INDEPENDENT AUDITOR’S REPORT - Emirates NBD · 2019. 7. 31. · For Khimji Kunverji & Co LLP...
Transcript of INDEPENDENT AUDITOR’S REPORT - Emirates NBD · 2019. 7. 31. · For Khimji Kunverji & Co LLP...
1
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
INDEPENDENT AUDITOR’S REPORT ToThe Chief Executive Officer Emirates NBD Bank (PJSC), India Branch
Report on the Audit of the Financial Statements
Opinion
1. WehaveauditedtheaccompanyingfinancialstatementsofEmiratesNBDBank(PJSC),IndiaBranch(‘theBank’),whichcomprisetheBalanceSheetasatMarch31,2019andtheProfitandLossAccountandtheCashFlowStatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidfinancialstatementstogetherwithnotesthereongivefullinformationrequiredbytheBankingRegulationAct,1949aswellastheCompaniesAct,2013(‘theAct’),inthemannersorequiredforbankingcompaniesandgivetrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:
a. InthecaseoftheBalanceSheet,ofthestateofaffairsoftheBankasatMarch31,2019;
b. IncaseoftheProfitandLossAccount,oftheprofitoftheBankfortheyearendedonthatdate;
c. InthecaseoftheCashFlowStatement,ofthecashflowsoftheBankfortheyearendedonthatdate.
Basis for Opinion
2. WeconductedourauditinaccordancewiththeStandardsonAuditing(‘SAs’)specifiedundersection143(10)oftheAct.OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheBankinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’)togetherwiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsundertheprovisionsoftheActandtheRulesthereunder;andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
Information Other than the Financial Statements and Auditor’s Report Thereon
3. TheBank’smanagementisresponsiblefortheotherinformation.TheotherinformationcomprisestheinformationincludedintheBank’sannualreportandBaselIII-Pillar3disclosures,butdoesnotincludethefinancialstatementsandourauditors’reportthereon.Theotherinformationisexpectedtobemadeavailabletousafterthedateofthisauditor’sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.
Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationwhenitbecomesavailableand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.
WhenwereadtheotherInformationandifweconcludethatthereisamaterialmisstatementtherein,wearerequiredtocommunicatethemattertothosechargeswithgovernanceasrequiredunderSA720‘TheAuditor’sresponsibilitiesRelatingtootherInformation’
Responsibility of Management for Financial Statements
4. TheBank’smanagementisresponsibleforthemattersstatedinsection134(5)oftheActwithrespecttothepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheBankinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderprescribedSection133oftheAct,provisionofSection29oftheBankingRegulationAct,1949andthecircularsandguidelinesissuedbyReserveBankofIndia(‘RBI’)fromtimetotime.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheBankandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;design,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingtheBank’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheBankortoceaseoperations,orhasnorealisticalternativebuttodoso.
TheBank’smanagementisalsoresponsibleforoverseeingtheBank’sfinancialreportingprocess.
Auditor’s Responsibilities for the Audit of the Financial Statements
5. Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatements,asawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.OurauditprocessinaccordancewiththeSAsisnarratedindetailsinAnnexure1tothisreport.
Report on Other Legal and Regulatory Requirements
6. TheBalanceSheetandProfitandLossAccountandtheCashFlowStatementhavebeendrawnupinaccordancewiththeprovisionsofSection29oftheBankingRegulationAct,1949readwithSection133oftheActreadwithRule7oftheCompanies(Accounts)Rules,2014.
7. AsrequiredbySection30(3)oftheBankingRegulationAct,1949,wereportthat:
a. Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofourauditandhavefoundthemtobesatisfactory;.
b. thetransactionsoftheBank,whichhavecometoournoticehavebeenwithinthepowersoftheBank;and
c. Sincethebankishavingonlyonebranch,thequestiononreportingthenumberofbranchesauditedbyusandthemannerofauditthereondoesnotarise.
8. AsrequiredbySection143(3)oftheAct,wereportthat:
a. wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;
b. inouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheBanksofarasitappearsfromourexaminationofthosebooks;exceptthatthebackupofthebooksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasnotbeenmaintainedonserversphysicallylocatedinIndia,Refernote1ofSchedule17ofthefinancialstatementswhereinithasbeenstatedthatthebackupofthebooksofaccountsandotherpapermaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideIndia;
c. theBalanceSheet,theProfitandLossAccountandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount;
2
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
d. inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014insofarastheyapplytotheBank;
e. reportingrequirementpursuanttoprovisionofSection164(2)oftheActisnotapplicableconsideringtheBankisabranchofEmiratesNBDbank(PJSC),DubaiwhichisincorporatedinUnitedArabEmirateswithlimitedliability;
f. WithrespecttotheadequacyoftheinternalfinancialcontrolswithreferencetofinancialstatementsoftheBankandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportinAnnexure2tothisreport;
g. Reportingrequirementpursuanttosection197oftheActrelatedtomanagerialremunerationisnotapplicableconsideringtheBankisabranchofEmiratesNBDbank(PJSC),DubaiwhichisincorporatedinUnitedArabEmirateswithlimitedliability;
h. WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wereportasunder:
i theBankhasdisclosedtheimpact,ifany,ofpendinglitigationsonitsfinancialpositionsinitsfinancialstatementsasatMarch31,2019;ReferSchedule12andNote1(XX)ofSchedule18tothefinancialstatements;
ii theBankhasmadeadequateprovision,asrequiredundertheapplicablelaworaccountingstandards,formaterialforeseeablelosses,ifany,onlong-termcontractsincludingderivativecontracts-ReferNote2(XVIII)ofSchedule18tothefinancialstatements;
iii theBankiscurrentlynotliabletotransferanyamounttotheInvestorEducationandProtectionFund;
iv thedisclosurerequirementsonholdingsaswellasdealinginspecifiedbanknotesduringtheperiodfromNovember08,2016toDecember30,2016asenvisagedinNotificationG.S.R308(E)datedMarch30,2017isnotapplicabletotheBank.
ForKhimji Kunverji & Co LLP(formerly Khimji Kunverji & Co- FRN 105146W)CharteredAccountants
Vinit K Jain Partner(F-145911)
Mumbai June24,2019
3
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
ANNEXURE 1 TO THE INDEPENDENT AUDITORS’ REPORT (referredtoinpara5titled“Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements”)
AspartofourauditinaccordancewithSAsweexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,todesignandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
• Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheBankhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.
• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.
• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheBank’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheBanktoceasetocontinueasagoingconcern.
• Evaluate theoverall presentation, structureandcontentof thefinancial statements, including thedisclosures,andwhether thefinancial statements represent theunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
• Communicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficiencies in internalcontrol thatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
ANNEXURE 2 TO THE INDEPENDENT AUDITORS’ REPORT [referredtoinparagraph8(f)under‘ReportonOtherLegalandRegulatoryRequirements’intheIndependentAuditor’sReport]
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofEmirates NBD bank (PJSC), India Branch (“theBank”)asatMarch31,2019inconjunctionwithourauditofthefinancialstatementsoftheBankfortheyearendedonthatdate.
Management’s Responsibility for Internal Financial Controls
TheBank’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(“ICAI”).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetotheBank’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheAct.
Auditors’ Responsibility
OurresponsibilityistoexpressanopinionontheBank’sinternalfinancialcontrolswithreferencetofinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheAct,totheextentapplicabletoanauditofinternalfinancialcontrols,bothissuedbytheICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.
Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.
WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheBank’sinternalfinancialcontrolssystemoverfinancialreporting.
Meaning of Internal Financial Controls Over Financial Reporting
ABank’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.ABank’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat:
(a) pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheBank;
(b) providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheBankarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsoftheBank;and
(c) providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionoftheBank’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Becauseof the inherent limitationsof internalfinancialcontrolsoverfinancial reporting, includingthepossibilityofcollusionor impropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
Opinion
Inouropinion,theBankhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemwithreferencetofinancialstatementsandsuchinternalfinancialcontrolswithreferencetofinancialstatementswereoperatingeffectivelyasatMarch31,2019,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheICAIexceptthatthebackupofthebooksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasnotbeenmaintainedonserversphysicallylocatedinIndia,Refernote1ofSchedule17ofthefinancialstatementswhereinithasbeenstatedthatthebackupofthebooksofaccountsandotherpapermaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideIndia.
ForKhimji Kunverji & Co LLP(formerly Khimji Kunverji & Co- FRN 105146W)CharteredAccountants
Vinit K Jain Partner(F-145911)
Mumbai June24,2019
4
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
BALANCE SHEET AS ON 31 MARCH 2019
Particulars Schedule As at 31 March 2019 (INR
‘000s)
As at 31 March 2018 (INR
‘000s)
CAPITAL & LIABILITIES
Capital 1 6,861,976 6,540,758
Reservesandsurplus 2 (105,490) (171,707)
Deposits 3 5,047,982 913,461
Borrowings 4 5,314,530 2,967,303
OtherLiabilitiesandProvisions 5 284,529 320,440
Total 17,403,527 10,570,255
ASSETS
CashandBalanceswithReserveBankofIndia
6 244,100 174,013
BalanceswithBanksandMoneyatCallandshortnotice
7 955,429 1,006,573
Investments 8 6,585,623 2,966,988
Advances 9 8,892,205 5,782,725
Fixedassets 10 359,227 329,597
Otherassets 11 366,943 310,359
DebitBalanceinProfit&LossAccount
Total 17,403,527 10,570,255
ContingentLiabilities 12 8,712,508 7,880,755
BillsforCollection 703,058 -
SignificantAccountingPoliciesandNotestoAccounts
17&18
SchedulesreferredtohereinformanintegralpartoftheFinancialStatements
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2019Particulars Schedule For the Year
ended 31 March 2019
(INR ‘000s)
For the Year ended 31 March
2018 (INR ‘000s)
I. INCOMEInterestEarned 13 933,423 322,141
OtherIncome 14 78,128 5,572
Total 1,011,551 327,713 II. EXPENDITUREInterestExpended 15 358,174 15,033
OperatingExpenses 16 584,155 451,450
ProvisionsandContingencies 18.1.XX 3,005 32,937
Total 945,334 499,420 III. PROFIT / (LOSS)Netprofit/(Loss)fortheyear 66,217 (171,707)
Profit/(Loss)broughtforward (171,707) -
Total (105,490) (171,707)IV. APPROPRIATIONSTransfertoStatutoryReserves 16,555 -
TransfertoCapitalReserves - -
TransfertoInvestmentReserveAccount
5,445 -
TransfertoInvestmentFluctuationReserve
25,000
RemittancetoH.O.duringtheyear - -
TransfertosurplusretainedforCapitalAdequacy(CRAR)
- -
Balance carried over to Balance Sheet
(152,490) (171,707)
Total (105,490) (171,707)
SchedulesreferredtohereinformanintegralpartoftheFinancialStatements
AsperourattachedReportofevendate.
ForKhimji Kunverji & Co. LLP(formerly Khimji Kunverji & Co FRN : 105146W)CharteredAccountants
ForEmirates NBD Bank (PJSC), IndiaBranch
Vinit K JainPartner(F-145911)
Sharad AgarwalChiefExecutiveOfficer,India
Place:MumbaiDate:24June2019
Place:MumbaiDate:24June2019
5
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2019
ParticularsFor the year ended
31 March 2019 INR (000’s)
For the year ended 31 March 2018
INR (000’s)Cash Flow from Operating Activities
NetProfit/(Loss)asperProfit&LossStatement 66,217 (171,707)
Add:IncomeTaxProvision -
Add:DeferredTax(Asset)/Liability (6,197) 2,546
NetProfitbeforetaxationandextraordinaryitems 60,020 (169,161)
Adjustments for:
DepreciationonFixedAssets 114,832 70,609
(Profit)/LossonsaleofFixedAssets - 4,063
Additions/(Write-back)ofprovisionforStandardAssets 15,345 23,131
ProvisionforCountryRisk 1,117 -
ProvisionforUnhedgedForeignCurrencyExposure - -
OtherLosses/write-offs/HeadOfficeProjectOpex 15,015
ProvisiononInvestments (7,260) 7,260
Operating profit before working capital changes 199,069 (64,098)
(Increase)/DecreaseinInvestments (3,611,375) (2,966,988)
(Increase)/DecreaseinAdvances (3,109,480) (5,782,725)
(Increase)/DecreaseinOtherAssets(Note1) (49,632) (310,359)
Increase/(Decrease)inDeposits 4,134,521 913,461
Increase/(Decrease)inOtherLiabilities&Provisions 137,687 287,502
Incometaxes(paid)/received (3,300) -
Net Cash Flow generated from / (used in) Operating Activities A (2,302,509) (7,923,206)
Cash flows from investing activities
Purchaseoffixedassets(Note1) (27,767) (396,055)
Proceedsfromsaleoffixedassets - 495
(Increase)/DecreaseinCapitalworkinprogress 1,991 (8,710)
Net Cash Flow generated from / (used in) Investing Activities B (25,776) (404,269)
Cash flows from financing activities
CapitalIntroduced(Note1) - 6,540,758
Increase/(Decrease)inBorrowingsotherthanSub-ordinateddebt 2,347,228 2,967,303
Net Cash Flow generated from / (used in) Financing Activities C 2,347,228 9,508,061
Net increase/ (decrease) in cash and cash equivalents (A + B +C) 18,943 1,180,586
Cash&Cashequivalentsatthebeginningoftheyear 1,180,586 -
CashandCashequivalentsattheendoftheyear(Note1) 1,199,529 1,180,586
Notes:CashandCashEquivalentsrepresent
CashandBalanceswithReserveBankofIndia(AsperSchedule6) 244,100 174,013
BalanceswithBanks&MoneyatCallandShortNotice(AsperSchedule7) 955,429 1,006,573
1,199,529 1,180,586
Note 1
Details of Balances transferred from India Representative Office INRin‘000s-31-03-2018
Capital 103,658
FixedAssets(netofaccumulateddepreciation) 10,032
OtherAssets 76,265
Cash&BankBalances 17,361
AsperourattachedReportofevendate.
