ICICI Bank 2012 Annual Report Download - page 116

F38
36. Staff retirement benefits
Pension
The following tables set forth, for the periods indicated, reconciliation of opening and closing balance of the present
value of the defined benefit obligation for pension benefits.
` in million
Particulars Year ended
March 31, 2012
Year ended
March 31, 2011
Opening obligations ............................................................................................ 8,842.9 1,748.7
Service cost .......................................................................................................... 251.6 170.8
Interest cost .......................................................................................................... 707.8 457.8
Actuarial (gain)/loss .............................................................................................. 2,329.8 607.0
Liabilities extinguished on settlement ................................................................. (2,268.7) (460.0)
Addition due to amalgamation ............................................................................ —6,479.0
Benefits paid ......................................................................................................... (260.7) (160.4)
Obligations at the end of year ............................................................................ 9,602.7 8,842.9
Opening plan assets, at fair value ...................................................................... 8,467.4 1,839.9
Expected return on plan assets ........................................................................... 652.9 156.5
Actuarial gain/(loss) .............................................................................................. 51.7 69.1
Assets distributed on settlement ......................................................................... (2,413.5) (511.1)
Contributions ........................................................................................................ 2,881.7 6,094.6
Addition due to amalgamation ............................................................................ —978.8
Benefits paid ......................................................................................................... (260.7) (160.4)
Closing plan assets, at fair value ........................................................................ 9,379.5 8,467.4
Fair value of plan assets at the end of the year .................................................. 9,379.5 8,467.4
Present value of the defined benefit obligations at the end of the year ............ 9,602.7 8,842.9
Amount not recognised as an asset (limit in Para 59(b)) .................................... ——
Asset/(liability) .................................................................................................... (223.2) (375.5)
Cost for the year
Service cost .......................................................................................................... 251.6 170.8
Interest cost .......................................................................................................... 707.8 457.8
Expected return on plan assets ........................................................................... (652.9) (156.5)
Actuarial (gain)/loss .............................................................................................. 2,278.2 537.9
Curtailments & settlements (gain)/loss ................................................................ 144.8 51.1
Effect of the limit in para 59(b) ............................................................................. —(7.7)
Net cost ................................................................................................................ 2,729.5 1,053.4
Actual Return on Plan Assets............................................................................... 704.6 225.7
Expected employer’s contribution next year ............................................................ 150.0 100.0
Investment details of plan assets
Insurer Managed Funds1 ..................................................................................... 78.93% 75.58%
Government of India securities ............................................................................ 8.59% 9.93%
Corporate Bonds .................................................................................................. 9.40% 10.82%
Others ................................................................................................................... 3.08% 3.67%
Assumptions
Interest rate ........................................................................................................... 8.35% 8.10%
Salary escalation rate:
On Basic Pay ..................................................................................................... 1.50% 1.50%
On Dearness Relief ........................................................................................... 7.00% 7.00%
Estimated rate of return on plan assets .............................................................. 8.00% 8.00%
1. Majority of the funds are invested in Government of India securities and corporate bonds.
Estimated rate of return on plan assets is based on our expectation of the average long-term rate of return expected on
investments of the Fund during the estimated term of the obligations.
forming part of the Accounts (Contd.)
schedules