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AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS
To the Members of YES BANK Limited 1. We have audited the attached balance sheet of YES BANK Limited (‘the Bank’) as at 31 March 2010, and the related proﬁt and loss account and the cash ﬂow statement of the Bank for the year ended on that date, annexed thereto. These ﬁnancial statements are the responsibility of the Bank’s management. Our responsibility is to express our opinion on these ﬁnancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the ﬁnancial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the ﬁnancial statements. An audit also includes assessing the accounting principles used and signiﬁcant estimates made by the management, as well as evaluating the overall ﬁnancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The balance sheet and the proﬁt and loss account have been drawn up in accordance with the provision of Section 29 of the Banking Regulation Act, 1949 read with Section 211 of the Companies Act, 1956. We report thereon as follows: a) b) c) d) e) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory; The transactions of the Bank which have come to our notice have been within the powers of the Bank; In our opinion, proper books of account as required by law have been kept by the Bank in so far as it appears from our examination of those books; The balance sheet, proﬁt and loss account and cash ﬂow statement dealt with by this report are in agreement with the books of account of the Bank; In our opinion, the accompanying balance sheet, proﬁt and loss account and cash ﬂow statement dealt with by this report comply with the Accounting Standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent they are not inconsistent with the accounting policies prescribed by the Reserve Bank of India; As per information and explanation given to us the Central Government has, till date, not prescribed any cess payable under Section 441A of the Companies Act, 1956; On the basis of written representations received from the Directors as on 31 March 2010, and taken on record by the Board of Directors, we report that none of the Directors are disqualiﬁed as on 31 March 2010 from being appointed as a Director under Section 274(1)(g) of the Companies Act, 1956; and In our opinion, and to the best of our information and according to the explanations given to us, the said accounts together with the notes thereon give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 1956 in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India: i. ii. iii. in case of the balance sheet, of the state of the affairs of the Bank as at 31 March 2010; in case of the proﬁt and loss account, of the proﬁt for the year ended on that date; and in case of the cash ﬂow statement, of the cash ﬂows for the year ended on that date. For B S R & Co. Chartered Accountants Akeel Master Partner Membership No: 046768 Firm’s Registration No: 101248W 81
Mumbai 27 April 2010
BALANCE SHEET AS AT MARCH 31, 2010
(Rs. in thousands)
Schedule CAPITAL AND LIABILITIES Capital Reserves and surplus Deposits Borrowings Other liabilities and provisions TOTAL ASSETS Cash and balances with Reserve Bank of India Balances with banks, money at call and short notice Investments Advances Fixed assets Other assets TOTAL Contingent liabilities Bills for collection Signiﬁcant Accounting Policies and Notes to Accounts forming part of ﬁnancial statements As per our report of even date attached For B S R & Co. Chartered Accountants For and on behalf of the Board of Directors YES BANK Limited 12 18 6 7 8 9 10 11
As at March 31, 2010 3,396,673 27,498,830 267,985,666 47,490,761 17,453,177 363,825,107
As at March 31, 2009 2,969,789 13,272,371 161,694,215 37,016,770 14,054,756 229,007,901
1 2 3 4 5
19,953,099 6,779,384 102,099,413 221,931,232 1,154,664 11,907,315 363,825,107 1,057,879,299 1,534,293
12,777,184 6,449,862 71,170,194 124,030,922 1,311,148 13,268,591 229,007,901 657,727,148 1,929,344
Akeel Master Partner Membership No: 046768 Firm’s Registration No: 101248W
Rana Kapoor Managing Director & CEO
Bharat Patel Director
S.L. Kapur Non Executive Chairman
Arun K. Mago Director Mumbai April 27, 2010 82
Rajat Monga Chief Financial Ofﬁcer
Sanjeev Kapoor Company Secretary
YES BANK - THE PROFESSIONALS’ BANK OF INDIA
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2010
(Rs. in thousands)
Schedule I. INCOME Interest earned Other income TOTAL II. EXPENDITURE Interest expended Operating expenses Provisions and contingencies TOTAL III. PROFIT Net proﬁt for the year Proﬁt brought forward TOTAL IV. APPROPRIATIONS Transfer to Capital Reserve Transfer to Statutory Reserve Transfer to Investment Reserve Proposed Dividend Tax (including cess) on Dividend Balance carried over to balance sheet TOTAL Signiﬁcant Accounting Policies and Notes to Accounts forming part of ﬁnancial statements Earning per share (Refer Sch. 18.7.6) Basic (Rs.) Diluted (Rs.) (Face Value of Equity Share is Rs. 10/-) As per our report of even date attached For B S R & Co. Chartered Accountants For and on behalf of the Board of Directors YES BANK Limited 18
Year Ended March 31, 2010 23,697,097 5,755,320 29,452,417
Year Ended March 31, 2009 20,014,348 4,369,009 24,383,357
15 16 17
15,817,570 5,001,531 3,855,923 24,675,024
14,921,356 4,185,452 2,238,129 21,344,937
4,777,393 4,057,754 8,835,147
3,038,420 2,450,823 5,489,243
315,182 1,194,348 509,501 86,590 6,729,526 8,835,147
671,672 759,605 212 4,057,754 5,489,243
Akeel Master Partner Membership No: 046768 Firm’s Registration No: 101248W
Rana Kapoor Managing Director & CEO
Bharat Patel Director
S.L. Kapur Non Executive Chairman
Arun K. Mago Director Mumbai April 27, 2010
Rajat Monga Chief Financial Ofﬁcer
Sanjeev Kapoor Company Secretary
Cash Flow Statements
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2010
(Rs. in thousands)
Year Ended March 31, 2010 Cash flow from operating activities
Year Ended March 31, 2009
Net profit before taxes Adjustment for Depreciation for the year Amortization of premium on investments Provision for investments Provision for standard advances Provision/write-off of non performing advances/off balance sheet exposure Other provisions Loss from sale of ﬁxed assets
302,603 264,329 154,103 388,655 876,039 (50,335) 5,917 9,206,165
301,036 178,538 (199,410) 265,391 570,668 (19,265) 1,574 5,757,697
Adjustments for : Increase in Deposits Increase in Borrowings Increase/(Decrease) in Other Liabilities (Increase) in Investments (Increase) in Advances (Increase)/Decrease in Other Assets 106,291,451 3,747,695 (374,956) (11,438,094) (98,760,799) 3,687,663 3,152,960 28,962,627 12,028,479 5,177,340 (3,916,648) (30,280,932) (3,309,286) 8,661,580
(Payment) of direct taxes Net cash generated from operating activities (A)
754.326 2.884 10.779.275.797 (9.384 26.732. Kapur Non Executive Chairman Arun K.612) (16.897.400 11.THE PROFESSIONALS’ BANK OF INDIA (Rs.965.099 6.593) Year Ended March 31.505.635 7.227.887) 4.951.277 35. Mago Director Mumbai April 27.227.184 6.046 26.430. 2009 (649.953.061.557) (20.386 Cash and cash equivalents as at April 1 Cash and cash equivalents as at March 31 Notes to the Cash flow statement: Cash and cash equivalents includes the following Cash and Balances with Reserve Bank of India Balances with Banks and Money at Call and Short Notice Cash and cash equivalents as at March 31 As per our report of even date attached.046 19. 2010 Cash flow from investing activities Purchase of Fixed Assets Proceeds from sale of Fixed Assets Changes in Capital Work-in-Progress Changes in Held to Maturity Investment Net cash used in investing activities (B) Cash flow from financing activities Subordinated Debt raised Innovative Perpetual Debt raised Proceeds from issuance of Share Capital Share Premium received thereon Net cash generated from financing activities (C) Net increase in cash and cash equivalents (A+B+C) 6.732.449.909. Chartered Accountants For and on behalf of the Board of Directors YES BANK Limited 19.660) 5.483 16.437 (146. 2010 Rajat Monga Chief Financial Ofﬁcer Sanjeev Kapoor Company Secretary 85 .777.739 7.191.227.YES BANK .946) (19.527.862 19.L.400 1.633 820. in thousands) Year Ended March 31.199.660 19.405) 12.000 426.046 Akeel Master Partner Membership No: 046768 Firm’s Registration No: 101248W Rana Kapoor Managing Director & CEO Bharat Patel Director S.080 (16.295.483 12.891 2. For B S R & Co.222 17.
116 – 212 212 4.000.633.each) [Refer Sch 18.396.930 equity shares of Rs.667.526 27.5.000 equity shares of Rs.969.722.214.171.1246.633.371 86 .272.399 10.000. 10/.605 1.890 6.673 2.121.672 806.5.399 134.116 315.673 2.1] Closing balance III.978.1. Share Premium Opening balance Additions during the year [Refer Sch 18.498.057.635 – 6.000 3.269 equity shares of Rs. 2009: 400.000 As at March 31.1. 10/.3] Closing balance V.1.Schedules forming part of the Balance Sheet (Rs. 2009 4.754 13.556 1.764 2.298 6.789 3.890 1.729.000 equity shares of Rs.191.000. Balance in Profit and Loss Account TOTAL 212 – 212 6.222 (146.5.1. subscribed and paid-up capital 339.771. Statutory Reserves Opening balance Additions during the year Closing balance II. Capital Reserve Opening balance Additions during the year [Refer Sch 18.830 806.5.774.348 2.1] Reduction during the year [Refer Sch 18.065) 16. Investment Reserve Opening balance Additions during the year [Refer Sch 18.1. 10/.828.238 4.1] TOTAL SCHEDULE 2 – RESERVES AND SURPLUS I.819.182 1. in thousands) As at March 31.each (March 31. 10/.789 874.000.each (March 31.969.285 759.444 671.2] Closing balance IV. 2009 : 296.each) Issued. 2010 SCHEDULE 1 – CAPITAL Authorized Capital 400.