ForKhimji Kunverji & Co. LLP(formerly Khimji Kunverji & Co- FRN : 105146W)CharteredAccountants
ForEmirates NBD Bank (PJSC), IndiaBranch
Vinit K JainPartner(F-145911)
Sharad AgarwalChiefExecutiveOfficer,India
Place:MumbaiDate:24Jun2019
Place:MumbaiDate:24Jun2019
6
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS AS AT 31 MARCH 2019
As at 31 March 2019 (INR ‘000s)
As at 31 March 2018 (INR ‘000s)
SCHEDULE 1 - CAPITAL(i) AmountbroughtinbyBankbywayofCapital AsperLastBalanceSheet 6,540,758 - Add:Capitalinfusionduringtheyear 321,218 6,540,758 ReferSchedule18.1.I Total 6,861,976 6,540,758(ii) AmountofdepositkeptwiththeReserveBank
ofIndiaundersection11(2)(b)oftheBankingRegulationAct,1949
3,000 2,000
SCHEDULE 2 - RESERVES & SURPLUS I Statutory Reserve AsperLastBalanceSheet - - Add:TransferfromProfit&LossAccount 16,555 - Total 16,555 -II Investment Reserve Account AsperLastBalanceSheet - - Add:TransferfromProfit&LossAccount 5,445 - Total 5,445 -III Surplus Retained For Capital Adequacy
(CRAR) AsperLastBalanceSheet - - Add:TransferfromProfit&LossAccount - - Total - -IV Investment Fluctuation Reserve AsperLastBalanceSheet - - Add:TransferfromProfit&LossAccount 25,000 - Total 25,000 -V Balance In Profit And Loss Account AsperLastBalanceSheet (171,707) - Add:TransferfromProfit&LossAccount 19,217 (171,707) Total (152,490) (171,707)Grand Total (105,490) (171,707)
SCHEDULE 3 - DEPOSITSI Demand Deposits (i) FromBanks 1,532 556 (ii) FromOthers 880,199 558,563
881,731 559,119 II Saving Bank Deposits 27,135 42,299 III Term Deposits (i) FromBanks 1,500,000 - (ii) FromOthers 2,639,116 312,043
4,139,116 312,043 Total (I + II + III) 5,047,982 913,461 (i) DepositsofBranchesinIndia 5,047,982 913,461 (ii) DepositsofBranchesoutsideIndia - - Total 5,047,982 913,461
SCHEDULE 4 - BORROWINGS I Borrowings in India (i) ReserveBankofIndia 630,000 1,160,000 (ii) OtherBanks - - (ii) Otherinstitutionandagencies 2,929,688 -
3,559,688 1,160,000II Borrowings outside India (i) SubordinatedDebtfromHeadOffice - - (ii) OtherBanks* 1,754,842 1,807,303 *includesBAFborrowingfromHeadOffice 1,754,842 1,807,303 Total ( I + II) 5,314,530 2,967,303 SecuredborrowingsincludedinI&IIabove 3,5,59,688 1,160,000
As at 31 March 2019 (INR ‘000s)
As at 31 March 2018 (INR ‘000s)
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
I BillsPayable - -
II Inter-OfficeAdjustment(Net) - -
III InterestAccrued 27,399 6,249
IV ProvisionforStandardAssets - -
IV DeferredTaxLiability(Net) - 2,546
V Others(includingprovisions) 257,130 311,645
Total 284,529 320,440 SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
I Cash in hand 1,552 1,893
(includingforeigncurrencynotes)
II Balances with Reserve Bank of India (i) InCurrentAccount 152,548 172,120
(i) InOtherAccount 90,000 -
Total (I + II) 244,100 174,013 SCHEDULE 7 - BALANCES WITH BANKS & MONEY AT CALL AND SHORT NOTICE
I In India (i) BalanceswithBanks
(a) InCurrentAccount 2,514 16,167
(b) InOtherDepositAccount - 980,000
(ii) MoneyatCallandShortNotice
(a) WithBanks - -
(b) WithOtherInstitutions - -
2,514 996,167
II Outside India (i) InCurrentAccount 53,900 10,406
(ii) InOtherDepositAccounts - -
(iii) MoneyatCallandShortNotice 899,015 -
952,915 10,406
Total (I + II) 955,429 1,006,573 SCHEDULE 8 - INVESTMENTS
I Investments in India in(i) Governmentsecurities(*) 5,043,403 2,386,302
(ii) Otherapprovedsecurities - -
(iii) Shares - -
(iv) Debenturesandbonds - -
(v) Subsidiaries/JointVentures - -
(vi) Others 1,542,220 580,686
6,585,623 2,966,988
II Investments outside India - - Total ( I + II) 6,585,623 2,966,988 III Investments in India GrossValue 6,585,623 2,974,248
Less:-ProvisionfordepreciationonInvestments - (7,260)
NetValue 6,585,623 2,966,988
* includesSecurities keptwithCCILasmargin for securities segmentof bookvalueofINR102,684(P.Y.INR84,124)(in‘000s);forCBLOsegmentbookvalueofINRNIL(P.Y.NIL);forForexsegmentbookvalueofINR26,055(P.Y.INR19,096)(in‘000s)&withRBIundersection11(2)(b)(ii)ofBankingRegulationAct,1949ofFaceValueofINR3,000(in‘000s)(P.Y.NIL)
As at 31 March 2019 (INR ‘000s)
As at 31 March 2018 (INR ‘000s)
SCHEDULE 9 - ADVANCESA (i) BillsPurchasedanddiscounted 4,659,763 5,713,725 (ii) Cashcredits,Overdrafts&Loans 3,396,892 - (iii) TermLoans 835,550 69,000 Total 8,892,205 5,782,725
7
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
As at 31 March 2019 (INR ‘000s)
As at 31 March 2018 (INR ‘000s)
B (i) Securedbytangibleassets* 1,008,050 69,000 (ii) CoveredbyBank/GovernmentGuarantees - - (iii) Unsecured 7,884,155 5,713,725 *includesadvancesagainstbookdebts Total 8,892,205 5,782,725 C I Advances in India (i) PrioritySector 2,471,920 1,881,102 (ii) PublicSector - - (iii) Banks - - (iv) Others 6,420,285 3,901,623 Sub-total 8,892,205 5,782,725 II AdvancesoutsideIndia - - Sub-total - - Total ( I + II) 8,892,205 5,782,725 SCHEDULE 10 - FIXED ASSETS I Premises (includes Leasehold improvements) Atbookvalue Beginningoftheyear* 72,618 5,347 Additionsduringtheyear - 72,618 Deductionsduringtheyear - (5,347)
72,618 72,618 Depreciationtodate Beginningoftheyear* 10,893 1,534 Additionsduringtheyear 14,524 11,014 Deductionsduringtheyear - (1,655)
25,417 10,893 Total (I) 47,201 61,725 II Other Fixed Assets (includingFurniture&Fixtures) Atbookvalue Beginningoftheyear* 319,453 6,978 Additionsduringtheyear 152,271 313,403 Deductionsduringtheyear - (928)
471,724 319,453 Depreciationtodate Beginningoftheyear* 60,292 759 Additionsduringtheyear 100,309 59,595 Deductionsduringtheyear - (62)
160,601 60,292 Total (II) 311,123 259,162III Capital work in progress 903 8,710 Total (III) 903 8,710Total (I + II + III) 359,227 329,597 *representsassetstransferredfromIndiaRepresentativeofficeforFY2017-18.Cur-rentYearINRNIL.SCHEDULE 11 - OTHER ASSETS I Inter-OfficeAdjustment(Net) - -II Interestaccrued 140,232 118,147III Taxpaidinadvance/taxdeductedatsource(net
ofprovisions)3,300 -
IV DeferredTaxAssets(Net) 3,651 -V Stationeryandstamps - -VI Others 219,760 192,212Total 366,943 310,359 SCHEDULE 12 - CONTINGENT LIABILITIES I Claimsagainstthebanknotacknowledgedas
debts- -
II Liabilityforpartlypaidinvestments - -III Liabilitiesonaccountofoutstandingforward
exchangecontracts3,081,616 6,051,301
As at 31 March 2019 (INR ‘000s)
As at 31 March 2018 (INR ‘000s)
IV Liabilitiesonaccountofoutstandingderivativecontracts
- -
V Guaranteesgivenonbehalfofconstituents:
a) InIndia 899,544 1,740,220
b) OutsideIndia 2,682,628 655
VI Acceptances,endorsementsandotherobligations 2,048,720 88,579
VII OtheritemsforwhichtheBankiscontingentlyliable
- -
Total 8,712,508 7,880,755 SCHEDULES FORMING PART OF FINANCIAL STATEMENTS AS AT 31 MARCH
2019SCHEDULE 13 - INTEREST EARNED
I Interest/DiscountonAdvances/Bills 550,338 77,829
II IncomeonInvestment 372,793 83,871
III InterestonbalancewithReserveBankofIndiaandOtherinter-bankfunds
10,292 160,441
IV Others - -
Total 933,423 322,141 SCHEDULE 14 - OTHER INCOME
I Commission,ExchangeandBrokerage 39,641 3,700
II Profit/(Loss)onsaleofInvestments(net) 1,720 -
III Profit/(Loss)onsaleofassets(net) - (4,063)
IV Profit/(Loss)onForeignExchangeTransaction(Net)andderivatives
32,583 4,682
V Incomeearnedbywayofdividends,etc.fromsubsidiaries,companies,jointventureabroad/inIndia
- -
VI MiscellaneousIncome* 4,184 1,253
(*includesprocessingfees)
Total 78,128 5,572 SCHEDULE 15 - INTEREST EXPENDED I InterestonDeposits 69,581 6,831
II InterestonReserveBankofIndia/Inter-Bankbor-rowings
288,593 8,202
III Others - -
Total 358,174 15,033 SCHEDULE 16 - OPERATING EXPENSES I Paymenttoandprovisionsforemployees 238,195 174,397
II Rent,TaxesandLighting 70,404 66,834
III Printingandstationery 692 1,074
IV AdvertisementandPublicity 2,467 8,974
V DepreciationonBank’sProperty 114,832 70,609
VI Directors’Fees,AllowancesandExpenses - -
VII Auditors’FeesandExpenses 1,668 800
VIII LawCharges 1,558 3,370
IX Postage,Telegrams,Telephoneetc. 4,917 4,264
X RepairandMaintenance 10,618 7,227
XI Insurance 3,738 2,751
XII HeadOfficeCharges 70,768 30,096
XIII OtherExpenditure 64,298 81,054
Total 584,155 451,450
SCHEDULE 17: SIGNIFICANT ACCOUNTING POLICIES
1. BACKGROUND
Theaccompanyingfinancialstatementsfortheyearended31March2019comprisetheaccountsoftheIndianBranchofEmiratesNBDBankPJSC(referredtoas‘theBank’)whichisabankingcompanyincorporatedinUAEwithlimitedliability.On17October2016,theBank’sparentcompany,EmiratesNBDBank(PJSC),receivedtheapprovaloftheReserveBankofIndia(‘RBI’)foropeningthemaidenBankBranchwithinoneyeartherefrom.Theassets&liabilitiesofIndiaRepresentativeOfficeweretransferredtotheBankwitheffectfrom1April2017.TheBankhasmaintainedthebooksofaccountsandotherbooksandpapersintheelectronicmode,periodicbackupofwhichhavebeenmaintainedonserversphysically locatedoutsideofIndia.RBIapprovalisinplaceforhostingtheserversfromUAE.
8
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
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.
3. USE OF ESTIMATES The preparation of the financial statements requires themanagement tomake
estimatesandassumptionsthataffect thereportedamountsofassets, liabilities,(includingcontingentliabilities)asatthedateofthefinancialstatements,revenueandexpenseduringtheperiod.Althoughtheseestimatesarebaseduponmanagementbestknowledgeofcurrenteventsandactions,actualresultscoulddifferfromthoseestimatesandthesedifferencesarerecognisedprospectivelyincurrentandfutureperiods.
4. SIGNIFICANT ACCOUNTING POLICIES4.1. Investments Classification InaccordancewithRBIguidelines,allinvestmentsareclassifiedintothefollowing
categories,basedontheintentatthetimeofacquisition • HeldtoMaturity(HTM), • AvailableforSale(AFS)and • HeldforTrading(HFT) Under each of these categories the investment portfolio is further classified in
accordancewithRBIdisclosureguidelinesintosub-categoriesof: • Governmentsecurities, • Otherapprovedsecurities, • Shares, • DebenturesandBonds, • Subsidiaries/Jointventuresand • Others. Shifting,ifanybetweenthecategoriesisdoneinaccordancewithRBIguidelines. TheBankfollowssettlementdatemethodforaccountingofitsinvestments. Acquisition Cost Indeterminingthecostofinvestment, • Brokerage,commission,etc.paidatthetimeofpurchase/saleischargedto
theProfit&LossAccount. • Brokenperiodinterestpaidatthetimeofacquisitionofthesecurityischarged
totheProfit&LossAccount. • CostofinvestmentsisbasedonFirstinFirstoutmethod. Valuation • InvestmentsheldundertheAFSandHFTcategoriesaremarkedtomarket
periodically at the price as declared byPrimaryDealersAssociation ofIndiajointlywithFixedIncomeMoneyMarketandDerivativesAssociation(“FIMMDA”).Securitiesarevaluedscrip-wiseanddepreciation/appreciationisaggregatedforeachsub-category.Netdepreciation,ifany,isprovidedforandnetappreciation,ifany,isignored.Netdepreciationrequiredtobeprovidedforinanyonesub-categoryisnotreducedonaccountofnetappreciationinanyothersub-category.Consequenttorevaluation,thebookvalueoftheindividualsecurityisnotchanged.
• Treasury Bills, Certificate of Deposits andCommercial Papers beingdiscountedinstrumentsarevaluedatcarryingcost.
• Investment held under theHTMcategory are carriedat their acquisitioncostandanypremiumoverthefacevalue,paidonacquisition,isamortizedonastraightlinebasisovertheremainingperiodtomaturity.Whereintheopinionofthemanagement,adiminutionotherthantemporaryinthevalueofinvestmentsheldunderHTMhastakenplace,suitableprovisionsaremade.
• TheBankundertakesshortsaletransactionsinCentralGovernmentdatedsecuritiesinaccordancewithRBIguidelines.Theshortpositionismarkedtomarketandloss,ifany,ischargedtotheProfitandLossaccountwhilegain, ifany, is ignored.Profit /Lossonsettlementof theshortposition isrecognizedintheProfitandLossaccount.
• Non-performing investments are identified and depreciation / provisionaremade thereonbasedon theRBI guidelines.Basedonmanagementassessmentofimpairment,theBankmayadditionallycreateprovisionoverandabove theRBIguidelines.Thedepreciation /provisiononsuchnon-performinginvestmentsarenotsetoffagainsttheappreciationinrespectofotherperformingsecurities.Interestonnon-performinginvestmentsisnotrecognizedintheProfitandLossaccountuntilreceived.
Disposal of Investments Profit/Lossonsaleofinvestmentsundertheaforesaidthreecategoriesaretakento
theProfit&Lossaccount.TheprofitfromsaleofinvestmentsunderHTMcategoryifany,netoftaxesandtransferstostatutoryreserveissubsequentlyappropriatedto“CapitalReserve”.
Repurchase (Repo) and Reverse Repurchase Transactions RepoandReverseRepotransactions,includingLiquidityAdjustmentFacility(LAF)
termrepowithRBIandCollateralisedLendingandBorrowingObligations(CBLO)enteredwithClearingCorporation of India Limited (CCIL) are considered ascollateralisedlendingandborrowingtransactions.
Coststhereonareaccountedforas interestexpenseandRevenuesthereonareaccountedasinterestincome.
4.2. Advances Advancesareclassifiedasperformingandnon-performingbasedonextantprudential
normsforincomerecognition,assetclassificationandprovisioningissuedbyRBI. SpecificloanlossprovisionsinrespectofNon-PerformingAdvances(NPAs)ismade
onthebasisoftheprovisioningrequirementsundertheprudentialnormsaslaiddownbytheRBI,andisdeductedfromadvances.Furtheranyadditionalprovisionsarebasedonmanagement’sassessmentofthedegreeofimpairmentofadvances.
TheBankmaintainsgeneralprovisionforstandardassetsincludingcreditexposurescomputedusingtheCurrentExposureMethodoninterestrateandforeignexchangederivativecontractsasstipulatedbyRBI.TheprovisionforstandardassetsisincludedinSchedule5underOtherLiabilities.
Inadditiontotheprovisionsrequiredaccordingtotheassetclassificationstatus,provisioningisdoneforindividualcountryexposures(otherthanforhomecountryexposure). Countries are classified into risk categories as per Export CreditGuaranteeCorporationguidelinesandprovisioningisdoneasperRBIguidelinesinrespectofcountries’wherethenetfundedexposureisonepercentormoreoftheBank’stotalassetsandincludedunder‘OtherLiabilitiesandProvisions’.
ForentitieswithUnhedgedForeignCurrencyExposure(UFCE),provisionismadeinaccordancewiththeguidelinesissuedbyRBI,whichrequirestoascertaintheamountofUFCE,estimate theextentof likely lossandestimate theriskinessofun-hedgedposition.ThisprovisionisclassifiedunderSchedule-5OtherLiabilitiesinthebalancesheet.
4.3. Property, Plant and Equipment (Fixed Assets) and Depreciation Fixed assets are stated at historical cost, net of accumulated depreciation and
accumulatedimpairmentlosses,ifany.Thecostcomprisespurchaseprice,borrowingcostsifcapitalizationcriteriaaremetanddirectlyattributablecostofbringingtheassettoitsworkingconditionfortheintendeduse.Anytradediscountsandrebatesaredeductedinarrivingatthepurchaseprice.
