ICICI Bank 2016 Annual Report Download - page 162

Annual Report 2015-2016160
Schedules
forming part of the Accounts (Contd.)
Financial Statements of ICICI Bank Limited
In accordance with RBI guidelines, the loans and advances held at the overseas branches that are identied as
impaired as per host country regulations for reasons other than record of recovery, but which are standard as per the
extant RBI guidelines, are classied as NPAs to the extent of amount outstanding in the host country.
19. Provision on standard assets
Standard assets provision amounting to ` 2,970.1 million was made during the year ended March 31, 2016 (March
31, 2015: ` 3,847.9 million) as per applicable RBI guidelines.
The provision on standard assets (including incremental provision on unhedged foreign currency exposure (UFCE))
held by the Bank at March 31, 2016 was ` 26,583.4 million (March 31, 2015: ` 23,336.0 million).
The Bank assesses the unhedged foreign currency exposures of the borrowers through its credit appraisal and internal
ratings process. The Bank also undertakes reviews of such exposures through thematic reviews by Risk Committee
based on market developments evaluating the impact of exchange rate uctuations on the Bank’s portfolio, portfolio
specic reviews by the RMG and scenario-based stress testing approach as detailed in the Internal Capital Adequacy
Assessment Process (ICAAP). In addition, a periodic review of the forex exposures of the borrowers’ having signicant
external commercial borrowings is conducted by RMG.
RBI, through its circular dated January 15, 2014 had advised banks to create incremental provision on advances to
borrowers with UFCE. Incremental provision of ` 100.0 million was made against borrowers with UFCE during the
year (March 31, 2015: ` 1,750.0 million).
The Bank held incremental capital of ` 5,580.0 million at March 31, 2016 on UFCE (March 31, 2015: ` 4,050.0 million).
20. Provision Coverage Ratio
The provision coverage ratio of the Bank at March 31, 2016 computed as per the extant RBI guidelines is 50.6%
(March 31, 2015: 58.6%).
21. Securitisation
A. The Bank sells loans through securitisation and direct assignment. The following tables set forth, for the periods
indicated, the information on securitisation and direct assignment activity of the Bank as an originator till May 7, 2012.
` in million, except number of loans securitised
Particulars Year ended
March 31, 2016
Year ended
March 31, 2015
Total number of loan assets securitised ––
Total book value of loan assets securitised ––
Sale consideration received for the securitised assets ––
Net gain/(loss) on account of securitisation1(39.5) 148.0
1. Includes gain/(loss) on deal closures, gain amortised during the year and expenses relating to utilisation of credit
enhancement.
` in million
Particulars At
March 31, 2016
At
March 31, 2015
Outstanding credit enhancement (funded) 3,992.2 4,531.4
Outstanding liquidity facility *0.3
Net outstanding servicing asset/(liability) (25.5) (32.9)
Outstanding subordinate contributions 1,493.6 1,513.4
* Insignificant amount.
The outstanding credit enhancement in the form of guarantees amounted to Nil at March 31, 2016 (March 31,
2015: Nil) and outstanding liquidity facility in the form of guarantees amounted to ` 265.6 million at March 31,
2016 (March 31, 2015: ` 265.5 million).