| SCHEDULE -18 NOTES ON ACCOUNTS |
Of which under CDR
| |
A Disclosure in terms of RBI requirements
|
| |
1. |
Capital
|
| |
|
| Items |
Current Year |
Previous Year |
CRAR (%) |
11.80% |
13.65% |
CRAR - Tier I capital (%) |
8.74% |
10.98% |
CRAR - Tier II Capital (%) |
3.06% |
2.67% |
Percentage of the shareholding of the Government of India in bank |
53.81% |
53.81% |
Amount of subordinated debt raised as Tier-II capital (during the year) |
Rs. 920 Crores |
Rs. 770 Crores |
|
| |
| |
2. |
Investments
|
| |
|
|
Rs. in Crores |
|
|
| Items |
Current Year |
Previous Year |
Value of Investments |
|
|
(i) Gross Value of Investments |
|
|
(a) In India |
32041.58 |
32498.04 |
(b) Outside India, |
3685.72 |
3250.02 |
(ii) Provisions for Depreciation |
|
|
(a) In India |
761.36 |
608.82 |
(b) Outside India, |
22.32 |
25.01 |
(iii) Net Value of Investments |
|
|
(a) In India |
31280.22 |
31889.22 |
(b) Outside India, |
3663.40 |
3225.00 |
2) Movement of provisions held towards depreciation on investments |
|
|
(i) Opening balance |
633.83 |
203.16 |
(ii) Add: Provisions made during the year |
335.66 |
610.14 |
(iii) Less: Write-off / write-back of excess provisions during the year |
185.81 |
179.47 |
(iv) Closing balance |
783.68 |
633.83 |
|
| |
| |
2.1 |
Repo Transactions
|
| |
|
|
Rs. in Crores |
|
|
| |
Minimum outstanding during the year |
Maximum outstanding during the year |
Daily Average outstanding during the year |
As on March 31,2007 |
Securities sold under repos |
0 |
0 |
0 |
NIL |
Securities purchased under reverse repos |
199.89 |
199.89 |
3.83 |
NIL |
|
| |
| |
2.2 |
Non-SLR Investment Portfolio
|
| |
i) |
Issuer composition of Non SLR investments
|
| |
|
|
Rs. in Crores |
|
|
| NO. |
Issuer |
Amount |
Extent of Private Placement |
Extent of ‘Below Investment Grade' Securities |
Extent of ‘Unrated’ Securities |
Extent of ‘Unlisted’ Securities |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
| (i) |
PSUs |
1203.15 |
1154.32 |
66.74 |
8.51 |
108.77 |
| (ii) |
FIs |
691.00 |
683.79 |
211.94 |
48.29 |
254.18 |
| (iii) |
Banks |
1308.30 |
1280.55 |
83.52 |
27.54 |
632.90 |
| (iv) |
Private Corporate |
690.80 |
344.45 |
178.31 |
136.63 |
252.70 |
| (v) |
Subsidiaries /Joint Ventures |
667.39 |
— |
— |
— |
— |
| (vi) |
Others |
739.68 |
— |
— |
— |
— |
| (vii) |
Provision held towards depreciation |
-312.93 |
xxx |
xxx |
xxx |
xxx |
| |
Total |
4987.39 |
|
|
|
|
|
| |
| |
ii) |
Non-performing Non-SLR investments
|
| |
|
|
Rs. in Crores |
|
|
| Particulars |
Current Year |
Previous Year |
Opening balance |
78.52 |
219.99 |
Additions during the year since 1st April |
111.70 |
19.33 |
Reductions during the above period |
4.22 |
160.80 |
Closing balance |
186.00 |
78.52 |
Total provisions held |
92.88 |
78.46 |
|
| |
| |
2.3 |
Derivatives
|
| |
2.3.1 |
Forward Rate Agreement / Interest Rate Swap |
| |
|
|
Rs. in Crores |
|
|
| |
Items |
Current Year |
Previous Year |
| i) |
The notional principal of swap agreements |
6935.54 |
6664.79 |
| ii) |
Losses which would be incurred if counter parties failed to fulfill their obligations under
the agreements |
117.93 |
105.47 |
| iii) |
Collateral required by the bank upon entering into swaps |
— |
— |
| iv) |
Concentration of credit risk arising from the swaps |
128.98 |
97.92 |
| v) |
The fair value of the swap book |
-63.23 |
-41.00 |
|
| |
|
Forward Rate Agreement/Interest Rate Swaps were
undertaken for market making, hedging of FCNR (B) Deposit
Portfolio, deposits and call lending and hedging market making
exposures and for hedging Bank’s Tier II Bonds.