642 21.265 47.097.000 10. Borrowings outside India TOTAL (A + B) TOTAL (I + II) *Of the above secured borrowings are Nil (March 31.215 2.875. in thousands) As at March 31.694. Demand Deposits i) From banks ii) From others II.10.339.040 – 791.014.THE PROFESSIONALS’ BANK OF INDIA (Rs.054.540. Deposits of branches in India Deposits of branches outside India TOTAL SCHEDULE 4 – BORROWINGS I.959. Inter-ofﬁce adjustments (net) III.926.934.392.177 3.496 1.235.756 87 .627 3.666 – 12.431 – 1.852.734 596. Bills payable II.293.761 1.010. Proposed Dividend (including tax on dividend) V. Others (including provisions) – Provision for standard advances – Others TOTAL 1.000 17.570 31.666 – 267.000 8.674 8.179.600 4.000 5. II.453.842. 8.985.215 161.638.920.600 – 4.126.057.490.457 1. As at March 31.694.016.556 125. Innovative Perpetual Debt Instruments (IPDI) and Tier II A.983 21.560 161.717.000 8.694.500 4.564. Other Borrowings* Borrowings in India i) Reserve Bank of India ii) Other banks iii) Other institutions and agencies** TOTAL (A) B.370.349.000 253.208 7.587 thousands).717.000 10. Borrowings outside India i) IPDI ii) Upper Tier II Borrowings iii) Lower Tier II Borrowings TOTAL (B) TOTAL (A + B) II A. Term Deposits i) From banks ii) From others TOTAL B.086.985. I.890.591 25.271.904 26.091 1.770 SCHEDULE 5 – OTHER LIABILITIES & PROVISIONS I.000 224.450. 2009: reﬁnance (borrowing) of Rs.240.587 4.496 21. Borrowings in India i) IPDI ii) Upper Tier II Borrowings iii) Lower Tier II Borrowings TOTAL (A) B. 2009 – 24.200 – 6.311.733.996 – 4.674 thousands (March 31.YES BANK .926.472 – 2.617. 2009 : Nil) **Comprises of reﬁnance (borrowing) of Rs.949.627. I.674 17.077 14.587 17.000 3.863 12.380 213.985.666 267.755 267.909.197. 2010 SCHEDULE 3 – DEPOSITS A.564.000 7.360.815.215 – 161.200 15. Savings Bank Deposits III.000 5.717.000. Interest accrued IV.017 17.
801.828.462.170.099 123. in thousands) As at March 31.184 – 1. In India Balances with banks i) in current accounts ii) in other deposit accounts Money at call and short notice i) with banks ii) with other institutions TOTAL (I) II.700 4.602 1.464 2.260 – – 1.170.000 4.736 6. As at March 31.000 975.118.597.880 4.449. Balances with Reserve Bank of India – In current account – In other account TOTAL SCHEDULE 7 – BALANCES WITH BANKS.492. MONEY AT CALL AND SHORT NOTICE I.660.250.699 71.802 – 14.767 – 827.413 – 102.241.779. 2009 314.Schedules forming part of the Balance Sheet (Rs.128 8. Investments outside India TOTAL *Includes investments in Pass Through Certiﬁcates (PTC).036 – 2.194 88 .184 356.852.914.953.681 – 12.615 10. 2010 SCHEDULE 6 – CASH AND BALANCES WITH RESERVE BANK OF INDIA I.413 46.099.722 – 202. Outside India i) in current accounts ii) in other deposit accounts iii) Money at call and short notice TOTAL (II) TOTAL (I+II) SCHEDULE 8 – INVESTMENTS (net of provisions) A.862 67.099. Investments in India i) Government securities ii) Other approved securities iii) Shares iv) Debentures and bonds* v) Subsidiaries and/or joint ventures vi) Others (CPs.) B. mutual fund units etc.864.777.020.997 102.194 – 71.832. CDs.852.260 6.521 – 24.647 19.648 144.452 – 19.384 1.072.078 – 54. Mortgage Backed Securities (MBS) and Asset Backed Securities (ABS).503 12. Cash in hand II.596.
653.559 303.954 221.169. 2010 SCHEDULE 9 – ADVANCES A.THE PROFESSIONALS’ BANK OF INDIA (Rs.232 33. 2009 Rs. Advances in India i) Priority sectors ii) Public sector iii) Banks iv) Others 44. overdrafts and loans repayable on demand Term loans TOTAL B. As at March 31.504 297.712 124. licenses.030. in thousands) As at March 31.708.322 66.030.088.578.480 thousands for which intangible securities such as charge over the rights.629.673 112. 42. Advances outside India TOTAL – 221.429 1.995.232 89 .463 42.931.143.916.748.230 28.931. 2009 1.922 – 124.300 thousands.922 57.931.292 221.723.922 4.871 124.931.988 89.318 221.226.YES BANK . i) ii) iii) Secured by tangible assets Covered by Bank/Government guarantees Unsecured * TOTAL * includes advances of Rs.030 121.936 thousands (March 31.264. 450.232 C. I. 7.922 II.485.232 97.030.521.231 8.014 thousands) for which security documentation is either being obtained or being registered and of Rs.884 2.280 175. have been obtained as security and estimated value of which is Rs.980 94. i) ii) iii) Bills purchased and discounted Cash credits.927 124.030.040.775. 14.307. authority etc.815 174.725.
791.612 3.264 609.647 – 39.675) (923.773.825 6.535) 1.879.Value dated purchase of securities .627 71. II.097.177) 1.812 1. III.586 11.581.815 90.948.CONTINGENT LIABILITIES I.Others V.256.In India .928 2.Schedules forming part of the Balance Sheet (Rs.037 6.099 – – 258.332 1. Guarantees given on behalf of constituents .315 – 1. in thousands) As at March 31.484.643.110.100 2.7.976 652.666) (641. Other items for which the bank is contingently liable 8. IV.078 649.140.715 74.906 35.063. Acceptances.574.524. 2009 – 1.591 – – 192.Single currency Interest Rate Swaps .664 As at March 31. III.887 (31. 2010 SCHEDULE 10 – FIXED ASSETS I.Capital commitments . Claims against the bank not acknowledged as debts Liability for partly paid investments Liability on account of outstanding forward exchange contracts Liability on account of outstanding derivative contracts . endorsements and other obligations .142 463.178.154. II.817 146.648.8] Others TOTAL SCHEDULE 12 .Outside India VI.039 23.405 (30.866 1.731.311.069 – 28.640 41.330.554 273.550 83.477.282 3.620 1. IV.727.470 657.268.800 13.057.847. Premises Other Fixed Assets (including furniture and fixtures) At cost as on March 31 of preceding year Additions during the year Deductions during the year Accumulated depreciation to date Capital work-in-progress TOTAL SCHEDULE 11 – OTHER ASSETS I.148 .307.Foreign Exchange Contracts (Tom & Spot) TOTAL 90 VII.817. Interest accrued Advance tax and tax deducted at source Deferred tax asset (net) [Refer Sch 18.755.907.299 44. II.148 2.329.852 13.816.
III.376 – (1. Commission. exchange and brokerage Proﬁt on the sale of investments (net) Proﬁt /(Loss) on the revaluation of investments (net) (Loss) on sale of land. in thousands) Year ended March 31.369.683 – 345.320 4.013 5. II.574) 281.236 – (5.014.097 Year ended March 31. etc.715.332 23. III. IV. IV. from subsidiaries.755.878. companies and/or joint ventures abroad/in India 3.377 VII.096 – 542. Interest/discount on advances/bills Income on investments Interest on balances with Reserve Bank of India and other inter-bank funds Others TOTAL SCHEDULE 14 – OTHER INCOME I.160 20.791.991 115. 2009 14. 2010 SCHEDULE 13 – INTEREST EARNED I.234 17.734 1.YES BANK .486. Miscellaneous income TOTAL 5.860 36.084 986.892 86. VI.348 2.995. II.697.074 4.858.257. V.123 25.917) 441.THE PROFESSIONALS’ BANK OF INDIA Schedules forming part of the Proﬁt and Loss Account (Rs.009 91 . building and other assets Proﬁt on exchange transactions (net) Income earned by way of dividends.
027 72.502 925.025.411 3.102.039 (50. XI.169 563.415 15. in thousands) Year Ended March 31.406 14.931 302.539 90. taxes and lighting Printing and stationery Advertisement and publicity Depreciation on Bank's property Directors' fees. Interest on deposits Interest on Reserve Bank of India/inter-bank borrowings / Tier I and Tier II debt instruments Others TOTAL 12. Law charges IX.668 (19.831 4. Repairs and maintenance Insurance XII. 2009 12.238. II.129 92 . 2010 SCHEDULE 15 – INTEREST EXPENDED I.910 TOTAL 5.570 Year Ended March 31.(Rs. II.1] Provision for investments Provision for standard advances Provision/ write off for non performing advances/ off balance sheet exposures Other provisions [Refer Sch 18.461 154.185. II.265) 2.745 (199.789 6.335) 3. VI.150 8.6. Postage.7.959 1. Other expenditure SCHEDULE 17 – PROVISIONS & CONTINGENCIES I.487.356 SCHEDULE 16 – OPERATING EXPENSES I.921.356 15.457 4.410) 265.270. Provision for taxation [Refer Sch 18.103 388.817. V.180.452 VII. IV. Payments to and provisions for employees Rent.449 119.391 570.501 2. IV.990 13. III.620.531.036 3.618 107.568. III.140 45.531 2. etc. allowances and expenses 2. telegrams. telephones.655 876.9] TOTAL 2.534.855. Auditors' fees and expenses VIII.885 730.777 3.844 301.744 257.603 3. X.001.429 38.421 43. III. V.125 14.923 1.495 39.
The Bank follows the accrual method of accounting. • • • • Interest income is recognised in the proﬁt and loss account on accrual basis. 2006 to the extent applicable and practices generally prevalent in the banking industry in India.2 Basis of preparation The ﬁnancial statements have been prepared in accordance with requirements prescribed under the Third Schedule (Form A and Form B) of the Banking Regulation Act.3 Use of estimates The preparation of ﬁnancial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the ﬁnancial statements and the reported income and expenses during the reporting period. 18. 1949. 1956. Any revision to accounting estimates is recognised prospectively in current and future periods. Rana Kapoor. 100 thousands. • • • • 93 . Revenue from ﬁnancial advisory services is recognized based on milestones achieved as per terms of agreement with client. The accounting and reporting policies of the Bank used in the preparation of these ﬁnancial statements conform to Generally Accepted Accounting Principles in India (Indian GAAP). Commission on guarantees issued by the Bank is recognised as income on yearly basis over the period of the guarantee.YES BANK Limited is a publicly held Bank engaged in providing a wide range of banking and ﬁnancial services. Ashok Kapur and Mr. 1934 with effect from August 21. YES BANK was included to the Second Schedule of the Reserve Bank of India Act. Income on discounted instruments is recognised over the tenure of the instrument on a straight-line basis.YES BANK . Further. Commission on Letters of Credit (‘LC’) issued by the Bank is recognised as income at the time of issue of the LC. Other fees and commission income are recognised on accrual basis. 2004. 18.4. Interest on non-performing assets is recognized upon realisation as per the prudential norms of the RBI. which is recognised in the proﬁt and loss account at the time of issue of the guarantee. 18. Future results could differ from these estimates. 2010 18.4 18. on November 21. The Bank was incorporated as a limited company under the Companies Act. Management believes that the estimates used in the preparation of the ﬁnancial statements are prudent and reasonable. 1949. the guidelines issued by Reserve Bank of India (RBI) from time to time. except for guarantee commission not exceeding Rs. The Bank received the licence to commence banking operations from the Reserve Bank of India (‘RBI’) on May 24. the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) and notiﬁed by the Companies (Accounting Standards) Rules.1 Background YES BANK Limited (the ‘Bank’ or ‘YES BANK’) is a private sector Bank promoted by the late Mr.YES BANK Limited is a banking company governed by the Banking Regulation Act. Revenue. 2004. Dividend income is recognised when the right to receive payment is established.1 Significant Accounting Policies Revenue recognition Revenue is recognized to the extent it is probable that the economic beneﬁts will ﬂow to the Bank and the revenue can be reliably measured. 2003. except where otherwise stated.THE PROFESSIONALS’ BANK OF INDIA Notes forming part of the Accounts for the year ended March 31. except in the case of non-performing assets. and the historical cost convention. in certain structured transactions where interest income is partially receivable in advance is recognised when due.
