14. Provisions, Contingencies and Contingent
assets:
14.1 In conformity with AS 29, “Provisions,
Contingent Liabilities and Contingent
Assets”, issued by the Institute of Chartered
Accountants of India, the Bank recognises
provisions only when it has a present obligation
as a result of a past event, and would result
in a probable outflow of resources embodying
economic benefits will be required to settle the
obligation, and when a reliable estimate of the
amount of the obligation can be made.
14.2 No provision is recognised for:
a) any possible obligation that arises from past
events and the existence of which will be
confirmed only by the occurrence or non¬
occurrence of one or more uncertain future
events not wholly within the control of the Bank;
or
b) any present obligation that arises from past
events but is not recognised because:
i. it is not probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation; or
ii. a reliable estimate of the amount of
obligation cannot be made.
Such obligations are recorded as contingent
liabilities. These are assessed at regular intervals
and only that part of the obligation for which an
outflow of resources embodying economic benefits
is probable, is provided for, except in the extremely
rare circumstances where no reliable estimate can
be made.
14.3 Provision for reward points in relation to the
debit card holders of the Bank is made on
estimated basis.
14.4Contingent assets are neither recognised nor
disclosed in the Financial Statements.
15 Special Reserves:
Revenue and other Reserve include Special Reserve
created under Section 36(i)(viii) of the Income Tax
Act, 1961. The Board of Directors of the Bank
has passed a resolution approving creation of the
reserve and confirming that it has no intention to
make withdrawal from the Special Reserve.
16 Segment Reporting
The Bank recognises the business segment as
the primary reporting segment and geographical
segment as the secondary reporting segment
in accordance with the RBI guidelines and in
compliance with the Accounting Standard 17 -
“Segment Reporting” issued by The Institute of
Chartered Accountants of India.
17 Earnings per Share:
a) The Bank reports basic and diluted earnings
per share in accordance with AS 20 - “Earnings
per Share” issued by the Institute of Chartered
Accountants of India. Basic Earnings per Share
is computed by dividing the Net Profit after Tax
for the year attributable to equity shareholders
by the weighted average number of equity shares
outstanding during the year.
b) Diluted earnings per share reflect the potential
dilution that could occur if securities or other
contracts to issue equity shares were exercised
or converted during the year. Diluted earnings per
equity share is calculated by using the weighted
average number of equity shares and dilutive
potential equity shares outstanding during the year.
The average LCR for the quarter ended March 31, 2025, was at 194.89% as against 205.09% for the quarter
ended March 31, 2024 and well above the regulatory prescribed minimum requirement of 100%. The average HQLA
for the quarter ended March 31, 2025, was '92,665.00 Crore as against '98,005.00 Crore for the quarter ended
March 31,2024.
The average LCR for the year ended March 31,2025, was at 215.75 % as against 223.77% for the year ended March
31,2024.
c) Net Stable Funding ratio (NSFR):
Reserve Bank of India vide its circular no. BR.BPBC.No.106/21.04.098/2017-18 May 17, 2018, had issued guidelines
on “Basel III Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR)”. The guidelines for NSFR were
effective from October 1,2021.
The objective of NSFR is ensure reduction in funding risk over a longer time horizon extending to one year by
requiring banks to fund their activities in relation to the composition of their assets and off-balance sheet activities,
with sufficiently stable sources of funding on an on-going basis. A sustainable funding structure is intended to reduce
the probability of erosion of a bank's liquidity position due to disruptions in the regular sources of funding. NSFR limits
over-reliance on short term wholesale funding, encourages better assessment of funding risk across all on and off-
balance sheet items, and promotes funding stability.
The NSFR is defined as the amount of available stable funding relative to the amount of required stable funding.
“Available Stable Funding” (ASF) is defined as the portion of capital and liabilities expected to be reliable over the
time horizon considered by the NSFR, which extends to one year. The amount of stable funding required (“Required
Stable Funding”) (RSF) is a function of the liquidity characteristics and residual maturities of the various assets
held by the Bank as well as those of its off-balance sheet (OBS) exposures. The Available Stable Funding (ASF)
is primarily driven by the total regulatory capital as per Basel III Capital Adequacy guidelines stipulated by RBI
and deposits from retail customers, small business customers and non-financial corporate customers. Under the
Required Stable Funding (RSF), the primary drivers are unencumbered performing loans with residual maturities of
one year or more.
