ICICI Bank 2016 Annual Report Download - page 175

Annual Report 2015-2016 173
Schedules
forming part of the Accounts (Contd.)
Financial Statements of ICICI Bank Limited
Sr. no. Contingent liability Brief Description
4. Guarantees given on
behalf of constituents,
acceptances, endorse-
ments and other
obligations
This item represents the guarantees and documentary credits issued by the Bank in favour
of third parties on behalf of its customers, as part of its trade nance banking activities with
a view to augment the customers’ credit standing. Through these instruments, the Bank
undertakes to make payments for its customers’ obligations, either directly or in case the
customers fail to fulll their nancial or performance obligations.
5. Currency swaps, interest
rate swaps, currency
options and interest rate
futures
This item represents the notional principal amount of various derivative instruments which
the Bank undertakes in its normal course of business. The Bank offers these products to its
customers to enable them to transfer, modify or reduce their foreign exchange and interest
rate risks. The Bank also undertakes these contracts to manage its own interest rate and
foreign exchange positions. 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.
6. Other items for which the
Bank is contingently liable
Other items for which the Bank is contingently liable primarily include the amount of
government securities bought/sold and remaining to be settled on the date of nancial
statements. This also includes the value of sell down options and other facilities pertaining
to securitisation, the notional principal amounts of credit derivatives, amount applied in
public offers under Application Supported by Blocked Amounts (ASBA), bill re-discounting,
amount transferred to the RBI under the Depositor Education and Awareness Fund (DEAF),
exposure under partial credit enhancement, commitment towards contribution to venture
fund and the amount that the Bank is obligated to pay under capital contracts. Capital
contracts are job orders of a capital nature which have been committed.
36. Insurance business
The following table sets forth, for the periods indicated, the break-up of income derived from insurance business.
` in million
Sr.
No. Nature of income Year ended March 31, 2016
Year ended
March 31, 2016
1. Income from selling life insurance policies 7,667.7 6,325.7
2. Income from selling non-life insurance policies 735.1 678.2
3. Income from selling mutual fund/collective investment scheme products 1,794.5 2,426.6
37. Employee benets
Pension
The following tables set forth, for the periods indicated, movement of the present value of the dened benet
obligation, fair value of plan assets and other details for pension benets.
` in million
Particulars Year ended
March 31, 2015
Year ended
March 31, 2014
Opening obligations 12,999.9 10,209.9
Service cost 251.0 217.8
Interest cost 1,034.7 943.5
Actuarial (gain)/loss 1,594.7 3,174.7
Liabilities extinguished on settlement (1,554.0) (1,381.1)
Benets paid (134.7) (164.9)
Obligations at the end of year 14,191.6 12,999.9
Opening plan assets, at fair value 10,103.4 9,018.8
Expected return on plan assets 902.9 743.3
Actuarial gain/(loss) (4.1) 104.7
Assets distributed on settlement (1,726.7) (1,534.6)