1. Fixed Assets and Depreciation

i) Premises and Other Fixed Assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises of purchase price, eligible borrowing costs and directly attributable costs of bringing the Asset to its working condition for the intended use less trade discounts and rebates. Subsequent expenditure incurred on assets put to use is capitalized only when it increases the future benefits from such assets or their functional capability. Land and Buildings, if revalued are stated at revalued amount. The appreciation on revaluation is credited to Revaluation Reserve and the depreciation provided thereon is deducted there from.

ii) Application Software is capitalized and clubbed under Intangible assets. Depreciation on Computers and Software forming an integral part of Computer hardware and on ATM is provided on Straight Line Method (SLM) at the rate of 33.33% as per the guidelines of RBI.

iii) Depreciation on Fixed Assets is provided for on the written down value method at the rates considered appropriate by the management as under:

iv) Depreciation on additions to assets made up to 30th September of the year is provided at full rate and on additions made thereafter, at half the rate.

v) Depreciation on premises is provided on composite cost, wherever the value of Land and Buildings is not separately identifiable.

vi) No depreciation is provided on assets sold / disposed off during the year.

vii) Depreciation on Leased assets and Leasehold improvements is recognized on a straight-line basis using rates determined with reference to the primary period of lease.

2. Impairment of Assets

The carrying costs of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying cost of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. After impairment, depreciation is provided on the revised carrying cost of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

3. Counter Cyclical Provisioning Buffer

The Bank has a policy of creation and utilization of Counter Cyclical Provisioning Buffer separately for Advances and Investments. The quantum of provision to be created is assessed at the end of each financial year. The Counter Cyclical Provisions are utilized only for contingencies under extra ordinary circumstances specified in the policy with prior permission of the RBI.

4. Transactions involving Foreign Exchange

11.1 Accounting for transactions involving foreign exchange is done in accordance with AS 11, (The Effects of Changes in Foreign Exchange Rates), issued by the ICAI. As stipulated in AS 11, the foreign currency operations of the Bank are classified as

a) Integral Operations and

b) Non Integral Operations.

All Overseas Branches, Offshore Banking Units, Overseas Subsidiaries are treated as Non Integral Operations and domestic operations in foreign exchange and Representative Offices are treated as Integral Operations.

a. Translation in respect of Integral Operations

i. Income and Expenditure items are recognized at the exchange rates prevailing on the date of the transaction.

ii. Foreign Currency Monetary and Non-Monetary Assets and Liabilities are translated at the closing spot rates notified by FEDAI at the end of each quarter.

iii. Contingent liabilities on account of guarantees, acceptances, endorsements and other obligations are stated at the exchange rates notified by FEDAI at the close of the year.

iv. The resulting exchange differences are recognized as income or expenses and are accounted through Profit and Loss Account.

v. Forward exchange contracts are recorded at the exchange rate prevailing on the date of commitment. Outstanding forward exchange contracts are revalued at the exchange rates notified by FEDAI for specified maturities and at interpolated rates for contracts of ‘in-between'''' maturities. The resultant gains or losses are recognized in the Profit and Loss account.

b. Translation in respect of Non Integral Operations

i. Assets and Liabilities (including contingent liabilities) are translated at the closing spot rates notified by FEDAI at the end of each quarter

ii. Foreign Exchange Spot and Forwards contingent liabilities outstanding as at the balance sheet date are translated at the closing spot and forward rates respectively notified by FEDAI and at interpolated rates for contracts of interim maturities.

iii. Income and Expense are translated at quarterly average rate notified by FEDAI at the end of each quarter.

iv. The resulting exchange differences are not recognized as income or expense for the period but accumulated in a separate account “Foreign Currency Translation Reserve” till the disposal of the net investment.

5. Employee Benefits

Retirement benefit in the form of Provident Fund is a defined contribution scheme. The contributions to the Provident Fund are charged to the Profit & Loss account for the year when the contributions are due. The Bank has no obligation other than the contribution payable to the Provident Fund.

