Emirates NBD Bank (PJSC), India Branch (Scheduled Commercial Bank) · 2018-07-12 · 1 Emirates NBD...
Transcript of Emirates NBD Bank (PJSC), India Branch (Scheduled Commercial Bank) · 2018-07-12 · 1 Emirates NBD...
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Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
AuDItor’S rEPort oN thE FINANCIAl StAtEmENtS [under Section 30 of the Banking regulation Act, 1949]
toThe Chief Executive Officer Emirates NBD Bank (P.J.S.C) - India Branchreport on the Financial Statements
1 WehaveauditedtheaccompanyingfinancialstatementsoftheEmiratesNBDBank(P.J.S.C)-IndiaBranch(‘theBank’),whichcomprisetheBalanceSheetasatMarch31,2018andtheProfitandLossAccountandtheCashFlowStatementfortheyearthenendedandasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.
management’s responsibility for the Financial Statements
2 TheBank’sManagementisresponsibleforthepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheBankinaccordancewiththeprovisionsofSection29oftheBankingRegulationAct,1949,accountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheCompaniesAct,2013(“theAct”)readwithRule7oftheCompanies(Accounts)Rules,2014andthecirculars,guidelinesanddirectionsissuedbyReserveBankofIndia(‘RBI’)fromtimetotime.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheBankandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.
Auditor’s responsibility
3 Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.4 WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisions
oftheActandtheRulesmadethereunder.5 WeconductedourauditoftheBankinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.Thosestandardsrequirethatwecomplywithethical
requirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatements.6 Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’s
judgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheBank’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
7 Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononfinancialstatements.
opinion8 Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiven,thesaidfinancialsstatementstogetherwithnotesthereongivefullinformationrequiredby
theBankingRegulationAct,1949aswellastheCompaniesAct,2013,inthemannersorequiredforbankingcompaniesandgivetrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:(a) inthecaseoftheBalanceSheet,ofthestateofaffairsoftheBankasatMarch31,2018;(b) incaseoftheProfitandLossAccount,ofthelossoftheBankfortheyearendedonthatdate;(c) inthecaseoftheCashFlowStatement,ofthecashflowsoftheBankfortheyearendedonthatdate.
report on other legal and regulatory requirements9 TheBalanceSheetandProfitandLossAccountandtheCashFlowStatementhavebeendrawnupinaccordancewiththeprovisionsofSection29oftheBankingRegulationAct,
1949readwithSection133oftheCompaniesAct,2013readwithRule7oftheCompanies(Accounts)Rules,2014.
10 AsrequiredbySection30(3)oftheBankingRegulationAct,1949,wereportthat:
I. wehaveobtainedalltheinformationandexplanationwhich,tothebestofourknowledgeandbelief,werenecessaryforthepurposeofourauditandhavefoundthemtobesatisfactory;
II. thetransactionsoftheBank,whichhavecometoournoticehavebeenwithinthepowersoftheBank;andIII. Sincethebankishavingonlyonebranch,thequestiononreportingthenumberofbranchesauditedbyusandthemannerofauditthereondoesnotarise.
11 AsrequiredbySection143(3)oftheAct,wereportthat:(a) wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;(b) inouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheBanksofarasitappearsfromourexaminationofthosebooks;exceptthatthebackupofthe
booksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideofIndia,Refernote1ofSchedule17ofthefinancialstatements;
(c) theBalanceSheet,theProfitandLossAccountandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount;(d) inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)
Rules,2014insofarastheyapplytotheBank;(e) reportingrequirementpursuanttoprovisionofSection164(2)oftheCompaniesAct,2013arenotapplicableconsideringtheBankisabranchofEmiratesNBDBankPJSC,
DubaiwhichisincorporatedinUnitedArabEmirateswithlimitedliability;(f) WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheBankandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereport
in“AnnexureA”tothisreport;and(g) withrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandto
thebestofourinformationandaccordingtotheexplanationsgiventous:i theBankhasdisclosedtheimpact,ifany,ofpendinglitigationsonitsfinancialpositionsinitsfinancialstatementsasatMarch31,2018;ReferSchedule12andNote
1(XIX)ofSchedule18tothefinancialstatements;ii theBankhasmadeadequateprovision,asrequiredundertheapplicablelaworaccountingstandards,formaterialforeseeablelosses,ifany,onlong-termcontracts
includingderivativecontracts-ReferNote2(XIX)ofSchedule18tothefinancialstatements;iii theBankiscurrentlynotliabletotransferanyamounttotheInvestorEducationandProtectionFund;iv thedisclosurerequirementsasenvisagedinNotificationG.S.R308(E)datedMarch30,2017isnotapplicabletotheBank.
ForKhimji Kunverji & Co CharteredAccountants FRN:105146W
Vinit K Jain Partner(F-145911)
Mumbai June26,2018
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Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
ANNExurE - A to thE AuDItorS’ rEPortreport on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofEmiratesNBDBank(P.J.S.C)-IndiaBranch(‘theBank’),asatMarch31,2018inconjunctionwithourauditofthefinancialstatementsoftheBankfortheyearendedonthatdate.
management’s responsibility for Internal Financial ControlsTheBank’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetoBank’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.
Auditor’s responsibilityOurresponsibilityistoexpressanopinionontheBank’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.
Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.
WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheBank’sinternalfinancialcontrolssystemoverfinancialreporting.
meaning of Internal Financial Controls over Financial reportingABank’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.ABank’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheBank;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheBankarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsoftheBank;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionoftheBank’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.
Inherent limitations of Internal Financial Controls over Financial reportingBecauseof the inherent limitationsof internalfinancialcontrolsoverfinancialreporting, includingthepossibilityofcollusionor impropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
opinionAccordingtotheinformationandexplanationgiventous,inouropinion,theBankhasinallmaterialrespects,anadequate&effectiveinternalfinancialcontrolssystemoverfinancialreportingwithreferencetonatureandsizeofoperationscarriedoutbytheBankfortheyearendedMarch31,2018.,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheICAI;;exceptthatthebackupofthebooksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideofIndia,Refernote1ofSchedule17ofthefinancialstatements.
ForKhimji Kunverji & Co CharteredAccountants FRN:105146W
Vinit K Jain Partner(F-145911)
Mumbai June26,2018
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Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
BAlANCE ShEEt AS oN 31 mArCh 2018
Particulars ScheduleAs at
31 march 2018 (INr '000s)
CAPItAl & lIABIlItIESCapital 1 6,540,758Reservesandsurplus 2 (171,707)Deposits 3 913,461Borrowings 4 2,967,303OtherLiabilitiesandProvisions 5 320,440
total 10,570,255
ASSEtSCashandBalanceswithReserveBankofIndia 6 174,013BalanceswithBanksandMoneyatCallandshortnotice
7 1,006,573
Investments 8 2,966,988Advances 9 5,782,725Fixedassets 10 329,597Otherassets 11 310,359total 10,570,255
ContingentLiabilities 12 7,880,755BillsforCollection -SignificantAccountingPoliciesandNotestoAccounts 17&18
SchedulesreferredtohereinformanintegralpartoftheFinancialStatements
AsperourattachedReportofevendate.
ForKhimji Kunverji & Co.CharteredAccountantsFirmRegistrationNo.105146W
ForEmirates NBD Bank (PJSC), IndiaBranch
Vinit K JainPartnerMembershipNo:F-145911
Sharad AgarwalChiefExecutiveOfficer,India
Place:MumbaiDate:26Jun2018
Place:MumbaiDate:26Jun2018
ProFIt AND loSS ACCouNt For thE YEAr ENDED 31 mArCh 2018Particulars Schedule For the Year ended
31 march 2018(INr '000s)
I. INComE InterestEarned 13 322,141 OtherIncome 14 5,572
total 327,713
II. ExPENDIturE InterestExpended 15 15,033 OperatingExpenses 16 451,450 ProvisionsandContingencies 18.1.XIX 32,937
total 499,420
III. ProFIt/(loSS) Netprofit/(Loss)fortheyear (171,707) Profit/(Loss)broughtforward -
total (171,707)
IV. APProPrIAtIoNS TransfertoStatutoryReserves - TransfertoCapitalReserves - TransfertoInvestmentReserveAccount - RemittancetoH.O.duringtheyear - TransfertosurplusretainedforCapitalAdequacy(CRAR)
-
Balance carried over to Balance Sheet (171,707)
total (171,707)
SchedulesreferredtohereinformanintegralpartoftheFinancialStatements
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Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
CASh FloW StAtEmENt For thE YEAr ENDED 31 mArCh 2018Particulars For the year ended
31 march 2018INr (000's)
Cash Flow from operating Activities NetProfit/(Loss)asperProfit&LossStatement (171,707) Add:IncomeTaxProvision - Add:DeferredTax(Asset)/Liability 2,546 NetProfitbeforetaxationandextraordinaryitems (169,161)
Adjustments for: DepreciationonFixedAssets 70,609 (Profit)/LossonsaleofFixedAssets 4,063 Additions/(Write-back)ofprovisionforStandardAssets 23,131 ProvisiononInvestments 7,260
Operating profit before working capital changes (64,098) (Increase)/DecreaseinInvestments (2,966,988) (Increase)/DecreaseinAdvances (5,782,725) (Increase)/DecreaseinOtherAssets(Note1) (310,359) Increase/(Decrease)inDeposits 913,461 Increase/(Decrease)inOtherLiabilities&Provisions 287,502 Incometaxes(paid)/received -
Net Cash Flow generated from/(used in) operating Activities A (7,923,206)
Cash flows from investing activities Purchaseoffixedassets(Note1) (396,055) Proceedsfromsaleoffixedassets 495 (Increase)/DecreaseinCapitalworkinprogress (8,710)
Net Cash Flow generated from/(used in) Investing Activities B (404,269)
Cash flows from financing activities CapitalIntroduced(Note1) 6,540,758 Increase/(Decrease)inBorrowingsotherthanSub-ordinateddebt 2,967,303
Net Cash Flow generated from/(used in) Financing Activities C 9,508,061
Net increase/(decrease) in cash and cash equivalents (A + B +C) 1,180,586
Cash&Cashequivalentsatthebeginningoftheyear -CashandCashequivalentsattheendoftheyear(Note1) 1,180,586
Notes:CashandCashEquivalentsrepresentCashandBalanceswithReserveBankofIndia(AsperSchedule6) 174,013BalanceswithBanks&MoneyatCallandShortNotice(AsperSchedule7) 1,006,573
1,180,586
Note 1Details of Balances transferred from India Representative Office INr in '000sCapital 103,658FixedAssets(netofaccumulateddepreciation) 10,032OtherAssets 76,265Cash&BankBalances 17,361
AsperourattachedReportofevendate.
