ICICI Bank 2005 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2005 ICICI Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

F31
12. Provision for non-performing assets
In its circular dated DBOD.BP.BC 99/21.04.048/2003-2004 dated June 21, 2004 RBI has introduced graded higher
provisioning norms which would require a bank to make 100% provision on the secured portion of doubtful assets
outstanding for more than three years in doubtful category instead of the earlier requirement of 50% provision. However,
RBI has allowed banks to make 100% provision on the existing assets which are in doubtful category for more than three
years as on March 31, 2004, till March 31, 2007 in a graded manner (i.e. 60% as on March 31, 2005, 75% as on March 31,
2006 and 100% as on March 31, 2007). Accordingly the Bank has adopted the revised RBI guidelines.
The impact of the adoption of the revised guidelines on the profit and loss account is not significant.
13. Subvention income
Effective April 1, 2004 the commissions paid to direct marketing agents (DMAs) of auto loans, net of subvention
income received from them, is recorded upfront in the profit and loss account. For disbursements made till
March 31, 2004, the gross commissions paid to direct marketing agents (DMAs) of auto loans were recorded
upfront in the profit and loss account and subvention income received from them is being amortised over the life
of the loan. The impact of the change is not significant.
14. Transfer of investments from AFS to HTM category
During the year ended March 31, 2005, the Bank has transferred investments amounting to Rs. 213,489.4 million
from Available for Sale category to Held to Maturity category in accordance with RBI circular: DBOD.No.BP.BC.37/
21.04.141/2004-05 dated September 2, 2004. The difference between the book value of each investment and the
lower of its acquisition cost and market value on the date of transfer, amounting to Rs. 1,828.2 million has been
provided for in the profit and loss account.
15. Others
a. Exchange fluctuation
Exchange fluctuation aggregating Rs. 244.7 million (March 31, 2004: Rs. 577.8 million), which arises on account
of rupee-tying agreements with the Government of India, is held in “Exchange Fluctuation Suspense with
Government Account” pending adjustment at maturity on receipt of payments from the Government for
repayments to foreign lenders.
b. Swap suspense (net)
Swap suspense (net) aggregating Rs. 794.7 million (debit) (March 31, 2004: Rs. 677.0 million (debit)), which
arises out of conversion of foreign currency swaps, is held in “Swap suspense account” and will be reversed at
conclusion of swap transactions with swap counter parties.
16. Comparative figures
Figures of the previous period/year have been regrouped to conform to the current year’s presentation..
..
.
For and on behalf of the Board of Directors
N. VAGHUL
Chairman
LALITA D. GUPTE
Joint Managing Director
CHANDA D. KOCHHAR
Executive Director
N. S. KANNAN
Chief Financial Officer &
Treasurer
K. V. KAMATH
Managing Director & CEO
KALPANA MORPARIA
Deputy Managing Director
NACHIKET MOR
Executive Director
G. VENKATAKRISHNAN
General Manager -
Accounting & Taxation Group
JYOTIN MEHTA
General Manager &
Company Secretary
Place : Mumbai
Date : April 30, 2005
forming part of the Accounts (Contd.)
schedules