Guidelines for Consolidated Accounting and Other Quantitative Methods to Facilitate Consolidated Supervision

DBOD. No. BP.BC. 72 - 21.04.018 dated 25^th February 2003

In view of the increased focus on empowering supervisors to undertake consolidated supervision of Bank Groups and since the Core Principles for Effective Banking Supervision issued by the Basel Committee on Banking Supervision (BCBS) have underscored this requirement as an independent principle, the RBI set up a multi-disciplinary Working Group in November 2000 under the Chairmanship of Shri Vipin Malik, Director on the Central Board of RBI. The Working Group examined the feasibility of introducing consolidated accounting and other quantitative methods to facilitate consolidated supervision and made recommendations accordingly. The Working Group has identified the following three components of consolidated supervision:

(a)������ consolidated financial statements (CFS),

(b)������ consolidated prudential reports (CPR), and

(c)������ application of prudential regulations like capital adequacy and large exposures/ risk concentration on group basis.

2. ���� The draft guidelines on consolidated accounting and other quantitative methods to facilitate consolidated supervision were prepared on the basis of the Working Group�s recommendations and were issued to banks vide letter DBOD No. BP.2388 /21.04.018/2001-02 dated June 24, 2002, seeking their comments. On the basis of the feedback received from banks and the deliberations with the officials of banks and FIs the draft guidelines have been revised. It has been decided to implement them with suitable changes, wherever considered necessary. Accordingly, the guidelines to be followed by banks to aid consolidated supervision have been formulated to enable smooth implementation and are furnished in the Annexure.

3. ���� You are advised to place the guidelines before the Board of Directors and ensure strict compliance with the same commencing from the year ending March 31, 2003.

4. ���� Please acknowledge receipt.

ANNEXURE

GUIDELINES FOR CONSOLIDATED ACCOUNTING AND OTHER QUANTITATIVE METHODS TO FACILITATE CONSOLIDATED SUPERVISION

Scope

1. ���� Initially, consolidated supervision would be mandated for all groups where the controlling entity is a bank. In due course, banks in mixed conglomerates would be brought under consolidated supervision, where:

i) ������� the parents may be non-financial entities, or

ii) ������ the parents may be financial entities falling under the jurisdiction of other regulators like Insurance Regulatory and ���������� Development Authority or Securities and Exchange Board of India, or

iii) ������ the supervised institution may not constitute a substantial or significant part of the group.

Components

2. ���� The components of consolidated supervision as proposed to be implemented by the RBI include:

a)������� Consolidated Financial Statements [CFS], which are intended for public disclosure.

b)������� Consolidated Prudential Reports [CPR] for supervisory assessment of risks which may be transmitted to banks (or other �� supervised entities) by other group members.

c)������� Application of certain prudential regulations like capital adequacy, large exposures/ risk concentration etc. on group basis.

3. ���� Banks are required to put in place an appropriate MIS to support their compliance with the consolidated accounting and reporting requirements.

Consolidated Financial Statements (CFS)

4. ���� All banks coming under the purview of consolidated supervision of RBI, whether listed or unlisted should prepare and disclose Consolidated Financial Statements from the financial year commencing from April 1, 2002 in addition to solo financial statements.

5. ���� Consolidated Financial Statements is required to be prepared in terms of Accounting Standard (AS) 21 and other related Accounting Standards prescribed by the Institute of Chartered Accountants of India (ICAI) viz. Accounting Standard 23 and Accounting Standard 27. For the purpose, the terms 'parent', 'subsidiary', �associate�, �joint venture�, 'control' and 'group' would have the same meaning as ascribed to them in the above Accounting Standards of the Institute of Chartered Accountants of India.

6. ���� A parent presenting Consolidated Financial Statements should consolidate all subsidiaries � domestic as well as foreign, except those specifically permitted to be excluded under Accounting Standard 21. The reasons for not consolidating a subsidiary should be disclosed in Consolidated Financial Statements. The responsibility of determining whether a particular entity should be included or not for consolidation would be that of the Management of the parent entity and the Statutory Auditors should comment in this regard if they are of the opinion that an entity which ought to have been consolidated had been omitted.

Components of Consolidated Financial Statements

7. ���� Consolidated Financial Statements should normally include consolidated balance sheet, consolidated statement of profit and loss, Principal Accounting Policies, Notes on Accounts, etc.

