A. Disclosures as Laid Down by RBI Circulars 1 Regulatory Capital
a) Composition of Regulatory Capital
The Capital adequacy ratio (“CAR”) has been computed as per operating guideline for Small Finance Bank in accordance with RBI Circular No. RBI/2016-17/81DBR. NBD.No.26/16.13.218/2016-17 dated October 6, 2016. The Bank has followed Basel II standardised approach for credit risk in accordance with the Operating Guideline issued by the Reserve Bank of India for Small Finance banks. Further, the RBI vide its circular No. DBR.NBD.No. 4502/16.13.218/2017-18 dated November 8, 2017 has provided an exemption to all small Finance banks whereby no separate capital charge is prescribed for market risk and operational risk.”
The total Capital Adequacy ratio of the Bank as at March 31, 2023 is 23.59% (previous year: 20.99%) against the regulatory requirement of 15.00% as prescribed by RBI.
No Capital Conservation Buffer and Counter - Cyclical Capital Buffer is applicable on Small Finance Bank (SFB) as per operating guidelines issued on SFB by RBI.
* During the year ended March 31, 2023, the Bank has issued 3,44,82,758 equity shares of a face value C 10 each at a price of C 580 per equity share including a premium of C 570 per equity share aggregating to C 2,000 crore pursuant to Qualified Institutional Placement (QIP).
During the year ended March 31, 2023, the Bank allotted 22,69,033 equity shares (previous year: 26,86,641 equity shares) aggregating to paid up share capital of C 2.27 crore (previous year: C 2.69 crore). Further the reserves of the Bank have increased by C 67.10 crore (previous year: C 87.79 crore) in respect of stock options exercised.
b) Draw down from reserves
There has been no draw down from reserves during the year ended March 31, 2023 and March 31, 2022 other than those disclosed under Schedule 2.
ii) Qualitative disclosure on Liquidity Coverage Ratio (LCR):
To assess Bank's resilience in liquidity stress scenario of 30 days with its high-quality liquid assets, Banks is computing Liquidity Coverage Ratio (LCR) as per RBI - Basel III Framework on Liquidity Standards. High Ratio signifies Bank has enough liquid assets which it can use to fulfil its liquidity obligations in acute stress scenario. Ratio to compute as below:
Lcr = Stock of High Quality Liquid Assets (HQLA)
Net Cash Outflows over a 30 days period
Stock of High Quality Liquid Asset is total funds liquid assets could generate in stress scenario. Net Cash outflows is the difference as derived by multiplying the outstanding balances of various categories or types of liabilities by the outflow run-off rates and cash inflows are calculated by multiplying the outstanding balances of various categories of contractual receivables by the rates at which they are expected to flow in.
The Minimum LCR Requirement for Small Finance Banks (as per operating guidelines for Small Finance Banks RBI/2016-17/81 DBR.NBD.No.26/16.13.218/2016-17 dated Oct 06, 2016 & RBI circular RBI/2019-20/217 DOR. BP.BC.No.65/21.04.098/2019-20 dated Apr 17,2020) is 100%
The Bank has consistently maintained the LCR percentage well above the regulatory threshold limit. The average LCR for the quarter ended March 31, 2023 was 128% which is above the regulatory limit of 100%. For the quarter ended March 31, 2023 average HQLA stood at C 15,353 Crores.
Asset Liability Committee (ALCO) of the Bank is the primary governing body for Liquidity Risk Management, Treasury is entrusted with the responsibility of liquidity management within the Bank under the guidance of the ALCO. ALM Risk unit independently measures, monitors & report Liquidity Risk as per regulatory & internal guidelines.
