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yes bank – Version 2.

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Building the Best Quality Bank of the World in India
AudItors’ report on the fInAncIAl stAtements
1. We have audited the attached balance sheet of the Yes Bank Limited (‘the Bank’) as at 31 March, 2011, 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 : i) ii) iii) iv) v) 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 explanations given to us the Central Government has, till date, not prescribed any cess payable under section 441a of the Companies act, 1956;

2.

3. 4.

vi)

vii) On the basis of written representations received from the Directors as on 31 March, 2011, and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31 March, 2011 from being appointed as a Director under section 274(1)(g) of the Companies act, 1956; and viii) 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 : a) b) c) in the case of the balance sheet, of the state of affairs of the Bank as at 31 March, 2011; in the case of the profit and loss account, of the profit of the Bank for the year ended on that date; and in case of cash flow statement, of the cash flows for the year ended on that date. For B S R & Co. Chartered Accountants Firm’s Registration no.: 101248W Mumbai 20 april, 2011 Akeel Master Partner Membership no.: 046768 83

financial statements
BAlAnce sheet As At mArch 31, 2011
(` 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 18 12 6 7 8 9 10 11 1 2 3 4 5

As at March 31, 2011 3,471,471 34,469,280 459,389,318 66,909,092 25,830,728 590,069,889 30,760,155 4,199,609 188,288,378 343,636,387 1,324,296 21,861,064 590,069,889 1,362,253,799 1,701,444

As at March 31, 2010 3,396,673 27,498,830 267,985,666 47,490,761 17,453,177 363,825,107 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

as per our report of even date attached For B S R & Co. Chartered Accountants Firm’s Registration no.: 101248W Akeel Master Partner Membership no.: 046768 For and on behalf of the Board of Directors Yes Bank Limited Rana Kapoor Managing Director & CEO Arun K. Mago Director Mumbai april 20, 2011 84 Bharat Patel Director Rajat Monga Chief Financial Officer S.L. Kapur Non-Exectuive Chairman Sanjeev Kapoor Company Secretary

yes bank – Version 2.0

Building the Best Quality Bank of the World in India
profIt And loss Account for the yeAr ended mArch 31, 2011
(` 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 Dividend paid for last year and tax thereon Proposed Dividend Tax (including surcharge and education 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 (`) Diluted (`) (Face Value of equity share is ` 10/-) as per our report of even date attached For B S R & Co. Chartered Accountants Firm’s Registration no.: 101248W Akeel Master Partner Membership no.: 046768 For and on behalf of the Board of Directors Yes Bank Limited Rana Kapoor Managing Director & CEO Arun K. Mago Director Mumbai april 20, 2011 Bharat Patel Director 18 15 16 17 13 14

Year Ended March 31, 2011 40,417,473 6,232,709 46,650,182 27,948,174 6,798,103 4,632,527 39,378,804 7,271,378 6,729,526 14,000,904 19,924 1,817,845 137 410 867,868 144,142 11,150,578 14,000,904

Year Ended March 31, 2010 23,697,097 5,755,320 29,452,417 15,817,570 5,001,531 3,855,923 24,675,024 4,777,393 4,057,754 8,835,147 315,182 1,194,348 509,501 86,590 6,729,526 8,835,147

21.12 20.25

15.65 14.87

S.L. Kapur Non-Exectuive Chairman Sanjeev Kapoor Company Secretary

Rajat Monga Chief Financial Officer

85

cash flow statements
cAsh floW stAtement for the yeAr ended mArch 31, 2011
(` in thousands)

Year Ended March 31, 2011 Cash flow from operating activities 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 348,391 314,001 (71,892) 520,976 392,628 140,408 4,403 12,570,700 Adjustments for: Increase in Deposits Increase in Borrowings Increase/(Decrease) in Other Liabilities Increase in Investments Increase in advances Decrease/(Increase) in Other assets 191,403,652 7,691,434 2,841,344 (52,458,952) (122,063,524) (5,280,610) 22,133,344 Payment of direct taxes Net cash generated from operating activities (A) (4,197,730) 30,506,314 10,921,785

Year Ended March 31, 2010

7,264,854 302,603 264,329 154,103 388,655 876,039 (50,335) 5,917 9,206,165

106,291,451 3,747,695 (374,956) (11,438,094) (98,760,799) 3,687,663 3,152,960 (2,757,834) 9,601,291

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227.593) 6.540) (84.262) (33.961) 11.946) (19.237.798 765.046 26.959.: 046768 For and on behalf of the Board of Directors Yes Bank Limited Rana Kapoor Managing Director & CEO Arun K.122) (34.682 (15.732.099 6.959.155 4. Mago Director Mumbai april 20.887) 4.764 (256.965. 2010 (146.250.779.437 19.384 26.972.: 101248W Akeel Master Partner Membership no.557) (20.L.884 10.199.505.483 34.732.567) 6.483 S.633 820.236 8.527.953.909.281 26.061.760.797 (9.464. 2011 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 Tier II Debt raised Innovative Perpetual Debt raised Proceeds from issuance of equity shares share Premium received thereon Dividend paid during the year Tax on dividend Net cash generated from financing activities (C) Net increase in cash and cash equivalents (A+B+C) 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 For B S R & Co.739 7.222 17.191.0 Building the Best Quality Bank of the World in India (` in thousands) Year Ended March 31.yes bank – Version 2.227.732.939 (511. 2011 Bharat Patel Director Rajat Monga Chief Financial Officer 30. Chartered Accountants Firm’s Registration no.000 426.483 19.609 34.000 74.000 2.764 9.958. Kapur Non-Exectuive Chairman Sanjeev Kapoor Company Secretary 87 .269) Year Ended March 31.

633.1.673 3.083 3. Investment Reserve Opening balance additions during the year [Refer sch 18.141.5.1] Closing balance III. 2011 SCHEDULE 1 – CAPITAL Authorized Capital 400.469.939 (54.147.000.471. 2010 : 339.000 3.819.1.830 88 .526 27.schedules forming part of the Balance sheet (` in thousands) As at March 31.269 equity shares of ` 10/.238 6.5.556 806. 2010: 400.222 16.048 2.1] Reduction during the year [Refer sch 18. 2010 4.each (March 31.000 As at March 31.667.471 3.399 10.729.280 1.5.774.065) 16. Capital Reserve Opening balance additions during the year [Refer sch 18.2] Closing balance IV.each) [Refer sch 18.471.000.298 19. Share Premium Opening balance additions during the year [Refer sch 18.5.1. Statutory Reserves Opening balance additions during the year Closing balance II.556 765.828.471 4.000.348 2.194.124 equity shares of ` 10/.646.498.578 34.298 212 212 6.150.1] TOTAL SCHEDULE 2 – RESERVES AND SURPLUS I.121.1.819. subscribed and paid-up capital 347.1.890 1.924 1.182 1.3] Closing balance V.845 4.000 equity shares of ` 10/.116 315.396.000.531. Balance in Profit and Loss Account TOTAL 212 137 349 11.5.238 1.191.121.396.000 equity shares of ` 10/.828.673 1.each) Issued.222 (146.817.447) 17.each (March 31.

000 224.970 8.917 14. I.666 267.000 28.734 596.985.909.177 89 .975 4.638.000 12.992. Borrowing in India i) IPDI ii) Upper Tier II Borrowings iii) Lower Tier II Borrowings TOTAL (A) B.666 4.131 459. Term Deposits i) From banks ii) From others TOTAL B.674 17.329.097.000 10.712. II.472 2.863 12.830.666 267.336.179.909.000 12.500 4.630.350.389.627.265 47.170.318 182.017 17.996 4.453.293. Others (including provisions) .852.904 26.579.610.926.717.407. 4.537 1.318 459.088.010 1. Other Borrowings* Borrowings in India i) Reserve Bank of India ii) Other banks iii) Other institutions and agencies ** Borrowings outside India TOTAL (A) (B) TOTAL (A+B) TOTAL (I+II) As at March 31.012.699 66.Others TOTAL 766. Inter-office adjustments (net) III.392.717.0 Building the Best Quality Bank of the World in India (` in thousands) As at March 31.092 6.930.091 1.323 38. Borrowings outside India i) IPDI ii) Upper Tier II Borrowings iii) Lower Tier II Borrowings TOTAL (B) TOTAL (A+B) II. 2011 SCHEDULE 3 – DEPOSITS A. 2010 : nil).393 2.838 17.782 33.389.326.481.007 5.949.336 25.917 18.761 *Of the above secured borrowings are nil (March 31.836.086.490.185.000 5.531 381.989 3. **Represents refinance borrowing SCHEDULE 5 – OTHER LIABILITIES & PROVISIONS I.010. Bills payable II.496 B.985.240.000 8.755 267.728 1. 2010 856.617.700. Proposed Dividend (including tax on dividend) V.000 17.591 25.363 30. Innovative Perpetual Debt Instruments (IPDI) and Tier II Debt A.389. I.418 4.380 213.yes bank – Version 2. Deposits of branches in India Deposits of branches outside India TOTAL SCHEDULE 4 – BORROWINGS I.000 5.044.318 459.166. Interest accrued IV.985.000 4.638 24.235.000 222.339. A.013. Savings Bank Deposits III.674 8. Demand Deposits i) From banks ii) From others II.496 21.Provision for standard advances .949.360.393 33.

