1. Investments:

1.1 In accordance with Reserve Bank of India guidelines, the investments portfolio of the Bank has been classified into three categories, as given below:

1.2 SLR Securities (domestic) under "Held to Maturity" accounted for 20.66% (previous Year 21.30%) of Bank's Demand and Time liabilities as at 31^st March 2024 as against ceiling of 23.00% (previous year 23%) stipulated by Reserve Bank of India.

1.3 In respect of Held to Maturity category of Investments, premium of ?45.28 Crores was amortized during the year (previous year ?48.32 Crore). In accordance with the RBI guidelines amortization expense of premium on investments is deducted from interest income.

Further, a sum of ?4100.00 crore being non-Interest bearing GOI Recapitalization Bonds investments which are held under Held To Maturity category at carrying cost are maturing from March 2031 to March 2036.

1.4 In accordance with the RBI Master Circular RBI/DOR/2021-22/83 DOR.ACC.REC. No.45/21.04.018/2021-22 dated August 30,2021, as updated, the Bank was required to disclose profit/loss on revaluation of investments as well as provision for depreciation under the head Proft /loss on revaluation of investment under Schedule 14-"Other Income" and Provision for non- performing investment (NPI) is to be reflected under Provisions and contingencies. The Bank has hitherto been accounting the mark to market impact in the case of nonperforming investments under the head Profit/ loss on revaluation of investment and the remaining portion of provision for non- performing investment under the head Provisions and contingencies. During the year, the entire provision required for non-performing investments has been disclosed under "provision and contingencies". Consequent to this, Profit/loss on revaluation of investment is higher to the extent of ?576.96 crores with corresponding increase in Provisions and contingencies. The impact though related to previous periods has been accounted for during the year, previous year figures have not been restated and are therefore not comparable.

1.5 Securities of Face Value for ?517.00 Crore (previous year ? 1,717 Crore) towards CCIL Settlement Guarantee Fund/Default Fund and securities for ?13,018.00 Crore (previous year ?15,518.00 Crore) towards collateral for borrowing under TREPS/Default Fund have been kept with Clearing Corporation of India Limited. Besides, securities to the extent of ?127.10 Crore (previous year ?127.10 Crore) has been lodged with CCIL towards default fund for Forex operations and ?15.00 Crore (previous year ?15.00 Crore) held for Currency derivative segment. The Bank has placed securities of face value Rs.3,500 Crore (previous year ?1,500 Crore) with Reserve Bank of India for intraday borrowing. The Bank has also placed Securities to the extent ?16,000 Crore (previous year ?6,100 Crore) with Reserve Bank of India for our borrowing under the LAF window.

1.6 Shares under Investments in India in Regional Rural Bank - Odisha Gramya Bank is ?606.90 Crore (previous year ?606.90 Crore) which includes amount towards Share Capital Deposits.

1.7 The Bank sold Government Securities from HTM category during the year through, outright sale and no security was sold under Reserve Bank of India's Open Market Operations (OMO). The Bank has sold Government Securities (other than OMO), to the extent of ?1,668.52 Crore (BV) [previous year ?2408.02 Crore] (within 5%, prescribed limit of Reserve Bank of India) and booked a profit of ?14.20 Crore [previous year ?27.95 Crore]. In accordance with the RBI guidelines the profit on sale of Government Securities under HTM category has been taken to Profit & Loss account and subsequently has been appropriated to capital reserve account (Net of taxes and amount to be transferred to Statutory Reserve).

Investment Fluctuation Reserve

As per Reserve Bank of India circular number RBI/2017-18/147 DBR. No. BP BC.102/ 21.04.048/2017-18 dated April 2, 2018, from the year 2018-2019, an Investment Fluctuation Reserve (IFR) is to be created to build up adequate reserves to protect the Bank against increase in yields in future.

The Transfer to IFR is to be the lower of the following -

a) Net profit on sale of Investments during the year or

b) Net profit for the year less mandatory appropriations, until the amount of IFR is at least 2 percent of the HFT and AFS portfolio, on a continuing basis.

During the year ended on March 31^st 2024 an amount of ?NIL ( Previous year ?390.00 Crore) has been transferred to IFR.

2. Advances

2.1 The Classification for advances and provisions for possible loss has been made as per prudential norms issued by Reserve Bank of India.

