SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED MARCH 31,2025

1 BASIS OF PREPARATION

The financial statements have been prepared under the historical cost convention unless otherwise stated. They conform to Generally Accepted Accounting Principles (GAAP) in India, which comprises statutory provisions, regulatory/ Reserve Bank of India (RBI) guidelines, Accounting Standards/ guidance notes issued by the Institute of Chartered Accountants of India (ICAI) and the practices prevalent in the banking industry in India. In respect of foreign offices, statutory provisions and practices prevailing in respective foreign countries are complied with.

2 USE OF ESTIMATES

The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as of date of the financial statements and the reported income and expenses for the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized prospectively from the period of change unless otherwise stated.

3 INVESTMENTS AND DERIVATIVES:

The Bank is following a uniform methodology of accounting for investments on settlement date basis. Classification and valuation of the Bank’s investments are carried out in accordance with RBI Master Circular RBI/DOR/2023-24/104 DOR.MRG.36/21.04.141/2023-24 dated September 12, 2023.

3.1 Classification

a) Basis of classification

In compliance with the Reserve Bank of India guidelines, the investment portfolio ofthe Bank is classified into

i) “Held to Maturity” (HTM): Held to Maturity comprising Investments acquired with the intention to hold them till maturity. Investments classified as “Held to Maturity” includes debentures / bonds where the contractual terms ofthe security give rise to cash flows that are solely payments of principal and interest on principal outstanding (‘SPPI criterion’) on specified dates.

ii) “Available for Sale” (AFS): Available for Sale

comprising Investments acquired with an objective that is achieved by both collecting contractual cash flows and selling securities. AFS securities inter-alia include debt securities held for asset liability management (ALM) purposes that meet the SPPI criterion where the intent is flexible with respect

to holding to maturity or selling before maturity. Further, on initial recognition, the bank makes an irrevocable election to classify an equity instrument that is not held with the objective of trading under AFS.

iii) “FairValueThrough Profit&Loss” (FVTPL): FairValue Through Profit & Loss comprising Investments that do not qualify for inclusion in HTM or AFS. “Held for Trading” (HFT) are a separate sub-category within FVTPL.

iv) “Investments in Subsidiaries, Associates and Joint Ventures”: Investments in Subsidiaries, Associates and Joint Ventures comprising investments in Subsidiaries, Associates and Joint Ventures that are in a distinct category separate from the other investment categories (viz. HTM, AFS and FVTPL).

For the purpose of disclosure in the balance sheet, 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.

b) Cost of acquisition

All investments are measured at fair value on initial recognition. Unless facts and circumstances suggest that the fair value is materially different from the acquisition cost, it is presumed that the acquisition cost is the fair value. Cost such as brokerage pertaining to investments, paid at the time of acquisition and broken period interest are charged to the profit & loss account as per the RBI guidelines.

c) Transfer between categories

Reclassification of investments from one category to the other, if done, is in accordance with RBI guidelines. The reclassification are applied prospectively from reclassification date.

On reclassification of investments from one category to another category, the accounting treatment is done as per Chapter VI - Reclassification between categories in RBI master direction RBI/DOR/2023-24/104 DOR. MRG.36/21.04.141/2023-24 dated September 12, 2023.

3.2 Valuation

All investments are measured at fair value on initial recognition. Unless facts and circumstances suggest that the fair value is materially different from the acquisition cost, it is presumed that the acquisition cost is the fair value.

Investments classified as “Held to Maturity” are carried at weighted average acquisition cost / amortized cost and are not marked to market (MTM). However, they are subject to income recognition, asset classification and provisioning norms as per RBI guidelines. Amortization of premium/discounton investments in the HTM category is accounted under interest income in accordance

with RBI Master Circular RBI/DOR/2023-24/104 DOR. MRG.36/21.04.141/2023-24 dated September 12, 2023.

Investments in Treasury Bills, Commercial Papers and Certificates of Deposit are valued at carrying cost.

Pass through Certificates purchased for priority sector lending requirements are valued at Book Value as per RBI guidelines.

Investments in Regional Rural Banks, subsidiaries, joint ventures and associates (both in India and abroad) are valued at acquisition cost less diminution, other than temporary in nature.

