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Auditor Report of IDBI Bank Ltd.

Mar 31, 2023

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements of IDBI Bank Limited (âthe Bankâ), which comprise the Balance Sheet as at March 31, 2023, the Profit and Loss Account and the Cash Flow Statement for the year then ended March 31 2023, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the Standalone Financial Statements)

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Banking Regulation Act, 1949, as well as the Companies Act, 2013 (âthe Actâ) and circulars and guidelines issued by the Reserve Bank of India, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, read with rules made thereunder, of the state of affairs of the Bank as at March 31,2023 and its profit and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (âSAsâ) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note 18(C)(V) of the accompanying Statement of Standalone Financial Statements, regarding the impact of COVID-19 pandemic on the Bank''s operations and financial position, which will depend on various uncertain aspects including actions taken to mitigate the same and other regulatory measures.

Our Opinion is not modified in respect of the above matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report. For each matter below, our description of how our audit addressed the matter is provided in that context:

Key Audit Matters	Auditorâs Approach
Recognition and Measurement of Deferred Tax Asset
The Bank has recognised a net deferred tax asset of INR 11,520.98 Crores as on March 31, 2023, after net reversal of INR 1,797.49 Crores during the year. The recognition of deferred tax involves judgement regarding the likelihood of realisation of these assets in particular whether there will be sufficient taxable profits in future periods that will support the recognition of these assets. Given the degree of judgement involved in considering these deferred tax assets as recoverable or otherwise, we consider this to be a key audit matter.	Our audit procedures involved gaining an understanding of the applicable tax laws and relevant regulations applicable to the Bank. Our audit procedures included: â¢ Evaluation of policies used for recognition and measurement of deferred tax assets in accordance with AS 22 Accounting for Taxes on Income; â¢ Assessed the probability of the availability of profits based on assumptions and other parameters used by the Management against which the Bank will be able to use this deferred tax asset in the future with reference to forecast as noted by the Audit Committee of the Board of Directors. â¢ Assessed the method for determining the Deferred Tax Asset with reference to applicable tax rates and tested the arithmetical accuracy.
Income Recognition and Asset Classification of Advances (IRAC) and Provisioning as per regulatory norms
Advances constitute significant portion of the Bank''s total assets. They are, inter-alia, governed by income recognition, asset classification and provisioning (IRAC) norms and other circulars and directives issued by the RBI from time to time which provides guidelines related to classification of Advances into performing and non- performing Advances (NPA)	Our audit approach included testing the design, operating effectiveness of internal controls and substantive audit procedures in respect of income recognition, asset classification and provisioning pertaining to advances and investments. In particular: â¢ Considering testing of the exception reports generated from the application systems where the advances have been recorded.

The Bank classifies these	_â¢	Considering the
Advances based on IRAC		accounts reported by
norms as per its accounting		the Bank and other
policy schedule no : 17		banks as Special Mention Accounts
The identification of performing		(âSMAâ) in RBI''s central
and non-performing advances		repository of information
involves establishment of proper		on large credits (CRILC)
mechanism and the Bank is		to identify stress.
required to apply significant	_â¢	Reviewing account
degree of judgement to identify		statements and other
and determine the amount of		related information of
provision required against each		the borrowers selected
non-performing asset (âNPA'')		based on quantitative
applying both quantitative		and qualitative risk
as well as qualitative factors		factors
prescribed by the regulations.	_â¢	Considering Internal Audit, Credit Audit and
Significant judgements and		Concurrent Audit as
estimates for NPA identification		per the policies and
and provisioning could give rise		procedures of the Bank.
to material misstatements on:	_â¢	We have test checked advances to examine
â¢ Completeness and		the validity of the
timing of recognition of		recorded amounts,
non-performing assets in		loan documentation,
accordance with criteria		examined the statement
as per IRAC norms;		of accounts, provision for non-performing
â¢ Measurement of		assets, and compliance
the provision for		with income recognition,
non-performing assets		asset classification and
based on loan exposure,		provisioning pertaining
ageing and classification		to advances in terms
of the loan, realizable		of applicable RBI
value of security;	_â¢	guidelines. For Non-performing
â¢ Appropriate reversal of		advances identified,
unrealized income on the		we, based on factors
NPAs.		including stressed sectors and account
The Bank accounts for all the		materiality, tested on a
transactions related to Advances		sample basis the asset
in its Core Banking Solution		classification dates,
(CBS). NPA classification and		reversal of unrealized
calculation of provision is done		interest, value of
through another IT System viz.		available security and
IRAC Application Software.		provisioning as per IRAC
The carrying value of these		norms. We recomputed
advances (net of provisions) may be materially misstated if, either		the provision for NPA after considering
individually or in aggregate, the IRAC norms are not properly		the key input factors and compared our measurement outcome
o o Â§ CD Q		to that prepared by
Considering the materiality		management
involved, nature of the	_â¢	In addition, we have also
transactions, regulatory		carried out substantive
requirements, existing business		procedures including

environment, estimation/		visits to branches/
judgement involved in valuation		offices and examination
of securities, we have determined		of documentation
this as a Key Audit Matter.		and other records as well as reports of independent valuers on securities to advances.
	â¢	In respect of other Branches, our audit procedures included review of sample advances based on scanned records/ reports/ documents/ certificates made available to us by the Bank through digital medium, emails and remote access to CBS and other relevant application software over secure network of the Bank.
Information Technology (IT)	Systems and controls over
financial reporting
The Bank''s key financial	As	a part of our audit
accounting and reporting	procedures for review of the
processes are highly dependent	Bank''s IT systems and related
on Core Banking and Treasury	controls for financial reporting:
Solutions and other supporting software and hardware controls such that there exists a risk that gaps in the IT control environment could result in the financial accounting and reporting records being materially misstated.	â¢	We have planned, designed and carried out the audit procedures and sample checks, taking into consideration the IT systems of the Bank. We obtained an understanding of Bank''s
The Bank uses several systems		IT environment including
for its overall financial reporting		integration of various
and there is a large volume of		systems to evaluate their
transactions being recorded		adequacy.
at multiple locations daily. In addition, there are increasing challenges to protect the integrity of the Bank''s systems and data since cyber security has become a more significant risk in recent periods.	â¢	We tested IT general controls (logical access, changes management and aspects of IT operational controls). This included testing that requests for access to
Due to the pervasive nature and		systems were reviewed
complexity of the IT environment		and authorised. We
as well as its importance in		inspected requests of
relation to accurate and timely		changes to systems
financial reporting, we have		for approval and
identified this area as a Key Audit Matter.		authorisation.

â¢	Considering reports on IS audit conducted by Internal audit department and External IT System audit report for IRAC as well as the audit report of Internal Financial Control over Financial Reporting conducted by an independent firm of Chartered Accountants.
â¢	In addition to the above, we tested the design and operating effectiveness of certain automated controls that were considered as key internal controls over financial reporting. Where deficiencies were identified, we sought explanations regarding compensating controls or performed alternate audit procedures.

Information Other Than Standalone Financial Statements and Auditorsâ Report Thereon

The Bank''s Board of Directors is responsible for the preparation of other information. The Other Information comprises the information included in the Management Discussion and Analysis, Director''s Report including Annexures to Director''s Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholders information (collectively called as âOther Informationâ) but does not include the Standalone Financial Statements and our auditor''s report thereon. The Other information as above is expected to be made available to us after the date of this Auditors'' report.

Our opinion on the Standalone Financial Statements does not cover the Other Information and we do not express any form of assurance/ conclusion on the other information.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the Other Information identified above when it becomes available and, in doing so, consider whether the Other Information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

and that give a true and fair view of the financial position, financial performance and cashflows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBIâ) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, Management is responsible for assessing the Bank''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

The Bank''s Management is also responsible for overseeing the Bank''s financial reporting process.

Auditorsâ Responsibilities for the audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

â¢ Identify and assess the risks of misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

â¢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies

Act, 2013, we are also responsible for expressing our opinion on whether the Bank has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.

â¢ Conclude on the appropriateness of Bank''s Management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

â¢ Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

We did not audit the financial statements of the foreign branch in Dubai included in the Standalone Financial Statements of the Bank whose financial statements reflect total assets of INR 99.68 Crores as at March 31, 2023 and total revenue of INR 105.47 Crores for the year ended on that date. This branch has been audited by a local branch auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this branch, is based solely on the report of such branch auditor.

Our opinion is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with the provision of Section 29 of the Banking Regulation Act, 1949 read with Section 133 of the Act and Rules made thereunder.

2. As required by sub-section (3) of section 30 of the Banking Regulation Act, 1949, we report that:

a. We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to our notice during the course of our audit, have been within the powers of the Bank.

c. The financial accounting systems of the Bank are centralized and therefore, accounting returns for the purpose of preparing financial statements are not required to be submitted by the branches. Our audit has been carried out centrally as the necessary records and data required for the purposes of our audit are centrally made available. Further, during the course of our audit, we have visited 36 domestic branches and a Gift City IBU, Gandhinagar branch (Overseas) which, in aggregate, comprise of 44.22% of the gross advances of the Bank, to examine the records maintained at such branches for the purpose of our audit, in compliance with the extant RBI Circular.