The runoff factors for the stressed scenarios are prescribed by the RBI, for various categories of liabilities (viz.,
deposits, unsecured and secured wholesale borrowings), undrawn commitments, derivative-related exposures, and
offset with inflows emanating from assets maturing within the same period. The minimum NSFR requirement set out
in the RBI guideline is 100%.
The Liquidity Risk Management of the Bank is governed by the Asset Liability Management (ALM) Policy approved by
the Board. The Asset Liability Committee (ALCO) is a decision-making unit responsible for implementing the liquidity
and interest rate risk management strategy of the Bank in line with its risk management objectives and ensures
adherence to the risk tolerance/limits set by the Board.
Central Bank of India on standalone basis maintained Available Stable Funding (ASF) of '3,99,641.65 Crore against
the RSF requirement of '2,83,577.45 Crore as on 31st March 2025. The NSFR for the quarter ended Mar 2025 is at
140.93%.
In view of significant development in global financial reporting standards, the linkages with the capital adequacy framework as
well as progress in the domestic financial marlets, revised regulatory framework for the investment portfolio has been issued
by Reserve Bank of India vide its Master Direction 2023 vide RBI DOR/2023-24/104 DOR.MRG.36/21.04.141/2023-24 dated
12.09.2023.
The corresponding previous year figures related to investment portfolio of the Bank pertaining to Financial Year ended March
31,2025 are not comparable with figures for the Financial Year ended 31st March 2024, since these have not been restated.
As a sequel of that, the income on investments increased by '31,298 lakh, provision for tax is lower by '26,467 lakh due to
reduction in General Reserve by '1,24,395 lakh and increase in AFS Reserve by '48,652 lakh for the Financial Year ended
31st March, 2025.
During the year ended March 31,2024 the value of sales and transfers of securities to/from HTM category (excluding
one-time transfer of securities to/from HTM category with the approval of Board of Directors permitted to be undertaken
by banks at the beginning of the accounting year, sale to RBI under pre-announced Open Market Operation auctions
and repurchase of Government securities by the government of India) had not exceeded 5% of the Book Value of the
Investment held in HTM category at the beginning of the year.
d. Sale and Transfers of Securities To/From AFS/HFT Category
As per the directives of Reserve Bank of India guidelines No RBI/DOR/2023-24/104 DOR.MRG.36/21.04.141/2023-
24 dated 12.09.2023 and our Investment Policy, profit on sale of investments under AFS/HFT category should be first
taken to P&L account and thereafter be appropriated to the Investment Fluctuation reserve Account
Profit on sale/redemption of AFS/HFT securities amounted to '8,66,89,11,921.02 for the Financial Year ended
March 31,2025.
process for the year ended March 31,2025, based on the conditions mentioned in RBI circular No. DOR.ACC.REC.
No.45/21.04.018/2021-22 dated August 30, 2021 (Updated as on April 01, 2025). Pursuant to Reserve Bank of
India Risk Assessment Report (RAR) for the year ended 31st March 2024, all cases of divergence in assets
classification and shortfall in provision, reported their in, have been considered and accounted during the financial
year ended 31st March 2025.
f. Disclosure of Transfer of Loan Accounts (SMAs & NPAs) in terms of RBI Circular No. DOR.STR.REC.51/21.04.048/
2021-22 dated 24th September 2021
At March 31, 2025, the Bank held Government guaranteed SRs amounting to initial Face value of '307.50 crore,
against which a provision of '179.83 crores was held. The Bank has reversed the provision held against such SRs
i.e. '179.83 crores to profit and loss account.
Further, a net unrealized MTM gain of '125.71 crores has been taken to P&L account on account of fair valuation of
Government guaranteed SRs on the basis of Net Asset Value declared by the ARC based on the recovery ratings as
mandated by above RBI guidelines.
g. Fraud Accounts
In terms of RBI circular RBI/2015-16/376/DBR.No.BPBC.92/21.04.048/2015-16 dated 18.04.2016 details of Fraud
and Provision are as below: -
Bank holds full provision as applicable against outstanding balance as on 31.03.2025 in respect of frauds reported
during the year ended 31.03.2025.
iii. Disclosure with respect to accounts kept as standard due to the Court order:
As per directions of RBI vide letter no 10655/21.04.048/2018- 19 dated 21.06.2019 (as amended from time to time)
disclosure with respect to accounts kept as standard due to the Court order, M/s. SEL MANUFACTURING CO LTD
with an Outstanding Balance of '4,52,24,888.79 as on 31.03.2025 is classified as Standard as per Court orders
vide Hon'ble NCLT Chandigarh Bench No. NCLT/No/CHD/REG/4010 dated 18/02/2021, however Bank is holding
provision of '1,13,06,222.20 as per IRAC Norms, including provision for unrealized interest on prudent basis.
iv. Additional Provisions at higher than prescribed rates:
In compliance to the RBI guidelines on Prudential norms on Income Recognition, Asset Classification and Provisioning
pertaining to Advances vide RBI/2023-24/06 DOR.STR.REC.3/21.04.048/2023-24 dated 01.04.2023, Point No.
