ANNUAL BASEL II PILLAR 3 INFOTRMATION DISCLOSURE INDIAN OVERSEAS BANK, BANGKOK BRANCH AS OF 31ST MARCH 2018

ANNUAL BASEL II PILLAR 3 INFOTRMATION DISCLOSURE
                                   INDIAN OVERSEAS BANK, BANGKOK BRANCH
                                            AS OF 31ST MARCH 2018

SET A : Scope of Application:

Indian Overseas Bank, Bangkok Branch, hereinafter referred as IOB Bangkok, hereby discloses annual
information under Basel II Pillar III for 2017-18 as per the guidelines contained in the Bank of Thailand Notification
No. SorNorSor. 4/2556 Re: Disclosure of Information on Capital Fund Maintenance for Commercial Banks. The
disclosure represents information related to Bangkok Centre only on a standalone basis.

IOB Bangkok also discloses the source of information disclosure of Indian Overseas Bank on a consolidated basis
to the web site of the Central Office http://www.iob.in/BaselDisclosure.aspx

SET B: Capital

1. Capital Structure:

IOB Bangkok is a foreign centre of Indian Overseas Bank having Central Office in Chennai, INDIA. As of 31st
March 2018 capital of IOB Bangkok is THB 1,642,491,795.12 which has been historically contributed by the
Central Office and converted from retained earnings. Assets have been maintained under section 32 of The
Financial Institutions Businesses Act B.E. 2551 amount to THB 1,960,586,632.44

Main components of the capital are as follows:

Government Bonds                                  :    THB 1,729,160,983.67
Bank for Agriculture and Agricultural Cooperatives :     THB   151,234,396.08
Securities guaranteed by Ministry of finance         :     THB    80,191,252.69

The investments are kept in HTM category.
Item 1: Capital Structure
  Table 2 : Capital of Foreign Bank Branches                                                            Unit : Baht
                                 Item
                                                                           31/03/2017             30/09/2017          31/03/2016
  1. Assets required to be maintained under Section 32
                                                                      1,859,301,603.52          1,911,063,171.80      1,960,586,632.44
  2. Sum of net capital for maintenance of assets under Section
  32 and net balance of inter-office accounts (2.1+2.2)
                                                                  1,392,004,503.03              1,632,523,271.27      1,642,491,795.12
  2.1 Capital for maintenance of assets under Section 32                                                              1,798,890,287.96
                                                                  1,798,890,287.96              1,798,890,287.96
  2.2 Net balance of inter-office accounts which the branch is
  the debtor (the creditor) to the head office and other branches
                                                                    -406,885,784.93             -166,367,016.69        -156,398,492.84
  located in other countries, the parent company and
  subsidiaries of the head office
  3. Total regulatory capital (3.1-3.2)

  3.1 Total regulatory capital before deductions (The lowest
  amount among item 1 item 2 and item 2.1)                            1,392,004,503.03          1,632,523,271.27      1,642,491,795.12
  3.2 Deductions

2. Capital Adequacy:

IOB Bangkok has maintained capital to absorb risks arising out of business operations. Bank of Thailand has
stipulated Capital Adequacy ratio of 12% for IOB Bangkok in view of the concentration of advances in the
textiles sector. As on 31st March 2018 total exposure to textile sector has been 15.09% of the Total Credit. As on
31st March 2018, capital Adequacy ratio was 33.42 % which is well above the minimum requirement stipulation.


IOB Bangkok follows following approaches to assess risk.

Standardized Approach for Credit Risk:
 Bank of Thailand has allowed IOB Bangkok to use 100% risk weight for All Private Debtors. IOB Bangkok uses
100% risk weight for all debtors and uses risk weight based on ECAI, if available. Standardized Approach is used
for Market Risk; and Basic Indicator Approach is to assess Operational Risk
Item 2: Capital Adequacy
 Table 3 Minimum capital requirement for credit risk classified by type of assets under the SA
 Unit : Baht
 Minimum capital requirement for credit risk classified
             by type of assets under the SA                  31/03/2018           30/09/2016      31/03/2017
Performing claims

1.Claims on sovereigns and central banks, multilateral                           -
development      banks       (MDBs),   and      non-central                  -                    -
government public sector entities (PSEs) treated as
claims on sovereigns
2. Claims on financial institutions , non-central                                110,469,516.86
governement public sector entities (PSEs) treated as           117,617,125.32                     136,654,184.34
claims on financial institutions, and securities firms
3. Claims on corporates , non-central governement                                236,244,163.89
                                                   232,834,488.14                                 255,945,875.97
public sector entities (PSEs) treated as claims on
corporate