492.736 6.377. 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 iii) lending under reverse repo (RBI and Banks) [Refer sch 18. Mortgage Backed securities (MBs) and asset Backed securities (aBs).601 135.596.036 2.099.288.155 As at March 31.828. CDs.608 2.schedules forming part of the Balance sheet (` in thousands) As at March 31.(f)] TOTAL (I) Outside India i) in current accounts ii) in other deposit accounts iii) Money at call and short notice TOTAL (II) TOTAL (I+II) 595.199.380 20. Balances with Reserve Bank of India .001 2.647 19.288.001 4.In other account TOTAL SCHEDULE 7 – BALANCES WITH BANKS.020.168 40.099 90.464 2.421 40. Investments outside India TOTAL *Includes investments in Pass Through Certificates (PTC).767 827.864.128 8.197.953.118.914. 2011 SCHEDULE 6 – CASH AND BALANCES WITH RESERVE BANK OF INDIA I.700 4.832. mutual fund units etc) B.377.822.483.184 1.779.413 102.4. MONEY AT CALL AND SHORT NOTICE I.000 975.712.648 1.228 1.997 102. SCHEDULE 8 – INVESTMENTS (net of provisions) A. Cash in hand II.949 30.660.378 67.760.2.521 24. 107.384 II.188 188.099. 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.452 19.164. 2010 356.In current account .000 1.413 90 .472.378 188.206 30.609 123.

392 343.387 As at March 31. i) ii) iii) secured by tangible assets Covered by Bank/Government Guarantees Unsecured * TOTAL 5.231 8.226.280 175.708.278 123.300 thousands). 2011 SCHEDULE 9 – ADVANCES A.662.513.yes bank – Version 2. 2010 4.429 1.232 * includes advances of ` 55.931.348 252. authority etc.931.636. I.931.360.387 200.723 273. Advances outside India TOTAL – 343.577 142.0 Building the Best Quality Bank of the World in India (` in thousands) As at March 31.030 121.617 thousands (March 31. 2010 ` 42. 2010 ` 7.632 64. licenses.292 221.307.636. Advances in India i) ii) iii) Priority sectors Public sector Banks 90.032 343.636. C.485.936 thousands) for which security documentation is either being obtained or being registered and of ` 391.387 II.232 iv) Others 91 .232 – 221.833 thousands (March 31.578.636.815 174.463 42.387 44.995.629. overdrafts and loans repayable on demand Term loans TOTAL B.480 thousands) for which intangible securities such as charge over the rights. have been obtained as security and estimated value of which is ` 16.396 788.570.724.521.551.360.143.334. i) ii) iii) Bills purchased and discounted Cash credits.723.644 thousands (March 31.318 221.954 221.232 97.414 343.369 262.884 2.931.916.890. 2010 ` 450.

595 23.In India .039 23.Outside India VI.100 609.586 11.812 1.single currency Interest Rate swaps . 2011 SCHEDULE 10 – FIXED ASSETS I. 2010 1.655. Premises Other Fixed Assets (including furniture and fixtures) at cost as on March 31 of preceding financial year additions during the year Deductions during the year accumulated depreciation to date Capital work-in-progress TOTAL SCHEDULE 11 – OTHER ASSETS I.052 546.772 10. 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 .976 652. Interest accrued advance tax and tax deducted at source Deferred tax asset (net) [Refer sch 18.815 90.574.799 62.948.620 1.7.Capital commitments . II.362.625 6.schedules forming part of the Balance sheet (` in thousands) As at March 31. III.8] Others TOTAL SCHEDULE 12 – CONTINGENT LIABILITIES I.512.222 29.846 (24.257.110.299 .664 2.064 2.825 6.063.295.097. II.791.591 21.933 576.327 1.422 79. Guarantees given on behalf of constituents .018.581.140.315 258.177) 1.296 - As at March 31.887 (31.647 39.766.861.264 8.970. IV. IV.681.Others V.Foreign exchange Contracts (Tom & spot) TOTAL 92 VII. acceptances.852 13.008.324.253.994 4.715 74. II.172 379.250 70.524.879.178.643.458.830) (1. III.907.074 1.423 176.030 513.675) (923.928 2.099 44.653.824) 1.064. endorsements and other obligations .057.154. Other items for which the bank is contingently liable 1.817 146.060.477.707 1.Value dated purchase of securities .772.

697.097 SCHEDULE 14 – OTHER INCOME I.891.236 (5.084 986.623) (4. VI.273. 2011 SCHEDULE 13 – INTEREST EARNED I.332 23.232. building and other assets Profit on exchange transactions (net) Income earned by way of dividends etc.660 440.013 5.755.858. II.403) 685.892 86. Interest/ discount on advances/ bills Income on investments Interest on balances with Reserve Bank of India and other inter-bank funds Others TOTAL 29.473 Year Ended March 31.860 36. exchange and brokerage Profit/(Loss) on the sale of investments (net) Profit/(Loss) on the revaluation of investments (net) Loss on sale of land.257 5.238 10. from subsidiaries.549 65.917) 543.320 VII.756 145. III.114 187. Miscellaneous income 93 . companies and/or joint ventures abroad/in India 5.869. IV.0 Building the Best Quality Bank of the World in India Schedules forming part of the Profit and Loss Account (` in thousands) Year Ended March 31. 2010 17.709 3.791.572 40.yes bank – Version 2. III.315 TOTAL 6.664 (463. II. V.715. IV.417. Commission.

III.274.1] Provision for investments Provision for standard advances Provision/ write off for non-performing advances/ off balance sheet exposures Other provisions TOTAL 3.103 2.527 2.391 4.457 4.407 (71.374 348.855. II.356 148.570 SCHEDULE 16 – OPERATING EXPENSES I. Provision for taxation [Refer sch 18.174 Year Ended March 31.587.208 206. III.6. allowances and expenses auditors’ fees and expenses 3.182 274.783 4.(` in thousands) Year Ended March 31. IV.411 3.068 TOTAL 6. telephones. 2011 SCHEDULE 15 – INTEREST EXPENDED I.408 4.948. V.027 72.480 88.931 302.618 107. XII. Postage. taxes and lighting Printing and stationery advertisement and publicity Depreciation on Bank’s property Directors’ fees.673 59.025.976 392.941. IV.650.352 866. II.001.461 154.103 388.892) 520.628 140. III.335) 3.874 418. VII.744 257.568.150 8. V.495 39. Law charges IX.817.517 27. II.101 5. Interest on deposits Interest on Reserve Bank of India/ inter-bank borrowings/ Tier I and Tier II debt instruments Others TOTAL 22.415 15. Payments to and provisions for employees Rent.140 45.923 94 .074 6. Repairs and maintenance Insurance Other expenditure SCHEDULE 17 – PROVISIONS AND CONTINGENCIES I. etc. X.039 (50.515 1. XI. 2010 12.768 970.603 3.885 730. telegrams.487.531 VIII.369 38. VI.798.623.632.417 8.534.655 876.

1949. except in the case of non-performing assets. Further.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. the accounting standards (as) prescribed by the Companies (accounting standards) Rules.yes bank – Version 2. • • • • • • • • Interest income is recognized in the profit and loss account on accrual basis. Yes Bank Limited is a publicly held Bank engaged in providing a wide range of banking and financial services. Yes Bank Limited is a banking company governed by the Banking Regulation act. Commission on guarantees issued by the Bank is recognized as income on yearly basis over the period of the guarantee. ashok kapur and Mr. Commission on Letters of Credit (‘LC’) issued by the Bank is recognized as income at the time of issue of the LC.0 Building the Best Quality Bank of the World in India notes forming part of the Accounts for the year ended march 31.4. which is recognized at the time of issue of the guarantee. Income on discounted instruments is recognized over the tenure of the instrument on a straight line basis. 18. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. 18. 18. The Bank received the licence to commence banking operations from the Reserve Bank of India (‘RBI’) on May 24. 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). 2011 18. 95 .The Bank follows the accrual method of accounting (except where otherwise stated). 2004.1 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. the guidelines issued by the Reserve Bank of India (RBI) from time to time.4 18. Dividend income is recognized when the right to receive payment is established. Rana kapoor. 2006 to the extent applicable and practices generally prevalent in the banking industry in India. except for guarantee commission not exceeding ` 100 thousands. and the historical cost convention.3 Use of estimates The preparation of financial statements requires the management to make estimates and assumptions that are considered while reporting amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and income and expenses during the reporting period. 2004.1 Background Yes Bank Limited (the ‘Bank’ or ‘Yes Bank’) is a private sector Bank promoted by the late Mr. Other fees and commission income are recognized on accrual basis. 1949. The Bank was incorporated as a limited company under the Companies act. Revenue in certain structured transactions where interest income is partially receivable in advance is recognized when due. 2003. Interest on non-performing assets is recognized upon realization as per the prudential norms of the RBI. Future results could differ from these estimates. 1956 on november 21. Revenue from financial advisory services is recognized in line with milestones achieved as per terms of agreement with clients. any revision to accounting estimates is recognized prospectively in current and future periods. Yes Bank was included to the second schedule of the Reserve Bank of India act. 1934 with effect from august 21.

