13. ACCOUNTING FOR PROVISIONS,
CONTINGENT LIABILITIES AND
CONTINGENT ASSETS
In accordance with Accounting Standard 29, "Provisions,
Contingent Liabilities and Contingent Assets”, issued by
the Institute of Chartered Accountants of India, the Bank
recognizes provisions when it has a present obligation as
a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required
to settle the obligation and when a reliable estimate of the
amount of the obligation can be made.
Provisions are determined based on management estimate
required to settle the obligation at the balance sheet date,
supplemented by experience of similar transactions. These
are reviewed at each balance sheet date and adjusted to
reflect the current management estimates. In cases where
the available information indicates that the loss on the
contingency is reasonably possible but the amount of loss
cannot be reasonably estimated, a disclosure is made in the
financial statements.
Contingent Assets, if any, are not recognized or disclosed in
the financial statements.
b) Capital and Reserves:
• During FY 2026, the Bank has neither raised equity capital nor issued any Basel III Compliant Additional Tier I Bonds.
• The paid-up capital of the Bank stands at ?19,256.59 Crore as on March 31st, 2026. The Government of India shareholding
stands at 92.44% as on March 31st, 2026.
• During the Financial Year 2025-26, Bank has issued Basel III Tier II Bonds (Series VI) aggregating to ?1000 Crore through
Private Placement basis subscribed by Qualified Institutional Buyers (QIBs).
b) Liquidity coverage ratio (LCR)
RBI introduced the Liquidity Coverage Ratio (LCR) vide circular No. RBI/2014-15/529 DBR. No. BP.BC.80/21.06.201/2014-15
dated March 31,2015 which has been modified from time to time, in order to ensure short term resilience of banks to potential
liquidity disruptions by ensuring that bank have sufficient high quality liquid assets (HQLA) to survive an acute stress scenario
lasting for 30 days. The minimum LCR requirement set out in the RBI guidelines for the banks is 100%.
Composition of HQLA:
In the stock of high-quality liquid assets (HQLA), there are two categories of assets, viz. Level 1 and Level 2 assets. Level 2
assets are sub-divided into Level 2A and Level 2B assets on the basis of their price-volatility. Each category includes assets
which the bank is holding on the first day of the stress period. Level 1 assets are with 0% haircut while in Level 2, 2A assets
are with a minimum 15% haircut and Level 2B Assets, with a minimum 50% haircut.
Main drivers of LCR:
The Bank on a consolidated basis, during the three months ended March 31, 2026, had maintained average HQLA (after
haircut) of ?94,248.85 crore. The HQLA is primarily driven by government securities in excess of minimum SLR, Government
securities within the mandatory SLR requirement, to the extent allowed by RBI under MSF and the Facility to Avail Liquidity
for Liquidity Coverage Ratio. Also, cash, excess CRR maintained with RBI. Level 2 HQLA primarily consisted of AA- and above
rated corporate bonds and commercial papers.
Intra-period changes as well as changes over time:
LCR on consolidated basis were 122.01% and 121.98% for the quarter ended March 2026 and December 2025 respectively
as against the regulatory requirement of 100%. The details of the average LCR on consolidated basis for the last four quarters
are as follows:
Concentration of Funding Sources
A significant counterparty is defined as a single counterparty or a group of connected or affiliated counterparties accounting
in aggregate for more than 1% of the Bank's total liabilities.
There was no significant counterparty deposit as on 31st March 2026.
A significant instrument/product is defined as a single instrument or product, or a group of similar instruments/products,
which in aggregate account for more than 1% of the Bank's total liabilities. Examples of funding instruments/products include
wholesale deposits, certificates of deposit, longterm bonds, etc.
Currency Mismatch in the LCR
As per RBI guidelines, the Liquidity Coverage Ratio (LCR) standard is required to be met on a single-currency basis. However, in
order to better capture potential currency-specific liquidity risks, LCR in each significant currency is required to be monitored.
Accordingly, the Bank monitors LCR on a daily basis in INR and compares the same against the regulatory requirement. In
addition, for other significant currencies—defined as those in which aggregate liabilities denominated in that currency amount
to 5 per cent or more of the Bank's total liabilities. The aggregate liabilities of any significant currency other than INR are less
than 5% of the bank's total liabilities.
Derivative Exposures and Potential Collateral Calls
The Bank's average net derivative cash outflow for the next 30 days as on 31st March 2026 is ?170.82 Crore.