Format of Consolidated Financial Statements

8. ���� Since Accounting Standard 21 has not prescribed any format for publishing consolidated financial statements, banks should adopt the format furnished in Appendix A for presentation of their consolidated financial statements. The Consolidated Financial Statements are in addition to the bank�s solo balance sheet and profit and loss account prepared as per the formats prescribed under Section 29 of Banking Regulation Act, 1949.

Reference date

9. ���� The financial statements used in the consolidation should be drawn up to the same reporting date. If it is not possible, Accounting Standard 21 allows adoption of 6-month-old balance sheet of subsidiaries and prescribes that adjustments should be made for the effects of significant transactions or other events that have occurred during the intervening period. In the case that the balance sheet dates of parent and subsidiaries are different, inter-group netting may be done as on the balance sheet date of the parent entity. In the cases where the balance sheet date coincides with that of the bank, the nationalised banks may publish their Consolidated Financial Statements without waiting for Comptroller and Auditor General audit of the accounts of their subsidiaries. However, banks have to ensure completion of statutory audit of the accounts of such subsidiaries before consolidation with the parent�s accounts.

Accounting policies

10. �� Consolidated Financial Statements should be prepared using uniform accounting policies for like transactions and other events in similar circumstances. If it is not practicable to do so, that fact should be disclosed together with the proportions of the items in the consolidated financial statements to which the different accounting policies have been applied.

11. �� For the purpose of preparing Consolidated Financial Statements using uniform accounting policies banks may rely on a Statement of Adjustments for non-uniform accounting policies, furnished by the Statutory Auditors of the subsidiaries.

12. �� If different entities in a group are governed by different accounting norms laid down by the concerned regulator for different businesses then, where banking is the dominant activity, accounting norms applicable to a bank should be used for consolidation purposes in respect of like transactions and other events in similar circumstances. In situations where no accounting norms have been prescribed by the regulatory authority and different accounting policies are followed by different entities of the group, balance of business may be used as a deciding factor for application of accounting norms. For dissimilar items and circumstances, different accounting policies would have to be followed.

13. �� For the purpose of valuation, the investments in associates (other than those specifically excluded under Accounting Standard 23) should be accounted for under the "Equity Method" of accounting in accordance with Accounting Standard 23. Investment in RRBs sponsored by banks would also be treated as investments in associates for the purpose of Consolidated Financial Statements and accounted by �Equity Method� as prescribed under Accounting Standard 23.

14. �� The valuation of investments in subsidiaries, which are not consolidated and associates which are excluded under Accounting Standard 23, should be as per the relevant valuation norm issued by Reserve Bank of India.

15. �� The valuation of investments in joint ventures should be accounted for under the �proportionate consolidation� method as per Accounting Standard 27 on �Investments in Joint ventures� issued by Institute of Chartered Accountants of India.

16. �� As regards disclosures in the �Notes on Accounts� to the Consolidated Financial Statements, banks may be guided by general clarifications issued by Institute of Chartered Accountants of India from time to time.

17. �� The Consolidated Financial Statements has to be submitted to Reserve Bank of India within one month from the publication of the bank�s annual accounts.

Consolidated Prudential Reports (CPR)

18. �� In addition to the Consolidated Financial Statements, banks coming under the purview of consolidated supervision of Reserve Bank of India should also prepare Consolidated Prudential Reports. Consolidated Prudential Reports will be initially introduced on half-yearly basis from March 31, 2003 as part of off-site reporting system on the lines of the existing DSB returns for the solo entities. The frequency of reporting would be subsequently reviewed and may be increased.

19. �� Consolidated Prudential Reports for half-year ended March has to be submitted by end June. If audited results of entities under the Consolidated Prudential Reports are not available, banks should submit the provisional Consolidated Prudential Reports with unaudited results of such entities, by end June. However, Consolidated Prudential Reports for the half-year ended March with audited results has to be submitted by end September. The Consolidated Prudential Reports for half-year ended September has to be submitted by end of December. Banks should develop software for auto consolidation of Consolidated Prudential Reports at their end.

Scope

20. �� Reserve Bank of India confines Consolidated Prudential Reports to all groups where the controlling entity is a bank. If the bank is a parent company within a group, the bank should submit Consolidated Prudential Reports for the entities under its control.

