ICICI Bank 2009 Annual Report Download - page 165

F91
Definition and classification of non-performing assets (NPA)
The Bank classifies its advances (loans and debentures in the nature of an advance) into performing and non-
performing loans (NPL) in accordance with the extant RBI guidelines.
A NPA is defined as a loan or an advance where:
i) interest and/or installment of principal remain 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 more than 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.
a. Total credit risk exposures (March 31, 2009)
Rupees in billion
Category Credit exposure
Fund-based facilities 3,594.11
Non-fund based facilities 2,088.20
Total15,682.31
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, performance guarantee), sell-down options, securitisation, derivatives, credit derivatives and
investments that are held-to-maturity. Direct claims on domestic sovereign (to the extent of Rs. 536.09 billion)
and investments covered under specific market risk have been excluded.
b. Geographic distribution of exposures (March 31, 2009)
Rupees in billion
Fund-based Non-fund based
Domestic 2,615.87 1,799.57
Overseas 978.24 288.63
Total13,594.11 2,088.20
1. Includes all entities considered for Basel II capital adequacy computation.
BASEL II – Pillar 3 Disclosures (Consolidated)