Basel III Disclosures DF-2. CAPITAL ADEQUACY Qualitative Disclosures:

Transcription

1 Basel III Disclosures DF-2 CAPITAL ADEQUACY Qualitative Disclosures: Bank has a Board-approved ICAAP(Internal Capital Adequacy Assessment Process) Policy Capital requirement for current business levels and estimated future business has been assessed as per ICAAP CAR (Capital Adequacy Ratio) has been worked out based on Basel-II and Basel-III guidelines. CAR is estimated to be above the regulatory minimum level of 9% Quantitative Disclosures : (Rs. in crores) Capital requirements for credit risk Portfolios subject to standardized approach Securitisation exposures Capital requirements for market risk Standardised duration approach; Interest rate risk Foreign exchnage risk (including gold) Equity risk Capital requirements for operational risk Basic indicator approach TOTAL Common Equity Tier 1, Tier 1 and Total Capital ratio 7.96%, 8.20%, 10.48% Total and Tier-1 capital adequacy ratio (Rs. in crores) Estimated at a capital level of Rs and Tier-1 capital of Rs Total CAR 10.48% CAR (Tier-1) 8.20% RWA T-1 Capital (DF2) Total Cap (DF2)

2 DF-3 CREDIT RISK: GENERAL DISCLOSURES: (INCLUDING EQUITIES): Qualitative Disclosures: (a) General Qualitative Disclosures I. Definitions of Impaired Assets : Bank is following extant RBI definitions of these categories. (The definitions used are given in Appendix-I). II. Credit Risk Management: Risk Governance Structure is in place (organization chart as per Appendix-II). Credit Risk Management Committee and Risk Management Committee of the Board are the principal committees that review credit risk management Following Board-approved policies with regard to credit risk are in place: o Credit Risk Management and Loan Policy o Credit Risk Mitigation & Collateral Management Policy o Stress Testing Policy Bank s policies take into account the need for better credit risk management and avoidance of risk concentration Policies are reviewed periodically. Exposure limits for Single Borrower, Group Entities, different categories of borrowers, specific industry /sector, etc. have been stipulated. Specific norms and guidelines for appraisal and sanction, documentation, inspection and monitoring, renewal, maintenance, rehabilitation and management of assets have been stipulated in the Credit Risk Management and Loan Policy, with provision of adequate leg room for innovation and deviation permissible under a proper authority structure. Stress test on advances is carried out at quarterly intervals and placed before the CRMC and RMCB for review. Quantitative Disclosures : Fund Based Amount in Rs. Crores Non Fund Based Total Total Gross Credit Risk Exposures Geographic Distribution of Exposures : FB / NFB i- Overseas ii- Domestic Industry Type Distribution of Exposures as per DSB returns Fund based / Non Fund Based separately Residual Contractual Maturity Breakdown of Assets as used in ALM returns Amount of NPAs (Gross) i.e. SUM of (i to v) i. Substandard ii. Doubtful iii. Doubtful iv. Doubtful v. Loss Net NPAs NPA Ratios i) Gross NPAs to gross advances 4.38% (%) ii) Net NPAs to net advances (%) 2.64% Movement of NPAs (Gross) i) Opening balance ii) Additions Please refer to Table A Please refer to Table B

3 iii) Reductions iv) Closing balance Movement of Provisions for NPAs i) Opening balance ii) Provisions made during the period iii) Write-off iv) Write-back of excess provisions 0.00 v) Closing balance Amount of Non-Performing Investments 0 Amount of Provisions held for Non-Performing Investments Movement of Provisions for Depreciation on Investments Opening balance Provisions made during the period 1.37 Write-off 0.56 Write-back of excess provisions Closing balance GROSS ADVANCES NET ADVANCES