All the forward rate agreement/interest rate swaps
undertaken to hedge were on the basis of “Receive fixed and
pay floating”.
|
| |
2.3.2 |
Exchange Traded Interest Rate Derivatives:
|
| |
|
|
Rs. in Crores |
|
|
Sr. No. |
Particulars |
Amount |
| i) |
Notional principal amount of exchange traded interest rate derivatives undertaken during the year (instrument-wise) |
NIL |
| ii) |
Notional principal amount of exchange traded interest rate derivatives outstanding as on 31st March 2006 (instrument-wise) |
NIL |
| iii) |
Notional principal amount of exchange traded interest rate derivatives outstanding and not “highly effective” (instrument-wise) |
NIL |
| iv) |
Mark-to-market value of exchange traded interest rate derivatives outstanding and not “highly effective” (instrument-wise) |
NIL |
|
| |
2.3.3 |
Disclosures on risk exposure in derivatives
|
| |
Qualitative Disclosure
|
| |
|
The Treasury Policy of the Bank lays down the types of financial
derivative instruments, scope of usages, approval procedures
and the limits like open position limits, stop loss limits and
counter party exposure limits for undertaking derivative
transactions.
The Bank uses financial derivative transactions for hedging its
on or off balance sheet exposures as well as for market making.
Basically, these products are used for hedging risk, reducing
cost and increasing the yield in such transactions and for
proprietary trading.
The types of risk to which the bank is exposed to are credit risk,
market risk, country risk and operational risk. The Bank has risk
management policies (approved by Board of Directors of the
Bank), which is designed to measure the financial risks for
transactions in the trading book on a regular basis, by way of
MTM, VaR and PV01, and to set appropriate risk limits. These
are monitored by means of reliable and upto date Management
Information Systems by the Risk Management Department of
the Bank from time to time who, in turn, apprises the risk profile
to the Risk Management Committee of Directors which is
presided over by the Bank’s Chairman and Managing Director.
The counter parties to the transactions are banks and corporate
entities. The deals are done under approved exposure limits.
The bank has adopted the current exposure method prescribed
by Reserve Bank of India for measuring Credit Exposure on Derivative products as per which the bank sums the total replacement cost (obtained by mark to market of all its contracts
with positive value i.e. when the bank has to receive money
from the counter party) and an amount for potential future
changes in credit exposure calculated on the basis of the total
notional principal amount of the contract multiplied by the
relevant credit conversion factors according to the residual
maturity as detailed herein under:-
Conversion factor to be applied on notional principal amount
|
| |
|
| Residual Maturity |
Interest Rate Contract |
Exchange Rate Contract |
| Less than one year |
NIL |
1.0% |
| One year and above |
0.50% |
5.0% |
|
| |
|
The hedge/non-hedge (market making) transactions are
recorded separately. Hedging derivatives are accounted for
on an accrual basis. Trading derivative positions are markedto-
market (MTM) and the resulting losses, if any, are recognized
in the Profit and Loss Account. Profit, if any, is not recognized.
