STATE BANK OF PATIALA
SCHEDULE - 18
NOTES ON ACCOUNTS FOR THE YEAR ENDED 31.3.2010
1.
Revaluation of Forex Assets & Liabilities is done as per Accounting Standard-11. A loss of
Rs.356,47,500.00 has been taken into the P & L account on account of revaluation of security
deposit in Dollar with CCIL. The unclaimed balances lying under NOSTRO Accounts are
valued at the rates prevailing on the dates of transfer to unclaimed balances account. An
amount of Rs.10,23,56,477.03 has been transferred to P & L account, to be appropriated to
the general reserve on account of outstanding credit entries in unclaimed account up to the
period March 2002 as per RBI guidelines dated May 11, 2009.
2.
During the year depreciation on investments of Rs.19.02 crores (Previous year Nil) has been
debited to “Provisions and Contingencies” consequent on transfer of investments under
“Available for Sale” category to “Held to Maturity” category as per RBI Circular dated
01.07.2008. However, no shifting was affected from HFT category to AFS category (previous
year depreciation on account of shifting Rs.0.46 crores) and from HTM to AFS category
during the year 2009-10. Further, a sum of Rs.69.01 crores has been provided as depreciation
in AFS/HFT category as on 31.03.2010 (Previous year Rs.101.13 crores).
3.
Registration formalities are pending for properties valued at Rs. 14.88 crore (Previous year
Rs.37.90 crores).
4.
Reconciliation/adjustment of various Inter-Office/Branch Accounts, Inter-Bank Accounts,
Nostro Accounts, unclaimed Nostro credits, Clearing Adjustment Account, Sundry Deposits
Account, ATM cash account etc., is in progress on an ongoing basis. The impact, in the
opinion of the management, of the un-reconciled entries in the above heads, if any, on the
financial statements would not be material.
Reconciliation of FCNR (B) / EEFC Deposits and Loans in the nature of
PCFC/EBR/FCTL/FCDL at the integrated treasury of the bank with that of Core
Accounting at Branches is in progress on an ongoing basis. The impact in the opinion of the
management on the financial statements would not be material.
5.
The disputed Income Tax demands of Rs.114.28 crore (Previous year Rs.231.75 crore) have
been paid to the Income Tax Department and are contested in appeals. The Management
does not consider it necessary to provide for these disputed income tax demands, based on
the various judicial decisions in favour of the Bank.
6.
During the year, the Bank has made provision for NPAs as per IRAC norms. Accordingly,
an additional provision of Rs.219.40 Crore (Previous year Rs. 73.39 crore) including excess
provision of Rs.97.20 crores to achieve Provisional Coverage ratio of 70% by September 2010
as per RBI guidelines has been made. As per approved policy Doubtful – II category has
been provided for 100% against minimum IRAC norm of 30 % and 10 % excess for D – I
category i.e. 30% against 20%. As such, total provision for NPA as on 31.03.2010 is Rs.523.89
crores (Previous year Rs.310.27 crore), including floating provision of Rs. 101.97 crore
(Previous year Rs.101.97 crore).
7.
Capital:
The capital Adequacy Ratio of the Bank works out to 12.45% as at 31st March 2010 (11.43% as at 31st March 2009).
The ratio, arrived at on the basis of RBI guidelines, comprises of:
(Rs. in crore)
BASEL-I
Particulars
i) CRAR (%)
BASEL-II
2009-2010
2008-2009
2009-2010
2008-2009
Current Year
Previous Year
Current Year
Previous Year
12.60 %
12.45
11.43 %
13.26
ii) CRAR Tier I Capital (%)
7.66
6.30 %
8.16 %
6.94 %
iii) CRAR Tier II Capital (%)
4.79
5.13 %
5.10 %
5.66 %
iv) Percentage of the shareholding
of the Government of India
NIL
NIL
NIL
NIL
v) Amount raised by issue of IPDI
300.00
NIL
300.00
NIL
1451.60
1451.60
Overall
vi) Amount raised by issue of
Upper Tier-II Instruments
1
1451.60
1451.60
8. Investments:
The details of Investments and movement of provisions towards depreciation on
investments of the Bank are given below:
Particulars
2009-2010
Current Year
(Rs. in crore)
2008-2009
Previous Year
(1) Value of Investments
(i)
Gross Value of Investments
(a) In India
(b) Outside India,
(ii) Provisions for Depreciation
(a) In India
(b) Outside India
(iii) Net Value of Investments
(a) In India
(b) Outside India.
18234.11
17130.33
18234.11
17130.33
0.00
0.00
69.01
101.13
69.01
101.13
0.00
0.00
18165.10
17029.20
18165.10
17029.20
0.00
0.00
101.13
98.52
(2) Movement of provisions held towards
depreciation
on
investments
(including
provision for NP Investments)
9.
(i)
Opening balance
(ii)
Add: Provisions made during the year
37.75
233.13
(iii)
Less: Write-off/ write-back of excess
provisions during the year
69.87
230.52
(iv)
Closing balance
69.01
101.13
Repo Transactions:
Maximum
outstanding
during the
year
Daily Average
outstanding
during the year
(Rs. in crore)
As on
March 31st
2010
NIL
NIL
NIL
Corporate Debt
NIL
NIL
Securities
Securities purchased under reverse repos
NIL
NIL
Govt. Securities
25.00
5400.00
1708.12
NIL
Corporate Debt
Securities
NIL
NIL
NIL
NIL
Minimum
outstanding
during the
year
Securities sold under repos
Govt. Securities
NIL
2
10
Non-SLR Investment Portfolio
10.1
The Issuer composition of Non SLR investments of the Bank are given below:
(Rs. in crore)
No. Issuer
Amount Extent of
Extent of
Extent of
Extent of
Private
‘Below
‘Unrated’ ‘Unlisted’
Placement
Investment Securities Securities
Grade’
Securities
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(i)
PSUs
19.68
13.75
2.25
(ii) FIs
120.80
120.80
71.07
4.80
(iii) Banks
346.55
333.62
14.40
(iv) Private Corporates
40.11
3.62
3.06
3.62
(v) Subsidiaries/ Joint
0.35
0.35
0.35
Ventures
(vi) Others*
255.95
6.09
2.57
2.57
(vii) Provision held
- 49.69
XXX
XXX
XXX
XXX
towards
depreciation
Total
733.75
*includes Govt. Securities (Oil Bonds) of Rs.9.86 crores
10.2
Non-performing Non-SLR investments
(Rs. in crore)
Particulars
Amount
Amount
2009-2010
2008-2009
Current Year Previous Year
Opening balance
5.38
5.38
Additions during the year
1.73
0.00
Reductions during the year
0.01
0.00
Closing balance
7.10
5.38
Total provisions held
7.10
5.38
The Bank’s investment in unlisted securities as on 31.03.10 is Rs.4.24 crores being 1.13%
(P.Y. 0.09 %) of total non-SLR securities amounting to Rs.375.97 Crores as against the
maximum stipulated limit of 10% of its total investment in Non-SLR securities.