2.2 Claims pending settlement and claims yet to be lodged with Guarantee Institutions identified by the branches have been considered for provisioning requirements on the basis that such claims are valid and recoverable.

2.3 In assessing the reliability of certain advances, the estimated value of security, Central Government Guarantees etc. have been considered for the purpose of asset classification and income recognition.

2.4 The classification of advances, as certified by the Branch Managers have been incorporated, in respect of unaudited branches.

3. Fixed Assets (Property, Plant and Equipment)

The Profit on sale of assets during the year was Rs.2,20,92,202.68 (Rupees Two crore twenty lakhs ninety thousand two hundred and two and sixty eight paise only).

4. Rupee Interest Rate Swap

Deferred income on account of gains on termination of Rupee Interest Rate Swaps taken for hedging as on March 31^st 2024 is NIL (previous year NIL). This amount, if any, is to be recognized over the remaining contractual life of Swap or life of the Assets/Liabilities, whichever is earlier.

5. Inter Branch Reconciliation/internal office accounts

Reconciliation of Inter Branch transactions and internal/office accounts is under progress at different stages at the branches and/or Central Office Departments. Steps are being taken to eliminate the outstanding entries as at the earliest. The necessary accounting adjustments if any required shall be carried out on the completion of such process. The Management however does not anticipate any material consequential effect of pending reconciliation and elimination of outstanding entries.

6. Capital and Reserves

• During the Financial Year 2023-24, Bank has not issued Basel III Tier II Bonds. For the Financial year 2022-23, Bank has issued Basel III Tier II Bonds Rs.1000 Crore through private placement subscribed by Qualified Institutional Buyers (QIBs).

• During the financial year 2023-24, Bank has not raised any equity capital. The paid-up capital of the Bank stands at Rs.18,902.41 Crore as on March 31^st, 2024. The Government of India shareholding stands at 96.38% as on March 31^st, 2024.

7. Taxes

7.1 In the opinion of management provisions under section 115 JB (Minimum Alternate Tax ) of the Income Tax Act, 1961 are not applicable to the Bank. Therefore Bank has not provided any amount towards provision for Income tax.

7.2 Tax paid in advance (Net of provisions) is under reconciliation. This is on account of amounts pending assessment/under appeal/ tax paid under dispute. [Refer Schedule 11(iii)].

7.3 Taking into consideration the decisions of Appellate Authorities, certain judicial pronouncements and the opinion of tax experts, no provision is considered necessary in respect of disputed and other demands of income tax aggregating Rs.8450.79 Crore (previous year Rs.9081.37 Crore), Service Tax aggregating to Rs. 238.42 Crore (previous year Rs.220.52 Crore) and Goods and Service Tax aggregating to Rs.1071.78 Crore (Previous year Rs.1648.68 Crs).

7.4 Tax expense for the year amounting to Rs.756.91 Crore includes Current Tax expense of Rs. 22.67 Crore and Deferred Tax expense of Rs.734.24 Crore - refer note no.18.8.

7.5 The Bank has a carried balance of Net Deferred Tax Assets up to March 31,2024 aggregating to ?5299.94 Crore which was recognized in earlier periods and on estimated basis Bank has reversed deferred tax asset amounting to ? 384.24 Crore for the quarter (31.03.2024) and ? 734.24 Crore for the year ended 31.03.2024.

8. There has been no reported cases of delayed payments of the principal amount or interest due thereon to Micro, Small & Medium Enterprises.

b) Liquidity coverage ratio (LCR)

Reserve Bank of India had introduced the Liquidity Coverage Ratio (LCR) vide circular No RBI/2014-15/529 DBR. No. BP.BC.80/21.06.201/2014-15 dated March 31,2015 which has been modified from time to time, in order to ensure short term resilience of Banks to potential liquidity disruptions by ensuring that Bank have sufficient high quality liquid assets (HQLA) to survive an acute stress scenario lasting for 30 days. The minimum LCR requirement set out in the Reserve Bank of India guidelines for the Bank effective for FY 2023-24 is 100%.

Stock of high quality liquid assets (HQLAs)

Definition of LCR:

Total net cash outflows over the next 30 calendar days

In the stock of high quality liquid assets (HQLA), there are two categories of assets, viz. Level 1 and Level 2 assets. Level 2 assets are sub-divided into Level 2A and Level 2B assets on the basis of their price-volatility. Each category includes assets which the Bank is holding on the first day of the stress period. Level 1 assets are with 0% haircut while in Level 2, 2A assets are with a minimum 15% haircut and Level 2B Assets, with a minimum 50% haircut.

