ICICI Bank 2006 Annual Report Download - page 94

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F35
33. Subvention income
The Bank has aligned its accounting policy for subvention income with its accounting policy for direct marketing agency/
associate expenses. Accordingly, subvention income has been accounted for in the period in which it is received instead of
over the period of the loan. As a result of the change in policy, the impact on profit after tax for the year ended March 31,
2006 is not expected to be significant.
34. Provision
RBI has increased the requirement of general provisioning on standard loans (excluding loans to agriculture sector and
small and medium enterprises) to 0.40% compared to 0.25% earlier. In accordance with the revised guidelines on general
provisioning on standard loans, the Bank has made general provision of Rs. 3,390.2 million during the year ended March 31,
2006. The Bank has reassessed its provision requirement on performing loans and non-performing loans on a portfolio
basis during the year ended March 31, 2006. Based on this reassessment, the Bank has written back an amount of
Rs. 1,692.2 million from its existing provisions against non-performing loans, which were in excess of regulatory requirements.
35. Penalties imposed by RBI
The RBI had imposed penalties (ranging from Rs. 0.5 million to Rs. 2.0 million) on certain banks including ICICI Bank on
January 23, 2006 under Section 47A(1)(b) of the Banking Regulation Act, 1949. A penalty of Rs. 0.5 million (March 31, 2005:
Rs. Nil) had been imposed on the Bank citing contravention of RBI instructions relating to opening of accounts, monitoring
of transactions for adherence to Know Your Customer (“KYC”)/Anti Money Laundering (“AML”) norms, and non-adherence
to normal banking practices.
36. Comparative figures
Figures of the previous year have been regrouped to conform to the current year presentation.
Signatures to Schedules 1 to 18
forming part of the Accounts (Contd.)
schedules
N. VAGHUL
Chairman
LALITA D. GUPTE
Joint Managing Director
CHANDA D. KOCHHAR
Deputy Managing Director
JYOTIN MEHTA
General Manager &
Company Secretary
K. V. KAMATH
Managing Director & CEO
KALPANA MORPARIA
Joint Managing Director
NACHIKET MOR
Deputy Managing Director
RAKESH JHA
General Manager
VISHAKHA MULYE
Chief Financial Officer
& Treasurer
Place : Mumbai
Date : April 29, 2006
For and on behalf of the Board of Directors