net depreciation. Depreciation carried. paid at the time of acquisition are charged to the profit and loss account. else.04. Treasury Bills. securities which are not classified in the above categories are classified under the aFs category. if any. Transfer of investments from aFs to HFT or vice a versa is done at the book value. suitable provisions are made. In the case of transfer of securities from HTM to aFs / HFT category. is in accordance with RBI guidelines. The market/fair value of unquoted government securities included in the aFs and HFT category is determined as per the rates published by FIMMDa. valuation is carried out by applying an appropriate mark-up (reflecting associated credit risk) over the Yield to Maturity (‘YTM’) rates of government securities. if any. 2010 and Fixed Income Money Market and Derivative association (FIMMDa) guidelines FIMCIR/2010-11/72/March 11. e) Valuation Investments categorized under aFs and HFT categories are marked to market on a periodical basis as per relevant RBI guidelines. Investments that the Bank intends to hold till maturity are classified under the HTM category. d) Transfer between categories Reclassification of investments from one category to the other. 96 . For the purpose of disclosure in the balance sheet. as per relevant RBI guidelines.18. in any classification mentioned in schedule 8 (‘Investments’) is recognized in the profit and loss account. Basis of classification securities that are held principally for resale within 90 days from the date of purchase are classified under the HFT category. at Re. Commercial Paper and Certificates of deposit being discounted instruments. Investments classified under the HTM category are carried at their acquisition cost and any premium over the face value. under each classification is ignored. are valued at carrying cost. 2011. a diminution. The market/fair value applied for the purpose of periodical valuation of quoted investments included in the aFs and HFT categories is the market price of the scrip as available from the trades/quotes on the stock exchanges and for subsidiary General Ledger (‘sGL’) account transactions. “available for sale” (‘aFs’) or “Held to maturity” (‘HTM’) at the time of its purchase.4. is amortised on a straight line basis over the remaining period to maturity. BC. Transfer of scrips from aFs / HFT category to HTM category is made at the lower of book value or market value. a) Accounting and Classification Investments are recognized using the value date basis of accounting. such mark up and YTM rates applied are as per the relevant rates published by FIMMDa.141/ 2010-11 dated July 1. on such investments is also transferred from one category to another. Further. in the case of unquoted fixed income securities (other than government securities). other than temporary in the value of investments classified under HTM has taken place. b) c) Cost of acquisition Costs such as brokerage pertaining to investments. The net appreciation if any. 1 per company. paid on acquisition. are categorized as “Held for trading” (‘HFT’). Unquoted equity shares are valued at the book value if the latest balance sheet is available. 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. except to the extent of depreciation previously provided. Where in the opinion of management. the prices as periodically declared by Primary Dealers association of India jointly with FIMMDa. if done. all investments. In compliance with RBI guidelines.2 Investments Classification and valuation of the Bank’s investments are carried out in accordance with RBI Circular DBOD no. the investments held under HTM at a discount is transferred to aFs / HFT category at the aquisition price and investments placed in the HTM category at a premium is transferred to aFs / HFT at the amortized cost. amortization expense of premia on investments in the Held to Maturity (HTM) category is deducted from interest income. The book value of individual securities is not changed consequent to periodic valuation of investments. Quoted equity shares are valued at their closing price on a recognized stock exchange. 18/ 21. BP.

Others’. prescribed by RBI from time to time. effective april 1. 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. 18. the Bank reckons the net asset value obtained from the asset reconstruction company from time to time.3 Advances advances are classified as performing and non-performing based on the relevant RBI guidelines. In addition to the provisions required according to the asset classification status. amounts recovered against debts written off in earlier years and provisions no longer considered necessary based on the current status of the borrower are recognized in the profit and loss account. moderate. based on the RBI guidelines. inter-bank participation certificates issued and bills rediscounted. 2010. interest in suspense.‘Other liabilities and provisions . accordingly. securities sold under agreements to repurchase (Repos) and securities purchased under agreements to resell (Reverse Repos) are treated as collateralized borrowing and lending transactions respectively. 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. very high.4.yes bank – Version 2. Mutual Fund units are valued at their net asset value on the reporting date. high. Revenues thereon are accounted as interest income. securitized assets are derecognized 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.0 Building the Best Quality Bank of the World in India at the end of each reporting period. low. These securitization transactions are accounted for in accordance with the RBI guidelines on “securitization of standard assets”. 97 . in cases where the cash 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. 2010 repurchase (repos) and reverse repurchase (reverse repos) transactions were accounted for on outright sale and outright purchase basis respectively in line with then applicable RBI guidelines. for valuation of such investments at each reporting date. money paid to RBI are debited to lending account and reversed on maturity of the transaction. The first leg of the repo transaction is contracted at the prevailing market rates. The difference between consideration amounts of first and second (reversal of first) leg reflects interest and is recognized as interest income/ expense over the period of transaction. Costs thereon are accounted for as interest expense. In respect of reverse repo transactions under LaF. security receipts issued by the asset reconstruction company are valued in accordance with the guidelines applicable to such instruments. Losses are recognized immediately. In respect of repo transactions under Liquidity adjustment Facility (LaF) with RBI. Countries are categorized into seven risk categories namely insignificant. In respect of restructured standard and non-performing assets.08. advances are stated net of specific loan loss provisions. 18.4 Securitization transactions The Bank enters into securitization transactions wherein corporate loans are sold to a special Purpose Vehicle (‘sPV’).RBI/ 2009-2010/ 356 IDMD/ 4135/11. export Credit Guarantee Corporation of India Limited (‘eCGC’) claims received.The difference between the clean price of first leg and the clean price of the second leg is recognized as interest income/expense over the period of transaction. Gain on securitization is amortized over the life of the securities issued by the sPV.4. subject to the minimum provisioning level prescribed in relevant RBI guidelines. 2010 on Uniform accounting for Repo/Reverse Repo Transactions. provisions are made for individual country exposures (other than for home country exposure) in accordance with RBI guidelines. money borrowed from RBI are credited to borrowing account and reversed on maturity of the transaction. restricted and off-credit and provisioning is done in respect of that country where the net funded exposure is one percent or more of the Bank’s total assets. f) Accounting for repos/reverse repos Pursuant to Reserve Bank of India’s circular . These provisions are included in schedule 5 .43/ 2009-10 dated March 23. For the year ended March 31. The Bank also maintains additional general provisions on standard exposure based on the internal credit rating matrix. provision is made for the present value of principal and interest component sacrificed at the time of restructuring the assets.

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. Income and expenditure in foreign currency are accounted for at exchange rates prevalent on the date of the transaction. that are used to cover risks arising from foreign currency assets and liabilities. contingent liabilities in respect of outstanding foreign exchange forward contracts. 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. 2007. Charges receivable/ payable on cancellation/ termination of foreign exchange forward contracts and swaps are recognized as income/ expense on the date of cancellation/ termination under ‘Other Income’. Cost comprises the purchase price and any cost attributable for bringing the asset to its working condition for its intended use.6 Earnings per share The Bank reports basic and diluted earnings per equity share in accordance with as 20.4. Foreign exchange contracts outstanding at the balance sheet date are marked to market at rates notified by FeDaI for specified maturities. Derivative transactions that are undertaken for hedging are accounted for on accrual basis except for the transaction designated with an asset or liability that is carried at market value or lower of cost or market value in the financial statements. The Bank undertakes derivatives transactions for market making/trading and hedging on-balance sheet assets and liabilities. Premium on option transaction is recognized into Profit and Loss on expiry or early termination of the transaction. The amounts received/paid on cancellation of Option contracts are recognized as realized gains/losses on options. If such assets are considered to be impaired. if any.4. 18. 18. The requirement for collateral and credit risk mitigation on derivative contracts is assessed based on internal credit policy.5 Transactions involving foreign exchange Monetary foreign currency assets and liabilities are translated at the balance sheet date at rates notified by the Foreign exchange Dealers’ association of India (‘FeDaI’).8 Fixed assets Fixed assets are stated at cost less accumulated depreciation and provision for impairment.18. endorsements and other obligations are stated at the exchange rates notified by FeDaI corresponding to the balance sheet date. derivatives. The Bank follows the option premium accounting framework prescribed by FeDaI sPL .4. 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.7 Accounting for derivative transactions Derivative transactions comprise of forward rate agreements. Premia/discounts on foreign exchange swaps. Mark to Market gain/loss (adjusted for premium received/paid on option contracts) is recorded under ‘Other Income’. 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. 98 . “earnings per share” prescribed by the Companies (accounting standards) Rules.circular dated December 14. Provisions for overdues. In accordance with as 11 ‘The effects of changes in Foreign exchange Rates’.4. swaps and option contracts. Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. guarantees. 2006. are made as per the relevant RBI guidelines. are amortized over the life of the swap. 18. all market making/trading transactions are marked-to-market on a periodic basis and the resultant unrealized gains/losses are recognized in the profit and loss account. The resulting profits or losses are recognized in the profit and loss account. 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). suitably interpolated for in-between maturity contracts as specified by FeDaI. 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.

Operating lease payments are recognized as an expense in the profit and loss account on a straight line basis over the lease term. The Bank accounts for the liability for future gratuity benefits using the projected unit cost method based on annual actuarial valuation.00% 6. Provident fund In accordance with law. and operating loss carry forwards. covering eligible employees. as determined by the management.12 Income taxes Income tax expense comprises current tax provision (i.4.4. 99 . 18.e. The Bank recognizes the actuarial gains and losses during the year in which the same are incurred. 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. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates at the balance sheet date. The Bank has computed the leave compensated absence provision as per revised as 15 – employee Benefits. over estimated useful lives.4.11 Leases Leases where the lessor effectively retains substantially all risks and benefits of ownership are classified as operating leases. 18. all employees of the Bank are entitled to receive benefits under the provident fund.00% 20.33% 25. The Bank has no liability for future provident fund benefits other than its annual contribution and recognizes such contributions as an expense in the year incurred. assets costing less than ` 5. Gratuity The Bank provides for gratuity.33% Over the lease period.0 Building the Best Quality Bank of the World in India 18. 18.9 Depreciation Depreciation on fixed assets is provided on straight-line method. the amount of tax for the period determined in accordance with the Income Tax act. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. deferred tax assets are recognized only if there is virtual certainty of realization of such assets.yes bank – Version 2. In case of unabsorbed depreciation or carried forward loss under taxation laws.The Bank accounts for the liability for compensated absence benefits using the Projected unit cost method based on annual acturial valuation. Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences between the carrying values of assets and liabilities and their respective tax bases. a defined benefit retirement plan.000 are fully depreciated in the year of purchase.21% 33. For assets purchased/sold during the year. The employees cannot encash unavailed/unutilized leave. 1956): Class of asset Office equipment Computer hardware Computer software Vehicles Furniture and Fixtures Leasehold improvements to premises Rates of depreciation per annum 16. at the rates mentioned below (which are higher than or equal to the corresponding rates prescribed in schedule XIV to the Companies act.10 Retirement and employee benefits Leave salary The employees of the Bank are entitled to carry forward a part of their unavailed/unutilized leave subject to a maximum limit. Deferred tax assets are reviewed at each balance sheet date and appropriately adjusted to reflect the amount that is reasonably/virtually certain to be realized. depreciation is being provided on pro-rata basis by the Bank. a defined contribution plan in which both the employee and the Bank contribute monthly at a pre determined rate.4. 1961 and the rules framed thereunder) and the net change in the deferred tax asset or liability in the year.

