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Its business is concentrated in North India, particularly in the state of Punjab, and any adverse change in the economy of North India could have an adverse effect on its financial condition, results of operations and cash flows.
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Its business is concentrated in North India, with approximately 87% of its total branches located in the state of Punjab. Any adverse change in the economy of North India could have an adverse effect on its financial condition, results of operations and cash flows.
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The company is subject to strict regulatory requirements and prudential norms. If the company is unable to comply with such laws, regulations and norms it may have an adverse effect on its business, financial condition, results of operations and cash flows.
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The Bank is subject to strict regulatory requirements and prudential norms. If its unable to comply with such laws, regulations and norms it may have an adverse effect on its business, financial condition, results of operations and cash flows.
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COVID-19 has had and could continue to have an adverse effect on its business, results of operations and future financial performance.
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The bank is subject to certain prudential norms. If its unable to comply with these norms it may have an adverse effect on its business, financial condition, results of operations and cash flows.
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The company is exposed to operational and credit risks which may result in NPAs. If the company is unable to control the level of NPAs in its portfolio effectively or if the company is unable to improve or maintain its provisioning coverage as a percentage of gross NPAs, its business, financial condition, results of operations and cash flows could be adversely affected.
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As at three months ended June 30, 2023 and June 30, 2022 and Fiscals ended March 31, 2023, 2022 and 2021, our gross NPAs to gross advances were 2.81%, 2.93%, 2.77%, 2.50% and 2.08% and its provision coverage ratio was 51.90%, 42.50%, 51.48% 46.02% and 46.14%, respectively. If the bank is unable to control the level of NPAs in its portfolio effectively or if its unable to improve or maintain the bank provisioning coverage as a percentage of gross NPAs, its business, financial condition, results of operations and cash flows could be adversely affected.
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Its may be impacted by volatility in interest rates, which could cause its Net Interest Margin to decline and adversely affect its results of operations and cash flows.
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Its may be impacted by volatility in interest rates, which could cause its Net Interest Margin to decline and adversely affect its results of operations and cash flows.
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The company is involved in certain legal proceedings, any adverse developments related to which could adversely affect its reputation, business and cash flows.
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The bank id involved in certain legal proceedings, any adverse developments related to which could adversely affect its reputation, business and cash flows.
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The company incur significant operating expenses and any increase in these operating expenses without a corresponding increase in income will adversely affect its financial condition, results of operations and cash flows.
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Its Cost to Income Ratio was 58.58%, 64.38%, 59.97%, 63.42% and 70.76% for the three months ended June 30, 2023 and June 30, 2022 and the Fiscals ended March 31, 2023, 2022 and 2021 respectively. An increase in the Cost to Income Ratio will adversely affect its financial condition, results of operations and cash flows.
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Its business is currently significantly dependent on banking operations in rural and semi -urban areas and any adverse developments in the banking and finance sector in these areas could adversely affect its business, financial condition, results of operations and cash flows.
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Its business is currently significantly dependent on banking operations in rural and semi-urban areas and any adverse developments in the banking and finance sector in these areas could adversely affect its business, financial condition, results of operations and cash flows.
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The company depend on its brand recognition. Any negative publicity or its inability to further enhance awareness about its brand could damage its reputation and, in turn, affect its business, financial condition, results of operation and cash flows.
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As of August 31, 2023, the bank had total indebtedness of Rs. 6,205.10 million. If its unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of its financing agreements, it may adversely affect the company business, credit rating, reputation, prospects, results of operations, cash flows and financial condition.
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While certain of its trademarks used by it for its business are registered, any inability to protect its intellectual property or know how from third party infringement may adversely affect its business and prospects.
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If its unable to secure funding on acceptable terms and at competitive rates when needed, it could have a material adverse effect on its business, financial condition, results of operations and cash flows.
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Its Bank had made certain allotments of Equity Shares in the past and these allotments were made to more than 49 investors.
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Any downgrade in its credit ratings could increase the company borrowing costs, affect its ability to obtain financing, and adversely affect the bank business, results of operations and financial condition.