Degree of Centralization of Liquidity Management and Interaction Between Group Entities
Liquidity Management in the Bank is driven by the ALM Policy of the Bank and regulatory prescriptions. The Domestic and
Overseas Centres are reporting to the Asset Liability Management Committee (ALCO). The ALCO has been empowered by the
Bank's Board to formulate the Bank's funding strategies to ensure that the funding sources are well diversified and is consistent
with the operational requirements of the Bank. All the major decisions of ALCO are being reported to Risk Management
Committee of Board (RMCB) periodically. In addition to daily/monthly LCR reporting, Bank prepares daily Structural Liquidity
statements to assess the liquidity needs of the Bank on an ongoing basis.
The Bank does not have any group entities. Accordingly, the disclosure pertaining to interaction between group entities is not
applicable. Liquidity management is carried out at the Bank level in accordance with the Bank's ALM Policy and applicable
regulatory guidelines.
e) Divergence in asset classification and provisioning
Disclosure on divergence in asset classification and provisioning for NPAs is not required with respect to RBI's supervisory
process for the year ended 31st March 2025, based on the conditions mentioned in Master Directions RBI/DOR/2025-26/167
DOR. ACC.REC. No.86/21.04.018/2025-26 dated 28.11.2025 on Reserve Bank of India (Commercial Banks -Financial
Statements: Presentation and Disclosures) Directions, 2025.
The exposure to Capital Market of ?1,375.81 crore is within the limit of ?9,159.32 crore (i.e. 40% of Bank's Net worth of
?22,898.30 crore as on March 31, 2025).
The direct exposure to Capital Market of ?964.52 crore is within the limit of ?4,579.66 crore (i.e. 20 % of the Bank's net worth
of ?22,898.30 crore as on March 31, 2025).
g. Unhedged foreign currency exposures
The Bank has a Board-approved policy for management of risks arising from Unhedged Foreign Currency Exposure (UFCE) of
borrowers, in line with RBI guidelines. The policy provides a comprehensive framework for identification, measurement, and
monitoring of currency-induced credit risk, including assessment of potential loss arising from exchange rate volatility based
on FEDAI-prescribed parameters and its impact on borrowers' earnings (EBID). The Bank obtains UFCE declarations from
borrowers on a quarterly basis, with annual certification by statutory auditors, and evaluates the extent of financial and natural
hedging in place. Based on the level of unhedged exposure and the resultant potential loss to EBID, incremental provisioning
(ranging up to 80 bps) and additional capital requirements are computed and maintained in accordance with regulatory norms.
The Bank also undertakes periodic monitoring, including more frequent assessment during periods of heightened exchange
rate volatility, to ensure prudent management of currency-induced credit risk.
Based on the available financial results and the declaration from borrowers, the Bank has estimated the liability towards
Unhedged Foreign Currency Exposure to their constituents in terms of RBI/DOR/2025-26/157.DOR.CRE.REC.76/07-02-
001/2025-26 dated November 28, 2025 and the Bank holds provision of ?19.12 Crores as on March 31, 2026.
d. Disclosures on risk exposure in derivatives
i) Qualitative disclosures
The Bank uses Interest Rate Swaps (IRS), Currency Swaps
and Options for hedging purpose to mitigate interest rate
risk and currency risk in banking book. Such transactions
are entered only with Clients and Banks having agreements
in place.
a) The Market Risk Management Policy of the Bank
allows using of derivative products to hedge the risk
in Interest/Exchange rates that arise on account of
overseas borrowing/FCNR(B) portfolio/the asset liability
mismatch, for funding overseas branches etc.
b) The Bank has a system of evaluating the derivatives
exposure separately and placing appropriate credit lines
for execution of derivative transactions duly reckoning
the Net Worth and security backing of individual clients.
c) The Bank has set in place appropriate control systems
to assess the risks associated in using derivatives as
hedge instruments and proper risk reporting systems
are in place to monitor all aspects relating to derivative
transactions. The Derivative transactions were
undertaken only with the Banks and counterparties
well within their respective exposure limit approved
by appropriate credit sanctioning authorities for each
counter party.
d) The Bank has set necessary limits in place for using
derivatives and its position is continuously monitored.
e) The Bank has a system of continuous monitoring appraisal
of resultant exposures across the administrative
hierarchy for initiation of necessary follow up actions.
