At present, data captured on derivatives include only the notional principal amount under different broad types of derivatives as OBS exposures in the ALE Return and for calculation of capital adequacy in the Return on Capital Adequacy. Keeping in view the increasing risk exposures arising out of such businesses, it has been decided to broaden the existing derivative reporting framework. Accordingly the following additional information would be captured in the ALE Return by expanding the existing table on ‘Contracts and Derivatives’ and adding two new tables as detailed below:

All Notional Amounts

2.1 As per the circular DBOD.No.BP.BC. 103 / 21.04.151/ 2003-04 dated June 24, 2004, banks have been advised to maintain capital charge for market risks in a phased manner over a two year period, as detailed below:

1. Capital for market risks on securities included in the Held for Trading category, open gold position limit, open foreign exchange position limit, trading positions in derivatives and derivatives entered into for hedging trading book exposures by March 31, 2005, and

2. In addition to (a) above, capital for market risks on securities included in the Available for Sale category by March 31, 2006.

In order to enable banks to report the capital charge for market risk, the Return on Capital Adequacy has been amended as follows:

2.2 The existing reporting framework has been modified by adding a new column ‘Of which held under Banking Book’ to capture position under Banking Book out of the total exposure in respect of various items which would be subject to credit risk and reported in Section A - assets, and in Section C- Contracts and Derivatives. The amended tables referred above would be as follows effective from the quarter ended March 2005.

2.3 A new table (Section D) has been added in the return to capture capital charge for market risk on trading book as shown below:

All the charges / modifications in the Return on Capital Adequacy as explained above would become applicable from the quarter ended March 31 2005 onwards. When the application detects system date April 1, 2005 or afterwards, a pop up message will come immediately after logging into the application

The application will automatically update the risk weights once the ‘Yes’ option is clicked and the return would be visible with new table / rows / columns and risk weights. For entering data from the period ended March 2005 onwards, updation of risk weights essential hence the option ‘Yes’ should be clicked. If risk weights are not updated, data entry for RCA cannot be made for the period ended March 2005 onwards. Thus the return in the existing format would be available till March 31, 2005. It may be mentioned that the RCA return for the period ended December 2004 has to be submitted in the existing format only.

A new item ‘Profit and Loss from Derivatives’ has been added under the existing memorandum item in the return.

The following changes have been effected in the return as detailed below:

As per the extant exposure norms, the exposure ceilings are computed in relation to total capital as defined under capital adequacy standards (Tier I and Tier II Capital) effective from April 1, 2002. Accordingly, the additional data on capital funds presently captured in the return have been dropped and only the data on regulatory capital would henceforth be collected for calculating the individual and group exposures.

Under Part A ‘Ownership Pattern – the words ‘….shareholders who have holding of 5% or more of the total equity shares’ has been changed to ‘….shareholders who have holding of 1% or more of the total equity shares’.

7.1 Under Section A – Credit Risk – Clientele wise credit concentration – a new item ‘Auto Loans’ has been added.

7.2 A new table on derivatives has been added with the following details:

7.4 Under the existing annual Bank Profile Return (RBP), details of credit card business carried out by the bank or through its subsidiaries are captured. Now it has been decided to shift the credit card table from RBP to RBS1 return.

A new table has been added at the end of the existing IRS return to capture details of book value and realisable market value of investments held under HTM, AFS and HFT categories, provisions held and modified duration under each of the investment category. The objective of the new table is to capture the interest rate risk of the investment portfolio. The details of the new table are as follows:

The child screen for entering data on Top 20 deposits has been modified. The child screen would display all the six types of deposits in a fixed format with default zero values. Data may be entered in the relevant type of deposit and come to the parent screen by clicking ‘Back’ button. It is no longer necessary to fill every type of deposits even if there is nothing to report. The total of the six types of deposits would be automatically populated in the parent screen. The existing ‘total’ and ‘date of maturity’ fields in the child screen have been dispensed with.

10.1 Screen 24 - Section VI – exposure to unsecured guarantees and unsecured advances for the consolidated bank – the existing calculated field (no 4) has been disabled and the filed has been made editable. Banks should calculate and enter the percentage data manually.

In screen 16, banks are required to attach the copy of the significant accounting policies and notes to accounts. There are two buttons ‘Browse’ and ‘View’ in the screen. For attaching the relevant document files, the browse button should be used to indicate the folder where the document is available. Once the document is selected, the screen shows the folder where the document would be copied which is C:\DWNLOAD\.....Once the document is selected, the same may be viewed by clicking ‘’View’ button on the screen. While forwarding the downloaded return file to RBI, please also copy the relevant document files from C:\DWNLOAD\ folder and send along with the ret file.

