 

‘Suryoday Small Finance Bank Limited
Annexure 22 - Notes forming part of the Restated Summary Statements
(All amounts are in Indian Rupees in million unless otherwise stated)

13, Contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

[Contingent abilities = December 31,2020] December 31,2019] Marchi, 2020] March 1, 2019] March 31, 2018]
[The Bank is contingenly lable vo TnancialInsutions with respec

securitisation of loans and advances tothe extent of cash collateral and : e332 : 165.96

red enhancemenss

Service ax Habilty 597 508 376 Sar 5

Income tax babii 32.68 Baa) 23.70 26.69 25.88)
Undrawn commitments 299 481 3.66 049 46.85;
Others Tat 678 7a0 6.78) :

 

Description of contingent liabilities

8) Claims against the Bank not acknowledged as debts - taxation
‘The Bank is a party to various taxation matters in respect of which appeals are pending. The Bank expects the outcome ofthe appeals to be favourable based on decisions on similar issues in the
previous years by the appellate authorities, based on the facts ofthe case and taxation laws.

 

>) Claims against the Bank not acknowledged as debts - others
‘The Bank is @ party to various legal proceedings in the normal course of business. The Bank does not expect the outcome of these proceedings to have a material adverse effect on the Bunk’s
financial conditions, results of operations or cash flows.

{Other items for which the Bank is contingently Hable
Primarily includes Provident fund Mabllity

"Also refer Annexure 16

 

ntingentHabilties

14, Provision on Standard Assets

 

Particulars December 31, 2020] December 31,2019] March 31,2020] March 31, 2019] March 31, 2018]
[Provision towards standard assets 139.96 38.49 115.86 73.75 39.70

 

 

15, Break up of "Provisions and Contingencies’ shown under the head ‘Expenditure’ in Profit and Loss Account

‘The following table sets forth, forthe periods indicated, the break-up of provisions and contingencies included in Profit and Loss Account:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pasties December 31, 2020] December 31, 2019] March 31, 2020] March 31, 2019] March 31, 2018]
Provision for deprecation on Investment ir} 15.36 2 z 3)
[Provision towards NPA ( Net off write off) 384.98 461.85 03.88 412.08 500.26
Provision towards Income tax 21.79 510.20 620.08 23.35 107.23
[Deferred Tax Benefit, (169.88) 6.65 (188.30) (200.09) (43.79)
Provision for Standard Assets 24.10 2474 2.11 3405 19.88
[Other provision and contingencies = 755.06 73.45) 72.62 292.16 27.59)
[Total 4317.00 1092.25, 1,950.39 1261.55, 610.05

 

* Since the quarter 4 of FY2020, the COVID-19 pandemic has Impacted most countries, including India. The Government of India initiated a nation-wide lock-down from March 25, 2020 which
Was further extended until May 31, 2020. A gradual and calibrated easing of lock-down measures has started from June 2020. Since the easing of lockdown measures, there has been a gradual
pickup in economic acuity and growth in high Frequency economic indicators i improving. During nine month period ended December 21, 2020, the loan growth was impacted due to lower cred
‘demand and fee income declined due to lower borrowing and investment activity by customers. The slowdown in the economy is expected to result in higher additions to non-performing loans and
increase in provisions.

 

In the current financial year, the Bank made an addtional COVID provision related provision of € 747.20 million and held a total of & 1407.10 milion as at December 2020. This additonal
Provision made by the Bank is more than the requirement as per RBI guidelines dated April 17, 2020.

In order to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses, RBI through its circulars dated
March 27, 2020 and April 17, 2020, permitted banks to grant a moratorium, on the payment of installments and / or interest, falling due between March 1, 2020 and May 31, 2020, to thelr
borrowers classified as standard even if overdue, as on February 29, 2020. This period was extended by RBI till August 31, 2020 through its circular dated May 23, 2020. The Bank accordingly
‘extended the moratorium option to its borrowers in accordance with its Board approved polices. For al such accounts where the moratorium is granted, the asst classification shall remain stand
still during the moratorium petiod (Le. che numberof days past- due shall exelude the moratorium period for the purposes of determining whether an asset i non-performing),

‘The following table ses forth the break-up of benefits extended as per above circular "COVID-19 Regulatory Package - Asset Classification and Provisioning dated April 17, 2020" to overdue
accounts (excluding, NPA) as at February 29, 2020:

 

 

 

 

Particulars December 31, 2020] March 31, 2020]
Gi) Respective amounts in SMAVoverdue categories Tor borrowers as at March 31, 2020, where the moratorium’ deferment 106831 708686
was extended in terms of paragraph 2 and 3 of the circular

i) of the above, Respective amount where asset classification benefits is extended” 7065.51 Tae,
il) Provisions made during the period! year > 108.69)

 

(v) Provisions adjusted during tbe respective accounting periods against slippages and the residual provisions z =
708.69 T0869

 

(v) Residual provisions held at period end™

 

 

 

 

 

T, Outstanding balance as at December 31 2020,
2. Total COVID-19 related provision held at December 31, 2020 8 1407.10 milion (March 31, 2020:8 659,91 milion). The provision made by the Bank was more than the requirement under RBI guidelines

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