11
11.1
Derivatives
Forward Rate Agreement/ Interest Rate Swap
(Rs. in crore)
Particulars
2009-2010
Current Year
NIL
2008-2009
Previous Year
NIL
i)
The notional principal of swap agreements
ii)
Losses which would be incurred if counterparties failed
to fulfill their obligations under the agreements
NIL
NIL
iii)
Collateral required by the bank upon entering into
swaps
NIL
NIL
iv)
Concentration of credit risk arising from the swaps
NIL
NIL
v)
The fair value of the swap book
NIL
NIL
Interest rate swaps are not being undertaken by the Bank.
3
11.2.
Exchange Traded Interest Rate Derivatives:
The Bank has not entered into any exchange traded interest rate derivatives transactions
during the year.
(Rs. in crores)
Sr.
No.
(i)
(ii)
(iii)
(iv)
Particulars
2009-10
2008-09
Notional principal amount of exchange traded interest
rate derivatives undertaken during the year (instrumentwise)
Notional principal amount of exchange traded interest
rate derivatives outstanding as on 31st March, 2010
(instrument-wise)
Notional principal amount of exchange traded interest
rate derivatives outstanding and not “highly effective”
(instrument-wise)
Mark-to-market value of exchange traded interest rate
derivatives outstanding and not “highly effective”
(instrument-wise)
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
11.3.
Disclosures on risk exposure in derivatives
a)
Qualitative Disclosure
The only derivatives traded by the Bank are in the Foreign Exchange market as forward
contracts. Forward contracts are being used to hedge/cover the exposure in foreign
exchange arising out of merchant transactions and trading positions.
To cover the risks arising out of above derivatives, various limits like AGL, IGL and Stop
loss have been prescribed in the Trading Policy of the bank which are monitored through
Gap Analysis and Value at Risk on daily basis.
Outstanding forward exchange contracts are revalued at the exchange rates for appropriate
maturity rates as announced by FEDAI at the year end exchange rates and the resultant gain
/ loss is taken to revenue.
b)
Quantitative Disclosures
Sr.
No.
(Rs. In Crore)
Particular
2009-10
Currency
derivatives
(i)
Interest
rate
derivatives
2008-09
Currency
derivatives
Interest
rate
derivatives
Derivatives (Notional Principal
Amount)
a) For hedging
20304.67 *
9565.37 *
b)for Trading
0.00
(ii)
Marked to Market Positions [1]
a) Asset (+)
b) Liability (-)
(iii)
Credit Exposure [2]
406.09 *
191.31 *
(iv)
Likely impact of one percentage
change in interest rate (100*PV01)
a) on hedging derivatives
N.A
N.A
b) on trading derivatives
N.A
N.A
(v)
Maximum and Minimum of
100*PV01 observed during the year
a) on hedging
N.A
N.A
b) on trading
N.A
N.A
* Credit exposure has been taken as 2% of outstanding interbank forward contracts of original
maturity of more than 14 days.
4
12
12.1.
Asset Quality
Non-Performing Assets
Particulars
(Rs. in crore)
2009-2010
2008-2009
Current Year
Previous Year
1.04%
0.60%
(1) Net NPAs to Net Advances (%)
(2) Movement of NPAs (Gross)
573.90
520.94
Additions (Fresh NPAs) during the year
1001.71
393.96
Sub-total (A)
1575.61
914.90
(i) Up-gradations
383.02
114.70
(ii) Recoveries (excluding recoveries made from
upgraded accounts)
181.13
166.21
(iii) Write-offs
4.85
60.09
Sub-totals (B)
569.00
341.00
1006.61
573.90
Gross NPAs* as on 1st April of particular year
(Opening Balance)
Less: -
Gross NPAs as on 31st March of following year
(closing balance) (A-B)
(3) Movement of Net NPAs
263.63
(a) Opening balance
216.99
705.81
(b) Additions during the year
301.09
486.72
(c) Reductions during the year
254.45
482.72
(d) Closing balance
263.63
(4) Movement of provisions for NPAs
(excluding provisions on standard assets)
310.27
(a) Opening balance
303.95
219.40
(b) Provisions made during the year
73.39
5.78
(c) Write-off/ write-back of excess provisions
60.09
0.00
(d) Floating Provision used
6.98
523.89
(e) Closing balance
310.27
Provisioning to Gross Non Performing Assets of the Bank as on 31st March 2010 is 63.78%
12.2. Particulars of Loan Assets Restructured during the year 2009-2010
A) Standard Advances
No. of Borrowers
Amount Outstanding
Sacrifice/Provision
(Diminution in the fair value)
B) Sub-Standard Advances
No. of Borrowers
Amount Outstanding
Sacrifice/Provision (Diminution in the
fair value
C) Doubtful Advances
No. of Borrowers
Amount Outstanding
Sacrifice/Provision (Diminution in the
fair value
Total: A+B+C
No. of Borrowers
Amount Outstanding
Sacrifice/Provision (Diminution in the
fair value
CDR
Mechanism
21
652.86
82.03
5
SME Debt
(Rs. in crore)
Others
209
121.57
0.87
3749
2493.24
38.95
GRAND
TOTAL
3979
3267.67
121.85
0
0.00
0.00
25
4.25
0.19
80
61.42
0.75
105
65.67
0.94
1
24.87
3.71
4
0.04
0.00
8
0.39
0.02
13
25.30
3.73
22
677.73
85.74
238
125.86
1.06
3837
2555.05
39.72
4097
3358.64
126.52
12.3 Detail of Financial Assets sold to Securitization/Reconstruction Company for Asset
Reconstruction:
(Rs. in crore)
Particulars
2009-2010
Current Year
2008-2009
Previous Year
(i)
No. of accounts
Nil
17
(ii)
Aggregate value (net of provisions) of accounts
sold to SC/RC
Nil
Nil
(iii) Aggregate consideration
Nil
13.00
(iv) Additional consideration realized in respect of
Nil
N.A.
