Pursuant to RBI Circular No. DOR.CAP.REC.15/21.06.201/2023-24 dated May 12, 2023, the Bank has considered revaluation reserve, foreign currency translation reserve and deferred tax assets in calculation of Capital Adequacy Ratios as on March 31,2024.
*The Bank has raised Equity Share Capital of ? 4,500 through Qualified Institutional Placement on December 05, 2023. The Bank has issued and allotted 44,91,01,796 equity shares of face value ? 10 each at a premium of ? 90.20 per share to the investors.
The Bank has raised Additional Tier I Bonds Series VIII amounting to ? 1,500 crore on December 02, 2022.
The said computation of Capital to Risk weighted asset Ratio & Leverage ratio is arrived at after considering the effect of Net Present Value of non-interest bearing recapitalization bond infused as capital by the Government of India during the FY ended
Bank has redeemed Tier II Bonds Series X & Series XI amounting to ? 1,000 & ? 500 on September 25, 2023 and September 30, 2023 respectively.
Bank has raised Basel III Complaint Tier II Bonds Series XVI amounting to ? 2,000 on September 15, 2023.
(b) Draw down from Reserves:
During the year ended March 31, 2024, there has been no drawdown from reserves to the Profit and Loss Account.
$ including deposits in Foreign Currency # including advances in Foreign Currency
## Foreign Currency on Balance Sheet Assets represent Advances and Investments
$$ Foreign Currency on Balance Sheet Liabilities represent Borrowings and Deposits
Note: The maturity pattern of Deposits, Borrowings, Advances and Investment as of 31st March 2024 is based on the following:
RBI Guidelines on ALM
Behavioural studies of Assets & Liabilities which do not have definite maturity and for embedded optionality
Note:-
*On consolidated basis (including domestic operations, overseas centres and overseas subsidiaries)
@ Disclosure as on 31.03.2024 as well as 31.03.2023 has been done by taking simple averages of daily observations over previous 4 quarters (i.e. average for the FY 2023-24 & FY 202223 respectively). This is as per RBI guidelines ref. no. DBR. No.BP.BC.80 /21.06.201/2014-15 dated March 31,2015.
Qualitative disclosures with regard to LCR
The Liquidity Coverage Ratio (LCR) is one of the Basel Committee's key reforms to develop a more resilient banking sector. The LCR, a global standard, is also used to measure your Bank's liquidity position. LCR seeks to ensure that the Bank has an adequate stock of unencumbered High-Quality Liquid Assets (HQLA) that can be converted into cash easily and immediately to meet its liquidity needs under a 30-day calendar liquidity stress scenario. The LCR helps in improving the banking sector's ability to absorb shocks arising from financial and economic stress, whatever the source, thus reducing the risk of
spill over from the financial sector to the real economy. Based on Basel III norms, your Bank's average LCR stood at 153.12 per cent on a consolidated basis for financial year 2023-24 as against the regulatory threshold at 100 per cent.
The LCR standard aims to ensure that a bank maintains an adequate level of unencumbered High Quality Liquid Assets (HQLA) that can be converted into cash to meet its liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario. At a minimum, the stock of liquid assets should enable the bank to survive until next 30 calendar days under a severe liquidity stress scenario.
High Quality Liquid Assets (HQLA)
LCR =
Total net cash outflows over the next 30 calendar days
Liquid assets comprise of high-quality assets that can be readily encashed or used as collateral to obtain cash in a range of stress scenarios.
Here,
- HQLA comprises of level 1 and level 2 assets, in other words these are cash or near to cash items which can be easily used / discounted in the market in case of need. While Level 1 assets are with 0% haircut, Level 2A and Level 2B assets are with 15% and 50% haircuts respectively.