21. �� Consolidated Prudential Reports for a consolidated bank should include information and accounts of related entities viz. subsidiaries, associates and joint ventures of the bank, which carry on activities of banking or financial nature. Banks should justify the exclusion of any entity for the purpose of Consolidated Prudential Reports. All related entities of the bank may be consolidated with the parent on the lines prescribed in the various Accounting Standards issued by the Institute of Chartered Accountants of India viz. subsidiaries will be consolidated on a line by line basis (AS 21), associates will be consolidated by the equity method (AS 23) and joint ventures will be consolidated by the proportionate consolidation method (AS 27).

22. �� For the purpose of preparation of Consolidated Prudential Reports, the consolidation may exclude group companies, which are engaged in (a) insurance business and (b) businesses not pertaining to financial services. The valuation of investment in related entities, which are not consolidated, should be as per the relevant valuation norm issued by Reserve Bank of India.

23. �� In respect of related entities, which operate under severe long term restrictions which significantly impair their ability to transfer funds to the parent, banks shall disclose separately the book value of the amounts due from such related entities and the net amounts recoverable from them. Banks may also consider making appropriate provisions for the shortfall.

Format

24. �� The format of reporting for Consolidated Prudential Reports purposes is enclosed in Appendix B. The Consolidated Prudential Reports comprises of Consolidated Balance Sheet, Consolidated Profit & Loss Account, and select data on financial/ risk profile of the consolidated bank. The reporting format for the consolidated balance sheet and the consolidated profit and loss account will be the same as prescribed in Appendix A for Consolidated Financial Statements.

Application of Prudential Norms at group / on consolidated position

25. �� For the purpose of application of prudential norms on a group wide basis, a 'consolidated bank' is defined as a group of entities, which include a licensed bank, which may or may not have subsidiaries. As a part of consolidated supervision the following prudential norms/ limits are prescribed for compliance by the consolidated bank:

a)������� Capital Adequacy

b)������� Large Exposures

c)������� Liquidity Ratios, mismatches, SLR, CRR (where applicable)

Capital adequacy

26. �� Banks have already been advised to voluntarily build into their own balance sheet, on a notional basis, the risk weighted components of their subsidiaries at par with the risk weights applicable to the bank's own assets vide circular DBOD.No.BP.BC.169/ 21.01.002/ 2000 dated May 3, 2000. Banks were also advised to provide for capital shortfall in the subsidiary in their own books in a phased manner beginning from the year ending March 2001 to rectify the impairment to their net worth on switch over to consolidated accounting.

27. �� A Consolidated bank should maintain a minimum Capital to Risk-weighted Assets Ratio (CRAR) as applicable to the parent bank on an ongoing basis from the year ending 31 March 2003. While computing capital funds, parent bank may consider the following points:

i)������ Banks are required to maintain a minimum capital to risk weighted assets ratio of 9%. Non-bank subsidiaries are required to maintain the capital adequacy ratio prescribed by their respective regulators. In case of any shortfall in the capital adequacy ratio of any of the subsidiaries, the parent should maintain capital in addition to its own regulatory requirements to cover the shortfall.

ii)����� Risks inherent in deconsolidated entities (i.e., entities which are not consolidated in the Consolidated Prudential Reports) in the group need to be assessed and any shortfall in the regulatory capital in the deconsolidated entities should be deducted (in equal proportion from Tier 1 and Tier 2 capital) from the consolidated bank�s capital in the proportion of its equity stake in the entity.

Large Exposures

28. �� As a prudential measure aimed at better risk management and avoidance of concentration of credit risks, in addition to adherence to prudential limits on exposures assumed by banks, consolidated banks should also adhere to the following prudential limits on:

i)�������� Single & Group borrower exposures,

ii)������� Capital market exposures, and

iii)������� Exposures by way of unsecured guarantees and unsecured advances.