Gratuity, Pension and provision towards Leave are defined benefit obligations, and are provided for on the basis of an actuarial valuation as per Accounting Standard-15 (Revised) “Employee Benefit” issued by the Institute of Chartered Accountants of India, made at the end of each financial year, based on the projected unit credit method. Actuarial gains/ losses are immediately taken to the Profit & Loss account. New Pension Scheme is applicable to employees who joined the Bank on or after 01.04.2010 is a defined contribution scheme. Bank pays fixed contribution at predetermined rate and the obligation of the Bank is limited to such fixed contribution. The contribution is charged to Profit & Loss account.

Employee benefits relating to employees employed at foreign offices are valued and accounted for as per the local laws/regulations of the respective countries.

6. Segment Reporting

The Bank recognizes the Business segment as the Primary reporting segment and Geographical segment as the Secondary reporting segment, in accordance with the RBI guidelines and in the compliances with the Accounting Standard-17 “Segment Reporting” issued by the Institute of Chartered Accountants of India.

Business segments are classified into

(a) Treasury Operations,

(b) Corporate and Wholesale Banking,

(c) Retail Banking Operations and

(d) Other Banking Operations.

7. Lease Transactions

Lease payments for Assets taken on operating lease are amortized over the lease term. The properties taken on lease/rental basis are renewable / cancellable at the option of the Bank. The Bank''''s liabilities in respect of disputes pertaining to additional rent / lease rent are recognized on settlement or on renewal.

8. Earnings per Share

Earnings per Share is calculated by dividing the net Profit or Loss (after tax) for the year attributable to the Equity share holders by the weighted average number of Equity shares outstanding during the year.

Diluted earnings per share reflect the potential dilution that could occur if contracts to issue Equity shares were exercised or converted during the year. Diluted earnings per Equity share is calculated by using the weighted average number of Equity shares and dilutive potential Equity shares outstanding as at the year-end.

9. Taxation

Provision for Tax is made for both current and deferred taxes. Current tax is provided on the taxable income using applicable tax rate and tax laws. Deferred Tax Assets and Deferred Tax Liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognized using the tax rates and the tax laws that have been enacted or substantively enacted till the date of the Balance Sheet. Deferred Tax Assets are not recognized unless there is ‘reasonable certainty'''' that sufficient future taxable income will be available against which such Deferred Tax Assets will be realized. In case of carry forward of unabsorbed depreciation and tax losses, Deferred Tax Assets are recognized only if there is “virtual certainty”.

10. Provisions, Contingent Liabilities and Contingent Assets

As per AS 29 (Provisions, Contingent Liabilities and Contingent Assets) issued by the ICAI, the Bank recognizes provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

11. Share Issue Expenses:

Share Issue expenses are charged to the Share Premium account.



The Bank is subjected to Basel III capital adequacy guidelines stipulated by RBI with effect from April 1, 2013. The guidelines provide a transition schedule for Basel III implementation till March 31, 2019. As per guidelines, the Tier I capital is made up of Common Equity Tier I (CET I) and Additional Tier I.

Basel III guidelines require the Bank to maintain minimum capital to Risk Weighted Assets ratio (CRAR) of 9% with minimum CET I of 5.5% and minimum Tier I CRAR OF 7% as at March 31, 2017.


14. During the reporting period (i.e. 2016-17) the Bank has raised Rs,. 3500 Crore by way of issuing Additional Tier - I (AT-1) Bonds and Rs,. 1750 Crore by way of issuing Tier - 2 Bonds.

15. During the reporting period (i.e. 2016-17) the Government of India vide its letter No. 7/38/2014-BOA dated 31st March 2017 infused Rs,. 541 Crore which has been controlled under Share Application Money , pending allotment.

16 REPO Transactions (In face value terms)

The following tables set forth for the periods indicated, the details of securities sold and purchased under repo and reverse repo transactions respectively including transactions under Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF).