Gainsor lossesarising fromderecognizingoffixedassetsaremeasuredas thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognizedintheprofitandlossaccountwhentheassetisderecognized.
Depreciationonfixedassetsisprovidedasperthestraight-linemethodfromthemonthofadditionovertheestimatedusefullivesoftheassetasprescribedunderpart“C”ofscheduleIIoftheCompaniesAct,2013orasestimatedbythemanagement.
Theusefullifemarkedwith*belowaredifferentthanthosespecifiedunderScheduleIIoftheCompaniesAct,2013.ThemanagementbelievesthatusefullifeofFixedAssetcurrentlyconsideredforthepurposeofdepreciationfairlyreflectsitsestimateofusefullivesandresidualvalueoffixedassets.
Themanagementhasestimated,assessedandhasusedthefollowingusefullivestoprovidedepreciationonitsfixedassets:
AssetCategory Usefullivesestimatedbythemanagement(years)
Equipment 5yearsComputersHardware(excludingPC) 4yearsPCAndLaptop 3yearsComputerSoftware 4yearsComputerSoftware–StrategicAssets* 7yearsFurnitureandfixtures 5yearsBankVehicles 3yearsLeaseholdImprovements Overthelifeofthelease
Depreciationonassetssoldduringtheyearischargedtotheprofitandlossaccountuptothemonthimmediatelyprecedingthedateofsale.
Assetsother thanFurnitureandLeasehold Improvementscosting less than INR175,000(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.Animpairmentloss
9
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
isrecognizedwheneverthecarryingamountofanassetexceedsitsrecoverableamount.Therecoverableamountisgreaterofasset’snetsellingpriceandvalueinuse.Afterimpairment,depreciationisprovidedontherevisedcarryingamountoftheassetsoveritsremainingusefullife
4.5. Foreign Exchange Transactions MonetaryforeigncurrencyassetsandliabilitiesoutstandingattheBalanceSheet
datearetranslatedtoIndianRupeesatspotratesnotifiedbytheForeignExchangeDealersAssociationofIndia(‘FEDAI’).Allprofits/lossesresultingfromtheyearendrevaluationsarerecognisedintheProfit&LossAccount.
IncomeandexpensesaretranslatedtoIndianRupeesattheratesprevailingonthedateofthetransactions.
OutstandingforwardexchangecontractsandspotexchangecontractsarerevaluedatyearendexchangeratesnotifiedbyFEDAIforspecifiedmaturitiesandatinterpolatedratesforcontractofinterimmaturities.TheresultinggainsorlossesonrevaluationareincludedintheProfit&LossAccountinaccordancewithRBI/FEDAIguidelines.ThenetunrealisedprofitsorlossesarereflectedintheBalanceSheetunderOtherAssetsorOtherLiabilitiesrespectively.
Contingent liabilities on account of foreign exchange contracts, guarantees,acceptances,endorsementsandotherobligationsdenominatedinforeigncurrenciesaredisclosedinIndianRupeesatspotratesofexchangenotifiedbyFEDAIasatthe reporting date.
4.6. Employee benefits Gratuity TheBankhasadefinedbenefitplanforpost-employmentbenefitintheformofgratuity
forallitsemployees.IntermsoftherevisedAccountingStandard-15onRetirementBenefits, theBankhasmadeaprovisiontowardsGratuitybasedonanactuarialvaluationdonebyanindependentactuaryasattheyearend,usingtheProjectedUnitCreditMethod.TheGratuityplan isnot fundedbytheBank.ActuarialgainsandlossesarerecognizedinfullintheperiodinwhichtheyoccurinthestatementofProfitandLoss.
Provident Fund TheBankcontributestoarecognisedprovidentfund(EPFO).Thesecontributions
areaccountedforonanaccrualbasisandrecognisedinProfit&LossAccount. Leave Salary TheBankdoesnothaveapolicyofencashingunavailedleaves,exceptatthetime
of separationof aneligible employee.TheBankmakesaprovision for accruedcompensatedabsencesbasedonactuarialvaluationascarriedoutbyanindependentactuary,usingtheProjectedUnitCreditMethodat theyear-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. Derivatives TheBankcurrentlyentersintoderivativecontractssuchasforeignexchangecontracts
andforeignexchangeoptions. ThesederivativesarepartoftheTradingbookandrecognisedatfairvalue.The
resultantgain/lossisrecordedintheProfit&LossAccount,whilethecorrespondingunrealisedgain/lossarereflectedintheBalanceSheetundertheheadOtherAssets/OtherLiabilities.ThenotionalvaluesofthesecontractsarerecordedasContingentLiabilities.
TheBankmaintainsaprovisiononstandardderivativeexposureatratesprescribedbyRBI.
AlloutstandingderivativestransactionsarebookedasOffBalanceSheetItemsandMarkedtoMarketattheyearend.
4.10. Taxation Incometaxcomprisescurrenttaxprovisionandthenetchangeinthedeferredtax
assetorliabilityintheyear. Deferred tax assets and liabilities arising on account of timing differences are
recognisedintheProfit&LossAccountandthecumulativeeffectthereofisreflectedin theBalanceSheet.Deferredtaxassetsand liabilitiesaremeasuredusingtheenactedorsubstantiallyenactedtaxratesatthebalancesheetdate.TheeffectondeferredtaxassetsandliabilitiesofachangeintaxratesisrecognisedintheProfit&LossAccountintheperiodofchange.
Deferredtaxassetsarerecognizedonlytotheextentthereisreasonablecertaintythattheassetscanberealizedinfuture,exceptincaseofunabsorbeddepreciationorcarriedforwardlossundertaxationlawswhicharerecognizedonlytotheextentthatthereisvirtualcertaintyofrealizationofsuchassets.
Deferredtaxassetsarereviewedandreassessedateachbalancesheetdateandappropriatelyadjustedtoreflecttheamountthatisreasonably/virtuallycertaintoberealized.
4.11. Cash & Cash equivalents Cashandcashequivalentsincludecashinhand,balanceswithRBI,balanceswith
otherbanks/institutionsandmoneyatcallandshortnotice(includingtheeffectofchangesinexchangeratesoncashandCashequivalentsinforeigncurrency.
4.12. Accounting for Provisions, Contingent Liabilities and Contingent Assets InAccordancewithAS-29relatingtoProvisions,ContingentLiabilitiesandContingent
Assets,theBankrecognizesprovisionsonlywhenithasapresentobligationasaresultofapasteventthatrequiresthatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandwhenareliableestimatecanbemadeoftheamountoftheobligation.
Noprovisionisrecognizedandadisclosureofcontingentliabilityismadewhen:
• thereisapossibleobligationthatmayarisefrompasteventsandtheexistenceofwhichwillbeconfirmedonlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventswhicharenotwhollywithinthecontroloftheBank;or
• anypresentobligationthatarisesfrompasteventswhereitisnotprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationorareliableestimateoftheamountoftheobligationcannotbemade.Suchobligationsareassessedcontinuallyandonlythatpartoftheobligationforwhichanoutflowofresourcesembodyingeconomicbenefitsisprobableisprovidedforexceptintheextremelyrarecircumstanceswherenoreliableestimatecanbemade.
Provisionsare reviewedateachBalanceSheetdateandadjusted to reflect thecurrentbestestimate.
Contingentassetsarenotrecognisedinthefinancialstatements.
SCHEDULE 18: NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019
1. StatutoryDisclosuresintermsofRBIguidelinesareasunder:
I. CAPITAL:
Capitalincludesstart-up(assigned)capitalbroughtinasperReserveBankofIndiaMasterCircularRBI/2013-14/77DBOD.No.BAPD.BC.7/22.01.001/2014-15datedJuly1,2014andamounttakenoverfromerstwhileRepresentativeOfficeofEmiratesNBDBank(PJSC)inIndiaon1stApril2017INR103,658(in‘000s).
Duringtheyear2018-19,anamountofINR321,218(in‘000s)wastransferredtoCapitalwhichwastowardsprojectrelatedcapitalexpensespayabletoHeadOffice.
AspertheRBIguidelinesissuedonCapitaltoRiskWeightedAssetsRatio(CRAR),BanksarerequiredtocomputetheircapitalrequirementunderBaselIIIeffectiveJune30,2013.TheCRARasperBASELIIIis63.07%
(INRin‘000s)
Particulars 2018-19 2017-18
CommonEquityTier1Capitalratio(%) 62.39% 125.42%
CapitalAdequacyRatio(TierICapital) 62.39% 125.42%
CapitalAdequacyRatio(TierIICapital) 0.68% 0.47%
CRAR% 63.07% 125.89%
PercentageoftheshareholdingoftheGovernmentofIndiainnationalizedbanks Nil Nil
AmountofEquitycapitalraised(CapitalFundsfromH.O)*
321,218 6,540,758
AmountofadditionalTier1capitalraised;ofwhichPNCPS:PDI:
Nil Nil
AmountofTier2capitalraisedofwhichDebtcapitalinstrument:PreferenceSharecapitalinstrument:[PerpetualCumulativePreferenceShares(PCPS)/RedeemableNon-CumulativePreferenceShares(RNCPS)/RedeemableCumulativePreferenceShares(RCPS)]
Nil Nil
*Duringtheyear2018-19,anamountofINR321,218(‘000s)wastransferredtoCapitalwhichwastowardsprojectrelatedcapitalexpensespayabletoHeadOffice.Outoftheabove,anamountofINR303,060(‘000s)wasconsideredforTier–1inthecurrentyearincompliancewithRBImailboxclarification.
10
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
II. INVESTMENTS:a. Value of Investments: (INRin‘000s)
Particulars 2018-19 2017-18
GrossvalueofInvestments* 6,585,623 2,974,248Provisionfordepreciation* - (7,260)NetValueofInvestments* 6,585,623 2,966,988
*TheBankhasnotmadeanyinvestmentoutsideIndia
b. Movement of Provisions held towards depreciation on investments: (INRin‘000s)
Particulars 2018-19 2017-18OpeningBalance 7,260 -Add:Provisionsmadeduringtheyear - 7,260Less:Write-off/write-backofexcessprovisionsduringtheyear
7,260 -
ClosingBalance - 7,260III. REPO/REVERSE REPO TRANSACTIONS (Including Liquidity Adjustment
Facility):(INRin‘000s)
ParticularsMinimum
outstanding during the
Year
Maximum outstanding during the
Year
Daily Average
outstanding during the
Year
As on 31 March 2019
Securitiessoldunderrepo 497,400 3,432,160 1,972,293 3,432,160i. Government
Securities 497,400 3,432,160 1,972,293 3,432,160
ii. CorporateDebtSecurities
- - - -
Securitiespurchasedunderreverserepo - 734,570 33,084 79,850
i. GovernmentSecurities
- 734,570 33,084 79,850
ii. CorporateDebtSecurities
- - - -
(INRin‘000s)
ParticularsMinimum
outstanding during the
Year
Maximum outstanding during the
Year
Daily Average
outstanding during the
Year
As on 31 March 2018
Securitiessoldunderrepo - 1,159,600 269,219 1,159,600
i. GovernmentSecurities - 1,159,600 269,219 1,159,600
ii. CorporateDebtSecurities - - - -
Securitiespurchasedunderreverserepo - 2,036,350 555,014 -
i. GovernmentSecurities - 2,036,350 555,014 -
ii. CorporateDebtSecurities - - - -
Theaboveworkingsarebasedonthefacevalueofrepo/reverserepodeals
IV. NON SLR INVESTMENTS PORTFOLIO: a. IssuerCompositionofNonSLRInvestments:-
For31stMarch2019 (INRin‘000s)
Sr. No Issuer Amount
Extent of private
placement
Extent of below
investment grade
securities
Extent of unrated
securities
Extent of unlisted
securities
1 Publicsectorundertakings(PSUs)
- - - - -
2 FinancialInstitutions(FIs)
1,542,220 - - - -
3 Banks - - - - -
4 PrivateCorporate - - - - -
5 Subsidiaries/JointVentures
- - - - -
6 Others - - - - -
Sr. No Issuer Amount
Extent of private
placement
Extent of below
investment grade
securities
Extent of unrated
securities
Extent of unlisted
securities
7 Provisionheldtowardsdeprecation
- - - - -
Total 1,542,220 - - - -
For31stMarch2018 (INRin‘000s)
Sr. No Issuer Amount
Extent of private
placement
Extent of below
investment grade
securities
Extent of unrated
securities
Extent of unlisted
securities
1 Publicsectorundertakings(PSUs) - - - - -
2 FinancialInstitutions(FIs) 580,686 - - - -
3 Banks - - - - -
4 PrivateCorporate - - - - -
5 Subsidiaries/JointVentures
- - - - -
6 Others - - - - -
7 Provisionheldtowardsdeprecation
- - - - -
Total 580,686 - - - -
b. Non Performing Non SLR Investments: - TherearenoNonPerformingNon-SLRinvestmentsduringtheyearended31March
2019(31March2018–Nil).
V. SALE AND TRANSFERS TO/FROM HTM CATEGORY Therewerenosaleandtransferto/fromHTMcategoryduringtheyearended31
March2019(31March2018–Nil).
VI. DERIVATIVES a. Forward Rate Agreement/Interest rate Swaps outstanding: TheBankhadnotenteredintoForwardRateAgreement/InterestrateSwap
duringtheyearended31March2019(31March2018–Nil).
Natureandtermsofforwardrateagreements:
Outstandingasat31March2019:Nil(31March2018–Nil)
b. Exchange Traded Interest Rate Derivatives TheBankhadnotenteredintoExchangeTradedInterestRateDerivatives
duringtheyearended31March2019(31March2018–Nil).
c. Currency Futures Thebankhadnotdealtinexchangetradedcurrencyforwards(futures)during
theyearended31March2019(31March2018–Nil).
d. Disclosure on Risk Exposure in Derivatives: Qualitative Disclosures TheBankdeals in derivatives for balance sheetmanagement purposesand to
enablecustomerstohedgetheircurrencyexposures.TheBankdoesnotcarryoutanyproprietarytradingactivityinderivativesnorhasitenteredintotransactionsforhedgingpurposes.
DerivativesaretransactedbytheGlobalMarketsandTreasury(GM&T)frontofficeteamunderFXdocumentationorInternationalSwapsandDerivativesAssociation(ISDA)MasterAgreements entered intowith counter-parties. Documentation,confirmation and settlement of transactions, risk reporting andmonitoring, andaccountingarecarriedoutbyseparate,independentfunctions.
TheGroup’sextensivegovernanceprocessesareappliedtothemarketrisktakingactivities.Thisgovernanceframeworkincludes,interalia:
• Acomprehensivesetofpolicies,proceduresandlimits;
• Approvalofasetofrisklimitswithappropriatemonitoring,reportingandlimitsexcesses’escalationprocedures;
• Independent valuation of financial instruments in theTradingBook andmeasurementofmarketrisk;and
• Monitoring riskmetrics suchas risk sensitivities, net openpositionsandValue-at-Risk(VaR)limits.
• VaRiscalculatedusingthefollowingparameters:
•Statisticallevelofconfidence:99%
•Holdingperiod:1businessday
•Methodology:FullRevaluation,HistoricalSimulationusingover2yearsofhistoricalmarketdata
11
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Creditriskinrespectofderivativefinancialinstrumentsarisesfromthepotentialforacounterpartytodefaultonitscontractualobligationsandismeasuredusingthecurrentexposuremethodologyunderlocalregulation.Allcreditexposureismanagedunderapprovedfacilities.
