
Crore, Non-deferred Crore, Non-deferred
- ₹ 2.82 Crore, - ₹ 2.29 Crore,
Deferred- ₹ 0.278 Deferred- ₹ 0 Crore
Crore
i) Shares granted under ESOP 16,35,786 9,65,889
j) Total amount of outstanding deferred remuneration and retained Nil Nil
remuneration exposed to ex-post explicit and / or implicit adjustments.
k) Total amount of reductions during the year due to ex post explicit Nil Nil
adjustments.
l) Total amount of reductions during the year due to ex post implicit Nil Nil
adjustments.
(m) Number of MRTs identified.* 24 20
(n) (i) Number of cases where malus has been exercised. Nil Nil
(ii) Number of cases where clawback has been exercised. Nil Nil
(iii) Number of cases where both malus and clawback have been Nil Nil
exercised.
(o) The mean pay for the bank as a whole (excluding sub-staff) and the The mean pay for The mean pay for
deviation of the pay of each of its WTDs from the mean pay. the Bank as a whole the Bank as a whole
(excluding sub-staff) - (excluding sub-staff) -
₹ 0.0320 crore. ₹ 0.0310 Cr.
* As on year ended March 31, 2022 and March 31, 2021 number of active MRTs are 19 and 20 respectively.
18.19 Disclosure relating to Securitisation

The Bank has not orginated any securitisation transactions during the year ended March 31, 2022 and March 31, 2021.
18.20 Disclosure on Derivatives

(i) Derivatives
The Bank has not entered into any derivative transaction during the year ended March 31, 2022 and March 31, 2021. Currently Bank
is not entering into derivative transactions like Exchange Traded Derivatives, Options and Swaps. However, at later stage, Bank may
place a separate policy on dealing in derivatives before the Board based on extant regulatory guidelines and internal capabilities, on
approval of which derivative transactions may be undertaken.
(ii) Credit default swaps

The Bank has not transacted in credit default swaps during the year ended March 31, 2022 and March 31, 2021.
18.21 Transfer to Depositor education and awareness fund (DEAF)

During the year ended March 31, 2022 and March 31, 2021, the Bank was not required to transfer any amount to Depositor
Education and Awareness Fund.
18.22 Transfer to Investor education and protection fund (IEPF)

There is no amount required to be transferred to Investor Education and Protection Fund by the Bank (Previous Year: ₹ NIL).
191
Schedules
18.23 Other Disclosures

a) The key business ratios and other information is set out below : (` in crore)
Particulars
March 31 2022 March 31 2021
Interest income as a percentage to working funds 1 11.06% 12.11%
Non-interest income as a percentage to working funds 1 2.25% 2.04%
Cost of Deposits 5.25% 5.96%
Net Interest Margin 8.18% 7.78%
Operating profit as a percentage to working funds 1 ,2 6.39% 6.63%
Return on assets 1 0.10% 2.13%
Profit per employee (₹ in crore) 3 0.002 0.05
Business (deposits less inter-bank deposits plus advances) per employee (₹ in crore) 3,4 3.25 3.22
1. Working funds represent average of total assets as reported to Reserve Bank of India in Form X under Section 27 of the Banking Regulation Act, 1949,
during the year ended March 31, 2022 and March 31, 2021.
2. Operating profit is profit for the year before considering provisions and contingencies.
3. Productivity ratios are based on average number of employees for the year.
4. Business per employee (deposits plus Gross Advances (on book), inter-bank deposits shall be excluded.
b) Marketing and distribution

During the year ended March 31, 2022 and March 31, 2021, the Bank has received ₹ 133.85 crore (Previous Year ₹ 50.58 crore) in
respect of the marketing and distribution function (excluding bancassurance business) undertaken by them.
c) Implementation of IFRS converged Indian Accounting Standards (Ind AS)

