Investor Presentaiton

SMFG India Credit Pragati Ki Nayi Pehchaan • Board approved Risk Appetite framework for risk calibrated growth • Well defined product boundaries • • • 1 Credit Risk Management Framework Robust Underwriting, Monitoring and Collection processes Usage of 10+ years of customer data Risk Policy Risk Analytics for evolution of scorecards and Early Warning System (EWS) models Champion-Challenger approach for healthy portfolio growth Clear structure of collections, legal and recoveries • In-house & agency led models • Propensity models for recovery • • Digitized processes through BOT/IVR calling, online payments, mobile app Early warning decision trees 4 2 • Multiple scorecards across customer loan life cycle • Centralized Rule Engine and scorecards to deploy credit policy consistently across geographies • Managing portfolio volatility through regular stress testing & building sufficient provisions • • • • Collections Underwriting 3 On-ground approach for controlled risk Hub & Spoke model for efficiencies Automated decision support Digitization via tools such as Perfios, E-NACH etc. Operational Risk Management & Fraud Risk Management Framework 24 24

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