                                                                                 25,662,578.64
4. Claims on retail portfolios                                  25,169,788.50                     14,584,178.49

                                                                                     501,387.02
                                                                   497,998.80                         544,311.96
5. Claims on housing loans


                                                                                 13,008,958.07
                                                              3,129,935.60                        5,163,907.91
6. Other assets
                                                                                 249,413.99
Non-performing claims                                          198,899.90                         249,413.99

First-to-default credit derivatives and Securitisation                -                           -
                                                                                 -
 Total minimum capital requirement for credit risk under                                          413,141,872.66
                                                              379,448,236.26     386,136,018.47
the SA
Table 6 Minimum capital requirement for market risk for positions in the trading book (Standardized measurement approach/
  model approach)
                                                                                                                                Unit : Baht

    Minimum capital requirement for market risk (positions in the trading book)
                                                                                        31/03/2018      30/09/2017            31/03/2017
1. Standardised approach                                                            2,749,869.35        4,481,924.39          4,218,334.53

2. Internal model approach

Total minimum capital requirement for market risk                                   2,749,869.35        4,481924.39           4,218,334.53


Table 7 Minimum capital requirement for operational risk (BIA / SA / ASA)         Unit : Baht
                                                                                       31/03/2018       30/09/2017            31/03/2017
                 Minimum capital requirement for operational risk

1. Calculate by Basic Indicator Approach                                               35,611,756.63    37,302,323.23         38,271,707.41
2. Calculate by Standardised Approach
3. Calculate by Alternative Standardised Approach

Total minimum capital requirement for operational risk                                  35,611,756.63   37,302,323.23
                                                                                                                              38,271,707.41
Table 8 Total risk-weighted capital ratio and Tier 1 risk-weighted capital ratio


                                                31/03/2018
                Ratio                                                       30/09/2017                                     31/03/2017
                                       Capital          Minimum     Capital ratio   Minimum      Capital ratio   Minimum capital ratio
                                       ratio of the   capital ratio of the bank      capital     of the bank     according to BOT regulations
                                       bank           according to                    ratio
                                                          BOT                      according
                                                       regulations                   to BOT
                                                                                   regulations
1. Total capital to risk-weighted
assets                                    33.42%          8.50%         32.43%        8.50%         25.97%       8.50%


2. Tier 1 capital to risk-weighted
assets *
*Disclosed only in case of locally incorporated commercial banks


         SET C: Risk Exposure and Assessment:

         Risk being an integral part of banking activity, IOB Bangkok also therefore assumes various kinds of risks in the
         process of providing different services to the customers. Main Risk components being Credit Risk, Market Risk
         and Operational Risk. IOB Bangkok has put in place risk management measures and practices to effectively
         control the risk and has set up internal committees to address the risk from time to time.

         IOB Bangkok’s Risk Management objective broadly covers proper identification, measurement, monitoring/
         control and mitigation of the risk. IOB Bangkok has set up Risk Management committees to adopt and
         implement best Risk Management practices. Assets and Liability Management Committee (ALCO) , Interest
         Rate Risk Management Committee, Credit Risk Management Committee , Operational Risk Management
         Committee, Market Risk Management Committee are in place to assess risks arising from time to time and to
         effectively address the same.
IOB Bangkok has put in place Market Risk Management Policy, Interest Rate Risk Management Policy,
Compliance Policy, Operational Risk Policy, Asset liability Management Policy, which effectively set risk limits for
various functions and form guidelines for operations.

Internal Audit is done by Central Office on a regular basis, besides concurrent Audit and Statutory Audits
including IT and e-payment Audits.

1 General Qualitative Disclosure requirement

A ) Credit Risk Management:

Risk Management Processes: Credit proposals are prepared by Advances Dept. and sanctioned by Country
Head as per the discretionary powers vested. Credit proposals falling beyond the powers of Country Head are
referred to Head office of the Bank for approval after the processing and recommendations by Country Head.

The structure and responsibilities of relevant risk management units:

Credit risk management committee meets at intervals and addresses the risks associated with credit portfolio.
The committee also gives suitable guidelines to operating staff.

Risk mitigation is primarily ensured by obtaining collaterals and guarantees acceptable to the bank. Centre
Specific lending policy of the bank lays down exposure limits which are followed strictly. IOB Bangkok does not
use derivative products to mitigate credit risk. Borrowers are categorized as per 9 scale risk ratings.

All credit proposals sanctioned by IOB Bangkok are reported to Head Office on a monthly basis for post
sanction scrutiny.