NOTE: The balance depreciation provision as per the RBI Circular on Scheme for Sustainable Structuring of Stressed Assets dated June 13,2016 and Guidelines on Sale of Stressed Assets by Banks dated September 1,2016 is Rs,.111.50 crore.

** Unrated & unlisted securities disclosed includes only Ratings and Listing of securities required as per Master Circular Dated 01.7.2015 issued by RBI.

NOTE: RBI vide the circular RBI/2015-16/127 DBR.BPBC. No.31/21.04.018/2015-16 dated July 16,2015 advised that commencing April 1,2015 deposit placed with NABARD/SIDBI/NHB on account of shortfall in priority sector targets should be included under schedule 11-other assets under the subheads ‘Others'''' of the balance sheet. The exposure to RIDF of NABARD/ SIDBI/NHB as of 31/03/2017 aggregating to Rs,.8,693.68 crore is included under other assets. The same for the previous year ended 31/03/2016 was Rs,.8,076.88 crore.

17. Sale and transfers to/from HTM Category

The Bank has not made sales and transfers to/from HTM category during the financial year 2016-17 exceeding 5 per cent of the book value of investments held in HTM category at the beginning of the year. During the year 2016-17, the Bank had carried out one time transfer of securities to/from HTM category with the approval of Board of Directors aggregating Rs, 11,922.95 crore and Rs,.12,230.56 crore being face value and book value respectively. Bank in order to comply with the Reserve Bank of India circular no. RBI/2015-16/261 DBOD.No.BP BC.65/21.04.141/2015-16 dated December 10, 2015 directing banks to reduce its total SLR securities held in the HTM category in graduated manner, transferred securities from HTM to AFS Category aggregating Rs,. 998.87 crore (face value) and Rs,. 1,012.10 crore (book value). The Bank during the FY 2016-17 sold securities worth Rs,. 3,435.86 crore (book value) to Reserve Bank of India under pre announced OMO auctions.


19. Forward Rate Agreement/Interest Rate Swap


I. Interest rate swaps in Indian Rupees were undertaken for hedging Reciprocal Loan Arrangements.

II. The Bank has entered into Floating to Fixed or Fixed to Floating Interest Rate Swap transactions for trading during the year.

III. All underlying for hedge transactions are on accrual basis.

20.Exchange Traded Interest Rate Derivatives

21. Disclosures on Risk Exposures in Derivatives

a) Qualitative disclosure:

1. The Bank deals in two groups of derivative transactions within the framework of RBI guidelines.

i) Over the Counter Derivatives

ii) Exchange Traded Derivatives

The Bank deals in Forward Rate Agreement, Interest Rate Swaps, Cross Currency Swap and Currency Options in Over the Counter Derivatives group.

In Exchange Traded Derivatives Group, the Bank trades in Currency Futures and Interest Rate Futures. The Bank is Trading & clearing member with three Exchanges viz. National Stock Exchange (NSE), Bombay Stock Exchange (BSE) & Metropolitan Stock Exchange (MSEIL), on their Currency Derivative segment, as permitted by Reserve Bank of India. The Bank carries out proprietary trading in currency futures on these

exchanges. The Bank has set up the necessary infrastructure for Front, Mid and Back office operations. Daily Mark to Market (MTM) and Margin obligations are settled with the exchanges as per guidelines issued by the Regulators.

The Bank trades in Interest Rate Futures on National Stock Exchange. The bank has necessary infrastructure for Front, Mid and Back office operations in place. Daily Mark to Market (MTM) and Margin obligations are settled with the exchanges as per guidelines issued by the Regulators.

The Bank undertakes derivative transactions for proprietary trading/market making, hedging own balance sheet and for offering to customers, who use them for hedging their risks within the prevalent regulations. Proprietary trading/market making positions are taken in Rupee Interest Rate Swap, Currency Futures and Interest Rate Futures. While derivative instruments present immense opportunity for making a quantum leap in noninterest income and also for hedging market risk, it exposes the Bank to various risks. The Bank has adopted the following mechanism for managing different risks arising out of derivative transactions.

