ICICI Bank 2014 Annual Report Download - page 128

F40
33. Employee benefits
Pension
The following tables set forth, for the periods indicated, movement of the present value of the defined benefit obligation,
fair value of plan assets and other details for pension benefits.
` in million
Particulars Year ended
March 31, 2014
Year ended
March 31, 2013
Opening obligations ............................................................................................ 10,392.5 9,602.7
Service cost .......................................................................................................... 240.3 250.6
Interest cost .......................................................................................................... 833.7 793.7
Actuarial (gain)/loss .............................................................................................. 998.5 2 ,017.8
Liabilities extinguished on settlement ................................................................. (2,012.8) (1,960.1)
Benefits paid ......................................................................................................... (242.3) (312.2)
Obligations at the end of year ............................................................................ 10,209.9 10,392.5
Opening plan assets, at fair value ...................................................................... 9,526.8 9,379.5
Expected return on plan assets ........................................................................... 772.0 728.5
Actuarial gain/(loss) .............................................................................................. (29.1) 102.3
Assets distributed on settlement ......................................................................... (2,236.5) (2,177.9)
Contributions ........................................................................................................ 1,227.9 1,806.6
Benefits paid ......................................................................................................... (242.3) (312.2)
Closing plan assets, at fair value ........................................................................ 9,018.8 9,526.8
Fair value of plan assets at the end of the year .................................................. 9,018.8 9,526.8
Present value of the defined benefit obligations at the end of the year ............ 10,209.9 10,392.5
Amount not recognised as an asset (limit in Para 59(b)of AS-15 on ‘employee
benefits’) ............................................................................................................... ——
Asset/(liability) .................................................................................................... (1,191.1) (865.7)
Cost for the year
Service cost .......................................................................................................... 240.3 250.6
Interest cost .......................................................................................................... 833.7 793.7
Expected return on plan assets ........................................................................... (772.0) (728.5)
Actuarial (gain)/loss .............................................................................................. 1,027.6 1,915.5
Curtailments & settlements (gain)/loss ................................................................ 223.7 217.8
Effect of the limit in para 59(b) of AS-15 on ‘employee benefits’ ...................... ——
Net cost ................................................................................................................ 1,553.3 2,449.1
Actual return on plan assets ................................................................................ 742.9 828.7
Expected employer’s contribution next year ...................................................... 1,000.0 670.0
Investment details of plan assets
Insurer Managed Funds1 ...................................................................................... 80.86% 77.74%
Government of India securities ............................................................................ 7.50% 7.62%
Corporate Bonds .................................................................................................. 9.00% 9.31%
Others ................................................................................................................... 2.64% 5.33%
Assumptions
Discount rate ........................................................................................................ 9.25% 8.00%
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 the expected average long-term rate of return on investments of the
Fund during the estimated term of the obligations.
forming part of the Accounts (Contd.)
schedules