The scope and nature of risk measuring, monitoring, and reporting system

IOB Bangkok has laid down debtors monitoring plan to effectively monitor credit portfolio. Review plan is strictly
adhered to where credit portfolio is reviewed as per the plan.
IOB Bangkok also periodically inspects collaterals and borrowal units to ensure and maintain credit quality.

Policies for hedging or mitigating risks, as well as processes for monitoring the effectiveness of such hedges or
risk mitigation:
Risk mitigation is achieved mainly by obtaining collaterals acceptable to the bank and permitted by the
regulatory guidelines.


Guidelines for setting risk controlling limits:

Centre Specific Lending policy of the bank lays down risk controlling limits for various industries, which are strictly
adhered to.

Roles and responsibilities of relevant internal auditors of commercial banks:

Internal Audit takes place at regular intervals where all borrowal accounts are reviewed by the inspection team
from head Office. Besides concurrent Auditor reviews major borrowal accounts sanctioned by the branch on a
regular basis.

B) Market Risk Management:

Risk Management Processes: Market risk may cause damage to Financial Institution as a result of volatility of the
price or value of position including Assets , Liabilities and Obligations held by the bank. IOB Bangkok has a well
defined market risk policy.

The structure and responsibilities of relevant risk management units:

Market risk is addressed by the committee which meets at regular intervals and takes into account Change in
interest rate, foreign exchange, Equity Price and Commodity Price.

The scope and nature of risk measuring, monitoring, and reporting system

IOB Bangkok maintains capital for
   a) Interest Rate Risk.
   b) Foreign Exchange and commodity price related position on both Trading and Banking Book.

IOB Bangkok does not deal in Equities/Debt and commodities. Market risk therefore is calculated on foreign
exchange open position and forward contracts under standardized approach. IOB Bangkok has separate
policy for monitoring interest rate risk in banking book.
Policies for hedging or mitigating risks, as well as processes for monitoring the effectiveness of such hedges or
risk mitigation:

IOB Bangkok has a well defined Market Risk Management and Interest Rate Risk management policy which
effectively addresses and suggests remedial measures for such risk.

Guidelines for setting risk controlling limits:

Risk controlling limits have been set up as per the Market Risk Supervision policy.

Roles and responsibilities of relevant internal auditors of commercial banks:

Market Risk is assessed, measured and monitored by The Market Risk Management Committee. Positions are
monitored on a daily basis with regard to forex open positions and on a monthly basis with regard to overall
market risk.
Internal Audit takes place every year. Concurrent Auditor is to verify the accuracy of the results placed.

C) Operational Risk Management:

Risk management processes:

Operational Risk is addressed through meeting of committees at intervals who assess the operational risk
environment and suggests remedial measures.

IOB Bangkok has an Operational Risk Management Policy of Central Office which calls for reporting of loss
events data and self assessment of operational risk.

The structure and responsibilities of relevant risk management units:

The operational risk Management committee assesses the risk and suggests measures to contain the risk.

The scope and nature of risk measuring, monitoring, and reporting system

Operational risk loss events data are collected from the relevant departments and submitted to Central office.
IOB Bangkok has an Operational Risk Management Committee to deal with risks arising from time to time.
Policies for hedging or mitigating risks, as well as processes for monitoring the effectiveness of such hedges or
risk mitigation:

Operational risk Management policy is in place which is followed with the objective to integrate Operational
Risk management System into day to day activities in the organization.

Guidelines for setting risk controlling limits:

Operating staff have been provided with Job Cards and Book of Instructions with risk controlling limits wherever
required.

Roles and responsibilities of relevant internal auditors of commercial banks:

Internal Audit takes place once on a regular basis and supported by Concurrent and Statutory Audits.
Information Technology and e-payment audits are also conducted to assess the gaps, if any and to suggest
remedial measures.



III (1): Qualitative and Quantitative disclosure for each type of risk

Credit Risk Disclosure:

General disclosures of credit risk exposures: Credit risk is the possibility of default associated with diminution in
the credit quality of the borrowers and counter parties and their inability to meet financial obligations to the
lenders.

Credit risk is managed by the Credit Risk Management Committee which holds meetings at intervals and
addresses the various issues related to risk perception, measurement and mitigation of credit risk in the IOB
Bangkok portfolio. Further credit risk is managed by obtaining collaterals and guarantees, wherever available
and warranted by the Sanctioning Authority.