I n computing the above information, certain estimates and assumptions have been made by the Bank's Management which have been relied upon by the auditors.
ii) Qualitative disclosure on Net Stable Funding Ratio (NSFR):
AU Bank, as per the RBI guideline on NSFR dated May 17, 2018, is required to maintain the NSFR on an ongoing basis. The minimum NSFR requirement set out in the RBI guideline effective October 1, 2021, is 100%. The Basel Committee on Banking Supervision (BCBS) had introduced the Net Stable Funding Ratio (NSFR) to ensure resilience over a longer-term time horizon by requiring banks to fund their activities with more stable sources of funding. NSFR is defined as the amount of available stable funding relative to the amount of required stable funding. Available stable funding (ASF) is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered by the NSFR, which extends to one year. The amount of stable funding required ("Required stable funding") (RSF) of a specific institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution as well as those of its off-balance sheet (OBS) exposures. The NSFR as on March 31, 2023 was at 125.68% (at 114.03% as on March 31, 2022).
c) Sale and Transfers to / from HTM Category
During the year ended March 31, 2023 and the previous year ended March 31, 2022 the Bank has not sold and transferred securities to or from HTM category exceeding 5% of the book value of investment held in HTM category at the beginning of the year. The 5% threshold referred to above does not include onetime transfer of securities to/from HTM category with the approval of Board of Directors permitted to be undertaken by banks as per extant RBI guidelines, sale of securities under pre-announced Open Market Operation (OMO) auction to the RBI and sale of securities or transfer to AFS / HFT consequent to the reduction of ceiling on SLR securities under HTM, Repurchase of Government Securities by Government of India from banks under buyback / switch operations, Repurchase of State Development Loans by respective state governments under buyback / switch operations and Additional shifting of securities explicitly permitted by the Reserve Bank of India as the case may be.
c) Overseas Assets, NPAs and Revenue
The Bank does not have any overseas branches and hence the disclosure regarding overseas assets, NPAs and revenue is not applicable (Previous Year: Nil).
d) Resolution of Stressed Assets - Revised Framework
The Bank is having Nil loan account for resolution of stressed Assets (Revised framework) as on March 31, 2023 (Previous year: Nil) as per RBI Circular RBI/2017-18/131DBR.No.BP.BC.101/21.04.048/2017-18 and RBI/2018-19/203 DBR.No.BP.BC.45/21.04.048/2018-19 as amended.
e) Divergence in the Asset classification and provisioning
RBI vide its Master Direction Ref. RBI/DOR/2021-22/83 DOR.ACC.REC.No.45/21.04.018/2021-22 dated August 30, 2021 and various amendments thereto (latest updated on February 20, 2023), has directed banks to make suitable disclosures, if either or both of the following conditions are satisfied:-
(a) the additional provisioning for NPAs assessed by RBI as part of its supervisory process, exceeds 10% of the reported profit before provisions and contingencies for the reference period, and
(b) the additional Gross NPAs identified by RBI as part of its supervisory process, exceed 10% of the reported incremental Gross NPAs for the reference period.
The Bank has not been subjected to any Annual Financial Inspection (AFI) by the RBI during the financial year 2021-22 and financial year 2022-23 in respect of financial year 2020-21 & 2021-22.
f) Disclosure of Transfer of Loan Exposures
i) Loans not in default: The bank has not transferred or acquired loans not in deafult during the Current and Previous year.
ii) Stressed loans transferred or acquired: The Bank has not transferred stressed Loans during the Current and Previous year.
The Credit Rating assigned to SR is NR3 - (75% - 100%) which is similar to previous rating.
Details of loans acquired: The Bank has not acquired any stressed loan during the year (Previous year: NIL)
g) Unhedged Foreign Currency Exposure
The RBI, through its master direction dated October 11, 2022, had advised banks to create incremental provision on standard loans and advances to entities with unhedged foreign currency exposure (UFCE). The Bank assesses the UFCEs of the borrowers through its credit appraisal and internal ratings process. The Bank also undertakes reviews of such exposures through thematic reviews evaluating the impact of exchange rate fluctuations on the Bank's portfolio on a yearly basis.
7 Derivatives
a) Forward Rate Agreement/ Interest Rate Swap
The bank has not entered into any Forward Rate Agreement or Interest rate swaps during the year ended March 31, 2023 and March 31, 2022.
b) Exchange Traded Interest Rate Derivatives
The bank has not entered into any exchange traded interest rate derivatives during the year ended March 31, 2023 and March 31, 2022.
c) Disclosures on Risk Exposure in Derivatives
The bank has not entered into any derivative instruments for trading / speculative purposes either in Foreign Exchange or domestic treasury operations during the year ended March 31, 2023 (Previous year: Nil).
d) Credit Default Swaps
The bank has not transacted in credit default swaps during the year ended March 31, 2023. (Previous year: Nil)
12 Penalties imposed by the RBI
During the year ended March 31, 2023 in terms of the provisions contained in the RBI circular Ref. DCM (RMMT) No.S153/11.01.01/2021-22 dated August 10, 2021 on “Monitoring of Availability of Cash in ATMs” and the subsequent addendum thereto, RBI has imposed penalties of C 0.048 crore on the Bank on account of Cash out in an ATM for more than 10 hours in a month (previous year: C 0.001 crore).