5.7.2, Bank, after evaluation of various sectors, had changed the sectors considered as Stress for the purview of
additional provision at higher than prescribed rates in Standard Advances in accordance with the Bank's Industry
Outlook “Negative Outlook” Sectors. Accordingly Stressed Sector has been reviewed as under.
Accordingly, Additional Provision at higher than prescribed rates in Standard Advances in Stressed Sector during
March 31st, 2025, is '1.67 Crore ('6.01 Crore as on 31.03.2024)
i. Disclosure with respect to NCLT provisions: -
As per RBI circular No. DBR No. BP15199/21.04.048/2016-17 and DBR No. BP1906/21.04.048/2017-18 dated
June 23, 2017 and August 28, 2017 respectively, for the accounts covered under the provisions of Insolvency and
Bankruptcy Code (IBC), the Bank is holding total provision of '5,781.68 Crore including FITL of '124.61 Crore
as at 31 March 2025 ('5,883.23 Crore for March 31st, 2024 including FITL of '125.00 Crore) i.e. 100 % of total
outstanding including Investment as at March 31st, 2025.
j. Disclosure in respect of Additional Provision to be made as per RBI guidelines on Prudential Framework for Resolution
of Stressed Assets:
RBI vide their circular no. RBI/ 2018-19/ 203 DBR. No.BPBC. 45/21.04.048/2018-19 dated June 7, 2019 on
Prudential Framework for Resolution of Stressed Asset issued guidelines for implementation of Resolution Plan, also
containing requirements of additional provision as per Para 17 of this RBI circular. The outstanding in such cases
as of March 31,2025, is '384.39 Crore ('756.51 Crore for March 31,2024) and in compliance of the above RBI
circular, the Bank has held additional provision of '127.82 Crore as at March 31,2025 ('117.44 Crore for March 31,
2024) and hold total provision of '213.76 Crore ('480.18 Crore for March 31st, 2024) as at March 31st, 2025.
g) Unhedged Foreign Currency exposure:
The Bank has put in place a Board approval policy and process for managing currency induced credit risk. The credit
appraisal memorandum (Executive Brief) prepared at the time of origination and review of a credit facility covers the
required details viz. Total Foreign Exchange exposure, of which hedged position & if un-hedged, how the borrower
plans to cover.
Provision on the un-hedged portion of foreign portion of currency exposures of customers is made on quarterly basis.
As per the Board approval policy, all Advances involving foreign currency lending of USD 1 million or equivalent and
above is mandatory to be hedged unless specially permitted by the competent authorities. However, hedging need
not be insisted in the following cases
• Where Forex loans are extended to finance exports, hedging need not be insisted. However, it should be ensured
that such customers have uncovered receivables to cover the loan amount.
• Where Forex loans are extended for meeting forex expenditure.
• In respect of advances involving foreign currency loans below USD 1 million or equivalent:
• In case of corporates who are rated “A” and above, Competent Authority may permit allowing advances involving
foreign currency loans without insisting on hedging.
• Customers who do not satisfy the conditions stipulated above will be required to provide cash margin, if they prefer
to keep exposure open, to the extent of the forward premium prevailing for the tenor of un-hedged exposure.
Movement of Provision is as under: -
In accordance with RBI guidelines, as of March 31,2025, the amount of bank's credit exposure against un-hedged
Foreign Currency Exposure of borrowers attracting 80 bps provisions was '1,865.56 Crore. The additional RWA on
this exposure is '284.14 Crore against this additional minimum capital requirement is '32.68 Crore.
