PAYTM Q2: INCREASES DEFAULT LOSS GUARANTEE LIMITS FOR PIRAMAL & KISSET SUISON; ADDS VIVRITI AND UGRO CAPITAL

• DLG Expansion: Board approved revised Default Loss Guarantee (DLG) limits for lending partners to support loan distribution business • Piramal Finance: DLG limit increased to ₹150 Cr from ₹90 Cr • Kisset Suison Finance: DLG limit increased to ₹150 Cr from ₹90 Cr • Vivriti Capital: Approved new DLG limit of up to ₹100 Cr • UGRO Capital: Approved new DLG limit of up to ₹100 Cr • Existing Guarantees: Previously disclosed DLG limits of ₹350 Cr for SMFG India Credit and ₹90 Cr for Muthoot Fincorp • Guarantee Structure: DLG support to be provided through fixed deposits or bank guarantees • Revenue Model: Paytm earns sourcing and collection fees by distributing loans through lending partners • Business Expansion: Higher DLG limits could support increased loan disbursements and deeper partnerships with financial institutions • Risk Exposure: Higher guarantees increase potential financial exposure if borrowers default Impact: Mixed (Expanded lending partnerships and higher DLG limits could accelerate loan distribution and fee income, but increased credit-loss exposure and guarantee-related costs remain key risks.)

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