3. As required by section 143(3) of the Act, based on our audit we report that:

a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books;

c. the report on the accounts of the Dubai branch of the Bank audited by other auditor has been forwarded to us and the same has been appropriately dealt with;

d. the Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

e. in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act and relevant Rules made thereunder, to the extent they are not inconsistent with the accounting policies prescribed by RBI;

f. on the basis of written representation received from the directors as on March 31, 2023 and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2023 from being appointed as director in terms of Section 164 (2) of the Companies Act, 2013;

g. With respect to the adequacy of the internal financial controls with reference to Standalone Financial Statements of the Bank and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ;

h. In our opinion, the entity being a Banking company, the remuneration to its directors during the year ended March 31,2023 has been paid/ provided by the Bank in accordance with the provisions of section 35B of the Banking Regulation Act, 1949, and;

i. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us;

i. The Bank has disclosed the impact of

pending litigations on its financial position in its Standalone Financial Statements. Refer Schedule 18(B)(12)(C) to the Standalone

Financial Statements.

ii. The Bank has made provision, as required,

under the applicable law or accounting

standards, for material foreseeable losses, if any, on long term contracts including derivative contracts. Refer Schedule 18(B)(12)(B) to the Standalone Financial Statements.

iii. There has been no delay in transferring

amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank.

iv.

a. The Management has represented that, to the best of its knowledge and belief, as disclosed in the note 18(C)(VII) to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the bank to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Bank (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

b. The Management has represented, that, to the best of its knowledge and belief, as disclosed in the note 18(C)(VM) to the accounts, no funds have been received by the Bank from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the bank shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

c. Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Bank with effect from April 1, 2023 and accordingly, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.

vi. As stated in Note 18(B)(7)(B) to the

standalone financial statements, the Board of Directors of the Bank have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.

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For G D Apte & Co

-HrrTtSirtR/Chartered Accountants Ttrf TTsflmr W1T/FRN-100515W

Â¦1oT iTÂ©liT

Saurabh Peshwe

Â¦yistek/Partner

(TT.TT. 121546)/M.No. 121546

UDIN: 23121546BGWJZB5346

Mar 31, 2022

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements of IDBI Bank Limited (âthe Bankâ), which comprise the Balance Sheet as at March 31, 2022, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Banking Regulation Act, 1949, as well as the Companies Act, 2013 (âthe Actâ) and circulars and guidelines issued by the Reserve Bank of India, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, read with rules made thereunder, of the state of affairs of the Bank as at March 31,2022 and its profit and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (âSAsâ) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

Our Opinion is not modified in respect of the above matter.

Key Audit Matters

Key Audit Matters	Auditorâs Approach
Recognition and Measurement of Deferred Tax Asset
The Bank has recognised a	Our audit procedures involved
net deferred tax asset of INR	gaining an understanding of the
13,318.47 Crores as on March	applicable tax laws and relevant
31, 2022, after net reversal of	regulations applicable to the
INR 1,122.44 Crores during the	Bank. Our audit procedures
year.	included:
The recognition of deferred tax	â¢ Evaluation of policies
involves judgement regarding	used for recognition
the likelihood of realisation	and measurement of
of these assets in particular	deferred tax assets in
whether there will be sufficient	accordance with AS 22
taxable profits in future periods	Accounting for Taxes on
that will support the recognition	Income;
of these assets. Given the	â¢ Assessed the probability
degree of judgement involved	of the availability of profits based on
in considering these deferred	of the availability of profits based on
tax assets as recoverable or	assumptions and other
otherwise, we consider this to	parameters used by the
be a key audit matter.	Management against which the Bank will be able to use this deferred tax asset in the future with reference to forecast as noted by the Audit Committee of the Board of Directors. â¢ Assessed the method for determining the Deferred Tax Asset with reference to applicable tax rates and tested the arithmetical accuracy.
Income Recognition and Asset Classification of Advances
(IRAC) and Provisioning as per regulatory norms
Advances constitute significant	Our audit approach included
portion of the Bank''s total	testing the design, operating
assets. They are, inter-	effectiveness of internal
alia, governed by income	controls and substantive audit
recognition, asset classification	procedures in respect of income
and provisioning (IRAC)	recognition, asset classification
norms and other circulars	and provisioning pertaining to
and directives issued by the	advances and investments. In
RBI from time to time which provides guidelines related to	particular:
classification of Advances into	â¢ Considering testing of
performing and non- performing	the exception reports
Advances (NPA)	generated from the application systems where the advances have been recorded.

The Bank classifies these	_â¢	Considering the accounts
Advances based on IRAC		reported by the Bank and
norms as per its accounting		other banks as Special
policy schedule no : 17		Mention Accounts
		(âSMAâ) in RBI''s central
The identification of performing and non-performing advances involves establishment of proper mechanism and the Bank is		repository of information on large credits (CRILC) to identify stress.
required to apply significant	_â¢	Reviewing account
degree of judgement to identify		statements and other
and determine the amount of		related information of
provision required against each		the borrowers selected
non-performing asset (âNPA'')		based on quantitative
applying both quantitative		and qualitative risk
as well as qualitative factors		factors
prescribed by the regulations.	_â¢	Considering Internal
Significant judgements and		Audit, Credit Audit and
estimates for NPA identification		Concurrent Audit as
and provisioning could give rise		per the policies and
to material misstatements on:		procedures of the Bank.
â¢ Completeness and timing	_â¢	We have test checked
of recognition of non-		advances to examine
performing assets in		the validity of the
accordance with criteria		recorded amounts, loan documentation,
as per IRAC norms;		examined the statement
â¢ Measurement of the		of accounts, provision
provision for non-		for non-performing
performing assets based		assets, and compliance
on loan exposure, ageing		with income recognition,
and classification of the		asset classification and
loan, realizable value of		provisioning pertaining to advances in terms of
security;		applicable RBI guidelines.
â¢ Appropriate reversal of
unrealized income on the NPAs.	_â¢	For Non- performing advances identified, we,
The Bank accounts for all the		based on factors including
transactions related to Advances		stressed sectors and account
in its Core Banking Solution		materiality, tested on a sample
(CBS). NPA classification and		basis the asset classification
calculation of provision is done		dates, reversal of unrealized
through another IT System viz.		interest, value of available
IRAC Application Software.		security and provisioning
The carrying value of these		as per IRACP norms. We
advances (net of provisions)		recomputed the provision for
may be materially misstated		NPA after considering the key
if, either individually or in		input factors and compared
aggregate, the IRAC norms are		our measurement outcome to
not properly followed.		that prepared by management
Considering the materiality	_â¢	In addition, we have also
involved, nature of the		carried out substantive
transactions, regulatory		procedures including
requirements, existing business		visits to branches/ offices
environment, estimation/		and examination of
judgement involved in valuation		documentation and other
of securities, we have determined		records as well as reports
this as a Key Audit Matter.		of independent valuers on securities to advances.

	In respect of other Branches, our audit procedures included review of sample advances based on scanned records/ reports/ documents/ certificates made available to us by the Bank through digital medium, emails and remote access to CBS and other relevant application software over secure network of the Bank.
IT Systems and controls over financial reporting
The Bank''s key financial	As a part of our audit procedures
accounting and reporting	for review of the Bank''s IT
processes are highly dependent	systems and related controls for
on Core Banking and Treasury	financial reporting:
Solutions and other supporting software and hardware controls	â¢ We have planned,
such that there exists a risk	designed and carried
that gaps in the IT control	out the audit procedures
environment could result	and sample checks,
in the financial accounting	taking into consideration
and reporting records	the IT systems of the
being materially misstated.	Bank. We obtained an
The Bank uses several	understanding of Bank''s IT environment including
systems for its overall financial	integration of various
reporting and there is a large	systems to evaluate their
volume of transactions being	adequacy.
recorded at multiple locations daily. In addition, there are	â¢ We tested IT general
increasing challenges to protect	controls (logical access,
the integrity of the Bank''s	changes management
systems and data since cyber	and aspects of IT
security has become a more	operational controls).
significant risk in recent periods.	This included testing that
Due to the pervasive nature	requests for access to systems were reviewed
and complexity of the IT	and authorised. We
environment as well as its	inspected requests of
importance in relation to	changes to systems
accurate and timely financial	for approval and
reporting, we have identified	authorisation.
this area as a Key Audit Matter.	â¢ Considering IS audit reports conducted by Internal audit department and External IT System audit report for IRAC. Also, the audit report of Internal Financial Control over Financial Reporting conducted by an independent firm of Chartered Accountants.

	â¢	In addition to the above, we tested the design and operating effectiveness of certain automated controls that were considered
		as key internal controls over financial reporting. Where deficiencies were identified, we sought explanations regarding compensating controls or performed alternate audit procedures.