Bank’s investments in units of Venture Capital Funds (VCFs) are valued using Net Assets Value shown by VCF as per the financial statements or declared NAV as per Reserve Bank of India guidelines. If NAV/ audited financials are not available for more than 18 months continuouslythen at? 1/- perVCF.

Investments categorized under AFS and FVTPL categories are fair valued on a periodical basis at least on a quarterly basis as per relevant RBI guidelines. Any discount or premium on the acquisition of debt securities under AFS/FVTPL are amortized to the interest income over the remaining life of the instrument. The valuation gains and losses across all performing investments, irrespective of classification (i.e., Government securities, Other approved securities, Bonds and Debentures, etc.), held under AFS are aggregated. The net appreciation or depreciation are directly credited or debited to a reserve named AFS-Reserve without routing through the Profit & Loss Account. The valuation gains and losses across all performing investments, irrespective of classification (i.e., Government securities, Other approved securities, Bonds and Debentures, etc.), held under FVTPL are directly credited or debited to the Profit and Loss Account. Further, Securities under AFS/FVTPL are subject to income recognition, asset classification and provisioning norms as per RBI guidelines. The book value of individual securities is updated consequent to periodic fair valuation of investments.

All investments (i.e., including debt and equity) in subsidiaries, associates and joint ventures are held at acquisition cost. Any discount or premium on the acquisition of debt securities of subsidiaries, associates and joint ventures are amortized to the interest income overthe remaining life of the instrument. The investments in subsidiaries, associates or joint ventures are evaluated for impairment on a quarterly basis. Any diminution in the value of investment is provided by recognizing it as an expense in the Profit and Loss Account and be reversed through Profit and Loss Account, if there is a reversal ofthe diminution in the value.

Investments received in lieu of restructured advances scheme are valued in accordance with RBI guidelines. The investment is fair valued as per classification of investment under AFS/ FVTPL category. Depreciation on

equity shares acquired and held by the Bank under the restructuring scheme is provided as per RBI guidelines.

At the end of each reporting period, security receipts issued by the asset reconstruction company are valued in accordance with the guidelines applicable to such instruments, prescribed by RBI from time to time.

a. The investment in Security Receipts (SRs) obtained by way of NPA to SC/ARC, is recognized at lower of

(i) Net Book Value (NBV) (i.e. book value less Provision held) of the financial asset

(ii) Redemption Value of SR

b. SRs issued by an SC/ARC are valued in accordance with the guidelines applicable to non-SLR instruments. Accordingly, in cases where the SRs issued by the SC/ARC are limited to the actual realization of the financial assets assigned to the instruments in the concerned scheme, the Net Asset Value, obtained from SC/ARC, is reckoned forvaluation ofsuch investments.

c. As per RBI circular RBI/DOR/2024-25/135 DOR. STR.REC.72/21.04.048/2024-25 March 29, 2025; on guidelines for government-guaranteed security Receipts, banks are permitted to reverse any excess provision to the profit and loss Account in the year of transfer of loan to Asset reconstruction company (ARC) for the value higher than the net book value (NBV), provided the consideration consists solely of cash and SRs guaranteed by the Government of India. Such SRs shall be valued periodically by reckoning the Net Asset Value (NAV) declared by the ARC based on the recovery ratings received for such instruments.

The quoted equity shares / bonds/ units of Category I and II AIFs in the bank's portfolio are marked to market preferably on a frequent basis.

The units are valued based on the audited results once in a year. However, if the audited balance sheet/ financial statements showing NAV figures are not available continuously for more than 18 months as on the date of valuation, the investments are valued at Rupee 1 per Category I and II AIF.

Investments made by the Bank as Primary Dealer in Treasury Bills under HFT category is being valued at carrying cost.

The Bank undertakes short sale transactions in Central Government dated securities in accordance with RBI guidelines. The short sale position is reflected in Securities Short sold (SSS) account, specifically created for this purpose. The short position is marked to market and profit/loss, if any, is charged to the Profit and Loss account. Profit /Loss on settlement of the short position is recognized in the Profit and Loss account.