- Net cash outflows are excess of total outflow over total inflow under stressed situation as defined by Basel / RBI. While arriving at the net cash outflow, the inflows are taken with pre-defined hair-cuts and the outflows are taken at pre-defined run-off factors. In order to determine cash outflows, the Bank segregates its deposits into various customer segments, viz., Retail (which include deposits from individuals), Small Business Customers (those with deposits upto Rs 7.5 crore), and Wholesale (which would cover all residual deposits). Within Wholesale, deposits that are attributable to clearing, custody, and cash management services are classified as Operational Deposits. Other contractual funding, including a portion of other liabilities which are expected to run down in a 30 day time frame are included in the cash outflows. These classifications, based on extant regulatory guidelines, are part of the Bank's LCR framework, and are also submitted to the RBI.
- Total expected cash inflows are calculated by multiplying the outstanding balances of various categories of contractual receivables by the rates at which they are expected to flow in up to an aggregate cap of 75% of total expected cash outflows. In case stressed inflows are more than the stressed outflows, 25% of total outflows shall be taken as total net cash outflows to arrive at the LCR.
Main Drivers of LCR: The main drivers of the LCR are adequacy of High Quality Liquid Assets (HQLA) and lower net cash outflow on account of higher funding sources from retail customers. Sufficient stock of HQLA helped the Bank to maintain adequate LCR.
Composition of HQLA: The composition of High Quality Liquid Assets (HQLA) mainly consists of cash balances, excess SLR, excess CRR, Securities under MSF and FALLCR (Facility to Avail Liquidity for Liquidity Coverage Ratio).
Concentration of funding sources: Majority of Bank's funding sources are from retail customers & small business customers therefore the stressed outflows are comparatively lower. Bank does not have significant funding concentration from any counterparty. In the Indian context, the run-off factors for the stressed scenarios are prescribed by the RBI, for various categories of liabilities (viz., deposits, unsecured and secured wholesale borrowings), undrawn commitments, derivative-related exposures, and offset with inflows emanating from assets maturing within the same time period. Given below is a table of run-off factors for deposits:
Derivative Exposures and potential collateral calls: Bank has very little exposure in derivative business which is not very significant.
Currency mismatch in the LCR: In terms of RBI guidelines, a significant currency is one where aggregate liabilities denominated in that currency amount to 5 per cent or more of the bank's total liabilities. In our case, USD is the only significant currency.
Description of the degree of centralization of liquidity management and interaction between the group's units:
The liquidity management of the Bank at enterprise level is a Board level function and a separate sub-committee of the Board (R.Com.) keeps close watch on that. The periodical monitoring of the liquidity management is being monitored by the ALCO at regular intervals. The entire liquidity management process of the Bank is being governed by Global ALM Policy of the Bank. Liquidity for the Bank's domestic banking operations is directly managed at the Head Office. The overseas branches and offshore unit of the Bank independently manage their liquidity
requirements with support from the Head Office. Similarly, the Bank's subsidiaries independently manage their liquidity requirements under guidance of the R.COM, which, along with senior management of the subsidiaries, reviews the risk assessment of material risks at the subsidiaries. Further, the Bank maintains suitable systems and processes to monitor liquidity requirements in other currencies as appropriate.
The average LCR based on daily average of three months (Q4 FY 2023-24) for the quarter ended March 31, 2024 was at 126.41% as against 148.08% for the quarter ended December 31,2023 and well above the present prescribed minimum regulatory requirement of 100%. The average HQLA for the financial year ended March 31, 2024 was Rs.155,585.17 crore with 99.55% being Level 1 Assets whereas Level 2A and
level 2B assets constitute 0.82% and 0.29% respectively. The adjustment in average HQLA is (0.67%). During the financial year, the weighted average HQLA level has increased by Rs 13,813 primarily on account of increase in excess SLR balance. Further, weighted average net cash outflows position has increased by Rs 23,410 during the financial year, mainly on account of increase in cash outflows under the head unsecured wholesale funding.
The Bank has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory requirements. Retail deposits constitute major portion of total funding sources, which are well diversified. Management is of the view that the Bank has sufficient liquidity cover to meet its likely future commitments.