f) Derivatives are used by the Bank to hedge the Bank's
Balance sheet exposures.
g) The income from such derivatives are amortized and
taken to profit and loss account on accrual basis over
the life of the contract. In case of early termination of
swaps undertaken for Balance Sheet Management,
income on account of such gains would be recognized
over the remaining contractual life of the swap or life of
the assets/liabilities whichever is lower.
h) All the hedge transactions are accounted on accrual
basis. Valuations of the outstanding contracts are done
on Mark to Market basis. The Bank has duly approved
Risk Management and Accounting procedures for
dealing in Derivatives.
i) The derivative transactions are conducted in accordance
with the extant guidelines of Reserve Bank of India.
Risk Management policies pertaining to derivatives with
particular reference to the extent to which derivatives are
used, the associated risks and business purposes served.
Also, to include
a) The structure and organization for management of risk
in derivatives trading.
b) The scope and nature of risk measurement, risk
reporting and risk monitoring systems.
c) Policies for hedging and/or mitigating risk and
strategies and processes for monitoring the continuing
effectiveness of hedges/mitigants; and
d) Accounting policy for recording hedge and non¬
hedge transactions; recognition of income, premiums
and discounts; valuation of outstanding contracts;
provisioning, collateral and credit risk mitigation.
The Bank uses Rupee Interest Rate Swaps (IRS) for hedging
purpose to mitigate interest rate risk in Govt. Securities and
to reduce the cost of Subordinated Debt. In addition, the
bank also enters into rupee interest rate swaps for trading
purposes as per the policy duly approved by the Board. Swap transactions are entered only with Banks having ISDA agreements
in place.
a) The bank has put in place an appropriate structure and organization for management of risk, which includes Treasury
Department, Asset Liability Management Committee and Risk Management Committee of the Board.
b) Derivative transactions carry Market Risk (arising from adverse movement in interest rates), Credit risk (arising from
probable counter party failure), Liquidity risk (arising from failure to meet funding requirements or execute the transaction
at a reasonable price), Operational risk, Regulatory risk and Reputation risk. The Bank has laid down policies, set in place
appropriate control systems to assess the risks associated in using derivatives and proper risk reporting and mitigation
systems are in place to monitor all risks relating to derivative transactions. The IRS transactions were undertaken with
only Banks as counter party and well within the exposure limit approved by the Board of Bank for each counter party.
c) Derivatives are used by the bank for trading and hedging. The bank has an approved policy in force for derivatives and
has set necessary limits for the use of derivatives and the position is continuously monitored. The value and maturity
of the hedges which are used only as back to back or to hedge bank's Balance Sheet has not exceeded that of the
underlying exposure.
d) The accounting policy for derivatives has been drawn up in accordance with RBI guidelines, as disclosed in Schedule
17 - Significant Accounting Policies (Point No.6)
1. Working funds reckoned as average of Total Assets (Excluding accumulated losses, if any) as reported to Reserve Bank
of India in Form X, during the12 months of the Financial Year.
2. Net Interest Income/Average Earning Assets. Net Interest Income= Interest Income - Interest Expense
3. Return on Assets would be with reference to average working funds (i.e. total of assets excluding accumulated losses,
if any).
4. For the purpose of computation of Business per Employee (Deposit plus Advances) inter Bank Deposits are excluded.
f. Implementation of IFRS converged Indian Accounting Standards (Ind AS)
As per RBI guidelines, Bank is in the process of implementing Ind AS (Indian Accounting Standards). RBI vide Circular DBR.
BP.BC.No.29/21.07.001/2018-19 dated 22nd March 2019 has deferred implementation of Ind AS for all Scheduled Commercial
Banks till further notice. However, RBI requires all banks to submit Proforma Ind AS Financial Statements every half-year. As per
RBI directive, a project Steering Committee headed by Executive Director has been formed for monitoring of Implementation
of Ind AS in the Bank. Bank is submitting Ind AS Proforma Financial Statements to RBI on half yearly basis regularly after
approval of Project Steering Committee.
h. Disclosure on unamortised Pension/Family Pension and Gratuity liabilities of Employees of Bank
1. Pension:
Unamortized Pension/Family pension liabilities as on March 31,2026 is NIL.
2. Gratuity:
Unamortised gratuity liabilities as on March 31, 2026, is NIL.