Based on the available financial statements and the declarations from borrowers, the Bank has estimated the liability
for Un-hedged Foreign Currency in terms of RBI circular RBI/2022-23/131 DOR.MRG.REC.76/00-00-007/2022-23
dated October 11,2022 and is holding a provision of '11.22 Crore as on March 31,2025 (Previous Year '4.28 Crore
as on March 31,2024)
e) Disclosures on risk exposure in derivatives:
i) Qualitative Disclosures
a) The Bank currently deals in over the counter (OTC) interest rate and currency derivatives as also in Interest
Rate Futures and Exchange Traded Currency Derivatives. Interest Rate Derivatives dealt by the Bank are
rupee interest rate swaps and foreign currency interest rate swaps. Currency derivatives dealt by the Bank
are USD/INR currency swaps and cross currency swaps. The products are offered to the Bank's customers
to hedge their exposures, and the Bank also enters into derivatives contracts to cover off such exposures.
Derivatives are used by the Bank both for trading as well as hedging balance sheet items.
b) Derivative transactions carry market risk i.e. the probable loss the Bank may incur because as a result of
adverse movements in interest rates/exchange rates and credit risk i.e. the probable loss the Bank may
incur if the counterparties fail to meet their obligations. The Bank's “Policy for Derivatives” approved by the
Board prescribes the market risk parameters (Greeks limits, Loss Limits, cut-loss triggers, open position
limits, duration, modified duration, PV01 etc.) as well as customer eligibility criteria (credit rating, tenure
of relationship, limits and customer appropriateness and suitability of policy (CAS) etc.) for entering into
derivative transactions. Credit risk is controlled by entering derivative transactions only with counterparties
satisfying the criteria prescribed in the Policy. Appropriate limits are set for the counterparties taking into
account their ability to honor obligations and the Bank enters ISDA agreement with each counterparty.
c) The Asset Liability Management Committee (ALCO) of the Bank oversees efficient management of these
risks. The Bank's Market Risk Management Department (MRMD) identifies, measures, monitors market
risk associated with derivative transactions, assists ALCO in controlling and managing these risks and
reports compliance with policy prescriptions to the Risk Management Committee of the Board (RMCB) at
regular intervals.
d) The accounting policy for derivatives has been drawn-up in accordance with RBI guidelines, the details of
which are presented under Schedule 17: Significant Accounting Policies (SAP) for the financial year 2024¬
25.
e) Interest Rate Swaps are used for hedging of the assets and liabilities. The trading of Interest rate Swaps are
also undertaken by the bank.
f) Majority of the swaps were done with First class counterparty banks.
g) Derivative transactions comprise of swaps which are disclosed as contingent liabilities. The swaps are
categorized as trading or hedging.
h) Derivative deals are entered with only those interbank participants for whom counterparty exposure limits
are sanctioned. Similarly, derivative deals entered with only those corporates for whom credit exposure
limit is sanctioned. Collateral requirements for derivative transactions are laid down as a part of credit
sanctions terms on a case-by-case basis. Such collateral requirements are determined based on usual
credit appraisal process. The Bank retains the right to terminate transactions as a risk mitigation measure
in certain cases.
i) Risk management policy approved by the Board of Directors for the use of derivative instruments to hedge/
trade is in place.
j) Policy for forward rate agreement, interest rate swaps, currency futures and interest rate futures for hedging
the interest rate risk in investment portfolio and also for market making is in place.
k) The risk management policies and major control measures like stop loss limits, counterparty exposure
limits etc. as approved by board of directors are in place.
l) Hedge Positions: Accrual on account of interest expenses/income on the interest rate swap (IRS) are
accounted and recognized as income/expenses.
m) I f the swap is terminated before maturity, mark-to-market (MTM) loss/gain and accrual till such date are
accounted as expenses/income under interest paid/received on IRS.
Note: Keeping in line with para 9 of the AS - 18 - “Related Party Disclosure” issued by ICAI, the transactions with the
Subsidiaries and Associates Enterprises have not been disclosed which exempts the State Controlled Enterprises from
making any disclosures pertaining to transactions with other related State Controlled Enterprises.
Further, transactions in Banker-Customer relationship including those with KMP and relatives of KMP have not been
disclosed in terms of Para 5 of AS-18.
g) Balancing of Books / Reconciliation:
i. The parent Bank is under process of reconciling the outstanding balances/entries in various heads of accounts
included in Inter office adjustment (IBR) account.
The Net balance of IBR account as of March 31, 2025 is '0.26 Crore (Net Credit) and as at 31st March, 2024 is
'87.72 Crore (Net Debit).