Information Other Than Standalone Financial Statements and Auditorsâ Report Thereon

The Bank''s Board of Directors is responsible for the preparation of other information. The Other Information comprises the Management Discussion and Analysis, Directors'' Report including Annexures to Directors'' Report (collectively called as âOther Informationâ) but does not include the Standalone Financial Statements and our auditor''s report thereon. The Other information as above is expected to be made available to us after the date of this Auditors'' report.

Our opinion on the Standalone Financial Statements does not cover the Other Information and we do not express any form of assurance conclusion thereon.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Bank''s Management and Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance and cashflows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBIâ) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of

the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

The Bank''s Management is also responsible for overseeing the Bank''s financial reporting process.

Auditorsâ Responsibilities for the audit of the Standalone Financial Statements

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

â¢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the Bank has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.

Other Matters

1. We did not audit the financial statements of the foreign branch in Dubai included in the Standalone Financial Statements of the Bank whose financial statements reflect total assets of INR 43.83 Crores as at March 31, 2022 and total revenue of INR 8.31 Crores for the year ended on that date. This branch has been audited by a local branch auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this branch, is based solely on the report of such branch auditor.

2. The audit of Standalone Financial Statements for the year ended March 31, 2021 were carried out and reported by predecessor statutory auditors who have expressed unmodified opinion vide their report dated May 03, 2021, on those Financial Statements. Accordingly, we, do not express any opinion on the figures reported in the Financial Statements for the year ended March 31,2021.

Our opinion is not modified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

2. As required by sub-section (3) of section 30 of the Banking

Regulation Act, 1949, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c. The financial accounting systems of the Bank are centralized and therefore, accounting returns for the purpose of preparing financial statements are not required to be submitted by the branches. Our audit has been carried out centrally as all the necessary records and data required for the purposes of our audit are centrally available. Further, during the course of our audit, we have visited 24 domestic branches which comprise of 38.58% of the gross advances of the Bank, to examine the records maintained at such branches for the purpose of our audit, in compliance with the extant RBI Circular.

3. Further, as required by section 143(3) of the Act, we report that:

a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books;

c. the report on the accounts of the Dubai branch of the Bank audited by other auditor has been forwarded to us and the same has been appropriately dealt with;

d. The Balance Sheet, the Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

e. in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act and Rules made thereunder, to the extent they are not inconsistent with the accounting policies prescribed by RBI;

f. On the basis of written representation received from the directors as on March 31, 2022 and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2022 from being appointed as director in terms of Section 164 (2) of the Companies Act, 2013;

h. In our opinion, the entity being a Banking company, the remuneration to its directors during the year ended March 31, 2022 has been paid/ provided by the Bank in accordance with the provisions of section 35B of the Banking Regulation Act, 1949, and;

i. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us;

i. The Bank has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements. Refer Schedule 18(B)(12) (C) to the Standalone Financial Statements.

ii. The Bank has made provision, as required, under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts. Refer Schedule 18(B)(12)(B) to the Standalone Financial Statements.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank.

iv.

a. The Management has represented that, to the best of its knowledge and belief, as disclosed in the note 18(C)(VII) to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the bank to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

b. The Management has represented, that, to the best of its knowledge and belief, as disclosed in the note 18(C)(VII) to the accounts, no funds have been received by the Bank from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the bank shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

C. Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11 (e), as provided under (a) and (b) above,contain any material misstatement.

Report on the Audit of the Standalone Financial Statements Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Banking Regulation Act, 1949, as well as the Companies Act, 2013 (âthe Actâ) and circulars and guidelines issued by the Reserve Bank of India, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, read with rules made thereunder, of the state of affairs of the Bank as at March 31,2022 and its profit and its cash flows for the year ended on that date.

Basis for Opinion

Emphasis of Matter

Our Opinion is not modified in respect of the above matter.

Key Audit Matters

v. During the financial year, the Bank has not de

clared or paid any dividend and hence, the related reporting requirements under sub-clause (f) of Rule 11 of the Companies (Audit and Auditors) Rules, 2014 is not applicable.

cptl pfisl cfT.

For G D Apte & Co

mnot ulfclMiU / Chartered Accountants rsiN.mrV Firm Reg.No.100515W

mtjt htMlJt Saurabh Peshwe milplOK / Partner

mK^di mt./ Membership No. 121546 ^statist:/ UDIN: 22121546AIGNQD3957

Mar 31, 2021

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements of IDBI Bank Limited (âthe Bankâ), which comprise the Balance Sheet as at March 31,2021, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. Incorporated in these Standalone Financial Statements are the returns of the foreign branch at Dubai for the year ended March 31, 2021, which has been audited by a local audit firm.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Banking Regulation Act, 1949, as well as the Companies Act, 2013 (âthe Actâ) and circulars and guidelines issued by the Reserve Bank of India, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, read with rules made thereunder, of the state of affairs of the Bank as at March 31,2021, and its profit and its cash flows for the year ended on that date.

Basis for Opinion

Emphasis of Matter

We draw attention to Note 18 (A)(X)(15) which describes the business uncertainties due to the outbreak of SARS-CoV-2 virus (COVID-19). In view of these uncertainties, the impact on the Bank''s Standalone Financial Statements is significantly dependent on future developments.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key Audit Matters	Auditorâs Response
Recognition and Measurement of Deferred Tax Asset
The Bank has recognised	Our audit procedures involved
a net deferred tax asset of	gaining an understanding of
'' 14,440.91 Crores as on	the	applicable tax laws and
March 31, 2021, including net	relevant regulations applicable
reversal of '' 1,308.68 Crores	to	the Bank. We performed
during the year.	the following audit procedures
Besides objective estimation, recognition and measurement	as part of our controls testing including:
of deferred tax asset is	â¢	evaluation of the policies
based on the judgment and		used for recognition
numerous estimates regarding		and measurement of
the availability and visibility of		deferred tax assets in
profits in the future and also		accordance with AS 22
considering probable impact of		Accounting for Taxes on
Covid-19 pandemic.		Income;
The amount of deferred tax	â¢	assessed the probability
assets recognised presumes availability and forecasting		of the availability of profits based on
of profits over an extended		assumptions and other
period of time thus increasing		parameters used by the
uncertainty and the inherent		Management including
risk of inappropriate recognition of the said asset.		the probable impact of Covid-19 pandemic against which the Bank will be able to use this deferred tax asset in the future with reference to forecast as noted by the Board of Directors while adopting the Standalone Financial Statements.
	â¢	assessed the method for determining the Deferred Tax Asset with reference to applicable tax rates and tested the arithmetical accuracy.

Income Recognition and Asset Classification of Advances (IRAC) and Provisioning as per regulatory norms
Please refer to Note nos. 18(A)	Our audit approach included
(X)(1) and 18(A)(V)(2) relating	testing the design, operating
to Asset Quality in respect of	effectiveness of internal
movement of Non-Performing	controls and substantive audit
Assets (NPAs) and related	procedures in respect of income
provisions and disclosures	recognition, asset classification
with regard to Non Performing	and provisioning pertaining to
Investments (NPI) respectively	advances and investments. In
as also Note no. 18(A)(X)(15) regarding the provisions made	particular:
due to the probable impact of	â¢ we have evaluated and
Covid-19 pandemic.	understood the Bank''s internal control system in adhering to the relevant

Compliance of relevant	RBI guidelines regarding
prudential norms issued by	income recognition,
the Reserve Bank of India	asset classification and
(RBI) in respect of income	provisioning pertaining
recognition, asset classification	to advances and
and provisioning pertaining	investments;
to advances as well as those	â¢ we have tested key IT
pertaining to investments is a key audit matter due to	systems/ applications used and their design
materiality involved and the current processes at the Bank which requires manual interventions, management estimates and judgement.	and implementation as well as operational effectiveness of relevant controls, including involvement of manual process and manual controls in relation to income recognition, asset classification and provisioning pertaining to advances and investments;
	â¢ we have test checked
	advances to examine the validity of the recorded amounts, loan documentation, examined the statement of accounts, indicators of impairment, impairment provision for non-performing assets, and compliance with income recognition, asset classification and provisioning pertaining to advances in terms of applicable RBI guidelines;
	â¢ we have evaluated
	the past trends of management judgement, governance process and review controls over impairment provision calculations and discussed the provisions made with the top and senior Management of the Bank.