Nil
13.00
accounts transferred in earlier years
(v)
Aggregate gain/ (loss) over net book value.
12.4 Details of non-performing financial assets purchased/sold
A.
Details of non-performing financial assets purchased
Particulars
1. (a) No. of Accounts Purchased during the year
(b) Aggregate Outstanding
2. (a) Of these, number of accounts restructured
during the year
(b) Aggregate Outstanding
Current year
Previous year
2009-10
2008-09
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
B. Detail of non- performing financial assets sold
Particulars
12.5
(Rs. in crore)
(Rs. In crore)
Current year
Previous year
2009-10
2008-09
1. No. of Accounts Sold
NIL
1.00
2. Aggregate Outstanding
NIL
1.81
3. Aggregate consideration received
NIL
1.81
Provisions on Standard Assets
(Rs. in crore)
Particulars
Provisions towards Standard Assets made
during the year
Cumulative Provision held for Standard Assets
6
2009-2010
Current year
2008-2009
Previous year
NIL
NIL
172.73
172.73
13
Movement of Floating Provision
(Rs. in crores)
Particulars
2009-2010
Current year
101.97
2008-2009
Previous year
108.95
The quantum of floating provision made during the
year
0.00
0.00
Purpose and amount of draw down made during the
year
0.00
6.98 *
101.97
101.97
Opening Balance
Closing balance
* For un-recoverable charges/interest etc. on Agriculture loan accounts covered under
Agriculture Debt Waiver & Relief scheme 2008 in terms of RBI Circular
No.DBOD.No.BP.BC.48 /21.04.048/2008-09 dated 22nd September, 2008 Prudential Norms
on utilization of Floating Provisions – Agricultural Debt Waiver and Debt Relief Scheme,
2008. Out of this Rs.6.98 crore, Rs. 2.78 crore has been written back being an excess
provision on Agricultural Loan Accounts.
14.
Business Ratios
(Rs. in lacs)
Particulars
2009-2010
Current year
8.42 % #
2008-2009
Previous year
9.28%
(i)
Interest Income as a percentage to Working Funds*
(ii)
Non-interest income as a percentage to Working
Funds*
0.94%
0.99%
(iii) Operating Profit as a percentage to Working
1.81%
1.51%
0.79%
0.83%
895.21
910.24
4.45
4.68
Funds*
(iv) Return on Assets**
(v)
(vi)
Business (Deposits plus advances) per employee***
Profit per employee
*
**
***
#
Working funds are the average of total assets as reported to RBI in Form X.
Assets are the average total assets for the year ended 31st March, 2010.
Deposits (other than inter-bank deposits) & Gross Advances are as on 31st March, 2010
After excluding amortization of premium on investment amounting to Rs. 103.93 crore
(previous year Rs.111.35 crore) during the year ended 31st March 2010.
15.
Asset Liability Management
(Rs. in crores)
Maturity pattern of Assets and Liabilities
Day
1
2 to
7
days
8
days
to 14
days
15 to
28
days
29 days
to 3
months
Over 3
months
& up
to 6
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
months
Deposits
98
1398
1080
1684
7067
14340
16836
15418
638
5993
64552
Advances
247
293
523
716
4625
4544
9940
10396
5925
9138
46347
Investment
215
47
273
262
762
411
337
2091
2408
11359
18165
Borrowing
0
0
0
0
0
131
107
191
0
0
429
Foreign
Currency
Assets
139
0
83
150
401
49
60
95
12
37
1026
Foreign
Currency
Liabilities
0
0
35
126
274
230
246
110
10
0
1031
7
16.
Lending to Sensitive Sector
The Bank has lending to sectors which are sensitive to asset price fluctuations. These sensitive
sectors are real estate and capital markets.
16.1.
Exposure to Real Estate Sector
(a) Direct exposure
(Rs. in Lacs)
2008-2009
Previous Year
2009-2010
Current Year
(i) Residential Mortgages –
Lendings fully secured by mortgages on residential
property that is or will be occupied by the borrower or that
is rented; (Individual housing loans up to Rs.20 lakh may
be shown separately)
a. Individual housing loans up to Rs. 20 lakh
b. Others
(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
(iii) Investments in Mortgage Backed Securities (MBS) and other
securitized exposures –
a. Residential,
b. Commercial Real Estate.
b) Indirect Exposure
Fund based and non-fund based exposures on National
Housing Bank (NHB) and Housing Finance Companies (HFCs).
Total Exposure to Real Estate sector
280018
64288
249872
43913
94885
112521
0.00
0.00
0.00
0.00
59585
498776
95231
501537
16.2. Exposure to Capital Market
S.
no
1
2
3
4
5
6
PARTICULARS
Direct investment in equity shares, convertible bonds,
convertible debentures and units of equity oriented mutual
funds the corpus of which is not exclusively invested in
corporate debt.
Advances against shares/ bonds/debentures or other
securities or on clean basis to individuals for investment in
shares (including IPOs/ ESOPs), convertible bonds,
convertible debentures and units of equity- oriented mutual
funds.
Advances for any other purposes where shares or convertible
bonds or convertible debentures or units of equity oriented
mutual funds are taken as primary security.
Advances for any other purposes to the extent secured by the
collateral security of shares or convertible bonds or
convertible debentures or units of equity oriented mutual
funds i.e. where the primary security other than shares
/convertible bonds/convertible debentures/ units of equity
oriented mutual funds does not fully cover the advances.