ForKhimji Kunverji & Co.CharteredAccountantsFirmRegistrationNo.105146W
ForEmirates NBD Bank (PJSC), IndiaBranch
Vinit K JainPartnerMembershipNo:F-145911
Sharad AgarwalChiefExecutiveOfficer,India
Place:MumbaiDate:26Jun2018
Place:MumbaiDate:26Jun2018
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Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
SChEDulES FormING PArt oF FINANCIAl StAtEmENtS AS At mArCh 31, 2018
As at 31 march 2018
(INr '000s)
SChEDulE 1 - CAPItAl(i) AmountbroughtinbyBankbywayofCapital AsperLastBalanceSheet - Add:Capitalinfusionduringtheyear 6,540,758 ReferSchedule18.1.I total 6,540,758
(ii) AmountofdepositkeptwiththeReserveBankofIndia undersection11(2)(b)oftheBankingRegulationAct,1949 2,000
SChEDulE 2 - rESErVES & SurPluSI Statutory reserve AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount -
total -
II Capital reserve AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount -
total -
III Surplus retained For Capital Adequacy (CrAr) AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount - total -
IV Investment reserve Account (IrA) AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount -
total -
V Balance In Profit And Loss Account AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount (171,707)
total (171,707)
Grand total (171,707)
SChEDulE 3 - DEPoSItSI Demand Deposits (i) FromBanks 556 (ii) FromOthers 558,563
559,119
II Saving Bank Deposits 42,299
III term Deposits (i) FromBanks - (ii) FromOthers 312,043
312,043total (I + II + III) 913,461 (i) DepositsofBranchesinIndia 913,461 (ii) DepositsofBranchesoutsideIndia -
total 913,461
SChEDulE 4 - BorroWINGSI Borrowings in India (i) ReserveBankofIndia 1,160,000 (ii) OtherBanks - (ii) Otherinstitutionandagencies -
1,160,000
II Borrowings outside India (i) SubordinatedDebtfromHeadOffice - (ii) OtherBanks* 1,807,303
*includesBAFborrowingfromHeadOffice 1,807,303
total (I + II) 2,967,303
SecuredborrowingsincludedinI&IIabove -
As at 31 march 2018
(INr '000s)
SChEDulE 5 - othEr lIABIlItIES AND ProVISIoNSI BillsPayable -II Inter-OfficeAdjustment(Net) -III InterestAccrued 6,249IV DeferredTaxLiability(Net) 2,546V Others(includingprovisions) 311,645
total 320,440
SChEDulE 6 - CASh AND BAlANCES WIth rESErVE BANK oF INDIAI Cash in hand 1,893 (includingforeigncurrencynotes)II Balances with reserve Bank of India (i) InCurrentAccount 172,120 (i) InOtherAccount -
total (I + II) 174,013
SChEDulE 7 - BAlANCES WIth BANKS & moNEY At CAll AND Short NotICE
I In India (i) BalanceswithBanks (a) InCurrentAccount 16,167 (b) InOtherDepositAccount 980,000 (ii) MoneyatCallandShortNotice (a) WithBanks - (b) WithOtherInstitutions -
996,167II outside India (i) InCurrentAccount 10,406 (ii) InOtherDepositAccounts - (iii) MoneyatCallandShortNotice -
10,406
total (I + II) 1,006,573
SChEDulE 8 - INVEStmENtSI Investments in India in (i) Governmentsecurities(*) 2,386,302 (ii) Otherapprovedsecurities - (iii) Shares - (iv) Debenturesandbonds - (v) Subsidiaries/JointVentures - (vi) Others 580,686
2,966,988II Investments outside India -total (I + II) 2,966,988III Investments in IndiaGrossValue 2,974,248Less:-ProvisionfordepreciationonInvestments (7,260)Net Value 2,966,988
* includesSecurities keptwithCCILasmargin for securities segmentofbookvalueofRs.84,124(in000s);forCBLOsegmentbookvalueofRs.NIL;forForexsegmentbookvalueofRs.19,096(in000s)&withRBIundersection11(2)(b)(ii)ofBankingRegulationAct,1949ofFaceValueofRs.NIL
SChEDulE 9 - ADVANCES
A (i) BillsPurchasedanddiscounted 5,713,725 (ii) Cashcredits,Overdrafts&Loans - (iii) TermLoans 69,000
total 5,782,725
B (i) Securedbytangibleassets* 69,000 (ii) CoveredbyBank/GovernmentGuarantees - (iii) Unsecured 5,713,725 *includesadvancesagainstbookdebts
total 5,782,725
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Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
As at 31 march 2018
(INr '000s)
C I Advances in India (i) PrioritySector 1,881,102 (ii) PublicSector - (iii) Banks - (iv) Others 3,901,623
Sub-total 5,782,725
II Advances outside India -
total (I + II) 5,782,725
SChEDulE 10 - FIxED ASSEtS
I Premises (includes leasehold improvements) Atbookvalue Beginningoftheyear* 5,347 Additionsduringtheyear 72,618 Deductionsduringtheyear (5,347)
72,618 Depreciationtodate Beginningoftheyear* 1,534 Additionsduringtheyear 11,014 Deductionsduringtheyear (1,655)
10,893
total (I) 61,725
II other Fixed Assets (includingFurniture&Fixtures) Atbookvalue Beginningoftheyear* 6,978 Additionsduringtheyear 313,403 Deductionsduringtheyear (928)
319,453
Depreciationtodate Beginningoftheyear* 759 Additionsduringtheyear 59,595 Deductionsduringtheyear (62)
60,292
total (II) 259,162
III Capital work in progress 8,710
total (III) 8,710
total (I + II + III) 329,597*representsassetstransferredfromIndiaRepresentativeoffice
SChEDulE 11 - othEr ASSEtS
I Inter-OfficeAdjustment(Net) -II Interestaccrued 118,147III Taxpaidinadvance/taxdeductedatsource(netofprovisions)
-
IV DeferredTaxAssets(Net) -V Stationeryandstamps -VI Others 192,212
total 310,359
SChEDulE 12 - CoNtINGENt lIABIlItIES
I Claimsagainstthebanknotacknowledgedasdebts -II Liabilityforpartlypaidinvestments -III Liabilitiesonaccountofoutstandingforwardexchangecontracts
6,051,301
IV Liabilitiesonaccountofoutstandingderivativecontracts -V Guaranteesgivenonbehalfofconstituents: a) InIndia 1,740,220 b) OutsideIndia 655VI Acceptances,endorsementsandotherobligations 88,579VII OtheritemsforwhichtheBankiscontingentlyliable -
total 7,880,755
For the Year ended 31 march 2018
(INr '000s)
SChEDulE 13 - INtErESt EArNEDI Interest/DiscountonAdvances/Bills 77,829II IncomeonInvestment 83,871III InterestonbalancewithReserveBankofIndiaandOtherinter-bankfunds
160,441
IV Others -
total 322,141
SChEDulE 14 - othEr INComE
I Commission,ExchangeandBrokerage 3,700II Profit/(Loss)onsaleofInvestments(net) -III Profit/(Loss)onsaleofassets(net) (4,063)IV Profit/(Loss)onForeignExchangeTransaction(Net) 4,682V Incomeearnedbywayof dividends, etc. fromsubsidiaries,
companies,jointventureabroad/inIndia-
VI MiscellaneousIncome* 1,253 (*includesprocessingfees)total 5,572
SChEDulE 15 - INtErESt ExPENDED
I InterestonDeposits 6,831II InterestonReserveBankofIndia/Inter-Bankborrowings 8,202III Others -total 15,033
SChEDulE 16 - oPErAtING ExPENSES
I Paymenttoandprovisionsforemployees 174,397II Rent,TaxesandLighting 66,834III Printingandstationery 1,074IV AdvertisementandPublicity -V DepreciationonBank'sProperty 70,609VI Directors'Fees,AllowancesandExpenses -VII Auditors'FeesandExpenses 800VIII LawCharges 3,370IX Postage,Telegrams,Telephoneetc. 4,289X RepairandMaintenance 7,302XI Insurance 2,751XII HeadOfficeCharges 30,096XIII OtherExpenditure 89,928
total 451,450
SChEDulE 17: SIGNIFICANt ACCouNtING PolICIES1. BACKGrouND Theaccompanyingfinancialstatementsfortheyearended31March2018comprisethe
accountsoftheIndianBranchofEmiratesNBDBankPJSC(referredtoas‘theBank’)whichisabankingcompanyincorporatedinUAEwithlimitedliability.On17October2016,theBank’sparentcompany,EmiratesNBDBank(PJSC),receivedtheapprovaloftheReserveBankofIndia(‘RBI’)foropeningthemaidenBankBranchwithinoneyeartherefrom.Theassets&liabilitiesofIndiaRepresentativeOfficeweretransferredtotheBankwitheffectfrom1April2017.Thefinancialstatementspresentedhereinpertaintotheyearstartingfrom1April2017till31March2018.Therefore,thereisnocomparativeinformationforthepreviousyear.TheBankhasmaintainedthebooksofaccountsandotherbooksandpapersintheelectronicmode,periodicbackupofwhichhavebeenmaintainedonserversphysicallylocatedoutsideofIndia.RBIapprovalisinplaceforhostingtheserversfromUAE.
2. BASIS oF PrEPArAtIoN The financial statements have been prepared in accordancewith requirements
prescribedundertheThirdSchedule(FormAandFormB)oftheBankingRegulationAct,1949.TheaccountingandreportingpoliciesoftheBankusedinthepreparationofthesefinancialstatementsconformtoGenerallyAcceptedAccountingPrinciplesinIndia(IndianGAAP),thecircularsandguidelinesissuedbytheReserveBankofIndia(RBI)fromtimetotime,AccountingStandards(AS)specifiedundersection133oftheCompaniesAct2013,readtogetherwithRule7oftheCompanies(Accounts)Rules2014andCompanies(AccountingStandards)AmendmentRule,2016totheextentapplicableandpracticesgenerallyprevalentinthebankingindustryinIndia.
TheBankfollowsaccrualmethodofaccounting(exceptwhereotherwisestated)andhistoricalcostconvention.
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Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
3. uSE oF EStImAtES The preparation of the financial statements requires themanagement tomake
estimates and assumptions that affect the reported amounts of assets, liabilities,(includingcontingentliabilities)asatthedateofthefinancialstatements,revenueandexpenseduringtheperiod.Althoughtheseestimatesarebaseduponmanagementbestknowledgeofcurrenteventsandactions,actualresultscoulddifferfromthoseestimatesandthesedifferencesarerecognisedprospectively incurrentandfutureperiods.
4. SIGNIFICANt ACCouNtING PolICIES 4.1. Investments Classification
InaccordancewithRBIguidelines,allinvestmentsareclassifiedintothefollowingcategories,basedontheintentatthetimeofacquisition● HeldtoMaturity(HTM),● AvailableforSale(AFS)and● HeldforTrading(HFT)
UndereachofthesecategoriestheinvestmentportfolioisfurtherclassifiedinaccordancewithRBIdisclosureguidelinesintosub-categoriesof:● Governmentsecurities,● Otherapprovedsecurities,● Shares,● DebenturesandBonds,● Subsidiaries/Jointventuresand● Others.
Shifting,ifanybetweenthecategoriesisdoneinaccordancewithRBIguidelines.
TheBankfollowssettlementdatemethodforaccountingofitsinvestments.
Acquisition CostIndeterminingthecostofinvestment,● Brokerage,commission,etc.paidatthetimeofpurchase/saleischarged
totheProfit&LossAccount.● Brokenperiodinterestpaidatthetimeofacquisitionofthesecurityischarged
totheProfit&LossAccount.● CostofinvestmentsisbasedonFirstinFirstoutmethod.
Valuation● InvestmentsheldundertheAFSandHFTcategoriesaremarkedtomarket
periodically at the price as declared byPrimaryDealersAssociation ofIndia jointlywithFixedIncomeMoneyMarketandDerivativesAssociation(“FIMMDA”).Securitiesarevaluedscrip-wiseanddepreciation/appreciationisaggregatedforeachsub-category.Netdepreciation,ifany,isprovidedforandnetappreciation,ifany,isignored.Netdepreciationrequiredtobeprovidedforinanyonesub-categoryisnotreducedonaccountofnetappreciationinanyothersub-category.Consequenttorevaluation,thebookvalueoftheindividualsecurityisnotchanged.
● Treasury Bills, Certificate of Deposits andCommercial Papers beingdiscountedinstrumentsarevaluedatcarryingcost.
● Investmentheldunder theHTMcategoryarecarriedat theiracquisitioncostandanypremiumoverthefacevalue,paidonacquisition,isamortizedonastraightlinebasisovertheremainingperiodtomaturity.Whereintheopinionofthemanagement,adiminutionotherthantemporaryinthevalueof investmentsheldunderHTMhastakenplace,suitableprovisionsaremade.
● TheBankundertakesshortsaletransactionsinCentralGovernmentdatedsecuritiesinaccordancewithRBIguidelines.Theshortpositionismarkedtomarketandloss,ifany,ischargedtotheProfitandLossaccountwhilegain, ifany, is ignored.Profit/Lossonsettlementof theshortposition isrecognizedintheProfitandLossaccount.
● Non-performing investments are identified and depreciation/provisionaremade thereonbasedon theRBIguidelines.Basedonmanagementassessmentofimpairment,theBankmayadditionallycreateprovisionoverandabove theRBIguidelines.Thedepreciation/provisiononsuchnon-performinginvestmentsarenotsetoffagainsttheappreciationinrespectofotherperformingsecurities.Interestonnon-performinginvestmentsisnotrecognizedintheProfitandLossaccountuntilreceived.
Disposal of Investments Profit/Lossonsaleofinvestmentsundertheaforesaidthreecategoriesaretaken
to theProfit&Lossaccount.Theprofit fromsaleof investmentsunderHTMcategoryifany,netoftaxesandtransferstostatutoryreserveissubsequentlyappropriatedto“CapitalReserve”.
repurchase (repo) and reverse repurchase transactions RepoandReverseRepo transactions, includingLiquidityAdjustmentFacility
(LAF)termrepowithRBIandCollateralisedLendingandBorrowingObligations(CBLO)enteredwithClearingCorporationofIndiaLimited(CCIL)areconsideredascollateralisedlendingandborrowingtransactions.
CoststhereonareaccountedforasinterestexpenseandRevenuesthereonareaccountedasinterestincome.
4.2. Advances Advances are classified as performing and non-performing basedon extant
prudentialnorms for income recognition,assetclassificationandprovisioningissuedbyRBI.
SpecificloanlossprovisionsinrespectofNon-PerformingAdvances(NPAs)ismadeonthebasisoftheprovisioningrequirementsundertheprudentialnormsaslaiddownbytheRBI,andisdeductedfromadvances.Furtheranyadditionalprovisionsarebasedonmanagement’sassessmentofthedegreeofimpairmentofadvances.
TheBankmaintains general provision for standard assets including creditexposurescomputedusingtheCurrentExposureMethodoninterestrateandforeignexchangederivativecontractsasstipulatedbyRBI.Theprovision forstandardassetsisincludedinSchedule5underOtherLiabilities.
Inadditiontotheprovisionsrequiredaccordingtotheassetclassificationstatus,provisioningisdoneforindividualcountryexposures(otherthanforhomecountryexposure).Countries are classified into risk categories as perExportCreditGuaranteeCorporationguidelinesandprovisioningisdoneasperRBIguidelinesinrespectofcountries’wherethenetfundedexposureisonepercentormoreoftheBank’stotalassetsandincludedunder‘OtherLiabilitiesandProvisions’.
ForentitieswithUnhedgedForeignCurrencyExposure(UFCE),provisionismadeinaccordancewiththeguidelinesissuedbyRBI,whichrequirestoascertaintheamountofUFCE,estimatetheextentoflikelylossandestimatetheriskinessofun-hedgedposition.ThisprovisionisclassifiedunderSchedule-5OtherLiabilitiesinthebalancesheet.
4.3. Property, Plant and Equipment (Fixed Assets) and Depreciation Fixedassetsarestatedathistoricalcost,netofaccumulateddepreciationand
accumulated impairment losses, if any.The cost comprises purchase price,borrowingcostsifcapitalizationcriteriaaremetanddirectlyattributablecostofbringingtheassettoitsworkingconditionfortheintendeduse.Anytradediscountsandrebatesaredeductedinarrivingatthepurchaseprice.
Gainsorlossesarisingfromderecognizingoffixedassetsaremeasuredasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognizedintheprofitandlossaccountwhentheassetisderecognized.
Depreciationonfixedassets isprovidedasper thestraight-linemethod fromthemonthofadditionovertheestimatedusefullivesoftheassetasprescribedunderpart“C”ofscheduleIIoftheCompaniesAct,2013orasestimatedbythemanagement.
The useful lifemarkedwith *beloware different than those specified underScheduleIIoftheCompaniesAct,2013.Themanagementbelievesthatusefullife of FixedAsset currently considered for thepurposeof depreciation fairlyreflectsitsestimateofusefullivesandresidualvalueoffixedassets.