29. �� The operational details in this regard are furnished below.

i)������ Exposure by the consolidated bank to a single borrower/ debtor should not exceed 15% of its capital funds. Exposure by the consolidated bank to a borrower/ debtor group should not exceed 40% of its capital funds. The aggregate exposure on a borrower/ debtor group can exceed the exposure norm of 40% by an additional 10% (i.e. up to 50%) provided the additional exposure is for the purpose of financing infrastructure projects. Computation of capital funds, exposure etc. would be on par with the methodology adopted for banks.

ii)����� The consolidated bank�s aggregate exposure to capital markets should not exceed 2 per cent of its total on-balance-sheet assets (excluding intangible assets and accumulated losses) as on March 31 of the previous year. This ceiling will apply to the consolidated bank�s exposure to capital market in all forms, including both fund based and non-fund based, similar to the computation for the parent bank. Within the total limit, investment in shares, convertible bonds and debentures and units of equity-oriented mutual funds should not exceed 10 percent of consolidated bank�s net worth.

iii)���� The norms relating to unsecured guarantees and unsecured funded exposures on the lines of the guidelines issued to banks vide circular DBOD.No.666/C.96/(Z)-67 dated May 3, 1967, as amended from time to time, are also extended to the consolidated bank.

30. Liquidity Ratios:

(i)������� CRR & SLR requirements:

The existing liquidity requirements applicable to banks on a solo basis are extended to the consolidated bank as well. If the related entities in the consolidated bank are banks, liquidity position i.e., CRR and SLR would be monitored on a consolidated basis after netting out intra-group transactions and exposures. If the related entities in the consolidated bank are heterogeneous comprising non-banking entities, compliance with the CRR / SLR norms would be restricted to the banking entities on a consolidated basis. In respect of non-banking financial entities within bank groups, they should comply with the liquidity requirements prescribed at solo level.

(ii)������ Asset Liability Management:

Maturity wise distribution/ analysis of assets and liabilities should be disclosed on a consolidated basis in the Consolidated Prudential Reports. Tolerance limits for near-term and short-term deficits/ mismatches in the first two time bands of 1-14 days and 15-28 days would be monitored at the consolidated level. Intra-group transactions and exposures should be excluded from this consolidation.

31. Review�

The above instructions would be reviewed after one year from the date of implementation.

 

Appendix A

FORMAT OF CONSOLIDATED BALANCE SHEET OF A BANK AND ITS SUBSIDIARIES

Consolidated Balance Sheet of ________________________ (here enter name of the parent bank)

(Rs. in crore)

Balance Sheet as on March 31 (Year)

Particulars	Schedule	As on 31.3. __ (Current year)	As on 31.3. ___ (Previous year)
CAPITAL & LIABILITIES
Capital	1
Reserves & Surplus	2
Minorities Interest	2A
Deposits	3
Borrowings	4
Other Liabilities and Provisions	5
Total
ASSETS
Cash and Balances with Reserve Bank of India	6
Balances with banks and money at call and short notice	7
Investments	8
Loans & Advances	9
Fixed Assets	10
Other Assets	11
Goodwill on Consolidation[1]
Debit Balance of Profit and Loss A/C
Total
Contingent liabilities	12
Bills for collection

 

FORM OF CONSOLIDATED PROFIT AND LOSS ACCOUNT OF A BANK AND ITS SUBSIDIARIES

Consolidated Profit and Loss Account of ________________________ (here enter name of the parent bank)

(Rs. in crore)

Profit & Loss Account for the year ended March 31 ___

Particulars	Schedule	Year ended 31.3.__ (current year)	Year ended 31.3.__ (previous year)
I.������ Income
Interest earned	13
Other income	14
Total
II.����� Expenditure
Interest expended	15
Operating expenses	16
Provisions and contingencies
Total
Share of earnings/loss in Associates	17
Consolidated Net profit/(loss) for the year before deducting Minorities' Interest
Less: Minorities' Interest
Consolidated profit/(loss) for the year attributable to the group
Add: Brought forward consolidated profit/(loss) attributable to the group
III.���� Appropriations
Transfer to statutory reserves
Transfer to other reserves
Transfer to Government/Proposed dividend
Balance carried over to consolidated balance sheet
Total
Earnings per Share1

Schedule 1 � Capital

Particulars	As on 31.3. __ (Current year)	As on 31.3. __ (Previous year)
Authorised Capital (.... Shares of Rs ... each)
Issued Capital (.... Shares of Rs ... each)
Subscribed Capital (.... Shares of Rs ... each)
Called-up Capital (.... Shares of Rs ... each)
Less: Calls unpaid
Add: Forfeited shares
�Total

Schedule 2 � Reserves & Surplus

	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
Statutory Reserves
Capital Reserves
Capital Reserve on Consolidation[2]
Share Premium
Other Reserves (specify nature)
Revenue and other Reserves
Balance in Profit and Loss Account
Total