Secured and unsecured advances to stockbrokers and
guarantees issued on behalf of stockbrokers and market
makers
Loans sanctioned to corporate against the security of
shares/bonds/debentures or other securities on clean basis
for meeting promoter’s contribution to the equity of new
companies in anticipation of raising resources.
8
(Rs. in lacs)
2009-2010
2008-2009
Current Year
Previous Year
19413
22831
0
10
0
0
0
0
18758
17663
0
0
7
Bridge loans to companies against expected equity flows/
issues
Underwriting commitments taken up by the banks in respect
of primary issues of shares or convertible bonds or convertible
debentures or units of equity oriented mutual funds
Financing to stockbrokers for margin trading
All exposure to Venture Capital Funds (both registered and
unregistered)
TOTAL EXPOSURE TO CAPITAL MARKET
8
9
10
17.
Risk Category wise Country Exposure
Risk Category*
Insignificant
Low
Moderate
High
Very High
Restricted
Off-credit
Total
0
0
0
0
0
352
0
0
38523
40504
(Amount in Crores)
Exposure
(net) as at 31st
March 2010
Current Year
Provision held
as at 31st March
2010
Current Year
Exposure (net)
as at 31st March
2009
Previous Year
Provision
held as 31st
March 2009
Previous Year
780.94
390.52
21.24
1.52
Nil
Nil
Nil
1194.22
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
646.50
401.29
15.01
3.03
0.00
0.00
0.00
1065.83
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
The net funded exposure of the Bank in respect of Foreign Exchange transactions with each country
was within 1% of the total assets of the Bank and, hence, no provision and disclosure is required to
be made as per RBI guidelines. The Bank is not undertaking FRA’s & Interest Rate Swaps.
Disclosure in respect of exchange traded interest rate derivatives is NIL.
18.
Details of Single Borrower Limit (SGL), Group Borrower Limit (GBL) exceeded by the
bank.
a) Accounts exceeding prudential limit of 15% of Bank’s capital funds (Individual
Accounts)
In the following individual accounts, credit exposure exceeded the existing prudential
norms of 15% of Bank’s capital funds.
(Rs. In crores)
Sr.
Name of the Borrower
Limit as on %age of Capital Outstanding as
No.
31.03.2010
Fund
on 31.03.2010
1.
State Trading Corp.
1000
18.91%
660.28
Consent Letter for disclosing company’s name in Bank’s balance sheet has been obtained
from the company.
b) Accounts exceeding prudential limit of 40% of Bank’s capital funds (Group Accounts)
No group borrower account exceeded prudential norms of 40% of Bank’s capital funds as on
31.03.2010.
19.
Unsecured Advances
(Rs. In lacs)
Sr.
Particular
Amount
No.
1
Loans & Advances against the security of any rights,
3675.26
licences, authorisations, etc. charged to the Bank as
collateral in respect of projects (including infrastructure
projects) financed by the branch as these type of securities
are not to be reckoned as tangible security.)
2
Value of all intangibles securities such as charge over the
4800.00
rights, licences, authority, etc. in respect of loans &
advances mentioned against code no. 300364.
9
20.
Miscellaneous
20.1
Amount of Provisions & Contingencies made during the year;
(Rs. in Lacs)
2009-2010
2008-2009
Current Year Previous Year
Particulars
Depreciation for value of Securities/Investments
- 1310
7474
Provision for NPAs
21940
7349
0.00
0.00
33077
35347
0.00
0.00
- 1433
-11266
0.00
450
Provision against Contingent Liabilities
0.00
0.00
Provision for contingency
0.00
0.00
Provision for Fraud Cases
229
210
Provision for Bonus
0.00
0.00
Provision for CDR cases
5566
1848
Provision for Non-CDR cases
2131
1489
Provision for un-reconciled entries
0.00
0.00
*15482
5624
Total Provision & Contingencies
75682
48525
Amortization of Premium on Investment
10393
11135
Provision for Standard Assets
Provision for Taxation (estimated)
i)
Current
ii) Write back/excess available
iii) Deferred Tax Liability/Assets
iv) Fringe Benefit Tax
Miscellaneous Provision*
* Misc. Provisions includes Provision for Wage Revision, Outstanding balance in
Revaluation of Forex Assets & Liabilities Account, Provision for un-recovered
interest for previous year (NPA) and other Misc. Provision.
20.2.
Disclosure of Penalties imposed by RBI
No penalties have been imposed by RBI on the Bank during the year.
21
Information in terms of Accounting Standards
21.1.
Prior period items, in terms of Accounting Standard 5 issued by the Institute of Chartered
Accountants of India read with RBI guidelines are not being material, have not been
separately disclosed. However, the same will be quantified at the time of finalization of Tax
Audit Report.
10
21.2.
Revenue is recognized as per Accounting Standard 9 except in following cases.
1. Non-performing Assets where income is recognized on realization as per prudential
norms prescribed by RBI
2. Insurance claims & Locker Rent
3. Dividend income on Mutual Funds is accounted for on receipt basis.
4. Income on Cross selling products.
5. Interest on Overdue Fixed Deposits
21.3. Employee Benefits
The bank has adopted AS-15 (Revised) “Employee Benefits,” issued by Institute of Chartered
Accountants of India, effective from 01.04.2007.