Themanagementhasestimated,assessedandhasusedthefollowingusefullivestoprovidedepreciationonitsfixedassets:
Asset Category useful lives estimated by the management (years)
Equipment 5years
ComputersHardware(excludingPC) 4years
PCAndLaptop 3years
ComputerSoftware 4years
ComputerSoftware–StrategicAssets* 7years
Furnitureandfixtures 5years
BankVehicles 3years
LeaseholdImprovements Overthelifeofthelease
Depreciationonassetssoldduringtheyearischargedtotheprofitandlossaccountuptothemonthimmediatelyprecedingthedateofsale.
AssetsotherthanFurnitureandLeaseholdImprovementscostinglessthanINR175,000(AED10,000)arefullychargedtotheProfit&LossAccountintheyearofpurchase.Ifanasset(value<INR175,000)isanintegralpartofalargersystemitwillbecapitalisedasacomponentofthatsystem.ComputerSoftwareotherthanStrategicAssetscostingbetweenINR175,000(AED10,000)andINR6,500,000(AED350,000)havebeendepreciatedat100%intheyearofpurchase.
4.4. Impairment of Assets Thecarryingamountsofassetsarereviewedateachbalancesheetdateifthereis
anyindicationofimpairmentbasedoninternal/externalfactors.Animpairmentlossisrecognizedwheneverthecarryingamountofanassetexceedsitsrecoverableamount.Therecoverableamountisgreaterofasset’snetsellingpriceandvalueinuse.Afterimpairment,depreciationisprovidedontherevisedcarryingamountoftheassetsoveritsremainingusefullife
4.5. Foreign Exchange transactions MonetaryforeigncurrencyassetsandliabilitiesoutstandingattheBalanceSheet
datearetranslatedtoIndianRupeesatspotratesnotifiedbytheForeignExchange
8
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
DealersAssociationofIndia(‘FEDAI’).Allprofits/lossesresultingfromtheyearendrevaluationsarerecognisedintheProfit&LossAccount.
IncomeandexpensesaretranslatedtoIndianRupeesattheratesprevailingonthedateofthetransactions.
OutstandingforwardexchangecontractsandspotexchangecontractsarerevaluedatyearendexchangeratesnotifiedbyFEDAIforspecifiedmaturitiesand at interpolated rates for contract of interimmaturities. The resultinggainsorlossesonrevaluationareincludedintheProfit&LossAccountinaccordancewithRBI/FEDAIguidelines.ThenetunrealisedprofitsorlossesarereflectedintheBalanceSheetunderOtherAssetsorOtherLiabilitiesrespectively.
Contingent liabilities on account of foreign exchange contracts, guarantees,acceptances, endorsements and other obligations denominated in foreigncurrenciesaredisclosedinIndianRupeesatspotratesofexchangenotifiedbyFEDAIasatthereportingdate.
4.6. Employee benefits Gratuity TheBankhasadefinedbenefitplanforpost-employmentbenefitintheformof
gratuityforallitsemployees.IntermsoftherevisedAccountingStandard-15onRetirementBenefits,theBankhasmadeaprovisiontowardsGratuitybasedonanactuarialvaluationdonebyanindependentactuaryasattheyearend,usingtheProjectedUnitCreditMethod.TheGratuityplanisnotfundedbytheBank.ActuarialgainsandlossesarerecognizedinfullintheperiodinwhichtheyoccurinthestatementofProfitandLoss.
Provident Fund
The Bank contributes to a recognised provident fund (EPFO). ThesecontributionsareaccountedforonanaccrualbasisandrecognisedinProfit&LossAccount.
leave Salary TheBankdoesnothaveapolicyofencashingunavailedleaves,exceptatthe
timeof separation of an eligible employee.TheBankmakes a provision foraccruedcompensatedabsencesbasedonactuarialvaluationascarriedoutbyanindependentactuary,usingtheProjectedUnitCreditMethodattheyear-end.Actuarialgains/lossesareimmediatelytakentotheprofitandlossaccountandarenotdeferred.
4.7. lease Accounting Leaseswherethelessoreffectivelyretainssubstantiallyalltherisksandbenefitsof
ownershipovertheleasetermareclassifiedasoperatingleases.LeasepaymentsforassetstakenonoperatingleasearerecognizedasanexpenseintheProfitandLossAccountonastraight-linebasisovertheleaseterm.
4.8. revenue recognition Revenueisrecognizedtotheextentthatitisprobablethattheeconomicbenefits
willflowtotheBankandtherevenuecanbereliablymeasured.InterestincomeisrecognizedintheProfit&LossAccountonanaccrualbasis,exceptinthecaseofnon-performingassetswhereitisrecognizeduponrealizationasperRBInorms.
CommissiononGuaranteesandLetterofCreditsissuedandLoanProcessingFeesarerecognisedupfront.Feesforservicesarerecognizedatthetimetheservicesarerenderedandabindingobligationtoreceivethefeeshasarisen.
Incomeondiscountedinstrumentsisrecognizedoverthetenureoftheinstrumentonastraightlinebasis.
4.9. taxation Incometaxcomprisescurrenttaxprovisionandthenetchangeinthedeferred
taxassetorliabilityintheyear.
Deferredtaxassetsandliabilitiesarisingonaccountoftimingdifferencesarerecognised in theProfit&LossAccount and the cumulativeeffect thereof isreflectedintheBalanceSheet.Deferredtaxassetsandliabilitiesaremeasuredusingtheenactedorsubstantiallyenactedtaxratesatthebalancesheetdate.TheeffectondeferredtaxassetsandliabilitiesofachangeintaxratesisrecognisedintheProfit&LossAccountintheperiodofchange.
Deferredtaxassetsarerecognizedonlytotheextentthereisreasonablecertaintythattheassetscanberealizedinfuture,exceptincaseofunabsorbeddepreciationorcarriedforwardlossundertaxationlawswhicharerecognizedonlytotheextentthatthereisvirtualcertaintyofrealizationofsuchassets.
Deferredtaxassetsarereviewedandreassessedateachbalancesheetdateandappropriatelyadjustedtoreflecttheamountthatisreasonably/virtuallycertaintoberealized.
4.10. Cash & Cash equivalents
Cashandcashequivalentsincludecashinhand,balanceswithRBI,balanceswithotherbanks/institutionsandmoneyatcallandshortnotice(includingtheeffectofchangesinexchangeratesoncashandCashequivalentsinforeigncurrency.
4.11. Accounting for Provisions, Contingent liabilities and Contingent Assets
InAccordancewithAS - 29 relating toProvisions,Contingent Liabilities andContingentAssets,theBankrecognizesprovisionsonlywhenithasapresentobligationasaresultofapasteventthatrequiresthatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandwhenareliableestimatecanbemadeoftheamountoftheobligation.
Noprovisionisrecognizedandadisclosureofcontingentliabilityismadewhen:
● there is a possible obligation thatmay arise frompast events and theexistence of whichwill be confirmed only by the occurrence or non-occurrenceofoneormoreuncertain futureeventswhicharenotwhollywithinthecontroloftheBank;or
● anypresentobligationthatarisesfrompasteventswhereitisnotprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationorareliableestimateoftheamountoftheobligationcannot bemade. Such obligations are assessed continually and onlythat part of theobligation forwhichanoutflowof resourcesembodyingeconomicbenefitsisprobableisprovidedforexceptintheextremelyrarecircumstanceswherenoreliableestimatecanbemade.
ProvisionsarereviewedateachBalanceSheetdateandadjusted toreflect thecurrentbestestimate.
Contingentassetsarenotrecognisedinthefinancialstatements.
SChEDulE 18: NotES FormING PArt oF thE FINANCIAl StAtEmENtS For thE YEAr ENDED 31 mArCh 2018
1. StAtutorY DISCloSurES IN tErmS oF rBI GuIDElINES ArE AS uNDEr:I. CAPItAl:Additiontothecapitalincludesstart-up(assigned)capitalbroughtinasperReserveBankofIndiaMasterCircularRBI/2013-14/77DBOD.No.BAPD.BC.7/22.01.001/2014-15datedJuly1,2014andamounttakenoverfromerstwhileRepresentativeOfficeofEmiratesNBDBank(PJSC)inIndiaINR.103,658(‘000s).
AspertheRBIguidelinesonCapitaltoRiskWeightedAssetsRatio(CRAR)issued,BanksarerequiredtocomputetheircapitalrequirementunderBaselIIIeffectiveJune30,2013.TheCRARasperBASELIIIis125.89%
(Amountin‘000s)
Particulars 2017-18
CommonEquityTier1Capitalratio(%) 125.42%
CapitalAdequacyRatio(TierICapital) 125.42%
CapitalAdequacyRatio(TierIICapital) 0.47%
CRAR% 125.89%
Percentage of the shareholding of the Government of India innationalizedbanks Nil
AmountofEquitycapitalraised(CapitalFundsfromH.O) 65,40,758
AmountofadditionalTier1capitalraised;ofwhichPNCPS:PDI:
Nil
AmountofTier2capitalraisedofwhichDebtcapitalinstrument:PreferenceSharecapitalinstrument:[PerpetualCumulativePreferenceShares (PCPS)/Redeemable Non-Cumulative Preference Shares(RNCPS)/RedeemableCumulativePreferenceShares(RCPS)]
Nil
II. INVEStmENtS: a. Value of Investments: (Amountin‘000s)
Particulars 2017-18GrossvalueofInvestments* 29,74,248
Provisionfordepreciation* (7,260)
NetValueofInvestments* 29,66,988
* TheBankhasnotmadeanyinvestmentoutsideIndia
b. movement of Provisions held towards depreciation on investments: (Amountin‘000s)
Particulars 2017-18
OpeningBalance -
Add:Provisionsmadeduringtheyear 7,260
Less:Write-off/write-backofexcessprovisionsduringtheyear -
ClosingBalance 7,260
9
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
III. rEPo/rEVErSE rEPo trANSACtIoNS (Including liquidity Adjustment Facility):
(Amountin‘000s)
Particulars
minimum outstanding during the
Year
maximum outstanding during the
Year
Daily Average outstanding during the
Year
As on 31 march 2018
Securitiessoldunderrepo - 11,59,600 2,69,219 11,59,600
i. GovernmentSecurities - 11,59,600 2,69,219 11,59,600
ii. CorporateDebtSecurities - - - -
Securitiespurchasedunderreverserepo - 20,36,350 5,55,014 -
i. GovernmentSecurities - 20,36,350 5,55,014 -
i. CorporateDebtSecurities - - - -
Theaboveworkingsarebasedonthefacevalueofrepo/reverserepodeals.
IV. NoN Slr INVEStmENtS PortFolIo: a. Issuer Composition of Non Slr Investments: (Amountin‘000s)
Sr. No Issuer Amount
Extent of private
placement
Extent of below
investment grade
securities
Extent of unrated
securities
Extent of unlisted
securities
1Publicsectorundertakings(PSUs)
-- - - -
2 Financial Institutions(FIs) 5,80,686 - - - -
3 Banks - - - - -
4 PrivateCorporate - - - - -
5 Subsidiaries/JointVentures
- - - - -
6 Others - - - - -
7Provisionheldtowardsdeprecation
- - - - -
Total 5,80,686 - - - -
b. Non Performing Non Slr Investments: TherearenoNonPerformingNon-SLRinvestmentsduringtheyearended31
March2018.
V. SAlE AND trANSFErS to/From htm CAtEGorY Therewerenosaleand transfer to/fromHTMcategoryduring theyearended31March2018.
VI. DErIVAtIVES a. Forward rate Agreement/Interest rate Swaps outstanding: TheBankhadnotentered intoForwardRateAgreement/Interest rateSwap
duringtheyearended31March2018.
Natureandtermsofforwardrateagreements: Outstandingasat31.03.18:Nil
b. Exchange traded Interest rate Derivatives TheBankhadnotenteredintoExchangeTradedInterestRateDerivativesduring
theyearended31March2018.
c. Currency Futures Thebankhadnotdealtinexchangetradedcurrencyforwards(futures)during
theyearended31March2018.
d. Disclosure on risk Exposure in Derivatives: Therearenoderivativestransactionsduringtheyearandhencethedisclosure
isnotapplicable.
e. unhedged/uncovered foreign currency exposure TheBanks’foreigncurrencyexposureasat31March2018thatarenothedged/
coveredbyeitherderivativeinstrumentsorotherwisearewithintheNetOvernight
OpenPositionLimit(NOOP)andtheAggregateGapLimit,asapprovedbytheRBI.NOOPasat31March2018isRs.8,198(in‘000s).
f. Credit default Swaps: TheBankhasnotenteredintoanyCreditDefaultSwaptransactions.
VII. ASSEtS QuAlItY: a. Non Performing Assets (NPAs) Net NPAs to Net Advances (%) PercentageofNetNPAstoNetAdvancesforFY2017-18is0.00%
movement of Gross NPAs (Amountin‘000s)
Particulars 2017-18OpeningBalance -
Add:Additionsduringtheyear -
Less:Reductionsduringtheyear -
ClosingBalance -
movement of Net NPAs: (Amountin‘000s)
Particulars 2017-18OpeningBalance -
Add:Additionsduringtheyear -
Less:Reductionsduringtheyear -
ClosingBalance -
movement of provisions of NPAs (Excluding Provisions on Standard Assets) (Amountin‘000s)
Particulars 2017-18OpeningBalance -
Add:Provisionsmadeduringtheyear -
Less:Writebackofexcessprovisions -
Closingbalance -
b. Particulars of Accounts restructured Duringtheyear,theBankhasnotrestructuredadvancesgiventoanycustomer.