The total net cash outflows is defined as the total expected cash outflows minus total expected cash inflows for the subsequent 30 calendar days. Total expected cash outflows are calculated by multiplying the outstanding balances of various categories or types of liabilities and off-balance sheet commitments by the rates at which they are expected to run off or be drawn down. Total expected cash inflows are calculated by multiplying the outstanding balances of various categories of contractual receivables by the rates at which they are expected to flow in up to an aggregate cap of 75% of total expected cash outflows.

Bank has calculated LCR for all working days for the March 2024 quarter based on the data extracted from the Bank's database through the program specifically designed for this purpose. Bank's LCR for the quarter ended March 31^st 2024 stands at 138.93% based on daily average of three months (Q4 FY 2023-24) and is well above the present minimum requirement prescribed by Reserve Bank of India of 100% for the Quarter ended March, 2024. Bank is having enough liquidity to meet sudden cash outflows.

The detailed Quantitative disclosure is placed below:

Liquidity Management in the Bank is driven by the ALM Policy of the Bank and regulatory prescriptions. The Domestic and Overseas Centers are reporting to the Asset Liability Management Committee (ALCO). The ALCO has been empowered by the Bank's Board to formulate the Bank's funding strategies to ensure that the funding sources are well diversified and is consistent with the operational requirements of the Bank. All the major decisions of ALCO are being reported to Risk Management Committee of Board (RMCB) periodically. In addition to daily/monthly LCR reporting, Bank prepares daily Structural Liquidity statements to assess the liquidity needs of the Bank on an ongoing basis.

The Bank has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory requirements. Retail deposits constitute major portion of total funding sources, and such funding sources are well diversified. Management is of the view that the Bank has sufficient liquidity cover to meet its likely future short-term requirements.

c) Net Stable Funding ratio (NSFR)

Reserve Bank of India introduced the Net Stable Funding Ratio (NSFR) in order to promote resilience of Banks over a longer-term time horizon by requiring Banks to fund their activities with more stable sources of funding on an ongoing basis. The minimum NSFR requirement set out in the Reserve Bank of India guidelines effective from October 1, 2021 is 100%

Available Stable Fund (ASF)

Definition of NSFR:

Required Stable Fund (RSF)

The NSFR is defined as the amount of available stable funding relative to the amount of required stable funding. Available stable funding (ASF) is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered by the NSFR, which extends to one year. The amount of required stable funding (RSF) of a specific institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution as well as those of its off-balance sheet (OBS) exposures.

Bank has calculated NSFR for March 31^st 2024 which stands at 146.80% which is well above the Reserve Bank of India prescribed minimum requirement of 100%. Bank's majority funding is from Retail and Small Business customers, which provide high stability with regard to stability of Funding. Bank is having enough stable sources of funding to fund their activities on an ongoing basis over a longer-term time horizon.

d) Sale and transfers to/from HTM category/Permanent Category

During the year ended March 31,2024 and March 31,2023, Sale from Held To Maturity category (above the prescribed limit of 5%) during the current year: Nil [Previous Year: Nil]. Transfer To/From Held To Maturity Category other than the Category Transfer allowed by Reserve Bank of India at the beginning of the Year: NIL

As per Master Circular-Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions) 2021d 25.08.2021 issued by Reserve Bank of India (updated as on March 23, 2022), Banks are permitted to shift Investments to/ from Held To Maturity once in a year, normally at the beginning of the accounting year. No further shifting will be allowed during remaining part of that accounting year, except when explicitly permitted by Reserve Bank of India.

d) Particulars of resolution plan and restructuring

The Reserve Bank of India Circular No. RBI/2018-19/2013 DBR No. BP.BC.45/21.04.048/2018-19 dated 07.06.2019 on resolution of stressed assets, where viable resolution plan has not been implemented within 180 days/365 days of review period - Prudential framework:

e) Divergence in asset classification and provisioning

RBI vide its notification no. RBI/DOR/2021-22/83 DOR.ACC.REC.No.45/ 21.04.018/2021-22 dated 30.08.2021 (updated as on 01.04.2024) has made disclosure requirement by the Banks where divergences from prudential norms on income recognition, asset classification and provisioning exceed certain thresholds in their Annual report.