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If the company is unable to secure funding on acceptable terms and at competitive rates when needed, it could have a material adverse effect on its business, financial condition, results of operations and cash flows.
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The Indian finance industry is intensely competitive and if its unable to compete effectively it would adversely affect the company business, financial condition, results of operations and cash flows.
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The Indian finance industry is intensely competitive and if the company is unable to compete effectively it would adversely affect its business, financial condition, results of operations and cash flows.
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If its fail to effectively manage the bank growth or implement its growth strategies, its business may be adversely affected.
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There have been instances of delays and defaults in the payment of statutory dues by its Bank in the past.
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If its fail to maintain the bank CASA Ratio, its may have a higher cost of funds than its primary competitors, which could adversely affect the bank`s ability to grow and compete for market share for loans unless its decrease the bank Net Interest Margin.
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If the company fail to effectively manage its growth or implement its growth strategies, its business may be adversely affected.
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Its may incur losses due to a decline in the value of collateral obtained as security for the loans disbursed by it and its inability to seize and recover the full value of collateral may adversely affect its business, results of operations, financial condition and cash flows.
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If the company fail to maintain its CASA Ratio, its may have a higher cost of funds than its primary competitors, which could adversely affect its ability to grow and compete for market share for loans unless we decrease its Net Interest Margin.
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The bank relies extensively on and upgrade its information technology systems and any disruptions in such systems, or breach of data, could adversely affect its operations and reputation. Further, the bank`s success depends on its ability to respond to new technological advances.
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Its may incur losses due to a decline in the value of collateral obtained as security for the loans disbursed by its and its inability to seize and recover the full value of collateral may adversely affect its business, results of operations, financial condition and cash flows.
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Its utilize the services of certain third parties for the bank operations. Any deficiency or interruption in their services could adversely affect its business and reputation.
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The company relies extensively on and upgrade its information technology systems and any disruptions in such systems, or breach of data, could adversely affect its operations and reputation. Further, its success depends on its ability to respond to new technological advances.
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Its may face cyber threats attempting to exploit the bank network to disrupt services to customers and/ or theft of sensitive internal data or customer information, which may cause damage to its reputation and adversely affect its financial condition, results of operations and cash flows.
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The company may face cyber threats attempting to exploit its network to disrupt services to customers and/ or theft of sensitive internal data or customer information, which may cause damage to its reputation and adversely affect its financial condition, results of operations and cash flows.
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The Equity Shares have never been publicly traded, and, after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the Offer Price, market capitalization to total revenue multiple, price to total income ratio and price to earnings ratio based on the Offer Price of its Bank, may not be indicative of the market price of the Equity Shares on listing.
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Its may be unable to maintain or renew its statutory and regulatory permits, licences and approvals required to operate its business.
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Its Statutory Auditors have issued certain emphasis of matters on its financials statements in the past.
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Its may face asset liability mismatches, which could affect its liquidity and consequently may adversely affect its financial condition, results of operations and cash flows.
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Its may be unable to maintain or renew the bank statutory and regulatory permits, licences and approvals required to operate its business.
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Deterioration in the performance of any industry sector in which the company has significant exposure may adversely affect its financial condition, results of operations and cash flows.
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Its may face asset liability mismatches, which could affect its liquidity and consequently may adversely affect the bank financial condition, results of operations and cash flows.
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If the company risk management policies are ineffective, it could adversely affect its business, financial condition, results of operations and cash flows.
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Deterioration in the performance of any industry sector in which the bank have significant exposure may adversely affect its financial condition, results of operations and cash flows.
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Its ability to pay dividends in the future will depend on its financial condition, results of operations, cash flows, capital requirements, capital expenditures as well as compliance with applicable RBI regulations.
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If its risk management policies are ineffective, it could adversely affect its business, financial condition, results of operations and cash flows.
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If the company is unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of its financing agreements, it may adversely affect its business, credit rating, reputation, prospects, results of operations, cash flows and financial condition.
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Its ability to pay dividends in the future will depends on its financial condition, results of operations, cash flows, capital requirements, capital expenditures as well as compliance with applicable RBI regulations.