21.3.1 Defined Benefit Pension Plan & Gratuity
The following table sets out the status of the defined benefit Pension Plan, Gratuity Plan and
Resettlement as required under AS 15, as on 31st March, 2010
(Rs. in thousands)
Particulars
Pension
Plan
Gratuity
Leave
and
other
benefits
2009-2010
Current Year
A
Pension
Plan
Gratuity
Leave
and
other
benefits
2008-2009
Previous Year
Change in present value of
defined benefit obligation
7142000
2149700
1294700
6451800
1972500
1294700
Current Service Cost
224100
118200
41700
184100
99500
33100
c
Interest Cost
575200
176100
-
520000
160000
0.00
d
Actuarial Losses (gain)
500800
(132500)
-
283100
33100
0.00
e
Past Service Cost (Nonvested Benefit)
0.00
0.00
-
0.00
0.00
0.00
f
Past Service Cost (Vested
Benefit)
0.00
0.00
-
0.00
0.00
0.00
g
Benefits Paid
- 352500
- 132100
-
- 297000
- 115400
0.00
h
Closing Defined Benefit
obligation
8089600
2179400
1336400
7142000
2149700
1327800
a
Opening defined benefit
obligation
b
11
Particulars
Pension
Plan
Gratuity
Leave
and
other
benefits
Pension
Plan
2009-2010
Current Year
B
Change in Plan Asset
a
Opening fair value of
Plan Assets
b
(Rs. in thousands)
Gratuity
Leave and
other
benefits
2008-2009
Previous Year
4954000
1579200
-
4169900
1293500
0.00
Expected Return on Plan
Assets
452600
128800
-
378900
122200
0.00
c
Contribution by
employer
879700
96600
-
714600
292300
0.00
d
Benefits Paid
-352500
-132100
-
- 297000
- 115400
0.00
e
Actuarial gain (Losses)
(32200)
5400
-
- 12400
- 13400
0.00
f
Closing fair value of Plan
Assets
5901600
1677900
-
4954000
1579200
0.00
C
Reconciliation of
present value of the
obligation and fair
value of the plan assets
a
Present value of funded
obligation
8089600
2179400
1336400
7142000
2149700
1327800
b
Fair value of plan asset
5901600
1677900
-
4954000
1579200
0.00
c
Deficit/ (Surplus) (a-b)
2188000
501500
-
2188000
570500
0.00
d
Unrecognized Past
Service Cost
0.00
0.00
-
0.00
0.00
0.00
e
Amount not recognized
as assets because of limit
in paragraph 59(b) of AS
15
0.00
0.00
-
0.00
0.00
0.00
f
Net Liability / (Asset)
2188000
501500
-
2188000
570500
0.00
(c-d-e)
D
Experience adjustment
on plan assets
0.00
0.00
-
0.00
0.00
0.00
E
Experience adjustment
on plan liabilities.
0.00
0.00
-
0.00
0.00
0.00
12
Particulars
Pension
Plan
Gratuity
Leave
and
other
benefits
Pension
Plan
2009-2010
Current Year
(Rs. in thousands)
Gratuity
Leave and
other
benefits
2008-2009
Previous Year
F
Net Cost Recognized in
Profit & Loss Account
a
Current Service Cost
224100
118200
-
184100
99500
0.00
b
Interest Cost
575200
176100
-
520000
160000
0.00
c
Expected Return on Plan
Assets
-452600
-128800
-
- 378900
- 122200
0.00
d
Net Actuarial
Losses(Gain) recognized
during the year
533000
(137900)
-
295400
46500
0.00
e
Past Service Cost (Non
Vested Benefit)
recognized
0.00
0.00
-
0.00
0.00
0.00
f
Past Service Cost (Vested
Benefit) recognized
0.00
0.00
-
0.00
0.00
0.00
g
Total Cost of defined
benefit plan included in
Schedule 16 (Payment to
and provisions for
Employees
879700
27600
-
620600
183800
0.00
G
Reconciliation
of
expected return and
actual return on Plan
Assets (AS 15 para 120)
a
Expected Return on Plan
Assets up to year end
452600
128800
-
378900
122200
0.00
b
Actuarial gain / (Loss)
on Plan Assets
(32200)
5400
-
- 12400
- 13400
0.00
c
Actual Return on Plan
Assets year end
420400
134200
-
366500
108800
0.00
13
Particulars
Pension
Plan
Gratuity
Leave
and
other
benefits
Pension
Plan
2009-2010
Current Year
H
Reconciliation
of
Opening and closing
Net Liability recognized
in Balance Sheet
a
Opening Net Liability
b
(Rs. in thousands)
Gratuity
Leave and
other
benefits
2008-2009
Previous Year
2188000
570500
1327800
2282000
679000
1294700
Expenses recognized in
P&L A/c
879700
27600
41700
620600
183800
33100
c
Employer’s Contribution
879700
96600
-
714600
292300
0.00
d
Closing Net Liability /
(Asset) recognized in
Balance Sheet
2188000
501500
1336400
2188000
570500
1327800
I
Expected contribution in
the next financial year
-
198600
-
203700
123800
0.00
J Particulars of Investment under Plan Assets of Gratuity Fund, pension Fund and any other
Plan as on 31.03.2010:
(Rs. in thousands)
Category
Gratuity Fund
Pension Fund Plan
of Assets
Amount
% of
Plan
Assets
2009-2010
Current Year
Amount
% of
Plan
Assets
2008-2009
Previous Year
Amount
% of
Plan
Assets
2009-2010
Current Year
1873700
33.09%
Central
Govt.
Securities
646500
39.71%
544000
35.10%
State
Govt.
Securities
287700
17.67%
287700
18.57%
868900
PSU
Bonds
180000
11.05%
180000
11.62%
Other
Bonds
0.00
0.00%
0.00
FDR/TD
R of
Banks
381000
23.40%
Special
Deposits
0.00
0.0%
Amount
% of
Plan
Assets
2008-2009
Previous Year
1314700
27.68%
15.34%
833900
17.55%
740000
13.07%
669200
14.08%
0.00
30000
0.52%
30000
0.63%
325000
20.97%
766700
13.54%
689700
14.52%
0.00
0.00
835600
14.75%
835600
17.59%
.
14
(Rs. in thousands)
Category of
Assets
Gratuity Fund
Amount
% of Plan
Assets
Amount
Pension Fund Plan
% of Plan
Assets
2009-2010
Current Year
2008-2009
Previous Year
Insurance
Schemes
70000
4.30%
20000
1.29%
Bank a/c
53000
3.25%
192900
Others
(Mutual
Fund etc.)