For the FY ending 31.03.2023, the Banks should disclose divergences, if either or both of the following conditions are satisfied:

(a) the additional provisioning for NPAs assessed by RBI exceeds 5 % of the reported profit before provisions and contingencies for the reference period, and

(b) the additional Gross NPAs identified by RBI exceed 5 % of the published incremental Gross NPAs for the reference period

If any of the parameter (a) and / or (b) triggers, the information to be reported to the Stock Exchanges.

Present Status: The RBI has submitted the divergence report for the year ended 31.03.2023 and assessment of trigger points are as follows:

a) the additional provisioning for NPAs assessed by RBI exceeds 5 % of the reported profit before provisions and contingencies for the reference period, and

f) Disclosure of transfer of loan exposures

Disclosures as per RBI Master directions ref no RE/DOR/2021-22/86 DOR.STR.REC.51/21.04.048/2021-22 "Master Direction - Reserve Bank of India (Transfer of loan exposures) Directions, 2021" dated 24.09.2021, the details of loans transferred / acquired during quarter ended March 31,2024 are given below:

iii) The Bank has reversed the amount of Rs 161.23 Crore of excess provision to the profit & loss account on account of sale of stressed loans during year ending March 31^st 2024.

iv) Details of The Distribution of the SRs held across the various categories of Recovery Ratings assigned to such SRs by the credit Rating Agencies as on March 31^st 2024.

1. Bank has opted to provide full provision for the liability towards frauds for the financial year ended March 31^st, 2024, instead of spilling over a period of four quarters.

2. During the quarter ended March 31^st 2024, 1 number of advance related frauds reported, having NIL amount outstanding.

> Bank has opted to provide full provision for the liability towards frauds for financial year ended March 31^st 2024, instead of spilling over a period of four quarters.

> During the quarter ended March 31^st 2024, 6 frauds under other than advances category has been reported to Reserve Bank of India, where likely loss is Rs. 0.22 crores and for which the Bank is holding 100% provision. FMR wise fraud data is being reconciled.

> Bank has opted to provide full provision for the liability towards frauds for financial year ended March 31^st 2024 instead of spilling over a period of four quarters.

> During the quarter ended March 31^st 2024, 1569 frauds under cyber frauds category has been reported to Reserve Bank of India, where the likely loss is 0.01 crores. The provision for the amount of INR 0.01 crores has been made for the likely loss.

*Till such time, as Banks move over to internal rating systems, Banks shall use the seven-category classification followed by Export Credit Guarantee Corporation of India Ltd. (ECGC) for the purpose of classification and making provisions for country Risk exposures. ECGC shall provide to Banks, on request, quarterly updates of their country classifications and shall also inform

all Banks in case of any sudden major changes in country classification in the interim period.

d. Unsecured advances

Banks shall disclose the total amount of advances for which intangible securities such as charge over the rights, licenses, authority, etc. have been taken as also the estimated value of such intangible collateral as per the following format:

f. Intra-group exposures

With the developments of financial markets in India, Banks have increasingly expanded their presence in permitted financial activities through entities that are owned by them fully or partly. As a result, Banks' exposure to the group entities has increased and may rise further going forward. In order to ensure transparency in their dealings with group entities, Banks should make the following disclosures for the current year with comparatives for the previous year:

g. Unhedged foreign currency exposures

Based on the available financial results and the declaration from the borrowers, the Bank has estimated the liability towards unhedged foreign currency Exposure to their constituents in terms of RBI/2022-23/131 DOR .MRG.REC.76/00-00-007/2022-23 dated October 11,2022 and the Bank holds provision of Rs.12.86 Cr as on March 31,2024.

Note: Nature and terms of the swaps including information on credit and market Risk and the accounting policies adopted for recording the swaps should also be disclosed.

$ Examples of concentration could exposures to particular industries or swaps with highly geared companies.