Quantitative Disclosures (INRin‘000s)
Sr. No Particulars
2018-19 2017-18Currency
Derivatives / Forward Exchange Contracts
Interest Rate
Derivatives
Currency Derivatives / Forward Exchange Contracts
Interest Rate
Derivatives
(i) Derivatives(NotionalPrincipalAmount) 206,338 - - -
a)Forhedging - - - -b)Fortrading 206,338 - - -
(ii) MarkedtoMarketPositions (2,732) - - -
a)Asset(+) - - - -
b)Liability(-) (2,732) - - -(iii) CreditExposure 4,127 - - -(iv) Likelyimpactofone
percentage change ininterestrate(100*PV01)
6 - - -
a) on hedging derivatives - - - -
b) on trading derivatives 6 - - -
(v) MaximumandMinimumof100*PV01observedduringtheyeara)onhedging:Max - - - -Min - - - -b)ontrading:Max 35 - - -Min - - - -
e. Credit default Swaps: TheBankhasnotenteredintoanyCreditDefaultSwaptransactionsduringtheyear
ended31March2019(31March2018–Nil).
VII. ASSETS QUALITY: a. Non-Performing Assets (NPAs) Net NPAs to Net Advances (%) PercentageofNetNPAstoNetAdvancesforFY2018-19is0.00%(FY2017-18
0.00%)
Movement of Gross NPAs (INRin‘000s)
Particulars 2018-19 2017-18
OpeningBalance - -Add:Additionsduringtheyear - -Less:Reductionsduringtheyear - -ClosingBalance - -
Movement of Net NPAs: (INRin‘000s)
Particulars 2018-19 2017-18
OpeningBalance - -
Add:Additionsduringtheyear - -
Less:Reductionsduringtheyear - -
ClosingBalance - - Movement of provisions of NPAs (Excluding Provisions on Standard Assets) (INRin‘000s)
Particulars 2018-19 2017-18
OpeningBalance - -
Add:Provisionsmadeduringtheyear - -
Less:Writebackofexcessprovisions - -
Closingbalance - -
b. Particulars of Accounts Restructured During the year, theBank has not restructured advances given to any
customer.DisclosurespertainingtoStrategicDebtRestructuringScheme,SchemeofSustainableStructuringofStressedAssets(S4A)andResolutionofStressedAssetsarenotapplicable(FY2017-18–Nil).
c. Details of financial assets were sold to Securitisation / Reconstruction Company for Asset Reconstruction
Duringtheyear,theBankhasnottransferred/soldanyassetstoanyAssetReconstructionCompany(FY2017-18–Nil).
d. Details of Non-Performing financial assets purchased/sold Duringtheyear,theBankhasnotpurchasedorsoldNon-PerformingFinancial
Assets(FY2017-18–Nil).
e. Provision towards Standard Assets - (INRin‘000s)
Particulars 2018-19 2017-18
ProvisionstowardsStandardAssets 38,476 23,131
f. Provision Coverage Ratio (INRin‘000s)
Particulars 2018-19 2017-18
ProvisionCoverageRatio - -
VIII. BUSINESS RATIOS:
SN Particulars 2018-19 2017-18
1 Interestincometoworkingfunds(1) 6.12% 4.14%
2 Non-interestincometoworkingfunds(1) 0.51% 0.07%
3 Operatingprofit(2)toworkingfunds(1) 0.45% (1.73%)
4 Returnonassets(3) 0.43% (2.21%)
5 Businessperemployee(INRin‘000s)(4) 270,439 159,433
6 Profitperemployee(INRin‘000s)(5) 1,439 (4,088)Note: 1. WorkingfundsrepresentaverageoftotalassetsasreportedtoRBIinForm
XunderSection27oftheBankingRegulationAct,1949duringtheyear.
2. OperatingProfitmeansNetInterestIncomeplusotherincomeexcludinggain/lossonfixedassets.
3. NetProfitasapercentagetoaverageworkingfunds.
4. Businessmeans totalofnetadvancesanddeposits,excluding interbankdepositsbutincludingVostroBalanceswithHO.
5. Productivityratioisbasedonyearendemployeenumbers.
IX. MATURITY PATTERN OF ASSETS AND LIABILITIESYear ended 31 March 2019 (INRin‘000s)
Maturity Buckets
Loans & Advances Investment Deposit Borrowing
Foreign Currency
Asset
Foreign Currency Liabilities
Day–1 143,274 185,170 9,641 145,225 197,548 148,455
2-7Days 555,118 3,756,287 594,846 3,583,892 954,447 33,722
8-14Days 115,183 11,757 257,486 103,631 111,208 114,868
15-30Days 1,952,889 14,522 900,000 302,751 322,476 303,623
31Days-2Months 2,716,719 336,846 2,022,487 93,359 421,241 136,352
Above2Months&upto3Months 628,014 1,186,999 42,391 686,784 527,347 688,491
Over3Months&upto6Months 1,145,371 680,167 99,234 398,888 594,208 399,083
Over6Months&upto1Year 1,064,530 73,803 348,004 - - 24,503
Over1Year&upto3Years 565,790 261,374 773,893 - - 122,942
Over3Year&upto5Years 5,317 - - - - -
Over5Years - 78,698 - - 69,155 -
Total 8,892,205 6,585,623 5,047,982 5,314,530 3,197,630 1,972,039
12
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Year ended 31 March 2018 (INRin‘000s)
Maturity Buckets Loans & Advances Investment Deposit Borrowing
Foreign Currency
Asset
Foreign Currency Liabilities
Day–1 - 976,299 29,366 - 11,117 -
2-7Days 241,836 86,260 29,366 30,000 - -
8-14Days 355,607 555,028 29,366 550,000 - -
15-30Days 1,092,862 582,017 - 580,000 3,911 -
31Days-2Months 1,248,926 10,042 - 327,179 285,329 328,562
Above2Months&upto3Months 1,325,553 661 - 258,745 307,626 260,048
Over3Months&upto6Months 1,393,520 581,489 - 1,221,379 1,222,030 1,223,987
Over6Months&upto1Year 62,841 49,915 259,016 - - -
Over1Year&upto3Years 39,830 97,080 566,347 - - -
Over3Year&upto5Years 21,750 - - - - -
Over5Years - 35,457 - - 65,175 -
Total 5,782,725 2,974,248 913,461 2,967,303 1,895,188 1,812,597
Classificationofassetsandliabilitiesunderthedifferentmaturitybucketsarecompiledbymanagement(ongrossbasis)basedontheguidelinesissuedbytheRBIandarebasedonthesameassumptionsasusedbytheBankforcompilingthereturnssubmittedtoRBIandwhichhavebeenrelieduponbytheauditors.
X. EXPOSURE a. Lending to Sensitive Sectors: (INRin‘000s)
Particulars 2018-19 2017-18Exposure to Real Estate sectora) Directexposure (i) ResidentialMortgages– Lendingfullysecuredbymortgagesonresidential
propertythatisorwillbeoccupiedbytheborrowerorthatisrented;(Individualhousingloanseligibleforinclusioninprioritysectoradvancesmaybeshownseparately).
(ii) CommercialRealEstate**– Lendingsecuredbymortgagesoncommercial
realestate(officebuildings,retailspace,multi-purposecommercialpremises,multi-familyresidentialbuildings,multitenantedcommercialpremises,industrialorwarehousespace,hotels,landacquisition,developmentandconstruction,etc.).Exposurewouldalsoincludenon-fundbased(NFB)limits;
(iii) InvestmentsinMortgageBackedSecurities(MBS)andothersecuritisedexposures–
a. Residential b. CommercialRealEstateb) IndirectExposure Fundbasedandnon-fundbasedexposuresonNational
HousingBank(NHB)andHousingFinanceCompanies(HFCs).
-
850,000
-
-
-
-
-
-
Exposure to Capital Market - -
**Unsecuredand100%backedbySBLC.
b. Risk Category Wise Country Exposure: ProvisionforcountryriskexposureinlinewithRBIguidelinesisasfollows:
(INRin‘000s)
Risk CategoryExposure
(net) as at 31 March 2019
Provision held as at 31 March
2019
Exposure (net) as at 31 March 2018
Provision held as at 31 March
2018
Insignificant 51,761 - 10,028 -Low 3,301,346 1,117 81,284 -Moderate 293,113 - 114,811 -High 128,515 - - -VeryHigh - - - -Restricted - - - -Off-credit - - - -TOTAL 3,774,735 1,117 206,123 -
c. Disclosure on Single Borrower Limit (SBL)/ Group Borrower Limit (GBL): Duringtheyearended31March2019,thebankhascompliedwithReserve
BankofIndiaguidelinesonsingleborrowerandgroupborrowerlimit.SBLLimitwasdeterminedatamaximumlimitofBank’savailableeligiblecapitalbase.
d. Unsecured Advances against Intangible Securities: TherewerenoadvancesgrantedagainstIntangibleSecuritiessuchascharge
overtherights,licenses,authority(excludingGuarantees/SBLC),etc.duringtheyear.(FY2017-2018–Nil).
XI. DISCLOSURE OF PENALTIES BY RBI Duringtheyear,nopenaltieswereimposedbyRBI.
AnSGLbouncingincidentoccurredintheFinancialYear2018-19.TheBankhadenoughbalanceoffreesecuritiesinitsIntra-DayLiquidity(IDL)accountwithRBI.However,thesamesecuritygotusedoutofthesecuritiesheldbythebankwithRBIforIDLpurposesandalsoaRepotransactionwithTheClearingCorporationofIndiaLtd.(CCIL).TheBankwasunabletoreplacethesecurityblockedforIDLwithotheravailablefreesecurity.Duetothisunforeseenoperationalerror,theSGLbouncingincident occurred.
IntermsoftheReserveBankofIndiacirculardated14July2010bearingref.IDMD.DOD.17/11.01.01 (B) 2010-11,monetarypenaltywaswaivedoff byRBI for thisincidentvideletterdated26thJuly2018.
XII. EMPLOYEE BENEFITS (ACCOUNTING STANDARD -15) a. Provident Fund ThecontributiontoEmployeesProvidentFundamountedtoINR7,205(P.Y.
INR4,580)(in‘000s)fortheyearended31March2019.
b. Gratuity ThefollowingtablesgivethedisclosureregardingtheGratuitySchemein
accordancewiththeAccountingStandard15(Revised):
ChangesinthePresentValueofDefinedBenefitObligationsduringtheyear:
(INRin‘000s)
Particulars 2018-19 2017-18
PresentvalueofDefinedBenefitObligationasattheBeginningofthePeriod
6,250 -
Interestcost 481 -
CurrentServiceCost 3,947 6,250
(LiabilityTransferredOut) - -
(BenefitsPaid) - -
Actuarial(gains)/LossesonObligations (168) -
Present value of the Defined Benefit Obligation at the End of the Period
10,510 6,250
ChangesintheFairValueofPlannedAssets (INRin‘000s)
Particulars 2018-19 2017-18
FairValueofPlanAssetsatBeginningofthePeriod - -
ExpectedReturnonPlanAssets - -
ContributionsbytheEmployer - -
(BenefitPaidfromtheFund) - -
ActuarialGains/(Losses)onPlanAssets-DuetoExperience - -
Fair Value of Plan Assets at the End of the Period - -
Tableofrecognitionofactuarialgains/losses: (INRin‘000s)
Particulars 2018-19 2017-18
Actuarial(Gains)/lossesonobligationfortheperiod (168) -
Actuarial(Gains)/lossesonassetfortheperiod - -
Actuarial (Gains)/losses recognized in income & expenses Statement
(168) -
AmountRecognizedintheBalanceSheet: (INRin‘000s)
Particulars 2018-19 2017-18
Fairvalueofplanassetsattheendoftheperiod - -
(PresentvalueofbenefitobligationasattheendofthePeriod)
(10,510) (6,250)
Net (Liability)/asset recognized in the balance sheet
(10,510) (6,250)
13
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
ExpensesRecognizedintheProfit&LossAccount: (INRin‘000s)
Particulars 2018-19 2017-18
Currentservicecost 3,947 6,250
Interestcost 481 -
Expectedreturnonplanassets - -
Actuarial(gains)/losses (168) -
Expense recognized in the income statement 4,260 6,250
ExperienceAdjustmentisasfollows: (INRin‘000s)
Experience Adjustment 2018-19 2017-18
Gratuity
DefinedBenefitObligation(A) 10,510 6,250
Planassets(B) - -
Surplus/(Deficit)(B-A) (10,510) (6,250)
ExperienceGains/(Losses)onObligation 376 -
ActuarialGains/(Losses)duetochangesonassumption
(208) -
ExperienceGains/(Losses)onPlanAssets - -
c. Leave Encashment Theactuarially determined liability forCompensatedAbsences (Privilege
Leave)oftheemployeesoftheGroupisgivenbelow: (INRin‘000s)
Particulars 2018-19 2017-18
Provisionasatdate 5,451 5,245
d. Principal Actuarial Assumptions
Particulars 2018-19 2017-18
DiscountRate 7.50% 7.70%
SalaryEscalationRate–JuniorLevelMid-Level&above
10%7%
10%7%
MortalityRate IndianAssuredLivesMortality(2006-08)
IndianAssuredLivesMortality(2006-08)
AttritionRate 5% 5%
ReturnonPlanAsset - - Theaboveassumptions are considered for determining actuarial liability
underGratuity&LeaveEncashment.LiabilitytowardsLeaveEncashmentandGratuityarenon-funded.
e. National Pension Scheme TheBankhascontributedINR3,183(in‘000s)fortheyearended31March
2019(31March2018–INR2,091(in‘000s))toNPSforemployeeswhohadoptedforthescheme.Thebankhasnoliabilityforfuturefundbenefitsotherthanitsannualcontributionfortheemployeeswhoagreetocontributetothescheme.
XIII. SEGMENT REPORTING (ACCOUNTING STANDARD -17) a) TheBank in Indiaoperatesasasingleunitand thereareno identifiable
geographicalsegments.
b) TheBankhasclassifieditsbusinessintothefollowingsegments,namely:
• Treasury–primarilycomprisingofforex,bonds,governmentsecuritiesandderivativesactivities.
• Wholesale/CorporateBanking-comprisingofCorporateBankingandTradeFinanceandCorporateDeposits.
• OtherBankingoperations–comprisingofOtherDepositsandallotherBankingoperations,whicharenotincludedunderabovesegments
• Unallocatedsegments,income,expense,assetsandliabilitiesincludesitemswhicharenotallocabletoothersegments.
Business Segment Reporting as of 31 March 2019
(INRin‘000s)
Business Segments Treasury Corporate / Wholesale Banking
Other Banking
Operations
Total
Revenue 417,441 593,322 788 1,011,551
Expense (347,132) (140,403) (194,534) (682,069)
Results 70,309 452,919 (193,746) 329,482
Unallocatedexpense (260,260)
Business Segments Treasury Corporate / Wholesale Banking
Other Banking
Operations
Total
Operatingprofit/(loss) 69,222
Provisions (9,202)
Incometaxes 6,197
Extraordinaryprofit/(loss) -
Net profit / (loss) 66,217
Segmentassets 8,014,187 9,027,575 148,077 17,189,839
Unallocatedassets 213,688
Total assets 17,403,527
Segmentliabilities 6,860,197 2,517,194 1,258,782 10,636,173
Unallocatedliabilities 10,868
CapitalandReserves&Surplus
6,756,486
Totalliabilities 17,403,527
BusinessSegmentReportingasof31March2018 (INRin‘000s)
Business Segments Treasury Corporate / Wholesale Banking
Other Banking
Operations
Total
Revenue 248,994 82,799 (16) 331,777
Expense (53,275) (52,947) (139,835) (246,057)
Results 195,719 29,852 (139,851) 85,720
Unallocatedexpense (224,490)
Operatingprofit/(loss) (138,770)
Provisions (30,391)
Incometaxes (2,546)
Extraordinaryprofit/(loss) -
Net profit / (loss) (171,707)
Segmentassets 4,296,048 5,908,395 166,094 10,370,537
Unallocatedassets 199,718
Total assets 10,570,255
Segmentliabilities 2,993,957 98,994 1,092,653 4,185,604
Unallocatedliabilities 15,600
CapitalandReserves&Surplus
6,369,051
Totalliabilities 10,570,255 Note:Inallocationofsomeitemsofexpenses/incomeandasset/liabilities,certainestimates
andassumptionshavebeenmadebythemanagement,whichhasbeenrelieduponbytheauditors.