the Bank has issued 7. The Bank accreted ` 10.4.5. However.182 thousands) was transferred to capital reserve.447 thousands on account of the possible disallowance of tax benefit on certain expenses incurred in the financial year ended March 31.5 18. of the fair market price of the underlying stock (i. these expenses were charged net of taxes to the share premium account. 2010 the Bank had issued 38.50 aggregating to ` 10. an amount of ` 54. 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.5. 18. 18. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote.e.1.3 Investment Reserve The Bank has transferred ` 137 thousands (Previous year: ` nil ) towards Investment Reserve on provisions for depreciation on investments credited to profit and loss account. During the financial year ended March 31. In the financial year ended March 31. if any. 2011. 2011 is given below: 100 .738 thousands.1 Equity Issue During the financial year ended March 31. the provision is reversed.5. the asset and related income are recognized in the period in which the change occurs.065 thousands) as premium.1. no provision or disclosure is made.1 Statutory disclosures as per RBI Capital 18.4 Capital Adequacy Ratio Capital adequacy Ratio as per RBI guidelines (new Capital adequacy Framework (nCaF) dated July 1. If it is no longer probable that an outflow of resources would be required to settle the obligation. 2006. 18. in connection with the Initial Public Offering. The Bank also issued 4.14 Employee Stock Compensation Cost Measurement of the employee share-based payment plans is done in accordance with the Guidance note on accounting for employee share-based Payments issued by Institute of Chartered accountants of India (ICaI) and seBI esop Guidelines 1999. The Bank measures compensation cost relating to employee stock options using the intrinsic value method. the Bank has charged to share Premium account. 18.750 thousands.709 equity shares of ` 10 each for cash pursuant to a Qualified Institutions Placement (QIP) at ` 269. the last closing price on the stock exchange on the day preceding the date of grant of stock options) over the exercise price.4.362. 2011. Contingent assets are not recognized in the financial statements.338. on the QIP and stock options excercised.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.325. 2006. 18.18.855 shares pursuant to the exercise of stock option aggregating to ` 840.2 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).355 thousands.479.045. Compensation cost is measured by the excess.924 thousands (previous year: ` 315. During the year ` 19. generally referred to as Basel II) as at March 31.157 thousands (net of share issue expenses of ` 146. During the financial year ended March 31.5.5. 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.1. 2010.1. contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise.630 shares pursuant to the exercise of stock option aggregating to ` 279. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

9 7.000.501 71.570.000 9. 2010 september 08. 2011 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* 41.7 6.5 4. Borrowing in foreign currency converted at the rate prevelant on the date of borrowing. Details of the same are as follows: Tier II Debt Instruments (` in thousands) Particulars Upper Tier II Upper Tier II Lower Tier II Nature of Security Debentures Debentures Debentures Date of Issue august 14.519 9.5 Subordinated Debt During the financial year 2010-11.8 16.7 20.395 255.464.429.064.563 431.000 2.033 As at March 31.1. 2011 the Bank is required to maintain minimum capital which is higher of the minimum capital requirement under Basel II framework or 80% (90% as at March 31.65% 9.033 * Outstanding as at March 31.941 19. 2011. the Bank has raised Tier II Debt instruments amounting to ` 9.000 thousands and Innovative Perpetual Debt Instruments (IPDI) amounting to ` 2.275.000 Amount 4.632 15.400 10.50% 9.313 12. 18.124.704. as at March 31.30% Tenure 15 years 15 years 9 years & 7 Months TOTAL Innovative Perpetual Debt Instruments (IPDI) (` in thousands) Particulars Nature of Security Date of Issue august 21.6 2.225.824.400 16.775.118 380.650.90% Tenure Perpetual TOTAL Amount 2.542.0 Building the Best Quality Bank of the World in India (` in thousands) As at March 31. 2010 ) of the minimum capital requirement under Basel I framework.794.000 Tier I Perpetual Promissory note 101 .449.574.991.810 9.000 2. 2010 Coupon Rate (%) 9.284.399 10. 2010 Coupon Rate (%) 9. 2010 september 30.250.684.250. 2010 32.615 35. as at March 31.400.000 3.279 234.000 thousands.5.yes bank – Version 2.250. the capital funds of the Bank are higher than the minimum capital requirement mentioned above.907.338 52.617 29.464.193.

633* 3.2 Investments (` 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 31.413 Amount 820.291. 2011 192. 2010 38.245 (71.25% Tenure Perpetual TOTAL *Borrowings in foreign currency converted at the rate prevalent on the date of borrowing. 2011 188. 2010 Coupon Rate (%) 10. 2010.353 188.000 820. Provision for depreciation on investments (` in thousands) Particulars (In India) Opening Balance add/(Less): Provision during the year Closing Balance As at March 31.000.633 thousands and Innovative Perpetual Debt Instruments (IPDI) amounting to ` 820.353 As at March 31.000 927. 2010.658 192. Details of the same are as follows: Tier II Debt Instruments (` in thousands) Particulars Lower Tier II Upper Tier II Lower Tier II Nature of Security Debentures Bonds Debentures Date of Issue september 30.000 Amount 2. 2011 and March 31. 2009 January 22.65% 6M eURIBOR + 3.80% 9.633 There was no provision for depreciation on investments outside India as at March 31. 18.000 6.600.288.245 102.099.245 As at March 31.731 120.527. the Bank has raised Tier II Debt instruments amounting to ` 6. 2010 Coupon Rate (%) 9.103 192.408. 2011 and March 31.527.65% Tenure 10 Years & 7 months 15 years 10 years TOTAL Innovative Perpetual Debt Instruments (IPDI) (` in thousands) Particulars Tier I Perpetual Nature of Security Promissory note Date of Issue March 05.5. 2009 september 30.During the financial year 2009-10.892) 120.000 thousands.142 154. 102 .378 As at March 31. 2010 102.

2011 is given below: (` in thousands) No.279.250.699 1.919 29.250.665 29.3 a) Repo Transactions The details of securities sold and purchased under repos and reverse repos during the year ended March 31.635 44.616.635 66.562 As at March 31.000 Daily average outstanding during the year 13.5. 2011: (` in thousands) Minimum outstanding during the year securities sold under repos security purchased under reverse repo Maximum outstanding during the year 12.279.141.493 453.133 Extent of ‘below investment grade’ securities 50.000 12.261. # excludes investment in equity shares & units.000 160.190.635 (84.yes bank – Version 2.868. 2011.000 Extent of ‘unrated’ securities# 14.000 12.567.000 10.777 * Of the investments disclosed ` 43.190.467 6. 103 .665 15.000 50.737.410 Extent of ‘unlisted’ securities* 4.012 3.410 14.4 a) Non-SLR Investment Portfolio Issuer composition of non-sLR investments as at March 31.371 3. b) The details of securities sold and purchased under repos and reverse repos during the year ended March 31.004) 80.190. 2010: (` in thousands) Minimum outstanding during the year securities sold under repos security purchased under reverse repo 18.050.153 3.815.572.910. Issuer Amount Extent of private placement 1.642. 2010 - i) ii) iii) iv) v) vi) vii) PsUs Financial Institutions Banks Private Corporates subsidiaries/Joint ventures Others Provision held towards depreciation TOTAL 1.174 Maximum outstanding during the year 250.000 - The bank has not dealt in any repo or reverse repo transactions in corporate bond during the financial year ended March 31.469 34.892. 2011 4.5.173 thousands are exempted from applicability of RBI prudential limit for unlisted non-sLR securities.452 As at March 31.050.462 34.050.279.350.0 Building the Best Quality Bank of the World in India 18.000 Daily average outstanding during the year 1.