Provision for the employee benefits pertaining to Pension, Gratuity & Leave encashment have been made on the basis of
Actuarial Valuation.
i. Letters of Comfort (LoC)
Banks disclose the full particulars of all the letters of comfort (LoCs) issued during the year, including its assessed financial
impact, as also assessed cumulative financial obligations under the LoCs issued in the past and outstanding, in the published
financial statements, as part of the "Notes to Accounts”
Cumulative position of LOC's outstanding as on March 31,2026:
1. During the year 2009-10, the Bank has issued a Letter of Comfort (LoC) undertaking to maintain a minimum CRAR of 12%
in respect of Bangkok branch and to arrange to convert retained earnings to capital funds and/or infuse further capital
in order to restore the CRAR to a minimum of 12%, subject to approval from Reserve Bank of India. The assigned capital
of Bangkok Branch stands at THB 2,20,00,00,000(23%) as on March 31st, 2026.
In the worst-case scenario of the entire textile exposure of the branch becoming NPA. Branch has to make additional
provision to the extent of THB 1.644 Mio being unsecured portion of standard textile advances. If this contingency arises,
there would be no additional capital to be remitted as existing reserves are adequate to cover the unsecured amount.
2. During the year 2010-11, the Bank has issued a letter of Comfort favoring Bank Negara Malaysia. The Bank in association
with other Joint Venture partners will provide support to India International Bank (Malaysia) Berhad in funding, business
and other matters as and when required and ensure that it complies with the requirements of the Malaysian laws,
regulations and policies in the conduct of its business operations and management. The financial impact of the letter of
Comfort issued to bank Negara Malaysia is to the tune of our share of 35% of the paid-up capital of MYR 330 Mio i.e.,
MYR 115.500 Mio. As of 31.12.2025, the entire book value of investment in IIBMB has been realized as part of voluntary
winding up. IIBM therefore is no longer a Joint venture in the books of our Bank.
3. Based on the host country regulator's guidelines, Bank has issued letter of Comfort favoring CBSL at its meeting held
on 12.09.2019 for meeting all obligations and liabilities arising out of business carried on by IOB Srilanka Branch.
DISCLOSURES UNDER ACCOUNTING STANDARDS1. Accounting Standard 5 - Net Profit or Loss for the period, prior period items and changes in
accounting policies
The financial statements have been prepared following the same accounting policies and practices as those followed for the
year ended March 31, 2025.
During the year, there were no material prior period income/expenditure items.
2. Accounting Standard 9 - Revenue Recognition
Revenue has been recognized as described in item No. 2 of Significant Accounting Policies - Schedule 17.
4. Accounting Standard 15 - Employee Benefits
The Bank had adopted Accounting Standard 15 (Revised) "Employees Benefits” issued by the Institute of Chartered
Accountants of India.
1. Short-Term Employee Benefits:
The undiscounted amounts of short-term employee benefits, such as medical benefits which are expected to be paid in
exchange for the services rendered by employees, are recognized during the period when the employee renders the service.
2. Long-Term Employee Benefits:
The summarized position of Post-employment benefits and long term employee benefits recognized in the Profit & Loss
Account and Balance Sheet as required in accordance with Accounting Standard - 15 (Revised) are as under:
(i) The financial assumptions considered for the calculations are as under:
Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on the date of
valuation (Balance sheet dated 31.03.2026).
Expected Rate of Return: The Overall expected rate of return on assets is determined based on the market prices prevailing
on that date applicable to the period over which the obligation is to be settled.
Bank's best estimate expected to be paid in next Financial Year for Gratuity is ?64.80 crores.
II) Defined Contribution Plan:
The Bank has a Defined Contribution Pension Scheme (DCPS) applicable to all categories of officers and employees joining
the Bank on or after 1st April 2010. The Scheme is managed by NPS Trust under the aegis of the Pension Fund Regulatory and
Development Authority. National Securities Depository Limited has been appointed as the Central Record Keeping Agency
for the NPS. During FY 2025-26, the Bank has contributed ?201.59 Crore (Previous Year ?186.95 Crore).
The estimate of future salary increases, considered in actuarial valuation, take into account actual return on plan assets,
inflation, seniority, promotion and other relevant factors, such as supply and demand in employee market. Such estimates
are very long-term and are not based on limited experience/immediate future. Empirical evidence also suggests that in very
long-term, consistent high salary growth rates are not possible. The said estimates and assumptions have been relied upon
by the auditors.
