IndusInd Bank Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. There has been no material change in the accounting pohcies adopted during the quarter / nine months ended December 31, 2018 as compared to those followed for the year ended March 31,2018.

2. The working results for the quarter / nme months ended December 31, 2018 have been arrived at after considering provision for standard assets, including' requirements for exposures to entities with Unhedged Foreign Currency Exposure, non-performing assets (NPAs), depreciation on investments, income-tax and other usual and necessary provisions.

3. The above financial results for the quarter / nine months ended December 31, 2018 were reviewed by the Audit Committee and subsequently have been taken on record and approved by the Board of Directors at its meeting held on January 9, 2019. These financial results were subjected to a Limited Review by the Statutory Auditors of the Bank who have issued an unmodified report thereon.

4. RBI Master Circular dated July 01, 2015, as amended, on Basel III Capital Regulations contain guidelines on certain Pillar 3 and leverage ratio disclosure requirements that are to be made along with the publication of financial results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link;

These disclosures have not been subjected to the Limited Review.

5. The Capital Adequacy Ratio is computed on the basis of RBI guidelines applicable on the relevant reporting dates and the ratio for the corresponding previous period is not adjusted to consider the impact of subsequent changes if any, in the guidelines.

6. Provisions (other than tax) and Contingencies:

Advances granted to various companies and SPVs belonging to a Group in the infrastructure sector against certain identified cash flows and pertaining to specific assets, are classified as ‘Standard’ as at December 31, 2018 in compliance with RBI Master Circular on Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to the Advances Portfolio (IRAC norms) on the basis of the conduct of the accounts till date. Since October 01, 2018, certain governance and management changes have taken place in this Group and measures to turn it around through a Resolution Plan are underway. Bank’s management is monitoring the developments and implications of the Resolution Plan. In the interim, as a prudential measure, the Bank has made a contingent provision of Rs.255 crores on these 'Standard' assets which is included under Provisions (other than tax) and Contingencies during the quarter ended December 31, 2018, in addition to an amount ofRs.275 crores made during the quarter ended September 30, 2018.

7. On October 14, 2017, the Board of Directors of the Bank and Bharat Financial Inclusion Limited (BFIL), at their respective meetings, approved a merger of BFIL with the Bank in an all-stock transaction through a Composite Scheme of Arrangement. The Competition Commission of India has approved the proposed Scheme and RBI has conveyed their 'No Objection' for the Scheme and an approval for incorporating a Wholly-Owned-Subsidiary to act as Business Correspondent of the Bank. The Scheme has 'no adverse remarks' from Securities and Exchange Board of India (SEBI), National Stock Exchange of India Limited and BSE Limited. In terms of the Scheme, Indusind Financial Inclusion Limited (IFIL) has been incorporated on August 06, 2018 as a wholly owned subsidiary of the Bank. Pursuant to an order of National Company Law Tribunal (NCLT), the respective shareholders and creditors of the Bank, BFIL and IFIL have approved the Scheme. A petition has been filed with NCLT to sanction the Scheme. As such, the proposed transaction does not have any impact on the current financial results or the financial position of the Bank as at December 31, 2018.

8. During the quarter / nine months ended December 31, 2018, the Bank allotted 786361 shares and 1859376 shares respectively, pursuant to the exercise of Stock options by certain employees.

9. Previous period / year figures have been regrouped / reclassified, where necessary to conform to current period / year classification.

Romesh Sobti
Managing Director