The entire functions of Dhanlaxmi bank can be categorized in to 16 Business groups Below are the 16 Business Groups: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

11. 12. 13. 14. 15. 16. Credit & Operations Chief Financial Officer Wholesale Banking Human Resources Inspection and Vigilance Company Secretary and Secretary to Board Planning and Development Policy & Research Branch Banking Alternate Channels Trade and Advances Integrated Risk Management Marketing and Corporate Communication International Banking Group Information Technology and Projects Investment and Advisory Services

The details with respect to the key functions in the group and the reporting structure are mentioned subsequently. CREDIT & OPERATIONS A] CREDIT FUNCTION This function will comprise of the activities mentioned below. The heads of each function will report to the Group Head. o o o o Credit Sanction Credit Monitoring & Review (CMRD) Legal Recovery

Credit Sanction Department: The department of credit sanction will be responsible for Credit Appraisal and Approval. The credit sanction department will be divided on the segments: Corporate Credit SME Credit Retail Credit Micro and Agri Credit 1

Credit Monitoring and Review Department (CMRD): The function is divided into 3 segments: a. b. c. Credit Review Credit Monitoring Documentation

Credit Review: This team will be responsible for Review / Renewal of the Credit Limits falling under the delegated powers of the C.C.C / Board. Credit Monitoring: This team will be responsible for the daily Credit Monitoring and will analyse the credit history of the clientele, in order to detect any irregularities or suspicious dealings or change in credit history. Documentation: This team will be responsible for all documentation like the loan agreement, security documents etc. at the Z.O. Micro & Agri Lending: This team will be responsible for the Micro and Agri finance lending and related activities of implementation across all regions. Legal: The team will be responsible for all aspects related to the legal framework. Recovery: The team will be responsible for recovery of impaired assets of the bank.

B] OPERATIONS FUNCTI N: O This function comprises of the following: Central Processing Center (DCS) Regional Processing Centers (RPC) Trade Finance Cash Management Services 2

Branch Operations Credit Card Operations Projects

Each area of work will be further sub-divided basis on the process handled. The details are as mentioned under: 1. Central Processing Center (DCS):

It will be responsible for: a) Form Processing:

All account setup (includes Assets and Liabilities) and modification required will be processed by the Central Processing team. It will also cover the documents related to CMS. b) Electronic Transaction Processing:

Activities as mentioned below will be handled at the DCS o o o o o o c) Card Service Request Processing ECS RTGS/ NEFT Internet Banking Processing ATM Reconciliation Mailing and Logistics:

The process for mailing and handling logistics related to the ATM card, pin mailers, cheque books etc will be managed by this team. d) Service Desk:

Processing queries from various branches will be resolved post escalation to the DCS. 2. Regional Processing Centers(RPC):

It will be responsible for a) b) c) d) e) Inward and Outward Clearance Document Scrutiny ATM Cash Envelope Processing Salary Processing for Corporate tie-ups Processing queries related to the branch / regional level. 3

3.

Trade Finance:

All activities related to the processing/ reviewing/ modification/ verification/ any such related activity of trade finance department will be managed by the trade finance desk which will based at select Regional Processing Centers. 4. Cash Management Services:

Activities of payment and collection of cash, credit to respective accounts thereon and such related cash management activities will be handled by the central and regional processing centers depending on the area of work defined. 5. Branch Operations Processes:

This team will work towards meeting the challenges of increased customer expectations and operational efficiency. 6. Credit Card Operations:

All activities related to the credit card operations will be handled by an outsourced partner. The process functioning will be monitored and managed by the department head who in turn will report to function head. 7. Projects:

This team will be responsible for projects related to automation of all existing manual processes. CHIEF FINANCIAL OFFICER The group will be responsible for the following: a) b) c) d) e) f) g) h) i) Treasury Mid Office Treasury & Back office Operations Finance and Accounts Investor Relations Finance Institutional Group RBI Interface Infrastructure Management Administration Value Management Group