BC.410 Extent of ‘unlisted’ securities* 3.411 33.08% 187.457.563.180.505 21. Items i) ii) iii) iv) v) 1 2 As at March 31.b) Issuer composition of non-sLR investments as at March 31.185.243 2.460 19. c) 18. 104 .01.5. 2010 595.132) 34.513 21. Issuer Amount Extent of private placement 976.305. # excludes investment in equity shares & units.398 As at March 31.555. No.525 2.385.1 Forward Rate Agreement/Interest Rate Swap Sr.411 (102.000 Extent of ‘unrated’ securities# 14. 2010 is given below: (` in thousands) No.134 5.477 4.5 There were no non-performing non-sLR investments as at March 31.545.460 3.585.120.279/ 1999-2000) as applicable to Indian Rupee transactions: (` in thousands) 18.513 21.646 * Of the investments disclosed ` 26.180.087.623 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] 1 The fair value of the swap book 2 Credit risk concentration is measured as net receivable under swap contracts from banks Fair value represents mark-to-market including accrued interest.187/ 07.27% 166.213.250.000 1.411 26.401 i) ii) iii) iv) v) vi) vii) PsUs Financial Institutions Banks Private Corporates subsidiaries/Joint ventures Others Provision held towards depreciation TOTAL 976. 2011 are provided in accordance with the RBI guidelines on Forward Rate agreements and Interest Rate swaps (MPD. 5.990 thousands are exempted from applicability of RBI prudential limit for unlisted non-sLR securities. Derivatives The details of Forward Rate agreements/Interest Rate swaps outstanding as at March 31.180. 2011 551.000 50.234.000 1.5.410 14.472.159 91.025 2.134 5.043 Extent of ‘below investment grade’ securities 50.555.424 24.039. 2011 or during the year ended on that date (previous year – nil).

as at March 2011. 2010: ` 281.000 1.250. 2011 (Previous Year: nIL) 18.000 5.000 258.000 6.000 5.000 299.000.5.000.510.000 283.000 900.2 Unhedged/uncovered foreign currency exposure The Bank’s foreign currency exposures as at March 31.350.481 thousands (March 31.000 3.080.5. 5 5 2 7 447 458 4 6 Notional Principal 1. 2011 is ` 423.535.000 (InR 365.997.yes bank – Version 2.5.000 7. there were nIL open contracts.760.180.000) and GBP 337.000 900. nOOP at March 31.000 1.577 thousands). as at March 31.250. 2010 are set out below: (` in thousands) Nature Hedging Hedging Hedging Trading Trading Trading Trading Trading Nos. 2011.000 (InR 22.5.000 Benchmark InBMk MIBOR MIBOR MIFOR InBMk InBMk MIBOR MIBOR MIFOR MIFOR Terms Fixed Payable v/s Floating Receivable Fixed Payable v/s Floating Receivable Fixed Receivable v/s Floating Payable Fixed Payable v/s Floating Receivable Fixed Payable v/s Floating Receivable Fixed Receivable v/s Floating Payable Fixed Payable v/s Floating Receivable Fixed Receivable v/s Floating Payable Fixed Payable v/s Floating Receivable Fixed Receivable v/s Floating Payable The nature and terms of the IRs as on March 31.5.250.000 249.600.000 1. 2010 the open contracts on the exchange were to the tune of eURO 6.500.010.4 Currency Futures The bank had dealt in exchange traded currency Forwards (Futures) during the financial year ended March 31. 105 . 18.722) for april 2010 expiry.0 Building the Best Quality Bank of the World in India The nature and terms of the IRs as on March 31.000.5.500.3 Exchange Traded Interest Rate Derivatives The Bank has not dealt in exchange traded interest rate derivatives during the financial year ended March 31. as approved by the RBI. 6 8 13 2 15 3 416 461 8 19 Notional Principal 9. 2011 that are not hedged/covered by either derivative instruments or otherwise are within the net Overnight Open Position limit (nOOP) and the aggregate Gap limit.080.000 Benchmark MIBOR MIBOR MIFOR InBMk MIBOR MIBOR MIFOR MIFOR Terms Fixed Payable v/s Floating Receivable Fixed Receivable v/s Floating Payable Fixed Payable v/s Floating Receivable Fixed Payable v/s Floating Receivable Fixed Payable v/s Floating Receivable Fixed Receivable v/s Floating Payable Fixed Payable v/s Floating Receivable Fixed Receivable v/s Floating Payable 18.000 11. 2011 are set out below: (` in thousands) Nature Hedging Hedging Hedging Hedging Trading Trading Trading Trading Trading Trading Nos.250.000 1.

as part of prudent business and risk management practice. 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. the Bank has also instituted a comprehensive limit and control structure encompassing Value-at-Risk (VaR).5. the Bank has instituted an approval structure for all treasury/derivative related credit exposures. structure: The Board of Directors of the Bank have constituted a Board level sub-committee. a monthly report of which is periodically submitted to the top management and audit and Compliance Committee of the Bank. For derivative contracts in the banking book designated as hedge. which is responsible for monitoring. the Bank documents at the inception of the relationship between the hedging instrument and the hedged item. wherein risk limits are specified separately for each product. measurement and analysis of derivative related risks. in terms of both credit exposure and tenor. 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. among others. The Bank is subject to a concurrent audit for all treasury transactions. customer offerings and proprietary trading. appropriate credit covenants are stipulated as trigger events to call for collaterals or terminate a transaction and contain the risk. 2010. The Bank has an elaborate internal reporting mechanism providing regular reports to the RMC.4.5 Disclosures on risk exposure in derivatives as per RBI Master circular RBI DBOD. Investment Policy. hedging its currency and interest rate risk in its balance sheet. The Bank has an independent Middle Office.04. Hedging Policy. Derivatives appropriateness Policy.5. as mandated by the Credit Policy of the Bank. The Bank revalues its trading position on a daily basis for Management and Information system (‘MIs’) and control purposes and records the same in the books of accounts on a monthly basis. the following disclosures are being made with respect to risk exposure in derivatives of the Bank: a) Purpose: The Bank uses Derivatives including forwards and swaps for various purposes viz. stop loss and portfolio credit limits for derivative transactions. In addition to the above. The management of these products and businesses is governed by the Market Risk Policy.018/ 2010-11 dated July 1. 3/ 21. the Bank independently evaluates the potential credit exposure on account of all derivative transactions.18. including derivatives.BC. Wherever necessary. Refer note 18. b) c) d) e) f) g) h) 106 . the risk management objective for undertaking the hedge.7 for accounting policy on derivatives. The Bank reports all trading positions to the management on a daily basis.no.BP. Derivatives Policy.

000 556.643 481. 2010 5.650.048 282. 2010.164.755. 107 .024 326.BP.923 59.021 318.189 8.251 275.171 thousands for the financial year ended March 31.No.778.581 364.669.249 5. 2010 3.788.835 9.995 328.581 803.655 1.BC.0 Building the Best Quality Bank of the World in India i) The details of derivative transactions as at March 31.488 258.400.258 thousands and ` 49. 2011 20.643 379. Note: 1) PV01 for hedging derivatives is based on the position as at each month end during the financial year ended March 31.04.407.434 Year Ended March 31.000 605. 2011 and March 31.074.939 13. 2) Denotes absolute value of loss which the Bank could suffer on account of a change in interest rates by 1% which however doesn’t capture the off-setting exposures between interest rate risk and currency derivatives.977 327.005.762.324 iv) Likely impact of one percentage change in interest rate (100*PV01) (Refer note 2 below) a) on hedging derivatives b) on trading derivatives 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 1 2 295. 3) PVOI exposures reported above may not necessarily indicate the interest rate risk the Bank is exposed to given that PVOI exposures in Investments and Forwards (which offsets the PVO1 reflected above) do not form part of the above table.371 61.31/ 21.599 Options and cross currency swaps and currency futures are included in currency derivatives Currency Derivatives excludes notional amount of option sold of ` 45.583 371. **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”.052 9.530 173.939 638.250 179.939 637.855 61. 3 4 Trading portfolio includes accrued interest and represents net positions. 2010 are given below: (` in thousands) Sr.589 64. DBOD.374 Year Ended March 31. Particular No i) Derivatives (Notional Principal Amount)2 a) For hedging b) For trading ii) Marked to market positions a) asset (+) b) Liability (-) iii) Credit exposure** 4 3 Currency derivatives1 Year Ended March 31.798.yes bank – Version 2.423 85.052 69. Includes accrued interest. 2011 and financial year ended March 31.165 Interest rate derivatives Year Ended March 31.014. 2010 respectively. 2008.502 329.715 150.829 5.164.948 8.157/ 2008-09 dated August 8.960 8.717. 2011 5.

6 Asset quality The details of movement of gross nPas.18.536 March 31.343 1.879 826. 2010 are given below : (` in thousands) 18.982.6.06% 849.5.570 (82.3 Concentration of NPAs exposure (Funded + non Funded) of the Bank to top four nPa is ` 575.864 116.2 Provision coverage Ratio (ii) Movement of nPas (Gross) March 31.63% (previous year 78.684 1. 2011 0.540 91.188 278 177.563 298.899 thousands (previous year ` 473.878 6.833 129.254 1.468 thousands (previous year ` 382. 108 .020 411.5.114 thousands) for the same.5.970 250.406 713.181. 2011 and the year ended March 31.168 1. net nPas and provisions during the year ended March 31.551 1.946 805.380. Particulars (i) net nPa to net advances (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) (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 18. 2010 0.020 498. 18.03% 602.6.142 The provision coverage ratio of the Bank as at March 31.980 thousands) and the Bank has provided for ` 520.142 491.1 Non-Performing Asset No.5.952 472.198 44.805 255.43%) (excluding technical write-offs).6.859) 198.878 472.133.216.706 437. 2011 computed as per the the RBI circular dated December 1.410 1.242 129.100.785 602. 2009 is 88.804 294.

6.542 4 659.5. 2010 are given below: No.6.406 334. of Borrowers amount outstanding of which amount restructured sacrifice (diminution in the fair value) TOTAL no.23 18.405 27 404.27 0.29 0. 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 31.028 45.028 45.39 1.405 4 659.827 608. Sector 1 2 3 4 agriculture and allied activities Industry (Micro and small. 2011 and March 31.406 334. 2011 is ` 155. Medium and Large) services Personal Loans % of gross NPAs to gross advances in that sector. March 31. of Borrowers amount outstanding* of which amount restructured sacrifice (diminution in the fair value) sub-standard advances restructured no. SME Debt Restructuring - Others 27 404.4 Sector-wise NPAs The details of sector-wise nPas as at March 31. 2011 are as follows (` in thousands) CDR Mechanism standard advances restructured no.542 109 .56 1.yes bank – Version 2.273 13.0 Building the Best Quality Bank of the World in India 18. of Borrowers amount outstanding of which amount restructured sacrifice (diminution in the fair value) Doubtful advances restructured no.27 0. 2010 0. 2011 March 31.5 Restructured Accounts Details of Restructured accounts as at March 31.273 13.827 608.5.700 thousands.

