1. The Bank has a proactive approach towards risk management; risk philosophy involves developing and maintaining a healthy portfolio within its risk appetite and regulatory framework. The Risk Management framework is specially designed to identify key risk areas, measure, monitor, and manage them efficiently in order to deliver enhanced shareholder value by achieving an appropriate trade off between risk and returns. The Bank constantly endeavors to ensure that business function partners with the Risk Management function to drive value and the capital is used most efficiently.

2. The Risk Management Architecture of the Bank comprises an independent Risk Management Organizational structure (both at the Corporate and Field level), Risk Management Policies, Risk Measurement Tools and Risk Monitoring and Management Systems. By posting Risk Officers at the field, Bank is a pioneer in inculcating a risk culture throughout the organization. Risk profiling of the Bank for various risk areas and for Regional Offices is being done on a quarterly basis.

3. The Board of Directors of the Bank is primarily responsible for laying down risk parameters and establishing an integrated risk management and control system. The Bank’s Board approves Risk Management policies and also sets out limits taking into account the risk appetite of the Bank and the skills available for managing the risks. The Board of Directors are supported by a Sub-Committee of the Board known as Supervisory Committee of the Board on Risk Management and Asset Liquidity Management (ALM), which in turn is supported by the Credit Risk Management Committee (CRMC), Asset Liability Committee (ALCO) and Operational Risk Management Committee (ORMC). These Committees are Committees of Executives headed by Chairman and Managing Director (CMD) and both Executive Directors (ED) of the Bank.