 

 

 

 

 

 

 

 

 

 

 

@imillion) | GrossNPA ] (million) | GrossNPA | (million) | Gross NPA
asa asa asa
Percentage Percentage Percentage
of Total of Total of Total
Gross Gross Gross
Advances Advances Advances
Inclusive Finance Loans 543.78 3.41% 270.80 0.99% 675.96 1.86%
Commercial Vehicle Loans - 0.00% 20.76 0.08% 174.38 0.48%
Affordable Housing Loans - 0.00% 6.52 0.02% 19.97 0.06%
Micro Business Loans (T- - 0.00% 2.02 0.01% 19.08 0.05%
Nagar)
Unsecured MSME/SME Loans 20.19 0.13% 134.32 0.49% 40.71 0.11%
Secured Business Loans 0.71 0.00% 60.25 0.22% 79.36 0.22%
Financial Intermediary Group - 0.00% - 0.00% - 0.00%
Loans
Others” 1.01 0.00% 1.53, 0.00% 3.04 0.01%
Gross NPA 565.69 3.54% 496.21 1.81% 1,012.50 2.79%

 

 

 

 

 

 

 

 

* Others includes overdrafts and staff loans.
Our Bank’s provision coverage ratio (including technical write-offs and floating provisions to an extent utilized) ) as of March 31,
2018, 2019 and 2020 and as of December 31, 2019 and 2020, computed as per RBI guidelines, was 48.33%, 75.80%, 84.71%,
84.22% and 89.58%, respectively.

Provisioning and Write-Offs

RBI guidelines on provisioning and write-offs are as follows:

 

Standard asset A general provision on Standard Assets with a minimum of 0.40% is to be made with the exception
of Farm credit to agriculture activities, SME sectors and Individual Housing Loans sanctioned on
or after June 7, 2017 for which a provision of 0.25% will be made, and for residential housing
loans under “teaser” loan category, a provision of 2.00% will be made. For commercial real estate
loans and commercial real estate loans for residential housing sector, provision will be made at
1.00% and 0.75% respectively. For restructured standard assets and DCCO extension beyond
stipulated maximum for infrastructure and non-infrastructure projects, provision is held at 5%. A
Restructured NPA account upgraded to standard category attracts a provision of 5% in the first
year from the date of upgrade.

Sub-standard asset A general provision of 15.00% on total outstanding loans should be made without making any
allowance for Export Credit Guarantee Corporation of India (ECGC) guarantee cover and
securities available. The unsecured outstanding which are identified as sub-standard would attract
an additional provision of 10.00% (i.e. a total of 25.00% on the outstanding balance). However, in
case escrow accounts available in respect of infrastructure lending, infrastructure loan accounts
which are classified as sub-standard will attract a provisioning of 20% instead of the aforesaid
prescription of 25%.

 

Unsecured outstanding is defined as an outstanding where the realizable value of security, as
assessed by the bank, the approved values and the RBI’s inspecting officers, is not more than
10.00%, ab-initio, of the outstanding. Security will mean tangible security properly discharged to
the bank and will not include intangible securities such as guarantees and comfort letters.

 

Doubtful asset Provisioning at 100.00% is to be made for the deficit portion i.e. to the extent to which advances
are not covered by the realizable value of the security to which our Bank has a valid recourse and
the realizable value is estimated on a realistic basis. With regard to the secured portion, as per the
guidelines of the RBI, provision is to be made at rates ranging from 25.00% to 100.00% of the
secured portion depending upon the period for which the advance has remained in the doubtful
category. In regard to the secured portion, provision is to be made in accordance with the table

 

 

 

 

 

 

 

 

 

below:
Provision
Period for which advance remained in “Doubtful” category requirement (%)
Up to one year 25.00%
One to three years 40.00%
More than three years 100.00%
Loss asset The entire asset is written off or 100.0% provision is made on outstanding amount.

 

See “Key Regulations and Policies” beginning on page 163 of the Draft Red Herring Prospectus.

235