In respect of overseas branches, disclosures if any required for Employee Benefit Schemes are not made in the absence
of information.
5. Accounting Standard 17 - Segment Reporting
Segment Identification
A. Primary (Business Segment): The following are the primary segments of the Bank.
As per RBI guidelines and in compliance with the applicable Accounting Standards, the Bank has classified Treasury Operations,
Corporate/Wholesale Operations, Retail Operations and Other Banking Operations as primary business segments, Domestic
and International as secondary/geographic segments for the purpose of compliance with AS-17 on Segment Reporting issued
by ICAI.
i. Treasury: The Treasury Segment includes the entire investment portfolio and trading in foreign exchange contracts
and derivative contracts. The revenue of the treasury segment primarily consists of fees and gains or losses from trading
operations and interest income on the investment portfolio.
ii. Corporate/Wholesale Banking: As per the RBI guidelines RBI/2020-21/53, DOR.No.BP.BC.23/21.06.201/2020-21, dated
12th October 2020, the Corporate/Wholesale Banking segment comprises the lending activities of borrowers having
exposure of ?7.50 Crores and above.
iii. Retail Banking: In compliance with RBI Circular RBI/DOR/2025-26/167 DOR.ACC.REC.No.86/21.04.018/2025-26 dated
November 28, 2025, on Presentation & Disclosure, Retail Banking shall include exposures which fulfil the four criteria of
orientation, product, granularity, and low value of individual exposures for retail exposures laid down in Reserve Bank of
India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025. Individual housing loans will also
form part of Retail Banking segment for the purpose of reporting under AS-17.
iv. Digital Banking: For reporting of Digital Banking Segment as a sub-segment of Retail Banking Segment under
Accounting Standard - 17 "Segment Reporting”, bank has reported Digital Banking Segment as a sub-segment of Retail
Banking Segment.
v. Other Banking Operations: Segments not classified under (i) to (iv) above are classified under this primary segment.
B. Secondary (Geographical Segment)
i. Domestic Operations - Branches/Offices having operations in India.
ii. Foreign Operations - Branches/Offices having operations outside India and offshore banking units having operations
in India.
C. Basis of Allocation:
i. Segment Assets and Liabilities have been apportioned on the basis of respective Segment Assets as allocated, wherever
direct allocation is not possible
ii. Segment wise income and expenditure which are not directly allocable have been allocated to the reportable segments
based on assumptions as considered appropriate by the management.
No Disclosure is required in respect of related parties, which are "State-controlled enterprises” as per paragraph 9 of accounting
standard (AS-18). Further, in terms of paragraph 5 of AS-18, transactions in the nature of banker-customer relationship have
not been disclosed including those with Key Management Personnel and Relatives of Key Management Personnel.
There are no materially significant related party transactions to report during the year
7. Accounting standard 19: Lease
• Operating lease primarily comprises Office premises, which are renewable at the option of the Bank, normally, at the end
of every 10th year
• As per the information available, non-cancellable lease as on 31.03.2026: NIL
• The amount of lease payment recognised in P & L Account for operating lease is as below:
During the current financial year, the Bank has exercised the option to transition to lower tax rate regime (New Tax Regime)
i.e. 25.168% permitted under section 115BAA of the Income Tax Act ,1961 as against existing tax rate of 34.944% under old
tax regime. The Deferred Tax asset has been remeasured accordingly.
Tax expense for the year amounting to ?1,059.99 crore includes Current Tax expense for overseas branches of ?9.85 crore
and Deferred Tax expense of ?1,050.14 crore.
Tax paid in advance (Net of provisions) is on account of amounts pending assessment/under appeal/tax paid under dispute.
[Refer Schedule 11(iii)].
Deferred Tax:
The Bank has a carried balance of net Deferred Taxes up to March 31,2026 aggregating to ?2,780.97 crore which was recognized
in earlier periods. Bank has reversed deferred Tax Asset amounting to ?1,050.14 crore for the year ended 31.03.2026.
The Bank has branches/offices having operations outside
India in Singapore, Hong Kong, Colombo and Bangkok.
Pillar Two legislation is enacted or substantively enacted in
all countries but not yet in effect in Sri Lanka (for Colombo
Branch). For FY 2025-26, these foreign branches have not
paid any taxes under Pillar Two Legislation. Bank is in the
opinion that, since there is no top-up tax obligation under
pillar two norms, no portion of Bank's profit are subject to
pillar two income.
