For the purpose of Capital Adequacy Norms, the capital of Banks has been classified

under two categories, i.e., Tier I and Tier II.

The Tier I capital consists of the following:

Paid-up capital
Statutory and other disclosed free reserves including share premium
General Reserves Less
1. Investments in Subsidiaries
2. Intangible Assets
3. Brought forward and Current Losses

The Tier II capital consists of the following:

Undisclosed Reserves and Cumulative perpetual preference shares

Revaluation Reserves at a discount of 25%* Surplus provisions / loss reserves
subject to a maximum of 1.25% * of Weighted Risk Assets
Hybrid Debt Capital Instrument
Subordinated debt

N.B : *As prescribed by RBI from time-to-time