ICICI Bank 2016 Annual Report Download - page 174

Annual Report 2015-2016172
Schedules
forming part of the Accounts (Contd.)
Financial Statements of ICICI Bank Limited
32. Details of Single Borrower Limit and Borrower Group Limit exceeded by the Bank
During the year ended March 31, 2016, the Bank complied with the RBI guidelines on single borrower and borrower
group limit. As per the exposure limits permitted under the extant RBI regulation, the Bank with the approval of the
Board of Directors can enhance exposure to a single borrower or borrower group by a further 5.0% of capital funds.
In accordance with the guidelines issued by RBI, with the prior approval of the Board of Directors, the Bank had
taken additional exposure to Reliance Industries Limited during the year. At March 31, 2016, the exposure to Reliance
Industries Limited as a percentage of capital funds was 14.6% and was within the prudential exposure limit.
During the year ended March 31, 2015, the Bank complied with the RBI guidelines on single borrower and borrower
group limit.
33. Unsecured advances against intangible assets
The Bank has not made advances against intangible collaterals of the borrowers, which are classied as ‘unsecured’
in its nancial statements at March 31, 2016 (March 31, 2015: Nil) and the estimated value of the intangible collaterals
was Nil at March 31, 2016 (March 31, 2015: Nil).
34. Fixed Assets
i. Revaluation
The Bank revalued its premises (land and buildings) at March 31, 2016. The revalued amount of the premises was
` 58,404.6 million as compared to the historical cost less accumulated depreciation of ` 30,229.9 million on the
date of revaluation. The valuation was carried out by external valuers using methods applicable to the valuation
of premises such as direct comparison method and income generation method.
ii. Software
The following table sets forth, for the periods indicated, the movement in software acquired by the Bank, as
included in xed assets.
` in million
Particulars At
March 31, 2016
At
March 31, 2015
At cost at March 31 of preceding year 11,260.7 9,433.7
Additions during the year 1,877.7 1,827.9
Deductions during the year (1.8) (0.9)
Depreciation to date (10,074.9) (8,554.8)
Net block 3,061.7 2,705.9
35. Description of contingent liabilities
The following table describes the nature of contingent liabilities of the Bank.
Sr. no. Contingent liability Brief Description
1. Claims against the Bank,
not acknowledged as
debts
This item represents demands made in certain tax and legal matters against the Bank in the
normal course of business and customer claims arising in fraud cases. In accordance with
the Bank’s accounting policy and AS - 29, the Bank has reviewed and classied these items
as possible obligations based on legal opinion/judicial precedents/assessment by the Bank.
2. Liability for partly paid
investments
This item represents amounts remaining unpaid towards liability for partly paid investments.
These payment obligations of the Bank do not have any prot/loss impact.
3. Liability on account of
outstanding forward
exchange contracts
The Bank enters into foreign exchange contracts in the normal course of its business, to
exchange currencies at a pre-xed price at a future date. This item represents the notional
principal amount of such contracts, which are derivative instruments. With respect to the
transactions entered into with its customers, the Bank generally enters into off-setting
transactions in the inter-bank market. This results in generation of a higher number of
outstanding transactions, and hence a large value of gross notional principal of the portfolio,
while the net market risk is lower.