10100
0.62%
1628300
100%
Total
Amount
% of Plan
Assets
Amount
2009-2010
Current Year
0.00
0.00%
2008-2009
Previous Year
0.00
12.45%
491100
8.68%
377500
7.95%
0.00
0.00
57100
1.01%
0.00
0.00
1549600
100%
5663100
100%
4750600
100%
56200
38200
244500
213000
Less advance
provision /
unamortized
discount /
premium
6600
8600
6000
9600
Grand Total
1677900
1579200
5901600
4954000
Interest
Accrued
% of Plan
Assets
0.00
There is no investment under Plan Assets of ‘Any Other Plan’ as on 31st March, 2010 and as on
31st March, 2009
K. Out of the above following investment are made in State Bank Group and its subsidiaries/Joint
Ventures:
(Rs. in Thousands)
Category of
Assets
Gratuity Fund
Amount
% of Plan
Assets
2009-2010
Current Year
Amount
Pension Fund Plan
% of Plan
Assets
2008-2009
Previous Year
Amount
% of Plan
Assets
Amount
% of Plan
Assets
Bonds
40000
2.45%
40000
2.58%
2009-2010
Current Year
495000
8.74%
2008-2009
Previous Year
FDR/TDR
of Banks
381000
23.40%
325000
20.97%
766700
13.54%
689700
14.52%
Insurance
Scheme
70000
4.30%
20000
1.29%
0.00
0.00
0.00
0.00
Other
(Mutual
Fund, Gilt
Fund etc.)
10100
0.62%
0.00
0.00
93122
1.64%
37022
0.78%
Total
501100
30.77%
385000
24.84%
1354822
23.92%
1171722
24.66%
445000
9.36%
There is no investment under Plan Assets of ‘Any Other Plan’ as on 31st March, 2010 and as on
31st March, 2009
2.1 All the actuarial gains and losses have been fully recognized in the statement of Profit and Loss
(AS 15 para 120 clause .a)
2.2 Brief Description of the Plan (AS 15 para 120 clause .b) The Funds are managed by Trusts
formed for Pension and Gratuity as per respective regulations.
15
L. Principal actuarial assumptions
Particulars
Gratuity Plan
Pension Plan
20092010
Current
Year
8.50%
2008-2009
Previous
Year
Expected Rate of
Return on Plan Assets
Any other Plan
2008-2009
Previous
Year
8%
20092010
Current
Year
8.5%
8%
8%
Salary escalation
5%
Any other material
assumption
Discount Rate
Total
8%
20092010
Current
Year
0.00
20082009
Previous
Year
0.00
8%
8%
0.00
0.00
4%
5%
4%
0.00
0.00
2%
2%
2%
0.00
0.00
0.00
0.00
0.00
0.00
II Particulars about expense recognized in P&L a/c in respect of defined contribution plans
(Rs. in Thousands)
Name of the defined
Amount debited to P&L
Amount debited to P&L
contribution Plan
in 2009-2010
in 2008-2009
Bank’s contribution towards PF
Current Year
Previous Year
91482
91723
III Particulars of contribution to Long Term Employee Benefits
Name of the long term employee
benefits
Amount debited to P&L
in 2009-2010
(Rs. in Thousands)
Amount debited to P&L
in 2008-2009
Current Year
Previous Year
10800
6900
3500
1900
18600
879700
27600
21100
4500
1700
400
5400
617700
183800
Leave
LTC
Resettlement
Silver Jubilee
Sick Leave
Pension
Gratuity
21.4
Accounting Standard 17 – Segment Reporting
Part A: Business segments
SEGMENT INFORMATION
Particulars
(Rs. in crore)
2009-2010 **
Current Year
Previous Year
2008-2009 **
1455.35
3103.33
3306.31
69.21
7934.20
1284.50
6649.70
1440.12
3014.78
3341.93
19.16
7815.99
1380.30
6435.69
1. Segment Revenue
a) Treasury Operations
b) Corporate Banking Operations
c) Retail Banking Operations
d) Other banking Operations
TOTAL
Less: Inter- Segment revenue
Net Income from Operations
16
(Rs. in crore)
2009-2010 **
2008-2009**
Current Year
Previous Year
Particulars
2. Segments Results (Net of Provisions)
a) Treasury Operations
b) Corporate Banking Operations
c) Retail Banking Operations
d) Other banking Operations
TOTAL
i) Unallocated expenditure (net off)
ii) Unallocated Income
Total Profit before Tax
171.44
403.25
429.63
- 80.00
486.01
538.74
0.00
0.00
1004.32
136.99
0.00
867.33
944.75
167.90
0.00
776.85
316.44
245.31
0.00
0.00
550.89
531.54
a) Treasury Operations
b) Corporate Banking Operations
c) Retail Banking Operations
d) Un-allocated
Total Segment Assets
4. Segment Liabilities
23771.36
29858.68
22058.00
388.93
76076.97
22210.81
28129.52
18842.43
482.68
69665.44
a) Treasury Operations
b) Corporate Banking Operations
c) Retail Banking Operations
d) Un-allocated
Total Segment Liabilities
500.79
39858.90
29468.57
2501.60
72329.86
261.73
38367.87
25700.55
2201.60
66531.75
Income Tax
Extra Ordinary Profit/ Loss
Net Profit/ Loss
3. Segment Assets
** Expenses, assets and liabilities wherever directly related to segment have been
accordingly allocated. Expenses not directly attributable to specific segment have been
allocated proportionate to the average funds deployed in the respective segment. The cost
of funds charged for the Treasury operations include interest cost (on average basis) and
operating cost (based on the business of deposits, advances and other business). Segment
assets and liabilities include inter-segment adjustments.
Part B: Geographic segments
Domestic
2009-10
Current
Year
Revenue
Assets
2008-09
(Rs. in crore)
Total
International
2009-10
Previous Current
Year
Year
2008-09
2009-10
2008-09
Previous
Year
Current
Year
Previous
Year
6649.70
6435.69
0.00
0.00
6649.70
6435.69
76076.97
69665.44
0.00
0.00
76078.44
69665.44
21.5
a)
Accounting Standard 18 – Related Party disclosures
Subsidiaries: Nil
b)
Associates: Malwa Gramin Bank
The transactions with associate have not been disclosed in view of para 9 of AS-18 (Related
Party Disclosure) which exempts State Controlled Enterprises from making any disclosure
pertaining to its transactions with other related parties which are also State Controlled
Enterprises.