Disclosures pertaining to strategic debt restructuring scheme, Scheme ofSustainableStructuringofStressedAssets(S4A)andResolutionofStressedAssetsarenotapplicable.
c. Details of financial assets were sold to Securitisation/Reconstruction Company for Asset reconstruction
During the year, theBankhasnot transferred/soldanyassets toanyAssetReconstructionCompany.
d. Details of Non-Performing financial assets purchased/sold Duringtheyear,theBankhasnotpurchasedorsoldNon-PerformingFinancial
Assets.
e. Provision towards Standard Assets - (Amountin‘000s)
Particulars 2017-18ProvisionstowardsStandardAssets 23,131
f. Provision Coverage ratio (Amountin‘000s)
Particulars 2017-18ProvisionCoverageRatio -
VIII. BuSINESS rAtIoS:
SN Particulars 2017-18
1 Interestincometoworkingfunds(1) 4.14%
2 Non-interestincometoworkingfunds(1) 0.07%
3 Operatingprofit(2)toworkingfunds(1) (1.73%)
4 Returnonassets(3) (2.21%)
5 Businessperemployee(Amountin‘000s)(4) 159,433
6 Profitperemployee(Amountin‘000s)(5) (4,088)
Note: 1. WorkingfundsrepresentaverageoftotalassetsasreportedtoRBIinFormXunder
Section27oftheBankingRegulationAct,1949duringtheyear.2. OperatingProfitmeansNetInterestIncomeplusotherincomeexcludinggain/loss
onfixedassets.3. NetProfitasapercentagetoaverageworkingfunds.4. Businessmeanstotalofnetadvancesanddeposits,excludinginterbankdeposits.5. Productivityratioisbasedonyearendemployeenumbers.
10
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
IX. mAturItY PAttErN oF ASSEtS AND lIABIlItIESYear ended 31 march 2018 (Amountin‘000s)
maturity Buckets loans & Advances Investment Deposit Borrowing
Foreign Currency
Asset
Foreign Currency liabilities
Day–1 - 9,76,299 29,366 - 11,117 -
2-7Days 2,41,836 86,260 29,366 30,000 - -
8-14Days 3,55,607 5,55,028 29,366 5,50,000 - -
15-30Days 10,92,862 5,82,017 - 5,80,000 3,911 -
31Days-2Months 12,48,926 10,042 - 3,27,179 2,85,329 3,28,562
Above2Months&upto3Months 13,25,553 661 - 2,58,745 3,07,626 2,60,048
Over3Months&upto6Months 13,93,520 5,81,489 - 12,21,379 12,22,030 12,23,987
Over6Months&upto1Year 62,841 49,915 2,59,016 - - -
Over1Year&upto3Years 39,830 97,080 5,66,347 - - -
Over3Year&upto5Years 21,750 - - - - -
Over5Years - 35,457 - - 65,175 -
total 57,82,725 29,74,248 9,13,461 29,67,303 18,95,188 18,12,597
Classification of assets and liabilities under the different maturity buckets are compiled by management (on gross basis) based on the guidelines issued by the RBI and are based on the same assumptions as used by the Bank for compiling the returns submitted by RBI and which have been relied upon by the auditors.
X. ExPoSurE - a. lending to Sensitive Sectors: (Amountin‘000s)
Particulars 2017-18AdvancestoCapitalMarket -AdvancestoRealEstateSector -
b. risk Category Wise Country Exposure: ProvisionforcountryriskexposureinlinewithRBIguidelinesisasfollows: (Amountin‘000s)
risk Category Exposure (net) as at 31 march 2018
Provision held as at 31 march 2018
Insignificant 10,028 -Low 81,284 -Moderate 1,14,811 -High - -VeryHigh - -Restricted - -Off-credit - -totAl 2,06,123 -
c. Disclosure on Single Borrower limit (SBl)/Group Borrower limit (GBl): Duringtheyearended31March2018,thebankhascompliedwithReserve
BankofIndiaguidelinesonsingleborrowerandgroupborrowerlimit.SBLLimitwasdeterminedatamaximumlimitofBank’savailableeligiblecapitalbase.
TheExecutiveCommitteevidemeetingdated18August2017approvedtheSBLandrestrictedittoINR95crores.
d. unsecured Advances against Intangible Securities: TherearenoadvancesgrantedagainstIntangibleSecuritiessuchascharge
overtherights,licenses,authority(excludingguarantees),etc.duringtheyear.
XI. DISCloSurE oF PENAltIES BY rBI Duringtheyear,nopenaltieswereimposedbyRBI.
XII. EmPloYEE BENEFItS (ACCouNtING StANDArD -15) a. Provident Fund ThecontributiontoEmployeesProvidentFundamountedtoINR4,580(in000s)
fortheyearended31March2018.
b. Gratuity The following tables give the disclosure regarding theGratuityScheme in
accordancewiththeAccountingStandard15(Revised):
ChangesinthePresentValueofDefinedBenefitObligationsduringtheyear:
(Amountin‘000s)
Particulars 2017-18PresentvalueofDefinedBenefitObligationasattheBeginningofthePeriod -
Interestcost -
CurrentServiceCost 6,250
(LiabilityTransferredOut) -
(BenefitsPaid) -
Actuarial(gains)/LossesonObligations -
Present value of the Defined Benefit Obligation at the End of the Period 6,250
ChangesintheFairValueofPlannedAssets (Amountin‘000s)
Particulars 2017-18FairValueofPlanAssetsattheBeginningofthePeriod -
ExpectedReturnonPlanAssets -
ContributionsbytheEmployer -
(BenefitPaidfromtheFund) -
ActuarialGains/(Losses)onPlanAssets-DuetoExperience -
Fair Value of Plan Assets at the End of the Period -
Tableofrecognitionofactuarialgains/losses: (Amountin‘000s)
Particulars 2017-18Actuarial(Gains)/lossesonobligationfortheperiod -
Actuarial(Gains)/lossesonassetfortheperiod -
Actuarial (Gains)/losses recognized in income & expenses Statement -
AmountRecognizedintheBalanceSheet: (Amountin‘000s)
Particulars 2017-18Fairvalueofplanassetsattheendoftheperiod -
(PresentvalueofbenefitobligationasattheendofthePeriod) (6,250)
Net (liability)/asset recognized in the balance sheet (6,250)
ExpensesRecognizedintheProfit&LossAccount: (Amountin‘000s)
Particulars 2017-18Currentservicecost 6,250
Interestcost -
Expectedreturnonplanassets -
Actuarial(gains)/losses -
Expense recognized in the income statement 6,250
ExperienceAdjustmentisasfollows: (Amountin‘000s)
Experience Adjustment 2017-18GratuityDefinedBenefitObligation(A) 6,250
Planassets(B) -
Surplus/(Deficit)(B-A) (6,250)
ActuarialGains/(Losses)onObligation -
ActuarialGains/(Losses)onPlanAssets -
c. leave Encashment TheactuariallydeterminedliabilityforCompensatedAbsences(PrivilegeLeave)
oftheemployeesoftheGroupisgivenbelow: (Amountin‘000s)
Particulars 2017-18Provisionasatdate 5,245
d. Principal Actuarial AssumptionsParticulars 2017-18
DiscountRate 7.70%
SalaryEscalationRate–JuniorLevelMid-Level&above
10%7%
MortalityRate IndianAssuredLivesMortality(2006-08)
AttritionRate 5%
ReturnonPlanAsset -
11
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Theaboveassumptionsareconsidered fordeterminingactuarial liabilityunderGratuity&LeaveEncashment.LiabilitytowardsLeaveEncashmentandGratuityarenon-funded.
e. National Pension Scheme TheBankhascontributedRs.2,091(in000s)fortheyearended31March2018
toNPSforemployeeswhohadoptedforthescheme.Thebankhasnoliabilityforfuturefundbenefitsotherthanitsannualcontributionfortheemployeeswhoagreetocontributetothescheme.
XIII. SEGmENt rEPortING (ACCouNtING StANDArD -17) a) TheBank in India operates as a single unit and there are no identifiable
geographicalsegments
b) TheBankhasclassifieditsbusinessintothefollowingsegments,namely: ● Treasury–primarilycomprisingofforex,bonds,governmentsecuritiesand
derivativesactivities. ● Wholesale/CorporateBanking-comprisingofCorporateBankingandTrade
Finance. ● OtherBankingoperations–comprisingofotherservicedepartmentsof
theBank.
Business Segment reporting as of 31 march 2018 (Amountin‘000s)
Business Segments treasuryCorporate/Wholesale Banking
other Banking
operationstotal
Revenue 2,48,994 82,799 (16) 3,31,777
Results 1,95,719 29,871 (1,39,870) 85,720
Unallocatedexpense (2,24,490)
Operatingprofit/(loss) (1,38,770)
Provisions (30,391)
Incometaxes (2,546)
Extraordinaryprofit/(loss) -
Net profit/(loss) (1,71,707)Segmentassets 42,96,048 59,08,395 1,66,094 1,03,70,537
Unallocatedassets 1,99,718
total assets 1,05,70,255Segmentliabilities 29,93,957 40,431 11,51,216 41,85,604
Unallocatedliabilities 15,600
CapitalandReserves&Surplus
63,69,051
total liabilities 1,05,70,255Note:Inallocationofsomeitemsofexpenses/incomeandasset/liabilities,certainestimatesandassumptionshavebeenmadebythemanagement,whichhasbeenrelieduponbytheauditors
TheBankdoesnot haveanyoverseasoperationsandhence there is nogeographicalsegmentreporting.
XIV. rElAtED PArtY trANSACtIoNS (ACCouNtING StANDArD -18) TheinformationrequiredinthisregardinaccordancewithAccountingStandard18
on“RelatedPartydisclosures”,issuedbyICAIandRBIguidelines,isprovidedbelow: a. Name and nature of relationship of related parties
relationship Name Name
HeadOffice EmiratesNBDBank(PJSC)-UAE
BranchesofHeadOffice EmiratesNBDBank(PJSC)-RiyadhBranch
OverseasSubsidiaryofHeadOffice EmiratesNBDS.A.E.(Egypt)
KeyManagementPersonnel SharadAgarwalChiefExecutiveOfficer-India
InlinewiththeReserveBankofIndiaCircularNo.DBR.BP.BCNo.23/21.04.018/2015-16dated1July2015;theBankhasnotdiscloseddetailspertainingtorelatedpartieswhereunderacategorythereisonlyoneentity.Similarly,therehasbeenonlyoneentityunderKeyManagementpersonnelatanygivenpointof time,and therefore, thosedetailsarealsonotdisclosed.*RelatedpartiesareidentifiedbytheManagementandrelieduponbytheauditors. b. Disclosure in respect of transactions with subsidiaries of Head Office
(Amountin000’s)
Particulars outstanding as31 march 2018
maximumbalance during the FY
Advances 26,232 26,232
Borrowing - -
AmountReceivable - -
AmountPayable - -
(Amountin000’s)
Particulars 2017-18
InterestIncome* 78
* InterestIncomeonBillsdiscountedfromEmiratesNBDBankS.A.E.-Rs.78(in‘000s)
XV. lEASE ACCouNtING (ACCouNtING StANDArD 19) a) TheBank’ssignificantleasingarrangementsareinrespectofoperatingleases
forcommercialpremisesandmotorcarforemployees.
b) Minimum Lease Payments over the non-cancellable period of the leaseRs.1,10,101(in000s).
(Amountin‘000s)
Particulars 2017-18
Notlaterthan1year 64,449
Laterthan1yearandnotlaterthan5years 45,652
Laterthan5years -
totAl 1,10,101
c) Leasepayments recognised in theProfitandLossAccountduring theyear:Rs.63,963(in000s)
XVI. ACCouNtING For tAxES oN INComE (ACCouNtING StANDArD - 22) Theprimarycomponentsthatgiverisetodeferredtaxassetsandliabilitiesareas
follows:(Amountin‘000s)
Particulars For the year ended 31 march
2018
outstanding as 31 march 2018
Deferred tax liability
DepreciationonFixedAssets 23,190 23,190
total (A) 23,190 23,190
Deferred tax Asset*
Provisionforemployeebenefits 4,782 4,782
ProvisionforBonus 6,240 6,240
ProvisionforStandardAsset 9,622 9,622
total (B) 20,644 20,644
Deferred tax liability/(Asset) (Net) (A) – (B) 2,546 2,546
*DeferredTaxAssetonTaxLossforcurrentyearhasnotbeenrecognisedbasedonabsenceofvirtualcertaintyoffutureprofits.
XVII. CAPItAl CommItmENtS
Particulars As at 31 march 2018
Estimateamount of contracts remaining tobeexecutedon capitalaccountandnotprovidedfor -
XVIII.ImPAIrmENt oF ASSEtS (ACCouNtING StANDArD - 28) Fixedassetsacquiredbythebank,aretreatedas ‘CorporateAssets’andarenot
CashGeneratingUnit’asdefinedbyAS-28.IntheopinionofthemanagementoftheBank,thereisnoimpairmentofanyofthefixedassetsoftheBank.
XIX. ProVISIoNS, CoNtINGENt lIABIlItIES AND ASSEtS (ACCouNtING StANDArD-29)
Description of Contingent liabilities Claims against the Bank not acknowledged as debt ThisrepresentslegalclaimsfiledagainsttheBankinitsnormalcourseofbusiness
andtaxclaims/demandsraisedbytheIncomeTaxauthorities,whicharedisputedbytheBank.
liability on account of forward exchange and derivative contracts TheBankenters into foreignexchange contracts, currency options, forward rate
agreements,currencyswaps,interestrateswapsandinterestrateoptionsonitsownaccountandforcustomers.Thenotionalamountsthatarerecordedascontingentliabilitiesformthebasisforthecalculationoftheinterestcomponentonthecontractswhereapplicable.
Guarantees given on behalf of constituents, Acceptances, Endorsements and other obligations
Asapartofitsnormalbankingactivities,theBankissuesdocumentarycreditandguaranteesonbehalfofitscustomers.
