Punjab & Sind Bank

The Capital Adequacy Ra o (Basel III) of the Bank is 10.91% as on 31.03.2016 against the minimum s pulated
requirement of 9.625%.

BANKS COMPLIANCE WITH BASEL-II

In terms of Regulatory Guidelines of Reserve Bank of India, the Bank has adopted the New Capital Adequacy
Framework w.e.f. 31.03.2009. Based on Basel II norms, the Bank has adopted Standardized Approach for
Credit Risk, Modi ed Dura on approach for Market Risk and Basic Indicator approach for Opera onal Risk for
compu ng the capital charge. The Bank has also implemented Basel III Guidelines and has started compu ng
CRAR w.e.f. June 2013. The CRAR posi on of the Bank is reviewed by the Board on a quarterly basis. Bank has
geared for moving towards advanced approaches under BASEL II as suggested by RBI. Bank has also
appointed a Consultant for se ng up Enterprise Wide Integrated Risk Management System (EIRMS) in the
Bank for moving to Advance approaches of Basel II and implementa on of Basel III Guidelines.

DISCLOSURE:
In compliance with the Reserve Bank of India guidelines on Basel II& Basel III Pillar 3 Market Discipline, the
Bank has put in place a Disclosure Policy duly approved by the Board and the disclosures on quarterly / Half
yearly / Annual basis, as per the policy, are displayed on the Banks Website / Annual Report.
Awareness of Basel II norms at the opera ng level is created and con nuously enhanced to achieve the aim of
conserva on and op mum use of capital.