13 Disclosures on remuneration Qualitative Disclosures:
(a) Information relating to the composition and mandate of the Nomination and Remuneration Committee:
I n compliance of Companies Act 2013, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Banking Regulation Act 1949 and other guidelines as applicable, the Board of Directors has constituted Nomination and Remuneration Committee (NRC) to oversee the framing, review, and implementation of the Compensation Policy of the Bank. This Committee works in coordination with Risk Management Committee & Audit Committee of the Board, for achieving effective alignment between risk and remuneration.
As on March 31, 2023, the Nomination and Remuneration Committee consist of Non-Executive (Independent) Directors and the said composition is in line with the applicable guidelines.
The Composition of NRC committee is as follows:
• Mr. M S Sriram - Independent Director (Chairman)
• Mr. Pushpinder Singh - Independent Director
• Mr. H.R. Khan - Independent Director
• Ms. Malini Thadani - Independent Director
The roles and responsibilities of the Nomination and Remuneration Committee (NRC) are as under:
(i) Assist the Board in formulation and implementation of compensation policy and lay down the criteria for remuneration of Directors, Key Management Personnel (KMPs) and Senior Management Personnel (SMPs), Material Risk Takers (MRTs), Control Function Staff and other employees.
(ii) Take inputs from the Risk Management Committee of the Board to ensure balance between remuneration and risks as required. The Committee shall ensure that the mix of Fixed and Variable forms of compensation is consistent with risk alignment and objectives of the Bank.
(iii) Lay down the comprehensive criteria for assessment in terms of qualifications, positive attributes, independence, professional experience, track record, integrity and considering other parameters for appointment of Directors, KMPs and SMPs.
(iv) Develop policies and lay down criteria for appointment/removal/reappointment of the Directors on the Board capturing the statutory and regulatory requirements.
(v) Assist in defining the performance evaluation criteria for Directors and other KMPs and ensure that relationship of remuneration to performance is clear and meets appropriate performance benchmarks.
(vi) Ensure that the compensation policy formulated for remuneration of Directors, KMPs and SMPs is reasonable and sufficient to attract, retain and motivate quality talent required to run the Bank.
(vii) Ensure that the compensation for Directors, KMPs, SMPs is a mix of fixed and variable pay and such compensation reflects short and long-term performance objectives appropriate to the working and the goals of the Bank.
(viii) Ensure that appropriate procedures are in place to assess Board effectiveness and also provide the suggestions on governance to the Board of Directors.
(ix) Review and oversee the Employee Benefits programme of the Bank including deferred benefits and retirement plans.
(b) Information relating to the design and structure of remuneration processes and the key features and objectives of remuneration policy:
The Bank has formulated a Compensation Policy in alignment with the RBI guidelines, covering all components of compensation including fixed pay, perquisites, performance bonus, guaranteed bonus (joining / sign-on bonus), share-linked instruments such as Employee Stock Option Plan (ESOPs), retirement benefits such as Provident Fund and Gratuity, and below are the key features and objectives of the policy:
• Establish standards on compensation/ remuneration including fixed and variable pay covering share-linked instruments, which are in alignment with the applicable rules and regulations and is based on the trends and practices of remuneration prevailing in the industry.
• Retain, motivate, and promote talent and to ensure long term sustainability of talented Director, KMP, SMP, MRT, Control Function Staff and other employees as applicable.
• Define internal guidelines for payment of other reimbursement to the Directors and KMPs.
• Institutionalise a mechanism for the appointment/ removal/ resignation/evaluation of performance of Directors.
