ICICI Bank 2008 Annual Report Download - page 62

the account remains out of order for a period of 90 days and in respect of bills, if the account remains overdue
for more than 90 days.
We do not distinguish between provisions and technical write-offs while assessing the adequacy of our loan loss
coverage, as both provisions and write-offs represent a reduction of the principal amount of a non-performing
asset. In compliance with regulations governing the presentation of financial information by banks, we report
non-performing assets net of cumulative write-offs in our financial statements.
RBI has separate guidelines for restructured loans. A fully secured standard asset can be restructured by re-
schedulement of principal repayments and/or the interest element, but must be separately disclosed as a
restructured asset. The amount of sacrifice, if any, in the element of interest, measured in present value terms,
is either written off or provision is made to the extent of the sacrifice involved. Similar guidelines apply to sub-
standard loans. The sub-standard accounts which have been subjected to restructuring, whether in respect of
principal installment or interest amount are eligible to be upgraded to the standard category only after the specified
period, i.e., a period of one year after the date when first payment of interest or of principal, whichever is earlier,
falls due, subject to satisfactory performance during the period.
The following table sets forth, at March 31, 2007 and March 31, 2008, information regarding the classification of
our gross assets (net of write-offs and interest suspense).
Rs. in billion
March 31, 2007 March 31, 2008
Standard assets Rs. 2,036.46 Rs. 2,352.22
Of which: Restructured loans 50.41 48.41
Non-performing assets 41.68 75.88
Of which: Sub-standard 24.33 48.49
Doubtful assets 15.28 22.09
Loss assets 2.07 5.30
Total customer assets1Rs. 2,078.14 Rs. 2,428.10
1. Customer assets include advances, lease receivables and credit substitutes like debenture and bonds but excludes preference
shares.
2. All amounts have been rounded off to the nearest Rs. 10.0 million.
The following table sets forth, at the dates indicated, information regarding our non-performing assets, or
NPAs.
Rs. in billion, except percentages
Year ended Gross NPA1Net NPA Net customer
assets
% of Net NPA to Net
customer assets2
March 31, 2006 22.73 10.75 1,520.07 0.71%
March 31, 2007 41.68 20.19 2,053.74 0.98%
March 31, 2008 75.88 35.64 2,384.84 1.49%
1. Net of write-offs and interest suspense.
2. Customer assets include advances, lease receivables and credit substitutes like debenture and bonds but excludes preference
shares.
3. All amounts have been rounded off to the nearest Rs. 10.0 million.
Management’s Discussion & Analysis
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