Public Disclosure on Liquidity Risk - For the year ended March 31, 2021

(i) Funding Concentration based on significant counterparty (both deposits and borrowings):

Sr % of Total % of Total
No. Number of Significant Counterparties Amount (Rs. crore) deposits Liabilities
1 16 42,593.36 165.07% 41.60%

(ii) Top 20 large deposits (amount in Rs. crore and % of total deposits):

Amount in Rs. Crore 4,190.78

% of total deposits 16.24%

(iii) Top 10 borrowings (amount in Rs. crore and % of total borrowings):

Amount in Rs. Crore 35,335.87

% of total borrowings 35.38%

(iv) Funding Concentration based on significant instrument/product:

Sr No. Name of the instrument/product Amount (Rs. crore) % of Total Liabilities

1 NCD 37,220.13 36.35%
2 Deposits 25,803.43 25.20%
3 Bank Borrowings 21,323.49 20.82%
4 Commercial Paper 5,851.58 5.71%
5 ECB 5,468.64 5.34%
6 Sub-debt 3,898.61 3.81%
7 CBLO 299.97 0.29%

(v) Stock Ratios:

(a) Commercial papers as a % of total public funds, total liabilities and total assets:

Particulars Weightage
CP as % of Total Public funds 5.86%
CP as % of Total Liabilities 5.71%
CP as % of Total Assets 4.23%

(b) Non-convertible debentures (original maturity of less than one year) as a % of total public funds, total
liabilities and total asset: (Not Applicable)

(c) Other short-term liabilities, if any as a % of total public funds, total liabilities and total assets:

Particulars Weightage
Other short-term liabilities as % of Total Public funds 26.60%
Other short-term liabilities as % of Total Liabilities 25.94%
Other short-term liabilities as % of Total Assets 19.20%
(vi) Institutional set-up for liquidity risk management:

The Company’s ALCO monitors asset liability mismatches to ensure that there are no imbalances or excessive
concentrations on either side of the Balance Sheet.

The Company maintains a judicious mix of borrowings from banks, money markets, foreign market, public
deposits and other deposits and continues to diversify its sources of borrowings with an emphasis on longer
tenor borrowings. This strategy of balancing varied sources of funds and long tenor borrowings along with
liquidity buffer framework has helped the Company maintain a healthy asset liability position and interest rate
during the financial year 2020-21 (FY2021) - the weighted average cost of borrowing was 7.87 % versus 8.40 %
despite highly uncertain market conditions. The overall borrowings including debt securities, deposits and
subordinated debts stood at ₹ 99,865.84 crore as of 31 March 2021. As part of strategy to granularise its overall
borrowings, the Company has increased contribution of public and other deposits to overall borrowings from
21% to 26% in FY2021.

The Company continuously monitors liquidity in the market; and as a part of its ALM strategy, the Company
maintains a liquidity buffer managed by an active investment desk to reduce this risk. In a normal economic
scenario liquidity buffer of 5% to 8% is maintained by the Company. During the year, amindst pandemic, the
Company maintained significantly higher amount of liquidity buffer to safeguard itself against any significant
liquidity risk. The average liquidity buffer for FY 2021 was ₹ 15,144.04 crore. The Company maintained a liquidity
buffer of ₹ 12,168.89 crore as on 31 March 2021.

RBI vide Circular No. RBI/2019-20/88 DOR.NBFC (PD) CC. No.102/03.10.001/2019-20 has come up with
guidelines on liquidity risk framework for NBFCs. It covers various aspects of Liquidity risk management in NBFCs
such as granular level classification of buckets in structural liquidity statement and tolerance limits thereupon,
Liquidity risk management tools and principles. The Company has formulated a policy on Liquidity Risk
Management Framework which covers Liquidity Risk Management Policy, Strategies and Practices, LCR, stress
testing, contingency funding plan, Maturity profiling, Liquidity Risk Measurement – Stock approach, Currency
Risk, Interest Rate Risk and Liquidity Risk Monitoring Tools.

RBI has mandated minimum LCR of 50% to be maintained by December 2020, which is to be gradually increased
to 100% by December 2024. The Company has LCR of 270% as of 31 March 2021 as against the LCR of 50%
mandated by RBI.

The Company focuses on funding the balance sheet through long term liabilities against relatively shorter tenor
assets. This practice lends itself to having an inherent ALM advantage due to large EMI inflow emanating from
short tenor businesses which puts it in an advantageous position for servicing of its near term obligations.

*Notes:
1) Significant counterparty is as defined in RBI Circular RBI/2019-20/88 DOR.NBFC (PD)
CC.No.102/03.10.001/2019-20 dated November 4, 2019 on Liquidity Risk Management Framework for Non-
Banking Financial Companies and Core Investment Companies.
2) Significant instrument/product is as defined in RBI Circular RBI/2019-20/88 DOR.NBFC (PD)
CC.No.102/03.10.001/2019-20 dated November 4, 2019 on Liquidity Risk Management Framework for Non-
Banking Financial Companies and Core Investment Companies.
3) Total Liabilities has been computed as sum of all liabilities (Balance Sheet figure) less Equities and
Reserves/Surplus.
4) Public funds are as defined in Master Direction - Non-Banking Financial Company - Systemically Important Non-
Deposit taking Company and Deposit taking Company (Reserve Bank) Direction, 2016.
5) The amount stated in this disclosure is based on the audited financial statements for the year ended March 31,
2020.