• Perform such functions as are required to be performed by the Nomination and Remuneration committee under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, including the following:
(a) administering the ESOP plans;
(b) determining the eligibility of employees to participate under the ESOP plans;
(c) granting options to eligible employees and determining the date of grant;
(d) determining the number of options to be granted to an employee;
(e) determining the exercise price under the ESOP plans and
• Ensure compliance with applicable laws, rules, and regulations as well as 'Fit and Proper criteria' of directors before their appointment.
(c) Description of the ways in which current and future risks are taken into account in the remuneration processes. It should include the nature and type of the key measures used to take account of these risks:
The Key parameters taken into account for the structuring of remuneration covering fixed pay and variable pay are mentioned below:
(i) Risk factors that are significant to the Banking operations of the Bank are taken into consideration in devising the remuneration structure and it is symmetric to the risk outcomes.
(ii) Compensation payout is scheduled in manner where sensitivity to time horizon of risks is taken into consideration in the review process.
(iii) Individual performance is reviewed on the basis of Key Responsibility Areas (KRAs) and the review is carried out under the Annual Performance Review (APR) of the Bank.
(iv) Industry Benchmarking, inflation and increase of cost of living.
In addition, it includes a 'malus' and 'clawback' option to take care of any disciplinary issue or future drop in performance of individual/ business/ Bank.
(d) Description of the ways in which the bank seeks to link performance during a performance measurement period with levels of remuneration:
Individual performances are assessed in line with business/ individual delivery of the Key responsibility Areas (KRAs), top priorities of business, budgets, and overall contribution to the organisation etc. The goal sheet is in place in Human Capital Management (HCM) Software and the evaluation of annual performance is carried out in the same.
In linking the performance and level of remuneration, the job roles, levels, business budgets, risk factors, achievement of individual KRAs are taken into consideration for taking decision in this regard.
(e) A discussion of the Bank’s policy on deferral and vesting of variable remuneration and a discussion of the Bank’s policy and criteria for adjusting deferred remuneration before vesting and after vesting:
In compliance of RBI Guidelines on Compensation of Whole Time Directors/ Chief Executive Officers/ Material Risk Takers and Control Function staff dated November 04, 2019 Bank has formulated Compensation Policy that covers all aspects of the compensation structure such as Fixed pay, Variable Pay and deferral pay.
The Variable Pay of senior executives, including WTDs, and other employees who are MRTs shall be deferred over the period so that compensation is adjusted for all types of risks that organisation may be exposed to.
The deferral period shall be a minimum of three years. This would be applicable for both the cash and non-cash components of the variable pay:
a) A minimum of 60% of the total variable pay must invariably be under deferral arrangements.
b) If cash component is part of variable pay, at least 50% of the cash bonus shall also be deferred and where the cash component of variable pay is under C 25 lakh in a year, deferral requirements shall not be applicable.
c) Deferred remuneration should either vest fully at the end of the deferral period or be spread out over the course of the deferral period. The first such vesting should be not before one year from the commencement of the deferral period and shall not take place more frequently than on a yearly basis.
d) The vesting should be no faster than on a pro rata basis.
The adjustment of Variable Pay before and after the vesting shall be considered in the event of subdued or negative financial performance of the bank and/or the relevant line of business in any year and the malus/clawback arrangements shall be invoked subject to due assessment.
(f) Description of the different forms of variable remuneration (i.e. cash, shares, ESOPs and other forms) that the bank utilises and the rationale for using these different forms:
The Variable pay consist of Cash, Share linked Instrument and same is decided considering risk factors, job profile, level of performance and industry norms to ensure that employee morale is high and to promote consistency in performance over the time horizon.
The breakup of variable remuneration is the follows:
Variable Pay: Variable pay compensation is paid depending upon the performance of the Employees against set key responsibility areas (KRAs) and it is ensured that there is a proper balance between fixed pay and variable pay while devising the remuneration structure.
(a) A substantial proportion of compensation i.e., at least 50%, should be variable and paid on the basis of individual, business performance & other parameters and this shall not be applicable on risk control function staff.
(b) In case variable pay is:
• Up to 200% of the fixed pay, a minimum of 50% of the variable pay should be via noncash instruments.
• Above 200%, a minimum of 67% of the variable pay should be via non-cash instruments.
• shall be limited to a maximum of 300% of the fixed pay; (for the relative performance measurement period).