2010. 1949. 18.16% 3.10 Business ratios Business Ratios i) ii) iii) iv) v) vi) 1 2 Interest income as a percentage to working funds1 non interest income as a percentage to working funds1 Operating profit as a percentage to working funds1 Return on assets1 Business (deposits + net advances) per employee (` ‘000’s)2 Profit per employee (` ‘000’s)2 As at March 31. 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 31.9 Provisions for Standard Assets Provision on standard advances is ` 1. 2010 is ` 124.675 Working funds represents the average of total assets as reported in Return Form X to RBI under section 27 of the Banking Regulation act.89% 2.190 3 435.7 Financial assets sold to Securitization/Reconstruction Company for Asset Reconstruction The Bank has not sold any financial assets to securitization/Reconstruction Company for asset reconstruction during year ended March 31. 18.863 thousands as at March 31.5.79% 162.5.025 2.838 thousands and ` 1. inter Bank deposits have been excluded and average employees have been considered.455 46 457.141 30. 2010 are as follows(` in thousands) CDR Mechanism 3 435.141 435.141 30. 2010 8.58% 1. 18.5.190 SME Debt Restructuring Others 46 457.384 1. of Borrowers amount outstanding Of which amount restructured sacrifice (diminution in the fair value) no.239 360.5.58% 222. 2011 and March 31. 2011 and March 31.700. 18.141 435. For the purpose of computation of business per employee (deposits plus advances).35% 2.271 thousands.179.455 - standard advances restructured sub-standard advances restructured Doubtful advances restructured TOTAL no.239 360. 110 . 2011 8. 2010.76% 1.8 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 the year ended March 31. of Borrowers amount outstanding* Of which amount restructured sacrifice (diminution in the fair value) no.24% 1.089 As at March 31. of Borrowers amount outstanding Of which amount restructured sacrifice (diminution in the fair value) no.Details of Restructured accounts as at March 31. 2011 and 2010 respectively.

877.956 83.386 805.11 (a).477 4.440 23.761 *For the purpose of disclosing the maturity pattern.243.910.077.530.178 267.369.909 10.856 27.570 224.455 37.857.624.002.389.490.634.609.713 343.073.606 8.306. estimates and assumptions have been made by the management. (c) and (d) below).636.600.101. the balances have been reported net of IBPC maturities falling due in the respective buckets.160.576.050 20.843.362 43.526.553.796 12.929.931.666 Borrowings 1.540 6.661 1.288.466 252.840 45.092 specified assets and liabilities as at March 31.413 Deposits 1.846.639 7.166 17.291 17.852.002.909.854 9.171.617 2.157.485 25.778.290 117.092 459. 2011 (` 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 to 6 months Over 6 to 12 months Over 1 year to 3 years Over 3 years to 5 years Over 5 years TOTAL b) Loans & Advances* 2.640.591.308 102.003 6.480 1.283 8.099.512.218 63.681.502. 111 .11 Asset Liability Management Maturity pattern of certain items of assets and liabilities In compiling the information of maturity pattern (refer 18.890 13. Correspondingly.791.039 4.769 26.2010 (` 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 to 6 months Over 6 to 12 months Over 1 year to 3 years Over 3 years to 5 years Over 5 years TOTAL Loans & Advances* 1.985.359.5.594.278 29.521 73.808.806.027 11.093 2.209.579.583 37.667.147.924.060 48.896 8.789.401 32.378 Deposits 1.747.368.717 14.259 5.yes bank – Version 2.299 64.830. a) specified assets and liabilities as at March 31.786.239 939.280 2.849 103.924 221.619.326.039 12.962.376 43.742.257.232 Investment Securities 2.256.318 Borrowings 10.323 47.840.0 Building the Best Quality Bank of the World in India 18.885 80.534 25.012.140.638.869.393 66.374 2. assets and liabilities in foreign currency exclude off-balance sheet assets and liabilities.870.640 13.387 Investment Securities 1.744.333 188.636 10.370.496 47.358 7.352 28. (b).268 71.500 231.000 2.547.745.150 6.880.603 6.950 70.695 34.176 39.900.5.463.531. loan and 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 and advances gross of any risk participation.778 27.277 55.

100 837.325 381.334.081 1.098. 2011: (` in thousands) Maturity Buckets 1day 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 Assets 2.496 14.350.563 4. which are sensitive to asset price fluctuations.041 11.770.429 2.434.630.084.845 510.055 4.c) Foreign currency denominated assets and liabilities as at March 31.614. 2010: (` 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 Assets 2.867 446.606 44.037 378.974 737.125 287.874 2.380 1.936 3.12 Exposures The Bank has lending to sectors.616 3.474.5.315 92.520.416 397.184 4.895.617.412.394 24.128.162 Liabilities 244 632.333 78.260 3.807 18. such sectors include capital market.598.554 2.597 1.900 9.379 181.400 188.625 3.441 5.270 608.485.223.059.980 Liabilities 28. 112 .178.831 279.640 4. real estate and commodities.557.225.184 d) Foreign currency denominated assets and liabilities as at March 31.

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: (` in thousands) Particulars As at As at March 31. **Comprises of individual mortgages (less than or equal to ` 15 lakhs each) on residential properties that are/will be occupied by the borrower or that are rented.402 801.yes bank – Version 2.164 Investments in Mortgage Backed securities (MBs) and other securitized exposures . 18.276.420 2.427 1. March 31. convertible bonds.000 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.Residential** 609.615.5. No.722 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.12.317 of which outstanding as advances 11.000 815. Particulars As at As at No.367.235 advances against shares/bonds/debentures or other securities or on clean basis to individuals for investment in shares (including IPOs/esOPs).647 860.086. 2010 Direct investment in equity shares. Financing to stockbrokers for margin trading all exposures to Venture Capital Funds (both registered and unregistered) Total Exposure to Capital Market 9. where the primary security other than shares/ convertible bonds/ convertible debentures / units of equity oriented mutual funds does not fully cover the advances.328.357.050 Commercial Real estate* 19. Bridge loans to companies against expected equity flows/issues. convertible debentures.985 secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and market makers.762. 2.680 .220 113 Sr. 147.999 13.706.285.000 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.0 Building the Best Quality Bank of the World in India 18.683 9. 2011 March 31. convertible debentures and units of equity-oriented mutual funds the corpus of which is not exclusively invested in corporate debt.525 130.5. 2011 March 31.796 2. 6. corporates for their real estate requirements and to individuals/ firms/ corporates against non-residential premises.Commercial Real estate ii) Indirect exposure Fund based and non fund based exposures on national Housing Board and Housing Finance Companies 3. representing the higher of funded and non-funded limits sanctioned or outstanding to real estate sector.371. 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.067 TOTAL 23.498. convertible bonds.1 Exposure to Real Estate Sector The exposure. qualifying for priority sector lending.870.e. 2010 i) Direct exposure Residential Mortgages 276. is given in the table below: (` in thousands) Sr. i) ii) iii) iv) v) vi) vii) viii) ix) x) . 3.928.114 *Commercial real estate exposure include loans given to land and building developers for construction. and units of equity-oriented mutual funds.000.346 16. 3.12.

the Bank’s funded exposure to any individual country did not exceed 1% of the total funded assets of the Bank (` in thousands) Risk Category Insignificant Low Moderate High Very High Restricted Off-credit TOTAL Exposure (net) as at March 31.3 Risk Category wise Country Exposure as per the extant RBI guidelines.513) 3. 2010 2. 2010 - 18.12.788. 2011.139 thousands) (excluding certificate of deposits.416.381 thousands (previous year: ` 50.1 Miscellaneous Provisions made for Income Tax during the year The income tax expense comprises the following (` in thousands) For the year ended March 31.81%) of the total deposit base. 114 4.996 1. 18. 18.6.5. 2011 and March 31.650. 2010 8.112. as at March 31.3 Fees/ Remuneration received from bancassurance Bank has earned ` 128.352 (189. 2011 (previous year: ` 112.6. representing 18.817 8.407 For the year ended March 31.4 Details of Single Borrower Limit (SBL) and Group Borrower Limit (GBL) During the year ended March 31.6. the country exposure of the Bank is categorised into various risk categories listed in the following table. 2011 the deposits of top 20 depositors aggregated to ` 86.256.696.4 Concentration of Deposits as at March 31.748 916. the Bank has not exceeded single borrower or group borrower exposure limit .487.975 2.6 18. 2011 4.949 11.963 11.883 Provision held as at March 31.345.920 (462.18.752 Provision held as at March 31.187 2.5.293 thousands). 2011 Exposure (net) as at March 31.6.677.204.171 thousands from bancassurance business during year ended March 31.051.438. which are tradable instruments).891) 2. 2010. The Bank does not have any bouncing of securitites general ledger and has not incurred any penalty for sGL bouncing in the financial year ended March 31. 2011 Current income tax expense Deferred income tax benefit TOTAL 18.461 . 18.173.2 Disclosure of penalties imposed by RBI no penalties have been imposed by RBI on the Bank during the financial year 2010-11 (previous year: ` nil).12.76% (previous year: 18. 2011.