Income and Expenditure relating to interest rate swaps are
recognized on the settlement date. Gains/losses on termination
of the trading swaps are recorded on the termination date as
income/expenditure.
|
| |
Quatitative Disclosure
|
| |
|
|
Rs. in Crores |
|
|
Sr. No. |
Particulars |
Currency Derivatives |
Interest rate Derivatives |
| i) |
Derivatives (Notional Principal Amount) |
2975.97 |
6935.54 |
| |
a) For hedging |
1063.84 |
5071.29 |
| |
b) For trading |
1912.13 |
1864.25 |
| ii) |
Marked to Market Positions [1] |
57.04 |
-62.92 |
| |
a) Asset (+) |
5.89 |
4.37 |
| |
b) Liability (-) |
51.15 |
67.29 |
| iii) |
Credit Exposure [2] |
110.43 |
128.98 |
| iv) |
Likely impact of one percentage change in interest rate (100*PV01) |
1.05 |
100.20 |
| |
a) on hedging derivatives |
1.05 |
100.20 |
| |
b) on trading derivatives |
0.00 |
0.00 |
| v) |
Maximum and Minimum of 100*PV01 observed during the year |
5.24 & 1.12 |
135.32 & 106.66 |
| |
a) On hedging |
5.24 & 1.12 |
135.32 & 106.66 |
| |
b) On trading |
0.00 |
0.00 |
|
| |
2.4 |
Asset Quality
|
| |
2.4.1 |
Non-Performing Asset
|
| |
|
|
Rs. in Crores |
|
|
Sr. No. |
Items |
Current Year |
Previous Year |
| i) |
Net NPAs to Net Advances (%) |
0.60% |
0.87% |
| ii) |
Movement of NPAs (Gross) |
|
|
| |
(a) Opening balance |
2390.14 |
3321.81 |
| |
(b) Additions during the year |
773.66 |
549.65 |
| |
(c) Reductions during the year |
1071.66 |
1481.32 |
| |
(d) Closing balance |
2092.14 |
2390.14 |
| iii) |
Movement of Net NPAs (net of floating provisions) |
|
|
| |
(a) Opening balance |
518.04 |
619.64 |
| |
(b) Additions during the year |
572.80 |
420.05 |
| |
(c) Reductions during the year |
589.17 |
521.65 |
| |
(d) Closing balance |
501.67 |
518.04 |
| iv) |
Movement of provisions for NPAs (Excluding provisions on standard assets) |
|
|
| |
(a) Opening balance |
1328.07 |
1732.20 |
| |
(b) Provisions made during the year |
380.56 |
400.50 |
| |
(c) Write-off / write-back of excess provisions |
717.18 |
804.63 |
| |
(d) Closing balance |
991.45 |
1328.07 |
|
| |
| |
2.4.2 |
Details of Loan Assets subjected to Restructuring
|
| |
|
|
Rs. in Crores |
|
|
Sr. No. |
Items |
Current Year |
Previous Year |
| i) |
Total amount of loan assets subjected to restructuring, rescheduling, renegotiation; |
287.78 |
279.75 |
| |
- Of which under CDR |
71.09 |
75.58 |
| |
- Of which under SME |
40.58 |
26.95 |
| ii) |
The amount of Standard assets subjected to restructuring, rescheduling, renegotiation; |
271.66 |
215.00 |
| |
- Of which under CDR |
71.09 |
66.23 |
| |
- Of which under SME |
24.68 |
21.13 |
| iii) |
The amount of Sub-Standard assets subjected to restructuring, rescheduling, renegotiation; |
6.73 |
58.95 |
| |
- Of which under CDR |
0.00 |
5.59 |
| |
- Of which under SME |
6.72 |
4.57 |
| iv) |
The amount of Doubtful assets subjected to restructuring, rescheduling, renegotiation; |
9.39 |
5.80 |
| |
- Of which under CDR |
0.00 |
3.76 |
| |
- Of which under SME |
9.18 |
1.25 |
| |
Note: [(i) = (ii)+(iii)+(iv)] |
|
|
|
| |
| |
2.4.3 |
Details of financial assets sold to Securitisation / Reconstruction Company for Asset Reconstruction
|
| |
|
|
Rs. in Crores |
|
|
Sr. No. |
Items |
Current Year |
Previous Year |
| i) |
No. of accounts |
9 |
4 |
| ii) |
Aggregate value (net of provisions) of accounts sold to SC / RC |