Special bonds such as Oil bonds, fertilizer bonds, UDAY bonds etc which are directly issued by Government of lndia,are valued based on FBILvaluation.

For the purpose of valuation of quoted investments in "Fair Value through Profit and Loss" and "Available for Sale" categories, the market rates / quotes on the Stock Exchanges, the rates declared by Financial Benchmarks India Pvt. Ltd(FBIL) are used.

Investments for which such rates / quotes are not available are valued as per norms laid down by Reserve Bank of India, which are as under:

Non-performing investments are identified and depreciation/provision are made thereon based on the RBI guidelines. Based on management assessment of impairment, the Bank additionally creates provision over and above the RBI guidelines. The depreciation/ provision on such non-performing investments are not set off against the appreciation in respect of other performing securities. Interest on non-performing investments is not recognized in the Profit and Loss account until received.

In respect of Investments at Overseas Branches, Reserve Bank of India guidelines or those of the host countries, whichever are more stringent are followed. In case of those branches situated in countries where no guidelines are specified, the guidelines of the Reserve Bank of India are followed.

3.3 Disposal of Investments

Profit / Loss on sale of Investments classified as HTM category is recognized in the Profit & Loss Account based on the weighted average cost / book value of the

related Investments and an amount equivalent of profit on sale of Investments in “Held to Maturity” classification is appropriated to Capital Reserve Account.

Upon sale or maturity of a debt instrument in AFS category, the accumulated gain/ loss for that security in the AFS-Reserve is transferred from the AFS-Reserve and recognized in the Profit and Loss Account. In the case of equity instruments designated under AFS at the time of initial recognition, any gain or loss on sale of such investments is not transferred from AFS-Reserve to the Profit and Loss Account. Instead, such gain or loss are transferred from AFS-Reserve to the Capital Reserve.

Profit/loss on sale or maturity of Investment in FVTPL category is recognized in profit and loss account.

Any gain/ profit arising on the reclassification/ sale of an investment in a subsidiary, associate or joint venture are recognized in the Profit and Loss Account and then appropriated below the line from the Profit and Loss Accountto the ‘Capital Reserve Account’.

3.4 Accounting for repo/reverse repo

The Bank has adopted the Uniform Accounting Procedure prescribed by the RBI for accounting of Market Repo and Reverse Repo transactions [Including the Liquidity Adjustment Facility (LAF) with the RBI vide circular no. RBI/2016-17/FMOD.MAOG. No. /01.01.001/2016-17 Dated September 15, 2016 and circular no. RBI/2019-20/107 FMRD.DIRD.21/14.03.038/2019-20 Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 Dated November 28, 2019. Repo and Reverse Repo Transactions are treated as Collateralized Borrowing / Lending Operations with an agreement to repurchase on the agreed terms. Securities sold under Repo are continued to be shown under investments and Securities purchased under Reverse Repo are not included in investments. Costs and Revenues are accounted for as interest expenditure / income, as the case may be.

3.5 Investment fluctuation reserve

With a view to building up of adequate reserves to protect against increase in yields, RBI through circular number RBI/DOR/2023-24/104 DOR.MRG.36/21.04.141/2023-24 dated September 12, 2023, advised all banks to create an IFR.

Transfer to IFR will be lower of the following (i) net profit on sale of investments during the year or (ii) net profit for the year less mandatory appropriations, until the amount of IFR is at least 2 percent ofthe FVTPL (including HFT) and AFS portfolio, on a continuing basis.

3.6 Derivatives

The Bank presently deals in interest rate and currency derivatives. The interest rate derivatives dealt with by the Bank are Rupee Interest Rate Swaps, Foreign Currency Interest Rate Swaps, Exchange traded Rupee Interest Rate Future and Forward Rate Agreements. Currency

Derivatives dealt with by the Bank are Options, Currency swaps and Exchange traded Currency Future. The Bank undertakes derivative transactions for market making/ trading and hedging on-balance sheet assets and liabilities. The Bank identifies the hedged item (asset or liability) at the inception of the hedging transaction itself. Hedge effectiveness is ascertained at the time of the inception of the hedge and at each reporting date thereafter.