In terms of the structure, operations in the Treasury Branch are segregated into following three functional areas, which are provided with trained officers with necessary systems support and their responsibilities are clearly defined.

I) Front Office—Dealing Room. Ensures Compliance with trade origination requirements as per Bank''''s policy and RBI guidelines.

II) Mid-Office---Risk Management, Accounting Policies and Management

III) Back Office- Settlement, Reconciliation, Accounting.

Mid Office monitors transactions in the trading book and excesses, if any, are reported to Risk management Department for necessary action. Mid Office also measures the financial risk for transactions in the trading book on a daily basis, by way of Mark to Market. Daily Mark to Market position is reported to Risk Management Department, for onward reporting of the risk profile to the Directors'''' Committee on the Assets and Liability Management.

In case of corporate clients transactions are concluded only after the inherent credit exposures are quantified and approved in terms of approval process laid down in the Treasury Policy for customer appropriateness and suitability. The necessary documents like ISDA agreements are duly executed. The bank has adopted Current Exposure Method for monitoring credit exposures.

22) Treasury Policy of the Bank lays down the types of financial derivative instruments, scope of usages, and approval process as also the limits like the open position limits, deal size limits, stop loss limits and counterpart exposure limit for trading in approved instruments.

Various Risk Limits are set up and actual exposures are monitored vis-a-vis the limits.

These limits are set up taking in to account market volatility, business strategy and management experience. Risk limits are in place for risk parameters viz. PV01, stop loss, counterparty credit exposure. Actual positions are measured against these limits periodically and breaches if any are reported promptly. The Bank ensures that the Gross PV01 position arising out of all non option derivative contracts is within the 0.25% of net worth of the Bank.

23) The Bank also uses financial derivative transactions for hedging its own Balance Sheet Exposures. Treasury Policy of the Bank spells out approval process for hedging the exposures. The hedge transactions are monitored on a regular basis. The notional profit or loss calculated on Mark to Market basis, PV01 and VaR on these deals are reported to the Assets Liability Committee (ALCO) every month. Hedge effectiveness is the degree to which changes in the fair value or cash flows of the hedged items that are attributed to a hedged risk are offset by changes in the fair value or cash flows of the hedging instruments. This exercise is carried out periodically to ensure hedge effectiveness.

24) The hedged/un-hedged transactions are recorded separately. The hedged transactions are accounted for on accrual basis. All trading contracts are mark-to-market and resultant gross gain or loss is recorded in income statement.

In case of Option contracts, guidelines issued by FEDAI from time to time for recognition of income, premium, and discount are being followed.

To mitigate the credit risk, the Bank has policy in place to sanction limits to counterparty the Banks and Counterparty clients. The Bank adopts Current Exposure method for monitoring counterparty exposure periodically. While sanctioning derivative limit, the competent authority may stipulate condition of obtaining collaterals/margin as deemed appropriate. The derivative limit is reviewed periodically along with other credit limits.

The customer related derivative transactions are covered with counterparty banks, on back-to-back basis for identical amount and tenure and the bank does not carry any market risk.

- Individual borrower exposure limit is 15% of Capital Fund. However, 5% additional exposure taken with the approval of the Board as permitted by Reserve Bank of India.

- Individuals with additional 5% for Infrastructure Projects (20% of Capital Funds)

- Individuals for Oil Companies which have been issued Oil Bonds (which do not have SLR status) by Government of India is 25% of Capital funds.

- Group Exposure Limit - 40%

For Infrastructure, Group Exposure ceiling is 50%

- Additional exposures can be taken with the permission of the Board

Advances backed by Annuity under Build Operate Transfer (BOT) model in respect of Road/Highway Projects and toll collection rights have been considered secured as per RBI circular No. OD. BP BC. No. 83 / 08.12. 014 / 2012-13 dated 18 March 2013.