Unquoted equity shares are valued at the book value if the latest balance sheet is available. if done. ‘Available for sale’ (‘AFS’) or “Held to maturity” (‘HTM’) at the time of its purchase. Amortization expense of premia on investments in the Held to Maturity (HTM) category is deducted from interest income. the price list published by RBI or the prices periodically declared by Primary Dealers’ Association of India jointly with Fixed Income Money Market and Derivatives Association (‘FIMMDA’). Accordingly. security receipts issued by the asset reconstruction company are valued in accordance with the guidelines applicable to such instruments. Investments that the Bank intends to hold till maturity are classiﬁed under the HTM category. pertaining to investments. c) Basis of classiﬁcation Securities that are held principally for resale within 90 days from the date of purchase are classiﬁed under the HFT category. e) Valuation Investments categorized under AFS and HFT categories are marked to market on a periodical basis as per relevant RBI guidelines. Further. d) Transfer between categories Reclassiﬁcation of investments from one category to the other. are categorized as ‘Held for trading’ (‘HFT’). BC. Investments classiﬁed under the HTM category are carried at their acquisition cost and any premium over the face value. are valued at carrying cost. The book value of individual securities is not changed consequent to periodic valuation of investments. In compliance with RBI guidelines. Where in the opinion of management. investments are classiﬁed as disclosed in Schedule 8 (‘Investments’) under six groups (a) government securities (b) other approved securities (c) shares (d) bonds and debentures (e) subsidiaries and joint ventures and (f) others. under each classiﬁcation is ignored. Securities which are not classiﬁed in the above categories are classiﬁed under the AFS category. on such transfer is fully provided for.141/2009-10 dated 1 July 2009 and Fixed Income Money Market and Derivative Association (FIMMDA) guidelines FIMCIR/2009-10/50 dated March 17. 1 per company. all investments. commission. Net depreciation. in cases where the cash 94 . 2010. as at the date of transfer. except to the extent of depreciation previously provided. etc. Subsidiary General Ledger (‘SGL’) account transactions.04. other than temporary in the value of investments classiﬁed under HTM has taken place. a) Accounting and Classiﬁcation Investments are recognised using the value date basis of accounting. else. in the case of unquoted ﬁxed income securities (other than government securities). The market/fair value of unquoted government securities included in the ‘Available for Sale’ and ‘Held for Trading’ category is determined as per the rates published by FIMMDA. is amortised on a straight-line basis over the remaining period to maturity. b) Cost of acquisition Costs such as brokerage. in any classiﬁcation mentioned in Schedule 8 (‘Investments’) is recognised in the proﬁt and loss account. Commercial Paper and Certiﬁcates of deposit being discounted instruments. The market/ fair value applied for the purpose of periodical valuation of quoted investments included in the ‘Available for Sale’ and ‘Held for Trading’ categories is the market price of the scrip as available from the trades/quotes on the stock exchanges. whichever is lower. BP. For the purpose of disclosure in the balance sheet. At the end of each reporting period. Treasury Bills. prescribed by RBI from time to time. at Re. which cover both debt and equity securities. No. Such mark-up and YTM rates applied are as per the relevant rates published by FIMMDA. The net appreciation if any. Depreciation. 3/21. as per relevant RBI guidelines. Quoted equity shares are valued at their closing price on a recognised stock exchange. valuation is carried out by applying an appropriate mark-up (reﬂecting associated credit risk) over the Yield to Maturity (‘YTM’) rates of government securities. paid at the time of acquisition are charged to the proﬁt and loss account. paid on acquisition. a diminution. suitable provisions are made.18. if any.2 Investments Classiﬁcation and valuation of the Bank’s investments are carried out in accordance with RBI Circular DBOD. if any.4. is in accordance with RBI guidelines and any such transfer is accounted for at the acquisition cost/ book value/ market value.
3 Advances Advances are classiﬁed as performing and non-performing based on the relevant RBI guidelines. Countries are categorized into seven risk categories namely insigniﬁcant. In respect of repo transactions under Liquidity Adjustment Facility (LAF) with RBI. 18. restricted and off-credit and provisioning is done in respect of that country where the net funded exposure is one per cent or more of the Bank’s total assets. if any.4. These provisions are included in Schedule 5 . Export Credit Guarantee Corporation of India Limited (‘ECGC’) claims received.4. low. the Bank reckons the net asset value obtained from the asset reconstruction company from time to time. subject to the minimum provisioning level prescribed in relevant RBI guidelines.THE PROFESSIONALS’ BANK OF INDIA ﬂows from security receipts issued by the asset reconstruction company are limited to the actual realization of the ﬁnancial assets assigned to the instruments in the concerned scheme. Sales and transfers that do not meet the criteria for surrender of control are accounted for as secured borrowings. money paid to RBI are debited to lending account and reversed on maturity of the transaction. The difference between the clean price of ﬁrst leg and the clean price of the second leg is recognised as interest income/expense over the period of transaction. In respect of reverse repo transactions under LAF. As per the RBI guidelines a general provision is made on all standard advances based on the category of advances as prescribed in the said guidelines. depreciation in the value.YES BANK .4 Securitization transactions The Bank enters into securitization transactions wherein corporate loans are sold to a Special Purpose Vehicle (‘SPV’). Mutual Fund units are valued at their net asset value on the valuation date. However. In addition to the provisions required according to the asset classiﬁcation status. Speciﬁc loan loss provisions in respect of non-performing advances are made based on management’s assessment of the degree of impairment of the advances. Gain on securitization is amortised over the life of the securities issued by the SPV. Securitized assets are derecognised upon sale if the Bank surrenders control over the contractual rights that comprise the ﬁnancial asset and fulﬁls other conditions as per the applicable extant RBI guidelines. Losses are recognised immediately. Costs thereon are accounted for as interest expense. based on the RBI guidelines. Revenues thereon are accounted as interest income.4. f) Accounting for repos/reverse repos Repurchase (repos) and reverse repurchase (reverse repos) transactions are accounted for on outright sale and outright purchase basis respectively in line with RBI guidelines.Others’. provision is made for the present value of principal and interest component sacriﬁced at the time of restructuring the assets. interest in suspense. for valuation of such investments at each reporting date. In respect of restructured standard and sub-standard assets. provisions are made for individual country exposures (other than for home country exposure) in accordance with RBI guidelines. Advances are stated net of speciﬁc loan loss provisions.5 Transactions involving foreign exchange Monetary foreign currency assets and liabilities are translated at the balance sheet date at rates notiﬁed by the Foreign 95 . compared to the original cost. very high. money borrowed from RBI are credited to borrowing account and reversed on maturity of the transaction. These securitization transactions are accounted for in accordance with the RBI guidelines on ‘Securitization of Standard Assets’. The Bank also maintains additional general provisions on standard exposure based on the internal credit rating matrix. inter-bank participation certiﬁcates issued and bills rediscounted. 18. is provided for. 18. high. Amounts recovered against debts written off in earlier years and provisions no longer considered necessary in the context of the current status of the borrower are recognised in the proﬁt and loss account.‘Other liabilities and provisions . moderate.
are made as per the relevant RBI guidelines. Charges receivable/ payable on cancellation/ termination of foreign exchange forward contracts and swaps are recognised as income/ expense on the date of cancellation/ termination under Other Income. swaps and option contracts. and are stated at net present value based on LIBOR/SWAP curves of the respective currencies for contracts of maturities over 12 months (Long Term Forex Contract). Provisions for overdues. Derivative transactions that are undertaken for hedging are accounted for on accrual basis.4. 2006.Exchange Dealers’ Association of India (‘FEDAI’).7 Accounting for derivative transactions Derivative transactions comprise of forward rate agreements. As per the RBI guidelines on ‘Prudential Norms for Off-balance Sheet Exposures of Banks’ a general provision is made on the current gross marked to market gain of the contract for all outstanding interest rate and foreign exchange derivative transactions. are amortised over the life of the swap. If such assets are considered to be impaired. Premia received on Options transactions are recorded under Other Income. Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The requirement for collateral and credit risk mitigation on derivative contracts is assessed based on internal credit policy.4. Basic earnings per equity share have been computed by dividing net proﬁt for the year by the weighted average number of equity shares outstanding for the period. contingent liabilities in respect of outstanding foreign exchange forward contracts. 96 . the impairment is recognised by debiting the proﬁt and loss account and is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. 18. derivatives. 18.8 Fixed assets Fixed assets are stated at cost less accumulated depreciation and provision for impairment. All market making/trading transactions are marked to market on a periodic basis and the resultant unrealised gains/losses are recognised in the proﬁt and loss account. In accordance with Accounting Standard 11 ‘The Effects of changes in Foreign Exchange Rates’ issued by the Institute of Chartered Accountants of India (‘ICAI’). endorsements and other obligations are stated at the exchange rates notiﬁed by FEDAI corresponding to the balance sheet date. Foreign exchange contracts outstanding at the balance sheet date are marked to market at rates notiﬁed by FEDAI for speciﬁed maturities. The premium or discount arising on inception of forward exchange contracts that are entered into to establish the amount of reporting currency required or available at the settlement date of a transaction is amortised over the life of the contract. 18.6 Earnings per share The Bank reports basic and diluted earnings per equity share in accordance with (AS) 20. Diluted earnings per equity share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period except where the results are anti dilutive. Income and expenditure in foreign currency are accounted for at exchange rates prevalent on the date of the transaction. ‘Earnings per Share’ prescribed by the Companies (Accounting Standards) Rules. The Bank undertakes derivative transactions for market making/trading and hedging on-balance sheet assets and liabilities.4. The amounts received/paid on cancellation of Option contracts are recognised as realized gains/losses on Options. The resulting proﬁts or losses are recognised in the proﬁt and loss account. that are used to cover risks arising from foreign currency assets and liabilities. suitably interpolated for in-between maturity contracts as speciﬁed by FEDAI. guarantees. if any. Premia/ discounts on foreign exchange swaps. Cost comprises the purchase price and any cost attributable for bringing the asset to its working condition for its intended use. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset with future net discounted cash ﬂows expected to be generated by the asset.