The RBI issued a circular in February, 2016 requiring banks to implement Indian Accounting Standards (‘Ind AS‘) and prepare Ind AS
financial statements with effect from April 01, 2018. In line with the RBI guidelines on Ind AS implementation, the Bank has formed
a Steering Committee comprising members from the concerned functional areas. As advised by the RBI, the Bank has also submitted
Proforma Ind AS financial statements every quarter starting from quarter ended June 30, 2018 to the RBI.
However, the RBI in its press release issued on March 22, 2019 has deferred the applicability of Ind AS till further notice for Scheduled
Commercial Banks.
The Bank has made a diagnostic study to identify the gaps, process and system changes required to implement Ind AS and is in
the process of implementing necessary changes in its IT system and other processes. The Bank is regularly holding workshops and
training for its staff.
d) Payment of DICGC Insurance Premium (` in crore)

Sr Year ended Year ended
Particulars
No. March 31 2022 March 31 2021
(i) Payment of DICGC Insurance Premium* 88.73 72.30
(ii) Arrears in payment of DICGC premium - -
(*) The amount includes GST.
e) Disclosure of facilities granted to directors and their relatives

During the year ended March 31, 2022 and March 31, 2021, The Bank has not extended any fund or non-fund (guarantees, letters
of credit, etc.) facilities extended to directors, their relatives, companies or firms in which they are interested.
18.24 Disclosure on Liquidity Coverage Ratio

(a) Qualitative disclosure
The Bank has adopted the Basel III framework on liquidity standards as prescribed by RBI and has put in place requisite systems and
processes to enable periodical computation and reporting of the Liquidity Coverage Ratio (LCR). The Risk department computes the
LCR and reports the same to the Asset Liability Management Committee (ALCO) every month for review.
The Bank follows the criteria laid down by RBI for calculation of High Quality Liquid Assets (HQLA),gross outflows and inflows within
the next 30-day period. HQLA predominantly comprises Government securities in excess of minimum SLR requirement viz. Treasury
Bills, Central and State Government securities and excess of minimum cash reserve ratio (CRR).
The Board of Directors has the overall responsibility for management of liquidity risk. The Board at overall level decides the strategy,
policies and procedures of the bank to manage liquidity risk in accordance with the liquidity risk tolerance/limits. The Board has
constituted Risk Management Committee, which reports to the Board, and consist of Managing Director and certain other Board
members. The Committee is responsible for evaluating the overall risks faced by the bank including liquidity risk.
192
(b) Quantitative Disclosure as on March 31 2022
(` in crore)
Day end Average for quarter Day end Average for quarter Day end Average for quarter Day end Average for quarter
ended June 30 2021 ended September 30 2021 ended December 31 2021 ended March 31 2022
Particulars Total Total Total Total Total Total Total Total
Unweighted Weighted Value Unweighted Weighted Value Unweighted Weighted Value Unweighted Weighted Value
Value (Average) (Average) Value (Average) (Average) Value (Average) (Average) Value (Average) (Average)
CORPORATE OVERVIEW
High Quality Liquid Assets