17
c)
Key management Personnel
As the Bank and the other related parties are State controlled enterprises, disclosure under
Accounting Standard 18 issued by the Institute of Chartered Accountants of India read with
RBI guidelines, to the extent applicable, is given below:
Sr. No.
Particulars
I
Associates
II
Key Management Personnel
Period
Name
Malwa Gramin Bank
Current year
2009-10
Previous year
2008-09
(01.04.2009 to
31.03.2010)
(01.03.2009 to
31.03.2009)
(01.04.2008 to
28.02.2009)
a) Name
Shri Ashok
Nayar
Shri Ashok
Nayar
Shri. A. C.
Varma
b) Designation
Managing
Director
Managing
Director
Managing
Director
c) Remuneration paid
(Consolidated Salary &
Allowances)
Rs.7.60 lacs
Rs.0.59 lacs
Rs.17.90 lacs
d) Borrowings as on 31st March
Rs.3.77 lacs
Rs.4.08 lacs
Housing Loan
at public rate
jointly with
Abhinav Varma
(Son) as joint
borrower.
Rs. 27.39 lacs
e) Borrowings to Relatives as on
III
21.6.
31st March & Maximum during
the year
0.00
0.00
0.00
Bank’s contribution towards the
Provident Fund
Rs.0.45 lacs
Rs.0.04 lacs
Rs.0.42 lacs
Accounting Standard 20 - Earning Per Share
Information on earning per share as required by AS-20 is as underParticulars
Net profit after Tax
Number of shares
EPS (in Rs) (weighted Average)
Face value (per share in Rs)
18
(Rs. in crores)
Current year
2009-10
Previous year
2008-09
550.89
531.54
2,94,75,000
2,74,75,000
200.47
193
100
100
21.7
Accounting Standard 21, Consolidated Financial Statements
Since the Bank has no subsidiary, no disclosure is required as per AS-21.
21.8
Accounting Standard 22 – Accounting for Taxes on Income
The Bank has recognized Deferred Tax Assets/Liability (DTA/DTL) in accordance with
Accounting Standard 22 issued by the Institute of Chartered Accountants of India. The tax
impact on net DTA stood at Rs. 234.41 crore as on 31.03.2010 as against Rs.220.08 crore as
on 31.03.2009, major components whereof are as under.
Deferred tax Assets (DTA) & Deferred tax Liabilities (DTL)
(Rs. in crores)
Components
As on 31.03.2009
During the year
As on 31.03.2010
2009-2010
Deferred Tax Asset
Provision for NPAs
95.53
--
95.53
Provision for Standard Assets
58.71
--
58.71
Provision for employee benefits
45.13
0.30
45.43
Wage Revision
17.33
33.74
51.07
Provision for frauds
3.04
0.78
3.82
Provision for CDR cases
9.95
18.27
28.22
Provision for non-CDR cases
6.00
7.22
13.22
Provision for Contingencies
6.80
- 6.80
0.00
other
0.10
-
0.10
242.59
53.51
296.10
Depreciation / Amortisation on
Investments
25.25
35.32
60.57
Depreciation on Fixed Assets
- 2.74
3.86
1.12
Total Deferred Tax Liabilities
22.51
39.18
61.69
Net Deferred Tax Asset
220.08
14.33
234.41
Total Deferred Tax Assets
Deferred Tax Liabilities
22. Disclosure of Complaints
A.
Customer Complaints
Current year
2009-10
Previous
year
2008-09
(a)
No. of complaints pending at the beginning of the year
08
07
(b)
No. of complaints received during the year
719
407
(c )
No. of complaints redressed during the year
661
406
(d)
No. of complaints pending at the end of the year
66
08
19
B. Award passed by the Banking Ombudsman
(a)
(b)
(c)
(d)
No. of unimplemented Awards at the beginning of
the year
No. of Awards passed by the Banking Ombudsmen
during the year
No. of Awards implemented during the year
No. of unimplemented Awards at the end of the year
Current year
2009-10
Previous year
2008-09
Nil
Nil
01
02
01
Nil
02
Nil
23. Additional Disclosures
23.1 No impairment of any of the fixed assets of the Bank has to be done in the opinion of
Management in terms of AS 28 issued by the Institute of Chartered Accountants of India.
23.2 The value of investments under three categories viz., Held for Trading, Available for Sale
and Held to Maturity are as under(Rs. In crore)
Particulars
Government
Securities
Other Approved
Securities.
Shares
Debentures
&
Bonds
Subsidiaries
&
JVs
Others
SUB TOTAL
Reverse Repo
Grand Total
23.3
23.4
23.5
HFT
0.00
As on 31.03.2010
AFS
HTM
Total
17396.37
2226.83
15169.54
HFT
0.00
As on 31.03.2009
AFS
HTM
6281.46 10278.11
Total
16559.57
0.00
17.98
46.19
64.17
0.00
30.06
63.61
93.67
0.57
0.00
69.17
178.68
0.00
35.37
69.74
214.05
0.00
0.00
85.80
190.82
0.00
42.84
85.80
233.66
0.00
0.00
0.35
0.35
0.00
0.00
0.35
0.35
0.00
0.57
0.00
0.57
485.91
2978.57
0.00
2978.57
3.52
15254.97
0.00
15254.97
489.43
18234.11
0.00
18234.11
0.00
0.00
0.00
0.00
157.28
6745.42
0.00
6745.42
0.00
10384.91
0.00
10384.91
157.28
17130.33
0.00
17130.33
Disclosure in respect of provisions against Contingent Liability in compliance to AS 29
issued by the Institute of Chartered Accountants of India is as under: Details of Balance in Provisions for Contingent Liability:
(Rs. in crores)
PARTICULARS
Current year
Previous year
2009-10
2008-09
NIL
NIL
Opening Balance
Additions during the year
0.00
0.00
Amounts used during the year
0.00
0.00
Unused amount reversed during the year
0.00
0.00
Closing Balance
NIL
NIL
For restructured / rescheduled Assets, provisions are made in accordance with the
guidelines issued by RBI, which requires that reduction in rate of interest / re-schedulement
of the repayment will result in diminution in the fair value of the advance. Accordingly,
bank has calculated diminution in the fair value of advance as a difference of “present
value” of future cash flows (principal and interest) based on current BPLR plus Term
Premium plus Risk Premium (applicable rate) and the rate applied upon restructuring. In
respect of re-structured / re-scheduled assets/advances for less than Rs. One crore, lump
sum provision @5% has been made for diminushing in the fair value of the advances.