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The company has certain contingent liabilities, which if they materialise, may adversely affect its financial condition, cash flows and results of operations.
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The bank has certain contingent liabilities, which if they materialise, may adversely affect its financial condition, cash flows and results of operations.
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The company could be subject to volatility in income from its treasury operations, which could have an adverse effect on its results of operations and cash flows.
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The bank could be subject to volatility in income from its treasury operations, which could have an adverse effect on its results of operations and cash flows.
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The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
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The bank had in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
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Its non-convertible debentures are listed on BSE and the company subject to rules and regulations with respect to such listed non-convertible debentures. If the company fail to comply with such rules and regulations, its may be subject to certain penal actions, which may have an adverse effect on its business, results of operations, financial condition and cash flows.
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Its non-convertible debentures are listed on BSE and the bank is subject to rules and regulations with respect to such listed non-convertible debentures. If its fail to comply with such rules and regulations, the bank may be subject to certain penal actions, which may have an adverse effect on its business, results of operations, financial condition and cash flows.
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The company is exposed to operational risks, including employee negligence, petty theft, burglary and embezzlement and fraud by employees, agents, customers or third parties, which could harm its reputation, business, financial condition, results of operations and cash flows.
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The bank is exposed to operational risks, including employee negligence, petty theft, burglary and embezzlement and fraud by employees, agents, customers or third parties, which could harm its reputation, business, financial condition, results of operations and cash flows.
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The compay is subject to inspections by various regulatory authorities, including by the RBI. Inspection by the RBI is a regular exercise for all banks and financial institutions. Non-compliance with the observations of such regulators could adversely affect its business, financial condition, results of operations and cash flows.
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The bank is subject to inspections by various regulatory authorities, including by the RBI and by IRDAI. Inspection by the RBI is a regular exercise for all banks and financial institutions. Non-compliance with the observations of such regulators could adversely affect its business, financial condition, results of operations and cash flows.
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Banking companies in India, including it, may be required to report financial statements as per Ind AS in the future. Differences exist between Ind AS and Indian GAAP. In the future, if the company is required to prepare its financial statements in accordance with Ind AS, there is a possibility that its financial condition, results of operations and cash flows could be worse than if the company prepared its financial statements in accordance with Indian GAAP.
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Banking companies in India, including it, may be required to report financial statements as per Ind AS in the future. Differences exist between Ind AS and Indian GAAP. In the future, if its required to prepare the bank financial statements in accordance with Ind AS, there is a possibility that its financial condition, results of operations and cash flows could be poorly represented, owing to the difference in the accounting techniques between Ind AS and Indian GAAP.
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Certain of its corporate records and filings are not traceable. The company cannot assure you that regulatory proceedings or actions will not be initiated against it in the future and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard.
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Certain of its corporate records and filings are not traceable. The bank cannot assure you that regulatory proceedings or actions will not be initiated against it in the future and its will not be subject to any penalty imposed by the competent regulatory authority in this regard.
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There has been a delay in relation to reporting requirements in respect of issuance of Equity Shares by its Bank under the applicable laws.
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There has been a delay in relation to reporting requirements in respect of issuance of Equity Shares by its Bank under the applicable laws.
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The company may breach third-party intellectual property rights.
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Its may breach third-party intellectual property rights.
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If the company fail to adapt to technological advancements in the financial services sector it could affect the performance and features of its products and services and reduce its attractiveness to customers.
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If the bank fail to adapt to technological advancements in the financial services sector it could affect the performance and features of its products and services and reduce the banj attractiveness to customers.
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The company lease or licence all of its business premises and any failure to renew such leases or licences or their renewal on terms unfavourable to it may adversely affect its business, financial condition and results of operations and cash flows.
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Its lease or licence all of the bank`s business premises and any failure to renew such leases or licences or their renewal on terms unfavourable to it may adversely affect its business, financial condition and results of operations and cash flows.
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Certain of its Directors are on the board of directors of companies engaged in a line of business similar to that of its. Any conflict of interest that may occur as a result could adversely affect its business, financial condition, results of operations and cash flows.