12
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
BrEAK uP oF ‘ProVISIoNS AND CoNtINGENCIES’ ShoWN uNDEr thE hEAD ExPENDIturE IN ProFIt AND loSS ACCouNt:
(Amountin‘000s)
Particulars 2017-18ProvisionforDepreciationonInvestment 7,260
ProvisiontowardsNPA -
ProvisiontowardsStandardsAssets 23,131
ProvisiontowardsUnhedgedExposure -
ProvisiontowardsDerivativeExposure -
ProvisionforIncomeTax/WealthTax -
ProvisionforDeferredTaxLiabilities/(Assets) 2,546
OtherProvisionandContingencies -
total 32,937
XX. DISCloSurE uNDEr mICro, SmAll AND mEDIum ENtErPrISES DEVEloPmENt ACt, 2006 (mSmED, Act 2006)
TherearenodelaysinpaymentstomicroandsmallenterprisesasrequiredtobedisclosedunderTheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.Thedeterminationhasbeenmadetotheextentsuchpartieswereidentifiedbasedontheinformationavailable.Thishasbeenrelieduponbytheauditors.
2. ADDItIoNAl DISCloSurES:I. DEtAIlS oF ProVISIoNING PErtAINING to FrAuD ACCouNtS Thefollowingtablesetsforth,fortheperiodsindicated,thedetailsofprovisioning
pertainingtofraudaccounts. (Amountin‘000s)
Particulars 2017-18
NumberofFraudsreported -
Amountinvolvedinfrauds -
Provisionmade -
Unamortizedprovisiondebitedfromotherreserve -
II. FloAtING ProVISIoN Thisbeingthefirstfinancialyear,theBankhasnotmadeanyfloatingprovisionsfor
thecurrentyear.
III. DrAWDoWN From rESErVES Duringthefinancialyearended31March2018,therehasbeennodrawdownfrom
Reserves.
IV. DISCloSurE oF ComPlAINtS/uNImPlEmENtED AWArDS oF BANKING omBuDSmAN
InaccordancewithRBIcircularDBOD.No.Leg.BC.60/09.07.005/2006-07dated22February2007detailsofcustomercomplaintsandawardspassedbyBankingOmbudsmanareasunder:
a. Customer complaints
SN Particulars 2017-18
i. No.ofcomplaintspendingatthebeginningoftheyear -
ii. No.ofcomplaintsreceivedduringtheyear -
iii. No.ofcomplaintsredressedduringtheyear -
iv. No.ofcomplaintspendingattheendoftheyear -
b. Awards passed by the Banking ombudsman
SN Particulars 2017-18
i. No.ofunimplementedawardsatthebeginningoftheyear -
ii. No.ofawardspassedbytheBankingOmbudsmanduringtheyear. -
iii. No.ofawardsimplementedduringtheyear -
iv. No.ofunimplementedawardsattheendoftheyear -
V. DISCloSurE oF lEttErS oF ComFort (loCS) ISSuED BY BANKS TheBankhasnotissuedanyLetterofComfort(LOCs)duringtheyear.
VI. BANCASSurANCE BuSINESS Nofees/remunerationhadbeenreceivedinrespectofthebankassurancebusiness
duringtheyearended31March2018.
VII. CoNCENtrAtIoN oF DEPoSItS, ADVANCES, ExPoSurES AND NPAs - a. Concentration of Deposits
(Amountin‘000s)
Particulars 2017-18
Totaldepositsoftwentylargestdepositors 9,12,874
Percentageofdepositsoftwentylargestdepositorstototaldepositsofthebank(includesinter-bankdeposits) 99.94%
b. Concentration of Advances** (Amountin‘000s)
Particulars 2017-18
Totaladvancesoftwentylargestborrowers* 75,518
Percentageofadvancesoftwentylargestborrowerstototaladvancesofthebank 1.31%
*excludinginterbankexposuresandbasedonactualfundedutilisation**AdvancesarecomputedasperdefinitionofCreditExposureincludingderivativesfurnishedinMasterCircularofExposurenorms. c. Concentration of Exposures@ (Amountin‘000s)
Particulars 2017-18
Totalexposuretotwentylargestborrowers/customers* 10,39,000
Percentageofexposuretotwentylargestborrowers/customerstototalexposureofthebankonborrowers/customers 15.40%
*excludinginterbankexposures@ExposuresarecomputedbasedonCreditandInvestmentExposurefurnishedinMasterCircularofExposureNorms.
d. Concentration of NPAs (Amountin‘000s)
Particulars 2017-18
TotalexposuretotopfourNPAaccount -
VIII. SECtor WISE ADVANCES & NPAs (Amountin‘000s)
Sr. No. Sector
2017-18
outstanding total
Advances
Gross NPAs
% of Gross NPAs to total Advances
in that Sector
A Priority Sector
1 Agricultureandalliedactivities - - -
2Advancestoindustriessectoreligible as priority sectorlending
18,12,102 - -
3 Services 69,000 - -
4 Personalloans - - -
Sub-total (A) 18,81,102 - -
B Non Priority Sector
1 Agricultureandalliedactivities - - -
2 Industry - - -
3 Services 39,01,623 - -
4 Personalloans - - -
Sub-total (B) 39,01,623 - -
total (A+B) 57,82,725 - -
IX. Priority Sector Lending Certificate (PSLC) TheBankhadnotpurchasedanyPSLCsduringtheyearended31March2018
X. moVEmENt oF NPAs (Amountin‘000s)
Particulars 2017-18
Openingbalance -
Additions(FreshNPAs)duringtheyear -
Sub-total(A) -
Less:
(i)Upgradations -
(ii)Recoveries(excludingrecoveriesmadefromupgradedaccounts) -
(iii)Write-offs -
Sub-total(B) -
Closingbalance(A-B) -
13
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
XI. DIVErGENCE IN ASSEt ClASSIFICAtIoN AND ProVISIoNING For NPAs ThedisclosureinrespectofdivergenceinAssetclassificationisnotapplicable.
XII. oVErSEAS ASSEtS, NPA AND rEVENuE TheBankdoesnothaveanyOverseasAssetsandNPA’sasat31March2018and
hencerelatedrevenuesfortheyearended31March2018isNIL.
XIII. oFF-BAlANCE ShEEt SPVs SPoNSorED (WhICh ArE rEQuIrED to BE CoNSolIDAtED AS PEr ACCouNtING NormS) For F.Y. 2017-18
Name of the SPV sponsored
Domestic overseas
- -
XIV. Thebankhasnotundertakenanyfactoringbusinessduringthefinancialyear2017-18
XV. uNAmortISED PENSIoN AND GrAtuItY lIABIlItIES TheBankdoesnothaveanyunamortisedPension/GratuityLiabilitiesasat31March
2018.
XVI. DISCloSurE oN rEmuNErAtIoN IntermsofguidelinesissuedbyRBIvidecircularno.DBOD.NO.BC.72/29.67.001/2011-12
dated13January2012on“CompensationofWholeTimeDirectors/ChiefExecutiveOfficers/Risk takers andControl function staff, etc.”, the bank has submitted adeclarationtoRBItotheeffect that thecompensationstructure inIndia, includingthatofCEO’s,followsthebasicprinciplesandstandardsofFinancialStabilityBoard(FSB).
XVII. DISCloSurES rElAtING to SECurItIZAtIoN Therewerenosecuritizedassetsoutstandingason31March2018.
XVIII.CrEDIt DEFAult SWAPS (CDS) TheBankhasnotenteredintoCDStransactionduringthecurrentyear.
XIX. ProVISIoN For loNG tErm CoNtrACtS
TheBank has a processwhereby periodically all long term contracts (includingderivativecontracts)areassessedformaterialforeseeablelosses.Attheyearend,theBankhasreviewedandrecordedadequateprovisionasrequiredunderanylaw/accountingstandardsformaterial foreseeable lossesonsuchlongtermcontracts(includingderivativecontracts)inthebooksofaccountanddisclosedthesameundertherelevantnotesinthefinancialstatements.
XX. INtrA GrouP ExPoSurE Intra-GroupExposuresason31March2018is26,232(in000s).
XXI.trANSFEr to DEPoSItor EDuCAtIoN AND AWArENESS FuND (DEAF)(Amountin‘000s)
Particulars 2017-18
OpeningbalanceofamountstransferredtoDEAF -
Add:AmountstransferredtoDEAFduringtheyear -
Less:AmountsreimbursedbyDEAFtowardsClaim -
ClosingbalanceofamountstransferredtoDEAF -
XXII. uNhEDGED ForEIGN CurrENCY ExPoSurE TheBankmonitorsUnhedgedForeignCurrencyExposure(UHFCE)tofactortherisk
arisingfromcurrencyvolatilityintopricingaspertheguidelinesstipulatedbyRBIon15January2014.AtthetimeofassessingtheproposaltheBanktakesthepositionofUHFCEfornewborrowersandcalculatestheincrementalprovisioningandcapitalrequirementtoadjustthepricingofnewloans.Thereafterbasedonthecertificateprovidedbythecustomer,theBankcalculatestheincrementalprovisioningandcapitalrequirementforcustomereveryquarterasperthemethodologysuggestedasperRBIcircular.ProvisiontowardsUHFCEisNILat31March2018.
XXIII.lIQuIDItY CoVErAGE rAtIo TheBankhasbeencomputingitsLCRonamonthlybasissinceAugust2017.Themonthly
averageliquiditycoverageratio(LCR)maintainedforthequarterended31March2018 was5,788.87%.
ThefollowingtablesetsforthmonthlyaverageunweightedandweightedvalueoftheLCRoftheBankforquartersended30 September 2017, 31 December 2017 and 31 March 2018.
Sr. No. Particulars
30-Sep-17 31-Dec-17 31-mar-18total unweighted Value (Average)
total Weighted Value (Average)
total unweighted Value (Average)
total Weighted Value (Average)
total unweighted Value (Average)
total Weighted Value (Average)
high Quality liquid Assets1 TotalHighQualityLiquidAssets(HQLA) 4,253 28,85,533 25,67,781
Cash Outflows
2 Retaildepositsanddepositsfromsmallbusinesscustomers,ofwhich: 1,802 158 5,50,529 55,013 8,35,427 83,444
(i)Stabledeposits 448 22 801 40 1,983 99
(ii)Lessstabledeposits 1,354 136 5,49,728 54,973 8,33,444 83,345
3 Unsecuredwholesalefunding,ofwhich: - - 21,034 20,742 35,562 22,795
(i)Operationaldeposits(allcounterparties) - - - - - -
(ii)Non-operationaldeposits(allcounterparties) - - 21,034 20,742 35,562 22,795
(iii)Unsecureddebt - - - - - -
4 Securedwholesalefunding - - -
5 Additionalrequirements,ofwhich - - 19,333 1,933 42,528 7,728
(i)Outflowsrelatedtoderivativeexposuresandothercollateralrequirements - - - - 3,862 3,862
(ii)Outflowsrelatedtolossoffundingondebtproducts - - - - - -
(iii)Creditandliquidityfacilities - - 19,333 1,933 38,666 3,866
6 Othercontractualfundingobligations 6,302 6,302 17,242 17,242 27,703 27,703
Othercontractualfundingobligations - - 4,669 140 11,91,968 35,759
8 Total Cash Outflows 6,459 95,070 177,429Cash Inflows
9 Securedlending(e.g.reverserepos) - - - - - -
10 Inflowsfromfullyperformingexposures 29,68,300 29,68,300 22,48,333 22,48,333 673,121 673,121
11 Othercashinflows - - - - 3,441 3,441
12 Total Cash Inflows 29,68,300 29,68,300 22,48,333 22,48,333 6,76,562 6,76,562
21 total hQlA 4,253 28,85,533 25,67,78122 Total Net Cash Outflows 1,615 23,768 44,35723 liquidity Coverage ratio (%) 263.37% 12,140.61% 5,788.87%
14
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Qualitative disclosure around lCr:Refer LCR Circular for Disclosure Requirements hereunder
(a) Drivers of LCR results and Composition of HQLA:The LCR standard aims to ensure that a bank maintains adequate level of unencumbered HQLA that can be converted into cash to meet its liquidity needs for a 30 calendar day time horizon under significantly severe liquidity stress scenario as specified by supervisors.The Bank’s High Quality Liquid Assets (HQLA) primarily consist of excess SLR securities in the form of Government securities,9% of NDTL under FALLCR (as permissible by RBI),2% MSF (as permissible by RBI),balance maintained with RBI in excess of CRR requirement which are considered as Level 1 High Quality Liquid Assets (HQLA).Bank also has investments in Commercial paper issued by a Financial Institution (FI).Commercial Paper issued by FI are considered as HQLA Level 2 Asset for LCR computation.
(b) Intra-period changes:As per RBI guidelines,the LCR maintenance limit is 80% for 2017 and 90% for 2018.The LCR maintained has always been above the RBI limit.The intra period changes mainly on account of change in un-encumbered excess SLR positions.
(c) DerivativeExposureandpotentialcollateralcalls:Bankdoesnothaveanyderivativeoutstandingas31March2018.However,MTMarisingoutofoutstandingFX(maturinguptoSPOT)hasbeenappropriatelyconsideredLCRcomputation.
(d) Currencymismatches:LCRcomputationisaggregatedacrosscurrencies,INRbeingthepredominantcurrency.OtherthanINR,theBankhasmajorexposureinUSdollarsastherearepreandpostshipmentloansbookedindollars.TheseloansarefundedthroughUSdollarborrowingfromtheheadofficeformatchingtenorsandportfolio.
(e) Degreeofcentralisationofliquiditymanagement:Bank’sliquiditymanagementandmonitoringiscentralised.Bank’sEXCOhasadoptedliquiditymanagementpolicyinlineRBIregulationandGrouprequirement.
(f) OtherinflowsandoutflowsintheLCRcalculationthatarenotcapturedintheLCRcommontemplatebutwhichtheinstitutionconsiderstoberelevantfor itsliquidityprofile:All the inflowsandoutflowsconsiderednecessary fromthebalancesheetarecapturedincomputationofLCR.Further,theBankbelievesthattheinflowsandoutflowswhichmighthaveamaterialimpactundertheliquiditystressscenariohavebeenconsideredforthepurposeofLCR.
XXIV.DISCloSurE oN NoStro ACCouNtS Therearenooutstandingentryformorethanthreemonthsinnostroaccountswhich
ispendingforreconciliation.Further,theBankhasnotwrittenoff/backanyoutstandingentrytothedebit/creditoftheprofitandlossaccountduringtheyearended31March2018.