Certain items of income are recognized on realization basis as per Accounting Policy no.3.3 of Schedule 17 of Significant Accounting Policies which however, is not considered to be material.


28.fined Benefit Plans - Employee’s Pension plan and Gratuity plan:

The Bank has accounted for employee benefits as per Accounting Standards issued by the Institute of Chartered Accountants of India, as per actuarial valuation report for the year ended March 31, 2017.

29.fined Contribution Plan:

The Bank has Defined Contribution Pension Scheme (DCPS) applicable to all categories of officers and employees joining the Bank on or after April 1, 2010. The scheme is managed by National Pension Scheme (NPS) Trust under the aegis of the Pension Fund Regulatory and Development Authority. National Securities Depository Limited has been appointed as the Central Record Keeping Agency for the NPS. During F.Y 2016-17, the Bank has contributed Rs, 68.69 crore (Previous Year Rs, 58.52 crore) to NPS.


30 The Bank operates in four segments viz., Treasury, Retail, Corporate / Wholesale and Other Banking Operations. These segments have been identified in line with AS-17 on segment reporting after considering the nature and risk profile of the products and services, the target customer profiles, the organizational structure and the internal reporting system of the bank. The bank has disclosed the business segment as primary segment. The revenue and other parameters prescribed in AS-17 of foreign branch for the period are within the threshold limits as stipulated under AS-17 and hence the bank has only one reportable geographical segment.

31. Segment wise income, expenditure, Capital employed which are not directly allocable have been allocated to the reportable segments based on assumptions as considered appropriate by the management.

32 Previous year''''s/Twelve Month''''s figures have been regrouped/recanted wherever considered necessary to correspond with the current Twelve Month''''s classification/ presentation.


34.st of Related Parties

a) Subsidiaries

- Union Asset Management Co. Pvt. Ltd.

- Union Trustee Company Private Ltd.

- Union Bank of India (UK) Ltd.

b) Joint Venture

- Star Union Dai-ichi Life Insurance Co.

c) Associate

- Regional Rural Bank sponsored by the Parent Bank viz. Kashi Gomti Samyut Gramin Bank

Parties with whom transactions were entered into during the year

No disclosure is required in respect of related parties, which are “State controlled Enterprises” as per paragraph 9 of Accounting Standard (AS) 18. Further, in terms of paragraph 5 of AS 18, transactions in the nature of Banker - Customer relationship have not been disclosed including those with Key Management Personnel and relatives of Key Management Personnel.

# includes performance linked incentives of Rs, 0.06 crore and Rs, 0.09 crore paid to the Chairman & Managing Director and Executive Directors of the Bank respectively during the year ended March 2016. No performance linked incentives paid during the year ended March 2017.


Basic earnings per equity share are computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The diluted earnings per equity share is computed using the weighted average number of equity shares and weighted average number of diluted potential equity shares outstanding during the year.


Investments include Rs,.65 Crores (Previous year Rs,. 65 Crores) representing Bank''''s interest in Star Union Dai-ichi Life Insurance Co. it is jointly controlled entity.


In the opinion of the Management, there is no indication for Impairment during the year with regard to the asset to which Accounting Standards 28 applies.


Contingent liabilities referred to in Schedule-12 at S. No.(I) & (VI)(i) are dependent upon the outcome of court/arbitration/out of court settlement, the amount being called up, terms of contractual obligations, devolvement and raising of demand by parties concerned, disposal of appeals respectively.


In terms of guidelines issued by Reserve Bank of India with regard to UFCE, Bank has approved Policy on Unhedged Foreign Currency Exposure of Clients 2015-16. While framing the policy, bank has taken into consideration the exchange risks arising out of volatility in the forex market and accordingly has made suitable provisions to reduce the risks. Bank has also taken into consideration credit risks arising out of unhedged foreign currency exposure and accordingly Bank has put in place risk mitigation measures by incorporating additional loan pricing framework. Total provision made for exposures to entities with UFCE for the year ended March 2017 is Rs,.12.90 crores (Rs,.33.30crores as on 31.03.2016).