1) Total High Quality Liquid Assets (HQLA) - 25,688.19 - 27,681.56 - 26,206.81 - 26,595.44
Schedules
Cash Outflows
2) Retail Deposits and deposits from 43,624.29 4,202.09 44,438.21 4,301.86 45,935.59 4,426.81 48,215.95 4,624.76
small business customers, of which:
a) Stable deposits 3,206.76 160.34 2,839.13 141.96 3,334.97 166.75 3,936.60 196.83
b) Less stable deposits 40,417.53 4,041.75 41,599.08 4,159.90 42,600.62 4,260.06 44,279.35 4,427.93
3) Unsecured wholesale funding, of which: 23,032.87 15,882.69 25,316.93 16,786.39 27,925.74 18,350.56 28,824.38 19,355.31
STATUTORY REPORTS
a) Operational deposits - - - - - - - -
(all counterparties)
b) Non-operational deposits 23,032.87 15,882.69 25,316.93 16,786.39 27,925.74 18,350.56 28,824.38 19,355.31
c) Unsecured debt - - - - - - - -
4) Secured wholesale funding - - - - - - - -
193
5) Additional requirements, of which: 1,819.39 161.00 1,863.12 168.31 1,823.68 160.72 2,107.89 176.70
a) Outflows related to derivative 0.72 0.72 0.44 0.44 1.91 1.91 0.50 0.50
exposures and other collateral
requirements
b) Outflows related to loss of funding on - - - - - - - -
debt products
c) Credit and liquidity facilities 1,818.67 160.28 1,862.68 167.87 1,821.77 158.81 2,107.39 176.20
6) Other contractual funding obligations 4,240.83 4,240.83 1,553.67 1,553.67 1,751.93 1,751.93 2,106.47 2,106.47
7) Other contingent funding obligations 341.72 10.25 370.58 11.12 421.39 12.64 528.78 15.86
8) Total Cash outflows 24,496.86 22,821.35 24,702.66 26,279.10
Cash Inflows
9) Secured lending (eg. Reverse repos) 3,574.46 - 6,453.03 - 3,835.81 - 2,190.89 -
10) Inflows from fully performing 6,574.27 3,989.44 5,633.01 3,452.41 5,078.99 3,005.32 5,199.17 3,120.80
exposures
11) Other cash inflows 75.68 75.68 121.63 121.63 53.35 53.34 4.05 4.05
12) Total Cash Inflows 10,224.41 4,065.12 12,207.67 3,574.04 8,968.15 3,058.66 7,394.11 3,124.85
13) Total HQLA 25,688.19 27,681.56 26,206.81 26,595.44
14) Total Net Cash outflow 20,431.75 19,247.31 21,644.00 23,154.25
15) Liquidity Coverage Ratio(%) 125.73% 143.82% 121.08% 114.86%
(c) Quantitative Disclosure as on March 31 2021
(` in crore)
Day end Average for quarter Day end Average for quarter Day end Average for quarter Day end Average for quarter
ended June 30 2020 ended September 30 2020 ended December 31 2020 ended March 31 2021
Particulars Total Total Total Total Total Total Total Total
Unweighted Weighted Value Unweighted Weighted Value Unweighted Weighted Value Unweighted Weighted Value
Value (Average) (Average) Value (Average) (Average) Value (Average) (Average) Value (Average) (Average)
High Quality Liquid Assets
1) Total High Quality Liquid Assets (HQLA) - 17,678.24 - 21,743.55 - 22,068.14 - 21,856.82
Schedules
Cash Outflows
2) Retail Deposits and deposits from 35,358.10 3,356.05 37,123.49 3,549.29 38,736.90 3,730.81 41,593.77 3,982.44
small business customers, of which:
a) Stable deposits 3,595.23 179.76 3,261.28 163.06 2,857.52 142.88 3,538.83 176.94
b) Less stable deposits 31,762.88 3,176.29 33,862.21 3,386.22 35,879.39 3,587.94 38,054.94 3,805.49
3) Unsecured wholesale funding, of which: 13,579.11 8,440.25 17,117.81 12,035.67 20,229.80 14,431.64 21,951.05 15,220.87
a) Operational deposits - - - - - - - -
b) Non-operational deposits 13,579.11 8,440.25 17,117.81 12,035.67 20,229.80 14,431.64 21,951.05 15,220.87
c) Unsecured debt - - - - - - - -
4) Secured wholesale funding - - - - - - - -
5) Additional requirements, of which: 1,057.49 67.78 1,054.30 83.76 1,245.39 101.20 1,444.48 118.04
194
a) Outflows related to derivative 0.00 0.00 0.01 0.01 0.08 0.08 0.10 0.10
exposures and other collateral
requirements
b) Outflows related to loss of funding on - - - - - - - -
debt products
c) Credit and liquidity facilities 1,057.49 67.78 1,054.29 83.75 1,245.30 101.11 1,444.38 117.94
6) Other contractual funding obligations 2,957.26 2,957.26 2,634.33 2,634.33 1,896.14 1,896.14 2,490.78 2,490.78
7) Other contingent funding obligations 274.88 8.25 382.43 11.47 241.88 7.26 265.99 7.98
8) Total Cash outflows 14,829.58 18,314.52 20,167.05 21,820.10
Cash Inflows
9) Secured lending (eg. Reverse repos) 5,618.63 - 6,074.58 - 2,153.76 - 1,364.81 -
10) Inflows from fully performing 3,364.10 2,110.39 5,807.23 3,615.74 5,866.01 3,334.94 6,256.15 3,655.98
exposures
11) Other cash inflows 40.52 40.52 0.07 0.07 0.02 0.02 0.05 0.05
12) Total Cash Inflows 9,023.24 2,150.91 11,881.88 3,615.82 8,019.80 3,334.96 7,621.01 3,656.03
13) Total HQLA 17,678.24 21,743.55 22,068.14 21,856.82
14) Total Net Cash outflow 12,678.67 14,698.70 16,832.09 18,164.07
15) Liquidity Coverage Ratio(%) 139.43% 147.93% 131.11% 120.33%
18.25 Maturity pattern of certain items of assets and liabilities
(` in crore)
31 Over 2 Over 3 Over 6 Over 3
Over 1 year
2 to 7 8 to 14 15 to 30 days to months and months and months and years and Over 5
Particulars Day 1 and up to Total
days days days 2 to up to up to up to years
3 years
months 3 months 6 Months 1 year 5 years
Liabilities
CORPORATE OVERVIEW
Borrowings - - 50.00 1,475.00 - 889.48 1,873.69 3,715.83 10,482.86 577.59 856.77 19,921.23
- (2,694.00) (750.00) - (5175.00) (329.11) (2,038.20) (3,999.50) (776.06) (1,198.49) (16,960.36)
Schedules
Deposits* 368.29 1,447.52 1,623.41 2,249.31 1,912.39 2,860.59 9,780.17 17,421.15 49,905.72 5,088.14 3,673.92 96,330.61
(200.52) (1,099.34) (909.25) (1,737.98) (6930.20) (9,244.95) (11,830.98) (44,001.70) (1,168.80) (848.50) (77,972.22)
Foreign - - - 0.10 - 189.48 0.04 90.31 1.58 - - 281.51
Currency - - - - (0.19) - (3.01) (21.98) (2.66) - - (27.84)
Liabilities
STATUTORY REPORTS
Assets
Advances 725.27 2,116.36 1,092.42 2,341.74 5,266.26 6,273.61 12,918.81 15,985.56 28,581.07 4,747.29 13,926.55 93,974.93
(805.45) (2,002.05) (1,132.09) (1,972.84) (11521.00) (13,627.84) (17,155.12) (13,988.69) (5,116.49) (14,291.31) (81,612.88)
Investment - 51.69 - 1.60 99.43 466.96 3,481.60 1,928.32 920.14 2,472.34 19,656.63 29,078.71
- (52.21) - - (72.81) (2,780.76) (340.63) (988.11) (1,866.74) (19,054.13) (25,155.39)
Foreign 13.14 - - - - - 75.79 - - - 88.93
195
Currency Assets (13.26) - - - (43.87) - - - (62.14) - - (119.27)
* Deposits includes Foreign Currency Liabilities which has also been shown seperately.
Classification of non-maturing assets and liabilities under the different maturity buckets is based on the same estimates and assumptions as used by the Bank for compiling the return
submitted to the RBI, which has been relied upon by the auditors.
Schedules
18.26 Sector-wise advances