XXV. CorPorAtE SoCIAl rESPoNSIBIlItY (CSr) AspertheprovisionsofSection135oftheCompaniesAct,2013,theBankisnot
requiredtospendtowardsCSRduetothelossesincurrentyear.
XXVI.PrEVIouS YEAr’S ComPArAtIVE Thebankcommencedoperationduringthecurrentfinancialyearandhencethere
arenopreviousyearfiguresforcomparison.
For Khimji & Kunverji & Co.Chartered AccountantsFirmRegistrationNo.105146W
For Emirates NBD Bank PJSC, India Branch
Vinit K JainPartnerMembershipNo.F-145911
Sharad Agarwal ChiefExecutiveOfficer
Place:MumbaiDate:26Jun2018
Place:MumbaiDate:26Jun2018
BASEl III DISCloSurES oF thE INDIA BrANCh For thE YEAr ENDED 31 mArCh 2018
All amts. in INr. ’000s, unless otherwise statedDF 1. Scope of application1. Qualitative and Quantitative Disclosures: TheBankissubjecttothecapitaladequacyguidelinesstipulatedbyRBI,whichare
basedontheframeworkoftheBaselCommitteeonBankingSupervision.AsperBaselIIIguidelines,theBankisrequiredtoachieveaminimumCapitaltoRiskWeightedAssetsRatio (CRAR)of 9% {11.5% includingCapitalConservationBuffer (CCB)},withminimumCommonEquityTier I (CET1)of5.5% (8% includingCCB)by31stMarch2019.TheseguidelinesonBaselIIIweretobeimplementedbybanksfrom1stApril2013inaphasedmanner.TheminimumcapitalrequiredtobemaintainedbytheBankfortheyearended31stMarch2018is9%(10.875%includingCCB)withminimumCommonEquityTier1(CET1)of5.5%(7.375%includingCCB).Theriskmanagementframeworkof Indianoperations is integratedwiththeBank’sstrategyand business planning processes at global level. The Bank has comprehensiverisk management framework to monitor, evaluate and manage the principal risksassumed in conducting its activities.The riskmanagement function in India is asperdirectivesandframeworksetoutatHeadOfficelevel.Asat31March2018,theBankdoesnothaveany investment insubsidiaries/JointVenturesandAssociates,significantminorityequityinvestmentininsurance,financialandcommercialentities.
2. Capital structure Qualitative Disclosures Bankregulatorycapitalconsistsoftwocomponents–Tier1capitalandTier2capital.
Both components of capital provide support for banking operations and protectdepositors.AsperReserveBankofIndia(RBI)guidelines,thecompositionofcapitalinstrumentsforforeignbanksinIndiawouldincludethefollowingelements:
Tier1Capital:● Interest-freefundsreceivedfromHeadOffice● StatutoryreserveskeptinIndianbooks● RemittablesurplusretainedinIndianbookswhichisnotrepatriablesolongas
thebankfunctionsinIndia● CapitalReserves● Interest-freefundsremittedfromHeadOfficeforacquisitionofproperty
Tier2Capital:● Generalprovisionsandlossreserves: Generalprovisionsandlossreservescanbereckoneduptoamaximumof1.25
percentofthetotalCreditrisk-weightedassets.Suchprovisionsandreservesinclude provisions on StandardAssets, Country Risk Exposures, UnhedgedForeignCurrencyExposuresandInvestmentReserveAccount.
● HeadOfficeborrowingsinforeigncurrencyraisedbyforeignbanksoperatinginIndiaclassifiedasSubordinatedDebtsubjecttoamaximumceilingof50%oftheTier1capitalmaintainedinIndia.
Quantitative Disclosures(a) Tier1Capital (Rs.000’s)
AmountReceivedfromHeadOffice 6,437,100
TransferofHeadOfficefundsonaccountofRepresentativeOfficeclosure 103,658
StatutoryReserves -
RemittableSurplusRetainedinIndiaforCRAR -
CapitalReserves -
Interest-freefundsremittedfromHeadOfficeforacquisitionofproperty -
Less:AccumulatedLosses 171,707
Less:IntangibleAssetsandDeferredTaxAssets 208,553
total tier 1 Capital 6,160,498
(b) Tier2Capital (Rs.000’s)
GeneralProvisionsandlossReservesreckoneduptoamaximumof1.25percentofthetotalCreditrisk-weightedassets 23,131
Amounteligibletobereckonedascapitalfunds 23,131
(c) DebtCapitalInstrumentsEligibleforinclusioninUpperTier2Capital(Rs.000’s)
TotalAmountOutstanding -
ofwhichamountraisedduringthecurrentyear -
Amounteligibletobereckonedascapitalfunds -
(d) SubordinatedDebtEligibleforinclusioninLowerTier2Capital(Rs.000’s)
Totalamountoutstanding -
ofwhichamountraisedduringthecurrentyear -
Amounteligibletobereckonedascapitalfunds -
total tier 2 Capital (b) + (c) + (d) 23,131
15
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
(e) Otherdeductionfromcapital. Therearenootherdeductionsfromcapital.(f) TotalEligibleCapital ThetotaleligiblecapitalisRs.6,183,629(‘000s).
DF 2. Capital Adequacy Qualitative DisclosuresTheBankhasassessed itscapital requirement taking intoaccount the3mainrisksasdefinedbyPillar1of theBasel IIInormsviz:CreditRisk,MarketRiskandOperationalRisk.CreditRiskiscomputedusingtheStandardisedApproach,MarketRiskiscalculatedusing the Standardised Duration Approach and Operational Risk is calculated usingtheBasicIndicatorApproach.Theriskcomputationundereachofthese3categoriesisadequatelycoveredbytheCapitaloftheBank.TheBankhasassesseditsfuturecapitalrequirementandthesamewillbedocumentedintheICAAP(InternalCapitalAdequacyAssessmentProcess)basedonthepositionasofMarch31,2018.Thecapitalrequirementwillbere-assessedperiodically.TheexistinglevelofCapitalisadequatetomeettheBank’scurrentandfuturebusinessrequirementsandthecapitalandCRARratiooftheBankissignificantlyhigherthantheminimumregulatorycapitaland ratioprescribedby theReserveBankof India (RBI).AsummaryoftheBank’scapitalrequirementforcredit,marketandoperationalriskandthecapitaladequacyratioason31stMarch2018ispresentedbelow:Quantitative Disclosures (Rs.000’s)
(a) CapitalRequirementsforCreditRisk:
PortfoliossubjecttoStandardisedApproach 307,511
SecuritisationExposures -
(b) CapitalRequirementsforMarketRisk:StandardisedDurationApproach
InterestRateRisk 65,729
ForeignExchangerisk(includingGold) 96,350
EquityRisk -
(c) CapitalRequirementsforOperationalRisk:
BasicIndicatorApproach 64,586
TotalCapitalRequired 534,176
TotalEligibleCapital 6,183,629
TotalRiskWeightedAssets 4,911,964
TotalCapitalRatio 125.89%
Tier1CapitalRatio 125.42%
DF -3: Credit risk : General DisclosuresQualitative DisclosuresCredit risk isdefinedasriskoffinancial lossarisingfromthefailureof thecustomerorcounterparty,tomeetitscontractualobligationstotheBank.Itcanarisefrombothfundedandnon-fundedtransactionsthatarecontingentinnature.Credit risk management approach is based on the foundation of independence andintegrityof thecreditriskassessment,managementandreportingprocessescombinedwith clear policies, limits and approval structures. Standard procedures specific tobusinesses are set up to manage various risks across different business segments,productsandportfolios.Thecreditpolicyfocusesonthecorecreditprinciplesanddetails,specificpolicyguidelines,lending parameters, control and monitoring requirements, problem loan identification,managementofhighriskcustomersandprovisioning.Credit facilities are granted based on the detailed credit risk assessment of thecounterparty. The assessment considers amongst other things the purpose of thefacility,sourcesofre-payment,prevailingandpotentialmacro-economicfactors,industrytrends,customers’creditworthinessandstandingwithin the industry.Thecredit facilityadministration process is undertaken by an independent function to ensure properexecutionofallcreditapprovals,maintenance,lodgmentofdocumentationandproactivecontrolsovermaturities,expiryoflimitsandcollaterals.Operationsaremanagedbyindependentunitsresponsibleforprocessingtransactionsinlinewithcreditapprovalsandstandardoperatingguidelines.The internal rating models measure counterparty risk (expressed as a probability ofdefault within one year). The risk on counterparty exposure onmarket transactions ismeasuredby theguidanceprovidedby theRBI.TheBankhasawell-definedprocessfor identification ofweaker credit risk exposures [classified asEarlyAlert (EA),WatchList(WL)&Non-Performing(NPA)Accounts]anddealingwiththemeffectively.TherearepolicieswhichgoverncreditgradingofEA,WL&NPAsaswellasinterestsuspensionandprovisioning,inlinewithRBIguidelines.ExposuresareclassifiedasNPAs(sub-standard,doubtfulorloss)inlinewithRBIguidelinesattheearlierofassessmentofinabilitytorepayorwhen interest or loan instalments, overdrafts and bills are overdue, out of order orremainunpaidrespectivelyfor90days.Thereareinternalcapsoninvestmentexposures,exposuretosensitivesectors,exposuretosingleobligorsandgroups.Therearealsospecificcontrolsonexposurestobanksandfinancialinstitutions,designedtoensureagainstexcessiveriskconcentration.ThereisaspecializedandcentralizeddepartmentattheGroupHeadOfficeformanagingfinancial
institutions.
Quantitative Disclosures(a) Totalgrosscreditriskexposure (Rs.000’s)
Particulars Fund Based (Note 1)
Non Fund Based(Note 2) total
Asat31March2018 5,782,725 1,829,454 7,612,179
1. TheaboveamountsrepresentGrossAdvancesbeforecreditriskmitigants.2. NonfundbasedexposuresexcludesexposurespertainingtoFXandDerivatives
(b) Geographicdistributionofexposures (Rs.000’s)
ParticularsAs at 31 march 2018
Fund Based Non Fund Based totalOverseas - - -
Domestic 5,782,725 1,829,454 7,612,179
Total 5,782,725 1,829,454 7,612,179
(c) Industrytypedistributionofexposures (Rs.000’s)
IndustryAs at 31 march 2018
Fund Based Non Fund Based totalGemsandJewellery 6,517 - 6,517
OtherIndustries - 1,666 1,666
ResiduaryOtherAdvances 5,776,208 1,827,788 7,603,996
Total 5,782,725 1,829,454 7,612,179
d) Residualcontractualmaturitybreakdownofassets (Rs.000’s)
As at 31 march 2018
1 day 1,132,599
2-7days 333,371
8-14days 917,871
15-30days 2,676,465
31daysandupto2months 1,294,565
over2monthsandupto3months 1,357,443
Over3Monthsandupto6months 1,996,933
Over6Monthsandupto1year 123,979
Over1Yearandupto3years 156,912
Over3Yearsandupto5years 86,199
Over5years 493,918
total 10,570,255
(e) AmountofNPAs(Gross)–Nil
(f) NetNPAs–NIL
(g) NPARatios GrossNPAstogrossadvances-0.00% NetNPAstonetadvances-0.00%(h) MovementofNPAs (Rs.000’s)
GrossNPAs Provision NetNPA
Openingbalance - - -
Additions - - -
Reduction(includingwritebacks/writeoffs) - - -
Closingbalance - - -
(i) Nonperforminginvestments–Nil(j) Provisionsheldfornon-performinginvestments–Nil(k) Movementofprovisionsfordepreciationoninvestments (Rs.000’s)
Particulars 2017-18
OpeningBalanceatbeginningoftheyear -
Add:Provisionsmadeduringtheyear 7,260
Less:Write-off/write-backofexcessprovisionsduringtheyear -
ClosingBalanceatendoftheyear 7,260
16
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
DF 4. Credit risk: disclosures for portfolios subject to the standardised approachQualitative DisclosuresTheBank follows theRBIguidelineson theuseofexternal credit ratings forassigningriskweightsunderthestandardisedapproach.RatingsofthefollowingIndiancreditratingagencies are used for domestic non-bank entities – Brickworks Ratings India Pvt Ltd,CreditAnalysisandResearchLtd,CRISILLtd,ICRALtd,IndiaRatingsandResearchLtd,SMERatingAgencyofIndiaLtd,whileratingsfrominternationalratingagencies-Fitch,Moody’sandStandard&Poor’s–areconsideredforassigningriskweightsforexposurestointernationalbanksandnon-residententities.Amountoutstandingundervariousriskbuckets: (Rs.000’s)
Particulars As at 31 march 2018Below100%riskweight 10,047,126
100%riskweight 280,840
Morethan100%riskweight -
Deducted -
total ** 10,327,966**TheamountoutstandingundervariousriskbucketsexcludesexposurestoQCCPandarepriortocreditriskmitigants.
DF 5. Credit risk mitigation: disclosures for standardised approaches:Qualitative DisclosuresCollaterals and guarantees are effectively used as mitigating tools by the Bank. Thequality of collateral is continuously monitored and assessed and the Bank seeks toensure enforceability of the collateral. Major categories of collaterals include lien overcash /fixeddeposits,pledgeoversecurities,guarantees(corporate,bankandpersonalguarantees), mortgage over immovable properties, hypothecation of current assets,includingreceivablesandinventory,andvehicles.CollateralsarerevaluedregularlyaspertheGroup’screditpolicy.Inaddition,adhocvaluationsarealsocarriedoutdependingonthenatureofcollateralandgeneraleconomiccondition.ThisenablestheBanktoassessthe fairmarket value of the collateral and ensure that risks are appropriately covered.Securitystructuresandlegalcovenantsarealsosubjecttoregularreview.Eligible collateral formitigation isasperRBIguidelines–cash,government securities,KisanVikasPatraandNationalSavingsCertificates,lifeinsurancepolicies,liquid/rateddebtsecurities,andmutualfundunits.Quantitative Disclosures:AsonMarch31,2018,thetotalexposurecoveredbyeligiblefinancialcollateralwasRs.1,189,456thousand.