Disputed Taxes
Taking into consideration the decisions of Appellate
Authorities, certain judicial pronouncements and the opinion
of tax experts, no provision is considered necessary in respect
of disputed and other demands of income tax aggregating
?4,631.56 Crore (previous year ?4,061.92 Crore), Service
Tax aggregating to ?273.37 Crore (previous year ?256.24
crore) and Goods and Service Tax aggregating to ?1,613.47
Crore (Previous year ?1,615.29 crores).
10. Accounting Standard-23 - Accounting for
Investments in Associates in Consolidated
Financial Statements
The Bank presently holds 35% of equity of the newly formed
entity "Odisha Grameen bank” effective May 01,2025 and
the same is recognised as "Associate”. The investment in
Associate has been accounted for under equity method as
per AS 23 (Accounting for Investment in Associates) and
accordingly, the carrying amount of investment in equity
shares of ?1,195.98 Crores is adjusted against lOB's share
of net assets of ?671.50 Crores and the balance of ?524.48
Crores is adjusted against balance in Reserves and Surplus
to recognize the decline in the value.
The Bank has made fresh equity investment of ?6.50 Crores on
02.07.2025 in M/s Acer Credit Rating Private Limited which is
corresponds to a 26% shareholding in the Company, pursuant
to which the company has been recognised as an "Associate”
under applicable accounting standards. The investment in
Associate has been accounted for under equity method as
per AS 23 (Accounting for Investment in Associates) and
accordingly, the carrying amount of investment in equity
shares of ?6.50 Crores is adjusted against lOB's share of
net assets of ?6.32 Crores and the audited balance of ?0.18
Crores is adjusted against balance in Reserves and Surplus
to recognize the increase in value.
11. Accounting Standard 24 - Discontinuing
Operations
India International Bank (Malaysia) Berhad (IIBM), was joint
venture of the Bank and was under members voluntary
Liquidation (MVL). During the year, the Bank received USD
25,717,298.33(equivalent to ?230.88 crores) towards capital
distribution/repatriation, against its original investment of
?199.58 crores. Accordingly, the entire book value of the
investment has been realized, and the provision of ?6.13
crores held against the investment has been reversed. IIBM
is no longer a joint venture in the books of the bank.
12. Accounting Standard 26 - Intangible Assets
The software acquired by the Bank for core Banking systems
and other services relating to Information Technology
department are being capitalised under intangible assets
and are amortized over 3 years.
13. Accounting Standard 27 - Financial Reporting
of Interest in Joint Venture
India International Bank (Malaysia) Berhad (IIBM), was joint
venture of the Bank and was under Members Voluntary
Liquidation (MVL).During the year,the Bank received USD
25,717,298.33 (equivalent to ?230.88 crore) towards capital
distribution/repatriation, against its original investment of
?199.58 crore. Accordingly, the entire book value of the
investment has been realized, and the provision of ?6.13
crore held against the investment has been reversed. IIBM
is no longer a joint venture of the Bank.
The Bank is holding 18.06% in Universal Sompo General
Insurance Company Ltd. Since the shareholding in the
Company is less than 25%, the same has not been considered
as Joint Venture for preparation of Consolidated Financial
Results as per extant RBI guidelines.
2. Lien Marked deposits as on 31.03.2026 for deposits held under lien is ?16,603.93 crores (previous year ?5,439.48 crores)
against Loan, LG, LC and attached by Govt. authorities.
3. Details of Single Borrower Limit (SBL) , Group Borrower Limit (GBL) exceed by the Bank:
Domestic:
• Banks Tier 1 capital as on 31.03.2025 is ?27,897.09 crore. as per LEF norms as on 31.03.2025, 20% of tier 1 capital
is ?5,579.42 crore and 25% of tier1 capital is ?6,974.27 crore.
• There is no breach under single counter party exposure as per Tier 1 capital ie., ?27,897.09 crore as on 31.03.2025.
• There are no breaches in any account under Group counter party exposure as per Tier1 capital i.e., ?27,897.09 crore
as on 31.03.2025 and all the accounts are within 25% of Tier 1 capital.
As of 31.03.2026, the above accounts are within the SBL
and GBL limits except serial no. 2 which exceeds the SBL
but however it is within the GBL.