(` in crore)
As at March 31, 2022 As at March 31, 2021
Percentage Percentage
Sr. Outstanding of Gross Outstanding of Gross
Sector
No. Total Gross NPAs NPAs to Total Total Gross NPAs NPAs to Total
Advances Advances in Advances Advances in
that sector that sector
A Priority Sector*
1 Agriculture and allied activities# 12,291.49 949.23 7.72% 25,953.80 2,206.69 8.50%
2 Advances to industries sector 6,728.69 242.94 3.61% 10,703.50 887.02 8.29%
eligible as priority sector lending#
3 Services 18,850.46 541.98 2.88% 24,217.64 1,598.74 6.60%
4 Personal loans 18,526.46 1,029.59 5.56% 13,494.57 307.03 2.28%
Sub Total (A) 56,397.10 2,763.74 4.90% 74,369.51 4,999.47 6.72%
B Non Priority Sector
1 Agriculture and allied activities - - - - - -
2 Industry sector 6,454.66 532.48 8.25% 493.28 - -
3 Services 21,800.78 1,563.18 7.17% 1,216.78 385.09 31.65%
4 Personal loans 14,138.16 1,520.60 10.76% 8,430.03 373.19 4.43%
Sub Total (B) 42,393.60 3,616.26 8.53% 10,140.09 758.29 7.48%
Total (A+B) 98,790.70 6,380.00 6.46% 84,509.60 5,757.76 6.81%
*Priority sectors includes ₹ 41,837 crore (Previous Year : ₹ 70,448 crore), in respect of which the Bank has sold Priority Sector Lending Certificates (PSLC).
During the year ended March 31, 2022, the Bank has bought PSLC amounting ₹ 18,986 crore (Previous Year : ₹ 2,400 crore), which is not included in above.
#The consideration of Land holding of borrowers for their classification as Small & Marginal Farmers (SMFs) and investment in Plant and Machinery for
classification of business as eligible for Priority Sector Lending is based on the representation made by the respective borrowers.
During current year the PSL classification based on survey and internal committee recommendations priority sector lending is ₹ 56,397 crores as per the
PSL policy. The change is made due to changes made in the PSL reporting as per the Bank’s PSL Policy.
18.27 Details of Priority sector lending certificates (category wise) sold and purchased:
(` in crore)
Sl Year ended March 31, 2022 Year ended March 31, 2021
Particulars
No. Purchase Sale Purchase Sale
i) PSLC – Agriculture 1,100.00 1,100.00 - 3,360.00
ii) PSLC - Small & Marginal farmers(SFMF) 11,476.00 17,350.00 - 19,280.00
iii) PSLC - Micro Enterprises 6,410.00 - - 31,476.00
iv) PSLC – General - 23,387.00 2,400.00 16,332.00
18.28 Details of Inter-Bank Participation Certificate (IBPC) transactions