As on March 31,2017, Bank does not have any Special Purpose Vehicles (SPVs) sponsored for securitization transactions.


A. Qualitative Disclosure

LCR aims to ensure that a bank maintains an adequate level of unencumbered High Quality Liquid Assets (HQLAs) that can be converted into cash to meet its liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario specified by RBI.

LCR is the ratio of HQLA to Net Cash Outflow.


Net Cash Outflows over 30 days

Minimum requirement of LCR as stipulated by RBI is 80% for the calendar year 2017. LCR is applicable to Bank''''s domestic operations as well as overseas operations.


Liquid assets comprise of high quality assets that can be readily sold or used as collateral to obtain funds in a range of stress scenarios. They should be unencumbered i.e. without legal, regulatory or operational impediments. Assets are considered to

be high quality liquid assets if they can be easily and immediately converted into cash at little or no loss of value.

HQLA is categorized into two a) Level 1 Assets, and b) Level 2 Assets. Level 2 Assets are further sub divided into Level 2A Assets & Level 2B Assets based on Liquidity & Price Volatility.

Level 1

Levels 1 Asset mainly comprise Cash including excess CRR, Excess SLR, MSF (2% of NDTL) & FALLCR (9% of NDTL).

Level 2A Assets

15% haircut is applied on current market value of Level 2A asset. Level 2A assets mainly comprise Securities issued by PSEs (excluding bank/financial institution/ NBFC) with 20% risk weight. Corporate bonds, not issued by bank/financial institution/NBFC, rated AA- or above and Commercial Papers with rating AA- or above are also part of Level 2A assets.

Level 2B Assets

50% haircut is applied on current market value of Level 2B asset. Level 2B assets comprise not more than 15% of the total stock of HQLA. Level 2B assets mainly comprise Securities with risk weights higher than 20% but not higher than 50%, i.e., with credit rating not lower than BBB- and Equity Shares not issued by bank/ financial institution/NBFC and included in any index.

Net Cash Outflows

The total net cash outflows is defined as the total expected cash outflows minus total expected cash inflows for the subsequent 30 calendar days. Total expected cash outflows are calculated by multiplying the outstanding balances of various categories or types of liabilities and off-balance sheet commitments by the rates at which they are expected to run off or be drawn down. Total expected cash inflows are calculated by multiplying the outstanding balances of various categories of contractual receivables by the rates at which they are expected to flow in up to an aggregate cap of 75% of total expected cash outflows. In other words, Total net cash outflows over the next 30 days = Outflows - Min (inflows; 75% of outflows).

Brief about LCR of the Bank:

As per RBI''''s directions, Banks are required to calculate LCR on a daily basis from 1st January 2017. Bank has calculated LCR for all working days over the March 2017 quarter. The average of the daily observation of 66 data points is calculated. Banks has maintained LCR above the minimum requirement, prescribed by RBI of 80% for the calendar year 2017.

Annual LCR is the average of quarterly LCR of the Bank during FY 2016-17.


Bank is having sufficient High Quality Liquid Assets so as to maintain LCR above regulatory prescription. Level 1 assets are the main driver of HQLA, contributing around 84% in the Total HQLA of the Bank.

Outflows & Inflows:

Bank has diversified sources of funding of which retail deposits are the main source of funds. Bank''''s exposure is mainly in Indian Rupee. Outflows are dominated by Rupee term deposits from Non-financial corporate, as categorized by the RBI.