3.7 Valuation of Derivatives

The Bank values derivatives as under:

The hedge/ non-hedge transactions are recorded separately. For transactions designated as hedges, following treatment is followed -

• In case of a fair value hedge, the changes in the fair value of the hedging instruments and hedged items are recognized in the Profit and Loss Account,

• In case of cash flow hedges, the changes in fair value of effective portion are recognized in Reserves and Surplus under ‘Cash flow hedge reserve’ and ineffective portion of an effective hedging relationship, if any, is recognized in the Profit and Loss Account. The accumulated balance in the cash flow hedge reserve, in an effective hedging relationship, is recycled in the Profit and Loss Account at the same time that the impact from the hedged item is recognized in the Profit and Loss Account.

Derivative positions, unless designated as hedges, are marked to market and the resulting profit/losses, are shown as derivative asset and liabilities as separate line “Other Assets & Other Liabilities” respectively. Income and expenditure relating to interest rate swaps are accrued on daily basis. Gains/ Losses on termination of the trading swaps are recorded on the termination date as immediate income/expenditure.

For the purpose of valuation, the fair value of the total swap is computed on the basis of the amount that would be receivable or payable on termination of the swap agreements as on the Balance sheet date. The resulting profit/losses are shown as asset and liabilities as separate line items in “Other Assets & Other Liabilities” respectively.

The Bank follows the option premium accounting principle prescribed by FEDAI. Premium on option transaction is recognized as income/expense 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. Charges receivable/payable on cancellation/ termination of foreign exchange forward contracts and swaps are recognized as income/expense on the date of cancellation/ termination.

Valuation of Interest Rate Futures (IRF)/Currency Futures is carried out on the basis of the daily settlement price of each contract provided by the exchange.

Contingent Liabilities on account of derivative contracts denominated in foreign currencies are reported at closing rates of exchange notified by FEDAI at the Balance Sheet date.

4 ADVANCES

4.1 Advances in India are classified as Standard, Substandard, Doubtful or Loss assets and provision for advances are made as per the Prudential Norms of the RBI except as stated in para 4.3. In respect of Advances made in overseas branches, Advances are classified in accordance with Prudential Norms prescribed by the RBI or local laws of the host country in which advances are made, whichever is more stringent.

4.2 Advances are net of specific loan loss provisions, interest suspense, amount received and held in suit-filed Sundry Deposits and Claims Received.

4.3 As constant practice, the Bank has made the additional provision on the following:

• Provision @ 20% on the Secured Sub-standard Advances as against the Regulatory requirement of 15%.

• Provision is made on non-fund-based facilities of NPA Borrowers by applying 50% Credit conversion factor (CCF). The provision is based on the Asset class of fund-based facility of the Borrower.

• Bank has also made 100% provision in respect of existing NPA accounts which are more than 6 months old and collateral free viz Auto Loan, Education Loan and Personal Loan.

• With respect to Loan against mortgage of properties which are secured (collateral) and are NPA for more than 2 years, Bank has made 100% provision.

• Bank has also made 100% provision in respect of existing NPA accounts viz Loan for Tractors/ tiller/ Power tillers which are 6-month-old.

4.4 In respect of Restructured accounts, Provision for diminution in fair value of restructured advances is measured at net present value terms as per RBI guidelines for accounts where total dues to bank are ' 1 crore and above. For other accounts, the provision for diminution in fair value is computed notionally at 5% of total exposure to the bank as per RBI Guidelines.

4.5 In case of sale of financial assets to Asset Reconstruction Company (ARC) / Securitization Company (SC), the bank is following the guidelines issued by Reserve Bank of India. At present, the guideline followed by the Bank is that if the sale is at a price below the netbook value (NBV), (i.e. Book value less provisions held) the shortfall is debited to the profit and loss account in the same year. If the sale value is hiqher than the NBV, excess

provision is reversed to profit & loss account in the year the amounts are received.

In the case of sales of financial assets to banks, and the sale is at a price below the net book value (NBV), (i.e. Book value less provisions held) the shortfall is debited to the profit and loss account in the same year. If the sale value is higher than the NBV, excess provision shall not be reversed but will be utilized to meet the shortfall / loss on account of sale of other non-performing financial assets.