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Certain of its Directors are on the board of directors of companies engaged in a line of business similar to that of its. Any conflict of interest that may occur as a result could adversely affect its business, financial condition, results of operations and cash flows.
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Any non-compliance with mandatory AML, KYC and CFT laws and regulations could expose it to liability and harm its business and reputation.
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RBI may remove any employee, managerial personnel or may supersede its Bank`s Board of Directors in certain circumstances, which may materially affect its Bank`s business, results of operations, and financial conditions.
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If the company is unable to service its debt obligations in a timely manner or to comply with various financi al and other covenants and other terms and conditions of its financing agreements, it may adversely affect its business, credit rating, reputation, prospects, results of operations, cash flows and financial condition.
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There may be conflict of interest between the BRLMs or their respective associates/ affiliates and the Bank.
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The company has experienced negative cash flows in prior years.
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Any non-compliance with mandatory AML, KYC and CFT laws and regulations could expose it to liability and harm its business and reputation.
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Its may face employee or labour disruptions that would interfere with its operations and have an adverse effect on its business, financial condition, results of operations and cash flows.
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The bank depends on its brand recognition. Any negative publicity or the bank`s inability to further enhance awareness about its brand could damage its reputation and, in turn, affect its business, financial condition, results of operation and cash flows.
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The company depend on the accuracy and completeness of information about customers and counterparties and any misrepresentation, errors or incompleteness of such information could cause its business to suffer.
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While certain of its trademarks used by it for its business are registered, any inability to protect its intellectual property or know how from third party infringement may adversely affect its business and prospects.
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The company is dependent on its senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could adversely affect its business, financial condition, results of operations and cash flows.
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The bank has experienced negative cash flows in prior years.
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If the company were to incur a serious uninsured loss or a loss that significantly exceeds the limits of its insurance policies, it could have an adverse effect on its financial condition, results of operations and cash flows.
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Its may face employee or labour disruptions that would interfere with its operations and have an adverse effect on the bank`s business, financial condition, results of operations and cash flows.
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Its Promoters, certain of its Directors and Key Managerial Personnel have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.
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The bank depends on the accuracy and completeness of information about customers and counterparties and any misrepresentation, errors or incompleteness of such information could cause its business to suffer.
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One of its Directors has not been able to trace certain records of his educational qualifications and the company has relied on the certificate and affidavit furnished by him for such details of his profile, included in this Draft Red Herring Prospectus.
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The Bank has settled a matter with SEBI in the past in connection with allotment of Equity Shares to more than 49 investors.
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The company has in this Draft Red Herring Prospectus included certain non-GAAP financial measures and certain other selected statistical information related to its operations and financial condition. These non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the financial services industry, and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other financial services companies.
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The bank is dependent on its key managerial personnel and members of senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could adversely affect its business, financial condition, results of operations and cash flows.
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The bankruptcy code in India and other related laws may affect its rights to recover loans from its customers.
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If its were to incur a serious uninsured loss or a loss that significantly exceeds the limits of its insurance policies, it could have an adverse effect on its financial condition, results of operations and cash flows.
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Its Promoters, certain of the bank`s Directors, Key Managerial Personnel and Senior Management have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.
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One of its Directors has not been able to trace certain records of his educational qualifications and the bank has relied on the certificate and affidavit furnished by him for such details of his profile, included in this Draft Red Herring Prospectus.
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Increasing regulatory focus on personal information protection could impact its business and expose it to increased liability.
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The bank has in this Draft Red Herring Prospectus included certain non-GAAP financial measures and certain other selected statistical information related to its operations and financial condition. These non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the financial services industry, and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other financial services companies.
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The bankruptcy code in India and other related laws may affect our rights to recover loans from our customers.
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If inflation were to rise in India, we might not be able to increase the prices of our services at a proportional rate in order to pass costs on to our customers and our profits might decline.
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Changing laws, rules and regulations and legal uncertainties, including adverse application of tax laws and regulations, across the multiple states we operate in, may have a material adverse effect on our business, financial condition, results of operations and cash flows.
