ICICI Bank 2008 Annual Report Download - page 173

F99
A NPA is defined as a loan or an advance where:
i) interest and/ or installment of principal remains overdue for more than 90 days in respect of a term loan.
Any amount due to the bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed
by the bank;
ii) the account remains ‘out of order’ in respect of an overdraft/ cash credit (OD/CC) facility continuously
for 90 days. An account is treated as ‘out of order’ if:
a. the outstanding balance remains continuously in excess of the sanctioned limit/drawing power,
or
b. where the outstanding balance in the principal operating account is less than the sanctioned limit/
drawing power, but there are no credits continuously for 90 days as on the date of the balance sheet
or,
c. credits in the account are not enough to cover the interest debited during the accounting period
d. drawings have been permitted in the account for a continuous period of 90 days based on drawing
power computed on the basis of stock statements that are more than three months old even though
the unit may be working or the borrower’s financial position is satisfactory
e. the regular/ad hoc credit limits have not been reviewed/ renewed within 180 days from the due
date/ date of ad hoc sanction.
iii) a bill purchased/discounted by the Bank remains overdue for a period of more than 90 days.
iv) interest and/or installment of principal in respect of an agricultural loan remains overdue for two crop
seasons for short duration crops and one crop season for long duration crops.
Further, NPAs are classified into sub-standard, doubtful and loss assets based on the criteria stipulated by
RBI. A sub-standard asset is one, which has remained NPA for a period less than or equal to 12 months. An
asset is classified as doubtful if it has remained in the sub-standard category for 12 months. A loss asset is
one where loss has been identified by the Bank or internal or external auditors or during RBI inspection but
the amount has not been written off fully.
The loans of subsidiaries have been classified as non-performing in accordance with the guidelines prescribed
by their respective regulators.
b. Total credit risk exposures (March 31, 2008)
Rupees in million
Category Credit exposure
Fund-based facilities 3,480,734.9
Non-fund based facilities 1,217,318.0
Total14,698,052.9
1. Includes all entities considered for Basel II capital adequacy computation.
Credit exposure includes exposure towards term loans, working capital facilities (i.e. funded facilities like
cash credit, demand loan, temporary limits and non-funded facilities like letter of credit, acceptances,
financial guarantee, project guarantee etc.), sell-down options and commitments under loan syndication.
The above excludes investments & derivative exposures, which are covered under market risk.
c. Geographic distribution of exposures (March 31, 2008)
Rupees in million
Fund-based Non-fund based
Domestic 2,710,319.7 1,157,494.5
Overseas 770,415.2 59,823.5
Total13,480,734.9 1,217,318.0
1. Includes all entities considered for Basel II capital adequacy computation.
BASEL II – Pillar 3 Disclosures (Consolidated)
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