IT Systems and controls over financial reporting
The Bank''s key financial accounting and reporting processes are highly dependent on Core Banking and Treasury Solutions and other supporting software and	â¢ We have planned, designed and carried out the desired audit procedures and sample checks, taking into consideration the IT

hardware controls such that	systems of the Bank.
there exists a risk that gaps	The procedures
in the IT control environment	adopted by us are, in
could result in the financial	our opinion, adequate
accounting and reporting	to provide reasonable
records being materially	assurance on the
misstated. Appropriate IT	adequacy of IT controls
controls are required to ensure	in place. Towards this
that the IT applications perform	end, we obtained an
as planned and the changes	understanding of Bank''s
made are properly controlled.	IT environment.
Such controls contribute to risk	â¢ We discussed with
mitigation of erroneous output	Management regarding
data. The audit outcome is	integration of systems in
dependent on the extent of IT	the areas of treasury and
controls and systems.	IRAC to evaluate their adequacy. â¢ In addition, we have also relied on IS audit conducted by internal audit department, and also the audit of Internal Financial Control over Financial Reporting conducted by an independent firm of Chartered Accountants. â¢ We also tested key automated and manual business cycle controls and logic for system generated reports relevant to the audit; including testing of compensating controls or performed alternate procedures to assess whether there were any unaddressed IT risks that would materially impact the Standalone Financial Statements.

Placing reliance on electronic evidence and performing of audit procedures during the mandatory national lockdown due to the Covid-19 pandemic

The Bank''s procedures	We have carried out	the
of recording and storing	validation of the electronic
information necessary for	evidence provided by	the
preparation of Standalone	Management by performing the
Financial Statements and having	following procedures:
them audited is combination of electronic and manual processes. These processes were required to be audited by us remotely without visiting	â¢ Inquiring with the Management of the controls they have implemented to convert

the Bank''s premises due to the	physical documents into
mandatory national lockdown	electronic versions and
and thereafter. Consequently,	understanding them
we have placed reliance on the	â¢ Inquiring with the
completeness and accuracy	Management the method
of the data and records made	and controls used to
available to us electronically	extract information from
through e-mail. During the	its various softwares
year the Bank provided us a	including Core Banking
secure virtual private network	Solution, Treasury, IRAC,
connection through which	, fixed assets & operating
we could access the core	expenses, financial
banking solution and other	reporting and the CRAR
softwares and the electronic	computation softwares
data / information / documents	and understanding
shared on common drives.	how the Management
Had we been physically present	ensures completeness
at the Company premises, we	and accuracy
would have otherwise verified	â¢ Correlating various
the physical copies of critical	attributes of the
documents and we would have	electronic evidence
collected the audit evidence in	obtained to ensure
physical copies.	consistency and integrity. â¢ Obtaining representations from the Management wherever necessary.

Information Other Than Standalone Financial Statements and Auditorsâ Report Thereon

The Bank''s Board of Directors is responsible for the preparation of information other than the Standalone Financial Statements and Auditor''s Report thereon. The Other Information comprises the Management Discussion and Analysis, Directors'' Report including Annexures to Directors'' Report (collectively called as âOther Informationâ) but does not include the Standalone Financial Statements and our auditor''s report thereon and the Pillar III Disclosures under the New Capital Adequacy Framework (Basel III disclosures). The Other information as above is expected to be made available to us after the date of this Auditors'' report.

Our opinion on the Standalone Financial Statements does not cover the Other Information and we do not express any form of assurance conclusion thereon.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Bank''s Management and Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe

Actâ) with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance and cashflows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBIâ) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

The Bank''s Management is also responsible for overseeing the Bank''s financial reporting process.

Auditorsâ Responsibilities for the audit of the Standalone Financial Statements

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

â¢ Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

â¢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the Bank has adequate internal financial controls system in place and the operating effectiveness of such controls.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.

â¢ Conclude on the appropriateness of Management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

Other Matters

We did not audit the financial statements of the foreign branch in Dubai included in the Standalone Financial Statements of the Bank whose financial statements reflect total assets of '' 1,066.21 Crores as at March 31,2021 and total revenue of '' 74.73 Crores for the year ended on that date. This branch has been audited by a local branch auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this branch, is based solely on the report of such branch auditor.

Report on Other Legal and Regulatory Requirements

2. As required by sub-section (3) of section 30 of the Banking Regulation Act, 1949, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c. During the course of our audit we have visited 27 branches to examine the records maintained at such branches for the purpose of our audit. As mentioned in our paragraph on Key Audit Matters above, due to the local lockdowns, the remainder audit procedures were conducted remotely. The returns received from the offices and branches of the Bank as supplemented with the information furnished by the Management have been found adequate for the purpose of our audit.

3. With respect to the matter to be included in the Auditors'' Report under section 197(16) of the Act:

The Bank is a banking company as defined under Banking Regulation Act, 1949. Accordingly, the requirements prescribed under Section 1 97 of the Companies Act, 201 3 do not apply by virtue of Section 35B(2A) of the Banking Regulation Act, 1949.

4. Further, as required by section 143(3) of the Act, we report that:

a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the branches not visited by us;

c) the report on the accounts of the Dubai branch of the Bank audited by other auditor has been forwarded to us and the same has been appropriately dealt with;

d) the Balance Sheet, and the Profit and Loss Account, dealt with by this report are in agreement with the books of account;

e) in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act and Rules made

thereunder, to the extent they are not inconsistent with the accounting policies prescribed by RBI;

f) on the basis of written representation received from the directors as on March 31, 2021 and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2021 from being appointed as director in terms of Section 164 (2) of the Companies Act, 2013;

g) with respect to the adequacy of the internal financial controls with reference to Standalone Financial Statements of the Bank and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ;

h) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us;

i) The Bank has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements to the extent determinable/ascertainable. - Refer Schedule 18(B)(11)(C) to the Standalone Financial Statements.

ii) The Bank has made provision, as required, under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts. Refer Schedule 18(B)(11)(B) to the Standalone Financial Statements.

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank. Refer Schedule 18(C)(VII) to the Standalone Financial Statements.

For M P Chitale & Co.

CHsl otaiw / Chartered Accountants

AiTfi#WWIT/ FRN : 101851W

Ashutosh Pednekar

Â¦rniisK / Partner

(Â¥. 041037) / (Membership No. 041037)

/ UDIN: 21041037AAAACJ2843

Mar 31, 2019

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of IDBI Bank Limited (the Bank) which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss, the Statement of Cash Flows and notes to the financial statements, including the summary of significant accounting policies and other explanatory information, all together referred to as the Standalone Financial Statements in which are incorporated the returns of 21 Indian branches audited by us, 1198 Indian branches audited by other auditors, one foreign branch audited by a local auditor and 776 Indian unaudited branches. The unaudited branches account for 3.63 % of gross advances, 8.48 % of deposits, 0.88 % of interest income and 5.18 % of interest expenses. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued by the Reserve Bank of India.

In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs in case of the Balance Sheet of the Bank as at March 31, 2019 and its loss, and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Auditorâs Response

Recognition and Measurement of Deferred Tax Asset

The Bank has recognised a net deferred tax asset of Rs. 19669,48,05 (in â000) as on March 31, 2019, including net asset of Rs. 7710,87,08 (in â000) during the year.

Besides objective estimation, recognition and measurement of deferred tax asset is based on the judgment and numerous estimates regarding the availability and visibility of profits in the future.

The recent increase in the amount of deferred tax assets recognised presumes availability and forecasting of profits over an extended period of time thus increasing uncertainty and the inherent risk of inappropriate recognition of the said asset.

Our audit procedures included the risk assessment to gain an understanding of the applicable tax laws and relevant regulations applicable to the Bank. We performed the following audit procedures as part of our controls testing including:

- evaluation of the policies used for recognition and measurement of deferred tax assets in accordance with AS 22 Accounting for Taxes on Income;

- assessed the probability of the availability of profits against which the bank will be able to use this deferred tax asset in the future with reference to forecast as noted by the Board of Directors while adopting the standalone financial statements.

- assessed the method, assumptions and other parameters used by the Management in determining the Deferred Tax Asset with reference to applicable tax rates and tested the arithmetical accuracy.

Income Recognition and Asset Classification of Advances (IRAC) and Provisioning as per regulatory norms

Please refer to Note nos. 18 (A) (X) (1) and 18 (A) (V) (2) relating to Asset Quality in respect of movement of Non Performing Assets (NPAs) and related provisions and disclosures with regard to Non Performing Investments (NPI) respectively. Compliance of relevant prudential norms issued by the Reserve Bank of India (RBI) in respect of income recognition, asset classification and provisioning pertaining to advances as well as those pertaining to investments is a key audit matter due to materiality involved and the current processes at the Bank which requires manual interventions, management estimates and judgement.

Our audit approach included testing the design, operating effectiveness of internal controls and substantive audit procedures in respect of income recognition, asset classification and provisioning pertaining to advances and investments. In particular:

- we have evaluated and understood the Bankâs internal control system in adhering to the relevant RBI guidelines regarding income recognition, asset classification and provisioning pertaining to advances and investments;

- we have tested key IT systems/ applications used and their design and implementation as well as operational effectiveness of relevant controls, including involvement of manual process and manual controls in relation to income recognition, asset classification and provisioning pertaining to advances and investments;

- we test checked advances to examine the validity of the recorded amounts, loan documentation, examined the statement of accounts, indicators of impairment, impairment provision for non-performing assets, and compliance with income recognition, asset classification and provisioning pertaining to advances; and

evaluated the past trends of management judgement, governance process and review controls over impairment provision calculations and discussed the provisions made with the top and senior management of the Bank.