The bank maintains 16 Nostro Accounts for 8 different currencies. These nostro accounts are operated by 1'A”
category branch (Integrated Treasury Branch) and 64'B' category branches.
Reconciliation of these nostro accounts is done by Integrated Treasury Branch. Reconciliation is an ongoing process
and is done on daily basis.
Progress Report on reconciliation and outstanding entries in nostro Accounts is placed before Audit Committee of
the board at quarterly intervals.
ii. The reconciliation of the following items is in progress:
- Inter Branch Office Balance
- Inter Bank Accounts & CD Internal Office Accounts
- Suspense Accounts
- Clearing & other Adjustment Accounts
- Certain balances in nominal account
- NOSTRO Accounts
- Balances related to Digital Payment & Transaction Banking Department/ATM Department
- Mirror Accounts maintained by various Department
- Data/System updating of Agricultural and Priority Sector Advances
- GST
-Fixed Asset
- Other Assets
- Other Liabilities
The management is of the opinion that the overall impact, if any, on the accounts will not be significant.
The expected contribution to the Pension and Gratuity fund for the March 2025 is '146.16 Crore and '20.50 Crore
respectively which is to be received in the FY 2025-26.
ii. Defined Contribution Plan:
The bank has a defined contribution pension scheme (DCPS) applicable to all categories of officers and employees
joining bank on or after 01/04/2010. The scheme is managed by NPS trust under the aegis of the Pension Fund
Regulatory and Development Authority. Protean eGov Technologies Ltd (Formerly NSDL e-Governance Infrastructure
Limited) has been appointed as the Central Record Keeping Agency for the NPS. During FY 2024-25, the bank has
contributed '300.26 Crore (Previous year '252.94 Crore).
iii. Employees' Provident Fund: -
During the year bank has recognized expenses of '0.54 Crore and corresponding year '0.77 Crore on account of
employer contribution for the employees covered under PF option Scheme i.e. PF Optees.
d) Accounting Standard 17 -
Segment Reporting
As per the revised guidelines of Reserve Bank of India the Bank has recognized Treasury Operations Corporate/
Wholesale Banking Retail Banking and other Banking business as primary reporting segments. There are no
secondary reporting segments.
Primary (Business Segment)
The following are the primary segments of the Bank: -
- Treasury
- Corporate / Wholesale Banking
- Retail Banking
- Other Banking Business.
The present accounting and information system of the Bank based on the present internal, organizational and
management reporting structure and the nature of their risk and returns, the data on the primary segments have
been computed as under:
i. Treasury -
The Treasury Segment includes the entire investment portfolio and trading in foreign exchange contracts and
derivative contracts. The revenue of the treasury segment primarily consists of fees and gains or losses from trading
operations and interest income on the investment portfolio.
ii. Corporate / Wholesale Banking -
The Corporate / Wholesale Banking segment comprises the lending activities of Corporate Accounts, Trust
/ Partnership Firms Companies and statutory bodies which are not included under Retail Banking and Stressed
Assets Management Branch. These include providing loans and transaction services to corporate and institutional
clients.
iii. Retail Banking -
The Retail Banking Segment comprises of retail branches, which primarily includes Personal Banking activities
including lending activities to corporate customers having banking relations with these branches. The Retail
Banking Segment consists of all exposures up to a limit of '7.50 Crore (including Fund Based and Non-Fund Based
exposures) subject to orientation product granularity criteria and individual exposures. This segment also includes
agency business and ATMs.
iv. Other Banking business -
Segments not classified under (1) to (3) above are classified under this primary segment.
Secondary (Geographical Segment)
1) Domestic Operations - Branches/Offices having operations in India
2) The Bank has only one geographical segment i.e. Domestic Segment.
As per RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022, for disclosure under Accounting
Standard 17, Segment reporting, ‘Digital Banking' has been identified as a sub-segment under Retail Banking by
the Reserve Bank of India (RBI). However, as the proposed Digital Banking Unit (DBU) of the Bank has not yet
commenced operations, hence applicability of the said reporting will be on approval of RBI.
i. The premises of the Bank were revalued to reflect the market value as on 31.03.2024 based on valuation
reports of external independent valuers' and approved by the Board of Directors and '490.00 Crore
('329.98 Crore for Freehold properties and '160.02 Crore during FY 2023-24 for Leasehold properties)
increases in value thereof have been credited to Revaluation Reserve Account.