33% 25.4. The Bank accounts for the liability for future gratuity beneﬁts using the projected unit cost method based on annual actuarial valuation. Current income tax is measured as the amount expected to be paid to the tax authorities in accordance with the Income Tax Act. 18. 5. depreciation is being provided on pro rata basis by the Bank. The employees cannot encash unavailed/unutilised leave. The levy of Fringe Beneﬁt Tax is not applicable as the Finance (No.10 Retirement and employee benefits Leave salary The employees of the Bank are entitled to carry forward a part of their unavailed/unutilised leave subject to a maximum limit. The Bank has computed the leave compensated absence provision as per revised Accounting Standard 15 – Employee Beneﬁts. 2009.33% Over the lease period. Assets costing less than Rs. over estimated useful lives. The plan provides for lump sum payments to vested employees at retirement or upon death while in employment or on termination of employment for an amount equivalent to 15 days’ eligible salary payable for each completed year of service if the service is more than 5 years. The Bank recognises the actuarial gains and losses during the year in which the same are incurred. 1956: Class of asset Ofﬁce equipment Computer hardware Computer software Vehicles Furniture and Fixtures Leasehold improvements to premises Rates of depreciation per annum 16. Operating lease payments are recognized as an expense in the proﬁt and loss account on a straight-line basis over the lease term. 1961 and as per Accounting Standard 22 . Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. 18. Gratuity The Bank provides for gratuity. 18.4.12 Income taxes Tax expense comprises of current and deferred tax.2) Act.Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India’.000 are fully depreciated in the year of purchase. 2009 has abolished the tax with effect from April 1.THE PROFESSIONALS’ BANK OF INDIA 18.21% 33. The Bank has no liability for future provident fund beneﬁts other than its annual contribution and recognises such contributions as an expense in the year incurred. as determined by the management. covering eligible employees.00% 20. For assets purchased/sold during the year. a deﬁned contribution plan in which both the employee and the Bank contribute monthly at a predetermined rate.4.9 Depreciation Depreciation on ﬁxed assets is provided on straight-line method.11 Leases Leases where the lessor effectively retains substantially all risks and beneﬁts of ownership are classiﬁed as operating leases.4. Provident fund In accordance with law. a deﬁned beneﬁt retirement plan.00% 6. at the rates mentioned below which are higher than or equal to the corresponding rates prescribed in Schedule XIV to the Companies Act. all employees of the Bank are entitled to receive beneﬁts under the provident fund. In 97 .YES BANK .
the Bank has incurred share issue expenses aggregating to Rs. Contingent assets are not recognised in the ﬁnancial statements.50 aggregating to Rs. 18. During the year Rs.e.5.13 Provisions and Contingent Assets / Liabilities The Bank creates a provision when there is a present obligation as a result of a past event that probably requires an outﬂow of resources and a reliable estimate can be made of the amount of the obligation. The carrying amount of deferred tax assets are reassessed and reviewed at each balance sheet date.630 shares pursuant to the exercise of stock option aggregating to Rs. Compensation cost is measured by the excess.1. The Bank collected Rs.065 thousands) as premium.709 equity shares of Rs.The proposed payment of the issue expenses is higher than the limit prescribed under Section 13 of the Banking Regulation Act.362.The Bank measures compensation cost relating to employee stock options using the intrinsic value method. 671. 146. 10. no provision or disclosure is made. The Bank also issued 4. 269. In connection with the QIP issue. When there is a possible obligation or a present obligation in respect of which the likelihood of outﬂow of resources is remote.5. the asset and related income are recognised in the period in which the change occurs. 18. In this connection. all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable proﬁts.4. 146. If it is no longer probable that an outﬂow of resources would be required to settle the obligation.045.1 Statutory disclosures as per RBI Capital 18.4. as the case may be that sufﬁcient future taxable income will be available against which such deferred tax assets can be realised. The Bank has utilized the share premium account for meeting the said share issue expenses. 1949.338. if any.325. Provisions are reviewed at each balance sheet date and adjusted to reﬂect the current best estimate.157 thousands (net of share issue expenses of Rs. The exercise price of the Bank’s stock option is the last closing price on the stock exchange on the day preceding the date of grant of stock options and accordingly there is no compensation cost under the intrinsic value method.5 18.355 thousands.14 Employee Stock Compensation Cost Measurement and disclosure of the employee share-based payment plans is done in accordance with the Guidance Note on Accounting for Employee Share-based Payments. 10 each for cash pursuant to the exercise of stock options by certain employees. contingent assets are assessed continually and if it is virtually certain that an inﬂow of economic beneﬁts will arise. 279. However. issued by the ICAI.189.1. the Bank has written to the Reserve Bank of India seeking its approval. on the QIP and stock options excercised. During the ﬁnancial year 2008-09.situations where the Bank has unabsorbed depreciation and carry forward tax losses. 10.5.065 thousands. the last closing price on the stock exchange on the day preceding the date of grant of stock options) over the exercise price.180 equity shares of Rs.1 Equity Issue: During the ﬁnancial year 2009-10. The Bank accreted Rs.182 thousands (previous year: Rs. 2. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may but probably will not require an outﬂow of resources.2 Capital Reserve Proﬁt on sale of investments in the HTM category is credited to the proﬁt and loss account and thereafter appropriated to capital reserve (net of applicable taxes and transfer to statutory reserve requirements).635 thousands as premium on allotment of stock options.672 thousands) were transferred to capital reserve.750 thousands. of the fair market price of the underlying stock (i. 18. the Bank has issued 38. The Bank recognises deferred tax assets to the extent that it has become reasonably certain or virtually certain. 98 . 18. the Bank has issued 1. the provision is reversed. 10 each for cash pursuant to a Qualiﬁed Institutions Placement (QIP) at Rs. 315. which is awaited.
742.985 9.519 9. As at March 31.395 255. 2010. in thousands) Particulars Nature of Security Date of Issue September 30.633* 3.65% Tenure 10 years & 7 months 15 years (With call option after 10 years) 10 years TOTAL Amount 2.991.400 As at March 31. 820.000 6.400 9.084 30.284.570.657 167. 2009 September 30.000 thousands.633 Lower Tier II Debentures Upper Tier II Bonds Lower Tier II Debentures *Borrowings in foreign currency converted at the rate prevalent on the date of borrowing. 2010 is given below: (Rs. the capital funds of the Bank are higher than the minimum capital requirement mentioned above.364 184.673.794.2010. 2009 17.399 10.529. 2010. Nil (Previous year: Rs.400 10.573 13.600.65% 6M EURIBOR + 3.751.5. in thousands) Tier-1 capital Tier-2 capital Total capital Credit Risk – Risk Weighted Assets (RWA) Market Risk – RWA Operational Risk – RWA Total risk weighted assets Tier-1 capital adequacy ratio (%) Tier-2 capital adequacy ratio (%) Total capital adequacy ratio (%) Amount raised by issue of IPDI* Amount raised by issue of Upper Tier II instruments* *Outstanding as at March 31.4 Capital Adequacy Ratio Capital Adequacy Ratio as per RBI guidelines (New Capital Adequacy Framework (NCAF) dated February 08.1.144.941 19.338 52.YES BANK .124.3 Investment Reserve The Bank has transferred Rs. 2009 January 22. Details of the same are as follows: Tier II Debt Instruments (Rs. 6.527.5. 18.000 927.279 234.1 16. As at March 31.000. 18.490. 99 . the Bank is required to maintain minimum capital which is higher of the minimum capital requirement under Basel II framework or 90% (100% as at March 31.677 6.907. the Bank has raised Tier II Debt instruments amounting to Rs.80% 9.754.033 As at March 31.944 9.9 7. generally referred to as Basel II) as at March 31.527.225. 212 thousands) towards Investment Reserve on provisions credited to proﬁt and loss account.574. 2009 ) of the minimum capital requirement under Basel I framework.633 thousands and Innovative Perpetual Debt Instruments (IPDI) amounting to Rs.5 7.313 12.5 Subordinated Debt During the ﬁnancial year 2009-10. 2010 32. 2010 Coupon Rate (%) 9.5.6 2.9126.96.36.1995.6 1.356.7 20.THE PROFESSIONALS’ BANK OF INDIA 18.
400 thousands. 1.25% 10.25% Tenure Perpetual (With call option after 10 years) TOTAL Amount 820.000 390. 2008 15 years 2.400* Upper Tier II Debentures September 15. in thousands) Particulars Nature of Security Date of Issue June 27. 2008 Coupon Rate (%) 300 bps over applicable LIBOR 11. 5. 100 .400 thousands and Innovative Perpetual Debt Instruments (IPDI) amounting to Rs.000 During the ﬁnancial year 2008-09.150. 2010 Coupon Rate (%) 10. 2008 February 21.430. 2009 Coupon Rate (%) 450 bps over applicable LIBOR 10.000 820. in thousands) Particulars Tier I Perpetual Nature of Security Promissory Note Date of Issue March 05.Innovative Perpetual Debt Instruments (IPDI) (Rs.400 Innovative Perpetual Debt Instruments (IPDI) (Rs.754.000.430. the Bank has raised Tier II Debt instruments amounting to Rs.000 1. 2009 March 9.25% Tenure Perpetual Perpetual Perpetual TOTAL Amount 214. Details of the same are as follows: Tier II Debt Instruments (Rs.400 Tier I Perpetual Bonds Tier I Perpetual Promissory Notes Tier I Perpetual Promissory Notes *Borrowings in foreign currency converted at the rate prevalent on the date of borrowing.75% Tenure 15 years Amount 3.754.400* 1.430. in thousands) Particulars Upper Tier II Nature of Security Bonds Date of Issue June 27.000 TOTAL 5.
000 4.466 The details of securities sold and purchased under repos and reverse repos (including securities under Liquidity Adjustment Facility with RBI) during the year ended March 31.002.200. in thousands) Minimum outstanding during the year Securities sold under repos Security purchased under reverse repo b) - Maximum outstanding during the year 250.291.000 Daily average outstanding during the year 301. 2009 237.103 192. in thousands) Minimum outstanding during the year Securities sold under repos Security purchased under reverse repo - Maximum outstanding during the year 4. 2009.5.877 As at March 31.194 (Rs.699 1.346 38.245 102.THE PROFESSIONALS’ BANK OF INDIA 18. 2010 102.390. 2009 1.099. in thousands) Particulars (In India) Opening Balance Add/(Less): Provision during the year Closing Balance As at March 31.160. 2009: (Rs.142 154.142 There was no provision for depreciation on investments outside India as at March 31. 2010 and March 31.YES BANK .000 4.658 192.2 Investments (Rs. 2009 71.000 101 .000 7.3 a) Repo Transactions The details of securities sold and purchased under repos and reverse repos (including securities under Liquidity Adjustment Facility with RBI) during the year ended March 31.413 As at March 31.142 71.000 Daily average outstanding during the year 13.000.250.552 (199. 2010 and March 31.245 As at March 31. 2009. 2010 2. 2010 38.208.170. 2010: (Rs.419 As at March 31. 18.5.410) 38.368 399. Provision for depreciation on investments As at March 31.250. in thousands) Particulars (In India) Gross value Less: Provision for depreciation (fair value provision) Net value There were no investments outside India as at March 31.