@ if the swaps are linked to specific assets, liabilities or commitments, the fair value would be the estimated amount that the Bank would receive or pay to terminate the swap agreements as on the balance sheet date, for a trading swap the fair

value would be its mark to market value.

c. Disclosures on Risk exposure in derivatives i) Qualitative disclosures

The Bank uses Interest Rate Swaps (IRS), Currency Swaps and Options for hedging purpose to mitigate interest rate Risk and currency Risk in Banking book. Such transactions are entered only with Clients and Banks having agreements in place.

a) The Risk Management Policy of the Bank allows using of derivative products to hedge the Risk in Interest/Exchange rates that arise on account of overseas borrowing/FCNR(B) portfolio/the asset liability mismatch, for funding overseas branches etc.

b) The Bank has a system of evaluating the derivatives exposure separately and placing appropriate credit lines for execution of derivative transactions duly reckoning the Net Worth and security backing of individual clients.

c) The Bank has set in place appropriate control systems to assess the Risks associated in using derivatives as hedge instruments and proper Risk reporting systems are in place to monitor all aspects relating to derivative transactions. The Derivative transactions were undertaken only with the Banks and counterparties well within their respective exposure limit approved by appropriate credit sanctioning authorities for each counter party.

d) The Bank has set necessary limits in place for using derivatives and its position is continuously monitored.

e) The Bank has a system of continuous monitoring appraisal of resultant exposures across the administrative hierarchy for initiation of necessary follow up actions.

f) Derivatives are used by the Bank to hedge the Bank's Balance sheet exposures.

g) The income from such derivatives are amortized and taken to profit and loss account on accrual basis over the life of the contract. In case of early termination of swaps undertaken for Balance Sheet Management, income on account of such gains would be recognized over the remaining contractual life of the swap or life of the assets/liabilities whichever is lower.

h) All the hedge transactions are accounted on accrual basis. Valuations of the outstanding contracts are done on Mark to Market basis. The Bank has duly approved Risk Management and Accounting procedures for dealing in Derivatives.

i) The derivative transactions are conducted in accordance with the extant guidelines of Reserve Bank of India.

The Bank uses Rupee Interest Rate Swaps (IRS) for hedging purpose to mitigate interest rate Risk in Government Securities and to reduce the cost of Subordinated Debt. In addition, the Bank also enters into rupee interest rate swaps for trading purposes as per the policy duly approved by the Board. Swap transactions are entered only with Banks having ISDA agreements in place.

a) The Bank has put in place an appropriate structure and organization for management of Risk, which includes Treasury Department, Asset Liability Management Committee and Risk Management Committee of the Board.

b) Derivative transactions carry Market Risk (arising from adverse movement in interest rates), Credit Risk (arising from probable counter party failure), Liquidity Risk (arising from failure to meet funding requirements or execute the transaction at a reasonable price), Operational Risk, Regulatory Risk and Reputation Risk. The Bank has laid down policies, set in place appropriate control systems to assess the Risks associated in using derivatives and proper Risk reporting and mitigation systems are in place to monitor all Risks relating to derivative transactions. The IRS transactions were undertaken with only Banks as counter party and well within the exposure limit approved by the Board of Bank for each counter party.

c) Derivatives are used by the Bank for trading and hedging. The Bank has an approved policy in force for derivatives and has set necessary limits for the use of derivatives and the position is continuously monitored. The value and maturity of the hedges which are used only as back to back or to hedge Bank's Balance Sheet has not exceeded that of the underlying exposure.

d) The accounting policy for derivatives has been drawn up in accordance with Reserve Bank of India guidelines, as disclosed in Schedule 17 - Significant Accounting Policies (Policy No.6).

Risk Management policies pertaining to derivatives with articular reference to the extent to

which derivatives are used, the associated Risks and business purposes served. Also include

a) The Structure and Organization for management of Risk in derivatives trading.

b) The Scope and nature of Risk measurement, Risk reporting and Risk monitoring systems

c) Policies for hedging and/or mitigating Risk and strategies and processes for monitoring the continuing effectiveness of hedges/mitigants; and

d) Accounting policy for recording hedge and non-hedge transactions; recognition of income, premiums and discounts; valuation of outstanding contracts; provisioning, collateral and credit Risk mitigation.

d. Credit default swaps

Bank using a proprietary model for valuation of Credit Default Swaps (CDS) positions, shall disclose the valuation as per the proprietary model, including the rationale for using that model and an explanation of the valuation methodology in the Notes to Accounts in their financial statements. The disclosure shall also include the valuation as per the CDS curve published by Fixed Income Money Market and Derivatives Association of India (FIMMDA) or a benchmark recommended by FIMMDA¹.

f. Implementation of IFRS converged Indian Accounting Standards (Ind AS)