Definition of Past due and Impairment

IOB Bangkok follows guidelines of asset classification and provisioning as prescribed by The Bank of Thailand.
The assets are accordingly classified into Acceptable, Special Mention, Doubtful, Doubtful of Loss and Loss.
Guidelines given by Bank of Thailand are used to calculate required provisions for all categories of assets. Being
a branch of Indian Overseas Bank incorporated in India which is being supervised by Reserve Bank of India and
since Asset Classification and provision norms of Reserve Bank of India differs from that of Bank of Thailand, with
regard to provision for assets, IOB Bangkok makes more stringent of the provision requirement for an asset
among the requirement as per RBI and BOT. Also, IOB Bangkok keeps additional provisions for certain assets
where the risk is perceived as higher or for the purpose of better provision coverage.


Credit Risk Exposure under Standardised Approach.

IOB Bangkok uses Standardized Approach to calculate Credit risk weighted Assets. IOB Bangkok is assigning
100% risk weight to all debtors as permitted by Bank of Thailand also uses risk weight based on ratings assigned
by ECAIs, if available.


Credit Risk Mitigation under Standardized Approach

IOB Bangkok accepts permitted collaterals which includes Cash, Deposits (with Bangkok Branch and Other
Branches of Indian Overseas Bank), Machinery, real Estate properties, Tradable Equity Shares. IOB Bangkok also
accepts Counter Guarantees/ letter of Undertakings from financial Institutions for extending buyers credit
facilities.

Securities and guarantees/Letter of Undertakings are properly documented and assigned in favour of the Bank.

Policies, processes and the extent to which commercial banks use the on / off-balance sheet netting.

On Balance Sheet nettings are done to the extent of availability of eligible financial collaterals to calculate
Credit Risk Weighted Assets.

Policies and processes which commercial banks use in collateral management and valuation:

Cash and deposits are valued on the face value. Machineries and Real Estate properties are valued every 3
years by the external appraiser and the reports are further valued by the valuation committee at the IOB
Bangkok branch. Securities are charged by appropriate documentation and mortgages. Cash and deposit
securities are marked under lien with the IOB Bangkok branch systems to ensure availability during the period of
loan outstanding. Regulatory guidelines in Collateral valuation and appraisal are followed.

Main types of collateral taken by commercial banks: Cash Collaterals and deposits with letter of Undertakings
are the main credit risk Mitigants as of the reporting date.

Main types of guarantors and credit derivatives counterparties of the commercial banks’ material credit
derivative transactions

IOB Bangkok accepts personal and corporate guarantees for the loans and advances sanctioned. Letter of
Undertaking from foreign Financial Institutions are taken for Buyers credit extended to the clients of such
financial Institutions. The exposure is monitored by adhering to the exposure limits set by Central Office for IOB
Bangkok.



Credit risk and market risk concentrations for each type of collateral, guarantor and credit derivatives
counterparty which are used for credit risk mitigation

Indian Overseas Bank has put in place well defined lending policy for Bangkok Branch which set up Industry
wise concentration limits. IOB Bangkok follows Bank of Thailand guidelines and internal tools to assess the credit
concentration. As of 31st March 2018 credit portfolio has moderate concentration and no capital is proposed
for the purpose. IOB Bangkok carries out assessment of Rating Migration Risk as per BASEL II requirements.
Set C : Risk exposure and assessment of commercial banks

Item 1 General information on credit risk*
Table 9 Outstanding amounts of significant on-balance sheet assets and off- balance sheet items before adjusted by
credit risk mitigation
(Show average outstanding during the period **, outstanding at the end of the period and at the end of the previous period)

Unit : Baht

                                  Item                                           31/03/2017              31/03/2018
     1. On-balance sheet assets (1.1 + 1.2 + 1.3)                            10,482,626,805.80       10,461,113,998.25

          1.1 Net loans 1/                                                    4,803,994,294.47        4,409,216,174.00
          1.2 Net Investment in debt securities 2/                            2,762,274,780.97        3,114,815,733.36
          1.3 Deposits (including accrued interest receivables)               2,916,357,730.45        2,937,082,090.89
     2. Off-balance sheet items 3/ (2.1 + 2.2 + 2.3)                          3,201,179,471.93        3,384,016,981.94

          2.1 Aval of bills, guarantees, and letter of credits                  32,232,371.34          327,174,299.58
          2.2 OTC derivatives4/                                               3,168,947,100.59        3,056,842,682.36
          2.3 Undrawn committed line                                                  -                       -