195 Extent of ‘below investment grade’ securities - Extent of ‘unrated’ securities - Extent of ‘unlisted’ securities* 2.101 4.087. Issuer Amount Extent of private placement 411.883.248 thousands are exempted from applicability of RBI prudential limit for unlisted Non-SLR securities.411 33.000 50. 2010 are provided in accordance with the RBI guidelines on Forward Rate Agreements and Interest Rate Swaps (MPD.528) 24.284 10.555.668. 26.460 3.513 21.542.646 *Of the investments disclosed Rs.134 thousands net of provision).929.4 a) Non-SLR Investment Portfolio Issuer composition of Non SLR investments as at March 31.664 9.310 9.5.410 Extent of ‘unlisted’ securities* 3.127. 2010 or during the year ended on that date (previous year – Nil).132) 188.8.131.52 5.000 Extent of ‘unrated’ securities 14.680.127.180. c) 184.108.40.206.5 There were no non-performing non-SLR investments as at March 31.116 *Of the investments disclosed Rs.025 2.839 4.039.469.185.410 14.337 22.555.043 50.839 5.545.525 2. Issuer Amount Extent of Extent of ‘below private investment placement grade’ securities 976.15% which is classiﬁed under Government Securities in Schedule 8 (Rs.1 Forward Rate Agreement/ Interest Rate Swap The details of Forward Rate Agreements/Interest Rate Swaps outstanding as at March 31.460 19.BC.863 i) ii) iii) iv) v) vi) vii) PSUs Financial Institutions Banks Private Corporates Subsidiaries / Joint ventures Others Provision held towards depreciation Total 739.370. The above does not include Fertilizer Bond 7.187/07.608 3. 2010 is given below: (Rs. in thousands) No.457. 35.00% and FCI Bond 8. b) Issuer composition of Non SLR investments as at March 31.013 3.024 1.134 5.397 5.401 i) ii) iii) iv) v) vi) vii) PSUs Financial Institutions Banks Private Corporates Subsidiaries / Joint ventures Others Provision held towards depreciation Total 976.563. 2009 is given below: (Rs.5.990 thousands are exempted from applicability of RBI prudential limit for unlisted Non-SLR securities.613 4.218. in thousands) No.707.585.369.243 2.472.411 (102.411 26.513 21.180.303.279/1999-2000) as applicable to Indian Rupee transactions: 102 .305.180.337 (5.18.337 18. Derivatives 18. 17.646.477 4.01.505 21.
623 As at March 31. in thousands) Sr. 2010 the open contracts on the exchange were to the tune of EURO 6. As at March 31.5.5.000) and GBP 337.968. Items i) ii) iii) iv) v) The notional principal of swap agreements Losses which would be incurred if counterparties failed to fulﬁll their obligations under the agreements Collateral required by the Bank upon entering into swaps Concentration of credit risk arising from the swaps [Percentage Exposure to Banks] The fair value of the swap book As at March 31.000 (INR 150. 530.5220.127.116.116. Stop loss and portfolio credit limits for derivative transactions. 2010 595.04. 2010 is Rs. 2009: Rs. 2010 that are not hedged/covered by either derivative instruments or otherwise are within the Net Overnight Position limit and the Aggregate Gap limit.5. the Risk Monitoring Committee (‘RMC’) and delegated to it all functions and responsibilities relating to the Risk Management Policy of the Bank and its supervision thereof.213. the following disclosures are being made with respect to risk exposure in derivatives of the Bank: a) Structure: The Board of Directors of the Bank have constituted a Board level sub-committee. The Bank has also instituted a comprehensive limit and control structure encompassing Value-at-Risk (VAR).722) for April 2010 expiry (Previous Year: USD 2. The Bank reports all trading positions to the management on a daily basis. The Bank has an independent Middle Ofﬁce. the Bank independently evaluates the potential credit exposure on account of all derivative transactions. The Bank is subject to a concurrent audit for all treasury transactions. In addition to the above.000. measurement and analysis of derivative related risks. The Bank has adopted various policies including a Derivatives Appropriateness Policy as part of prudent business and risk management practice.5.536. Refer Note 18.4. 22/21. 2009. The Bank has an elaborate internal reporting mechanism providing regular reports to the RMC.4 Currency Futures The Bank had dealt in exchange traded currency Futures during the ﬁnancial year ended March 31.YES BANK .5.3 Exchange Traded Interest Rate Derivatives The Bank has not dealt in exchange traded interest rate derivatives during the ﬁnancial year ended March 31.930) for April 2009 expiry). 2009 265. including derivatives.000 (INR 365. in terms of both credit exposure and tenure. 2010.992. The Net Overnight position at March 31. No.609 87. wherein risk limits are speciﬁed separately for each product. The Bank has a Credit Risk Management unit which is responsible for setting up counterparty limits and also a treasury operation unit which is responsible for managing operational aspects of derivatives control function and settlement of transactions. No. 18. 2010 (Previous Year: Nil).5.27% 166.018/2009-10 dated July 1.7 for accounting policy on derivatives. among others.2 Unhedged/uncovered foreign currency exposure The Bank’s foreign currency exposures as at March 31. a monthly report of which is periodically submitted to the top management and Audit and Compliance Committee of the Bank.000 1.000 (INR 22.BC. 103 b) c) d) e) f) .408 ) 18.159 91. as approved by the RBI. The Bank revalues its trading position on a daily basis for MIS and control purposes and records the same in the books of account on a monthly basis. 281.THE PROFESSIONALS’ BANK OF INDIA (Rs.38% (164. the Bank has instituted an approval structure for all treasury/derivative related credit exposures. which is responsible for monitoring.5.300 1.577 thousands (March 31. 18. As mandated by the Credit Policy of the Bank.5 Disclosures on risk exposure in derivatives As per RBI Master circular RBI BP.997. 18.727 thousands).
202 158.172 167. i) Particulars Currency derivatives1 Year ended March 31.324 Year ended March 31. **The credit exposure has been calculated using the Current Exposure Method as prescribed in the RBI Circular on “Prudential Norms for Off-balance Sheet Exposures of Banks”.004 65.103.890 113.137 399.106 404.185 22.04.717.400.000 269.189 8. 2010 Year ended March 31.551 194.052 9.360 168.048 282. 104 .382. 2009 3.735 v) Maximum and minimum of 100*PV01 observed during the year (Refer Note 2 below) a) on hedging (Refer Note 1 below) Maximum Minimum b) on trading Maximum Minimum 914.500.194.037.157/2008-09 dated August 8.454.017 311.No.000 605.040 78.873 1.416 56.798.923 22.165 ii) Marked to market positions2 a) b) iii) iv) Credit exposure**3 Likely impact of one percentage change in interest rate (100*PV01) (Refer Note 2 below) a) b) on hedging derivatives on trading derivatives 269.553 Derivatives (Notional Principal Amount) a) b) For hedging For trading Asset (+) Liability (-) 5.715 150. PV01 for hedging derivatives is based on the position as at each month end during the ﬁnancial year.229 6. Trading portfolio includes accrued interest and represents net positions. in thousands) Sr.g) The details of derivative transactions as at March 31.074.925 56. Notes: 1. 2010 3.509 9.984.407. 2010 and March 31.778.428 3.922 5.636 Interest rate derivatives Year ended March 31.800 80. 2008.31/21. DBOD. No.018 10.052 69.795.682 10. BP.BC.204. cross currency swaps and currency futures are included in currency derivatives. Denotes absolute value of loss which the Bank could suffer on account of a change in interest rates by 1%.531 14. Includes accrued interest. 2. 2009 3.151 1 2 3 Options.2009 are given below: (Rs.034 367.642 17.266 560.230 286.
2 Provsision coverage Ratio The provision coverage ratio of the Bank as at March 31. 2010 0.43% (excluding technical write-offs).563 298. 382.6.YES BANK .181.462 136.254 1.878 March 31.859) 198.785 602.33% 105.6.570 (82.410 1.570 (iii) Movement of Net NPAs (a) Opening Balance (b) Additions during the year (c) Reductions during the year (d) Closing balance (iv) Movement of provisions for NPAs (excluding provision on standard assets) (a) Opening balance (b) Additions during the year (c) Write-off/write back of excess provision (d) Closing balance 437.142 21. 473. 105 .560 327. 18.254 84. 2010 computed as per the the RBI circular dated December 01.684 1.133.763 985.380.208 136.699 879. 2009 are given below : (Rs.343 1.833 129.805 255.208 849.952 472. (i) (ii) Particulars Net NPA to Net Advances Movement of NPAs (Gross) (a) Opening balance (b) Additions (Fresh NPAs during the year) Sub total (A) Less: (i) Upgradations (ii) Recoveries (excluding recoveries made from upgraded accounts) (iii) Write-offs Sub-total (B) Gross NPAs (closing balance) (A-B) March 31.208 437.216.06% 849.982.139 552.684 18. 2009 0.551 1.1 Non-Performing Asset The details of movement of gross NPAs. in thousands) No. 2009 is 78.980 thousands and the Bank has provided for Rs.THE PROFESSIONALS’ BANK OF INDIA 18.114 thousands for the same.753 136. 2010 and the year ended March 31.3 Concentration of NPAs Exposure (Funded + Non-Funded) of the Bank to top four NPA is Rs. net NPAs and provisions during the year ended March 31.6 Asset quality 18.879 826.5.6.020 418.104.22.168.010 411.
of Borrowers Amount outstanding* Of which amount restructured Sacriﬁce (diminution in the fair value) Sub-standard advances restructured No.455 - 3 435.27 0. 2008. DBOD.39 1.179.141 435. 1.5. The Bank has not writern back any standard asset provision pursuant to the issuance of the RBI Circular no.002/2008-2009 dated November 15.4 Sector-wise NPAs The details of Sector-wise NPAs as at March 31.863 thousands and Rs. 2010 and March 31. SME Debt Restructuring - Others 46 457. 2009. 18.7 Financial assets sold to Securitization/Reconstruction Company for Asset Reconstruction The Bank has not sold any ﬁnancial assets to Securitizations/Reconstruction Company for Asset Reconstruction during year ended March 31. 791.271 thousands.83/21. BP. of Borrowers Amount outstanding Of which amount restructured Sacriﬁce (diminution in the fair value) * of which amount classiﬁed as NPA during the year ended March 22.214.171.124 3 435. 2009. 2010 are as follows (Rs.141 435.5. 2010 and 2009 respectively.141 30.208 thousands as at March 31. 18. Medium and Large) Services Personal Loans Percentage of gross NPAs to gross advances in that sector 0.6.6. 106 . 2010 and March 31.239 360. 2010 are given below: No.455 46 457. 1 2 3 4 Sector Agriculture & allied activities Industry (Micro & Small. 2010 is Rs.5.9 Provisions for Standard Assets Provision on standard advances is Rs.23 18. of Borrowers Amount outstanding Of which amount restructured Sacriﬁce (diminution in the fair value) Total No.5 Restructured Accounts Details of Restructured Accounts as at March 31.239 360.141 30.01.190 18. of Borrowers Amount outstanding Of which amount restructured Sacriﬁce (diminution in the fair value) Doubtful advances restructured No.124.5.8 Non-performing financial assets purchased/sold from/ to other Bank The Bank has not purchased/sold any Non Performing ﬁnancial assets from/to Bank during year ended March 31. in thousands) CDR Mechanism Standard advances restructured No.BC.