4.30 |
1.84 |
| iii) |
Aggregate consideration |
28.42 |
32.63 |
| iv) |
Additional consideration realized in respect of accounts transferred in earlier years |
— |
— |
| v) |
Aggregate gain / (loss) over net book value. |
24.12 |
30.79 |
|
| |
| |
2.4.4 |
Provisions on Standard Asset
|
| |
|
|
Rs. in Crores |
|
|
| Items |
Current Year |
Previous Year |
Provisions towards Standard Assets as per RBI norms |
393.72 |
218.85 |
Other contingent provision towards Standard Assets |
48.39 |
54.02 |
|
| |
| |
2.5 |
Business Ratio
|
| |
|
|
Rs. in Crores |
|
|
Sr. No. |
Items |
Current Year |
Previous Year |
| i) |
Interest Income as a percentage to Working Funds |
7.39% |
6.69% |
| ii) |
Non-interest income as a percentage to Working Funds |
0.94% |
1.12% |
| iii) |
Operating Profit as a percentage to Working Funds |
1.94% |
1.92% |
| iv) |
Return on Assets |
0.72% |
0.79% |
| v) |
Business (Deposits plus advances) per employee (Rs. in Lac) |
555.00 |
396.00 |
| vi) |
Profit per employee (Rs. in Lac) |
2.73 |
2.13 |
|
| |
| |
2.6 |
Asset Liability Management Maturity pattern of certain items of assets and liabilities
|
| |
|
|
Rs. in Crores |
|
|
|
1 to 14 days |
15 to 28 days |
29 days to 3 months |
Over 3 months & up to 6 months |
Over 6 months & up to 1 year |
Over 1 year & up to 3 years |
Over 3 years & up to 5 years |
Over 5 years |
Total |
| Deposits |
10484.42 |
3810.70 |
20250.96 |
12624.36 |
20926.44 |
53020.36 |
2908.16 |
890.58 |
124915.98 |
| Advances |
10072.37 |
2903.17 |
8614.37 |
7903.13 |
6344.80 |
26715.98 |
10457.52 |
10609.53 |
83620.87 |
| Investments |
1078.70 |
430.61 |
1535.24 |
1904.31 |
794.36 |
5165.77 |
5918.19 |
18116.45 |
34943.63 |
| Borrowings |
421.87 |
0.01 |
130.59 |
157.19 |
64.15 |
228.91 |
130.22 |
9.62 |
1142.56 |
| Foreign Currency assets |
9272.14 |
2340.77 |
6295.19 |
5675.80 |
3067.56 |
2408.55 |
4148.64 |
1368.18 |
34576.33 |
| Foreign Currency liabilities |
6737.95 |
2739.68 |
10308.96 |
4194.60 |
6051.14 |
4178.93 |
1567.73 |
2386.87 |
38165.86 |
|
| |
| |
2.7 |
Lending to Sensitive Sector
|
| |
2.7.1 |
Exposure to Real Estate Sector
|
| |
|
|
Rs. in Crores |
|
|
| Category |
Current Year |
Previous Year |
a) Direct exposure |
|
|
(i) Residential Mortgages – |
|
|
Lendings fully secured by mortgages on residential property that is or will be
occupied by the borrower or that is rented; |
5414.60 |
3836.80 |
Upto Rs.15 Lac |
4576.98 |
3425.58 |
Above Rs.15 Lac |
837.62 |
411.22 |
(ii) Commercial Real Estate – |
|
|
Lendings secured by mortgages on
commercial real estates (office buildings, retail space, multi-purpose commercial premises, multi-family residential buildings,
multi-tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development and
construction, etc.). Exposure would also include non-fund based (NFB) limits; |
1968.13 |
345.69 |
(iii) Investments in Mortgage Backed Securities (MBS) and other securitised exposures – |
|
|
a. Residential, |
12.23 |
11.34 |
b. Commercial Real Estate. |
142.29 |
196.96 |
b) Indirect Exposure |
|
|
Fund based and non-fund based exposures on
National Housing Bank (NHB) and Housing Finance Companies (HFCs). |
3119.57 |
2629.59 |
|
| |
| |
2.7.2 |
Exposure to Capital Market
|
| |
|
|
Rs. in Crores |
|
|
|
Items |
Current Year |