5 FLOATING PROVISIONS:

The Bank has a policy for creation and utilization of floating provisions separately for advances, investments and general purposes. The quantum of floating provisions to be created is assessed every year. The floating provisions are utilized only for contingencies under extraordinary circumstances specified in the policy with prior permission of Reserve Bank of India.

6 FIXED ASSETS

6.1 Premises and other fixed assets are stated at historical cost (or revalued amounts, as the case may be), less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Subsequent expenditure incurred on assets put to use is capitalized only when it increases the future benefit / functioning capability from / of such assets. Profit on sale of immovable properties are being formed part of profit and loss account of the Bank.

6.2 Revaluation of Fixed Assets

Portfolio of immovable properties is revalued periodically by an independent valuer to reflect current market valuation. All land and building owned by the Bank and used as branches, administrative offices, staff quarters etc. are grouped under Bank’s own premises in the fixed assets category. Appreciation as per latest valuation report, if any, on revaluation is credited to Revaluation Reserve under Capital Reserves. Additional Depreciation on the revalued asset is charged to the Profit and Loss Account and appropriated from the Revaluation Reserves to Other Revenue Reserve.

6.3 Premises include land and building under construction.

7 RESERVES AND SURPLUS

Revenue and other Reserves include Statutory Reserves created by foreign branches/ subsidiaries as per applicable local laws of the respective countries.

8 REVENUE RECOGNITION

8.1 Income (other than item referred to in Paragraph 8.2)/ expenditure is generally recognized on an accrual basis. Interest on income tax refund is booked on receiving the refund order/s/intimation from Income Tax Department. In the case of foreign offices, income/ expenditure is recognized as per the local laws of the country in which the respective foreign office is located.

8.2 Income by way of Fees, all Commissions (other than on Government business and commission from sale of third-party products), Commission on Guarantees, Letter of Credits, Exchange and Brokerage and Interest on Advance Bills are accounted for on realization basis. Dividend on shares in Subsidiaries, joint ventures and associates is accounted on realization basis.

8.3 In view of uncertainty of collection of income in cases of Non-performing Assets/lnvestments, such income is accounted for only on realization in terms of the RBI guidelines.

8.4 Lease where risks & rewards of ownership are retained by lessor are classified as Operating Lease as per AS 19 (Leases). Lease payments on such lease are recognized in Profit & Loss Account on a straight-line basis over the lease term in accordance with AS 19.

8.5 Appropriation of recoveries in NPA accounts :

Recoveries effected in the account (including recovery under Public Money Recovery Act) from time to time should be appropriated in the following order:

• towards all costs, commission, charges and expenses paid or incurred bythe Bank

• towards interest, additional interest, further interest, penal interest due to the Bank

• towards payment of the principal money

Recovery in suit filed/ decreed accounts should be appropriated:

• As per the directives of the concerned Court.

• In the absence of specific directives from the Court, as applicable to non-suit filed accounts.

Recovery by settlement through compromise/NCLT Resolution:

In case of Resolution/Settlement through NCLT or compromise sanctioned account, recovery should be appropriated as per the terms of compromise sanction/ resolution settlement.

8.6 Appropriation of recoveries in Standard accounts :

The appropriation of recovery in Standard Accounts is effected as per the date of demands raised and the earliest demand is being satisfied in the following order:

• towards all costs, commission, charges and expenses paid or incurred bythe Bank

• towards interest, additional interest, further interest, penal interest due to the Bank

• towards payment of the principal money 9 EMPLOYEE BENEFITS

9.1 PROVIDENT FUND

Provident fund is a statutory obligation as per Bank of Baroda PF Rules as the Bank pays fixed contribution

at pre-determined rates. The obligation of the Bank is limited to such fixed contribution. The contributions are charged to Profit and Loss Account. The fund is managed by Bank of Baroda Provident Fund Trust.

9.2 GRATUITY

Gratuity liability is a statutory obligation being higher of gratuity payment as per Bank of Baroda Gratuity Fund Rules and Regulations and Payment of Gratuity Act 1972. This is provided for on the basis of an actuarial valuation made at the end of the financial year. The gratuity liability is funded by the bank and is managed by Bank of Baroda Gratuity Fund Trust.