761 107 .176 39.077.640.742. a) Speciﬁed assets and liabilities as at March 31.512.924 221.769 26.789. inter bank deposits have been excluded and employee strength as at year end has been considered.931.985.617 2.050 20.11 Asset Liability Management Maturity pattern of certain items of assets and liabilities. 2010 (Rs.073. In compiling the information of maturity pattern (refer 18.138 * Working funds represent the average of total assets as reported in Form X to RBI under Section 27 of the Banking Regulation Act.166 17.5.5. ‘000’s) As at March 31.THE PROFESSIONALS’ BANK OF INDIA 18.796 12.854 9.570 224.283 8.89% 2.‘000’s)** Proﬁt per employee (Rs.466 252. certain estimates and assumptions have been made by the management. (c) and (d) below).900.358 7.44% 2.500 231.576.745.291 17.11 (a).003 6.28% 2.521 73.924.YES BANK .362 43.583 37. in thousands) Maturity Buckets 1 day 2 days to 7 days 8 days to 14 days 15 days to 28 days 29 days to 3 months Over 3 months to 6 months Over 6 months to 12 months Over 1 year to 3 years Over 3 years to 5 years Over 5 years TOTAL Loans & Advances* 1. ** For the purpose of computation of business per employee (deposits plus advances).667.540 6.638. 2010 8.670 1.530.413 Deposits 1.326.880.374 2.639 7.140.490.778.243.929.553.75% 1.039 12.575 As at March 31.10 Business ratios Business Ratios i) ii) iii) iv) v) vi) Interest income as a percentage to working funds* Non-interest income as a percentage to working funds* Operating proﬁt as a percentage to working funds* Return on assets* Business (deposits + net advances) per employee (Rs.5.681.232 Investment Securities 2.24% 1.16% 3..039 4.619.209.060 48.002.666 Borrowings 1.526.717 14.640 13.877.59% 98.661 1.239 939.896 8. Assets and liabilities in foreign currency exclude off-balance sheet assets and liabilities.277 55.099.308 102.79% 152.786.840 45.806.950 70. 18. 2009 10. 1949.836 1.178 267.502.791.531. (b).496 47.852.890 13.
Correspondingly.098.288 3.000.367.392.185.747 1.603.213 43.654.617.851.831 279. loans & advances that have been subject to risk participation vide Inter-Bank Participation Certiﬁcates (‘IBPCs’) have been classiﬁed in the maturity bucket corresponding to the original maturity of such loans & advances gross of any risk participation.338.429 2.716 4.783 11.416 397.018/2009-2010 dated July 1.248.162 Liabilities 244 632.900 9.606 44.807 .178 6.424 17.752.694.978 1.569.794.981.670 161.2009.184 4.092 9.000 150.770.194 Deposits 3.936 3.397.104. DBOD.000 43.488 11.016.746.283. The aforesaid disclosure is in accordance with the revised maturity buckets pursuant to the issuance of the RBI circular No.000 14.910 10.04.014.061 29.496 14.638.381 1.4126.96.36.1990 4.770 *For the purpose of disclosing the maturity pattern.200 37.747 232.400 188.225.215 Borrowings 1.334 7.380 1.269 41.557.922 Investment Securities 341.452 147.298.181.684.105 188.8.131.524 7.520.597 1.311. in thousands) Maturity Buckets 1 day 2 days to 7 days 8 days to 14 days 15 days to 28 days 29 days to 3 months Over 3 months to 6 months Over 6 months to 12 months Over 1 year to 3 years Over 3 years to 5 years Over 5 years TOTAL 108 Assets 2.669.b) Speciﬁed assets and liabilities as at March 31.415 124.314 23.488 4. 2010: (Rs.859 125.379 181.325 381.223.916. 2009: (Rs.081 1.055.139.BC.125 287.030.092 71.468 3. 22/21.614 2.598.494 11.250 37. the balances have been reported net of IBPC maturities falling due in the respective buckets.000.126.446 40. c) Foreign currency denominated assets and liabilities as at March 31.411 7. BP.925 1. in thousands) Maturity Buckets 1 day 2 days to 7 days 8 days to 14 days 15 days to 28 days 29 days to 3 months Over 3 months to 6 months Over 6 months to 12 months Over 1 year to 3 years Over 3 years to 5 years Over 5 years TOTAL Loans & Advances* 3.715 6.
642.12 Exposures 18. i) Particulars Direct exposure Residential Mortgages Commercial Real Estate of which outstanding as advances Investments in Mortgage Backed Securities (MBS) and other securitized exposures Residential* Commercial Real Estate** As at March 31.710 558.050 13. representing the higher of funded and non funded limits sanctioned or outstanding to real estate sector.723 480.449.967 188.122 4. which are sensitive to asset price ﬂuctuations.200 9. real estate and commodities. is given in the table below: (Rs. 2010 As at March 31.706.766.830 8.498.770 Liabilities 27.030 3.994 801.YES BANK . 2009: (Rs.898. corporates for their real estate requirements and to individuals/ ﬁrms/ corporates against non-residential premises.242.680 2.921.1 Exposure to Real Estate Sector Assets 1.12.923 145.134 9.559 38.082.900 384. 109 .868 71.311. Such sectors include capital market.5.067 1.012 713.276.330 ii) Indirect exposure Fund based and Non-fund based exposures on National Housing Board and Housing Finance Companies TOTAL 16.624.164 152. in thousands) Sr.417 3. No.5.328.040 3.724 202.114 10.447 601. in thousands) Maturity Buckets 1 day 2 days to 7 days 8 days to 14 days 15 days to 28 days 29 days to 3 months Over 3 months to 6 months Over 6 months to 12 months Over 1 year to 3 years Over 3 years to 5 years Over 5 years TOTAL 18.900 *Comprises of individual mortgages (less than or equal to Rs. 2009 130. qualifying for priority sector lending. **Commercial real estate exposure include loans given to land and building developers for construction. The exposure.317 9.896 271.162 The Bank has lending to sectors. 15 lakhs each) on residential properties that are/will be occupied by the borrower or that are rented.THE PROFESSIONALS’ BANK OF INDIA d) Foreign currency denominated assets and liabilities as at March 31.
Particulars No.3 Risk Category wise Country Exposure As at March 31. i) Direct investment in equity shares.18.949 – – – 11. iii) advances for any other purposes where shares or convertible bonds or convertible debentures or units of equity oriented mutual funds are taken as primary security. 2010 As at March 31.e.345. As at March 31. 2009 – – – – – – – – .975 2.235 – – – – – 1. the country exposure of the Bank is categorised into various risk categories listed in the following table.819.086. in thousands) Sr. iv) advances for any other purposes to the extent secured by the collateral security of shares or convertible bonds or convertible debentures or units of equity oriented mutual funds i.996 1.5.889 682.670 As per the extant RBI guidelines.220 – – – – – 1. vii) bridge loans to companies against expected equity ﬂows/issues.963 11. ii) advances against shares/bonds/debentures or other securities or on clean basis to individuals for investment in shares (including IPOs/ ESOPs).090 10. ﬁnancing to stockbrokers for margin trading all exposures to Venture Capital Funds (both registered and unregistered) Total Exposure to Capital Market 18.12.000 – – – – – 2.985 815. and units of equity-oriented mutual funds.187 Provision held as at March 31. 2010.2 Exposure to Capital Market The exposure representing the higher of funded and non-funded limits sanctioned or outstanding to capital market sector is given in the table below: (Rs.12.788. 2009 860. the Bank’s funded exposure to any individual country did not exceed 1% of the total funded assets of the Bank (Rs.208 – – – – 32. v) secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and market makers.000 866. viii) ix) x) underwriting commitments taken up by the banks in respect of primary issue of shares or convertible bonds or convertible debentures or units of equity oriented mutual funds.905.762. vi) loans sanctioned to corporates against the security of shares/bonds/debentures or other securities or on clean basis for meeting promoter's contribution to the equity of new companies in anticipation of raising resources. convertible bonds.670 320. convertible debentures and units of equity-oriented mutual funds the corpus of which is not exclusively invested in corporate debt. convertible debentures. where the primary security other than shares/convertible bonds/convertible debentures/units of equity oriented mutual funds does not fully cover the advances.407. 2009 20. 2010 – – – – – – – – Exposure (net) as at March 31.186.883 Provision held as at March 31.5.173. convertible bonds. 2010 8.256. in thousands) Risk Category Insigniﬁcant Low Moderate High Very High Restricted Off-credit TOTAL 110 Exposure (net) as at March 31.
(vi) Steel Authority of India Limited where the sanctioned limit to capital funds was 19. which are tradable instruments).6 18. No.4 Concentration of Deposits As at March 31. representing 18.2 Disclosure of penalties imposed by RBI 2.461 For the year ended March 31. advance is computed as per deﬁnition of Credit Exposure in RBI Master Circular on Exposure Norms DBOD.03.00/2009-10 dated July 1. 112. 18. Federation Ltd.5.03. (iii) Bharat Petroleum Corporation Limited where the sanctioned limit to capital funds was 24.550 thousands.7 Overseas Assets. 2010.300) 16.725. 2009.12. 2009. The Bank does not have any overseas assets or NPA as at March 31. 2010. representing 15.80% of the total exposures.830.1 Miscellaneous Provisions made for Income Tax during the year The income tax expense comprises the following: (Rs. 2010 the top 20 advances aggregated to Rs.81% of the total deposit base.6. 2010.89%.15/13.70% and (vii) Punjab State Co-op.6. 18.5 Concentration of Advances As at March 31. 72. NPAs and Revenue For the year ended March 31.00/2009-10 dated July 1. During the year ended March 31.677. Supply and Mktg.6.15/13. in thousands) For the year ended March 31.91% of the total advances. 111 .550 thousands.891) – 2. 18.487.63%.293 thousands from bancassurance business during year ended March 31.725. 18. 18. 18. For this purpose.4 Details of Single Borrower Limit (SBL) and Group Borrower Limit (GBL) During the year ended March 31. Dir. 2009 1.416. the Bank has not exceeded single borrower or group borrower exposure limit. 2010 Current income tax expense Deferred income tax beneﬁt Fringe Beneﬁt Tax (FBT) TOTAL 18. representing 14.6 Concentration of Exposures As at March 31.70%. the Bank has exceeded single borrower exposure limit of 15% (but within 25% in case of oil companies who have been issued oil bonds and 20% for other companies) with the approval of the Board of Directors in the case of (i) Larsen & Toubro where the sanctioned limit to capital funds was 16.6. (v) Indian Farmers Fertiliser Cooperative Limited (IFFCO) where the sanctioned limit to capital funds was 19.745 No penalties have been imposed by RBI on the Bank during the ﬁnancial year 2009-10 (Previous year: Rs Nil). 2009.6. BC. Exposure is computed as per deﬁnition of Credit and Investment Exposure in RBI Master Circular on Exposure Norms DBOD. 72.THE PROFESSIONALS’ BANK OF INDIA 18. (MARKFED).70%.139 thousands (excluding certiﬁcate of deposits.YES BANK .6. the Bank does not have any overseas revenue. 2010 the deposits of top 20 depositors aggregated to Rs. where the sanctioned limit to percentage of capital funds was 19. 2010. 2010 the top 20 exposures aggregated to Rs. Dir.3 Fees/Remuneration received from bancassurance Bank has earned Rs. (iv) Hindustan Petroleum Corporation Limited where the sanctioned limit to capital funds was 24.352 (189.245 (226.620. (ii) MMTC India Ltd where the sanctioned limit to capital funds was 16.89%.6.63%. BC.800 1. 50. No.