TheBankdoesnothaveanyoverseasoperationsandhencethereisnogeographicalsegmentreporting.
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)–KSABranches
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.
14
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
a. Disclosure in respect of transactions with subsidiaries of Head Office (INRin000’s)
ParticularsOutstanding
as on 31 Mar 2019
Maximumbalance
during the FY
Outstanding as on
31 Mar 2018
Maximumbalance
during the FY
Advances - 35,557 26,232 26,232
Borrowing - - - -
AmountReceivable - - - -
AmountPayable - - - -
(INRin000’s)
Particulars 2018-19 2017-18
InterestIncome* 282 78
CommissionIncome* 217 -
*Interest&CommissionIncomepertainingtoEmiratesNBDBankS.A.E(Egypt)
XV. LEASE ACCOUNTING (ACCOUNTING STANDARD 19) a) TheBank’s significant leasingarrangements are in respect of operating
leasesforcommercialpremisesandmotorcarforemployees.
b) MinimumLeasePaymentsoverthenon-cancellableperiodoftheleaseINR193,885(in‘000s).
(INRin‘000s)
Particulars 2018-19 2017-18
Notlaterthan1year 67,269 64,449
Laterthan1yearandnotlaterthan5years 126,616 45,652
Laterthan5years - -
TOTAL 193,885 110,101 c) LeasepaymentsrecognisedintheProfitandLossAccountduringtheyear:
INR66,628(P.Y.INR63,963)(in‘000s)
XVI. ACCOUNTING FOR TAXES ON INCOME (ACCOUNTING STANDARD - 22) Theprimarycomponentsthatgiverisetodeferredtaxassetsandliabilitiesareas
follows: (INRin‘000s)
ParticularsFor the year
ended31 Mar 2019
Outstanding as on
31 Mar 2019
For the year ended
31 Mar2018
Outstanding as on
31 Mar 2018
Deferred Tax LiabilityDepreciationonFixedAssets 6,698 29,888 23,190 23,190
Total (A) 6,698 29,888 23,190 23,190Deferred Tax Asset*
Provisionforemployeebenefits 2,190 6,972 4,782 4,782
ProvisionforBonus 3,033 9,273 6,240 6,240ProvisionforStandardAsset 7,672 17,294 9,622 9,622Total (B) 12,895 33,539 20,644 20,644Deferred Tax Liability/ (Asset) (Net) (A) – (B) (6,197) (3,651) 2,546 2,546
*DeferredTaxAssetonTaxLossforthepreviousyearhasnotbeenrecognisedbasedonabsenceofvirtualcertaintyoffutureprofits.
XVII. OTHER EXPENDITURE Expense in excessof 1%ofTotal Income formingpart ofOtherExpenditure in
Schedule 16
(INRin‘000s)
Particulars FY2018-19 FY 2017-18
OtherMiscellaneousExpenses 34,193 42,866
OtherConsulting 7,760 12,697
BusinessPromotions/Events 973 7,124
XVIII. CAPITAL COMMITMENTS (INRin‘000s)
Particulars As at 31 March 2019
As at 31 March 2018
Estimateamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor
- -
XIX. IMPAIRMENT OF ASSETS (ACCOUNTING STANDARD - 28) Fixedassetsacquiredbythebank,aretreatedas‘CorporateAssets’andarenot
CashGeneratingUnit’asdefinedbyAS-28.IntheopinionofthemanagementoftheBank,thereisnoimpairmentofanyofthefixedassetsoftheBank.
XX. PROVISIONS, CONTINGENT LIABILITIES AND ASSETS (ACCOUNTING STANDARD - 29)
Description of Contingent Liabilities Claims against the Bank not acknowledged as debt ThisrepresentslegalclaimsfiledagainsttheBankinitsnormalcourseofbusiness
andtaxclaims/demandsraisedbytheIncomeTaxauthorities,whicharedisputedby the Bank.
Liability on account of forward exchange and derivative contracts TheBankcurrentlyentersintoderivativecontractssuchasforeignexchangecontracts
andforeignexchangeoptionsonitsownaccountandforcustomers.Thenotionalamountsthatarerecordedascontingentliabilitiesformthebasisforthecalculationoftheinterestcomponentonthecontractswhereapplicable.
Guarantees given on behalf of constituents, Acceptances, Endorsements and other obligations
Asapartofitsnormalbankingactivities,theBankissuesdocumentarycreditandguaranteesonbehalfofitscustomers.
BREAK UP OF ‘PROVISIONS AND CONTINGENCIES’ SHOWN UNDER THE HEAD EXPENDITURE IN PROFIT AND LOSS ACCOUNT: (INRin‘000s)
Particulars 2018-19 2017-18
ProvisionforDepreciationonInvestment (7,260) 7,260
ProvisiontowardsStandardsAssets 15,345 23,131
ProvisiontowardsCountryRiskExposures 1,117 -
ProvisionforDeferredTaxLiabilities/(Assets) (6,197) 2,546
Total 3,005 32,937
XXI. 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.
(INRin‘000s)
Particulars 2018-19 2017-18
NumberofFraudsreported - -
INRinvolvedinfrauds - -
Provisionmade - -
Unamortizedprovisiondebitedfromotherreserve - -II. FLOATING PROVISION TheBankdoesnothaveoutstandingfloatingprovisionsasatMarch31,2019(March
31,2018–Nil).
III. DRAWDOWN FROM RESERVES Duringthefinancialyearended31March2019,therehasbeennodrawdownfrom
Reserves(FY2017-18–Nil).
IV. DISCLOSURE OF COMPLAINTS/UNIMPLEMENTED AWARDS OF BANKING OMBUDSMAN -
InaccordancewithRBIcircularDBOD.No.Leg.BC.60/09.07.005/2006-07dated22February2007detailsofcustomercomplaintsandawardspassedbyBankingOmbudsmanareasunder:
a. Customer complaints
Sn Particulars 2018-19 2017-18
i. No. of complaints pending at the beginning ofthe year - -
ii. No.ofcomplaintsreceivedduringtheyear - -
iii. No.ofcomplaintsredressedduringtheyear - -
iv. No.ofcomplaintspendingattheendoftheyear - -
15
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
b. Awards passed by the Banking Ombudsman
SN Particulars 2018-19 2017-18
i. No.ofunimplementedawardsat thebeginningoftheyear - -
ii. No. of awards passed by the BankingOmbudsmanduringtheyear. - -
iii. No.ofawardsimplementedduringtheyear - -
iv. No.ofunimplementedawardsattheendoftheyear - -
V. DISCLOSURE OF LETTERS OF COMFORT (LOCs) ISSUED BY BANKS TheBankhasnotissuedanyLetterofComfort(LOC)duringtheyear(FY2017-18
–Nil).
VI. BANCASSURANCE BUSINESS Nofees/remunerationhadbeenreceivedinrespectofthebankassurancebusiness
duringtheyearended31March2019(31March2018–Nil).
VII. CONCENTRATION OF DEPOSITS, ADVANCES, EXPOSURES AND NPAs – a. Concentration of Deposits - (INRin‘000s)
Particulars 2018-19 2017-18
Totaldepositsoftwentylargestdepositors 5,039,080 912,874
Percentageofdepositsoftwentylargestdepositorstototaldepositsofthebank(includesinter-bankdeposits)
99.82% 99.94%
b. Concentration of Advances** (INRin‘000s)
Particulars 2018-19 2017-18
Totaladvancesoftwentylargestborrowers* 4,364,645 75,518
Percentageofadvancesoftwentylargestborrowerstototaladvancesofthebank 49.08% 1.31%
*excludinginterbankexposuresandbasedonactualfundedutilisation
**AdvancesarecomputedasperdefinitionofCreditExposureincludingderivativesfurnishedinMasterCircularofExposurenorms.
c. Concentration of Exposures@ (INRin‘000s)
Particulars 2018-19 2017-18
Totalexposuretotwentylargestborrowers/customers* 9,947,177 1,039,000
Percentageofexposuretotwentylargestborrowers/customerstototalexposureofthebankonborrowers/customers
52.65% 15.40%
*excludinginterbankexposures
@ExposuresarecomputedbasedonCreditandInvestmentExposurefurnishedinMasterCircularofExposureNorms.
d. Concentration of NPAs (INRin‘000s)
Particulars 2018-19 2017-18
TotalexposuretotopfourNPAaccount - -
VIII. SECTOR WISE ADVANCES & NPAs (INRin‘000s)
Sr. No. Sector
2018-19
Outstanding Total
Advances Gross NPAs
% of Gross NPAs to Total Advances in that Sector
A Priority Sector
1 Agricultureandalliedactivities - - -
2 Advancestoindustriessectoreligibleasprioritysectorlending 1,418,341 - -
Of which:
Gems & Jewelry 645,499 - -
Other Chemical & Chemical Products 772,841 - -
3 Services 1,053,579 - -
Of which:
Banking & Finance other than NBFCs 997,029 - -
4 Personalloans - - -
Sub-total (A) 2,471,920 - -
Sr. No. Sector
2018-19
Outstanding Total
Advances Gross NPAs
% of Gross NPAs to Total Advances in that Sector
B Non Priority Sector
1 Agricultureandalliedactivities - - -
2 Industry 910,584 - -
Of which:
Drugs & Pharmaceuticals 500,000 - -
Other Industries (Miscellaneous Petroleum Products) 410,584 - -
3 Services 5,509,701 - -
Of which:
Banking & Finance other than NBFCs 3,530,531 - -
Commercial Real Estate 850,000 - -
NBFCs 779,000 - -
4 Personalloans - - -
Sub-total (B) 6,420,285 - -
Total (A+B) 8,892,205 - -
(INRin‘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 - - -
2 Advancestoindustriessectoreligibleasprioritysectorlending 6,517 - -
Of which:
Gems & Jewelry 6,517 - -
3 Services 1,874,585 - -
Of which:
Banking & Finance other than NBFCs 1,805,585 - -
4 Personalloans - - -
Sub-total (A) 1,881,102 - -
B Non Priority Sector
1 Agricultureandalliedactivities - - -
2 Industry - - -
3 Services 3,901,623 - -
Of which:
Banking & Finance other than NBFCs 3,901,623 - -
4 Personalloans - - -
Sub-total (B) 3,901,623 - -
Total (A+B) 5,782,725 - -
IX. Priority Sector Lending Certificate (PSLC) Year ended 31 March 2019 (INRin‘000s)
Particulars PSLC Purchased PSLC Sold
PSLC–Agriculture 60,000 -
PSLC–SmallandMarginalFarmers 100,000 -
PSLC–MicroEnterprises - -
PSLC–General - -
16
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Year ended 31 March 2018 (INRin‘000s)
Particulars PSLC Purchased PSLC Sold
PSLC–Agriculture - -
PSLC–SmallandMarginalFarmers - -
PSLC–MicroEnterprises - -
PSLC–General - -
X. MOVEMENT OF NPAs (INRin‘000s)
Particulars 2018-19 2017-18
Openingbalance - -
Additions(FreshNPAs)duringtheyear - -
Sub-total(A) - -
Less:
(i)Upgradations - -
(ii)Recoveries(excludingrecoveriesmadefromupgradedaccounts) - -
(iii)Write-offs - -
Sub-total(B) - -
Closingbalance(A-B) - -
XI. DIVERGENCE IN ASSET CLASSIFICATION AND PROVISIONING FOR NPAs ThedisclosureinrespectofdivergenceinAssetclassificationisnotapplicable.
XII. OVERSEAS ASSETS, NPA AND REVENUE TheBankdoesnothaveanyOverseasAssetsandNPA’sasat31March2019(31
March2018–Nil)andhencerelatedrevenuesfortheyearended31March2019isNil(31March2018–Nil).
XIII. OFF-BALANCE SHEET SPVs SPONSORED (WHICH ARE REQUIRED TO BE CONSOLIDATED AS PER ACCOUNTING NORMS)
Name of the SPV sponsored
Domestic Overseas
Nil(31March2018–Nil) Nil(31March2018–Nil)
XIV. FACTORING EXPOSURES Thebankhasfactoringexposureof INR50,171(in ‘000s)asatMarch31,2019
(March31,2018–Nil)includedinSchedule9(A)(i)–BillsPurchasedandDiscounted
XV. UNAMORTISED PENSION AND GRATUITY LIABILITIES TheBankdoesnothaveanyunamortisedPension/GratuityLiabilitiesasat31March
2019(31March2018–Nil).
XVI. DISCLOSURE ON REMUNERATION
IntermsofguidelinesissuedbyRBIvidecircularno.DBOD.NO.BC.72/29.67.001/2011-12dated13January2012on“CompensationofWholeTimeDirectors/ChiefExecutiveOfficers/RisktakersandControlfunctionstaff,etc.”,thebankhassubmittedadeclarationtoRBItotheeffectthatthecompensationstructureinIndia,includingthatofCEO’s,primarilycoverstheobjectivesandthebasicprinciplesandstandardsofFinancialStabilityBoard(FSB).
XVII. DISCLOSURES RELATING TO SECURITIZATION Therewerenosecuritizedassetsoutstandingason31March2019(2018–Nil).
XVIII. PROVISION FOR LONG TERM CONTRACTS TheBankhasa processwherebyperiodically all long term contracts (including
derivativecontracts)areassessedformaterialforeseeablelosses.Attheyearend,theBankhasreviewedandrecordedadequateprovisionasrequiredunderanylaw/accountingstandardsformaterialforeseeablelossesonsuchlongtermcontracts(includingderivativecontracts)inthebooksofaccountanddisclosedthesameundertherelevantnotesinthefinancialstatements.
XIX. INTRA GROUP EXPOSURE - Intra-GroupExposuresason31March2019isNil(31March2018–INR26,232in
‘000s).
XX. TRANSFER TO DEPOSITOR EDUCATION AND AWARENESS FUND (DEAF) (INRin‘000s)
Particulars 2018-19 2017-18
OpeningbalanceofamountstransferredtoDEAF - -
Add:AmountstransferredtoDEAFduringtheyear - -
Less:AmountsreimbursedbyDEAFtowardsClaim - -
ClosingbalanceofamountstransferredtoDEAF - -
XXI. UNHEDGED FOREIGN CURRENCY EXPOSURE TheBankmonitorsUnhedgedForeignCurrencyExposure(UHFCE)tofactorthe
riskarisingfromcurrencyvolatilityintopricingaspertheguidelinesstipulatedbyRBIon15January2014.AtthetimeofassessingtheproposaltheBanktakesthepositionofUHFCEfornewborrowersandcalculatestheincrementalprovisioningandcapitalrequirementtoadjustthepricingofnewloans.Thereafterbasedonthecertificateprovidedbythecustomer,theBankcalculatestheincrementalprovisioningandcapitalrequirementforcustomereveryquarterasperthemethodologysuggestedasperRBIcircular.ProvisiontowardsUHFCEasat31March2019isNil(31March2018–Nil).
XXII. LIQUIDITY COVERAGE RATIO TheBankduetosmallsizeofoperationshasbeencomputingitsLCRonamonthly
basis sinceAugust 2017.Themonthly average liquidity coverage ratio (LCR)maintainedforthequarterended31March2019was388.05%.Witheffectfrom1March2019thebankhascommencedcalculatingtheLCRondailybasis.
ThefollowingtablesetsforthmonthlyaverageunweightedandweightedvalueoftheLCRof theBank forquartersended30June2018,30September2018,31December2018and31March2019.