IT Systems and controls over financial reporting

The Bankâs key financial accounting and reporting processes are highly dependent on Core Banking and Treasury Solutions and other supporting software and hardware controls such that there exists a risk that gaps in the IT control environment could result in the financial accounting and reporting records being materially misstated. Appropriate IT controls are required to ensure that the IT applications perform as planned and the changes made are properly controlled. Such controls contribute to risk mitigation of erroneous output data. The audit outcome is dependent on the extent of IT controls and systems.

We have planned, designed and carried out the desired audit procedures and sample checks, taking into consideration the IT systems of the Bank. The procedures adopted by us are, in our opinion, adequate to provide reasonable assurance on the adequacy of IT controls in place. Towards this end, we have involved our IT Specialists to obtain an understanding of Bankâs related IT environment.

In addition, we have also relied on IS audit conducted by internal audit department and also the audit of Internal Financial Control over Financial Reporting conducted by an independent firm of Chartered Accountants.

We also tested key automated and manual business cycle controls and logic for system generated reports relevant to the audit; including testing of compensating controls or performed alternate procedures to assess whether there were any unaddressed IT risks that would materially impact the financial statements.

Information Other Than Financial Statements and Auditorsâ Report Thereon

The Bankâs Board of Directors is responsible for the preparation of information other than the Standalone Financial Statements and Auditorâs Report thereon. The Other Information comprises the Management Discussion and Analysis, Directorsâ Report including Annexures to Directorsâ Report (collectively called as âOther Informationâ) but does not include the Standalone Financial Statements and our auditorâs report thereon and the Pillar III Disclosures under the New Capital Adequacy Framework (Basel III disclosures).

Our opinion on the financial statements does not cover the Other Information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the Other Information and, in doing so, consider whether the Other Information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Bankâs Management and Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cashflows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBIâ) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Bankâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

The Bankâs Management is also responsible for overseeing the Bankâs financial reporting process.

Auditorsâ Responsibilities for the audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the bank has adequate internal financial controls system in place and the operating effectiveness of such controls.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bankâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

a) We did not audit the financial statements of 1198 Indian branches and one foreign branch included in the standalone financial statements of the Bank whose financial statements reflect total assets of Rs. 100124,67,01 (in ''000) as at 31st March 2019 and the total revenue of Rs. 8082,21,49 (in ''000) for the year ended on that date, as considered in the standalone financial statements. These branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.

b) The Standalone financial statement of the Bank for the year ended March 31, 2018 were audited by joint auditors of the Bank, one of whom is the predecessor audit firm, and have expressed an unmodified opinion dated May 25, 2018 on such financial statements.

Report on Other Legal and Regulatory Requirements

2. As required by sub-section (3) of section 30 of the Banking Regulation Act, 1949, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c. The returns received from the offices and branches of the Bank as supplemented with the information furnished by the management have been found adequate for the purpose of our audit.

3. Further, as required by section 143(3) of the Act, we report that:

a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

c) the reports on the accounts of branches of the bank audited by other auditors have been forwarded to us and the same have been appropriately dealt with;

d) the Balance Sheet, and the Statement of Profit and Loss, dealt with by this report are in agreement with the books of account;

e) in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act and Rules made thereunder, to the extent they are not inconsistent with the accounting policies prescribed by RBI;

f) On the basis of written representation received from the directors as on March 31, 2019 and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2019 from being appointed as director in terms of Section 164 (2) of the Companies Act 2013;

g) with respect to the adequacy of the internal financial controls over financial reporting of the Bank and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ;

h) in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 and Schedule V of the Companies Act, 2013 read with Section 35B (2A) of the Banking Regulation Act, 1949;

i) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us;

i) The Bank has disclosed the impact of pending litigations on its financial position in its financial statements to the extent determinable/ ascertainable. - Refer Schedule 18 (B) (10) (C) to the standalone financial statements.

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank. Refer Schedule 18 (C) (XIII) to the standalone financial statements.

Annexure A to the independent auditorâs report of even date on the financial statements of IDBI Bank Limited

Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013

We have audited the internal financial controls with reference to financial statements of IDBI Bank Limited (âthe Bankâ) as at March 31, 2019 in conjunction with our audit of the financial statements of the Bank for the year ended on that date.

Managementâs Responsibility for Internal Financial Controls

The Bankâs Management is responsible for establishing and maintaining internal financial controls based on âthe internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over financial reporting (âthe Guidance Noteâ) issued by the Institute of Chartered Accountants of India (âthe ICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Bankâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 (âthe Actâ).

Auditorsâ Responsibility

Our responsibility is to express an opinion on the Bankâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over financial reporting (âthe Guidance Noteâ) and the Standards on Auditing (âthe Standardsâ), issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls over financial reporting, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Bankâs internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A Bankâs internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Bankâs internal financial control with reference to financial statements includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Bank are being made only in accordance with authorizations of management and directors of the bank; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Bankâs assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financial statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Bank needs to adopt a proper review process for intermediary/control accounts in respect of fixed assets and also integrate the standalone systems in the areas of Treasury, Payroll, NPA provisioning and fixed assets, except for this, the Bank has in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2019, based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

Our aforesaid report under section 143(3)(i) of the Act on the adequacy and operating effectiveness of the Internal Financial Controls with reference to Financial Statements insofar as it relates to branches audited by the branch auditors is based on the report of the respective branch auditor which has been sent to us and has been properly dealt with by us in preparing this report.

For K. S. Aiyar & Co. For JLN US & Co. For M. P. Chitale & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

FRN : 100186W FRN : 101543W ICAI FRN 101851W

Santanu Ghosh Ramaprasanna Agarwal Ashutosh Pednekar

Partner (M.No. 050927) Partner (M.No. 119693) Partner (M.No. 041037)

Place: Mumbai

Date: May 30, 2019

Mar 31, 2018

The Members of IDBI Bank Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying Standalone Financial Statements of IDBI Bank Limited (âthe Bankâ), which comprise the Balance Sheet as at March 31, 2018, Profit and Loss Account and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter called as âthe standalone financial statementsâ) in which are incorporated the returns of 21 Indian branches audited by us, 1166 Indian branches audited by other auditors, one foreign branch audited by local auditor and 719 Indian unaudited branches. The unaudited branches account for 0.01 % of advances, 0.01 % of deposits, 4.92 % of interest income and 5.20 % of interest expenses The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the bank by the Reserve Bank of India.

Managementâs Responsibility for the Standalone Financial Statements

2. The Bankâs Board of Directors is responsible for the matters stated in Banking Regulation Act, 1949 and Section 134(5) of the Companies Act, 2013 with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and provisions of Section 29 of the Banking Regulation Act, 1949, and circulars and guidelines issued by the Reserve bank of India (RBI) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditorâs Responsibility

3. Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Companies Act, 2013, the Banking Regulation Act, 1949, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Companies Act, 2013 and the Rules made there under. We conducted our audit of the Bank in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Bankâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Directors of the Bank, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

6. In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone financial statements together with the notes thereon give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013 in the manner so required for Banking Companies and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Bank as at 31st March 2018;

b) in the case of the Profit and Loss Account, of the loss for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Emphasis of Matter

7. We draw attention to -

a) Schedule 18 (A)(2)(B)(i) regarding unamortized balance of Rs, 34.71 Crores on account of additional liabilities towards gratuity, deferred to the subsequent year, and

b) Schedule 18 (B) (III) regarding unamortized balance of mark to market losses on investments held in AFS and HFT Categories of Rs, 383.63 Crores, deferred to the subsequent year.

Our opinion is not qualified in respect of the above matters.

Other Matters

8. The Risk Assessment Report of the Reserve Bank of India for the financial year 2016-2017 for the Bank, has not been made available to us as the Bank informed that the report is confidential, and the matter has been referred to the Reserve Bank of India. The statement of divergence in asset classification and provisioning pertaining to loans and advances contained therein has been provided.

Our opinion is not modified in respect of the matters

mentioned in para 7 and 8 above.

Report on Other Legal and Regulatory Requirements

9. The Balance Sheet, Profit and Loss Account and the Cash Flow Statement have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 129 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

10. As required by sub section (3) of section 30 of the Banking Regulation Act, 1949, we report that

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit and have found them to be satisfactory except for the Risk Assessment Report of the Reserve Bank of India as stated in para 8 above.

b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank as supplemented with the information furnished by the management have been found adequate for the purpose of our audit.