Schedule 2a-Minorities Interest

Minority interest at the date on which the parent-subsidiary relationship came into existence
Subsequent increase/ decrease
Minority interest on the date of balance sheet

Schedule 3 � Deposits

Particulars	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
A.���� I.�������� Demand Deposits
(i)����� From banks
(ii)���� From others
II.����� Savings Bank Deposits
III.���� Term Deposits
(i)����� From banks
(ii)���� From others
Total (I, II and III)
B.���� (i)������� Deposits of branches in India[3]
�(ii)��� Deposits of branches outside India[4]
Total (I and ii)

Schedule 4 � Borrowings

Particulars	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
I.������ Borrowings in India
(i)����� Reserve Bank of India
(ii)���� Other banks
(iii) Other institutions and agencies
II.����� Borrowings outside India
Total (I and II)
Secured borrowings included in I & II above

Schedule 5 � Other Liabilities and Provisions

Particulars	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
I.������ Bills payable
II.����� Inter-office adjustments (net)
III.���� Interest accrued
IV. Deferred Tax Liabilities
V.���� Others (including provisions)
Total

Schedule 6 � Cash and Balances with Reserve Bank of India

Particulars	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
I.������ Cash in hand (including foreign currency notes)
II.����� Balances with Reserve Bank of India
(i)����� In Current Account
(ii)���� In Other Accounts
Total (I & II)

Schedule 7 � Balances with Banks and Money at Call & Short Notice

Particulars	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
I.������ In India
(i)����� Balances with banks
(a)���� In Current accounts
(b)���� In Other Deposit accounts
(ii)���� Money at call and short notice
(a)���� With banks
(b) With other institutions
Total (i & ii)
II.����� Outside India
(i)����� In Current Account
(ii)���� In Other Deposit Accounts
(iii) Money at call and short notice
Total
Grand Total (I & II)

Schedule 8 � Investments

Particulars	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
I.������ Investments in India in
(i)����� Government securities
(ii)���� Other approved securities
(iii) Shares
(iv) Debentures and Bonds
(v) Investment in Associates
(vi) Others (to be specified)
Total
II.����� Investments outside India in
(i)����� Government securities (including local authorities)
(ii) Investment in Associates
(iii) Other investments (to be specified)
Total
Grand Total (I & II)
III. Investments in India
(i) Gross value of Investments
(ii) Aggregate of Provisions for Depreciation
(iii) Net Investment
IV. Investments outside India
(i) Gross value of investments
(ii) Aggregate of Provisions for Depreciation
(iii) Other investments (to be specified)

Schedule 9 � Advances

Particulars	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
A. (i)� Bills purchased and discounted
(ii) Cash credits, overdrafts and loans repayable on demand
(iii) Term loans
Total
B.(i)�� Secured by tangible assets (includes advances against book debts)
(ii) Covered by Bank/Government Guarantees
(iii) Unsecured
Total
C. I. Advances in India
(i) Priority sector
(ii) Public sector
(iii) Banks
(iv) Others
C.II. Advances outside India
(i) Due from banks
(ii) Due from others
(a) Bills purchased & discounted
(b) Syndicated Loans
(c) Others
Total

Schedule 10 � Fixed Assets

Particulars	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
I.������ Premises
At cost as on 31st March of the preceding year
Additions during the year
Deductions during the year
Depreciation to date
IA. Premises under construction
II.����� Other Fixed Assets (including furniture and fixtures)
At cost (as on 31 March of the preceding year
Additions during the year
Deductions during the year
Depreciation to date
IIA. Leased Assets
�At cost as on 31st March of the preceding year
�Additions during the year including adjustments
�Deductions during the year including provisions
�Depreciation to date
Total (I, IA, II &IIA)
III. Capital-Work-in progress (Leased Assets) net of �Provisions
Total (I, IA, II, IIA & III)

Schedule 11 � Other Assets

	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
I.������ Inter-office adjustments (net)
II.����� Interest accrued
III.���� Tax paid in advance/tax deducted at source
IV.���� Stationery and stamps
V.���� Non-banking assets acquired in satisfaction of claims
VII. Deferred Tax assets
VIII. Others
Total