(INRin‘000s)
Sr. No. Particulars
30 Jun 18 30 Sep 18 31 Dec 18 31 Mar 19
Total Unweighted
Value (Average)
Total Weighted Value
(Average)
Total 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 Assets
1 TotalHighQualityLiquidAssets(HQLA) 2,609,303 2,026,975 2,530,848 2,467,535
Cash Outflows
2 Retaildepositsanddepositsfromsmallbusinesscustomers,ofwhich:
940,222 93,912 1,053,521 105,234 1,131,038 112,974 1,122,247 112,098
(i)Stabledeposits 2,217 111 2,356 118 2,599 130 2,515 125
(ii)Lessstabledeposits 938,005 93,801 1,051,165 1,05,116 1,128,439 112,844 1,119,732 111,973
3 Unsecuredwholesalefunding,ofwhich: 1,317,512 1,238,370 3,457,242 2,761,017 3,059,196 2,643,028 3,227,638 2,319,355
(i)Operationaldeposits(allcounterparties) - - - - - - - -
(ii)Non-operationaldeposits(allcounterparties) 1,317,512 1,238,370 3,457,242 2,761,017 3,059,196 2,643,028 32,27,638 2,319,355
(iii)Unsecureddebt - - - - - - - -
4 Securedwholesalefunding - - - -
5 Additionalrequirements,ofwhich 7,197 7,197 2,084 2,084 1,680 1,680 3,784 3,784
(i)Outflowsrelatedtoderivativeexposuresandothercollateralrequirements
7,197 7,197 2,084 2,084 1,680 1,680 3,784 3,784
(ii)Outflowsrelatedtolossoffundingondebtproducts
- - - - - - - -
17
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Sr. No. Particulars
30 Jun 18 30 Sep 18 31 Dec 18 31 Mar 19
Total Unweighted
Value (Average)
Total Weighted Value
(Average)
Total Unweighted
Value (Average)
Total Weighted Value
(Average)
Total Unweighted
Value (Average)
Total Weighted Value
(Average)
Total Unweighted
Value (Average)
Total Weighted Value
(Average)
(iii)Creditandliquidityfacilities - -km - - - - - -
6 Othercontractualfundingobligations 14,477 14,477 10,830 10,830 21,737 21,737 21,560 21,560
7 Othercontractualfundingobligations 1,989,808 59,694 1,104,830 33,145 3,652,149 109,565 5,387,652 161,630
8 Total Cash Outflows 1,413,650 2,912,310 2,888,984 2,618,427
Cash Inflows
9 Securedlending(e.g.reverserepos) - - - - - - - -
10 Inflowsfromfullyperformingexposures 1,141,643 1,131,268 1,990,130 1,914,177 1,830,982 1,522,643 2,259,616 1,963,594
11 Othercashinflows 5,982 5,982 7,478 7,478 7,167 7,167 32,198 18,958
12 Total Cash Inflows 1,147,625 1,137,250 1,997,607 1,921,655 1,838,149 1,529,810 2,291,814 1,982,552
21 Total HQLA 2,609,303 2,026,975 2,530,848 2,467,535
22 Total Net Cash Outflows 276,401 990,655 1,359,174 635,875
23 Liquidity Coverage Ratio (%) 944.03% 204.61% 186.20% 388.05%
(INRin‘000s)
Sr. No. Particulars
30-Sep-17 31-Dec-17 31-Mar-18
Total 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 Assets
1 TotalHighQualityLiquidAssets(HQLA) 4,253 2,885,533 2,567,781
Cash Outflows
2 Retaildepositsanddepositsfromsmallbusinesscustomers,ofwhich: 1,802 158 5,50,529 55,013 835,427 83,444
(i)Stabledeposits 448 22 801 40 1,983 99
(ii)Lessstabledeposits 1,354 136 5,49,728 54,973 833,444 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 1,191,968 35,759
8 Total Cash Outflows 6,459 95,070 177,429
CashInflows
9 Securedlending(e.g.reverserepos) - - - - - -
10 Inflowsfromfullyperformingexposures 2,968,300 2,968,300 22,48,333 2,248,333 673,121 673,121
11 Othercashinflows - - - - 3,441 3,441
12 Total Cash Inflows 2,968,300 2,968,300 2,248,333 2,248,333 676,562 676,562
21 Total HQLA 4,253 2,885,533 2,567,781
22 Total Net Cash Outflows 1,615 23,768 44,357
23 Liquidity Coverage Ratio (%) 263.37% 12,140.61% 5,788.87%
18
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Qualitative disclosure around LCR: ReferLCRCircularforDisclosureRequirementshereunder (a) DriversofLCRresultsandCompositionofHQLA:TheLCRstandardaims
toensurethatabankmaintainsadequatelevelofunencumberedHQLAthatcanbeconvertedintocashtomeetitsliquidityneedsfora30calendardaytimehorizonundersignificantlysevereliquiditystressscenarioasspecifiedby supervisors.TheBank’sHighQuality LiquidAssets (HQLA) primarilyconsistofexcessSLRsecuritiesintheformofGovernmentsecurities,13%ofNDTLunderFALLCR(aspermissiblebyRBI),2%MSF(aspermissiblebyRBI),balancemaintainedwithRBIinexcessofCRRrequirementwhichareconsideredasLevel1HighQualityLiquidAssets(HQLA).BankalsohasinvestmentsinCommercialpaperissuedbyFinancialInstitutions(FI).CommercialPapersissuedbyFIareconsideredasHQLALevel2AssetforLCRcomputation.
(b) Intra-periodchanges:AsperRBIguidelines,theLCRmaintenancelimitis90%for2018and100%from1stJanuary2019onwards.TheLCRmaintainedhasalwaysbeenabovetheRBIlimit.Theintraperiodchangesaremainlyonaccountofchangeinun-encumberedexcessSLRpositions.
(c) Derivative Exposure and potential collateral calls:MTM arising out ofoutstandingFXhasbeenappropriatelyconsideredLCRcomputation.
(d) Currencymismatches:LCRcomputationisaggregatedacrosscurrencies,INRbeingthepredominantcurrency.OtherthanINR,theBankhasmajorexposureinUSdollarsastherearepreandpostshipmentloansbookedindollars.TheseloansarefundedthroughUSdollarborrowingfromtheheadofficeformatchingtenorsandportfolio.
(e) Degreeofcentralisationofliquiditymanagement:Bank’sliquiditymanagementand monitoring is centralised. Bank’s EXCO has adopted liquiditymanagementpolicyinlinewithRBIregulationandGrouprequirement.
(f) OtherinflowsandoutflowsintheLCRcalculationthatarenotcapturedintheLCRcommontemplatebutwhichtheinstitutionconsiderstoberelevantforitsliquidityprofile:AlltheinflowsandoutflowsconsiderednecessaryfromthebalancesheetarecapturedincomputationofLCR.Further,theBankbelievesthattheinflowsandoutflowswhichmighthaveamaterialimpactundertheliquiditystressscenariohavebeenconsideredforthepurposeofLCR.
XXIII. DISCLOSURE ON NOSTRO ACCOUNTS There are no outstanding entry formore than threemonths in nostro accounts
whichispendingforreconciliation.Further,theBankhasnotwrittenoff/backanyoutstandingentrytothedebit/creditoftheprofitandlossaccountduringtheyearended31March2019.
XXIV. PROVIDENT FUND TheHon’bleSupremeCourtofIndia(“SC”)bytheirorderdated28February2019,in
thecaseofSuryaRoshaniLimited&othersv/sEPFO,setouttheprinciplesbasedonwhichallowancespaidtotheemployeesshouldbeidentifiedforinclusioninbasicwagesforthepurposesofcomputationofProvidentFundcontribution.Subsequently,areviewpetitionagainstthisdecisionhasbeenfiledandispendingbeforetheSCfordisposal.
PendingdecisiononthesubjectreviewpetitionanddirectionsfromtheEPFO,theimpact,ifany,isnotascertainableandconsequentlynoeffecthavebeengivenintheaccounts.
XXV. CORPORATE SOCIAL RESPONSIBILITY (CSR) AspertheprovisionsofSection135oftheCompaniesAct,2013,theBankisnot
requiredtospendtowardsCSRinthecurrentyear.XXVI. PREVIOUS YEAR’S COMPARATIVE Previousyear’sfigureshavebeenregroupedwhererequired.
AsperourattachedReportofevendate.
ForKhimji Kunverji & Co. LLP(formerly Khimji Kunverji & Co FRN : 105146W)CharteredAccountants
ForEmirates NBD Bank (PJSC), IndiaBranch
Vinit K JainPartner(F-145911)
Sharad AgarwalChiefExecutiveOfficer,India
Place:MumbaiDate:24Jun2019
Place:MumbaiDate:24Jun2019
BASEL III DISCLOSURES OF THE INDIA BRANCH FOR THE YEAR ENDED 31 MARCH 2019
All amts. in INR. ’000s, unless otherwise statedDF 1. Scope of application1. Qualitative and Quantitative Disclosures: TheBank is subject to the capital adequacy guidelines stipulated byReserve
BankofIndia(RBI),whicharebasedontheframeworkoftheBaselCommitteeonBankingSupervision.AsperBaselIIIguidelines,theBankisrequiredtoachieveaminimumCapitaltoRiskWeightedAssetsRatio(CRAR)of9%{11.5%including
CapitalConservationBuffer(CCB)},withminimumCommonEquityTierI(CET1)of5.5%(8%includingCCB)by31stMarch2020.TheseguidelinesonBaselIIIweretobeimplementedbybanksfrom1stApril2013inaphasedmanner.TheminimumcapitalrequiredtobemaintainedbytheBankfortheyearended31stMarch2019is9%(10.875%includingCCB)withminimumCommonEquityTier1(CET1)of5.5%(7.375%includingCCB).TheriskmanagementframeworkofIndianoperationsisintegratedwiththeBank’sstrategyandbusinessplanningprocessesatgloballevel.TheBankhascomprehensiveriskmanagementframeworktomonitor,evaluateandmanagetheprincipalrisksassumedinconductingitsactivities.TheriskmanagementfunctioninIndiaisasperdirectivesandframeworksetoutatHeadOfficelevel.Asat31March2019, theBankdoesnothaveany investment insubsidiaries/JointVenturesandAssociates,significantminorityequityinvestmentininsurance,financialandcommercialentities.
2. Capital structure Qualitative Disclosures Bankregulatorycapitalconsistsoftwocomponents–Tier1capitalandTier2capital.
Both components of capital provide support for banking operations andprotectdepositors.AsperReserveBankofIndia(RBI)guidelines,thecompositionofcapitalinstrumentsforforeignbanksinIndiawouldincludethefollowingelements:
Tier 1 Capital:
· Interest-freefundsreceivedfromHeadOffice
· StatutoryreserveskeptinIndianbooks
· RemittablesurplusretainedinIndianbookswhichisnotrepatriablesolongasthebankfunctionsinIndia
· CapitalReserves
· Interest-freefundsremittedfromHeadOfficeforacquisitionofproperty
Tier 2 Capital:
· Generalprovisionsandlossreserves:
Generalprovisionsandlossreservescanbereckoneduptoamaximumof1.25percentofthetotalCreditrisk-weightedassets.SuchprovisionsandreservesincludeprovisionsonStandardAssets,CountryRiskExposures,UnhedgedForeignCurrencyExposures,InvestmentReserveAccountandInvestmentFluctuationReserve.
· HeadOfficeborrowingsinforeigncurrencyraisedbyforeignbanksoperatinginIndiaclassifiedasSubordinatedDebtsubjecttoamaximumceilingof50%oftheTier1capitalmaintainedinIndia.
Quantitative Disclosures
(a)Tier1Capital (Rs.‘000s)
AmountReceivedfromHeadOffice 6,437,100
TransferofHeadOfficefundsonaccountofRepresentativeOfficeclosure
103,658
StatutoryReserves 16,555
RemittableSurplusRetainedinIndiaforCRAR -
CapitalReserves -
AmountpayabletoH.OtowardsIndiabranchsetuprelatedprojectexpenses
303,060
Less:AccumulatedLosses 171,707
Less:IntangibleAssetsandDeferredTaxAssets 264,091
Total Tier 1 Capital 6,424,575
(b)Tier2Capital (Rs.‘000s)
GeneralProvisionsandLossReservesreckoneduptoamaximumof1.25percentofthetotalCreditrisk-weightedassets
70,038
Amounteligibletobereckonedascapitalfunds 70,038
(c)DebtCapitalInstrumentsEligibleforinclusioninUpperTier2Capital (Rs.‘000s)
TotalAmountOutstanding -
ofwhichamountraisedduringthecurrentyear -
Amounteligibletobereckonedascapitalfunds -
(d)SubordinatedDebtEligibleforinclusioninLowerTier2Capital (Rs.‘000s)
Totalamountoutstanding -
ofwhichamountraisedduringthecurrentyear -
Amounteligibletobereckonedascapitalfunds -
Total Tier 2 Capital (b) + (c) + (d) 70,038
19
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
(e) Otherdeductionfromcapital.
Therearenootherdeductionsfromcapital.
(f) TotalEligibleCapital
ThetotaleligiblecapitalisRs.6,494,613(‘000s).
DF 2. Capital Adequacy Qualitative Disclosures TheBank has assessed its capital requirement taking into account the 3main
risksasdefinedbyPillar1oftheBaselIIInormsviz:CreditRisk,MarketRiskandOperationalRisk.CreditRiskiscomputedusingtheStandardisedApproach,MarketRiskiscalculatedusingtheStandardisedDurationApproachandOperationalRiskiscalculatedusingtheBasicIndicatorApproach.Theriskcomputationundereachofthese3categoriesisadequatelycoveredbytheCapitaloftheBank.
The Bank has assessed its future capital requirement and the samewill bedocumentedintheICAAP(InternalCapitalAdequacyAssessmentProcess)basedonthepositionasofMarch31,2019.Thecapitalrequirementwillbere-assessedperiodically.
Theexisting level ofCapital is adequate tomeet theBank’s current and futurebusinessrequirementsandthecapitalandCRARratiooftheBankissignificantlyhigher than theminimum regulatory capital and ratio prescribed by theRBI.AsummaryoftheBank’scapitalrequirementforcredit,marketandoperationalriskandthecapitaladequacyratioason31stMarch2019ispresentedbelow:
Quantitative Disclosures
(Rs.‘000s)
(a) CapitalRequirementsforCreditRisk:
PortfoliossubjecttoStandardisedApproach 856,472
SecuritisationExposures -
(b) CapitalRequirementsforMarketRisk:StandardisedDurationApproach: InterestRateRisk 96,537
ForeignExchangerisk(includingGold) 102,233
EquityRisk -
(c) CapitalRequirementforOperationalRisk:
BasicIndicatorApproach 64,586
TotalCapitalRequired 1,119,828
TotalEligibleCapital 6,494,613
TotalRiskWeightedAssets 10,297,264
TotalCapitalRatio 63.07%
Tier1CapitalRatio 62.39%
DF 3. Credit risk: general disclosures Qualitative Disclosures Creditriskisdefinedasriskoffinanciallossarisingfromthefailureofthecustomer
orcounterparty,tomeetitscontractualobligationstotheBank.Itcanarisefrombothfundedandnon-fundedtransactionsthatarecontingentinnature.
Credit riskmanagement approach is basedon the foundation of independenceandintegrityofthecreditriskassessment,managementandreportingprocessescombinedwithclearpolicies,limitsandapprovalstructures.Standardproceduresspecifictobusinessesaresetuptomanagevariousrisksacrossdifferentbusinesssegments,productsandportfolios.
Thecreditpolicyfocusesonthecorecreditprinciplesanddetails,specificpolicyguidelines,lendingparameters,controlandmonitoringrequirements,problemloanidentification,managementofhighriskcustomersandprovisioning.
Credit facilities are grantedbasedon thedetailed credit risk assessment of thecounterparty.Theassessmentconsidersamongstotherthingsthepurposeofthefacility, sourcesof re-payment, prevailingandpotentialmacro-economic factors,industrytrends,customers’creditworthinessandstandingwithintheindustry.Thecredit facility administration process is undertaken by an independent functionto ensure proper execution of all credit approvals,maintenance, lodgment ofdocumentationandproactivecontrolsovermaturities,expiryoflimitsandcollaterals.
