Amount of Rs. 23.35 crore (Previous Year Rs. 26.79 crore) is recognized
as an expense towards Other Long term Employee Benefts included under
the head ''''Payments to and Provisions for Employees'''' in proft and loss
2. Accounting Standard 17: Segment Reporting
Part A: Business Segments
Pursuant to RBI guidelines, the Bank has re-classifed the business
segments in which the Bank operates into:
a. Corporate / Wholesale Banking
b. Retail Banking
c. Treasury and
d. Other Banking Operations
The classifcation has been done on the basis of following criteria:
Corporate / Wholesale Banking: All loan and advance accounts with
exposure of above Rs. 5 crore are classifed under wholesale / corporate
Retail: All loan and advance accounts which are not covered above will
be taken as Retail Banking.
Treasury: Entire investment portfolios are classifed under Treasury
Other Banking Operations: The Bank does not have Other Banking
Allocation of Income and Expenses and Assets / Liabilities:
a. Income and Expenses and Assets / Liabilities directly attributed to
particular segment are allocated to the relative segment.
b. Items that are not directly attributable to segments are allocated
to retail and wholesale segments in proportion to the business managed
/ ratio of number of employees / ratio of directly attributable income.
c. The Bank has certain common assets / liabilities and income /
expense that cannot be attributed to any particular segment and hence
the same are treated as unallocated.
b. Contingent liabilities
Liabilities at Item - I and VIII of Schedule 12 of the Balance Sheet
are dependent upon the outcome of court / arbitration / out of court
settlement, disposal of appeals, the amount being called up, terms of
contractual obligations, development and raising of demand by concerned
c. Claims against the Bank, not acknowledged as debts
Claims against the Bank not acknowledged as debt in respect of cases
subjudice is Rs.7.40 crore as on 31.03.2016.
d. Liability on account of outstanding forward exchange contracts
The bank enters into foreign exchange contracts, currency
options,forward rate agreements, currency swaps and interest rate swaps
with inter-Bank participants on its own account and for customers.
Forward exchange contracts are commitments to buy or sell foreign
currency at a future date at the contracted rate. Currency swaps are
commitments to exchange cash fows by way of interest/principal in one
currency against another, based on pre-determined rates. Interest rate
swaps are commitments to exchange fxed and foating interest rate cash
fows. The notional amounts that are recorded as Contingent Liabilities,
are typically amounts used as a benchmark for the calculation of the
interest component of the contracts.
e. Guarantees given on behalf of Constituents, acceptance,
endorsements and other obligations
As part of its commercial banking activities, the Bank issues
Documentary credits and guarantees on behalf of its customers
Documentary credits enhance the credit standing of the customers of the
Bank. Guarantees generally represent irrevocable assurances that the
Bank will make payment in the event of the customer failing to fulfll
his fnancial or performance obligations.
f . Other items for which the bank is contingently liable
The Bank is a party to various taxation matters in respect of which
appeals are pending. These are being contested by the Bank and not
provided for. Further, the Bank has made commitments to subscribe to
shares in the normal course of business.
3. Unamortised Pension and Gratuity Liabilities
In accordance with the provision of the RBI Circular number
DBOD.BP.80/21.04.018/2010-11, the bank had amortized the amount of
Rs.671.91 crores (being the additional liability on account of
reopening of pension option and enhancement in the limit of Gratuity
from Rs.3.00 Lakhs to Rs.10.00 Lakhs payable to its employees) over a
period of fve years commencing from the year ended 31.03.2011.
Accordingly, Rs.134.38 crores being the ffth and fnal installment of
amortization was charged to the Proft and Loss Account during the year
ended 31.03.2015. Current year: NIL.
4. Unhedged Foreign Currency Exposure
In terms of RBI circular No. RBI/2013-14/448
DBOD.No.BP.BC.85/21.06.200/2013-14 dated 15.01.2014 and circular No.
RBI/2013-14/620 DBOD.No.BP.BC.116/21.06.200/2013-14 dated 03/06/2014 on
requirement of incremental capital and provisions for Banks on account
of Unhedged Foreign Currency Exposure of borrowers, we have implemented
the provisions with efect from 01/04/2014. The total provisions comes
to Rs. 10.06 crore and the same has been provided for as on 31.03.2016.
5. Qualitative disclosure around LCR
a. Main drivers of LCR and evolution of contribution of inputs
The Liquidity Coverage Ratio (LCR) Standard 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 days time horizon under a signifcantly severe liquidity
stress scenario, by which time it is assumed that appropriate
corrective actions can be taken. The LCR position depends upon the
level of High Quality Liquid Assets (HQLA) and level of infows and
outfows in 30 days stress horizon computed as per the RBI guidelines in
b. Intra period changes
The intra period changes are mainly on account of changes in un
encumbered excess SLR positions.
c. The composition of High Quality Liquid Assets(HQLA)
Banks'''' High Quality Liquid Assets consists of the following
ii. Balance with RBI in excess of CRR requirement.
iii. Unencumbered portion of investments in Government securities in
excess of SLR requirement.
iv. Investments in Government securities held within the mandatory SLR
requirement, to the extent allowed by RBI under Marginal Standing
facility(MSF). v. Investment in Government Securities held up to 8%
of Net Demand and Time Liabilities(NDTL) permissible under Facility to
Avail Liquidity for Liquidity Coverage Ratio(FALLCR).
d. Concentration of funding
Banks'''' concentration from top 20 depositors is not signifcant and stood
at 7.86% of total deposits as on March 31, 2016.
e. Derivative exposure and potential collateral calls
Bank does not have derivative business except forward contracts.
Exposure to derivative contracts has been incorporated in the
calculation of LCR.
f. Currency Mismatch in LCR
Bank does not have overseas operations. Hence, currency mismatch is not
g. Centralisation of liquidity management
Banks'''' liquidity management and monitoring is centralized. Bank has a
Board adopted Asset Liability Management (ALM) policy in line with RBI
regulation and guidelines.
h. Other Infows and outfows in the LCR calculation that are not
Infows and outfows are comprehensively captured in LCR.
6. INTER OFFICE ACCOUNTS
Transactions in Branch Clearing General Account (BCGA) and Drafts
Account are being reconciled on an ongoing basis and steps for
elimination of outstanding entries are in progress. In the opinion of
the management, there are no signifcant items in the reconciliation to
have any material consequential efect.
7. Previous year''''s fgures have been regrouped / rearranged wherever