4 TABLE A INDUSTRY-TYPE DISTRIBUTION OF EXPOSURE (Rs. In Crores) Code INDUSTRY Fund based Outstanding NF O/S Total Exposure 1 Coal 2 Mining 3 Iron & Steel 4 Metal Products 5 All Engineering 5.1 Of which (005) Electronics 6 Electricity 7 Cotton Textiles 8 Jute Textiles 9 Other Textiles 10 Sugar 11 Tea 12 Food Processing 13 Vegetable Oils & Vanaspathi 14 Tobacco/Tobacco Products 15 Paper / Paper Products 16 Rubber / Rubber Products 17 Chemicals/Dyes/Paints Etc 17.1 of which fertilisers 17.2 of which Petrochemicals 17.3 of which Drugs& Pharmaceuticals 18 Cement 19 Leather & Leather Products 20 Gems & Jewellery 21 Construction 22 Petroleum 23 Automobiles & Trucks 24 Computer Software 25 Infrastructure Standard NPA Total

5 25.1 of which Power 25.2 of which Telecommunications 25.3 of which Roads & Ports 26 Other Industries 27 NBFCs & Trading 28 Res. Adv to Bal. Gross Advances Total

6 TABLE B Residual Contractual Maturity Breakdown of Assets as on Rs. in crores INFLOWS 1-14 DAYS days 29 days and upto 3 months Over 3 months and upto 6 months Over 6 months and upto 1 year Over 1 year and upto 3 years Over 3 years and upto 5 years Over 5 years TOTAL 1 Cash Balances with RBI Balances with other Banks Investments Advances Fixed Assets Other Assets TOTAL DF-4 CREDIT RISK: DISCLOSURES FOR PORTFOLIOS SUBJECT TO STANDARDISED APPROACH: Qualitative Disclosures: 5(a) Qualitative Disclosures I II. III Names of credit rating agencies used Changes, if any, since prior period disclosures in the identified rating agencies and reasons for the same Types of exposures for which each agency used/ to be used IV Description of the process used to transfer public issue ratings onto comparable assets in the banking book Remarks Domestic Credit Rating Agencies: CRISIL, ICRA, CARE India Ratings & Research Pvt. Ltd., Brickworks Ratings and SME Ratings Agency of India limited (SMERA) International Rating Agencies (IRA): FITCH, Moody s and S& P No change Ratings done by the identified rating agency are to be used for various types of exposures as follows: (i) For exposures with a contractual maturity of less than or equal to one year (except Cash Credit, Overdraft and other Revolving Credits), Short-term Ratings will be applicable. (ii) For domestic Cash Credit, Overdraft and other Revolving Credits (irrespective of the period) and for Long Term exposures of over 1 year, Long Term Ratings will be applicable. (iii) For overseas exposures, irrespective of the contractual maturity, Long Term Ratings given by IRAs will be applicable. Long-term issue-specific ratings (our own exposures or other issuance of debt by the same borrower-constituents/counterparty) or issuer (borrower-constituents/ counter-party) ratings can be applied to other unrated exposures of the same borrower-constituents/ counter-party in the following cases:

7 (i) If the issue-specific rating or issuer rating maps to a risk weight equal to or higher than the unrated exposures any other un-rated exposure on the same counter-party will be assigned the same risk weight, if the exposure ranks pari-passu or junior to the rated exposure in all respects. (ii) In cases where the borrower-constituent/ counter-party has issued a debt (which is not a borrowing from our Bank), the rating given to that debt may be applied to Bank s unrated exposures if the Bank s exposure ranks pari-passu or senior to the specific rated debt in all respects and the maturity of Bank s unrated exposures are not later than maturity of rated debt. Quantitative Disclosures: The exposure amount after Risk Mitigation subject to Standardised Approach i.e. amount of outstanding (rated and unrated taken together) in different risk-buckets as well as the amount that are deducted, if any: (Rs. in Crore) Below 100% Risk Weight 100% Risk Weight More than 100% Risk Weight Amount deducted, if any ( Credit Risk Mitigation ) TOTAL