Schedule 12 � Contingent Liabilities

Particulars	As on 31.3.__ (current year)	As on 31.3.__ (previous year)
I.������ Claims against the bank not acknowledged as debts
II.����� Liability for partly paid investments
III.���� Liability on account of outstanding forward exchange contracts
IV.���� Guarantees given on behalf of constituents
(a)���� In India
(b)���� Outside India
V.���� Acceptances, endorsements and other obligations
VI.���� Other items for which the bank is contingently liable
Total

Schedule 13 � Interest and Dividends Earned

Particulars	Year ended 31.3.__ (current year)	Year ended 31.3.__ (previous year)
I. Interest/discount on advances/bills
II. Income on investments
III. Interest on balances with Reserve Bank of India and other inter-bank funds
IV. Others
Total

Schedule 14 � Other Income

Particulars	Year ended 31.3.__ (current year)	Year ended 31.3.__ (previous year)
I. Commission, exchange and brokerage
II. Profit on sale of land, buildings and other assets
Less: Loss on sale of land, buildings and other assets
III Profit on exchange transactions Less: Loss on exchange transactions
IV. Profit on sale of investments (net) �Less: Loss on sale of investments
V. Profit on revaluation of investments �Less: Loss on revaluation of investments
VI. a) Lease finance income b) Lease management fee c) Overdue charges d) Interest on lease rent receivables
VII Miscellaneous income
Total

Schedule 15 � Interest Expended

Particulars	Year ended 31.3.__ (current year)	Year ended 31.3.__ (previous year)
I.������ Interest on deposits
II.����� Interest on Reserve Bank of India/ inter-bank borrowings
III.���� Others
Total

Schedule 16 � Operating Expenses

Particulars	Year ended 31.3.__ (current year)	Year ended 31.3.__ (previous year)
I.������ Payments to and provisions for employees
II.����� Rent, taxes and lighting
III.���� Printing and stationery
IV.���� Advertisement and publicity
V. (a) Depreciation on bank�s property other than Leased Assets �(b) Depreciation on Leased Assets
VI.���� Directors� fees, allowances and expenses
VII.��� Auditors� fees and expenses (including branch auditors� fees and expenses)
VIII. Law charges
IX.���� Postage, telegrams, telephones, etc.
X.����� Repairs and maintenance
XI.���� Insurance
XII Amortisation of Goodwill, if any
XIII���� Other expenditure
Total

Appendix -B

Consolidated Prudential Report (CPR)

General

Reporting Institution
Address
For the period ended	Sept/March 200X
Periodicity	Half-yearly
Date of Report
Validation Status of report

A. Details on subsidiaries/ associates / joint ventures

Sl. No.	Name of the subsidiary/ associates / joint ventures	Type of business	Relation with parent	Name of Regulator	Share-holding (%)	Remarks
1
2
3
4
..
..

Please provide details of all Indian and foreign subsidiaries / associates / joint ventures

B. Form of consolidated balance sheet of a bank

Format of the Balance Sheet is the same as provided for Consolidated Financial Statement (CFS) in Appendix A.

C. Form of consolidated Profit & Loss Account of a bank

Format of the Profit & Loss Account is the same as provided for Consolidated Financial Statements (CFS) in Appendix A

D. Select data on financial/risk profile of the consolidated bank

(i) Financials for the consolidated bank Position as at the end of September/ March 200X

Rs. in crore

Sl. No.	Parameters	Amount
1	Total Assets
2	Capital & Reserves
3	Regulatory Capital (Actual/ Notional) � after netting for consolidation
4	Risk-weighted assets (Actual/ Notional)
5	Capital Adequacy Ratio (Actual/ Notional) (%)
6	Total Deposit Funds
7	Total Borrowings
8	Total Advances (Gross)
9	Total Non-performing Advances (Gross)
10	Total Investments (Book Value)
11	Total Investments (Market Value)
12	Total Non-performing Investments
13	Total Non-performing Assets (incl. Advances & Investments which are non-performing) (Items 9 & 12)
14	Provision held for Non-performing Advances
15	Provisions held for Non-performing Investments
16	Profit before Tax (for Half-year/ Year ended Sept./ March)
17	Profit after Tax (for Half-year/ Year ended Sept./March)
18	Return on Assets (For Half-year / Year ended Sept./ March)
19	Return on Equity (For the Half-year / Year ended Sept./ March)
20	Total Off-balance sheet exposures (contingent credits)
21	Total Dividends paid (for Half-year/ Year ended Sept./March)