Previous Year |
| i) |
Investments made in equity shares (Including venture capital funds) |
454.43 |
385.85 |
| ii) |
Investments in bonds / convertible debentures |
- |
0.56 |
| iii) |
Investments in units of equity– oriented mutual funds |
98.57 |
202.40 |
| iv) |
Advances against shares to individuals for investment in equity shares (including IPOs / ESOPS), bonds and debentures, units of equity oriented mutual funds |
11.52 |
6.74 |
| v) |
Secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and market makers: |
224.14 |
4.15 |
| |
Total Exposure to Capital Market |
|
|
| |
(i+ii+iii+iv+v) |
788.66 |
599.70 |
| vi) |
(vi) Of (v) above, the total finance extended to stockbrokers for margin trading. |
— |
— |
|
| |
| |
2.7.3 |
Risk Category wise Country Exposure
|
| |
|
|
Rs. in Crores |
|
|
| Risk Category* |
Exposure (net) as at 31st March 07 |
Provision held as at 31st March 07 |
Exposure (net) as at 31st March 06 |
Provision held as at 31st March 06 |
| Insignificant |
11126.85 |
8.73 |
6426.55 |
2.53 |
Low |
3062.69 |
2.43 |
3082.28 |
1.32 |
Moderate |
864.84 |
— |
752.97 |
— |
High |
22.90 |
— |
44.82 |
— |
Very High |
1241.08 |
— |
1058.43 |
— |
Restricted |
5.07 |
— |
9.81 |
— |
Off-credit |
6.06 |
— |
10.44 |
— |
Total |
16329.49 |
11.16 |
11385.30 |
3.85 |
|
| |
| |
2.7.4 |
Details of Single Borrower Limit (SGL), Group Borrower
Limit (GBL) exceeded by the bank.
|
| |
|
|
Rs. in Crores |
|
|
| Name of the borrower |
Single borrower exposure limit |
Total Limit sanctioned |
Balance as on 31.3.2007 |
| Indian Oil Corporation Limited (IOCL) |
1311.22 |
1748.30 |
1541.01 |
Hindustan Petroleum Corporation Ltd. |
1311.22 |
1484.00 |
801.57 |
|
| |
| |
2.8 |
Miscellaneous
|
| |
2.8.1 |
Amount of Provisions made for Income-tax during the
year
|
| |
|
|
Rs. in Crores |
|
|
| |
Current Year |
Previous Year |
Provision for Income Tax |
623.41 |
287.64 |
Less: Reversal of income tax provisions relating to previous years |
0 |
222.58 |
Net Provision for Income Tax |
623.41 |
65.06 |
|
| |
| |
2.8.2 |
Disclosure of penalties imposed by RBI
|
| |
|
The Reserve Bank of India has not imposed any penalty on Bank u/s 46(4) of the Banking Regulation Act 1949.
|
| |
3. |
SLR Investments
|
| |
|
|
Rs. in Crores |
|
|
| Particulars |
As on 31.3.2007 |
As on 31.3.2006 |
| |
Book Value |
Market Value |
Book Value |
Market Value |
Government Securities – SLR(CG,SG & TB) |
25477.87 |
25034.50 |
25224.00 |
24802.90 |
Approved Securities – SLR |
1252.62 |
1369.35 |
1298.80 |
1480.84 |
|
| |
| |
4. |
Break up of Provisions and Contingencies
|
| |
4.1 |
The break-up of provisions and contingencies appearing in
Profit & Loss Account is as under
|
| |
|
|
Rs. in Crores |
|
|
| Particulars |
As on 31.3.2007 |
As on 31.3.2006 |
Provision for depreciation on investment |
335.66 |
610.14 |
Bad Debts written off / Provision made towards NPA |
227.15 |
340.01 |
Provision for standard assets (*net of reversal of generic provision created in ) earlier years of Rs. 103.73 Crores) |
176.03 |
* 9.79 |
Provision for taxes (including Deferred Taxes, Fringe Benefit and Wealth tax)) |
627.80 |
287.64 |
Other Provision and Contingencies - |
|
|
Provision towards sacrifice of interest in
restructured standard and sub-standard accounts |
(8.07) |
14.15 |