(1994-96) Ultimate Table Ultimate Table 10% p.a.a.548 1. 2010 March 31.C. 2009 19.7 18.110 50. 60 yrs 20% p. in thousands) For the year ended For the year ended March 31.548 – – (6.576 10. 2010: (Rs.I. 2010 Present Value of Obligation at the beginning of the year Interest Cost Current Service Cost Past Service Cost Beneﬁts Paid Actuarial gain on Obligation Present Value of Obligation at the end of the year Net gratuity cost for the year ended March 31.696 1. 18. 2009 8% 7% L.a.519 – – 1.420 10. promotion and other relevant factors.C.015 As at March 31.791 21. 60 yrs 21.791 – 1.225) 25.110 – 24. 2009 Current Service Cost Interest Cost Expected Return on plan assets Net Actuarial gain recognised in the year Past Service Cost Expenses recognised The assumptions used in accounting for the gratuity plan are set out below: For the year ended For the year ended March 31. (1994-96) L.225) – 5.6. in thousands) As at March 31.519 1.595 1.7. 10% p. 2010 March 31.595 (Rs. 2010 comprises the following components: 25. 20% p.1 Disclosures as required by Accounting Standards Staff retirement beneﬁts The following table sets out the funded status of the Gratuity Plan and the amounts recognized in the Bank’s ﬁnancial statements as of March 31.8 Sponsored SPVs The Bank has not sponsored any SPV and hence there is no consolidation in Bank’s books.I. seniority.a.576 – (6.899 Discount Rate Expected Return on Plan Assets Mortality Future Salary Increases Disability Attrition Retirement Actuarial assumption on salary increase also takes into consideration the inﬂation. 112 .18.
548) 29.345 Discount Rate Expected Return on Plan Assets Mortality Future Salary Increases Disability Attrition Retirement 18. – 20% p.999 As at March 31. proprietary trading.345 2.2 Compensated Absences The actuarial liability of compensated absences of un-encashable accumulated privileged leave of the employees of the Bank as of March 31. 2009 7% NA L. 2008.887) 33. merchant banking etc. 2010 29. 113 . Corporate/Wholesale Banking: Includes lending.7. (1994-96) Ultimate Table 10% p. deposit taking and other services offered to corporate customers.YES BANK .I.C.C.a. 2010 8% NA L.7. deposit taking and other services offered to retail customers. 2007. 2009 – – 109. • • • • Treasury: Includes all ﬁnancial markets activities undertaken on behalf of the Bank's customers. maintenance of reserve requirements and resource mobilisation from other banks and ﬁnancial institutions. Other banking operations: Includes para banking activities like third party product distribution. – 20% p.a.487 – – (114.I. 2010 is given below: (Rs.a. 60 yrs Pursuant to the guidelines issued by RBI on Accounting Standard – 17 (Segment Reporting) – Enhancement of Disclosures dated April 18. effective from period ending March 31.893 – – (80.a. (1994-96) Ultimate Table 10% p.THE PROFESSIONALS’ BANK OF INDIA 18. the following business segments have been reported. 60 yrs As at March 31. Retail Banking: Includes lending.3 Segment Reporting As at March 31.054 117. in thousands) Present Value of Obligation April 01 Interest Cost Current Service Cost Past Service Cost Beneﬁts Paid Actuarial (gain)/loss on Obligation Present Value of Obligation March 31 The assumptions used in accounting for the compensated absences are set out below: As at March 31.
777.313 363.796.350 3.973 130.209 353.379.825.211 Total Segment Revenue Less: Inter-segment Revenue net of inter-segment Result Unallocated Expenses Operating Proﬁt Income Taxes Extra-ordinary Proﬁt/(Loss) Net Profit 10.452.888 363.068.941.583 1.353 13.112.267 (2.a) Segmental results for the year ended March 31.485.882.241 29.160 213.107 300.393 Other Information: Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities 72. 2010 are set out below: (Rs.308 568.192.854 2.333.219 9.718.460 6.264. in thousands) Business Segments Treasury Corporate / Wholesale Banking 20.107 114 .461 – 4.782.496 7.417 5.850) 29.037 21.738.794 63.913) 56.678 11.803.732 202.171.825.487.932.125 (838.042.436.709 32.764 Retail Banking Other Banking Operations 162.482.097.
294.038. 2009 are set out below: (Rs. Tax related accounts.620.859 27. Inter-segment transactions have been generally based on transfer pricing measures as determined by the Management. assets and liabilities have been either speciﬁcally identiﬁed with individual segment or allocated to segments on a systematic basis or classiﬁed as unallocated.459.511 Retail Banking Other Banking Operations 236. share capital and reserves and relevant interest and operating expenses which cannot be allocated to any segments have been classiﬁed as unallocated. expense.659. in thousands) Business Segments Treasury Corporate / Wholesale Banking 15.230 40.548. certain estimates and assumptions have been made by the Management. Bills payable.898 15.THE PROFESSIONALS’ BANK OF INDIA b) Segmental results for the year ended March 31. 2.263.564.205.957 Total Segment Revenue Less: Inter-segment Revenue net of inter.165 1.745 3.677. Innovative Perpetual Debt instruments.058 1.152.671 229. 42. 4. Accordingly.744.007.932.408 130. The business of the Bank is concentrated in India.077.385 (3.segment Result Unallocated Expenses Operating Proﬁt Income Taxes Extra-ordinary Proﬁt/(Loss) Net Profit 10.970 93. Income.820.535.242 2.382. Cash and non treasury related bank balances at branches.421 218.361 10.383. geographical segment results have not been reported.YES BANK .007.541 16.901 5. Tier II instruments. Fixed assets and related depreciation on ﬁxed assets.954 18. 3.039 7.001.920 18.479 106.111 (709. 115 . In computing the above information.028) 24.601.104 4.420 Other Information: Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Notes for segment reporting: 1.272.123) 55.540 229.660.901 188.357 5.269 3.559.
As per AS 18 “Related Party Disclosures”.7. 2009 are disclosed below: Individuals having significant influence: • • Mr. Managing Director & CEO Mr. Executive Director ( Up to April 25.A.@ N. Srikrishnan. Srikrishnan. Managing Director & CEO The following represents the signiﬁcant transactions between the Bank and such related parties.961 - Maximum Balance during the year Deposit Interest paid Receiving of services * @ 92.@ Maximum Balance Relatives of Wholetime during the year Directors / individual having significant influence N.4 a) Related Party Disclosures As per AS 18 “Related Party Disclosures”. 2008) b) Key Management Personnel (‘KMP’) (Wholetime Director) • • Mr.@ 69. the Bank’s related parties for the year ended March 31. 2006. Managing Director & CEO Mr.913* 3. Rana Kapoor. 2006. 2010 In the Financial Year 2009-10 there was only one related party in the said category. 2008) 116 .*@ N. prescribed by the Companies (Accounting Standards) Rules. during the year ended March 31.A. H.A. 2010: (Rs. 2010 are disclosed below: Individuals having significant influence: • Mr. Rana Kapoor. prescribed by the Companies (Accounting Standards) Rules. Executive Director ( Up to April 25. including relatives of above mentioned Key Management Personnel.428 Represents outstanding as of March 31. 2003 . the Bank’s related parties for the year ended March 31. Rana Kapoor. in thousands) Items/Related Party Category Wholetime Directors / individual having significant influence N. H.18. Rana Kapoor. Managing Director & CEO Key Management Personnel (‘KMP’) (Wholetime Director) • Mr. hence the Bank has not disclosed the details of transactions in accordance with the guidance on compliance with the accounting standards by banks issued by the RBI on March 29.A.
YES BANK .443 thousands (Previous year: Rs. including relatives of above mentioned Key Management Personnel.307 Represents outstanding as of March 31. 2009 As of March 31. 2009 there was only one related party in the said category. hence the Bank has not disclosed the details of transactions in accordance with the guidance on compliance with the accounting standards by banks issued by the RBI on March 29.862 2. in thousands) Lease obligations Not later than one year Later than one year and not later than ﬁve years Later than ﬁve years TOTAL 18. The future minimum lease obligations against the same were as follows: (Rs.417 17. 2010 the Bank had certain non-cancellable outsourcing contracts for information technology assets and properties on rent.5 As at March 31. during the year ended March 31.A. 18. 2003.791 3. 2010 603.124 - Maximum Balance during the year Deposit Interest paid Receiving of services * @ 76. in thousands) Items/Related Party Category Wholetime Directors / individual having significant influence N.038 The Bank reports basic and diluted earnings per equity share in accordance with Accounting Standard 20. 2010 was Rs. 2009 542. 823.466* 13.7.*@ 1.A.@ 64. Operating Leases Lease payments recognised in the proﬁt and loss account for the year ended March 31.596 As at March 31.676.849.THE PROFESSIONALS’ BANK OF INDIA The following represents the signiﬁcant transactions between the Bank and such related parties. 2009: (Rs. “Earnings per Share”.512.609 Maximum Balance Relatives of Wholetime during the year Directors / individual having significant influence N.105 thousands).339 3.645 2.844 773. 581.7. 117 .650. The dilutive impact is mainly due to stock options granted to employees by the Bank.943 568.6 Earnings Per Share (‘EPS’) As at March 31.