* Commercial banks shall disclose position in banking book and trading book. Assets on balance sheet not including
equity exposures. Off-balance sheet items including equity exposures
** If the period-end outstanding amount is not significantly different from the average outstanding amount over the
period, commercial banks need not disclose the average outstanding amount over the period
1/ Including accrued interest receivables and net of deferred incomes, allowances for doubtful accounts and allowances

for revaluation from debt restructuring and including net loans of interbank and money market.
2/ Excluding accrued interest receivables and net of allowances for revaluation of securities and allowances for

impairment of securities3/ Before multiplying credit conversion factor 4/ Including equity- related derivatives
Table 10 Outstanding amounts of on-balance sheet assets and off-balance sheet items before adjusted credit risk mitigation classified by country or
geographic area of debtor*

                                                                              2018                                                            Unit : Baht

                                                                  On-balance sheet assets
   Country or                                                                                                                       Off-balance sheet items 3/
 geographic area                                                                                                                        Aval of bills,                            Undrawn
                                                                    Net Investment     Deposits (including
    of debtor                                                                                                                          guarantees of                             committed
                               Total               Net loans 1/         in debt         accrued interest             Total                                     OTC derivatives
                                                                                                                                      borrowings, and                               line
                                                                     securities 2/       receivables)
                                                                                                                                      letter of credits
1. Thailand
                         9,275,631,249.10      3,292,512,382.48    3,114,815,733.36     2,868,303,133.26        3,008,021,103.92       327,174,299.58        2,680,846,804.34        -
2. Asia Pacific
(exclude Thailand)       1,116,960,233.36      1,116,703,791.52                              256,441.84                0                                            0
3. North America
and Latin America          52,149,540.72                                                    52,149,540.72        375,995,878.02                                375,995,878.02
4. Africa and
Middle East                      0                                                               0                     0                                                             -
5. Europe
                           16,372,975.07                                                    16,372,975.07              0                                             0               -

     Total               10,461,113,998.25     4,409,216,174.00    3,114,815,733.36      2,937,082,090.89       3,384,016,981.94       327,174,299.58        3,056,842,682.36        -
* Commercial banks shall classify countries or geographic areas according to guidelines used in their internal management and shall explain
supporting reasons
1/ Including accrued interest receivables and net of deferred incomes, allowances for doubtful accounts and allowances for evaluation from debt

restructuring and including net loans of interbank and money market.

2/   Excluding accrued interest receivables and net of allowances for revaluation of securities and allowances for impairment of securities

3/   Before multiplying credit conversion factor
Table 11 Outstanding amounts of on-balance sheet assets and off balance sheet items before credit risk mitigation
classified by residual maturity
                                                                                                            Unit : Baht

                                                                          2018
                                        Maturity not exceeding          Maturity exceeding
               Item                              1 year                       1 year
                                                                                                         Total


     1. On-balance sheet assets
(1.1 + 1.2 + 1.3)                           7,376,496,412.90              3,084,617,585.35         10,461,113,998.25
           1.1 Net loans 1/                 3,839,650,406.53                569,565,767.47          4,409,216,174.00
           1.2 Net Investment in
debt securities 2/                            599,763,915.48              2,515,051,817.88          3,114,815,733.36
           1.3 Deposits (including
accrued interest receivables)               2,937,082,090.89                      -                 2,937,082,090.89
     2. Off-balance sheet items 3/
(2.1 + 2.2 + 2.3)                           3,384,016,981.94                      -                 3,384,016,981.94
           2.1 Aval of bills,
guarantees of borrowings, and
letter of credits                             327,174,299.58                      -                  327,174,299.58
         2.2 OTC derivatives                3,056,842,682.36                      -                 3,056,842,682.36
         2.3 Undrawn committed
line
1/ Including accrued interest receivables and net of deferred incomes, allowances for

doubtful accounts and allowances for revaluation from debt restructuring and including net
loans of interbank and money market.
2/ Excluding accrued interest receivables and net of allowances for revaluation of securities and allowances for

impairment of securities
3/ Before multiplying credit conversion factor
Table 12 Outstanding amounts of loans including accrued interest receivables and investment in debt securities before
adjusted by credit risk mitigation classifed by country or geographical area of debtor* and asset classification as prescribed by
the Bank of Thailand
                                                           2018                                                         Unit :Baht
                                                                                                                        Investme
                                             Loans including accrued interest receivables1/                                nt in
 Country or                                                                                                               Debt
 geographic                                                                                                             Securities
   area of                                                                                                              Classified
   debtor                                                                                                                   as
                                       Special                                                                          Doubtful
                       Normal         mentioned       Substandard       Doubtful     Doubtful loss         Total           Loss
1. Thailand
                  3,193,486,985.58   110,333,357.72   9,060,064.03         0        44,406,188.18    3,357,286,595.51
2. Asia Pacific
(exclude
Thailand)         1,128,279,791.52                                                                   1,128,279,791.52
3. North
America and
Latin America
4. Africa and
Middle East
5. Europe