ii. I n case of assets, which have been revalued, the depreciation is provided on the revalued amount charged
to Profit & Loss Account and the amount of incremental depreciation attributable to the revalued amount
'163.08 Crore for F.Y. 2024-25 up to March 2025 (Previous year '54.87 Crore) is transferred from ‘Revaluation
Reserves' and credited to “Revenue and Other Reserves”.
iii. Land obtained on lease by bank includes market value as on 31.03.2025 is '6.51 Crore (Previous year '6.51
Crore) with written down value of '5.58 Crore (Previous year '6.30 Crore), the lease period of which has
expired, and the bank is still having its offices/building on these lands.
iv. As per AS-19, operating leases primarily comprise office premises and staff residences, which are renewable at
the option of the Bank.
a) Liability for Premises taken on non-cancellable operating lease are 'NIL as on 31.03.2025.
b) Amount of lease payments recognized in the P&L Account for operating leases is '521.53 Crore as on
31.03.2025 (Previous year '454.39 Crore).
v. Additional Disclosure:
The title of property amounting to '37.13 Crore (Revalued value as on Mar-21) acquired on disposal of security
has been got registered by the bank in its favor during the current year 2024-25. As the matter with the borrower
is sub-judice neither the rent received on such property has been accounted for as income nor the property has
revalued after 31.03.2021 to reflect its market value.
Provision for Income Tax for the year is arrived at after due consideration of relevant statutory provisions and judicial
decisions on disputed issues.
i. Section 115BAA in the Income Tax Act 1961 (“Act”) provides a non-reversible option to domestic companies
to pay corporate tax at a reduced rate effective from April 01,2019 subject to certain conditions. The Bank has
assessed the applicability of the Act and opted to continue the existing tax rate (i.e. 34.944%) for the financial
year ended March 31st, 2025.
ii. The Income Tax Appellate Tribunal, ‘Special Bench' Mumbai, vide order dated 06/09/2024 has held that clause
(b) to sub section (2) of section 115JB of the Income-tax Act inserted by Finance Act, 2012 w.e.f. 1-4-2013, that
is, from assessment year 2013-14 onwards, is not applicable to the banks constituted as ‘corresponding new
bank' in terms of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and therefore,
the provision of Section 115JB cannot be applied and consequently, the tax on book profits (MAT) are not
applicable to the banks.
The Income Tax Department has completed the Income Tax Assessment for the Assessment Year (A.Y.) 2023¬
24 vide order u/s 143(3) read with section 144B of the Income Tax Act dated 14/03/2025 where the Income
Tax Department has not accepted the above said judgement of Income Tax Appellate Tribunal, ‘Special Bench'
Mumbai and treated Section 115JB as applicable to the Bank against which Bank has already filed appeal
before appellate authority. As a matter of prudence and considering the above assessment order of A.Y. 2023¬
24, the Bank has continued to make the provision of Minimum Alternative Tax (MAT) u/s 115JB of '447.24
Crore for current year (Previous Year '275.33 Crore). The Bank has also recognized corresponding MAT credit
entitlement ('2,407.02 Crore as on 31.03.2025) as an asset under section 115 JAA of the Income Tax Act,
1961 and the said MAT credit along with interest is receivable/adjusted from/by the Income tax Department. The
said being an interim / part order, execution will take place on award of final order.
Management will continue to contest the applicability of Section 115JB of the Income Tax Act, 1961 before
appropriate authorities.
iii. Keeping in view the significant provisioning requirements and revision in guidelines of Deferred Tax Assets
(DTA) in CET1 calculation by RBI tax review based on management's estimate of possible tax benefits against
timing difference has been carried out and '3,145.57 Crore has been recognized as Deferred Tax Assets as
of 31st March 2025 taking applicable tax rate of 34.944%. Component of deferred tax assets/ liabilities as on
31st March 2025 are as under:
i) Accounting Standard 23 -
Accounting for Investments in associates in consolidated financial Statements Since Investments of the bank in
its Associates are participative in nature and the Bank having the power to exercise significant influence on their
activities, such Investments are recognized in the Consolidated Financial Statements of the Bank. (Previous year:
Since Investments of the bank in its Associates are participative in nature and the Bank having the power to exercise
significant influence on their activities, such Investments are recognized in the Consolidated Financial Statements of
the Bank).
i. Claims against the bank not acknowledged as debt under contingent liabilities (schedule 12) includes '6,519.17
Crore (Previous year '5,964.67 Crore) towards disputed Income Tax liability of the parent Bank. It includes
Income tax appeals at various levels by bank and Income tax department. Provision for disputed amount of
taxation is not considered necessary by the Bank based on various judicial pronouncements and favorable
decisions in Bank's own case. Payments/ adjustments against the said disputed dues are included under Other
Assets (schedule 11). Disputed service tax matter and GST matter as on March 31st, 2025 is '15.16 Crore.
m) Additional Disclosures: -
Implementation of the Guidelines on Information Security Electronic Banking Technology Risk Management and
Cyber Frauds. The bank has formulated policy/procedures as per RBI circular RBI/2010-11/494 DBS.CO.ITC.BC.No.