11. As required by Section 143(3) of the Companies Act, 2013 , we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of

our audit except Risk Assessment Report of the Reserve Bank of India as specified in para 8 above.

b) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the branches not visited by us.

c) The reports on the accounts of branches of the bank audited by other auditors have been forwarded to us and the same have been appropriately dealt with.

d) The Balance Sheet, the Profit and Loss Account, and the Cash Flow Statement dealt with by this report are in agreement with the books of account.

e) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent they are not inconsistent with the accounting policies prescribed by Reserve Bank of India.

f) On the basis of written representation received from the directors as on March 31, 2018 and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2018 from being appointed as director in terms of Section 164 (2) of the Companies Act 2013.

g) With respect to the adequacy of the internal financial controls over financial reporting of the Bank and the operating effectiveness of such controls, refer to our separate Report in Annexure A.

h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i) The Bank has disclosed the impact of pending litigations on its financial position in its financial statements to the extent determinable/ascertainable. - Refer Schedule 18(A)(9) to the standalone financial statements.

ii) The Bank has made provision, as required, under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts Refer Schedule 18(A) (9)(b) to the standalone financial statements.

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank. Refer Schedule 18(C)(VI).

Annexure A to the Independent Auditorâs Report of even date on the Standalone Financial Statements of IDBI Bank Limited

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013

(Referred to in paragraph 11(g) of our Audit Report of even date)

1. We have audited the internal financial controls over financial reporting of IDBI Bank Limited (âthe Bankâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Bank for the year ended on that date.

Managementâs Responsibility for Internal Financial Controls

2. The Bankâs Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to bankâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditorsâ Responsibility

3. Our responsibility is to express an opinion on the Bank''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to audit of internal financial controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Bankâs internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial

Reporting

6. A bank''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Bank''s internal financial control over financial reporting includes those policies and procedures that (a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Bank are being made only in accordance with authorizations of management and directors of the Bank; and (c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the bank''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over

Financial Reporting

7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Bank needs to integrate the standalone systems in the areas of Treasury, Payroll, NPA provisioning and fixed assets with accounting system for better automated control, except for this, the Bank has in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Mukund M. Chitale & Co. For K. S. Aiyar & Company For J L N U S & Co

Chartered Accountants Chartered Accountants Chartered Accountants

FRN : 106655W FRN : 100186W frn : 101543W

Abhay V. Kamat Satish Kelkar Ramaprasanna Agarwal

Partner (M.No. 39585) Partner (M.No. 38934) Partner (M.No. 119693)

Place: Mumbai

Date: May 25, 2018

Mar 31, 2017

Report on the Standalone Financial Statements

1. We have audited the accompanying Standalone Financial Statements of IDBI Bank Limited (âthe Bankâ), which comprise the Balance Sheet as at March 31, 2017, Profit and Loss Account and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter called as âthe standalone financial statementsâ) in which are incorporated the returns of Dubai branch for the year ended as on that date, audited by the branch auditor of the Bank at Dubai.

2. The audit was planned and conducted so as to cover records available at various processing centres / regional offices/branches and reports generated through centralized banking applications at central office level. Incorporated in the said standalone financial statements are the returns of the Dubai branch of the Bank, audited by another auditor, whose report has been furnished to us and which was relied upon by us for our opinion on the Standalone Financial Statements of the Bank.

Managementâs Responsibility for the Standalone Financial Statements

3. The Bankâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949, and circulars and guidelines issued by the Reserve bank of India (RBI) from time to time, accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditorâs Responsibility

4. Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Bank in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Bankâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Directors of the Bank, as well as evaluating the overall presentation of the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

7. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements together with the notes thereon give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013 in the manner so required for Banking Companies and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Bank as at 31st March 2017;

b) in the case of the Profit and Loss Account, of the loss for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Emphasis of Matter

8. We draw attention to Note 18(C)(2)(I) to the Financial statements, without modifying our opinion, regarding surrender of special securities of Government of India (GoI) over a period of 11 quarters commencing from quarter ended September 30, 2016 for which formal approval from Appropriate Authorities is awaited.

Report on Other Legal and Regulatory Requirements

10. As required by sub section (3) of section 30 of the Banking Regulation Act, 1949, we report that

a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit and have found them to be satisfactory;

b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank;

c) The returns received from the offices and branch of the Bank at Dubai have been found adequate for the purpose of our audit

11. As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books.

c) The key operations of the Bank are completely automated and key applications are integrated with the core banking system, the audit is carried out centrally as all the necessary records and data required for the purpose of the audit are centrally available therein. Therefore accounting returns are not required to be submitted by the branches in India and the report on the accounts of Dubai branch audited by the branch auditor u/s 143(8) of the Companies Act 2013 have been sent to us and have been properly dealt with by us in preparing the report.

d) The Balance Sheet, the Profit and Loss Account, and the Cash Flow Statement dealt with by this report are in agreement with the books of account.

f) On the basis of written representation received from the directors as on March 31, 2017 and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2017 from being appointed as director in terms of Section 164 (2) of the Companies Act 2013.

g) With respect to the adequacy of the internal financial controls over financial reporting of the Bank and the operating effectiveness of such controls, refer to our separate Report in Annexure A.

i) The Bank has disclosed the impact of pending litigations on its financial position in its financial statements to the extent determinable/ascertainable. - Refer Schedule 18(A)(9)(c) to the standalone financial statements.

ii) The Bank has made provision, as required, under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts Refer Schedule 18(A)(9)(b) to the standalone financial statements.

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank.

iv) The disclosure required on holdings as well as dealings in Specified Bank Notes during the period from November 08, 2016 to December 30, 2016 as envisaged in notification GSR 308(E) dated March 30, 2017 issued by the Ministry of Corporate Affairs, is not applicable to the Bank. Refer note 18(C)(2)(VII) to the standalone financial statements.

For Mukund M. Chitale & Co. For Chokshi & Chokshi LLP

Chartered Accountants Chartered Accountants

Firm Reg No: 106655W Firm Reg No: 101872W/W100045

S. S. Dikshit Nikesh K. Shah

Partner Partner

M. No 041516 M. No: 153520

Place: Mumbai

Date: May 18, 2017

Mar 31, 2015

1. We have audited the accompanying standalone financial statements of the IDBI Bank Limited (''the Bank''), which comprise the Balance Sheet as at March 31, 2015 and the Profit and Loss Account and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information (hereinafter referred to as ''the standalone financial statements'').

The audit was planned and conducted as to cover records available at various processing centres/ regional offices/ branches and reports generated through centralised banking applications at central office level and visit at 65 centres/ offices/ branches of the Bank, covering 73% of Advances and 73% of Deposits of the Bank. Incorporated in the said standalone financial statements are the returns of the Dubai branch of the Bank, audited by another auditor.

Management''s Responsibility for the Financial Statements

2. The Bank''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949, accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

3. Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Bank including its branches and central processing unit/ regional processing units in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Bank''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Bank has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on standalone financial statements. Opinion

5. In our opinion and to the best of our information and according to the explanations given, the said financial statements together with notes thereon give full information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013 in the manner so required for banking companies and give true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Bank as at March 31,2015;

(b) in case of the Profit and Loss Account, of the profit of the Bank for the year ended on that date;

(c) in the case of the Cash Flow Statement, of the cash flows of the Bank for the year ended on that date.

Others Matter

6. We did not audit the financial statement of the Dubai branch of the Bank, whose financial statement as at March 31,2015 reflects total assets of Rs. 257,284,839 thousand, total revenues of Rs. 11,054,928 thousand and cash out flows of Rs. 25,045,251 thousand for the year then ended. These financial statements have been audited by another auditor, duly qualified to act as an auditor in the country of incorporation of the said branch, whose report has been furnished to us and which was relied upon by us for our opinion on the financial statements of the Bank. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

7. The Balance Sheet, Profit and Loss Account and the Cash Flow Statement have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 133 of the Companies Act, 2013.

8. The transactions of the Bank, which have come to our notice have been within the powers of the Bank.

9. The key operations of the Bank are completely automated and key applications are integrated with the core banking system, the audit is carried out centrally as all the necessary records and data required for the purpose of the audit are centrally available therein.

10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with accounting standards referred to in Section 133 of the Companies Act, 2013 to the extent they are not inconsistent with the accounting policies prescribed by Reserve Bank of India.

11. As required by Section 143(3) of the Act, we report that:

(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) in our opinion proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those book; the financial accounting systems of the Bank are centralised and therefore, accounting returns for the purpose of preparing financial statements are not required to be submitted by the branches;

(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) provision of Section 164 (2) of the Companies Act, 2013 are not applicable in terms of Notification No.G.S.R.829(E) dated October 21,2003 issued by Department of Company Affairs, Government of India;

(f) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 in our opinion and to the best of our information and according to the explanations given to us;

i. The Bank has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note 18(9)(c) to the standalone financial statements;

ii. The Bank has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 18(9)(b) to the standalone financial statements;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank.