     Total        4,321,766,777.10   110,333,357.72   9,060,064.03         0         44,406,188.18   4,485,566,387.03       0

* Commercial banks shall classify countries or geographic areas according to guidelines used in their internal management and
shall explain supporting reasons
1/   Including outstanding amounts of loans and interest receivable receivables of interbank and money market
Table 13 Provisions (General provision and Specific provision) and bad debt written-off during period for loan including accrued interest
receivables and investment in debt securities classified by country or geographic area*

                                                           2018                                                                                                   Unit : Baht

                                                                   Loans including accrued interest receivables1/
     Country or geographic area of debtor                                                                                                     Specific provision for
                                                                                                             Bad debt written-off              Investment in Debt
                                                   General provision2/          Specific provision
                                                                                                                during period                       Securities
1. Thailand                                                                       76,350,213.03                 524,752,556.22
2. Asia Pacific (exclude Thailand)
3. North America and Latin America
4. Africa and Middle East
5. Europe
     Total                                                   0                    76,350,213.03                 524,752,556.22                            0

* Commercial banks shall classify countries or geographic areas according to guidelines used in their internal management and shall explain supporting reasons.
1/
   Including provision and bad debt written-off during period of loans including accrued interest
receivables of interbank and money market

2/
     Disclosed in total amount
Table 14 Outstanding amount of loans including accrued interests* before adjusted by credit risk mitigation classified by
type of business and by asset classification specified by the Bank of Thailand


                                                                     2018                                                                 Unit : Baht
                                                                      Special
        Type of business                                                                                                                                    Total
                                               Normal                mentioned            Substandard             Doubtful      Doubtful loss
Agriculture and mining                    120,867,697.79                   -                                         0               0                  120,867,697.79
Manufacturing and commerce               2,560,776,139.97         110,333,357.72          9,060,064.03          44,406,188.18        0             2,724,575,749.90
Real estate business and
construction                               74,620,740.39                   0                                                                            74,620,740.39

Public utilities and services             224,468,153.12                   -                                                          -                 224,468,153.12
Housing loans                               5,858,809.42                                                                                                 5,858,809.42
Others (Commercial banks shall
use their owns discretionto
dertermine materiality)                  1,335,175,236.41                                        0                                                  1,335,175,236.41
            Total                       4,321,766,777.10          110,333,357.72          9,060,064.03          44,406,188.18        0             4,485,566,387.03
* Including outstanding amount of loans including accrued interest receivables of interbank anad money market
Type of business                                                             ISIC Codes/Personal Consumption Codes *
Agriculture and mining                             all A000000 all B000000
Manufacturing and commerce                         all C000000 and all G000000
Real estate business and construction              all F000000 and all L000000
Public utilities and services                      all D000000 all E000000 all H000000 all I000000 all J000000 all M000000 all M000000 all N000000 and
                                                   all P000000 all Q000000 all R000000 and S000000
Housing loans                                       cl personal consumption : 241002-3 241007-8 241010-11 and 241013-15
Others (Commercial banks shall use                 all K000000 all O000000 all T000000 all U000000 and cl personal consumption : 241004, 241017-19 and
their owns discretion in dertermining              241021-26
significance)
* This is to clarify business type classification for commercial banks and to ensure consistency of business type classification disclosure. Commercial banks need not to disclose
the ISIC codes/Personal Consumption Codes
Table 15 Provisions (General provision และ Specific provision) and bad debt written-off during period for loans including accrued interest receivables*
          classified by types of business

                                                                                                              2018

                               Type of business                                          General                             Bad debt written-
                                                                                                        Specific provision
                                                                                        provision1/                          off during period

Agriculture and mining                                                                                     614,871.11
Manufacturing and commerce                                                                               62,889,002.68       509,495,557.50
Real estate business and construction                                                                          0
Public utilities and services                                                                             1,074,772.99
Housing loans                                                                                                  0
Others (Commercial banks shall use their owns discretion to
dertermine significance)                                                                                 11,771,566.25        15,256,998.72



            Total                                                                                        76,350,213.03       524,752,556.22
* Including outstanding amount of loans including accrued interest receivables of interbank and money
market
1/ Disclosed in total amount
Table 16 Reconciliation of change in provisions (General provision และ Specific provision) for loans including accrued interest receivables*
                                                                                                                                   Unit : Baht