8 DF-13 Disclosure template for main of regulatory capital instruments Equity Lower tier- II (Serie-IV) Lower tier- II (Serie-VI) Lower tier- II (Serie-V) Upper tier- II (Serie-I) Upper tier- II (Serie-II) IPDI Bonds (Series-1) 1 Issuer State Bank of Bikaner and Jiapur 2 Unique identifier (e.g. CUSIP, ISIN or Bloomberg identifier for private placement) 648A A A A A Governing law(s) of the instrument Regulatory treatment Indian Laws 648A Transitional Basel III rules CET1 T2 T2 T2 T2 T2 AT1 648A Post-transitional Basel III rules CET1 Ineligible Ineligible Ineligible Ineligible Ineligible Ineligible 6 Eligible at solo/group/ group & solo Solo Solo Solo Solo Solo Solo Solo 7 Instrument type Equity Bonds Bonds Bonds Bonds Bonds Bonds 8 Amount recognised in regulatory capital (Rs. in crore, as of most recent reporting date) Par value of instrument 10/- 10,00,000/ 10,00,000/ 10,00,000/ 10,00,000/ 10,00,000/ 10,00,000/ 10 Accounting classification Shareholder Equity Liability Liability Liability Liability Liability Liability 11 Original date of issuance Various date Perpetual or dated Perpetual Dated Dated Dated Dated Dated Perpetual 13 Original maturity date No maturity No maturity 14 Issuer call subject to prior supervisory approval 15 Optional call date, contingent call dates and redemption amount No No No No Yes Yes Yes NA NO NO NO Rs.150 Crore Rs. 300 crore Rs.200 crore 16 Subsequent call dates, if applicable NA NA NA NA No No No Coupons / dividends Dividends Coupons Coupons Coupons Coupons Coupons 17 Fixed or floating dividend/coupon Floating FIXED FIXED FIXED FIXED FIXED FIXED 18 Coupon rate and any related index NA 7.45% 9.15% 9.02% 10.25% 9.78% 9.85% 19 Existence of a dividend stopper No NA NA NA NA NA NA 20 Fully discretionary, partially discretionary or mandatory Fully discretionary Mandatory Mandatory Mandatory partially discretionary partially discretionary partially discretionary 21 Existence of step up or other incentive to redeem 22 Noncumulative or cumulative NA Non cumulative NA No No No Yes Yes Yes Non cumulative Non cumulative Non cumulative Non cumulative Non cumulative 23 Convertible or non-convertible NA Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible 24 If convertible, conversion trigger(s) NA NA NA NA NA NA NA 25 If convertible, fully or partially NA NA NA NA NA NA NA 26 If convertible, conversion rate NA NA NA NA NA NA NA 27 If convertible, mandatory or NA NA NA NA NA NA NA optional conversion 28 If convertible, specify instrument NA NA NA NA NA NA NA type convertible into 29 If convertible, specify issuer of NA NA NA NA NA NA NA instrument it converts into 30 Write-down feature No No No No No No No 31 If write-down, write-down trigger(s) 32 If write-down, full or partial NA NA NA NA NA NA NA NA NA NA NA NA NA NA

9 33 If write-down, permanent or temporary If temporary write-down, 34 description of write-up mechanism 35 Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) 36 Non-compliant transitioned NA NA NA NA NA NA NA NA NA NA NA NA NA NA Most subordinated claim in liquidation of the Bank Fully paidup, unsecured, subordinated of other creditors Fully paidup, unsecured, subordinated of other creditors Fully paidup, unsecured, subordinated of other creditors (a) Superior of investments in instruments eligible for inclusion in Tier-I capital and (b) Subordinated of all other creditors (a) Superior of investments in instruments eligible for inclusion in Tier-I capital and (b) Subordinated of all other creditors No Yes Yes Yes Yes Yes Yes Superior to the claims of investors in equity shares and subordinated of all other creditors 37 If yes, specify non-compliant NA No loss absorption No loss absorption No loss absorption No loss absorption No loss absorption No loss absorption

