ICICI Bank 2005 Annual Report Download - page 84

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F24
schedules
forming part of the Accounts (Contd.)
10.4 Advances
(i) Lending to sensitive sectors
The Bank has lending to sectors, which are sensitive to asset price fluctuations. Such sectors include capital
market, real estate and commodities. The net position of lending to sensitive sectors is given in the table below:
(Rupees in million)
March 31, 2005 March 31, 2004
Capital market sector* .................................................................... 6,683.6 5,932.2
Real estate sector ........................................................................... 43,497.0 25,172.34
Commodities sector ....................................................................... 10,061.0 1,032.0
* represents loans to NBFCs, brokers and individuals against pledge of shares and includes an amount of Rs.
141.0 million as on March 31, 2005 (March 31, 2004: Rs. 3,026.5 million) pertaining to guarantee issued to
a corporate for the issue of non-convertible debentures, the proceeds of which have been utilised for
acquisition of shares by the corporate
(ii) Movement of gross non-performing advances during the year
(Rupees in million)
April 1, 2004 to April 1, 2003 to
March 31, 2005 March 31, 2004
Opening balance ............................................................................. 30,475.9 50,273.8
Add: Additions during the year** ................................................. 11,157.9 7,773.4
41,633.8 58,047.2
Less: Reductions during the year .................................................. (13,929.5) (27,571.3)
Closing balance* ............................................................................. 27,704.3 30,475.9
* includes suspended interest and claims received from ECGC/DICGC of Rs. 283.7 million (March 31, 2004:
Rs. 501.8 million) on working capital loan.
** excludes cases added to and deleted from NPAs in the same year amounting to Rs. 13,759.9 million (March
31, 2004: Rs. 6,853.7 million)
(iii) Provision for non-performing advances
The movement of provisions during the year is as follows:
(Rupees in million)
April 1, 2004 to April 1, 2003 to
March 31, 2005 March 31, 2004
Opening balance* ........................................................................... 16,250.1 22,036.1
Add: Provisions made during the period/year (including utilisation
of fair value provisions) .................................................................. 18,002.1 7,318.1
34,252.2 29,354.2
Less: Write-offs/recovery ............................................................... (21,883.7) (13,104.1)
Closing balance* ............................................................................. 12,368.5 16,250.1
* excludes technical write-off amounting to Rs. 15,763.6 million (March 31, 2004: Rs. 23,696.2 million).
(iv) Financial assets transferred during the year to Securitisation Company (SC) / Reconstruction Company (RC)
The Bank has transferred certain assets to an asset reconstruction company (ARC) in terms of the guidelines
issued by RBI governing such transfer. For the purpose of the valuation of the underlying security receipts
issued by ARC, for the year ended March 31, 2004 NAV is taken at acquisition cost since ARC had not intimated
the NAV and the transfers had been effected close to the year end. For the year ended March 31, 2005, the
security receipts were valued at their respective NAVs as advised by the ARC. The details of the assets