(c) In the event that an executive is barred by statute or regulation from grant of share-linked instruments, his/her variable pay will be capped at 150% of the fixed pay but shall not be less than 50% of the fixed pay.
(d) The deterioration in the financial performance of the Bank shall generally lead to a contraction in the total amount of variable compensation, which can even be reduced to zero and the proportion of variable pay shall be higher depending on the higher responsibility at higher level.
Share-linked Instruments: Share-linked Instruments consisting of ESOPs or other linked instruments which shall be forming part of variable pay.
Definitions of certain items in Business ratios / information:
1. Working funds to be reckoned as monthly average of total assets (excluding accumulated losses, if any) as reported to Reserve Bank of India in Form X under Section 27 of the Banking Regulation Act, 1949.
2. Operating profit = (Interest Income Other Income - Interest expenses - Operating expenses).
3. Return on Assets has been calculated on yearly average of total assets.
4. “Business” is the total of monthly average of net advances and deposits (net of inter-bank deposits).
5. Productivity ratios (Business per employee and Profit per employee) are based on monthly average of employees count.
6. Net Interest Margin is Net Interest Income/ Average Earning Assets. Net Interest Income= Interest Income - Interest Expense and Average Earning Assets is yearly average of total of net advances, invetments, balance with banks and money at call and short notice and Balances with Reserve Bank of India in Other Account.
7. Cost of Deposit is calculated based on weighted average interest rate of deposits.
The Bank has compiled the data for the purpose of this disclosure from its internal MIS system/reports and
has been relied upon by the auditors.
f) Implementation of IFRS converged Indian Accounting Standards (Ind AS)
As per the RBI circular RBI/2015-16/315 DBR.BP.BC. No.76/21.07.001/2015-16 dated February 11, 2016 Implementation of Indian Accounting Standards (Ind AS), The banks are advised to follow the Indian Accounting Standards as notified under the Companies (Indian Accounting Standards) Rules, 2015, subject to any guideline or direction issued by the the Reserve Bank in this regard. The Banks in India currently prepare their financial statements as per the guidelines issued by the RBI, the Accounting Standards notified under section 133 of the Companies Act, 2013 and generally accepted accounting principles in India (Indian GAAP). In January 2016, the Ministry of Corporate Affairs issued the roadmap for implementation of new Indian Accounting Standards (Ind AS), which were based on convergence with the International Financial Reporting Standards (IFRS), for scheduled commercial banks, insurance companies and non-banking financial companies (NBFCs). In March 2019, RBI deferred the implementation of Ind AS for banks till further notice as the recommended legislative amendments were under consideration of Government of India. The Bank had undertaken preliminary diagnostic analysis of the GAAP differences between Indian GAAP vis-a-vis Ind AS and shall proceed for ensuring the compliance as per applicable requirements and directions in this regard.
7 Small and Micro industries
Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. There have been no reported cases of delays in payments to micro and small enterprises or of interest payments due to delays in such payments. The above is based on the information available with the Bank which has been relied upon by the auditors.
8 Proposed Dividend
The Board of Directors at their meeting held on April 25, 2023, proposed a dividend of C 1 per share at 10% for the year ended March 31, 2023 (previous year: C 1 per share at 10% (pre-bonus issue) or C 0.50 per share at 5% (post-bonus issue)) subject to the approval of the shareholders at the ensuing Annual General Meeting. The effect of the proposed dividend has been considered in determination of capital adequacy ratio.
9 Bonus Shares
The Bank has allotted 31,50,93,233 fully paid up equity shares of face value C 10/- each, in ratio of one equity share for every equity share held, during the year ended March 31, 2023, pursuant to a bonus issue approved by the shareholders vide Postal Ballot on May 29, 2022, by capitalisation of share premium.
10 As part of the normal banking business, the Bank grants loans and advances to its borrowers with permission to lend/invest or provide guarantee/security in other entities identified by such borrowers or on the basis
of the basis of security/guarantee provided by the co-borrower. Similarly, the Bank may accept funds from its customers, who may instruct the Bank to lend/invest/provide guarantee or security or the like against such deposit in other entities identified by such customers. These transactions are part of Bank's normal banking business, which is conducted after exercising proper due diligence including adherence to “Know Your Customer” guidelines.