For Khimji Kunverji & Co For G D Apte & Co

Chartered Accountants Chartered Accountants

FRN: 105146W FRN: 100515W

Gautam V Shah Saurabh S Peshwe

Partner (F-117348) Partner (F-121546)

Mumbai

May 26, 2015

Mar 31, 2014

1. We have audited the accompanying financial statements of the IDBI Bank Limited (''the Bank''), which comprise the Balance Sheet as at March 31, 2014 and the Profit and Loss Account and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

The audit was planned and conducted as to cover records available at various processing centers/ regional offices/ branches and reports generated through centralized banking applications at central office level and visit at 69 centers/offices/branches of the Bank, covering 77% of Advances and 78% of Deposits of the Bank. Incorporated in the said financial statements are the returns of the Dubai branch of the Bank, audited by another auditor.

Management''s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements that gives true and fair view of financial position, financial performance and cash flows of the bank in accordance with provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 211 of the Companies Act, 1956 and circulars and guidelines issued by Reserve Bank of India from time to time. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of the Bank including its branches and central processing unit/regional processing units in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India.

Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6 In our opinion and to the best of our information and according to the explanations given, the said financials statements together with notes thereon give full information required by the Banking Regulation Act, 1949 as well as the Companies Act, 1956, in the manner so required for banking companies and give true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Bank as at March 31, 2014;

(b) in case of the Profit and Loss Account, of the profit of the Bank for the year ended on that date;

(c) in the case of the Cash Flow Statement, of the cash flows of the Bank for the year ended on that date.

Emphasis of Matter

7 We draw attention to Note.7(b) to the financial statements which describes creation of deferred tax liability on Special Reserve under Section 36(1)(viii) of the Income Tax Act, 1961 pursuant to RBI''s Circular No. DBOD. No. BP. BC.77/ 21.04.018/2013-14 dated December 20, 2013. Our opinion is not qualified in respect of this matter.

Other Matters

8 We did not audit the financial statement of the Dubai branch of the Bank, whose financial statement as at March 31, 2014 reflects total assets of Rs. 241,007,883 thousand, total revenues of Rs. 10,500,926 thousand and cash outflows of Rs. 2,781,475 thousand for the year then ended. These financial statements have been audited by another auditor, duly qualified to act as an auditor in the country of incorporation of the said branch, whose report has been furnished to us and which was relied upon by us for our opinion on the financial statements of the Bank. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

9 The Balance Sheet and Profit and Loss Account and the Cash Flow Statement have been drawn up in accordance with the provisions of Section 29 of the banking regulation Act, 1949 read with Section 211 of the Companies Act, 1956. 10 We report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory;

(b) The transactions of the Bank, which have come to our notice have been within the powers of the Bank;

(c) The key operations of the Bank are completely automated and key applications are integrated with the core banking systems, the audit is carried out centrally as all the necessary records and data required for the purposes of our audit are centrally available therein.

11 In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with accounting standards referred to in Subsection(3C) of Section 211 of the Companies Act, 1956 (which continue to be applicable in respect of Section 133 of the Companies Act, 2013), to the extent they are not inconsistent with the accounting policies prescribed by Reserve Bank of India.

12 We further report that:

(i) the Balance Sheet, Profit and Loss Account dealt with by this report are in agreement with the books of account;

(ii) the financial accounting system of the Bank are centralised and therefore, accounting returns are not submitted by the branches;

(iii) in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books;

(iv) provision of Section 274(1)(g) of the Companies Act, 1956 are not applicable in terms of Notification No. G.S.R.829 (E) dated October 21, 2003 issued by Department of Company Affairs, Government of India.

For Khimji Kunverji & Co For G D Apte & Co

Chartered Accountants Chartered Accountants

FRN: 105146W FRN: 100515W

Gautam V Shah Saurabh S Peshwe

Partner (FÂ117348) Partner (FÂ121546)

Mumbai

April 30, 2014

Mar 31, 2013

REPORT ON THE FINANCIAL STATEMENTS

1 We have audited the accompanying financial statements of the IDBI Bank Limited (''the Bank''), which comprise the Balance Sheet as at March 31, 2013 and the Profit and Loss Account and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information,

The audit was planned and conducted as to cover records available at various processing centers/ regional offices/ branches and reports generated through centralized banking applications at central office level covering 77 % of Advances and 64 % of Deposits of the Bank and visit at 65 centers/ offices/ branches of the Bank, Incorporated in the said financial statements are the returns of the Dubai branch of the Bank, audited by another auditor,

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

2 Management is responsible for the preparation of these financial statements that gives true and fair view of financial position, financial performance and cash flows of the bank in accordance with provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 211 of the Companies Act, 1956 and circulars and guidelines issued by Reserve Bank of India from time to time, This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error,

AUDITOR''S RESPONSIBILITY

3 Our responsibility is to express an opinion on these financial statements based on our audit, We conducted our audit of the Bank including its branches and central processing unit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements,

4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements, The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error, In making those risk assessments, the auditor considers internal control relevant to the Bank''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements,

5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion,

OPINION

6 In our opinion and to the best of our information and according to the explanations given to us, the said financials statements together with notes thereon give full information required by the Banking Regulation Act, 1949 as well as the Companies Act, 1956, in the manner so required for banking companies and give true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Bank as at March 31, 2013;

(b) in case of the Profit and Loss Account, of the profit of the Bank for the year ended on that date;

(c) in the case of the Cash Flow Statement, of the cash flows of the Bank for the year ended on that date.

OTHER MATTER

We did not audit the financial statement of the Dubai branch of the Bank, whose financial statement as at March 31, 2013 reflects total assets of Rs.195,178,629 thousand, total revenues of Rs.6,055,259 thousand and cash flows of Rs.26,191,261 thousand for the year then ended. These financial statements have been audited by another auditor, duly qualified to act as an auditor in the country of incorporation of the said branch, whose report has been furnished to us and which was relied upon by us for our opinion on the financial statements of the Bank.

The financial statements of the Bank for the year ended March 31, 2012, were audited by another auditors who expressed an unmodified opinion on those statements on April 21, 2012

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

7 The Balance Sheet and Profit and Loss Account and the Cash Flow Statement have been drawn up in accordance with the provisions of Section 29 of the banking regulation Act, 1949 read with Section 211 of the Companies Act, 1956.

8 We report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory;

(b) The transactions of the Bank, which have come to our notice have been within the powers of the Bank;

(c) The key operations of the Bank are completely automated and key applications are integrated with the core banking systems, the audit is carried out centrally as all the necessary records and data required for the purposes of our audit are centrally available therein.

9 In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with accounting standards referred to in Subsection (3C) of Section 211 of the Companies Act, 1956, to the extent they are not inconsistent with the accounting policies prescribed by Reserve Bank of India

10 We further report that :

(i) the Balance Sheet, Profit and Loss Account dealt with by this report are in agreement with the books of account;

(ii) the financial accounting system of the Bank are centralised and therefore, accounting returns are not submitted by the branches ;

(iii) in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books;

(iv) provision of Section 274(1)(g) of the Companies Act, 1956 are not applicable in terms of Notification No. G.S.R.829 (E) dated October 21, 2003 issued by Department of Company Affairs, Government of India

For Khimji Kunverji & Co For G. D. Apte & Co.

Chartered Accountants Chartered Accountants

FRN: 105146W FRN: 100515W

Gautam V Shah Saurabh S Peshwe

Partner (F-117348) Partner (F-121546)

Mumbai

April 25, 2013

Mar 31, 2012

1. We have audited the attached Balance Sheet of IDBI Bank Limited (the Bank) as at March 31, 2012 and also the Profit and Loss Account and the Cash Flow Statement of the Bank annexed thereto for the year ended on that date. These financial statements are the responsibility of the Bank's management. Our responsibility is to express an opinion on these financial statements based on our audit. The audit was so planned and conducted as to cover records available at various processing centers/regional offices/ branches and reports generated through centralized banking applications at central office level covering 75 % of Advances and 58 % of Deposits of the Bank and visit at 61 centers/offices/branches of the Bank. Incorporated in the said fi nancial statements are the returns of the Dubai branch of the Bank, audited by another auditor.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. We did not audit the financial statement of the Dubai branch of the Bank, whose financial statement as at March 31, 2012 reflects total assets of Rs. 101257063 Thousand, total revenues of Rs. 2587559 Thousand and cash flows of Rs. 1324659 Thousand for the year then ended. These financial statements have been audited by another auditor, duly qualified to act as an auditor in the country of incorporation of the said branch, whose report has been furnished to us and which was relied upon by us for our opinion on the financial statements of the Bank.

4. The Balance Sheet and Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 211 of the Companies Act, 1956.

5. We report that :

(i) We have obtained all the information and explanations, which, to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

(ii) The transactions of the Bank, which have come to our notice have been within the powers of the Bank.

(iii) The returns/data generated from the offices and branches of the Bank through core banking application have been found adequate for the purposes of our audit.

6. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section 3(C) of Section 211 of the Companies Act, 1956 read with guidelines issued by the Reserve Bank of India in so far as they apply to the Bank.

7. We further report that:

(i) the Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account and the returns;

(ii) in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of these books;

(iii) the report on the financial statement of the Dubai branch audited by other auditor has been dealt with in preparing our report in the manner considered appropriate by us;

(iv) as per information and explanation given to us, the Central Government has, till date, not prescribed any cess payable under Section 441A of the Companies Act, 1956.

