The Bank computes capital adequacy ratio as per New Capital Adequacy Framework Basel II and operating guidelines for Payments Banks (issued by RBI on October 06, 2016).

The Capital adequacy ratio (CRAR) of the Bank is calculated as per the standardized approach for Credit Risk. As per RBI directions dated November 08, 2017 DBR. NBD. No.4503/16.13.2018/2017-18, RBI for the time being has advised that no separate capital charge is prescribed for market risk and operational risk for Payments Banks.Capital Adequacy Ratio of the Bank at March 31, 2021 is 66.50% against the regulatory requirement of 15.00% prescribed by RBI. Capital conservation buffer & Counter-cyclical capital buffer is not applicable on Payments Banks as per operating guidelines issued on Payments Banks by RBI.

The following table sets forth, for the period indicated, computation of capital adequacy as per Basel II framework.

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215 - 165