Other than the nature of transactions described above:
• No funds have been advanced or loaned or invested by the Bank to or in any other person(s) or entity(ies) (“Intermediaries”) with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Bank (Ultimate Beneficiaries).
• The Bank has not received any fund from any party(s) (Funding Party) with the understanding that the Bank shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Bank (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
11 The Bank continues to monitor the developments / impact including those arising from COVID-19 pandemic. As at March 31, 2023, the Bank carries a floating provision of C 41.00 crore and additional contingency provision of C 125.73 crore which includes the additional provision for the accounts restructured under RBI COVID Resolution framework. The Bank holds an aggregate provision of C 861.88 crore against advances (Other than standard assets provision of C 270.96 crore).
12 Micro, Small and Medium Enterprises (MSME) sector - Restructuring of Advances
The Bank has restructured the account as per RBI Circular DBR.No.BP.BC.100/21.04.048/2017-18 dated February 07, 2018, DBR.No.BP.BC.108/21.04.048/2017-18 dated June 06, 2018, DBR.No.BP.BC.18/21.04.048/2018-19 dated January 01, 2019, DOR.No.BP.BC.34/21.04.048/2019-20 dated February 11, 2020 and DOR.No.BP. BC/4/21.04.048/2020-21 dated August 06, 2020.
13 Disclosures on Change in Ownership of Projects Under Implementation:
The Bank does not have any account which are currently under the scheme of Change in Ownership of Projects Under Implementation as on March 31, 2023 (Previous year: Nil).
14 Inter-bank Participation with risk sharing:
During the year the Bank has not entered into any inter-bank participation with risk sharing (Previous year: Nil).
15 Investor education and protection fund
There is no amount required to be transferred to Investor Education and Protection Fund by the Bank. (Previous year: Nil)
16 Miscellaneous income comprises recoveries from loans written off, income from dealing in Priority Sector Lending Certificates (PSLC) etc.
18 The Code on Social Security, 2020
The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and postemployment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
Part B: Geographic segments
The business of the Bank is in India only. Accordingly, geographical segment is not applicable.
Business Segments have been identified and reported taking into account the target customer profile, the nature of products and services, the differing risks and returns, the organisation structure, the internal business reporting system and guidelines prescribed by the RBI and in compliance with the Accounting Standard 17 -“Segment Reporting”. The RBI vide its circular dated April 7, 2022 on establishment of Digital Banking Units (DBUs), has prescribed reporting of Digital Banking Segment as a sub-segment of Retail Banking Segment. The Bank is in the process of setting up DBUs and hence no Digital Banking Segment disclosure have been made. The business operations of the Bank are in India and for the purpose of segment reporting as per Accounting Standard-17 (Segment reporting) the bank is considered to operate only in domestic segment.
The Bank has allotted 31,50,93,233 fully paid up equity shares of face value C 10/- each, in ratio of one equity share for every equity share held, during the year ended March 31, 2023, pursuant to a bonus issue approved by the shareholders vide Postal Ballot on May 29, 2022, by capitalisation of share premium. Consequently, the earnings per share have been adjusted for previous periods / year presented in accordance with Accounting Standard 20 - Earnings per share.
(b) Defined contribution plans Provident fund
The Bank makes Provident Fund contributions to a defined contribution retirement benefit plans for qualifying employees. Under the schemes, the bank is required to contribute a specified percentage of the payroll costs to the Provident Fund Commissioner to fund the benefits.
The Bank recognised C 68.09 Crore (previous year C 51.27 Crore) for provident fund contributions in the Profit and Loss Account. The contributions payable to these plans by the Bank are at rates specified in the rules of the schemes.
(c) Compensated absences
The Bank has provided for compensatory leaves which can be availed and not encashed as per policy of the Bank as present value obligation of the benefit at related current service cost measured using the Projected Unit Credit Method on the basis of an actuarial valuation. The Bank has accordingly reversed C 21.71 Crore (previous year booked C 12.83 Crore) in the books of accounts for the year.
27 Comparative figures
Figures for the previous year have been regrouped and reclassified wherever necessary to conform to the current year's presentation.
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