BUSINESS SEGMENTS The banks borrowers are broadly divided under following categories and subsegments for reporting

requirements, MIS, marketing and other purposes: 1) Large Borrower Segment: It will comprise of corporate and non-corporate borrowers (firms, HUF businesses, associations, trust , societies etc.), which are not covered under MSME segment. This segment will also include government companies and PSUs at State and Central levels, FIs, Mutual Funds, Insurance companies, banks etc. 2) Micro, Small and medium Enterprises Segment (MSME): a. Medium Enterprises: Engagaed in manufacture, processing or preservation of goods where investment in plant and machinery is more than Rs 5 crore but does not exceed Rs. 10 crore. Providing or rendering of services where investment in equipment is more than Rs 2 crore but does not exceed Rs 5 crore. b. Small Enterprises: Direct finance is in small enterprise will include credit to 1. Enterprise engaged in production, processing or preservation of goods and whose investment in plant and machinery is Small(Manufacturing) Micro(Manufacturing) Enterprises Enterprises Is more than Rs 25 lakh Is less than Rs 25 lakh. but does not exceed Rs 5 crore 2. Engaged in services and whose investment in plant and machinery (as specified by RBI guidelines) is: Small(Service) Micro(service) Enterprises Enterprises Is more than Rs 10 lakh Is less than Rs 10 lakh. but does not exceed Rs

2 crore As per RBI guidelines , micro and small service enterprises includes small road and transport operators, business professionals and selfemployed personnels, advances to retail traders and all other service enterprises. Indirect finance to small enterprises sector as per the RBI guidelines: 3) Retail Segment This is a residuary segment of customers which are neither classifiable under Large Borrower segment nor under MSME segment. It comprises loans to consumers or individuals of lower value as compared to other two segments. Retail segment may also be divided into two sub-segments as follows on the basis of applicability or non-applicability of the RBI lending norms of Priority sector. a. Priority Sector Retail Sub-segment: The loan limit and terms (pricing, collateral etc.) prescribed by RBI for Priority Sector Advances require to be compiled with for these loans including: Crop loans and developmental loans for agriculture activities. Loans to retail traders dealing in essential commodities, consumer cooperative stores with credit limits not exceeding Rs 20 lakhs. Education loans. Housing loans. Loans to self-help groups/NGOs. b. Other retail loans: RBI does not prescribe the loan limit and terms for these loans, including: Loans to High Net-worth Individuals Loans for automobiles or consumer durable goods. Other personal loans.

Financial Products 1) Credit Products a. Trade Finance- Domestic and International Finance. b. Short term working capital finance- Cash credit, overdraft, demand loans, bills discounting under Letter of Credit, CPs, channel financing. c. Medium term loans for business expansion, technology up gradation, repaying high cost debt, implementing early retirement scheme. d. Project finance for new infrastructure projects. e. Bridge finance. f. Off-balance sheet products: Letter of credit, guarantees, bill collection and letter of comfort g. Securitisation and Derivatives products. h. Structured products- Asset Securitisation, Corporate Debt Restructuring, Acquisition finance, IPO finance, Rehabilitation, Restructuring, Reschedulement etc. 2) Transactional Products- Bankers Acceptances, Documentary credit, Forfaiting, Cash Management and Factoring. 3) Asset Products- Home loans, auto finance, consumer durable finance, personal loans, both secured and unsecured loans, advances against shares, receivable financing against credit card purchases. 4) Other Credit Facilities- export finance, infrastructure finance, lease finance, forfaiting, bills discounting and rediscounting, finance to NBFCs, advance to priority sector and capital market exposure. Prudential Exposure Limits General: objective is to reduce credit concentration risk by maintaining a balanced and well diversified credit portfolio. The prudential exposure limits/ guidelines shall be set by Risk Management Committee (RMC) within the exposure ceilings prescribed by RBI. RBI ceiling on credit exposure to individual/ group borrowers (Master circular dated 01/07/2010)

1) Exposure ceiling limits would be 15% of the capital funds in case of single borrowers and 40% for group borrowers. The capital funds for the purpose will comprise of Tier-I and Tier-II capital as defined by RBI under the capital adequacy standards. 2) Credit exposure to single borrower maybe exceeded to 20% and 50% to group borrower, provided the additional credit exposure is on account of extension of credit to infrastructure projects as per the list of items included under infrastructure sector by RBI. 3) Banks can extend the above exposure by further 5% with the approval of the Board. 4) Oil companies which have been issued oil bonds (which do not have SLR status) by GOI may be given an exposure limit of 25% of capital funds and further 5% on Bankss discretion. Exemptions: 1) Rehabilitation of sick/weak industrial units. 2) Food credit. 3) Guarantee by the GOI. 4) Loans against own term deposits. Bank will make appropriate disclosure in the Notes on Account in annual statements. RMC would review the exposure ceilings and also the exposure to individual borrowers and groups and initiate management measures to correct imbalances. Review of individual borrowers and groups is done quarterly. For the industries under Banks caution list 50% of the various prescribed prudential exposure limits will be applicable.