Operationsaremanagedbyindependentunitsresponsibleforprocessingtransactionsinlinewithcreditapprovalsandstandardoperatingguidelines.
Theinternalratingmodelsmeasurecounterpartyrisk(expressedasaprobabilityofdefaultwithinoneyear).TheriskoncounterpartyexposureonmarkettransactionsismeasuredbytheguidanceprovidedbytheRBI.
TheBankhasawell-definedprocessforidentificationofweakercreditriskexposures[classifiedasEarlyAlert(EA),WatchList(WL)&Non-Performing(NPA)Accounts]anddealingwiththemeffectively.TherearepolicieswhichgoverncreditgradingofEA,WL&NPAsaswellasinterestsuspensionandprovisioning,inlinewithRBIguidelines.ExposuresareclassifiedasNPAs(sub-standard,doubtfulorloss)inlinewithRBIguidelinesattheearlierofassessmentofinabilitytorepayorwheninterestorloaninstalments,overdraftsandbillsareoverdue,outoforderorremainunpaidrespectivelyfor90days.
Thereare internalcapson investmentexposures,exposuretosensitivesectors,exposuretosingleobligorsandgroups.Therearealsospecificcontrolsonexposuresto banks and financial institutions, designed to ensure against excessive riskconcentration.ThereisaspecializedandcentralizeddepartmentattheGroupHeadOfficeformanagingfinancialinstitutions.
Quantitative Disclosuresa) Totalgrosscreditriskexposure
(Rs.’000s)
Particulars Fund Based(Note 1)
Non Fund Based(Note 2) Total
Asat31March2019 8,892,205 5,630,892 14,523,097
1. TheaboveamountsrepresentGrossAdvancesbeforecreditriskmitigants.
2. NonfundbasedexposuresexcludesexposurespertainingtoFXandDerivatives.
b) Geographicdistributionofexposures(Rs.’000s)
ParticularsAs at 31 March 2019
Fund Based Non Fund Based Total
Overseas - - -
Domestic 8,892,205 5,630,892 14,523,097
Total 8,892,205 5,630,892 14,523,097c) Industrytypedistributionofexposures
(Rs.’000s)
IndustryAs at 31 March 2019
Fund Based Non Fund Based Total
Drugs&Pharmaceuticals 500,000 454,942 954,942
OtherChemical&ChemicalProducts
772,841 - 772,841
GemsandJewelry 645,499 - 645,499
OtherIndustries 410,584 813,260 1,223,844
ResiduaryOthers* 6,563,281 4,362,690 10,925,971
Total 8,892,205 5,630,892 14,523,097*ExposuretoResiduaryOtherscomprisesofexposurestoServicessector.
d) Residualcontractualmaturitybreakdownofassets(Rs.’000s)
As at 31 March 2019
1 day 395,675
2-7days 5,303,112
8-14days 141,516
15-30days 1,978,110
31daysandupto2months 3,155,054
over2monthsandupto3months 1,836,209
Over3Monthsandupto6months 1,897,861
Over6Monthsandupto1year 1,154,597
Over1Yearandupto3years 925,503
Over3Yearsandupto5years 5,317
Over5years 610,573
Total 17,403,527e) AmountofNPAs(Gross)–Nil
f) NetNPAs-Nil
g) NPARatios
GrossNPAstogrossadvances-0.00%
NetNPAstonetadvances-0.00%
h) MovementofNPAs (Rs.’000s)
Particulars Gross NPAs Provision Net NPAOpeningbalance - - -Additions - - -Reduction(includingwritebacks/writeoffs) - - -Closingbalance - - -
20
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
i) Nonperforminginvestments–Nilj) Provisionsheldfornon-performinginvestments–Nilk) Movementofprovisionsfordepreciationoninvestments
(Rs.’000s)
Particulars 2018-19
OpeningBalanceatbeginningoftheyear 7,260
Add:Provisionsmadeduringtheyear -
Less:Write-off/write-backofexcessprovisionsduringtheyear 7,260
ClosingBalanceatendoftheyear -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 –BrickworksRatings IndiaPvt Ltd,CreditAnalysisandResearchLtd,CRISILLtd,ICRALtd,IndiaRatingsandResearchLtd,SMERatingAgencyofIndiaLtd,whileratingsfrominternationalratingagencies-Fitch,Moody’sandStandard&Poor’s–areconsideredforassigningriskweightsforexposurestointernationalbanksandnon-residententities.Amountoutstandingundervariousriskbuckets: Rs.’000s
Particulars As at 31 March 2019
Below100%riskweight 11,360,766
100%riskweight 5,302,432
Morethan100%riskweight 165,566
Deducted -
Total ** 16,828,764
**TheamountoutstandingundervariousriskbucketsexcludesexposurestoQCCPandarepriortocreditriskmitigants.DerivativeexposuresarecomputedusingCurrentExposureMethod(CEM).
DF 5. Credit risk mitigation: disclosures for standardised approaches:Qualitative DisclosuresCollateralsandguaranteesareeffectivelyusedasmitigatingtoolsbytheBank.ThequalityofcollateraliscontinuouslymonitoredandassessedandtheBankseekstoensureenforceabilityofthecollateral.Majorcategoriesofcollateralsincludelienovercash/fixeddeposits,pledgeover securities, guarantees (corporate, bank andpersonal guarantees),mortgageoverimmovableproperties,hypothecationofcurrentassets,includingreceivablesandinventory,andvehicles.CollateralsarerevaluedregularlyaspertheGroup’screditpolicy.Inaddition,adhocvaluationsarealsocarriedoutdependingonthenatureofcollateralandgeneraleconomiccondition.ThisenablestheBanktoassessthefairmarketvalueofthecollateralandensurethatrisksareappropriatelycovered.Securitystructuresandlegalcovenantsarealsosubjecttoregularreview.
Eligible collateral formitigation isasperRBIguidelines–cash,government securities,KisanVikasPatraandNationalSavingsCertificates,lifeinsurancepolicies,liquid/rateddebtsecurities,andmutualfundunits.
Quantitative Disclosures:AsonMarch31,2019,thetotalexposurecoveredbyeligiblefinancialcollateralwasNil.
DF 6. Securitisation: disclosure for standardised approachTheBank has not undertaken any securitization transactions and does not have anysecuritizationexposures.
DF 7. Market risk in trading bookQualitative DisclosuresMarket risk is therisk that thevalueoffinancial instruments in theBank’sbooks–withtheinclusionofsomeotherfinancialassetsandliabilities-willproducealossbecauseofchangesinfuturemarketconditions.TheBanktakesonrisksinthepursuitofitsstrategicandbusinessobjectives.TheBankmonitorsandmanagesthefollowingcategoriesofmarketrisk:
• InterestRateRisk:lossesinvalueduetochangesinthelevel,slopeandcurvatureofyieldcurves,thevolatilityofinterestratesandchangesincreditspreads;
• FXRisk:lossesinvalueduetoexposurestochangesinspotprices,forwardpricesandvolatilitiesofcurrencyrates.
TheBank’sriskexposurestomarketriskaresegregatedintoTradingandBankingBooks.TheTradingBookincludethosefinancialinstrumentsheldwithtradingintentarisingfrommarket-making,position-takingandothersodesignatedfinancial instrumentsaccountedforat fairvaluedaily.Capitalcharge formarket riskexposures in theTradingBookareconsideredundertheStandardisedDurationApproach.
Market Risk Oversight and Management Process
Aspartoftheenterprise-wideriskmanagementframework,agovernanceprocessisappliedtothemarketrisktakingactivitieswhichincludes,interalia:
• risk limitswith appropriatemonitoring, reporting and limits excesses’ escalationprocedures;
• independentvaluationoffinancialinstrumentsintheTradingBookandmeasurementofmarketrisk;
• acomprehensivesetofpolicies,proceduresandlimits;and
• monitoringawiderangeofriskmetricsappropriatefortherespectivetradingactivities-suchasrisksensitivities,NetOpenPositionsandValue-at-Risk(VaR).
Experienced portfoliomanagers are accountable formanagingmarket riskwithin theapprovedlimits.TheBankusesappropriateandindependentlyvalidatedmarketstandardmodelsfortherevaluationandriskmeasurementofitslinearfinancialproductsandreceivesregularmarket informationfromindependentmarketdataproviders inorder tomeasureandmonitormarketrisk.
Value-at-Risk(VaR)iscalculateddaily,currentlyforFXandinduecourseforrates,usingthefollowingparameters
• Statisticallevelofconfidence:99%;
• Holdingperiod:1businessday;
• Methodology:FullRevaluation,HistoricalSimulationusingover2yearsofhistoricalmarket data.
Quantitative DisclosuresCapital requirements for market risk: Rs.’000s
Standardised duration approach As at 31 March 2019
Interestraterisk 96,537
Foreignexchangerisk 102,233
Equityrisk -
Capitalrequirementsformarketrisk 198,770
DF 8. Operational risk:
Qualitative disclosures
Operationalriskisdefinedastheriskoflossesresultingfrominadequateorfailedinternalprocesses,peopleandsystems,orfromexternalevents.TheBank’sobjectiveistopreventmajoroperationalrisklossesandtoprotecttheBankagainstanymaterialdamage.
TheBankusestheBasicIndicatorApproachtoestimateoperationalriskRWAsandcapitalrequirements.Aframeworkforpro-activelymanagingoperationalriskhasbeenestablished.TheBankhasaholisticapproachtosystematicallyidentify,assessandmanageoperationalrisksacrossdifferentproducts,processesandclientsegments.Keytools/methodologiesforthemanagementofoperationalriskinclude:
• operationalriskandcontrolassessments;
• settingandmonitoringofkeyriskindicators;
• reportingandremediationofoperationalriskincidents;
• issuesandactiontracking;and
• newproductandprocessapprovals.
Acomprehensiveinformationsecurityframeworkhasbeenimplementedtosafeguarddataandsystems.Requisitepoliciesandprocessesareinplacetoreportandmonitorfraud.TheBankobtainscomprehensiveandtailoredinsurancecovertoprotecttheBankagainstunexpectedandsubstantialunforeseeablelosses.
BusinessContinuityManagementisdefinedasaholisticmanagementprocessthatidentifiespotential threats to an organisation and the impacts to business operations that thosethreats,ifrealised,mightcauseandwhichprovidesaframeworkforbuildingorganisationalresiliencewiththecapabilityforaneffectiveresponsethatsafeguardstheinterestsofitskeystakeholders,reputation,brandandvalue-creatingactivities.ThebusinesscontinuityprocessacrosstheGroupisbasedontheinternationalstandardISO22301:2012(E).TheBankhasdevelopedabusinesscontinuityplanandthealternatesiteisnowoperationalandhasbeenrecentlytested.
DF 9. Interest Rate Risk in the Banking Book (IRRBB)
InterestRateRiskintheBankingBook(‘IRRBB’)isdefinedastheexposureofthenon-tradingproductsoftheBanktointerestrates.Non-tradingportfoliosincludeallbankingbookpositionsthatarisefromtheinterestrateontheBank’sconsumerandcommercialbankingassetsandliabilities,andfinancialinvestmentsdesignatedasheldtomaturity.IRRBBarisesprincipallyfrommismatchesbetweenthefutureyieldsonassetsandtheirfundingcosts,asaresultofinterestratechanges.
Inordertomanagethisriskoptimally,IRRBBistransferredtoGroupMarkets&Treasury(GM&T)underthesupervisionoftheALCO.ALCOisrequiredtoregularlymonitorallsuchinterestrateriskpositionstoensuretheycomplywithinterestraterisklimits.
Formeasuringoverallinterestsensitivityinthebankingbook,theBankconsidersgapsininterestratesensitiveassetsandliabilitiesinvariousbucketsaswellastheimpactonMarketValueofEquityonamonthlybasis.
Quantitative Disclosures
AsrequiredunderPillarIIInorms,theincrease/declineinearningsandeconomicvalueforanupward/downwardrateshockof200basispointsason31March2019,brokendownbycurrencyisasfollows:
21
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
EarningsPerspective (Rs.‘000s)
CurrencyInterest Rate Shock
2% Increase 2% Decrease
Rupeesandothermajorcurrencies 25,275 (25,275)
USDollar 2,830 (2,830)
EconomicValuePerspective (Rs.‘000s)
CurrencyInterest rate shock
2% increase 2% decrease
Rupeesandothermajorcurrencies 2,597 (2,597)
USDollar 3,246 (3,246)
DF 10. General Disclosure for exposures related to Counterparty Credit RiskQualitative disclosuresCounterpartyCreditRisk(CCR)istheriskthatthepersonorinstitutionwithwhomtheBankhasenteredintoafinancialmarketcontract–whoisacounterpartytothecontract–couldeitherdefaultordeteriorateincreditworthinessleadingtoafailuretoperformonitscontractualobligations,causinglossestotheBank.
Thefuturemarketvalueoftheexposureandthecounterparty’screditqualityareuncertainandmayvaryovertimeasunderlyingmarketvariableschange.CCRisamultidimensionalformof risk,affectedbyboth theexposure tocounterpartyand thecreditqualityof thecounterparty,bothofwhicharesensitivetomarket-inducedchanges.
Forlocalregulatoryandcapitalpurposes,thecreditequivalentamountofamarketrelatedoff-balancesheettransactioniscalculatedusingthecurrentexposuremethodwhichisthesumofcurrentcreditexposure(positivemark-to-market)andpotentialfuturecreditexposure(determinedbymultiplyingthenotionalprincipalamountbytherelevantadd-onfactor).
SettlementRiskariseswhentheGroup,actingasaprincipal,exchangessecuritiesorcashpaymentstoacounterpartyonavaluedateandisunabletoverifythatpaymentorsecuritieshavebeenreceivedinexchangeuntilafterithaspaidordelivereditssideoftransaction.
Counter-partycreditriskexposuresarerequiredtobeassessedandlimitsaretobeapprovedaspartoftheusualcreditsubmissionandapprovalprocess.
WrongWayRisk(WWR)ariseswhenthereisadverse(positive)correlationbetweenaclient’screditworthiness(probabilityofdefault)andtheBank’screditexposuretothatclient.WWRisgenerallydiscouragedandisrequiredtobeidentifiedandspecificapprovalobtained.
Quantitative disclosuresTheoutstandingbalanceason31March2019andthederivativeexposurecalculatedusingCurrentExposureMethod(CEM)isprovidedbelow (Rs.’000s)
Particulars Notional Amounts Current Exposure
ForeignExchangecontracts 206,338 4,127
InterestRateSwaps - -
CrossCurrencySwaps - -
Total 206,338 4,127
DF 11. Composition of capital (Rs.in‘000s)
ParticularsAmount Amounts
Subject to Pre-Basel III Treatment
Ref No.
Common Equity Tier 1 capital: instruments and reserves
1 Directlyissuedqualifyingcommonsharecapitalplusrelatedstocksurplus(sharepremium)(FundsfromHeadOffice)
6,843,818 - a
2 Retainedearnings 16,555 - b
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
6,860,373 - a + b
ParticularsAmount Amounts
Subject to Pre-Basel III Treatment
Ref No.
Common Equity Tier 1 capital : regulatory adjustments
7 Prudentialvaluationadjustments - -
8 Goodwill(netofrelatedtaxliability) - -
9 Intangiblesotherthanmortgage-servicingrights(netofrelatedtaxliability)
432,147 - e+g
10 Deferredtaxassets 3,651 - h
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(amountabove 10%threshold)
- -
21 DeferredtaxassetsarisingfromtemporaryDifferences(amountabove10%threshold,netofrelatedtaxliability)
- -
22 Amountexceedingthe15%threshold - -
23 ofwhich:significantinvestmentsinthecommonstockoffinancialentities
- -
24 ofwhich:mortgageservicingrights - -
25 ofwhich:deferredtaxassetsarisingfromtemporarydifferences
- -
26 Nationalspecificregulatory adjustments(26a+26b+26c)
- -
26a ofwhich:Investmentsintheequitycapitalofunconsolidatednon-financialsubsidiaries
- -
26b ofwhich:Shortfallintheequitycapitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththe bank
- -
26c ofwhich:Unamortizedpensionfundsexpenditures
- -
Regulatory AdjustmentsAppliedtoCommonEquityTier1inrespectofAmountsSubjecttoPre-BaselIIITreatment
ofwhich:HODebitBalance
22
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
ParticularsAmount Amounts
Subject to Pre-Basel III Treatment
Ref No.