9.3 PENSION

Pension liability is a defined benefit obligation under Bank of Baroda Employees’ Pension Regulations 1995 and is provided for on the basis of actuarial valuation made at the end of the financial year, for the employees who have joined Bank up to March 31, 2010 and opted for pension. The pension liability is funded by Bank of Baroda (Employees) Pension Fund Trust.

New Pension Scheme which is applicable to employees who joined bank on or after April 1, 2010 is a defined contribution scheme, Bank pays fixed contribution at pre-determined rate and the obligation of the Bank is limited to such fixed contribution. The contribution is charged to Profit and Loss Account.

9.4 COMPENSATEDABSENCES

Accumulating compensated absences such as Privilege Leave and unavailed sick leave are provided for based on actuarial valuation.

9.5 OTHER EMPLOYEE BENEFITS

Other Employee benefits such as Leave Encashment, Leave Fare Concession and Additional Retirement Benefit on Retirement are provided for based on actuarial valuation.

In respect of overseas branches and offices, the benefits in respect of employees other than those on deputation are valued and accounted for as per laws prevailing in the respective territories.

10 DEPRECIATION

10.1 Depreciation on Fixed Assets in India [other than those referred in Paragraph 10.3 and 10.4] is provided in accordance with Schedule II to the Companies Act, 2013, as per following table, except in case of revalued assets, in respect of which depreciation is provided on the basis of estimated useful life of these revalued assets

12.4 Translation in respect of Integral Operations:

a) The transactions are initially recorded at a rate as per FEDAI guidelines.

b) Foreign Currency Assets and Liabilities (including contingent liabilities) are translated at the closing spot rates notified by FEDAI at the end of each quarter.

c) The resulting exchange differences are recognized as income or expenses and are accounted through Profit & Loss Account. Any reversal / payment of foreign currency assets & liabilities is done at rate as per FEDAI guidelines and the difference between the outstanding figure and the amount for which reversal / payment is made is reflected in profit and loss account.

d) Foreign exchange spot and forward contracts outstanding as at the balance sheet date and held for trading, are marked to market at the closing spot and forward rates respectively notified by FEDAI and at interpolated rates for contracts of interim maturities. The MTM values thus obtained are discounted to arrive at present value of MTM. This MTM is used to revalue the spot and forward transactions on PV basis. The resulting Forward Valuation profit or loss is included in the Profit & Loss Account.

12.5 Translation in respect of Non Integral Operations:

a) Assets and liabilities are translated at the closing spot rates notified by FEDAI at the end of each quarter.

b) Foreign exchange Spot and Forwards contingent liabilities outstanding as at the balance sheet date are translated at the closing spot and forward rates respectively notified by FEDAI and interpolated rates for contracts of interim maturities.

c) Income and expenses are translated at quarterly average rate notified by FEDAI at the end of each quarter.

d) The resulting exchange differences are not recognized as income or expense for the period but accumulated in a separate account “Foreign Currency Translation Reserve” till the disposal ofthe net Investment.

13 TAXES ON INCOME

This comprise of provision for Income tax and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period) as determined in accordance with AS 22 (Accounting for taxes on Income) issued by ICAI. Deferred tax is recognized subject to consideration of prudence in respect of items of income and expenses those arise at one point of time and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the timing differences are expected to be reversed. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment ofthe change.

14 EARNINGS PER SHARE

The bank reports basic and diluted earnings per equity share in accordance with the AS 20 (Earnings per Share) issued by the ICAI. Basic earnings per equity share has been computed by dividing net profit for the period by the weighted average number of equity shares outstanding for the period. Diluted earnings per equity share has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

15 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

As per AS 29 (Provisions, Contingent Liabilities and Contingent Assets) issued by the ICAI, the Bank recognizes provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefit is remote.

Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

16 SEGMENT REPORTING

The Bank recognizes the Business Segment as the Primary reporting segment and Geographical segment as the Secondary reporting segment in accordance with the RBI guidelines and in compliance with the Accounting Standard 17 issued by ICAI.

17 CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand and ATMs, balances with the Reserve Bank of India, balances with other banks and money at call and short notice (including effect of changes in exchange rates on cash and cash equivalents in foreign currency).