The function will have respective teams located at the C.O. / Z.O. / R.O. / Mumbai Office. A] TREASURY:

This team will be based out of the Mumbai Office. The team will be responsible for day to day cash flows of the bank. Interest Rates will also be a key responsibility of Treasury. The portfolio will include: 1. 2. 3. 4. Cash Management Asset Liability Management Investments & Trading Foreign Exchange & Risk Management

The operations related to the treasury function enable the bank to use techniques and information to minimize financial costs and maximize returns on cash surpluses. Cash Management:

It involves managing the short term financial flow, liquidity, the surpluses and deficits of the domestic market. Asset Liability Management (ALM):

The ALM function comprises management of liquidity, maturity profiles of assets and liabilities and interest rate risks. Investments & Trading:

The bank through a wide spectrum of investment products that substitute the traditional credit avenues of a corporate like commercial papers, preference shares, non-convertible debentures, securitized paper and fixed and floating rate products ensures: a) Safety of the funds invested b) Optimization of profits from investment operations Foreign Exchange & Risk Management:

The purpose of Foreign Exchange Markets is to facilitate trade and investments with multifarious currencies ruling the international markets. B] MID OFFICE T R E A S U R Y : The team will be responsible for:

a) Treasury Middle Office (TMO) and b) Treasury Back-office Operations (TBO) The TMO team will provide information on risk, pricing and valuation, performance measurement and compliance support, setting counterparty limits etc. 5

 The TBO will include Forex Operations, FCNR Maintenance and Foreign Currency Cheque Collection, settlement and accounting. C] FINANC AND ACCOUNTS E The team will be responsible for handling all activities related to the financial statements, annual budgets, forecasts and allocation of resources / funds. D] INVESTOR RELATIONS: The team will be responsible for managing relations with wholesale investors, FIIs, MFs etc. E] FINANCIAL INSTIT UTIONAL GROUP (FIG): All aspects related to the large financial inflows, tracking the best practices in the industry and laying down a roadmap that focus on the development aspect of the bank will be handled by this team. F] R BI IN TE R FA C E: All activities that require the support and guidance of the RBI in terms of approvals, modifications, review and compliance will be handled directly by the CFO. G] INFRA STRUCTURE MANAGEMENT: This team will be based out of the Mumbai Office with select members deputed from various branches / other departments to assist in the on- going expansion plans. H] ADMINISTRATION: The team will be responsible for all activities as mentioned below: Facility management Safety and Security Systems Business Communication and Correspondence management (Business Cards, Courier, Telephone etc) Procurement of various items of Printing, stationery, housekeeping etc Travel Desk Guest House / Hotel Tie-up Arrangement Banks Vehicle Management Company Leased Accommodation Cafeteria Management Club Memberships Elementary Logistics Management 6

Event Management Insurance of Bank Property Liaison with the Govt. / Legal Authorities / Local Corporations and related authorities for smooth flow of administrative activities

I] VALU MANAGEMEN GROUP : E T The team will be responsible for all activities related to transfer pricing, branch profitability, functional profitability etc. The teams will be responsible for mapping the performance basis the strategies devised. WHOLESALE BANKING GROUP The portfolio comprises of the following: A. B. C. D. Corporate Banking Government / PSU Banking Investment Banking Cash & Trade Finance Sales Group

A] CORPORATE BANKING : This Group is responsible for addressing the entirety of banking requirements of large corporate customers and their affiliates B] GOVERN MENT BA N K IN : G The focus is to understand the financial needs of Central and State Governments and remain committed to serving this specialized segment thereby delivering proven easy to use solutions for Government undertaking and its Agencies. C] INVESTMEN BA N K IN G : T The portfolio will include 2 segments as mentioned below: 1. 2. Debt Capital Markets Capital Markets

D] CASH & TRAD FINANC S A L : E E ES Trade Finance team will leverage its structuring capabilities and banks full product suite to provide unique and innovative solutions tailor made for clients business, meeting their needs for short to medium-term financing such as pre-export financings, receivables financings.

