ICICI Bank 2009 Annual Report Download - page 110

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provision on non-performing loans for the year is assessed after taking into account the cumulative specific provisions and
the floating provisions held. Consequently, the floating provision held as at March 31, 2009 is Rs. Nil. The treatment of the
floating provision as a specific provision does not have any impact on the profit & loss account for the year.
19. Financial assets transferred during the year to securitisation company (SC)/reconstruction company (RC)
The Bank has transferred certain assets to Asset Reconstruction Companies (ARCs) in terms of the guidelines issued by
RBI governing such transfer. For the purpose of the valuation of the underlying security receipts issued by the underlying
trusts managed by ARCs, the security receipts are valued at their respective NAVs as advised by the ARCs. The details of
the assets transferred during the year ended March 31, 2009 and March 31, 2008 are given in the table below:
Rupees in million, except number of accounts
Year ended
March 31, 2009 Year ended March 31, 2008
A No. of accounts ............................................................................................. 18,429 18,480
B Aggregate value (net of provisions) of accounts sold to SC/RC .................. 6,810.7 9,344.5
C Aggregate consideration ............................................................................... 6,737.9 9,408.2
DAdditional consideration realised in respect of accounts ...........................
transferred in earlier years1 ........................................................................... ——
E Aggregate gain/(loss) over net book value ................................................... (72.8) 63.7
1. During the year ended March 31, 2009, ARCIL fully redeemed security receipts of three trusts. The Bank realised Rs. 27.6 million
over the gross book value in respect of two trusts (March 31, 2008: Rs. Nil). The Bank also realised an additional amount of Rs. Nil
over the gross book value in respect of security receipts already redeemed. Further, the Bank has realised an additional amount
of Rs. Nil (March 31, 2008: Rs. 7.7 million) over the gross book value in respect of security receipts not fully redeemed as on
March 31, 2009.
20. Provisions on standard assets
The Bank makes provision on standard assets as per RBI guidelines. During the period ended September 30, 2008, the Bank
made proportionate additional provision on interest rate and foreign exchange derivative transaction and gold, as applicable
to loan assets in the standard category, in line with RBI circular DBOD.No.BP.31/21.04.157/2008-09 dated August 8, 2008.
The Bank has also adopted the revised rates for making provision on standard assets during the year ended March 31,
2009, in accordance with RBI circular no. DBOD.BP.BC.83/21.01.002/2008-09 dated November 15, 2008.
The Bank has written back Rs. 190.0 million during the year ended March 31, 2009 as compared to incremental provision
of Rs. 1,590.0 million made during the year ended March 31, 2008. The Bank has not written back any standard asset
provision post the aforementioned RBI circular dated November 15, 2008. The provision on standard assets held by the
Bank at March 31, 2009 was Rs. 14,360.6 million (March 31, 2008: Rs. 14,550.3 million).
21. Provisions and contingencies
The break-up of ‘Provisions and contingencies’ included in the profit and loss account is given below:
Rupees in million
Year ended
March 31, 2009 Year ended March 31, 2008
Provisions for depreciation of investments .................................................. 977.3 622.6
Provision towards non-performing assets .................................................... 37,690.3 25,419.9
Provision towards standard assets ............................................................... (190.0) 1,590.0
Provision towards income tax1 ..................................................................... 13,558.4 8,953.7
Provision towards wealth tax ........................................................................ 30.0 30.0
Other provision and contingencies ............................................................... (395.0) 1,413.3
1. Includes fringe benefit tax amounting to Rs. 342.0 million for the year ended March 31, 2009 (March 31, 2008: Rs. 392.0 million) and
net deferred tax asset amounting to Rs. (4,716.7) million for the year ended March 31, 2009 (March 31, 2008: Rs. (7,133.6) million).
22. Movement in provision for credit card reward points Rupees in million
Year ended
March 31, 2009 Year ended March 31, 2008
Opening provision for reward points ............................................................ 576.3 321.9
Provision for reward points made during the year ....................................... 599.4 583.5
Utilisation/Write back of provision for reward points ................................... 943.7 329.1
Closing provision for reward points1 ............................................................ 232.0 576.3
1. The closing provision is based on the actuarial valuation of accumulated credit card reward points. This amount will be utilised towards
redemption of the credit card reward points.
forming part of the Accounts (Contd.)
schedules