6/31. 02.008/2010-11 dated April 29, 2011. These policy/procedures are being reviewed by the management of
the bank on periodical basis. The Information Security Management System (ISMS) policy was last reviewed by the
Board of Directors in the meeting held on 20.01.2025.
n) Payment to Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act,
2006: - There has been no reported cases of the delayed payments of the principal amount or interest due to Micro,
Small & Medium Enterprises.
o) With reference to the RBI guidelines DBOD No.BPBC.57/62-88 dated December 31, 1988, Inter-Bank Participation
Certificates (IBPC) Lending has been undertaken by the bank & accordingly, the outstanding as on 31.03.2025 is
'22,00,00,00,000.00 Interest income is therefore '41,58,90,410.00.
p) During the Year ended 31st March, 2025, the Bank has continued the provision of '500 lakh in respect of investment
in Alternate Investment Fund (AIF), made in March 2024, as per RBI circular RBI/2023-24/140 DOR. STR.
REC.85/21.04.048/2023-24 dated 27th March, 2024
q) Disclosure on Acquisition of Stake in Insurance Companies
Pursuant to Regulation 29 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for
Corporate Persons) Regulations, 2016, the Bank was declared the successful bidder for Category I assets and was
issued a Letter of Intent (LOI) on August 20, 2024 by the Resolution Professional in the matter of CIRP of M/s Future
Enterprises Limited.
This pertains to the acquisition of 24.91% shareholding in Future Generali India Insurance Company Limited
(FGIICL), and 25.18% shareholding in Future Generali India Life Insurance Company Limited (FGILICL), earlier
held by Future Enterprises Limited. Bank has paid entire amount of bid of '50800 lakhs for the said acquisition.
Further bank has received all requisite regulatory approvals for the aforementioned acquisition, as detailed below:
Competition Commission of India (CCI) - Approval received on October 15, 2024 Reserve Bank of India (RBI) -
Approval received on November 21,2024, permitting the Bank to participate in the insurance sector through a joint
venture in FGIICL and FGILICL Insurance Regulatory and Development Authority of India (IRDAI) - Approval received
on February 06, 2025 Transfer of said shares in Demat account of the bank will effect upon direction of Hon'ble NCLT,
Mumbai Bench. The matter will be heard on May 07, 2025
r) In preparation of consolidated financial statement in accordance with applicable Accounting Standards issued by the
ICAI, Bank has considered unaudited financials of its RRB's i.e. Uttar Bihar Gramin Bank, Muzaffarpur & Uttar Banga
Kshetriya Gramin Bank, Cooch Behar.
Further as per DFS gazette notification CG-DL-E-07042025-26232 dated 05th April 2025, where Central Government
in consultation with NABARD, Banks and various stake holders has provided amalgamation of RRBs with effect from
May 01,2025.
s) Previous year figures have been re-grouped / re-classified wherever considered necessary to confirm current year's
classification.
VIVEK WAHI M V MURALI KRISHNA MAHENDRA DOHARE
Executive Director Executive Director Executive Director
M. V. RAO
Managing Director & CEO
HARDIK M. SHETH MANORANJAN DASH PRIAVRAT SHARMA S. K. HOTA PRADIP P. KHIMANI
Director Director Director Director Director
For A.R. & CO. For A D B & COMPANY For AMIT RAY & CO. For JAIN PARAS BILALA & CO
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
FR. No. 002744C FR. No. 005593C FR. No. 000483C FR. No. 011046C
(CA ANIL GAUR) (CA SHIKHAR CHAND JAIN) (CA JITENDRA PANDEY) (CA PARAS BILALA)
PARTNER PARTNER PARTNER PARTNER
M. No. 17546 M. No. 074411 M. No. 177655 M. No. 400917
Place: Mumbai
Date: April 28, 2025
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