6 Concentration of exposures as at March 31. Dir.550 thousands).6. 2011 Fair value of plan assets at the beginning of the year expected return on plan assets Contributions Benefits paid acturial gain/(loss) on planned assets Fair value of planned assets at the end of the period 1.91%) of the total advances.6. 2011 and March 31.723 For the year ended March 31.725.7 Overseas assets.14/ 13.423 217 24.001 52.06% (previous year 15. representing 15. no.00/2010-11 dated July 1. 18.1 sponsored sPVs The Bank has not sponsored any sPV and hence there is no consolidation in Bank’s books.5 Concentration of advances as at March 31. the Bank does not have any overseas revenue.80%) of the total exposures.03. 2010 50. For this purpose. 2011 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 Changes in the fair value of planned assets: For the year ended March 31. Dir. advance is computed as per definition of Credit exposure in RBI Master Circular on exposure norms DBOD. 2011 and March 31. 2010: (` in thousands) As at March 31. 2011 the top 20 exposures aggregated to ` 126.8 18.022 13.6. 2010. 2010. 2010. 2010 25.821 119.0 Building the Best Quality Bank of the World in India 18. 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 31.519 1.595 1.03.The Bank does not have any overseas assets or nPa as at March 31.6.015 4.725.14/ 13.027 thousands (previous year ` 72. 18. exposure is computed as per definition of Credit and Investment exposure in RBI Master Circular on exposure norms DBOD. representing 14.474 thousands (previous year ` 72.910.550 thousands).791 21. no. 2011 the top 20 advances aggregated to ` 105.461.yes bank – Version 2.7 18.29% (previous year 14. 2010. 18. BC.7.859 As at March 31. 2011 and March 31. BC. nPas and Revenue For the year ended March 31.015 115 .110 50.083 23.00/2010-11 dated July 1.

001 (1. 2011 Fair value of plan assets at the beginning of the year actual return on plan assets Contributions Benefits paid Fair value of plan assets at the end of the period 1. 2011 Discount Rate expected Return on Plan assets Mortality Future salary Increases Disability attrition Retirement 7.544 For the year ended March 31. (1994-96) Ultimate Table 15%p.C.C.300 23. 60 yrs For the year ended March 31.a. 2011 Current service Cost Interest Cost expected Return on plan assets net actuarial gain recognized in the year Past service Cost expenses recognized The assumptions used in accounting for the gratuity plan are set out below: (` in thousands) For the year ended March 31.a.022 4. 60 yrs 52.519 1.00% L.420 actuarial assumption on salary increase also takes into consideration the inflation. 2010 - net gratuity cost for the year ended March 31. (1994-96) Ultimate Table 10% p.Fair value of plan assets: (` in thousands) For the year ended March 31.41% 9.423 24.I.110 24. 116 .a 25% p.I. 2010 comprises the following components: (` in thousands) For the year ended March 31.723 For the year ended March 31.083) 13. promotion and other relevant factors. 20% p.a.791 1. 2011 and March 31. 2010 21. seniority.604 68.25% L. 2010 8.

999 117 .0 Building the Best Quality Bank of the World in India 18. 2011 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.I. Retail Banking: Includes lending. deposit taking and other services offered to retail customers.C.999 2.yes bank – Version 2.a 25% 60 yrs As at March 31. Corporate / Wholesale Banking: Includes lending.I.021) 20.054 117.720 186. 60 yrs 33. all financial markets activities undertaken on behalf of the Bank’s customers. 2011 and March 31.C. maintenance of reserve requirements and resource mobilisation from other Banks and financial institutions.459 As at March 31. 2010 29.487 (114.a. 2007.887) 33.3 Segment Reporting Pursuant to the guidelines issued by RBI on as-17 (segment Reporting) – enhancement of Disclosures dated april 18. 2008. 7. 2011 Discount rate Mortality Future salary increases Disability attrition Retirement 18.00% L. the following business segments have been reported.41% L. Other Banking Operations: Includes para banking activities like third party product distribution.7. 2010 8. (1994-96) Ultimate Table 10% p. deposit taking and other services offered to corporate customers.345 2.761 (203. (1994-96) Ultimate Table 15%p. 2010 is given below: (` in thousands) As at March 31. merchant banking etc.7. effective from period ending March 31. 20% p.a. • • • • Treasury: Includes investments.2 Compensated Absences The actuarial liability of compensated absences of un-encashable accumulated privileged leave of the employees of the Bank as at March 31. proprietary trading.

905 10.764) 46.131.550.271.695 53.771 290.690 5.785 3.614 28.892) 85.019.790.921.918.444 590.147.131.a) segmental results for the year ended March 31.407 7.900.677 363.819.650.736 575.761 503.481 2. 2011 are set out below: (` in thousands) Business Segments Treasury Corporate / Wholesale Banking 33.031.182 8.082 77.937.927 7.013 318.445 15.694.990 50.002.151.069.650.982.069.287.889 85.050.946 (3.segment Result Unallocated expenses Operating Profit Income Taxes extra-ordinary Profit/(Loss) Net Profit Other Information: segment assets Unallocated assets Total assets segment liabilities Unallocated liabilities Total liabilities 14.651 16.889 118 .378 228.904 86.069.004 (692.921 Total segment Revenue Less: Inter-segment Revenue net of inter.554 Retail Banking Other Banking Operations 245.985 590.985.

geographical segment results have not been reported.0 Building the Best Quality Bank of the World in India b) segmental results for the year ended March 31. 2010 are set out below: (` in thousands) Business Segments Treasury Corporate / Wholesale Banking 20.975) 49.827 10.487.025 (890.618. Bills payable.932.267 (2. IPDI instruments. Tax related accounts.160 213. assets and liabilities have been either specifically identified with individual segment or allocated to segments on a systematic basis or classified as unallocated. Fixed assets and related depreciation on fixed assets.103 7.461 4.yes bank – Version 2. certain estimates and assumptions have been made by the Management. In computing the above information.835. 10. Inter-segment transactions have been generally based on transfer pricing measures as determined by the Management.209 353.850) 29.957 3.241 29.782.452.854 2. Tier II instruments. share capital and reserves and relevant interest and operating expenses which cannot be allocated to any segments have been classified as unallocated.308 568.796.353 13.080 5. 5.625.333.037 21.436.888 363.718. Income.354.709 32.171.219 9.264. 2.107 The business of the Bank is concentrated in India.042.379.583 1.941.segment Result Unallocated expenses Operating Profit Income Taxes extra-ordinary Profit/(Loss) Net Profit Other Information: segment assets Unallocated assets Total assets segment liabilities Unallocated liabilities Total liabilities notes for segment reporting: 1.732 202.097.777.417 5.313 363. Cash and non treasury related bank balances at branches. 119 . 3.107 72.973 300.393 130. expense.825.764 Retail Banking Other Banking Operations 162. 4.211 Total segment Revenue Less: Inter-segment Revenue net of inter.192.825.485. accordingly.882.482.794 63.

871 In Financial Year 2010-11. Rana Kapoor. Rana Kapoor.” as per as 18 “Related Party Disclosures”. prescribed by the Companies (accounting standards) Rules. 2011 # 73. 2006. the Bank’s related parties for the year ended March 31. there was only one related party in the said category. 2006.4 a) Related Party Disclosures as per as 18 “Related Party Disclosures”. 2011: (` in thousands) Items/Related Party Category Wholetime directors / individual having significant influence # # # # Maximum Balance during the year Relatives of wholetime directors / individual having significant influence 71. Managing Director & CEO Key Management Personnel (‘KMP’) (Wholetime Director) • Mr. prescribed by the Companies (accounting standards) Rules. 2010 are disclosed below: Individuals having significant influence: • Mr.18. 2011 are disclosed below: Individuals having significant influence: • • Mr.7.910 Maximum Balance during the year Deposits Interest paid Receiving of services Dividend paid * # Represents outstanding as of March 31. hence the Bank has not disclosed the details of transactions in accordance with circular issued by the RBI on March 29. Rana Kapoor.963* 2. Rana Kapoor. Managing Director & CEO b) 120 . the Bank’s related parties for the year ended March 31. 2003 “Guidance on compliance with the accounting standards by banks. Managing Director & CEO Key Management Personnel (‘KMP’) (Wholetime Director) The following represents the significant transactions between the Bank and such related parties including relatives of above mentioned kMP during the year ended March 31. Managing Director & CEO Mr.

6 Earnings Per Share (‘EPS’) The Bank reports basic and diluted earnings per equity share in accordance with as-20. 2011 was ` 833. There are no undue restrictions or onerous clauses in the agreements.” Operating Leases Lease payments recognised in the profit and loss account for the year ended March 31.596 The terms of renewal/purchase options and escalation clauses are those normally prevalent in similar agreements.443 thousands).894.5 Lease obligations not later than one year Later than one year and not later than five years Later than five years TOTAL The Bank does not have any provisions relating to contingent rent.791 3.913* 3. there was only one related party in the said category.0 Building the Best Quality Bank of the World in India The following represents the significant transactions between the Bank and such related parties including relatives of above mentioned kMP during the year ended March 31.754 4. The future minimum lease obligations against the same were as follows: (` in thousands) 18.676. As at March 31.426. 2011 820. as at March 31.064 647. 2003 “Guidance on compliance with the accounting standards by banks.7. “earnings per share”.862 2. 121 .428 In Financial Year 2009-10.943 568.849.371 thousands (Previous year: ` 823. 2011 and March 31. 2010: (` in thousands) Items/Related Party Category Wholetime directors / individual having significant influence # # # Maximum Balance Relatives of wholetime during the year directors / individual having significant influence # 69. hence the Bank has not disclosed the details of transactions in accordance with circular issued by the RBI on March 29.7. 2010 92.437 As at March 31.yes bank – Version 2. 2010 the Bank had certain non-cancellable outsourcing contracts for information technology assets and properties on rent.619 3. 2010 603.961 Maximum Balance during the year Deposits Interest paid Receiving of services * # Represents outstanding as of March 31. The dilutive impact is mainly due to stock options granted to employees by the Bank. 18.