(` in crore)
Sl Year ended March 31, 2022 Year ended March 31, 2021
Particulars
No. Sale Purchase Sale Purchase
i) Aggregate value of IBPCs entered - 1,911.30 4,948.00 1,514.00
ii) Aggregate consideration received - 1,911.30 4,948.00 1,514.00
iii) Aggregate gain recorded 50.91 - 314.54 -
iv) IBPCs outstanding [including principal amount of ₹ NIL (March - - 2,564.14 -
31, 2021 : ₹ 440.01 crore) collected against the pool sold and
not yet due for payment and included under other liabilities]
196
Schedules
18.29 Employee Stock Option Scheme (ESOS)

On July 26, 2017 the board of directors approved the Bandhan Bank Employee Stock Option Plan Series 1 for issue of stock options
to eligible employees and directors of the Bank.
The Shareholders of the Bank at the meeting held on 23rd November, 2017 has approved the Employee Stock Option Plan Series 1
and the grant of Employee Stock Option to the employees of the Bank. The said approval accords the Board of Directors of the Bank
or any Committee including the Nomination and Remuneration Committee, which the Board has constituted, to create, offer, and
grant at any time to permanent employees of the Bank, including any Director of the Bank, whether whole-time or otherwise but
excluding Promoter(s), Independent Directors and Directors holding directly or indirectly more than 10% of the outstanding equity
shares, employee stock options from time to time in one or more tranches.
This plan was framed in accordance with the SEBI (Employee Stock Option Scheme & Employee Stock Purchase Scheme) Guidelines,
1999 as amended from time to time and as applicable at the time of the grant. The accounting for the stock options has been in
accordance with the SEBI (Share Based Employee Benefits) Regulations, 2014 to the extent applicable.
Employee Stock Option Plan Series 1 provides for the issuance of options at the recommendation of the Nomination and Remuneration
Committee of the Board (‘NRC’) at the closing price on the working day immediately preceding the date when options are granted.
The closing price of the Bank’s equity share on an Indian stock exchange with the highest trading volume as of the working day
preceding the date of grant set forth by the NRC at the time of grant. The period in which the options may be exercised cannot
exceed five years from date of expiry of vesting period. However, if the participant’s employment terminates due to retirement
(including pursuant to any early/ voluntary retirement scheme), the whole of the unvested options shall vest on the first vesting date
relating to the said grant, immediately following the date of superannuation. During the years ended March 31, 2022 and March 31,
2021, no modifications were made to the terms and conditions of ESOPs as approved by the NRC.
Activity in the options outstanding under the various employee stock option plans as at March 31, 2022:
Sl Number of Weighted average