(ii) Large Exposures

(a) Large Exposures to Individual Borrowers

Sl. No.	Name of the Borrower	Amount (Rs. in crore)	% to capital funds

(b) Large Exposures to Borrower Groups

Sl. No.	Name of the Borrower Group	Amount (Rs. in crore)	% to capital funds

(iii) Forex Exposures

Total of Overnight Open Position Limit for the consolidated bank *	Amount (Rs. in crore)

(iv) Exposures to Capital Markets of the consolidated bank

Amount in Rs. crore

1. Advances to Capital Market
a. Fund based
b. Non-fund based
2. Equity Investment in Capital Market
3. Total Capital Market Exposure (1+2)
4. Total on-balance-sheet assets of the consolidated bank (excl. Intangible assets and accumulated losses) of the Previous March
5. Total Capital Market Exposure as a % of Total on-balance-sheet assets of the consolidated bank (excl. Intangible assets and accumulated losses) of the previous March (in per cent)
6. Net worth (Capital & Reserves)
7. Equity Investment in Capital Market (Investment in shares, convertible bonds and debentures and units of equity-oriented mutual funds) as a % of Net worth (in per cent)

(v) Exposure to Unsecured Guarantees and Unsecured Advances for the consolidated bank

Amount in Rs. Crore

1. Outstanding Unsecured Guarantees
2. Outstanding Unsecured Advances
3. Total Outstanding Advances
4. 20 percent of the bank�s outstanding unsecured guarantees plus total of outstanding unsecured advances as a % of total outstanding advances (in per cent)

(vi) CRR and SLR for the consolidated bank

Sl. No.	Parameter	Amount
1.	Cash funds for the consolidated bank eligible for CRR purposes (Rs. in crore)
2.	Liquid assets for the consolidated bank eligible for SLR purposes (Rs. in crore)
3.	Net Demand and Time Liabilities for the consolidated bank
4.	CRR for the consolidated bank (%)
5.	SLR for the consolidated bank (%)

(vii) Structural Liquidity Position for the consolidated bank

Amount in Rs. crore

	1 to 14 days	15 to 28 days	29 days and upto 3m	over 3m and upto 6m	over 6m and upto 12 m	over 1 year & upto 3 years	over 3y and upto 5y	Over 5 years	Total
1.Capital	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
2.Reserves and Surplus	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
3.Deposits	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
3.1.Current Deposits	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
3.2.Saving Bank Deposits	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
3.3.Term Deposits	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
3.4.Certificates of Deposits	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
4.Borrowings	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
4.1.Call and Short Notice	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
4.2.Inter Bank (Term)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
4.3.Refinances	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
4.4.Others	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
5.Other Liabilities and Provisions	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
5.1.Bills Payable	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
5.2.Inter-office Adjustment	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
5.3.Provisions	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
5.4.Others	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
6.Lines of Credit-commited to	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
6.1.Institutions	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
6.2.Customers	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
7.Unavailed portion of Cash Credit/ Overdraft/ Demand Loan component of Working capital	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
8.Letters of Credit/Guarantees	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
9.Repos	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
10.Bills Rediscounted (DUPN)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
11.SWAPS (Buy/Sell)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
12.Interest Payable	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
13.Others	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
A. TOTAL OUTFLOWS	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
1.Cash	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
2.Balances with RBI	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
3.Balances with other Banks	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
3.1.Current Account	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
3.2.Money at Call, Short Notice, Term Deposits & Other placements	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
4.Investments (Including those under Repos but excluding Reverse Repos)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
5.Advances (Performing)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
5.1.Bills Purchased and Discounted (Including bills under DUPN)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
5.2.Cash Credits, Overdrafts and Loans Repayable on Demand	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
5.3.Term Loans	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
6.NPAs (Advances and Investments)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
7.Fixed Assets	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
8.Other Assets	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
8.1.Inter-office Adjustments	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
8.2.Others	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
9.Reverse Repos	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
10.SWAPS (Sell/Buy)/maturing forwards	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
11.Bills Rediscounted (DUPN)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
12.Interest Receivable	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
13.Committed Lines of Credit	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
B. TOTAL INFLOWS	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
C. Mismatch (B-A)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
D. Cumulative Mismatch	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
E. C as % to A	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

 

GUIDANCE FOR FILING CONSOLIDATED PRUDENTIAL REPORT ON (CPR)

1.����� Introduction

The objective of the Consolidated Prudential Return (CPR) is to collect consolidated prudential information at the level of the group to which the supervised institution belongs. It aims to capture data mainly on the following areas

(i)������� Consolidated Balance sheet data in the format prescribed

(ii)������ Consolidated Profit & Loss Account in the format prescribed

(iii)������ Select data on financial/ risk profile of the consolidated bank: Consolidated financial data as per format, data on large exposures, forex exposures, CRR & SLR for the group and structural liquidity profile for the consolidated bank as a whole.