271. 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. Under YBL PesOP II. YBL esOP (PesOP I).636 7. 30% of the granted options vest at the end of the third year. YBL esOP (consisting of two sub schemes) and YBL JesOP V/ PesOP II (consisting of three sub-schemes). 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.881 7. all the grants under JsOP I were made before the IPO of the Bank. sub-schemes 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. 2010 122 . 30% of the granted options vest at the end of first year.65 Year Ended March 31. 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. 30% vest at the end of the fourth year and balance vest at the end of the fifth year.378 21. The schemes include provisions for grant of options to eligible employees.777.12 305.331.378 20.87 10. 2006 and March 31. a sub scheme of YBL esOP and YBL JesOP V. a sub scheme of YBL esOP.00 344. 30% vest at the end of second year and balance 40% vest at the end of third year.393 15. of equity shares outstanding net profit / (loss) (` ’000) Diluted earnings per share (`) nominal value per share (`) 18. 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. of equity shares outstanding net profit / (loss) (` ’000) Basic earnings per share (`) Diluted (annualised) Weighted average no.The computation of earnings per share is given below: Particulars Basic (annualised) Weighted average no.YBL PesOP II and YBL PesOP II . 359.7 ESOP disclosures statutory Disclosures Regarding Joining stock Option scheme: The Bank has five employee stock Option schemes viz. Joining employee stock Option Plan III (JesOP III).7. 2007 respectively. 2005. JsOP I is administered by the Board Remuneration Committee of the Bank and was in force for employees joining the Bank on or before March 31.00 321. Under YBL PesOP II – 2010.308.075.114 4.393 14.587 4. 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.2010. Under the above Plans. 2010. Joining stock Option Plan I (JsOP I) . YBL esOP (JesOP IV).272.777. 2011 Year Ended March 31.25 10.271. Joining employee stock Option Plan II (JesOP II). Further grants under PesOP II had been discontinued with effect from January 20.

5 yrs 35.75%~ 63.125. 2007 JESOP V PESOP II 2010 nIL 1. and diluted earnings per share would have been ` 19.5 yrs to 7.55% 4.300 972.053.512.625 2.48 166.55% 4.76% 1.114.061 860. 123 .880 18.5 yrs to 4.750 april 26.5 yrs to 7.71% 1.98% ~8.13% ~ 1.13% ~ 1.51 105. 2005 939.320 1.03 270.500 JESOP II JESOP III JESOP IV YBL PESOP I YBL PESOP II 3. 2006 2007 - - - - - - - - - - - - - - - - The Bank has charged ` nil.51% 1.74% ~ 82.012 thousands.78 176.115 985.5% YBL PESOP-II 4.47 per share instead of ` 21. 2008 583. 2008 290.5% YBL PESOP-I 5.571. being the intrinsic value of the stock options granted for the year ended March 31.500 558.94% ~ 64.533. The following assumptions have been made for computation of the fair value: Particulars Risk free interest rate Expected life Expected volatility 50.97% ~ 49.000 13.000 approved by October 27.5% Not Listed 96.23% JESOP III 7.5 yrs 39.5% JESOP V 5.59 123.893.000 .74% 1.62 233.646.5 yrs to 7. shareholders on 2004 Options granted and exercised during the year Options granted and eligible for exercising and exercised during the year July 24.950 2.12 per share.300 3.5 yrs 39.5 yrs to 6 yrs 40. the basic earnings per share would have been ` 20. certain estimates and assumptions have been made by the Management which have been relied upon by the auditors.yes bank – Version 2.804.500 sep 18.scholes pricing model).500 2.5 yrs 35.261.13% ~ 1.13% JESOP IV 7.63% ~ 82. august 29.900 8.0 Building the Best Quality Bank of the World in 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 JSOP I 1.2.835.20% ~8. Had the Bank adopted the Fair Value method (based on Black.856.49% 4.961 499.92% 1.61 In computing the above information.779 653.820 182.82% ~ 41.924.000 3.76% 1.5% PESOP II 2010 5.500 4.849.45% 6.700 499.31% ~ 82.23% 6.5 yrs 61.5 yrs JESOP II 6. 2011. 2010 1.300 4.27% ~8.5 yrs to 7.855 august 29.83% ~7.44% The price of the underlying share in market at the time of option grant (`) JSOP I 6.5 yrs to 7.54% ~6.150 1.92% 1. for pricing and accounting of options.58% Expected dividends 1.000 4.243.005.73% ~7.835.81% 6.000 July 2.25 per share.96% ~8.5 yrs 54.63 per share instead of ` 20. net profit after tax would have been lower by ` 224.279 461.5 yrs to 7.735 sep 18.76% 1.51% 1.48% ~8.

2011 87.8 18.923 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 18.481 108. these expenses were charged net of taxes to the share premium account.532 107.610 46.655 876.8.2 Drawdown on Reserves During the financial year ended March 31. 2010 2. 2010 are given below: (` in thousands) March 31. 18.892) 520.083 9. an amount of ` 54.892 1. the Bank has charged to share Premium account.994 As at March 31. 2010.060.628 140.928 thousands as at March 31.103 388. 2010 46. 2011 and ` 652. 2010 the Bank has utilized the share premium received from issue of shares under QIP to meet the share issue expenses of ` 146.527 March 31.457 thousands on account of the possible disallowance of tax benefit on certain expenses incurred in the financial year ended March 31.010 80. 124 . In financial year ended March 31. 2011.335) 3.526 337. 2011 and March 31.016 190.7. The components that give rise to the deferred tax asset included in the balance sheet are as follows: (` in thousands) Particulars Deferred tax asset Depreciation Provision for gratuity and unutilized leave Provision for non Performing assets amortisation of premium on HTM securities Provision for standard advances Other Provisions securitization/ Others Deferred tax asset 18.060. In the Financial Year ended March 31.632.408 4. 2011 and financial year ended March 31.994 thousands as at March 31.487.461 154.855. is included under other assets and the corresponding credits have been taken to the profit and loss account. 2010.139 40. 2006.8.9 Provisions and Contingencies As at March 31.650.361 502.976 392.7.8 Deferred Taxation The net deferred tax asset of ` 1.065 thousands . The floating provision as at March 31.928 The breakup of provisions of the Bank for the year ended March 31.18.390 652.407 (71. in connection with the Initial Public Offering.699 64. 2006. 2011 3.003 30. 2011 was ` nil (Previous year: ` nil).039 (50.180 63.1 Other Disclosures Movement in Floating Provisions The bank has not created or utilized any floating provisions during the financial year ended March 31.

Value of service charges maximum of ` 25. of unimplemented awards at the beginning of the year no. of Complaints received during the year no. 2011 i) ii) iii) iv) B. etc. of Complaints pending at the beginning of the year no. of Complaints redressed during the year no. 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. 18.8.0 Building the Best Quality Bank of the World in India 18.8.000 501.3 A. 2011 Year Ended March 31. nil nil nil nil 5 629 628 6 125 . 18. 2006. 2011 and March 31. 2011 i) ii) iii) iv) 18.4 no.8. of Complaints pending at the end of the year Awards passed by the Banking Ombudsman Year ended March 31. of awards passed by the Banking Ombudsman during the year no. small and Medium enterprises. 2006 (MsMeD) which came into force from October 02. no.yes bank – Version 2.000.444 Form: Collection / Payout agent. small and medium enterprises or of interest payments due to delays in such payments. of awards implemented during the year no. of unimplemented awards at the end of the year Dues to Micro.5 Securitization Transactions (` in thousands) 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 realized in respect of accounts transferred in earlier years Form and quantum (outstanding value) of services provided by way of post-securitization asset servicing.444 1.8. 2010 1 500. certain disclosures are required to be made relating to Micro. Disclosure of complaints Customer Complaints Year ended March 31. small and Medium enterprises Development act. there have been no reported cases of delays in payments to micro. Small and Medium Enterprises Under the Micro.6 Letter of comfort The Bank has not issued any letter of comfort during the year ended March 31. Year Ended March 31. 2010.

7 1.Capital commitments . Mago Director Bharat Patel Director Rajat Monga Chief Financial Officer S. guarantees on behalf of its customers.8. For B S R & Co. the extent to which instruments are favourable or unfavourable and. 18. results of operations or cash flows. Interest rate swaps are commitments to exchange fixed and floating interest rate cash flows. The notional amounts of financial instruments of such foreign exchange contracts and derivatives provide a basis for comparison with instruments recognized 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. 2011 126 . acceptances. No. Documentary credits such as letters of credit endorsements and other obligations enhance the credit standing of the customers of the Bank.Value dated purchase of securities contingently liable .: 101248W Akeel Master Partner Membership no. Contingent Liabilities 2.L. thus the aggregate fair values of derivative financial assets and liabilities can fluctuate significantly. Forward exchange contracts are commitments to buy or sell foreign currency at a future date at the contracted rate. Liability on account of forward The Bank enters into foreign exchange contracts. The derivative instruments become favorable (assets) or unfavorable (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.: 046768 For and on behalf of the Board of Directors YES BANK Limited Rana Kapoor Managing Director & CEO Arun K. currency options. Guarantees given on behalf as a part of its commercial banking activities the Bank issues documentary credit and of constituents. The Bank does not expect the outcome of these proceedings to have a material adverse effect on the Bank’s financial conditions. currency swaps and interest rate swaps with interbank participants and customers. Other items for which the Bank is . Kapur Non-Exectuive Chairman Sanjeev Kapoor Company Secretary Mumbai april 20.8. Chartered Accountants Firm’s Registration no. forward rate agreements. do not indicate the Bank’s exposure to credit or price risks. 4. therefore. Currency swaps are commitments to exchange cash flows by way of interest/principal in one currency against another. Claims against the Bank acknowledged as debts Sr. based on predetermined rates.Foreign exchange Contracts (Tom and spot) 3. exchange and derivative contracts.8 Prior period comparatives Previous period’s figures have been regrouped where necessary to conform to current year classification. Description of contingent liabilities Brief not The Bank is a party to various legal proceedings in the normal course of business. Guarantees generally represent irrevocable assurances that the Bank will make payments in the event of the customer failing to fulfill its financial or performance obligations.18.