                                                                                                              2018
                                     Item
                                                                                   General provision    Specific provision       Total
Provisions at the beginning of the period                                                                594,138,212.93      594,138,212.93
Bad debts written-off during the period                                                                  524,752,556.22      524,752,556.22
Increases or Decreases of provisions during the period                                                     6,964,556.32       6,964,556.32
Other provisions (provisions for losses from foreign exchange,
provisions
for merger and sale of businesses)
Provisions at the end of the period                                                                       76,350,213.03      76,350,213.03
* Including outstanding amount of loans including accrued interest receivables of interbank and money
market
Table 17 Outstanding amounts of on-balance sheet assets and off-balance sheet items* classified by type of assets under the SA
                                                     Type of asset                                                                      2018
                                                                                                                                   Off balance sheet
                                                                                                                                                            Total
                                                                                                         On balance sheet assets        item **
 1. Performing claims

 1.1 Claims on sovereigns and central banks, multilateral development banks (MDBs), and non-central
                                                                                                            5,514,191,593.40                           5,514,191,593.40
government public sector entities (PSEs) treated as claims on sovereigns

1.2 Claims on financial institutions , non-central government public sector entities (PSEs) treated as     1,678,714,874.81         14,421,490.03      1,693,136,364.84
claims on financial institutions, and securities firms
1.3 Claims on corporates , non-central government public sector entities (PSEs) treated as claims on
corporate                                                                                                  2,966,626,466.32         99,254,753.87       3,065,881,220.19
        1.4 Claims on retail portfolios                                                                     318,467,107.56            970,500.00        319,437,607.56
        1.5 Housing loans                                                                                     5,858,809.42                                5,858,809.42
         1.6 Other assets
                                                                                                             87,077,578.56                              87,077,578.56
 2. Non-performing claims                                                                                     1,559,999.18                               1,559,999.18
 3. First-to-default credit derivatives and Securitisation
Total                                                                                                      10,572,496,429.25       114,646,743.90      10,687,143,173.15
* After multiplying with credit conversion factor and specific provision
** Including all Repo-style transactions (including Reverse repo transactions)
Item 2 Credit risk exposures classified by method the commercial bank uses for maintaining minimum capital fund
2.1 Credit risk exposures under the SA*
Table 19 : Outstanding amount of net on-balance sheet assets and off-balance sheet items** after adjusted by credit risk mitigation for each type of asset,
classified by risk weight under the SA      Unit: Baht

                                                                                                   2017
        Type of asset
                                                           Rated outstanding amount                                        Unrated outstanding amount
                                                                                                                                                              6     100
                                                                                                                                 5 3                          2 937 /8.5
              Risk weight (%)         0               20              50              100                 150   0         20     0 5 75             100       5 .5 %2/
Performing claims
1.Claims on sovereigns and
central banks, multilateral
development banks (MDBs), and
non-central governement public
sector entities (PSEs) treated as
claims on sovereigns              5,514,191,593.40
2Claims on financial institutions
, non-central governement public
sector entities (PSEs) treated as
claims on financial institutions,
and securities firms                               71,058,043.19 505,118,088.29 1,116,960,233.36
3.Claims on corporates , non-
central governement public
sector entities (PSEs) treated as
claims on corporate                                                                                       -                                                      2,739,229,272.26
4.Claims on retail portfolios                                                                                                                                    296,115,158.79
             5. Claims on
                housing loans                                                                                                                                      5,858,809.42
             6. Other assets                                                                                                            50,254,806.77             36,822,771.79

                                                                                                                                                          75.0
                   Risk weight (%)                                                 50.00                  100.00         150.00                            0
 Non-performing claims1/                                                                                              1,559,999.18
Capital deduction items
prescribed by the Bank of
Thailand
* Including insignificant credit portfolios using the SA of the commercial banks that use the IRB
** After multiplying credit conversion factor
1/
     For the portion claims with no credti risk mitigation of which risk weight are determined by the proportion of provision to total amount of claims
2/
     For foreign bank branches, the risk weight shall be equal to 100 divided by 8.5%
3.1 Credit risk mitigation* under SA Table 28 Part of outstanding that is secured by collateral** under SA classified by type of assets and collateral                                                  Unit :Baht
                                                                                                                                                                                                   2017
                                                                              Type of asset                                                                                   Eligible financial     Guarantee and credit
                                                                                                                                                                                 collateral1/            derivatives
         Performing assets
                1 Claims on sovereigns and central banks, multilateral development banks (MDBs), and non-central governement public sector
                     entities (PSEs) treated as claims on sovereigns
                2 Claims on financial institutions , non-central government public sector entities (PSEs) treated as claims on financial
                     institutions, and securities firms
                3
                     Claims on corporates , non-central government public sector entities (PSEs) treated as claims on corporate                                              326,651,947.93