(v) provisions of Section 274(1)(g) of the Companies Act, 1956 are not applicable in terms of Notification No. G.S.R.829 (E) dated-October 21, 2003 issued by Department of Company Affairs, Government of India

8. In our opinion and to the best of our information and according to the explanations given to us and on consideration of report of the auditor of Dubai branch, the said financial statements read with the notes thereon give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 1956, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) in the case of the Balance Sheet, of the state of affairs of the Bank as at March 31, 2012;

(ii) in the case of the Profit and Loss Account, of the profit of the Bank for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

For S.P.Chopra & Co. For Chokshi & Chokshi

Chartered Accountants Chartered Accountants

Firm Regn. No. 000346N Firm Regn. No. 101872W

Pawan K. Gupta Nilesh R. Joshi

Partner Partner

Membership No. 92529 Membership No. 114749

Place: Mumbai

Date: April 21, 2012

Mar 31, 2011

1. We have audited the attached Balance Sheet of IDBI Bank Limited (the Bank) as at March 31, 2011 and also the Profit and Loss Account and the Cash Flow Statement of the Bank annexed thereto for the year ended on that date. These financial statements are the responsibility of the Bank's management. Our responsibility is to express an opinion on these financial statements based on our audit. Incorporated in the said financial statements are the returns of the Dubai branch of the Bank, audited by another auditor.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. We did not audit the financial statements of the Dubai branch of the Bank, whose financial statements as at March 31, 2011 reflect total assets of Rs 40815739 Thousand, total revenues ofRs 561948 Thousand and cash flows of Rs 7593870 Thousand for the year then ended. These financial statements have been audited by another auditor, duly qualified to act as auditor in the country of incorporation of the said branch, whose report has been furnished to us and which was relied upon by us for our opinion on the financial statements of the Bank.

4. The Balance Sheet and Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 211 of the Companies Act, 1956.

5. We report that:

(i) We have obtained all the information and explanations, which, to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

(ii) The transactions of the Bank, which have come to our notice have been within the powers of the Bank.

(iii) The returns/data generated from the offices and branches of the Bank through core banking application have been found adequate for the purposes of our audit.

6. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section 3(C) of Section 211 of the Companies Act, 1956 read with guidelines issued by the Reserve Bank of India in so far as they apply to the Bank.

7. We further report that:

(i) the Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account and the returns;

(ii) in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of these books;

(iii) the report on the financial statement of the Dubai branch audited by other auditor has been dealt with in preparing our report in the manner considered appropriate by us;

(iv) as per information and explanation given to us the Central Government has, till date, not prescribed any cess payable under Section 441A of the Companies Act, 1956.

(v) provisions of Section 274(1 )(g) of the Companies Act, 1956 are not applicable in terms of Notification No. C.S.R.829 (E) dated-October 21, 2003 issued by Department of Company Affairs, Government of India.

8. In our opinion and to the best of our information and according to the explanations given to us and on consideration of report of the auditor of Dubai branch, the said financial statements read with the notes thereon give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 1956, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) in the case of the Balance Sheet, of the state of affairs of the Bank as at March 31, 2011;

(ii) in the case of the Profit and Loss Account, of the profit of the Bank for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

For S.P. Chopra & Co. For Chokshi & Chokshi

Chartered Accountants Chartered Accountants

Pawan K.Gupta Niiesh R. Joshi

Partner Partner

Membership No. 92529 Membership No. 114749

Firm Regn. No.000346N Firm Regn. No.101872W

Place : Mumbai

Date : April 19,2011

Mar 31, 2010

1. We have audited the attached Balance Sheet of IDBI Bank Limited (the Bank) as at March 31, 2010 and also the Profit and Loss Account and the Cash Flow Statement of the Bank annexed thereto for the year ended on that date. These financial statements are the responsibility of the Banks management. Our responsibility is to express an opinion on these financial statements based on our audit. Incorporated in the said financial statements are the returns of the Dubai branch of the Bank, audited by another auditor.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. We did not audit the financial statement of the Dubai branch of the Bank, whose financial statement for the period ended 31st March, 2010 reflect total assets of Rs. 2915546 Thousand as at 31.03.2010, total revenues of Rs. 4329 Thousand and cash flows of Rs. 53885 Thousand for the period then ended. These financial statements have been audited by another auditor, duly qualified to act as auditor in the country of incorporation of the said branch, whose report has been furnished to us and which was relied upon by us for our opinion on the financial statements of the Bank.

4. The Balance Sheet and Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 211 of the Companies Act, 1956.

5. We report that:

(i) We have obtained all the information and explanations, which, to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

(ii) The transactions of the Bank, which have come to our notice have been within the powers of the Bank.

(iii) The returns/data generated from the offices and branches of the Bank through core banking application have been found adequate for the purposes of our audit.

6. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section 3(C) of Section 211 of the Companies Act, 1956 read with guidelines issued by the Reserve Bank of India in so far as they apply to the Bank.

7. We further report that:

(i) the Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account and the returns;

(ii) in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of these books;

(iii) the report on the financial statement of the Dubai branch audited by other auditor has been dealt with in preparing our report in the manner considered appropriate by us;

(iv) as per information and explanation given to us the Central Government has, till date, not prescribed any cess payable under Section 441A of the Companies Act, 1956.

(v) provisions of Section 274(1 )(g) of the Companies Act, 1956 are not applicable in terms of Notification No. G.S.R.829 (E) dated-October 21, 2003 issued by Department of Company Affairs, Government of India

8. In our opinion and to the best of our information and according to the explanations given to us and on consideration of report of the Dubai auditor, the said financial statements read with the notes thereon give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 1956, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) in the case of the Balance Sheet, of the state of affairs of the Bank as at March 31,2010;

(ii) in the case of the Profit and Loss Account, of the profit of the Bank for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

APPENDICES Appendix I: Auditors Report to the Members of IPB1 Capital Market Services Limited

1. We have audited the attached Balance Sheet of IDBI Capital Market Services Limited as at March 31, 2010 and also the related Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 (as amended) (the Order) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 (the Act), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

e. In terms of Government of India, Department of Corporate Affairs Notification No.GSR 829(E) dated 21st October 2003, Government companies are exempt from the applicability of provisions of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and other notes thereon give the information required by the Companies Act 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2010;

ii. in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

iii. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Annexure to the Auditors Report on IDBI Capital Market Services Limited (Referred to in paragraph 3 of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information.

(b) Fixed assets have been physically verified by the management, during the year and no material discrepancies were identified on such verification.

(c) The Company has not disposed off any substantial part of the fixed assets during the year.

(ii) As the Company does not have inventory, the Clauses (ii) (a) to (ii)(c) of paragraph 4 of the Order are not applicable to the Company.

(iii) (a) As informed, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, sub-clause (b), (c) and (d) are not applicable.

(b) As informed, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, sub-clause (f) and (g) are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchase and sale of securities held as investments, purchase of fixed assets and for the sale of services. We have not observed any continuing major weakness in such internal control system during the course of the audit.

(v) According to the information and explanations provided by the management, there were no transactions during the year pursuant to the contracts or arrangements referred to in Section 301 of the Act. Accordingly, sub-clause (b) is not applicable.

(vi) The Company has not accepted any deposits under the provisions of Section 58A and 58AA or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 1957 framed there under.

(vii) In our opinion, the internal audit system of the Company is commensurate with its size and the nature of its business.

(viii) To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 for the products of the Company.

(ix) (a) The Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Wealth Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues with appropriate authorities applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Provident Fund, Employees State Insurance, Income Tax, Wealth Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other undisputed statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(c) According to the records of the Company, there are no dues of Income Tax, Sales Tax, Service Tax, Excise Duty, Wealth Tax, Custom Duty and Cess which have not been deposited on account of any dispute.

(x) The Company has no accumulated losses at the end of the financial year and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

(xi) According to the books of accounts and the records of the Company, no amount is due to financial institution or bank or debenture holders.

(xii) According to the information and explanations given to us and based on documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of Clause 4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company.

(xiv) In respect of dealing / trading in shares, securities and other investments, in our opinion and explanations given to us, proper records have been maintained of the transactions and contracts and timely entries have been made therein. The shares, securities and other investments have been held by the Company, in its own name.

(xv) According to the information and explanations given to us, the Company has not given any guarantee for loan taken by others from bank or financial institutions.

(xvi) The Company did not have any term loans outstanding during the year.

(xvii) On the basis of review of utilization of funds, which is based on overall examination of the Balance Sheet of the Company, related information made available to us by the management, funds raised on short-term basis have not been used for long-term investment.

(xviii) The Company has not made preferential allotment of shares to parties or companies covered in the register maintained under Section 301 of the Act.

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money by public issue during the year

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the year.

For SHAH GUPTA & CO Chartered Accountants VIPUL K. CHOKSI Place : Mumbai Partner Date : April 16, 2010 Membership No. 37606

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