DF 6. Securitisation: disclosure for standardised approachTheBankhasnotundertakenanysecuritizationtransactionsorhaveanyexposures.
DF 7. market risk in trading bookQualitative DisclosuresMarket risk is therisk that thevalueoffinancial instruments in theBank’sbooks–withtheinclusionofsomeotherfinancialassetsandliabilities-willproducealossbecauseofchangesinfuturemarketconditions.TheBanktakesonrisksinthepursuitofitsstrategicand business objectives. The Bankmonitors andmanages the following categories ofmarketrisk:● InterestRateRisk:lossesinvalueduetochangesinthelevel,slopeandcurvatureof
yieldcurves,thevolatilityofinterestratesandchangesincreditspreads;● FXRisk:lossesinvalueduetoexposurestochangesinspotprices,forwardprices
andvolatilitiesofcurrencyrates.TheBank’sriskexposurestomarketriskaresegregatedintoTradingandBankingBooks.TheTradingBookincludethosefinancialinstrumentsheldwithtradingintentarisingfrommarket-making,position-takingandothersodesignatedfinancial instrumentsaccountedforat fairvaluedaily.Capitalcharge formarket riskexposures in theTradingBookareconsideredundertheStandardisedDurationApproach.MarketRiskOversightandManagementProcessAs part of the enterprise-wide risk management framework, a governance process isappliedtothemarketrisktakingactivitieswhichincludes,interalia.● risk limits with appropriate monitoring, reporting and limits excesses’ escalation
procedures;● independentvaluationoffinancialinstrumentsintheTradingBookandmeasurement
ofmarketrisk;● acomprehensivesetofpolicies,proceduresandlimits;and● monitoringawiderangeofriskmetricsappropriatefortherespectivetradingactivities
-suchasrisksensitivities,NetOpenPositionsandValue-at-Risk(VaR).Experienced portfolio managers are accountable for managing market risk within theapprovedlimits.TheBankusesappropriateandindependentlyvalidatedmarketstandardmodels for the revaluation and risk measurement of its linear financial products andreceives regularmarket information from independentmarketdataproviders inorder tomeasureandmonitormarketrisk.Value-at-Risk(VaR)iscalculateddaily,currentlyforFXandinduecourseforrates,usingthefollowingparameters● Statisticallevelofconfidence:99%;● Holdingperiod:1businessday;● Methodology:FullRevaluation,HistoricalSimulationusingover2yearsofhistorical
marketdata.
Quantitative disclosuresCapitalrequirementsformarketrisk (Rs.000’s)
Standardised duration approach As at 31.03.2018
Interestraterisk 65,729
Foreignexchangerisk 96,350
Equityrisk -
Capitalrequirementsformarketrisk 162,079
DF 8. operational risk:Qualitative disclosuresOperationalriskisdefinedastheriskoflossesresultingfrominadequateorfailedinternalprocesses,peopleandsystems,orfromexternalevents.TheBank’sobjectiveistopreventmajoroperationalrisklossesandtoprotecttheBankagainstanymaterialdamage.The Bank uses the Basic Indicator Approach to estimate operational risk RWAs andcapital requirements.A framework for pro-activelymanaging operational risk has beenestablished. The Bank has a holistic approach to systematically identify, assess andmanageoperationalrisksacrossdifferentproducts,processes,andclientsegments.Keytools/methodologiesforthemanagementofoperationalriskinclude:● operationalriskandcontrolassessments;● settingandmonitoringofkeyriskindicators;● reportingandremediationofoperationalriskincidents;● issuesandactiontracking;and● newproductandprocessapprovals.Acomprehensiveinformationsecurityframeworkhasbeenimplementedtosafeguarddataandsystems.Requisitepoliciesandprocessesareinplacetoreportandmonitorfraud.TheBankobtainscomprehensiveandtailoredinsurancecovertoprotecttheBankagainstunexpectedandsubstantialunforeseeablelosses.Business Continuity Management is defined as a holistic management process thatidentifies potential threats to an organisation and the impacts to business operationsthatthosethreats, ifrealised,mightcause,andwhichprovidesaframeworkforbuildingorganisational resilience with the capability for an effective response that safeguardsthe interestsof itskeystakeholders,reputation,brandandvalue-creatingactivities.Thebusiness continuity process across the Group is based on the international standardISO22301:2012(E).TheBankhasdevelopedabusinesscontinuityplanandthealternatesiteisnowoperationalandhasbeenrecentlytested.
DF 9. Interest rate risk in the banking book (IrrBB)InterestRateRiskintheBankingBook(‘IRRBB’)isdefinedastheexposureofthenon-tradingproductsof theBank to interest rates.Non-tradingportfolios includeallbankingbookpositionsthatarisefromtheinterestrateontheBank’sconsumerandcommercialbankingassetsand liabilities,andfinancial investmentsdesignatedasheld tomaturity.IRRBBarisesprincipallyfrommismatchesbetweenthefutureyieldsonassetsandtheirfundingcosts,asaresultofinterestratechanges.Inordertomanagethisriskoptimally,IRRBBistransferredtoGroupMarkets&Treasury(GM&T)underthesupervisionoftheALCO.ALCOisrequiredtoregularlymonitorallsuchinterestrateriskpositionstoensuretheycomplywithinterestraterisklimits.Formeasuringoverall interestsensitivity in thebankingbook, theBankconsidersgapsininterestratesensitiveassetsandliabilitiesinvariousbucketsaswellastheimpactonMarketValueofEquityonamonthlybasis.
Quantitative DisclosuresAsrequiredunderPillarIIInorms,theincrease/declineinearningsandeconomicvalueforanupward/downwardrateshockof200basispointsason31March2018,brokendownbycurrencyisasfollows:EarningsPerspective (Rs.000’s)
CurrencyInterestRateShock
2%Increase 2%Decrease
Rupeesandothermajorcurrencies 3,717 (3,717)
USDollar 3 (3)
EconomicValuePerspective (Rs.000’s)
CurrencyInterestRateShock
2%Increase 2%Decrease
Rupeesandothermajorcurrencies 15,401 (15,401)
USDollar Nil Nil
DF 10. General Disclosure for exposures related to Counterparty Credit riskQualitative disclosuresCounterpartyCreditRisk (CCR) is the risk that thepersonor institutionwithwhom theBankhasenteredintoafinancialmarketcontract–whoisacounterpartytothecontract–couldeitherdefaultordeteriorateincreditworthinessleadingtoafailuretoperformonitscontractualobligations,causinglossestotheBank.Thefuturemarketvalueoftheexposureandthecounterparty’screditqualityareuncertainandmayvaryovertimeasunderlyingmarketvariableschange.CCRisamultidimensionalformof risk,affectedbyboth theexposure tocounterpartyand thecreditqualityof thecounterparty,bothofwhicharesensitivetomarket-inducedchanges.
17
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Forlocalregulatoryandcapitalpurposes,thecreditequivalentamountofamarketrelatedoff-balance sheet transaction is calculatedusing the current exposuremethodwhich isthe sumof current credit exposure (positivemark-to-market) andpotential future creditexposure(determinedbymultiplyingthenotionalprincipalamountbytherelevantadd-onfactor).SettlementRisk ariseswhen theGroup, acting as a principal, exchanges securities orcashpaymentstoacounterpartyonavaluedateandisunabletoverifythatpaymentorsecuritieshavebeenreceived inexchangeuntilafter ithaspaidordelivered itssideoftransaction.
Counter-party credit risk exposures are required to be assessed and limits are to beapprovedaspartoftheusualcreditsubmissionandapprovalprocess.WrongWayRisk (WWR)ariseswhen there isadverse (positive) correlationbetweenaclient’s credit worthiness (probability of default) and the Bank’s credit exposure to thatclient.WWRisgenerallydiscouragedandisrequiredtobeidentifiedandspecificapprovalobtained.Quantitative disclosuresAson31March2018,thebankhadnoexposuretoFXcontractsbeyondspotmaturity.
DF 11. Composition of capital (Rs.in‘000s)
Particulars AmountAmounts Subject
to Pre-Basel III treatment
ref No.
Common Equity tier 1 capital: instruments and reserves1 Directlyissuedqualifyingcommonsharecapitalplusrelatedstocksurplus(sharepremium)(FundsfromHeadOffice) 6,540,758 - a
2 Retainedearnings - - -
3 Accumulatedothercomprehensiveincome(andotherreserves) - -
4 DirectlyissuedcapitalsubjecttophaseoutfromCET1(onlyapplicabletonon-jointstockcompanies) - -
Public sector capital injections grandfathered until January 1, 2018 - -
5 Commonsharecapitalissuedbysubsidiariesandheldbythirdparties(amountallowedingroupCET1) - -
6 Common Equity tier 1 capital before regulatory adjustments 6,540,758 -
Common Equity tier 1 capital : regulatory adjustments7 Prudentialvaluationadjustments - -
8 Goodwill(netofrelatedtaxliability) - -
9 Intangiblesotherthanmortgage-servicingrights(netofrelatedtaxliability) 380,260 - b+c
10 Deferredtaxassets - -
11 Cash-flowhedgereserve - -
12 Shortfallofprovisionstoexpectedlosses - -
13 Securitisationgainonsale - -
14 Gainsandlossesduetochangesinowncreditriskonfairvaluedliabilities - -
15 Defined-benefitpensionfundnetassets - -
16 Investmentsinownshares(ifnotalreadynettedoffpaid-upcapitalonreportedbalancesheet) - -
17 Reciprocalcross-holdingsincommonequity - -
18 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedsharecapital(amountabove10%threshold) - -
19 Significantinvestmentsinthecommonstockofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions(amountabove10%threshold) - -
20 Mortgageservicingrights(amountabove10%threshold) - -
21 Deferredtaxassetsarisingfromtemporarydifferences(amountabove10%threshold,netofrelatedtaxliability) - -
22 Amountexceedingthe15%threshold - -
23 ofwhich:significantinvestmentsinthecommonstockoffinancialentities - -
24 ofwhich:mortgageservicingrights - -
25 ofwhich:deferredtaxassetsarisingfromtemporarydifferences - -
26 Nationalspecificregulatoryadjustments(26a+26b+26c) - -
26a ofwhich:Investmentsintheequitycapitalofunconsolidatednon-financialsubsidiaries - -
26b ofwhich:Shortfallintheequitycapitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththebank - -
26c ofwhich:Unamortisedpensionfundsexpenditures - -
RegulatoryAdjustmentsAppliedtoCommonEquityTier1inrespectofAmountsSubjecttoPre-BaselIIITreatment - -
ofwhich:HODebitBalance - -
27 RegulatoryadjustmentsappliedtoCommonEquityTier1duetoinsufficientAdditionalTier1andTier2tocoverdeductions - -
28 total regulatory adjustments to Common equity tier 1 380,260 -
29 Common Equity tier 1 capital (CEt1) 6,160,498 -
Additional tier 1 capital : instruments30 DirectlyissuedqualifyingAdditionalTier1instrumentsplusrelatedstocksurplus(sharepremium)(31+32) - -
31 ofwhich:classifiedasequityunderapplicableaccountingstandards(PerpetualNon-CumulativePreferenceShares) - -
32 ofwhich:classifiedasliabilitiesunderapplicableaccountingstandards(PerpetualdebtInstruments) - -
33 DirectlyissuedcapitalinstrumentssubjecttophaseoutfromAdditionalTier1 - -
34 AdditionalTier1instruments(andCET1instrumentsnotincludedinrow5)issuedbysubsidiariesandheldbythirdparties(amountallowedingroupAT1) - -
35 ofwhich:instrumentsissuedbysubsidiariessubjecttophaseout - -
36 Additional tier 1 capital before regulatory adjustments - -
Additional tier 1 capital: regulatory adjustments37 InvestmentsinownAdditionalTier1instruments - -
18
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Particulars AmountAmounts Subject
to Pre-Basel III treatment
ref No.
38 Reciprocalcross-holdingsinAdditionalTier1instruments - -
39 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedcommonsharecapitaloftheentity(amountabove10%threshold)
- -
40 Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatoryconsolidation(netofeligibleshortpositions) - -
41 Nationalspecificregulatoryadjustments(41a+41b) - -
41a InvestmentsintheAdditionalTier1capitalofunconsolidatedinsurancesubsidiaries - -
41b ShortfallintheAdditionalTier1capitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththebank - -
Regulatory Adjustments Applied to Additional Tier 1 in respect of Amounts Subject to Pre-Basel III Treatment - -
ofwhich:.... - -
42 RegulatoryadjustmentsappliedtoAdditionalTier1duetoinsufficientTier2tocoverdeductions - -
43 total regulatory adjustments to Additional tier 1 capital - -
44 Additional tier 1 capital (At1) - -
44a Additional tier 1 capital reckoned for capital adequacy - -
45 tier 1 capital (t1 = CEt1 + Admissible At1) (29 + 44a) 6,160,498 -
tier 2 capital : instruments and provisions
46 DirectlyissuedqualifyingTier2instrumentsplusrelatedstocksurplus - -
47 DirectlyissuedcapitalinstrumentssubjecttophaseoutfromTier2 - -
48 Tier2instruments(andCET1andAT1instrumentsnotincludedinrows5or34)issuedbysubsidiariesandheldbythirdparties(amountallowedingroupTier2) - -
49 ofwhich:instrumentsissuedbysubsidiariessubjecttophaseout - -
50 Provisions(PleaserefertoNotetoTemplatePoint50) 23,131 - d
51 tier 2 capital before regulatory adjustments 23,131 -
tier 2 capital: regulatory adjustments
52 InvestmentsinownTier2instruments - -
53 Reciprocalcross-holdingsinTier2instruments - -
54 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedcommonsharecapitaloftheentity(amountabovethe10%threshold)
- -
55 Significant investments 13 in the capital banking, financial and insurance entities that are outside the scope of regulatoryconsolidation(netofeligibleshortpositions) - -
56 Nationalspecificregulatoryadjustments(56a+56b) - -
56a ofwhich:InvestmentsintheTier2capitalofunconsolidatedinsurancesubsidiaries - -
56b ofwhich: ShortfallintheTier2capitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththebank - -
RegulatoryAdjustmentsAppliedToTier2inrespectofAmountsSubjecttoPre-BaselIIITreatment - -
ofwhich:InvestmentsinSubsidiaries - -
57 total regulatory adjustments to tier 2 capital - -
58 tier 2 capital (t2) 23,131 -
58a tier 2 capital reckoned for capital adequacy 23.131 -
58b Excess Additional tier 1 capital reckoned as tier 2 capital - -
58c total tier 2 capital admissible for capital adequacy (58a + 58b) 23,131 -
59 total capital (tC = t1 + Admissible t2) (45 + 58c) 6,183,629 -
RiskWeightedAssetsinrespectofAmountsSubjecttoPre-BaselIIITreatment - -
ofwhich:...... - -
60 total risk weighted assets (60a + 60b + 60c) 4,911,964 -
60a ofwhich:totalcreditriskweightedassets 2,827,686 -
60b ofwhich:totalmarketriskweightedassets 1,490,384 -
60c ofwhich:totaloperationalriskweightedassets 593,894 -
Capital ratios
61 CommonEquityTier1(asapercentageofriskweightedassets) 125.42% -
62 Tier1(asapercentageofriskweightedassets) 125.42% -
63 Totalcapital(asapercentageofriskweightedassets) 125.89% -
64 Institution specific buffer requirement (minimum CET1 requirement plus capital conservation and countercyclical bufferrequirements,expressedasapercentageofriskweightedassets) 1.875% -
19
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Particulars AmountAmounts Subject
to Pre-Basel III treatment
ref No.