As per RBI guidelines, Bank is in the process of implementing Ind AS (Indian Accounting Standards). RBI vide Circular DBR.BP.BC.No.29/21.07.001 / 2018-19 dated 22nd March 2019 has deferred implementation of Ind AS till further notice. However, RBI requires all Banks to submit Proforma Ind AS Financial Statements every half-year. A project Steering Committee headed by Executive Director has been formed for monitoring of Implementation of Ind AS in the Bank as per RBI directive. Bank is submitting Proforma Ind AS Financial Statements to RBI on half yearly basis after approval of Project Steering Committee

4^th October 2021, the Bank had opted to amortize additional liability on account of revision in family pension for employees as per IBA Joint Note dated November 11, 2020 over a period of not exceeding 5 (five) years, beginning with financial year 2021-22, subject to a minimum of 1/5 of the total amount being expensed every year and has been carrying amortized portion amounting to Rs.255.51 Crores as at March 31, 2023.

During the year, the Bank has charged entire carried forward amount to the Profit & Loss Account and the carried forward amount now is NIL.

2. Gratuity:

Unamortised gratuity liabilities as on March 31^st 2024 is NIL

Provision for the employee benefits pertaining to Pension, Gratuity & Leave encashment have been made on the basis of Actuarial Valuation.

i. Letters of Comfort (LoC)

Banks should disclose the full particulars of all the letters of comfort (LoCs) issued by them during the year, including their assessed financial impact , as also their assessed cumulative financial obligations under the LoCs issued by them in the past and outstanding, in its published financial statements, as part of the "Notes to Accounts"

During the year 2009-10, the Bank has issued a Letter of Comfort (LoC) undertaking to maintain a minimum CRAR of 12% in respect of Bangkok branch and to arrange to convert retained earnings to capital funds and/or infuse further capital in order to restore the CRAR to a minimum of 12%, subject to approval from Reserve Bank of India. The assigned capital of Bangkok Branch stands at THB 2199 Mio(25.97%) as on March 31^st 2024.

In the worst case scenario of the entire textile exposure of the branch becoming NPA. We may have to make additional provision to the extent of THB 92.854 Mio being unsecured portion of standard textile advances. If this contingency arises, there would be no additional capital to be remitted as existing reserves are adequate to cover the unsecured amount.

During the year 2010-11, the Bank has issued a letter of Comfort favoring Bank Negara Malaysia. The Bank in association with other Joint Venture partners will provide support to India International Bank (Malaysia) Berhad in funding, business and other matters as and when required and ensure that it complies with the requirements of the Malaysian laws, regulations and policies in the conduct of its business operations and management. The financial impact of the letter of Comfort issued to Bank Negara Malaysia is to the tune of our share of 35% of the paid-up capital of MYR 330 Mio i.e., MYR 115.500 Mio.

Based on the host country regulator's guidelines, Bank has issued letter of Comfort favoring CBSL at its meeting held on 12.09.2019 for meeting all obligations and liabilities arising out of business carried on by IOB Srilanka Branch.

16. COVID-19 pandemic has adversely impacted the economic activity across the globe including the Indian economy for more than two years. However, the Bank's results, operations and asset quality have not been affected much because of the pandemic. Further, Bank has made necessary provisions for all COVID related restructured loans. The Bank is however keeping a close watch on developments on an ongoing basis and taking proactive measures continuously to maintain and improve asset quality. The Bank, therefore, believes that there may not be any significant impact on Bank's future financial results

18. Comparative Figures

Previous year's figures have been regrouped / rearranged / reclassified wherever necessary.

DISCLOSURES UNDER ACCOUNTING STANDARDS1. Accounting Standard 5 - Net Profit or Loss for the period, prior period items and changes in accounting policies

The financial statements have been prepared following the same accounting policies and practices as those followed for the year ended March 31,2023.

During the year, there were no material prior period income / expenditure items.

2. Accounting Standard 9 - Revenue Recognition

Revenue has been recognized as described in item No. 2 of Significant Accounting Policies -Schedule 17.

4. Accounting Standard 15 - Employee Benefits

The Bank had adopted Accounting Standard 15 (Revised) "Employees Benefits" issued by the Institute of Chartered Accountants of India.

1. Short-Term Employee Benefits:

The undiscounted amounts of short-term employee benefits, such as medical benefits which are expected to be paid in exchange for the services rendered by employees, are recognized during the period when the employee renders the service.