Particulars
No. options exercise price (`)
i) Options outstanding, beginning of year 1,64,92,073 410.17
ii) Granted during the year 83,70,166 315.14
iii) Exercised during the year* 1,67,024 180.05
iv) Forfeited / Lapsed during the year 20,49,334 407.48
v) Options outstanding, end of year 2,26,45,881 376.99
vi) Options exercisable 73,07,681 404.19
*Includes 8,489 shares against which application money was received but pending allotment to ` 0.15 crore
Activity in the options outstanding under the various employee stock option plans as at March 31, 2021:
Sl Number of Weighted average

Particulars
No. options exercise price (`)
i) Options outstanding, beginning of year 1,09,39,202 428.84
ii) Granted during the year 63,05,997 366.34
iii) Exercised during the year* 3,58,809 205.87
iv) Forfeited / Lapsed during the year 3,94,317 413.14
v) Options outstanding, end of year 1,64,92,073 410.17
vi) Options exercisable 37,97,289 409.24
*Includes 8,131 shares against which application money was received but pending allotment to ` 0.15 crore
The following table summarises the information about stock options outstandings as at March 31, 2022:
Weighted average
Sl Range of exercise Number of shares Weighted average
Plan remaining life of
No. price (`) arising out of options exercise price (`)
options (in years)
1 Plan Series 1 180.00 to 539.22 2,26,45,881 5.31 376.99
197
Schedules
The following table summarises the information about stock options outstandings as at March 31, 2021:
Weighted average
Sl Range of exercise Number of shares Weighted average
Plan remaining life of
No. price (`) arising out of options exercise price (`)
options (in years)
1 Plan Series 1 180.00 to 539.22 1,64,92,073 5.41 410.17
Fair value methodology

The weighted average fair value of stock option granted during the year was ₹ 110.10 . The fair value of options used to compute the
proforma net profit and earnings per equity share have been estimated on the dates of each grant using the binomial option-pricing
model. The Bank estimates the volatility based on the historical prices of its equity shares. The various assumptions considered in
the pricing model for the ESOPs granted during the year ended March 31, 2022 are:
Particulars March 31, 2022

Dividend yield (%) 0-0.34%
Expected volatility (%) 25.03%- 26.67% -29.40%
Risk-free interest rate (%) 5.11% -5.22%- 5.59%-
5.76%-6.12%
Expected remaining life of the options (yrs) 0.04- 8.88 yrs
The expected volatility reflects the assumption that is indicative of future trends, which may also not necessarily be the actual
outcome.
The Bank measures the cost of ESOP using the intrinsic value method. Had the Bank used the fair value model to determine
compensation, its profit after tax and earnings per share as reported would have changed as indicated below:
(` in crore)
Particulars
March 31, 2022 March 31, 2021
Profit after tax as reported 125.79 2,205.46
Add: ESOP cost using the intrinsic value method - -
Less: ESOP cost using the fair value method* 79.23 62.49
Proforma profit after tax 46.56 2,142.97
(including dilutive potential equity share)
Earnings Per Share
Basic
- As reported 0.78 13.70
- Proforma 0.29 13.31
Diluted
- As reported 0.78 13.69
- Proforma 0.29 13.30
* In accordance with the RBI circular RBI/2021-22/95 DOR.GOV.REC.44 /29.67.001 /2021-22 “Guidelines on Compensation of Whole Time Directors/
Chief Executive Officers/ Material Risk Takers and Control Function staff – Clarification” dated August 30, 2021, Share-linked instruments granted to
Whole Time Directors/ Chief Executive Officers/ Material Risk Takers and Control Function staff after the accounting period ending March 31, 2021,
are fair valued on the date of grant, using Black-Scholes model instead of Intrinsic value method. As a result, ‘Employees’ cost’ for the year ended
March 31, 2022 is higher by ₹ 5.24 crores and the same is therefore not considered in above table.
198
Schedules
18.30 Corporate Social Responsibility