YBL ESOP (JESOP IV). 2006.038. March 31.393 14.420 10.749. of equity shares outstanding Net proﬁt/(loss) (Rs. a sub scheme of YBL ESOP and YBL PESOP II.00 305.The computation of earnings per share is given below: Particulars Basic (annualised) Weighted average no. a sub scheme of YBL JESOP V/ PESOP II are Performance Stock Option Plans and are also administered by the Board Remuneration Committee of the Bank. Under YBL ESOP (PESOP I) vesting takes place at the end of each year from the grant date for 25% of the options granted and are settled with equity shares being allotted to the beneﬁciary upon exercise. vesting takes place at the end of three years from the grant date for 50% of the options granted and at the end of ﬁve years for the balance.703.7 ESOP disclosures Statutory Disclosures Regarding Joining Stock Option Scheme: The Bank has ﬁve Employee Stock Option Schemes viz.305 3.24 Year ended March 31. 30 % vest at the end of second year and balance 40% vest at the end of third year. JESOP I is administered by the Board Remuneration Committee of the Bank and was in force for employees joining the Bank on or before March 31. 2007 and March 31. Joining Employee Stock Option Plan III (JESOP III). 30% of the granted options vest at the end of ﬁrst year. of equity shares outstanding Net proﬁt/(loss) (Rs. 2005. a sub scheme of YBL JESOP V/ PESOP II are also administered by the Board Remuneration Committee of the Bank and are in force for employees joining the Bank from time to time. All the aforesaid schemes have been approved by the Board Remuneration Committee and the Board of Directors and were also approved by the members of the Bank. YBL ESOP (consisting of two sub schemes) and YBL JESOP V/ PESOP II (consisting of two sub schemes).308. Options under all these plans are granted for a term of 10 years (inclusive of the vesting period) and are settled with equity shares being allotted to the beneﬁciary upon exercise. Joining Stock Option Plan I (JSOP I). a sub scheme of YBL ESOP and YBL JESOP V.14 10.) Diluted (annualised) Weighted average no.’ 000) Diluted earnings per share (Rs. Under YBL PESOP II. 321.114 4.’ 000) Basic earnings per share (Rs. Under the above Plans.420 10. Joining Employee Stock Option Plan II (JESOP II).777.331. JESOP II and JESOP III are administered by the Board Remuneration Committee of the Bank and were in force for employees joining the Bank up to March 31. 2010 Year ended March 31.65 296.393 15. YBL ESOP (PESOP I). 2008.985 3.038. The schemes include provisions for grant of options to eligible employees.87 10.587 4. All the grants under JESOP I were made before the IPO of the Bank.777.7.) 18. 2009 118 .) Nominal value per share (Rs.00 299.
September 2007 2008 18.770.74% JESOP-IV 7.96% ~8. 2010.76% 1.000 459.000 725.000 – – 392. 2008 – – – – – – – – – – – – – – The Bank has charged Rs.995.44% The price of the underlying share in market at the time of option grant(Rs.571.45% 6. certain estimates and assumptions have been made by the Management which have been relied upon by the auditors.000 August 29.750 843.5 yrs 39.000 1.250 1.13% ~ 1.13% 1.5 yrs to 7.YES BANK . being the intrinsic value of the stock options granted for the year ended March 31.267.54% ~6.51% 1. 14.5% 1.39 168.47 per share instead of Rs.94% ~ 64.23% 6.5 yrs to 7.5 yrs to 7.92% YBL PESOP-I YBL PESOP-II 5.500 – 645.500 2.5 yrs 61.55% 4.51% 1. 13.539 212.76% 4.835.55% 4.48 In computing the above information.102.924.74% ~ 82.87 per share.300 4.5 yrs 35.500 – 170.81% 6.000 – 632.23% JESOP-III 7.779 October 27.92% 1. for pricing and accounting of options. September 18.000 13.5 yrs to 6 yrs 40. Nil.500 1.5% JESOP-V 5.000 7.079 thousands.48% ~8.31% ~ 82.5% Not Listed 92.82% ~ 41. 359.13% ~ 1. 2006 JESOP IV YBL PESOP I YBL PESOP II 4.150 481.850 1.THE PROFESSIONALS’ BANK OF INDIA A summary of the status of the Bank’s stock option plans is set out below: Particulars Opening balance Add : Less : Less : Option granted during the year Options exercised during the year Options lapsed during the year Closing balance Approved by shareholders on Options granted and exercised during the year Options granted and eligible for exercising and exercised during the year JSOP – I 2.862.5 yrs to 7. Had the Bank adopted the Fair Value method (based on Black-Scholes pricing model).000 1. 15.300 8. 2007 4.500 3. 14.282.5 yrs 35.57 175.) JSOP-I 6.73% ~7.75 per share instead of Rs.646.165. net proﬁt after tax would have been lower by Rs. and diluted earnings per share would have been Rs. the basic earnings per share would have been Rs.58% Expected dividends 1.961 July 24.5 yrs to 7.5 yrs to 4.65 per share.5% 1.005.550 50.5 yrs 61. 2005 JESOP –III 3. 2004 JESOP – II 2.286.61 100.98% ~8.13% ~ 1.5 yrs JESOP-II 6.893.97% ~ 184.108.40.2060 August 29.950 April 26.31%~ 82.570 – 1.150 JESOP V 722. The following assumptions have been made for computation of the fair value: Particulars Risk free interest rate Expected life Expected volatility 50. 119 .83 121.27% ~8.76% 1.541 18.32 162.20% ~8.363.
The ﬂoating provision as at March 31.8.461 154. is included under other assets and the corresponding credits have been taken to the proﬁt and loss account. 2010 46.668 (19. in thousands) Particulars Provision for taxation Provision for investments Provision for standard advances Provision made/write-off for non performing advances/off balance sheet exposure Other provisions TOTAL 18.487.065 thousands (Previous year: NIL).855.8 18. in thousands) Particulars Deferred tax asset Depreciation Provision for gratuity and unutilized leave Provision for Non-Performing Assets Share Issue Expenses Amortisation of premium on HTM securities Provision for standard advances Other Provisions Proﬁt on Securitization Deferred tax asset 18. 2009 are given below: (Rs.247 11.2 Drawdown on Reserves The Bank has utilised the share premium received from issue of shares under Qualiﬁed Institutions Placements (QIP) to meet the share issue expenses of Rs.699 64. 2010 and March 31. 2010.139 40.238.7. 2009 1.18.8 Deferred Taxation The net deferred tax asset of Rs.162 463. 2010 2.674 41. 652.563 205.526 337. 2009 14. 2010 and year ended March 31. 2010 was Nil (Previous year: Nil).481 37 108.620.265) 2.046 9. 120 .037 The breakup of provisions of the Bank for the year ended March 31.1 Other Disclosures Movement in Floating Provisions March 31.035 27.410) 265. 146.039 (50.390 652.476 54.923 March 31.610 46.662 18.745 (199.335) 3.928 As at March 220.127.116.115 876. The components that give rise to the deferred tax asset included in the balance sheet are as follows: (Rs.928 thousands as at March 31. 18.217 90.9 Provisions and Contingencies As at March 31.391 570.103 388.129 The Bank has not created or utilised any ﬂoating provisions during the year ended March 31. 2009.
2010 and March 31.489 5 Year ended March 31. of Awards implemented during the year No.242 – Form: Collection / Payout Agent.000. Small and Medium Enterprises Under the Micro. 2010 1 500. 2010 i) ii) iii) iv) B.8. 2009 40 65. of unimplemented Awards at the end of the year Dues to Micro. of Complaints pending at the beginning of the Year No.8. of Complaints received during the Year No.4 No.242 111. 2009. 25.8. 18. 2006 (MSMED) which came into force from October 02.8.351.000. there have been no reported cases of delays in payments to micro.3 A.THE PROFESSIONALS’ BANK OF INDIA 18.444 1. of Complaints pending at the end of the year Awards passed by the Banking Ombudsman 8 3.444 – Form: Collection / Payout Agent.486 3.240. small and medium enterprises or of interest payments due to delays in such payments. in thousands) Nil Nil Nil Nil Particulars Total number of transactions Book value of loan assets securitized Sale consideration received for the securitized assets Net gain / (loss) on sale on account of securitization Additional consideration realised in respect of accounts transferred in earlier years Form and quantum (outstanding value) of services provided by way of post-securitization asset servicing. etc. No. 2006. 25. of Complaints redressed during the year No. Value of Service Value of Service charges maximum of charges maximum of Rs. of unimplemented Awards at the beginning of the year No. Disclosure of complaints Customer Complaints Year ended March 31.YES BANK . of Awards passed by the Banking Ombudsman during the year No. Rs. Year ended March 31. Year ended March 31.000 501. 18. On the basis of information and records available with the management and conﬁrmation sought by the management from suppliers on their registration with the speciﬁed authority under MSMED.5 Securitization Transactions (Rs. 2010 i) ii) iii) iv) 18.6 Letter of comfort The Bank has not issued any letter of comfort during the year ended March 31. certain disclosures are required to be made relating to Micro. Small and Medium enterprises. 121 . Small and Medium Enterprises Development Act.000 65.
forward rate exchange and derivative contracts agreements. thus the aggregate fair values of derivative ﬁnancial assets and liabilities can ﬂuctuate signiﬁcantly. Currency swaps are commitments to exchange cash ﬂows by way of interest/principal in one currency against another. based on predetermined rates. 3. Kapur Non Executive Chairman Arun K.L. Liability on account of forward The Bank enters into foreign exchange contracts. currency options. The acknowledged as debts Bank does not expect the outcome of these proceedings to have a material adverse effect on the Bank’s ﬁnancial conditions.7 Sr.8. 2. Documentary credits such as letters of credit enhance the credit standing of the customers of the Bank. results of operations or cash ﬂows. 4.Value dated purchase of securities contingently liable . Other items for which the Bank is . For and on behalf of the Board of Directors YES BANK Limited Rana Kapoor Managing Director & CEO Bharat Patel Director S. Description of contingent liabilities Contingent Liabilities Brief Claims against the Bank not The Bank is a party to various legal proceedings in the normal course of business.8. therefore.Foreign Exchange Contracts ( Tom & Spot) 18.Capital commitments .18. endorsements and other obligations As a part of its commercial banking activities the Bank issues documentary credit and guarantees on behalf of its customers. Guarantees generally represent irrevocable assurances that the Bank will make payments in the event of the customer failing to fulﬁl its ﬁnancial or performance obligations. acceptances. 1. Forward exchange contracts are commitments to buy or sell foreign currency at a future date at the contracted rate. The notional amounts of ﬁnancial instruments of such foreign exchange contracts and derivatives provide a basis for comparison with instruments recognised on the balance sheet but do not necessarily indicate the amounts of future cash ﬂows involved or the current fair value of the instruments and. Guarantees given on behalf of constituents. currency swaps and interest rate swaps with interbank participants and customers. The derivative instruments become favourable (assets) or unfavourable (liabilities) as a result of ﬂuctuations in market rates or prices relative to their terms. The aggregate contractual or notional amount of derivative ﬁnancial instruments on hand. Interest rate swaps are commitments to exchange ﬁxed and ﬂoating interest rate cash ﬂows. No.8 Prior period comparatives Previous period’s ﬁgures have been regrouped where necessary to conform to current year classiﬁcation. the extent to which instruments are favourable or unfavourable and. Mago Director Mumbai 27 April 2010 122 Rajat Monga Chief Financial Ofﬁcer Sanjeev Kapoor Company Secretary . do not indicate the Bank’s exposure to credit or price risks.
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