# The above mentioned information is based on the weighted average of LCR as on quarter ending June 2016, Sept 2016, December 2016 and March 2017. The information for quarter ending June 2016, Sept 2016, December 2016 is compiled from unaudited data of April 2016, May 2016, July 2016, August 2016, October 2016, November 2016 and audited data for the month of June 2016, September 2016 and December 2016. For quarter ending March 2017 LCR is compiled from unaudited data of 65 data points and audited data for 31st March 2017


a) Documentation formalities are yet to be completed in respect of three ( PY five) immovable properties held by the Bank at written down value of Rs, 31.17 crores ( PY Rs,. 36.43 crores.) in respect of which steps have already been initiated.

b) Land and Buildings revalued as on 31.3.1995 at fair market value as determined by an approved valuer, have further been revalued as on 30.11.2007 at fair market value by approved valuer. The resultant increase in value thereof on such revaluation amounting to Rs, 456.59 crores as on 31.3.1995 and Rs, 1290.68 crores as on 30.11.2007 have been credited to Revaluation Reserve and depreciation amounting to Rs, 56.56 crores (Rs, 34.62 crores) attributable thereto has been deducted there from. Certain assets were revalued during the year 2015-16 and as a result of which the revaluation reserve have increased by Rs,. 1213.10 crore for the year ended March 31, 2017


Confirmation/ Reconciliation of balance with foreign banks and other banks has been obtained/ carried out.

i. Adjustment of outstanding entries in Suspense Accounts, Sundry Deposits, Clearing Adjustments, Bank Reconciliation Statements and various inter-branch/office accounts is in progress on an ongoing basis.

ii. Pending final clearance of the (i) and (ii), the overall impact, if any, on the accounts, in the opinion of the management will not be significant.


The Reserve Bank of India (RBI) vide DBR.BPBC.No. 76/21.07.001/2015-16 dated 11th February 2016, has prescribed the roadmap for implementation of Indian Accounting Standards (Ind-AS) in the Banks and the Banks needs to disclose the strategy for Ind-AS implementation, including the progress made in this regard. The Bank accordingly, has appointed a consultant to assist in implementation of the Ind-AS. The Bank has also constituted a Steering Committee to oversee the progress made and the Audit Committee of the Board is being apprised of the same from time to time. In terms of the requirement stipulated vide said circular, the Bank has submitted proforma Ind-AS financial statements to the RBI for the half year ended 30th September 2016 on 30th November 2016.


Income Computation and Disclosure Standards (ICDS) as notified u/s 145(2) of the Income Tax, 1961 on 29th September 2016, are applicable for the financial year ended on 31st March 2017 and accordingly tax provisions and deferred tax for the financial year 2016-17 have been computed after considering its impact.

The Bank has recognized Deferred Tax Assets as on 31.03.2017 aggregating to Rs,.1878.61 crore (Rs,. 867.79 crore during PY 201516) based on reasonable certainty of availability of future taxable income against which such DTA can be realized.

During the year, as per the legal position as exist and also based on legal opinion, Bank has written back excess provisions of income tax aggregating to Rs, 644.01 Crore pertaining to the period up to which the appeals have been decided by Hon''''ble ITAT in favour of the Bank. References against the same filed by the Income Tax Department are pending before High Court.


i) Profit of Rs,. 493.51 crore (previous year Rs,.97.97 crores) on sale of “Held to Maturity” category securities have been taken to profit on loss account initially

ii) In respect of “Held to Maturity” category, as stated in Significant Accounting Policy No.4 (ii)(a), the excess of acquisition cost over face value of the securities amortized during the year amounted to Rs,.188.50 crore (previous year Rs,.134.48 crore).

iii) Total investments made in shares, convertible debentures and units of equity linked mutual funds / venture capital funds and also advances against shares aggregate to Rs,. 1,701.49 crore (previous year Rs, 1,432.61 crore).

46. During the current year, there are no material prior period item and change in accounting policy (as per AS 5) and no discontinued operations (as per AS 24).

47 The figures of the previous year have been regrouped /rearranged wherever considered necessary.

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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