a) Gross amount required to be spent by the Bank during the year ended is ₹ 70.49 crore (Previous year ended March 31, 2021 : ₹ 60.82
crore)
b) The following table sets forth, for the periods indicated, the amount spent by the Bank on CSR related activities;
(` in crore)
Year ended March 31, 2022 Year ended March 31, 2021
Sr.
Particulars Yet to be Yet to be
No. In Cash Total In Cash Total
paid in Cash paid in Cash
i) Construction/ acquisition of any assets - - - - - -
ii) On purpose other than (i) above** 66.57 3.92* 70.49 50.54 10.27 60.82
* It includes amount to be received ₹ 3.72 crore which would be spent on ongoing CSR projects.
** An amount of ₹ 3.92 crore (Previous Year ₹ 10.27 crore) has been transferred to a special account “Unspent Corporate Social Responsibility Account”
maintained with a scheduled Bank.
18.31 The outbreak of COVID-19 pandemic across the globe and in India has contributed to a significant volatility in the financial
markets and slowdown in the economic activities. Consequent to the outbreak of the COVID-19 pandemic, the Indian government
announced a lockdown in March 2020. Subsequently, the national lockdown was lifted by the government, but regional restrictions
continued to be implemented in areas as India witnessed two more waves of the Covid-19 pandemic during the year ended
March 31, 2022. Currently, while the number of new Covid-19 cases have reduced significantly and the Government of India has
withdrawn most of the Covid-19 related restrictions, the Bank continues to carry provision over and above the RBI requirements
by ₹ 1,846.03 crores on standard assets as at March 31, 2022 (₹ 387.96 crores as at March 31, 2021).
18.32 As part of the normal banking business, the Bank grants loans and advances to its borrowers with permission to lend/invest
or provide guarantee/security in other entities identified by such borrowers or on the basis of the basis of security/guarantee
provided by the co-borrower. Similarly, the Bank may accept funds from its customers, who may instruct the Bank to lend/invest/
provide guarantee or security or the like against such deposit in other entities identified by such customers. These transactions are
part of Bank’s normal banking business, which is conducted after exercising proper due diligence including adherence to “Know
Your Customer” guidelines.
Other than the nature of transactions described above:

• No funds have been advanced or loaned or invested by the Bank to or in any other person(s) or entity(ies) (“Intermediaries”)
with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Bank (Ultimate
Beneficiaries).
• The Bank has not received any fund from any party(s) (Funding Party) with the understanding that the Bank shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Bank (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
18.33 In accordance with the instructions in the paragraph 5 of the RBI circular dated April 07, 2021, the Bank refunded / adjusted
‘interest on interest’ of ₹ 1.77 crore to all eligible borrowers during the year ended March 31, 2022.
18.34 Miscellaneous income includes ₹ 657.72 crore (Previous Year ended March 31, 2021 ₹ 731.76 crore) on sale of Priority sector
lending certificates.
18.35 Other Expenditure includes IT operating expenses of ₹ 183.04 crore (Previous Year ended March 31, 2021 ₹ 109.62 crore).
18.36 Remuneration by way of sitting fees paid to the Non-Executive Directors for attending meeting of the Board and its committees
during the year ended March 31, 2022 amounting to ₹ 2.67 crore (Previous Year: ₹ 2.42 crore).
199
Schedules
18.37 Details of payments to Auditors

(` in crore)
Particulars
March 31 2022 March 31 2021
Statutory Audit Fees 1.07 1.07
Others 0.91 0.62
18.38 Previous year figures have been regrouped/reclassified, wherever necessary, to conform to current year classification. The
previous year figures were audited by Deloitte Haskins & Sells, Chartered Accountants.
117365W 107122W / W100672

Date : May 13, 2022 Date : May 13, 2022
Mumbai Mumbai
DIN: 00342477 DIN: 08249893
200
Corporate Information
Registered & Head Office Statutory Auditors

Regd. Office: DN-32, Sector V, Salt Lake City, Kolkata - 700 091 Deloitte Haskins & Sells, Chartered Accountants
Head Office: 12th to 14th Floor, Adventz Infinity@5, BN 5, 19th Floor, Shampat-V, S. G. Highway
Sector V, Salt Lake City, Kolkata 700 091 Ahmedabad - 380 015, Gujarat
Tel No.: 91 33 6609 0909 Tel No.: +91 79 6682 7300 | Fax No.: +91 79 6682 7400
Email: [email protected]
Website: www.bandhanbank.com M M Nissim & Co LLP, Chartered Accountants
Barodawala Mansion, B – wing,
Corporate Identity Number (CIN) 3rd Floor, 81 Dr. Annie Besant Road
Worli, Mumbai – 400 018
L67190WB 2014PL C204622
Listed with Scrip Name Secretarial Auditor