2.����� Periodicity of the return

Periodicity of the return is half-yearly as on March 31/ September 30. The first return may be submitted for the half-year ended March 2003.

3.����� General Guidelines

For compiling the consolidated balance sheet and profit & loss account as part of the CPR, the general guidelines for preparation of Consolidated Financial Statements (CFS) and consolidated Prudential Reports (CPR) issued by DBOD may be followed.

The following guidelines may also be used for preparing the return.

4.����� Section D of the Return- Select data on financial/risk profile of the consolidated bank

(i)������� Financials for the consolidated bank

For the consolidated financial data as per format (at the consolidated bank level), general guidance for preparation of balance sheet and profit & loss account for CPR may be used.

(ii)������ Large Exposures

Total credit exposure of the group to an individual borrower or a borrower group comprises both funded and non-funded exposures. For the purpose of exposure limits, outstanding amount or the sanctioned limit, whichever is higher should be reported. Consolidation of the exposures from different entities of the consolidated bank would be required to be done by the reporting institution for compiling this section. Funded exposures: Comprise loans and advances (including bills purchased/discounted), and investments in bonds/debentures and equities. Non-funded exposures comprise guarantees (financial), guarantees (non-financial), letters of credit, underwriting commitments, etc.

Exposure by the consolidated bank to a single borrower/ debtor should not exceed 15% of its capital funds. Exposure by the consolidated bank to a borrower/ debtor group should not exceed 40% of its capital funds. The aggregate exposure on a borrower/ debtor group can exceed the exposure norm of 40% by an additional 10% (i.e. up to 50%) provided the additional exposure is for the purpose of financing infrastructure projects. Computation of capital funds, exposure etc. would be the lines of the methodology adopted for banks.

In this section, cases where the regulatory norm is breached in case of individual borrower or borrower group may be reported. At the minimum, the top 20 large exposures to individual borrowers/ borrower group of the consolidated bank may be reported.

(iii)������ Forex Exposures

Total of Overnight Open Position Limits for the consolidated bank may be reported here. Wherever Overnight Open Position Limits are not prescribed, the maximum Overnight Open Position during the period for such entities may be taken for consolidation. The position may be reported without netting across institutions.

(iv)������ Exposures to Capital Markets

Calculations of Capital Market Exposure would be similar to the computation for the parent bank. Advances (fund-based) to Capital Market would include loans to individuals, Share and Stock Brokers, Market Makers, etc., while Non-fund based facilities to Capital Market would include Financial Guarantees issued to Stock Exchanges on behalf of Stock Brokers and Other Financial Guarantees. Equity Investment in Capital Market would include Equities, Equity Oriented Mutual Funds and Convertible Bonds and Debentures.

(v)������� Exposure to Unsecured Guarantees and Unsecured Advances

The norms relating to unsecured guarantees and unsecured funded exposures on the lines of the guidelines issued to banks vide circular DBOD.No.666/C.96/(Z)-67 dated May 3, 1967, as amended from time to time, are also extended to the consolidated bank.

(vi)������ CRR and SLR for the Group

If the related entities in the consolidated bank are banks, liquidity position i.e., CRR and SLR would be monitored on a consolidated basis after netting out intra-group transactions and exposures. If the related entities in the consolidated bank are heterogeneous comprising non-banking entities, compliance with the CRR / SLR norms would be restricted to the banking entities on a consolidated basis. In respect of non-banking financial entities within bank groups, they should comply with the liquidity requirements prescribed at solo level.

(vii)����� Structural Liquidity Position for the consolidated bank

This section is supposed to capture the maturity structure of cash inflows and outflows for the consolidated bank as a whole, which is distributed in 8 maturity buckets. The maturity mismatches or gaps run by the consolidated bank in these 8 time bands would indicate the liquidity risk facing the consolidated bank. Intra-group transactions and exposures should be excluded from this consolidation.

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