27 RegulatoryadjustmentsappliedtoCommonEquityTier1duetoinsufficientAdditionalTier1andTier2tocoverdeductions
- -
28 Total regulatory adjustments to Common equity Tier 1
435,798 - e+g+h
29 Common Equity Tier 1 capital (CET1) 6,424,575 -
Additional Tier 1 capital : instruments
30 DirectlyissuedqualifyingAdditionalTier1instrumentsplusrelatedstocksurplus(sharepremium)(31+32)
- -
31 ofwhich:classifiedasequityunderapplicableaccountingstandards(PerpetualNon-CumulativePreferenceShares)
- -
32 ofwhich:classifiedasliabilitiesunderapplicableaccountingstandards(PerpetualdebtInstruments)
- -
33 DirectlyissuedcapitalinstrumentssubjecttophaseoutfromAdditionalTier1
- -
34 AdditionalTier1instruments(andCET1instrumentsnot includedinrow5)issuedbysubsidiariesandheldbythirdparties(amountallowedingroupAT1)
- -
35 ofwhich:instrumentsissuedbysubsidiariessubjecttophaseout
- -
36 Additional Tier 1 capital before regulatory adjustments
- -
Additional Tier 1 capital: regulatory adjustments
37 InvestmentsinownAdditionalTier1instruments
- -
38 Reciprocalcross-holdingsinAdditionalTier1instruments
- -
39 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedcommonsharecapitaloftheentity(amountabove10%threshold)
- -
40 Significantinvestmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation(netofeligibleshortpositions)
- -
41 Nationalspecificregulatory adjustments(41a+41b)
- -
41a InvestmentsintheAdditionalTier1capitalofunconsolidatedinsurancesubsidiaries
- -
41b ShortfallintheAdditionalTier1capitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththebank
RegulatoryAdjustmentsAppliedtoAdditionalTier1inrespectofAmountsSubjecttoPre-BaselIIITreatment
ofwhich:… - -
42 RegulatoryadjustmentsappliedtoAdditionalTier1duetoinsufficientTier2tocoverdeductions
- -
ParticularsAmount Amounts
Subject to Pre-Basel III Treatment
Ref No.
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)
6,424,575 -
Tier 2 capital : instruments and provisions
46 DirectlyissuedqualifyingTier2instrumentsplusrelatedstocksurplus
- -
47 DirectlyissuedcapitalinstrumentssubjecttophaseoutfromTier2
- -
48 Tier2instruments(andCET1andAT1instrumentsnotincludedinrows5or34)issuedbysubsidiariesandheldbythirdparties(amountallowedingroupTier2)
- -
49 ofwhich:instrumentsissuedbysubsidiariessubjecttophaseout
- -
50 Provisions(PleaserefertoNotetoTemplatePoint50)
70,038 - c+d+f
51 Tier 2 capital before regulatory adjustments
70,038 -
Tier 2 capital: regulatory adjustments
52 InvestmentsinownTier2instruments - -
53 Reciprocalcross-holdingsinTier2instruments
- -
54 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedcommonsharecapitaloftheentity(amountabovethe10%threshold)
- -
55 Significantinvestments13inthecapitalbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation(netofeligibleshortpositions)
- -
56 Nationalspecificregulatoryadjustments(56a+56b)
- -
56a ofwhich:InvestmentsintheTier2capitalofunconsolidatedinsurancesubsidiaries
- -
ofwhich:ShortfallintheTier2capitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththe bank
- -
56b RegulatoryAdjustmentsAppliedToTier2inrespectofAmountsSubjecttoPre-BaselIIITreatment
ofwhich:InvestmentinSubsidiaries - -
57 Total regulatory adjustments to Tier 2 capital
- -
58 Tier 2 capital (T2) 70,038 -
58a Tier 2 capital reckoned for capital adequacy
70,038 -
58b Excess Additional Tier 1 capital reckoned as Tier 2 capital
- -
58c Total Tier 2 capital admissible for capital adequacy (58a + 58b)
70,038 -
23
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
ParticularsAmount Amounts
Subject to Pre-Basel III Treatment
Ref No.
59 Total capital (TC = T1 + Admissible T2) (45 + 58c)
6,494,613 -
RiskWeightedAssetsin respectofAmountsSubjecttoPre-BaselIIITreatment
-
ofwhich:… - -
60 Total risk weighted assets (60a + 60b + 60c)
10,297,264 -
60a ofwhich:totalcreditriskweightedassets
7,875,605 -
60b ofwhich:totalmarketriskweightedassets
1,827,766 -
60c ofwhich:totaloperationalriskweightedassets
593,893 -
Capital ratios
61 CommonEquityTier1(asapercentageofriskweightedassets)
62.39% -
62 Tier1(asapercentageofriskweightedassets)
62.39% -
63 Totalcapital(asapercentageofriskweightedassets)
63.07% -
64 Institutionspecificbufferrequirement(minimumCET1requirementpluscapitalconservationandcountercyclicalbufferrequirements,expressedasapercentageofriskweightedassets)
1.875% -
65 ofwhichcapitalconservationbufferrequirement
1.875% -
66 ofwhich:bankspecificcountercyclical bufferrequirement
- -
67 ofwhich:G-SIBbufferrequirement - -
68 CommonEquityTier1availabletomeetbuffers(asapercentageofriskweightedassets)
56.89% -
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 Deferredtaxassetsarisingfromtemporary differences(netofrelatedtaxliability)
- -
Applicable caps on the inclusion of provisions in Tier 2
76 ProvisionseligibleforinclusioninTier2inrespectofexposuressubjecttostandardisedapproach(priortoapplicationofcap)
70,038 -
ParticularsAmount Amounts
Subject to Pre-Basel III Treatment
Ref No.
77 CaponinclusionofprovisionsinTier2understandardisedapproach
98,445 -
78 ProvisionseligibleforinclusioninTier2inrespectofexposuressubjecttointernalratings-basedapproach(priortoapplicationofcap)
- -
79 CapforinclusionofprovisionsinTier2under internalratings-basedapproach
- -
Capital instruments subject to phase-out arrangements (only applicable between March 31, 2017 and March 31, 2022)
80 CurrentcaponCET1instrumentssubjecttophaseoutarrangements
- -
81 AmountexcludedfromCET1duetocap(excessovercapafterredemptionsandmaturities)
- -
82 CurrentcaponAT1instrumentssubjecttophaseoutarrangements
- -
83 AmountexcludedfromAT1duetocap(excessovercapafterredemptionsandmaturities)
- -
84 CurrentcaponT2instrumentssubjecttophaseoutarrangements
- -
85 AmountexcludedfromT2duetocap(excessovercapafterredemptionsandmaturities)
- -
NotetothetemplateRow No. of the template Rs.in‘000
Deferredtaxassetsassociatedwithaccumulatedlosses -
10 Deferredtaxassets(excludingthoseassociatedwithaccumulatedlosses)netofDeferredtaxliability
3,651
Totalasindicatedinrow10 3,651
Ifinvestmentsininsurancesubsidiariesarenotdeductedfullyfromcapitalandinsteadconsideredunder10%thresholdfordeduction,theresultant
-
19 increaseinthecapitalofbank -
ofwhich:IncreaseinCommonEquityTier1capital
ofwhich:IncreaseinAdditionalTier1capital -
ofwhich:IncreaseinTier2capital -
26b Ifinvestmentsintheequitycapitalofunconsolidatednon-financialsubsidiariesarenotdeductedandhence,riskweightedthen:
-
(i) IncreaseinCommonEquityTier1capital -
(ii) Increaseinriskweightedassets -
ExcessAdditionalTier1capitalnotreckonedforcapitaladequacy
-
(differencebetweenAdditionalTier1capitalasreportedinrow44andadmissibleAdditionalTier1capitalasreportedin44a)
44a ofwhich:ExcessAdditionalTier1capitalwhichisconsideredasTier2capitalunderrow58b
-
EligibleProvisionsincludedinTier2capital 70,038
50 EligibleRevaluationReservesincludedinTier2capital -
Totalofrow50 70,038
58a ExcessTier2capitalnotreckonedforcapitaladequacy(differencebetweenTier2capitalasreportedinrow58andT2asreportedin58a)
-
24
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Table DF-12 : Composition of Capital- Reconciliation requirements :
Rs.in‘000
Particulars
Balance sheet as in published
financial statements Reference
As at 31.03.2019
Capital & Liabilities
Paid-upCapital(fundsfromHO) 6,861,976
Ofwhich:amounteligibleforCET1 6,843,818 a
i. Reserves&Surplus (105,490)
MinorityInterest
Ofwhich:StatutoryReserve 16,555 b
Ofwhich:InvestmentFluctuationReserve 25,000 c
Ofwhich:InvestmentReserve 5,445 d
Ofwhich:AccumulatedLossesofPreviousYear
(171,707) e
Ofwhich:balanceinP/LforCurrentYear 19,217
TotalCapital 6,756,486
Deposits 5,047,982
ii. ofwhich:Depositsfrombanks 1,501,532
ofwhich:Customerdeposits 3,546,450
ofwhich:Otherdeposits(pl.specify) -
A Borrowings 5,314,530
ofwhich:FromRBI 630,000
iii. ofwhich:Frombanks -
ofwhich:Fromotherinstitutions&agencies
2,929,688
ofwhich:Others(pl.specify)(Borrowings 1,754,842
outsideIndia)ofwhich:Capitalinstruments
iv. Otherliabilities&provisions 284,529
ofwhich:ProvisionforStandardAdvances&CountryRisk
39,593 f
Total 17,403,527
Assets
CashandbalanceswithReserveBankofIndia
244,100
i. Balancewithbanksandmoneyatcalland 955,429
shortnotice
Investments: 6,585,623
ofwhich:Governmentsecurities 2,386,302
ii. ofwhich:Otherapprovedsecurities -
ofwhich:Shares
B ofwhich:Debentures&Bonds -
ofwhich:Subsidiaries/JointVentures/Associates
-
ofwhich:Others(CommercialPapers, 1,542,220
Rs.in‘000
Particulars
Balance sheet as in published
financial statements Reference
As at 31.03.2019
MutualFundsetc.)
Loansandadvances 8,892,205
iii. ofwhich:Loansandadvancestobanks -
ofwhich:Loansandadvancestocustomers
8,892,205
iv. Fixedassets 359,227
ofwhich:ComputerSoftware 260,440 g
Otherassets 366,943
v. ofwhich:Goodwillandintangibleassets -
ofwhich:Deferredtaxassets 3,651 h
vi. Goodwillonconsolidation -
vii. DebitbalanceinProfit&Lossaccount -
TotalAssets 17,403,527
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
8 Amountrecognizedintheregulatorycapital(RsthousandasofMarch31,2019)
6,843,818
9 Parvalueofinstrument NotApplicable
10 Accountingclassification Shareholders’equity
11 Originaldateofissuance Atvarioustimessinceinception
12 PerpetualorDated Perpetual
13 OriginalMaturitydate Nomaturity
14 Issuercallsubjecttopriorsupervisoryapproval No
15 Optionalcalldate,contingentcalldatesandredemption amount
NotApplicable
16 Subsequentcalldates,ifapplicable NotApplicable
Coupons/Dividends
17 FixedorFloatingdividend/coupon NotApplicable
18 Couponrateandanyrelatedindex NotApplicable
19 Existenceofadividendstopper NotApplicable
20 Fullydiscretionary,partiallydiscretionaryormandatory
NotApplicable
25
Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)
Item # Particulars Head Office Capital
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,specifyinstrumenttypeconvertible into
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’scompensationpoliciesprimarilycoverstheobjectivesandthebasicprinciplesandstandardsofFinancialStabilityBoard.InaccordancewiththerequirementsoftheRBICircularNo.DBODNo.BC.72/29.67.001/2011-12dated13January2012, theBankhassubmittedadeclarationtoRBIconfirmingtheaforesaidmatter.Accordinglynodisclosureisrequiredtobemadeinthisregard.
DF-16: Equities – Disclosure for Banking Book Positions:Qualitative DisclosuresThebankhasnoinvestmentinEquities
Quantitative DisclosuresTheBookvalueandMarketvalueofquotedandunquotedsecuritiesareasfollows:
(Rs.in000s)
Securities Book Value Market Value
InvestmentinEquities:Quoted - -
InvestmentinEquities:Unquoted - -
DF 17- Summary comparison of accounting assets vs. leverage ratio exposure measure:
Item (Rs. ‘000)
1 Totalconsolidatedassetsasperpublishedfinancialstatements
17,403,527
2 Adjustmentforinvestmentsinbanking,financial,insuranceorcommercialentitiesthatareconsolidatedforaccountingpurposesbutoutsidethescopeofregulatoryconsolidation
-
3 Adjustmentforfiduciaryassetsrecognizedonthebalancesheetpursuanttotheoperativeaccountingframeworkbutexcludedfromtheleverageratioexposuremeasure
-
4 Adjustmentsforderivativefinancialinstruments 61,744
5 Adjustmentforsecuritiesfinancingtransactions(i.e.reposandsimilarsecuredlending)
3,657,639
Item (Rs. ‘000)
6 Adjustmentforoff-balancesheetitems(i.e.conversiontocreditequivalentamountsofoff-balancesheetexposures)
3,215,263
7 Otheradjustments (354,202)
8 Leverage ratio exposure 23,983,971
DF 18. Leverage ratio common disclosure template:
Item (Rs. ‘000)
On-balance sheet exposures
1 On-balancesheetitems(excludingderivativesandSFTs,butincluding collateral)
17,313,416
2 (AssetamountsdeductedindeterminingBaselIIITier1capital)
(264,091)
3 Total on-balance sheet exposures(excludingderivativesandSFTs)(sumoflines1and2)
17,049,325
Derivative exposures
4 Replacementcostassociatedwithallderivativestransactions(i.e.netofeligiblecashvariationmargin)
111
5 Add-onamountsforPFEassociatedwithallderivativestransactions
61,633
6 Gross-upforderivativescollateralprovidedwheredeductedfromthebalancesheetassetspursuanttotheoperativeaccountingframework
-
7 (Deductionsofreceivablesassetsforcashvariationmarginprovidedinderivativestransactions)
-
8 (ExemptedCCPlegofclient-clearedtradeexposures) -
9 Adjustedeffectivenotionalamountofwrittencreditderivatives -
10 (Adjustedeffectivenotionaloffsetsandadd-ondeductionsforwrittencreditderivatives)
-
11 Total derivative exposures (sum of lines 4 to 10) 61,744
Securities financing transaction exposures
12 GrossSFTassets(withnorecognitionofnetting),afteradjustingforsaleaccountingtransactions
3,649,688
13 (NettedamountsofcashpayablesandcashreceivablesofgrossSFTassets)
-
14 CCRexposureforSFTassets 7,951
15 Agenttransactionexposures -
16 Total securities financing transaction exposures(sumoflines12to15)
3,657,639
Other off-balance sheet exposures
17 Off-balancesheetexposureatgrossnotionalamount 5,630,892
18 (Adjustmentsforconversiontocreditequivalentamounts) (2,415,629)
19 Off-balance sheet items (sum of lines 17 and 18) 3,215,263
Capital and total exposures
20 Tier 1 capital 6,424,575
21 Total exposures (sum of lines 3, 11, 16 and 19) 23,983,971
Leverage ratio
22 Basel III leverage ratio 26.79