Pending Wage Agreement
The Eighth Bipartite Settlement entered into by the Indian Banks’ Association on behalf of
the member banks with the All India Unions of Workmen expired on 31st October 2007.
Pending the execution of a new agreement a provision of Rs.99.22 Crore has been made
during the year in the accounts for Bank’s estimated liability in respect of wage revision to
be effective from 01-11-2007. The total provision held on account of wage revision as on 31st
March, 2010 is Rs. 150.22 crores.
20
23.6
I. Concentration of Deposits, Advances, Exposure and NPAs
Concentration of Deposits
(Amount in Rupees Crores)
Total Deposits of Twenty largest depositors
6655.28
Percentage of Deposits of Twenty largest depositors to
Total Deposits of the bank
10.31%
Concentration of Advances
(Amount in Rupees Crores)
Total Advances to Twenty largest borrowers
13880.41
Percentage of Advances to Twenty largest borrowers to
Total Advances of the bank
20.11%
Concentration of Exposures
(Amount in Rupees Crores)
Total Exposure to Twenty largest borrowers/customers
13925.56
Percentage
of
Exposures
to
Twenty
largest
borrowers/customers to Total Exposure of the bank on
borrowers/customers
20.10%
Concentration of NPAs
(Amount in Rupees Crores)
Total Exposure to top four NPA accounts
200.37
II. Sector-wise NPAs
Sr. No.
Sector
Percentage of NPAs to Total
Advances in that sector
1
Agriculture & Allied activities
1.86
2
Industry (Micro & Small, Medium and Large)
1.88
3
Services
2.32
4
Personal Loans
2.91
III. Overseas Assets, NPAs and Revenue
Amounts (in Rupees Crores)
Particulars
Total Assets
2009-2010
Current Year
0.00
2008-2009
Previous Year
0.00
Total NPAs
0.00
0.00
Total Revenue
0.57
1.08
21
IV. Off-Balance Sheet SPVs sponsored (which are required to be consolidated as per
accounting norms)
Name of the SPV sponsored
Domestic
Overseas
NIL
NIL
23.7 During the year, the Bank has issued 20,00,000 equity shares of Rs.100/- each
aggregating Rs.20,00,00,000 which has been subscribed by State Bank of India at a
premium of Rs.750 per equity share aggregating to Rs.150,00,00,000.
23.8 During the year, the Bank has also issued Innovative Perpetual Debt Instruments
for Rs.300 crores eligible to be included under Tier-I capital.
23.9 Pursuant to RBI guidelines in respect of Agriculture Debt Waiver and Debt Relief
Scheme-2008:
i)
The Bank has made a claim from GoI for Rs.142.85 crores towards debt Waiver. Out of
this claim, a sum of Rs. 91.42 crores has been received in three instalments. Further a
sum of Rs.49.71 crores has been identified as amount receivable from GoI in respect of
farmers covered under Debt Relief, under the aforesaid scheme, for which the claim is
yet to be lodged with GoI.
ii) The Bank has made an aggregate provision of Rs.36.73 crores on account of loss based
on Net Present Value in respect of the amount receivable from the farmers under the
aforesaid scheme.
iii) Balance amount receivable from GoI under the aforesaid scheme has been reflected in
schedule 9 (advances) in the Balance Sheet.
iv) Interest receivable from GoI in respect of balance amount of claims towards Debt
Waiver has been recognised from the date of receipt of first instalment @ equivalent to
“YTM of 364 days Treasury Bill” prevailing on the date of receipt of the first instalment.
23.10 The bank has not received any intimation from the suppliers regarding their status
under the Micro, Small & Medium Enterprises Development Act, 2006 and hence the
disclosures relating to amount un-paid as at the end of the year together with interest
payable as required under the said Act has not been furnished and provision for interest, if
any, on delayed payment is not ascertainable at this stage.
23.11 Details of fees/remuneration received during the year in respect of bancassurance
business
Year
2008-09
2009-10
Fees/Remuneration received (in lacs)
656.00
1099.00
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24. Previous year’s figures have been regrouped/adjusted, wherever considered
necessary. In cases where disclosures have been made for the first time in terms of RBI
guidelines, previous year‘s figures have not been given.
V. N. Rathi
Salil Misra
Dy. General Manager General Manager
(Accounts)
T. Lokeshaiah
Ashok Nayar
O. P. Bhatt
Chief General Manager
Managing Director
Chairman
(Treasury)
Directors
N. H Siddiqui
Sushil Gautam
R. K. Sood
B.S. Gopalakrishna
Rakesh Chander Jasra
Ashwani Kumar Gupta
Swarn Singh Boparai
Dr. Abhijit Mukherjee
S. A. Thimmiah
As per our separate report of even date
M/s Batra Sapra & Co.
M/s A. Bafna & Co.
Chartered Accountants
Chartered Accountants
(CA. A.L. Batra)
(CA. Mukesh Gupta)
(CA. M. K. Gupta)
Partner
Partner
Membership No. 16929
Membership No. 73515
Membership No. 6615
M/s P. Singhvi & Associates
M/s Verma Associates.
M/s Anoop Agarwal & Co.
Chartered Accountants
Chartered Accountants
Chartered Accountants
Partner
M/s Gupta & Co.
Chartered Accountants
(CA Praveen Singhvi)
(CA. Madan Verma)
(CA. Anoop Agarwal)
Partner
Partner
Partner
Membership No. 71608
Membership No. 81631
Membership No.70888
Place: Mumbai
Date : 21.04.2010
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