2. Long-Term Employee Benefits:

The summarized position of Post-employment benefits and long term employee benefits recognized in the Profit & Loss Account and Balance Sheet as required in accordance with Accounting Standard - 15 (Revised) are as under:-

(i) The financial assumptions considered for the calculations are as under:

Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on the date of valuation (Balance sheet dated 31.03.2024).

Expected Rate of Return: The Overall expected rate of return on assets is determined based on the market prices prevailing on that date applicable to the period over which the obligation is to be settled.

Bank's best estimate expected to be paid in next Financial Year for Gratuity is Rs. 93.40 crores.

II) Defined Contribution Plan:

The Bank has a Defined Contribution Pension Scheme (DCPS) applicable to all categories of officers and employees joining the Bank on or after 1st April 2010. The Scheme is managed by NPS Trust under the aegis of the Pension Fund Regulatory and Development Authority. National Securities Depository Limited has been appointed as the Central Record Keeping Agency for the NPS. During FY 2023-24, the Bank has contributed Rs.165.26 Crore (Previous Year Rs.145.51 Crore).

The estimates of future salary increases, considered in actuarial valuation, take into account actual return on plan assets, inflation, seniority, promotion and other relevant factors, such as supply and demand in employee market. Such estimates are very longterm and are not based on limited past experience/immediate future. Empirical evidence also suggests that in very long-term, consistent high salary growth rates are not possible. The said estimates and assumptions have been relied upon by the auditors.

In respect of overseas branches, disclosures if any required for Employee Benefit Schemes are not made in the absence of information.

2. The Bank is holding 18.06% in Universal Sompo General Insurance Company Ltd. Since the shareholding in the Company is less than 25%, the same has not been considered as Joint Venture for preparation of Consolidated Financial Statements as per extant RBI guidelines.

3. The consolidated financial statements include the interest in JV which has been accounted in proportionate consolidation method as per AS 27 (Financial Reporting of Interest in JV). Accordingly, the share of excess of net asset over the carrying cost of investment of Rs.15.86 Crore in JV representing FCTR is reported under reserves and surplus, this represents the translation difference.

4. In respect of investment in Associate, which has been accounted under equity method as per AS 23 (Accounting for investment in Associates), the carrying amount of investment in equity shares of Rs.606.90 Crore is adjusted against IOB's share of net assets of Rs.214.83 Crore and the balance of Rs.392.07 Crore is adjusted against balance in Reserves and Surplus to recognize the decline in the value.

10. Accounting Standard 24 - Discontinuing Operations

This Standard establishes principles for reporting information about discontinuing operations. Merger/ closure of branches of Banks by transferring the assets/ liabilities to the other branches of the same Bank may not be deemed as a discontinuing operation and hence this Accounting Standard will not be applicable to merger / closure of branches of Banks by transferring the assets/liabilities to the other branches of the same Bank. Disclosures shall be required under the Standard only when: (i) discontinuing of the operation has resulted in shedding of liability and realisation of the assets by the Bank or decision to discontinue an operation which will have the above effect has been finalised by the Bank and (ii) the discontinued operation is substantial in its entirety.

11. Accounting Standard 26 - Intangible Assets

Impairment of Asset in our Bank is Nil.

12. Accounting Standard 27 - Financial Reporting of Interest in Joint Venture

The Bank has an investment of 35% in the JV, India International Bank (Malaysia) Berhad (IIBMB) with 1,15,50,000 no. of shares of MYR 10 each valuing Rs 199,57,52,186 as at the year-end 31.03.2024. Upon the shareholders of IIBMB unanimously deciding for voluntary exit of the operation in Malaysia, the Board of the IIBMB sought approval from the Bank Negara Malaysia (BNM) for voluntary winding up. The BNM in letter dated 09.02.2024 has given no objection to the winding up operation and subsequently surrender the business licence subject to submission of detailed exit plan. In terms of the said order of BNM, the IIBMB is in the process of winding up. The impact on the investment, if any, that might arise shall be considered upon final winding up.

13. Accounting Standard 28 - Impairment of Assets

The Software acquired by the Bank for core Banking Systems and other services relating to information technology departments are being capitalized under intangible assets and are amortized over 3 years.

1

The requirement to disclose valuation as per the CDS curve published by FIMMDA or a benchmark recommended by FIMMDA shall be effective once FIMMDA starts publishing the CDS curve or recommends a valuation benchmark.