                4 Claims on retail portfolios                                                                                                                                 23,322,448.77
                5 Claims on housing loans
                6 Other assets
         Substandard assets                                                                                                                                                  -0-
                                                                                  Total                                                                                      349,974,396.70                                 0
* Excluding securitisation.
** Values after on-balance sheets and off-balance sheets netting
1/
     Eligible financial collateral that the Bank of Thailand allows to use for risk mitigation. Commercial banks applying the comprehensive approach shall disclose the value after haircut.
2. Disclosure on market risk for trading book position
Item 4: Market risk exposure
Market risk exposure under the Standardized Approach

Bank maintains capital for Market Risk associated with
    • Interest Rate Risk and Equity Price related position on the Trading Book
    • Foreign Exchange and Commodity Price related Position on both Trading and Banking Book.
As the Branch does not Trade in Equities/Debt/Commodities, there is no Market Risk in these instruments.
Branch has formulated a separate Policy for monitoring Interest Rate Risk in its Banking Book.

Branch is calculating Capital requirement for Market Risk under Standardized Approach. The assessment of
Market Risk shall be done by Market Risk Committee. Concurrent Auditor shall verify the accuracy of the results
placed to the committee and shall submit his observations in the quarterly concurrent Audit Report for
rectification needed, if any.

Details of general qualitative information under Item I on market risk under the Standardised approach

In assessing General Market Risk for interest rate under Standardized Approach, the position in a Trading Book
are allocated into a table and capital charge is calculated based on the four components:-
    • The Net Long and Short Position in the Whole Trading Book
    • A Proportion of Offsetting Position in the same time bands ( Vertical Disallowance)
    • A Proportion of Offsetting position across different time bands (Horizontal Disallowance)
    • A Net capital charge for positions in Options (If any)
Item 4 Market risk exposures 4.1 Market risk under the Standardised Approach
Table 30 Minimum capital requirements for each type of market risk under the
Standardised Approach

                                                                                Unit:Baht
   Minimum capital requirements for         31/03/2018                   30/09/2017
   market risk under the Standardized
                Approach
Interest rate risk                          1,223,420.90            3,654,809.70

Equity position risk

Foreign exchange rate risk                  1,526,448.46              827,114.70

Commodity risk

   Total minimum capital requirements       2,749,869.36            4,481,924.40


Disclosure on operational risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or
external events.

IOB Bangkok follows regulatory and internal guidelines on Operational Risk. The operational risk management
policy adopted outlines organizational structure integrating operational risk management system to day to day
risk management processes by clearly assigning roles and responsibilities to the operating staff. Operational risk
covers collection of loss events and data and self assessment of Operational risk. IOB Bangkok has framed Book
of Instructions and Operating Manuals for various operations.

IOB Bangkok has also put in place Compliance Policy to ensure regulatory and statutory compliance. IOB
Bangkok has adopted Basic Indicator Approach to calculate Risk Weighted Asset for Operational risk and holds
required capital.
4. Disclosure on equity exposures: IOB Bangkok does not deal in equity trading.

Disclosure on interest rate risk in banking book

A Policy is framed by the Bank on Interest Rate Risk to manage the interest rate risk in the Banking Book and to
maintain adequate Capital relative to the risk exposure.

Interest rate risk is the loss of earning resulting from interest rate changes which may arise from the exposures in
both on and off balance sheet items, the Trading Book and/or Banking Book.

Bank has designated a Committee, where formulating proper and adequate risk management policies and
procedures are monitored in order to ensure proper risk management. As the interest rate is mainly on
Repricing Risk, the Repricing Gap approach is used for assessing the Interest Rate Risk.

Bank conducts Stress Test taking into accounts some of the possible scenarios of stressful conditions.

Item 7 Interest rate risk in the banking book

Table 33 The effect of changes in interest rates* to net earnings
                                                                               2018
                    Currency
                                                                      Effect to net earnings
Baht                                               (11,878,594.16)

USD                                                (10,966,582.41)

EURO                                                   1,505841.72

Others                                             0

       Total effect of interest rate changes       (21,339,334.85)


* Commercial banks shall use the percentage changes in interest rates of 100 bps.
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