10 Table DF-14: Full Terms and Conditions of Regulatory Capital Instruments Type of Capital Main Innovative Perpetual Debt Instruments Unsecured, non-covertible, subordinated, Perpetual Bonds in the nature of Promissory Notes. Call option and step-up coupon available after 10 years (subject to RBI permission at the time). Other details: Amount: Rs.200 cr. Tenor : Perpetual (call option available after 10 years with permission of RBI). Coupon: 9.85% payable annually. Ratings: AAA by CARE and AAA-Stable by CRISIL. Upper Tier-II Subordinated Bonds Other details: Upper Tier-II Subordinated Bonds Type of Instrument : Unsecured, redeemable, non-convertible Subordinated Upper Tier-II Bonds in the nature of Promissory Notes. Call option and step up is available after 120 months(subject to RBI permission at the time) Amount : Rs.150 cr Other details: Tenor : 180 months maturing on: Coupon : 10.25% (fixed, payable annually) Rating : CARE AAA and CRISIL AAA/Stable Type of Instrument : Unsecured, redeemable, non-convertible Subordinated Upper Tier-II Bonds in the nature of Promissory Notes. Call option and step up is available after 120 months(subject to RBI permission at the time) Amount : Rs.300 cr Tenor : 180 months maturing on: Coupon : 9.78% (fixed, payable annually) Rating : CARE AAA and CRISIL AAA/Stable Lower Tier-II Subordinated Bonds (Fourth Series) Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Promissory Note. These are plain vanilla bonds with no special like put or call option. Other details: Amount : Rs.300 cr Tenure : 111 months maturing on: Coupon : 7.45% (fixed, payable annually) Rating : AAA by CRISIL and LAAA by ICRA Lower Tier-II Subordinated Bonds (Fifth Series) Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Promissory Note. These are plain vanilla bonds with no special like put or call option. Other details: Amount : Rs.500 cr Tenure : 120 months maturing on: Lower Tier-II Subordinated Bonds Coupon : 9.15% (fixed, payable annually) Rating : AAA/Stable (CRISIL) LAAA (Stable) (ICRA) Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Promissory Note. These are plain vanilla bonds with no special like put or call option. Other details: Amount : Rs.500 cr Tenure : 120 months maturing on: Coupon : 9.02% (fixed, payable annually) Rating : AAA by CRISIL and LAAA by ICRA

11 Appendix - I DEFINITIONS OF IMPAIRED ASSETS Non-performing assets An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank. Non-Performing Asset (NPA) is a loan or an advance where: Interest and/ or installments of principal remain overdue for a period of more than 90 days in respect of a Term Loan, The account remains out of order, in respect of an Overdraft/ Cash Credit (OD/ CC), The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted, The installment of principal or interest thereon remains overdue for two crop seasons for short duration crops, The installment of principal or interest thereon remains overdue for one crop seasons for long duration crops, The amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, In respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment. In case the interest due & charged during any quarter is not serviced fully within 90 days from the end of the quarter the account is classified as NPA 'Out of order' status An account is treated as 'out of order' if the outstanding balance remains continuously in excess of the sanctioned limit/ drawing power. In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/ drawing power, but either there are no credits continuously for 90 days in the account as on the date of balance sheet or the credits are not enough to cover the interest debited during the same period, these accounts are also treated as out of order. Overdue: Any amount due to the bank under any credit facility is overdue if it is not paid on the due date fixed by the bank.

12 Appendix -II General Manager (Risk Management, Credit Policy & Procedure) & CRO Dy. General Manager (Integrated Risk Management) Asstt. General Manager (Market Risk Management) Asstt. General Manager (Integrated Risk Management( Mid Office - Domestic Treasury Mid Office - Forex Treasury Asset Liability Management Credit Risk Management Operational Risk Management Basel Cell *****