BSE Scrip Code: 541153 CS Anjan Kumar Roy
NSE Symbol: BANDHANBNK Anjan Kumar Roy & Co., Company Secretaries
GR 1, Gouri Bhaban, 28A Gurupada Halder Road,
Registrars & Transfer Agents Kolkata - 700 026
Tel No.: +91 33 2475 0112 | Email: [email protected]
KFin Technologies Limited
(formerly known as KFin Technologies Private Limited)
Auditor for Corporate Governance Report
Selenium Tower B, Plot Nos. 31 & 32, Financial District,
Nanakramguda, Serilingampally Mandal CS Anjan Kumar Roy
Hyderabad - 500 032, Telangana Anjan Kumar Roy & Co., Company Secretaries
Toll free number - 1 800 309 4001 GR 1, Gouri Bhaban, 28A Gurupada Halder Road,
Email: [email protected] Kolkata - 700 026
Website: www.kfintech.com Tel No.: +91 33 2475 0112 | Email: [email protected]
bandhanbank.in bandhanbank_in company/bandhanbank C/BandhanBankLimited bandhan_bank
Registered Office
DN 32, Sector V, Salt Lake City, Kolkata - 700 091, West Bengal, India
T: +91-33-6609 0909 | F: +91-33-6609 0502
www.bandhanbank.com

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Belief

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Your Bank’s Philosophy

Vision Values C Cost Effective & Simple

To be a world-class Our values are anchored

Serving the unserved and 10% 35%

Jammu and Kashmir Bank Branch

Dadra & Nagar Haveli Maharashtra

Andaman and Nicobar Islands

Geographical Distribution of 9% 10%

Business Mix in FY 2021-22

Total Business Advances Deposits

*(TLTRO & PTC amount ₹547 crore included in FY 2021-22 Advances)

Total Income (Net)

2020-21* 9,586 2020-21 17,148

2021-22 11,537 2021-22 16,130

* Re grouped to conform to FY 2021-22 classification.

2017-18 1,346 2017-18 11,624

2018-19 1,952 2018-19 17,618

Profit After Tax

2021-22 126 2021-22 40,079

2019-20 30.82 2019-20 27.43

2020-21 29.39 2020-21 23.47

Cost to Income Ratio

2017-18 1.25 2017-18 9.69

2018-19 2.04 2018-19 10.43

2020-21 6.81 2020-21 7.78

2021-22 6.46 2021-22 8.17

2018-19 3,014 2018-19 0.58

2019-20 3,541 2019-20 0.58

2021-22 4,450 2021-22 1.66

2017-18 1.30 2017-18 936

2020-21 2.30 2020-21 1,147

2021-22 2.63 2021-22 1,189

- Dr. Anup Kumar Sinha

The RBI announced that 1.5 lakh post

Your Bank’s Progress

- Chandra Shekhar Ghosh

Chandra Shekhar Ghosh

Dr. Allamraju Subramanya Ramasastri

Dr. Aparajita Mitra

Dr. Holger Dirk Michaelis

Subrata Dutta Gupta

Thekedathumadam Subramani Raji Gain

Arvind Singla Kamal Batra

Santanu Banerjee Sunil Samdani

Biswajit Das Manoj Kumar Mauni

Nand Kumar Singh Ronti Kar

Siddhartha Sanyal Sudheer Reddy Govula

Sujoy Roy Arvind Kanagasabai

Jagannadha Rao Suvvari P Ramaswamy

Ravi Lahoti Satyajit Ghosh

Suresh Srinivasan Iyer Indranil Banerjee

Diversified Product Suite

RETAIL LIABILITY PRODUCTS

The overall deposit book

In the last two years, digital

II. Banking that’s personalised through

II. Banking that’s personalised through

Your Bank adheres to three levels of Management Committee (MRMC),

Your Bank focusses on a set of Emphasis on acceptability of risks

Your Bank believes that communication Floor level awareness