Presently banks submit the above two annual returns, Bank Profile Return (RBP) and Balance Sheet Analysis (BSA), based on audited accounts. The RBP, introduced in 1997, is essentially a self processed return incorporating financial and organisational data both on domestic and overseas operations of the banks. The BSA return, introduced in1999, initially provided a framework for analysing audited accounts by banks themselves in a uniform way. The scope and coverage of the BSA return was enhanced significantly since 2002 to include the entire published balance sheet, profit & loss accounts, all schedules, significant accounting policies, notes to accounts, auditors report and certain other disaggregated data on advances and NPAs. After the revision of the BSA return, a need has been felt to rationalise the two returns for simplification and avoiding overlap in data collection. Again, the BSA return provided a framework to banks for analysing audited balance sheet and annual accounts in a uniform manner and place the same before the Board for approval. Over the last five years, banks have acquired sufficient skill and expertise in analysing their financial performance. Besides, with increasing disclosure and transparency norms and applicability of accounting standards, market discipline has taken a much firmer root. After a detailed exercise, the two returns have been integrated and rationalised as stated below.

2.1 Data on credit card business captured in the RBP return has been shifted to RBS1 return. The rationale for the shifting is that data on outstanding, gross NPLs, loss provisions made on credit card business are captured in the existing RBS return as part of retail loan portfolio.

2.2 Following data / information presently captured in the RBP return have been shifted to the BSA return;

• Organisational profile with modifications in the section on technology status.

• Ratio denominators.

• Financials -overseas and global.

2.4 Portion of the data captured for carrying out the analysis and the performance measures in the BSA return have been discontinued. However, banks are advised to continue to carry out the analysis of their audited annual accounts as per the framework and put up the same to their Boards for information and approval.

2.5 Data on asset classification, movements of NPLs, netting items on loan assets, and select key data presently captured in the BSA analytical framework would continue to be captured.

In screen 16 of the BSA return, banks are required to attach the copy of the significant accounting policies, notes to accounts and auditor’s report. There are two buttons ‘Browse’ and ‘View’ in the screen. For attaching the relevant document file, the ‘browse’ button should be used to indicate the folder where the document is available. Once the document is selected, the screen shows the folder where the document would be copied which is C:\DWNLOAD\....... Once the document is selected, the same may be viewed by clicking ‘the ’View’ button on the screen. While forwarding the ret file to RBI, please also copy the relevant document files from C:\DWNLOAD\ folder and send along with the ret file.

1. A utility has been included in the input module to store names of signatories of the various returns. This utility is available under ‘dropdown menu ‘Data’ – ‘Signatory Master’. The name of the signatory and counter signatory’s name may be entered for each individual return. The names of signatories stored in the system would be printed automatically while taking print out of respective return. In case of any change in names, new names may be saved by editing the existing names for the relevant returns.

2. Presently, records for the Tranche II returns (STL, IRS, MAP and SIR) can be added in the input module only after the end of the relevant reporting month / quarter although the reporting date is ‘‘last reporting Friday’’. In order to enable banks to enter data before the end of the month / quarter, the input module has been revised which would allow data entry immediately after the relevant reporting Friday of the period.

3. The bank code and bank name would be automatically displayed on the first screen of each return.

4. The unaudited data entered for RBS1 and CPR1 returns for March quarter would get populated at user’s option while preparing the audited version of the same returns for the same quarter.

5. The unaudited data entered for the ‘Return on Ownership and Control (ROC)’ for March period would get populated at user’s option while preparing the same return for September period.

6. The upgraded module supports duplex printing (printing on both side of paper) provided the printer has duplex printing facility. While printing a return, the screen would show two print buttons – one for ‘printer setup’ and the other for ‘print’. For printing on both side of paper, click ‘printer setup’ – properties – ‘print on both sides’. – ‘OK’. Then the ‘print’ button may be clicked to print the return.

7. For easier navigation among various screens within certain large returns, the user may navigate directly to the desired screen by pressing the button ‘Browse to’ located on the front screen of four returns (ALE, RAQ, BSA, CPR).

Though there are no changes in DSB – O returns, certain common functionalities like change in upload / download logic, display of bank code and period, duplex printing facility, etc have been affected in the revised input module. Therefore, it is recommended that the upgraded input module may be used by all the overseas branches preparing the DSB-O returns and submitting to the International Banking Division of the respective bank in India for consolidation and onward submission to RBI. It may be stated that the overseas branches and the consolidating unit in India must use the same version of the input module.