 HUMAN RESOURCES The team will be responsible for all activities related to Human Resource function of the Bank. The Key Areas of Work will include: Human Resource Planning and Budgeting Organizational Development Recruitment Induction & Orientation Programs Learning and Development Staff Training College Performance Management Employee Engagement Talent Management Programs Employee Relations Employee Communication Human Resource Information systems & HR Operations Compensation and Benefits Corporate Social Responsibility

INSPECTION AND VIGILANCE The portfolio will comprise of: Inspection and Audit Audit Committee Vigilance Annual Financial Inspection (AFI) Ombudsman and Anti-Money Laundering(AML) SECRETARY AND SECRETARY TO BOARD

COMPANY

The team will be based out of CO. The Company Secretary and Compliance Group is a vital link between the Bank and the Board of Directors, Shareholders, Government and Other Regulatory Agencies. PLANNING AND DEVELOPMENT GROUP

The team will be based out of C.O. It will be mainly responsible for formulating the Banks annual business plans and the strategies for achieving them. POLICY & RESEARCH GROUP

The Policy & Research unit is expected to provide a wide spectrum of knowledge-based inputs and products. Broadly there will be 3 parts to the departments scope of operations as mentioned below: A] Macro Economic Analysis B] Sectoral Analys is C] Strategy & Policy BRANCH BANKING GROUP The branches will be responsible for the following: Customer Service Customer Acquisition Branch Operations Fee Income Products and Services Retail Liabilities

ALTERNATE CHANNELS The objective and endeavor of this team is to deploy state of art technology in the area of Alternate Channels.The current portfolio of channels will comprise of segments as mentioned below. o o o o o o ATM Internet Banking Mobile Banking Self Service Terminals Customer Contact Center & Tele Banking Point of Sale (POS) Terminal

TRADE AND ADVANCES This Group is responsible for acquisition and relationship management of all customers and their affiliates in the small and medium institutional segment The portfolio includes below functions:

Core Banking Working Capital, Term Loans, Letter of Credits, Bank Guarantees etc. Investment Banking Debt Market, Capital Market, Investment Advisory Trade Finance (including Forex services) 10

 INTEGRATED RISK

MANAGEMENT GROUP

The team will be responsible for identifying, measuring and managing the inherent and perceived risk. The key areas in risk management will include: Defining the Risk appetite and Risk Philosophy of the Bank Identifying, Measuring & Managing Credit, Market and Operational Risk Implementing New Capital Adequacy Accord Framework(Basel II) Monitoring the Assets and Liabilities from liquidity and interest rate risk perspective Validation of Credit Rating - Advances and Investments Clearing the new proposals/services from operational risk perspective Driving the Internal Capital Adequacy Assessment Process Risk Aggregation and Capital Allocation Defining Risk Appetite and Risk Philosophy The objective of risk management is not to eliminate risk or prohibit risky activities but to ensure that risks are taken within the acceptable levels after appropriate mitigation techniques. The quality of risk function is primarily governed by size and quality of balance sheet, complexity of functions, technical / professional manpower and the status of MIS at the bank. MARKETING & CORPORATE COMMUNICATION GROUP

The team will be responsible for a) b) Marketing Corporate Communication

INTERNATIONAL BANKING GROUP The group will comprise of the following functions: a) c) NRI Business b) Foreign Offices Joint Ventures and Offshore Subsidiar ies AND PROJECTS GROUP

INFORMATION TECHNOLOGY

With differentiation of products and services and emergence of new delivery channels, the Core Banking Business and Technology have converged for better deliverables.

11

 INVESTMENT

AND ADVISORY SERVICES

The group will have the following verticals: a) b) c) d) e) Insurance Services Online Broking Mutual Fund Foreign Traveller Cheque and Currency Selling Gold Commodity

12