Provision for Country Risk Management |
11.31 |
1.02 |
Provision for staff welfare expenses |
15.00 |
15.00 |
Others |
3.66 |
35.91 |
Total |
1388.54 |
1313.66 |
Less: Excess Provision for Depreciation on Investments |
0.00 |
0.53 |
Write back of Income tax provision Relating to previous years |
0.00 |
222.58 |
TOTAL |
1388.54 |
1090.55 |
|
| |
| |
4.2 |
Floating Provisions – Comprehensive Disclosures |
Rs. in Crores |
|
|
| Particulars |
Current Year |
Previous Year |
a. Opening balance in the floating
provisions account |
450.35 |
554.08 |
b. The quantum of floating provisions
made in the accounting year |
— |
— |
c. Purpose and amount of draw down made
ØeÙeespeve leLee jeefMe during the accounting year |
— |
103.73 |
d. Closing balance in the floating
provisions account. |
450.35 |
450.35 |
|
| |
| |
5. |
Disclosure of complaints
|
| |
A |
Customer Complaints
|
| |
|
| (a) |
No. of complaints pending at the beginning of the year |
167 |
| (b) |
No. of complaints received during the year |
2731 |
| (c) |
No. of complaints redressed during the year |
2761 |
| (d) |
No. of complaints pending at the end of the year |
137 |
|
| |
| |
B. |
Awards passed by the Banking Ombudsman
|
| |
|
| (a) |
No. of unimplemented Awards at the beginning of the year |
02 |
| (b) |
No. of Awards passed by the Banking
Ombudsman during the year |
13 |
| (c) |
No. of Awards implemented during the year |
13 |
| (d) |
No. of unimplemented Awards at the end of the year |
02* |
|
| |
|
*An appeal has been filed against the award of the Banking Ombudsman with appropriate authority.
|
| |
| |
B. |
Disclosure in terms of Accounting Standards (AS) issued by the Institute of Chartered Accountants of India:
|
| |
1. |
Segment Reporting (AS-17)
|
| |
|
The bank has recognized “Treasury Operations” and “Other Banking Operations” as Primary business segments and “Domestic” and “International” as secondary geographical segments in line with Reserve bank of India guidelines. Other banking operations include all banking operations other than treasury operations.
|
| |
|
Part A -Business Segments
|
| |
|
|
Rs. in Crores |
|
|
Segments |
Treasury Operations |
Other Banking Operations |
Total |
Particulars |
Year Ended 31.03.07 |
Year Ended 31.03.06 |
Year Ended 31.03.07 |
Year Ended 31.03.06 |
Year Ended 31.03.07 |
Year Ended 31.03.06 |
Revenue |
3767.95 |
3805.35 |
6617.93 |
4371.99 |
10385.88 |
8177.32 |
Results |
508.38 |
152.31 |
1772.85 |
1111.35 |
2281.23 |
1263.66 |
Unallocated Expenses |
|
|
|
|
626.97 |
149.06 |
Profit before tax |
|
|
|
|
1654.26 |
1114.60 |
Provision for tax |
|
|
|
|
627.79 |
287.64 |
Net Profit |
|
|
|
|
1026.47 |
826.96 |
Other Information |
|
|
|
|
|
|
Segment Assets |
44691.27 |
44592.62 |
96621.24 |
66917.79 |
141312.51 |
111510.41 |
Unallocated Assets |
|
|
|
|
1833.67 |
1882.12 |
Total Assets |
|
|
|
|
143146.18 |
113392.53 |
Segment Liabilities |
44986.26 |
44446.51 |
86080.34 |
55835.74 |
131066.60 |
100282.25 |
Unallocated Liabilities |
|
|
|
|
12079.58 |
13110.28 |
Total Liabilities |
|
|
|
|
143146.18 |
113392.53 |
|
| |
|
Part B - Geographic Segments |
| |
|
|
| |
|
Segments |
Domestic |
International |
Total |
Particulars |
Year Ended 31.03.07 |
Year Ended 31.03.06 |
Year Ended 31.03.07 |
Year Ended 31.03.06 |
Year Ended 31.03.07 |
Year Ended 31.03.06 |
|