65 ofwhich:capitalconservationbufferrequirement 1.875% -
66 ofwhich:bankspecificcountercyclicalbufferrequirement - -
67 ofwhich:G-SIBbufferrequirement - -
68 CommonEquityTier1availabletomeetbuffers(asapercentageofriskweightedassets) 119.92% -
National minima (if different from Basel III)
69 NationalCommonEquityTier1minimumratio(ifdifferentfromBaselIIIminimum) 5.50% -
70 NationalTier1minimumratio(ifdifferentfromBaselIIIminimum) 7.00% -
71 Nationaltotalcapitalminimumratio(ifdifferentfromBaselIIIminimum) 10.875% -
Amounts below the thresholds for deduction (before risk weighting)
72 Non-significantinvestmentsinthecapitalofotherfinancialentities - -
73 Significantinvestmentsinthecommonstockoffinancialentities - -
74 Mortgageservicingrights(netofrelatedtaxliability) - -
75 Deferredtaxassetsarisingfromtemporarydifferences(netofrelatedtaxliability) - -
Applicable caps on the inclusion of provisions in tier 2
76 ProvisionseligibleforinclusioninTier2inrespectofexposuressubjecttostandardisedapproach(priortoapplicationofcap) 23,131 - d
77 CaponinclusionofprovisionsinTier2understandardisedapproach 35,346 -
78 ProvisionseligibleforinclusioninTier2inrespectofexposuressubjecttointernalratings-basedapproach(priortoapplicationofcap) - -
79 CapforinclusionofprovisionsinTier2underinternalratings-basedapproach - -
Capital instruments subject to phase-out arrangements (only applicable between 31 march 2017 and 31 march, 2022)
80 CurrentcaponCET1instrumentssubjecttophaseoutarrangements - -
81 AmountexcludedfromCET1duetocap(excessovercapafterredemptionsandmaturities) - -
82 CurrentcaponAT1instrumentssubjecttophaseoutarrangements - -
83 AmountexcludedfromAT1duetocap(excessovercapafterredemptionsandmaturities) - -
84 CurrentcaponT2instrumentssubjecttophaseoutarrangements - -
85 AmountexcludedfromT2duetocap(excessovercapafterredemptionsandmaturities) - -
Notetothetemplate
RowNo.ofthe template Particular Rs.in’000
10
Deferredtaxassetsassociatedwithaccumulatedlosses -
Deferredtaxassets(excludingthoseassociatedwithaccumulatedlosses)netofDeferredtaxliability -
Totalasindicatedinrow10 -
19
Ifinvestmentsininsurancesubsidiariesarenotdeductedfullyfromcapitalandinsteadconsideredunder10%thresholdfordeduction,theresultantincreaseinthecapitalofbank -
ofwhich:IncreaseinCommonEquityTier1capital -
ofwhich:IncreaseinAdditionalTier1capital -
ofwhich:IncreaseinTier2capital -
26b Ifinvestmentsintheequitycapitalofunconsolidatednon-financialsubsidiariesarenotdeductedandhence,riskweightedthen: -
(i) IncreaseinCommonEquityTier1capital -
(ii) Increaseinriskweightedassets -
44aExcessAdditionalTier1capitalnotreckonedforcapitaladequacy(differencebetweenAdditionalTier1capitalasreportedinrow44andadmissibleAdditionalTier1capitalasreportedin44a) -
ofwhich:ExcessAdditionalTier1capitalwhichisconsideredasTier2capitalunderrow58b -
50
EligibleProvisionsincludedinTier2capital 23,131
EligibleRevaluationReservesincludedinTier2capital -
Totalofrow50 23,131
58a ExcessTier2capitalnotreckonedforcapitaladequacy(differencebetweenTier2capitalasreportedinrow58andT2asreportedin58a) -
20
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
DF-12: Composition of Capital-reconciliation requirements (Rs.in‘000’)
Particulars
Balancesheetasinpublishedfinancial
statements Reference
Asat31.03.2018
A
Capital & liabilities
i.
Paid-upCapital(fundsfromHO) 6,540,758 a
Reserves&Surplus (171,707) c
MinorityInterest -
TotalCapital 6,369,051
ii.
Deposits 913,461
ofwhich:Depositsfrombanks 556
ofwhich:Customerdeposits 912,905
ofwhich:Otherdeposits(pl.specify) -
iii.
Borrowings 2,967,303
ofwhich:FromRBI 1,160,000
ofwhich:Frombanks -
ofwhich:Fromotherinstitutions&agencies -
ofwhich:Others(pl.specify)(BorrowingsoutsideIndia) 1,807,303
ofwhich:Capitalinstruments -
iv.Otherliabilities&provisions 320,440
ofwhich:ProvisionforStandardAdvances 23,131 d
total 10,570,255
B
Assets
i.CashandbalanceswithReserveBankofIndia 174,013
Balancewithbanksandmoneyatcallandshortnotice 1,006,573
ii.
Investments: 2,966,988
ofwhich:Governmentsecurities 2,386,302
ofwhich:Otherapprovedsecurities -
ofwhich:Shares -
ofwhich:Debentures&Bonds -
ofwhich:Subsidiaries/JointVentures/Associates -
ofwhich:Others(CommercialPapers,MutualFundsetc.) 580,686
iii.
Loansandadvances 5,782,725
ofwhich:Loansandadvancestobanks -
ofwhich:Loansandadvancestocustomers 5,782,725
iv.Fixedassets 329,597
ofwhich:ComputerSoftware 208,553 b
v.
Otherassets 310,359
ofwhich:Goodwillandintangibleassets -
ofwhich:Deferredtaxassets -
vi. Goodwillonconsolidation -
vii. DebitbalanceinProfit&Lossaccount -
total Assets 10,570,255
DF-13: main Features of regulatory Capital Instruments:
Item # Particulars Head Office Capital
1 Issuer EmiratesNBDBank(P.J.S.C)HeadOffice
2 UniqueIdentifier NotApplicable
3 Governinglawsoftheinstrument Applicableregulatoryrequirements
Regulatory Treatment
4 TransitionalBaselIIIrules CommonEquityTierI
5 Post-transitionalBaselIIIrules CommonEquityTierI
6 Eligibleatsolo/group/group&solo Solo
7 Instrumenttype Others-InterestfreefundsfromH.O
21
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Item # Particulars Head Office Capital
8 Amountrecognizedintheregulatorycapital(RsthousandasofMarch31,2018) 6,540,758
9 Parvalueofinstrument NotApplicable
10 Accountingclassification Shareholders’equity
11 Originaldateofissuance Atvarioustimessinceinception
12 PerpetualorDated Perpetual
13 OriginalMaturitydate Nomaturity
14 Issuercallsubjecttopriorsupervisoryapproval No
15 Optionalcalldate,contingentcalldatesandredemptionamount NotApplicable
16 Subsequentcalldates,ifapplicable NotApplicable
Coupons / Dividends
17 FixedorFloatingdividend/coupon NotApplicable
18 Couponrateandanyrelatedindex NotApplicable
19 Existenceofadividendstopper NotApplicable
20 Fullydiscretionary,partiallydiscretionaryormandatory NotApplicable
21 Existenceofstep-uporotherincentivetoredeem NotApplicable
22 Non-cumulativeorCumulative NotApplicable
23 ConvertibleorNon-convertible NotApplicable
24 Ifconvertible,conversiontrigger(s) NotApplicable
25 Ifconvertible,fullyorpartially NotApplicable
26 Ifconvertible,conversionrate NotApplicable
27 Ifconvertible,mandatoryoroptionalconversion NotApplicable
28 Ifconvertible,specifyinstrumenttypeconvertibleinto NotApplicable
29 Ifconvertible,specifyissuerofinstrumentitconvertsinto NotApplicable
30 Write-downfeature No
31 Ifwrite-down,write-downtrigger(s) NotApplicable
32 Ifwrite-down,fullorpartial NotApplicable
33 Ifwrite-down,permanentortemporary NotApplicable
34 Iftemporarywrite-down,descriptionofwrite-upmechanism NotApplicable
35 Positioninsubordinationhierarchyinliquidation(specifyinstrumenttypeimmediatelyseniortoinstrument) Allothercreditorsanddepositorsofthebank
36 Non-complianttransitionedfeatures No
37 Ifyes,specifynon-compliantfeatures NotApplicable
DF -14: Full terms and Conditions of regulatory Capital Instruments:Theregulatorycapitalconsistsofcapitalfundsreceivedfromheadofficewithoutanytermsandconditions.
DF-15: Disclosure requirements for remuneration:TheBank’scompensationpoliciesareinconformitywiththebasicprinciplesandstandardsofFinancialStabilityBoard.InaccordancewiththerequirementsoftheRBICircularNo.DBODNo.BC.72/29.67.001/2011-12dated13January2012,theBankhassubmittedadeclarationtoRBIconfirmingtheaforesaidmatter.Accordinglynodisclosureisrequiredtobemadeinthisregard.
DF-16: Equities – Disclosure for Banking Book Positions:
Qualitative DisclosuresThebankhasnoinvestmentinEquities
Quantitative DisclosuresTheBookvalueandMarketvalueofquotedandunquotedsecuritiesareasfollows:
(Rs.in‘000s)
Securities Book Value market ValueInvestmentinEquities:Quoted - -InvestmentinEquities:Unquoted - -
DF 17 - Summary comparison of accounting assets vs. leverage ratio exposure measure:Item (rs. ‘000)
1 Totalconsolidatedassetsasperpublishedfinancialstatements 10,570,255
2 Adjustmentforinvestmentsinbanking,financial,insuranceorcommercialentitiesthatareconsolidatedforaccountingpurposesbutoutsidethescopeofregulatoryconsolidation -
3 Adjustmentforfiduciaryassetsrecognisedonthebalancesheetpursuanttotheoperativeaccountingframeworkbutexcludedfromtheleverageratioexposuremeasure -
4 Adjustmentsforderivativefinancialinstruments -
5 Adjustmentforsecuritiesfinancingtransactions(i.e.reposandsimilarsecuredlending) -
6 Adjustmentforoff-balancesheetitems(i.e.conversiontocreditequivalentamountsofoff-balancesheetexposures) 1,825,581
22
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
7 Otheradjustments (182,321)
8 leverage ratio exposure 12,213,515
DF 18. leverage ratio common disclosure template:
Item (rs. in millionson-balance sheet exposures
1 On-balancesheetitems(excludingderivativesandSFTs,butincludingcollateral) 10,568,6972 (AssetamountsdeductedindeterminingBaselIIITier1capital) (208,553)3 total on-balance sheet exposures
(excludingderivativesandSFTs)(sumoflines1and2) 10,360,144
Derivative exposures4 Replacementcostassociatedwithallderivativestransactions(i.e.netofeligiblecashvariationmargin) -5 Add-onamountsforPFEassociatedwithallderivativestransactions -6 Gross-upforderivativescollateralprovidedwheredeductedfromthebalancesheetassetspursuanttotheoperativeaccounting
framework -
7 (Deductionsofreceivablesassetsforcashvariationmarginprovidedinderivativestransactions) -8 (ExemptedCCPlegofclient-clearedtradeexposures) -9 Adjustedeffectivenotionalamountofwrittencreditderivatives -10 (Adjustedeffectivenotionaloffsetsandadd-ondeductionsforwrittencreditderivatives) -11 total derivative exposures (sum of lines 4 to 10) -
Securities financing transaction exposures12 GrossSFTassets(withnorecognitionofnetting),afteradjustingforsaleaccountingtransactions 1,187,79013 (NettedamountsofcashpayablesandcashreceivablesofgrossSFTassets) (1,160,000)14 CCRexposureforSFTassets -15 Agenttransactionexposures -16 Total securities financing transaction exposures (sum of lines 12 to 15) 27,790
other off-balance sheet exposures17 Off-balancesheetexposureatgrossnotionalamount 1,829,45418 (Adjustmentsforconversiontocreditequivalentamounts) (3,873)19 off-balance sheet items (sum of lines 17 and 18) 1,825,581
Capital and total exposures20 tier 1 capital 6,160,49821 total exposures (sum of lines 3, 11, 16 and 19) 12,213,515
leverage ratio22 Basel III leverage ratio 50.44