4. Investments:
i In respect of investments held above the face value,
premium of ?102.72 Crore was amortized during the year
(previous year ?82.20 Crore). During the financial Year,
an amount of ?286.80 Crore was accrued as discount on
investments held below the face value (previous ?295.23
crore). These are accounted in Interest Income as per the
extant directions of Reserve Bank of India.
ii Further, a sum of ?4,100.00 Crore (Face Value) being
non-Interest bearing GOI Recapitalization Bonds are
maturing from March 2031 to March 2036 and held
under Held to Maturity category. They are valued as
per the extant directions of RBI and discounted on
monthly intervals. During the financial Year, an amount of
?184.74 Crore was accrued as discount on these non¬
Interest bearing GOI Recapitalization Bonds (Previous
year ?185.08 Crore). As on 31.03.2026, the carrying
cost of these bonds is ?2,738.68 Crore as against
?2,553.94 Crore as on the date of 31.03.2025.
iii Securities of Face Value for ?1,017.00 Crore (previous
year ?517.00 Crore) towards CCIL Settlement Guarantee
Fund/Default Fund and securities for ?12,268.00 Crore
(previous year ?12,918.00 Crore) towards collateral for
borrowing under TREPS/Default Fund have been kept with
Clearing Corporation of India Limited. Besides, securities
to the extent of ?132.10 Crore (previous year ?132.10
Crore) has been lodged with CCIL towards default fund
for Forex operations and ?15.00 Crore (previous year
?15.00 Crore) held for Currency derivative segment. The
Bank has placed securities of face value ?3,000.00 Crore
(previous year ?3,000.00 Crore) with Reserve Bank of
India for intraday borrowing. The Bank has also placed
Securities to the extent ?7,200.00 Crore (previous year
?17,500.00 Crore) with Reserve Bank of India for our
borrowing under the LAF window.
iv The Bank sold Government Securities from HTM category
during the year, both outright and under Reserve Bank
of India's Open Market Operations (OMO). The extent of
sale by the Bank under OMO was ?5,150.11 Crore (BV)
[previous year: ?680.67 Crore] and earned a profit of
?64.83 Crore [previous year: ?4.72 Crore]. The Bank has
also sold Government Securities (other than OMO), to the
extent of ?1,337.06 Crore (BV) [previous year ?3,991.33
Crore] (within 5%, prescribed limit of Reserve Bank of
India) and booked a profit of ?23.05 Crore [previous year
?51.74 Crore]. In accordance with the RBI guidelines the
profit on sale of Securities under HTM category has
been taken to Profit & Loss account of ?87.88 Crore
[previous year ?56.46 Crore] and subsequently has been
appropriated to capital reserve account (Net of taxes and
amount to be transferred to Statutory Reserve).
5. Fixed Assets (Property, Plant and Equipment)
The Profit on sale of assets during the year was ?2.02 crore
out of which an amount of ?1.52 crore has been transferred
to capital reserve as per the consistent practice followed by
the Bank.
6. Inter Branch Reconciliation/internal office
accounts
Reconciliation of Inter Branch transactions and internal/office
accounts is under progress at different stages at the branches
and/or Central Office Departments. Steps are being taken to
eliminate the outstanding entries at the earliest. The necessary
accounting adjustments if any required shall be carried out on
the completion of such process. The management however
does not anticipate any material consequential effect of
pending reconciliation and elimination of outstanding entries.
7. MSMED ACT 2006
Based on the vendor information available with the Bank,
there is no outstanding dues payable by the Bank to MSME
units identified by the Bank, which is pending beyond the time
limit prescribed under MSMED Act, 2006 and there have been
no reported cases of accepted liability of delayed payments
of principal amount or interest thereon for such parties during
the year. MSME status is being updated based on vendor
information to the extent received.
8. Depreciation on Revalued Premises Assets
During the current financial year, the Bank has revised the
method of charging depreciation on revalued premises in
order to align with declared accounting policy and to provide
the depreciation over the remaining useful life as determined
on the date of revaluation, subject to the maximum of useful
life prescribed under the accounting policy, as against the
earlier practice of depreciating such assets over the useful
life specified therein.
Pursuant to above, an additional depreciation of ?13.69 crores
has been charged to the profit and loss account for the year
and the carrying value of the Gross Block and the Revaluation
reserve have been correspondingly adjusted.
9. Comparative Figures
Previous year's figures have been regrouped/rearranged/
reclassified wherever considered necessary.
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