The objective of the Net Stable Funding Ratio (NSFR) is to promote the resilience of bank's liquidity risk profiles and to incentivize a more resilient banking sector over a longer time horizon. The NSFR guidelines ensure reduction in funding risk over a longer term horizone by requiring banks to fund their activites with sufficientyl stable sources of funding in order to mitigate the risk of future stress. The NSFR is defined as the amount of Available Stable Funding relative to the amount of Required Stable Funding.
Available Amount of Stable Funding (ASF)
NSFR = >100%
Required Amount of Stable Funding (RSF)
RBI issued the regulations on the implementation of the Net Stable Funding Ratio in May 2018 with minimum requirement of equal to at least 100%. The implementation is effective from 1st October, 2021. NSFR is computed at Bank's standalone and consolidated level.
Available Stable Funding (ASF) is defined as the portion of capital and liabilities expected to be reliable which is determined by various factors/ weights according to the nature and maturity of liabilities with liabilities having maturity of 1 year or more receiving 100% weight.
Required Stable Funding (RSF) is defined as the portion of on balance sheet and off-balance sheet exposures which requires to be funded on an ongoing basis. The amount of such stable funding required is a function of the liquidity characteristics and residual maturities of the various assets held.
Brief about NSFR of the Bank
The main drivers of the Available Stable Funding (ASF) are the capital base, retail deposit base, and funding from non-financial companies and long-term funding from institutional clients. The capital base formed around 11%, retail deposits (including deposits from small sized business customers) formed 70% and wholesale funding formed 6% of the total Available Stable Funding, after applying the relevant weights.
The Required Stable Funding primarily comprised lending to corporates, retail clients and financial institutions which constituted 62% of the total RSF after applying the relevant weights. The stock of High-Quality Liquid Assets which majorly includes cash and reserve balances with the RBI, government debt issuances attracted no or low amount of stable funding due to their high quality and liquid characteristic. Accordingly, the HQLA constituted only 2% of the Required Stable Funding after applying the relevant weights. Other assets and Contingent funding obligations, such as committed credit facilities, guarantees and letters of credit constituted 36% of the Required Stable Funding.
Bank's NSFR comes to 129.71% at consolidated basis as on 31st March 2024 and is above the minimum regulatory requirement of 100% set out in the RBI. As on 31st March 2024, the weighted Available Stable Funding (ASF) position stood at ? 6,56,960 and weighted Required Stable Funding (RSF) position stood at ? 5,06,499.
(i) Government Securities (Face Value) amounting to ? 35,489.39 (previous year ? 32,964.87) are kept as margin with RBI, CCIL, Clearing House and Exchange towards margin/security settlement.
(ii) Bank has acquired additional stake of 4.92% for ? 675.63 in its subsidiary namely, PT Bank of India Indonesia TBK which resulted in goodwill on consolidation of ? 65.51, and the same has been adjusted and written off during the year.
(iii) Bank has infused additional capital of ? 148.72 in its subsidiary namely, Bank of India (Uganda) Limited and
? 19.20 in Bank of India Investment Managers Private Limited during the year ended March 31, 2024.
(iv) Bank has infused additional proportionate capital in FY 2022-23 in the following associate Regional Rural Banks whereby allotment happened in FY 2023-24:
a. ?110.09 in Vidharbha Konkan Gramin Bank.
b. ?139.08 in Madhya Pradesh Gramin Bank.
(v) Bank has infused additional proportionate capital in FY 2022-23 of ? 152.04 in Aryavrat Bank which is pending for allotment.
(c) Sale and transfers to/from HTM category during the financial year 2023-24:
The total value of sale and transfers of securities from HTM category during April 1, 2023 to March 31, 2024 has not exceeded 5% of the book value of investments held in HTM category as on March 31, 2023. The 5 per cent threshold referred to above will exclude:
(a) The one-time transfer of securities to/from HTM category with the approval of Board of Directors permitted to be undertaken by banks at the beginning of the accounting year.
(b) Sale to the Reserve Bank of India under preannounced OMO auctions.
(c) Repurchase of Government Securities by
Government of India from banks.
(d) Sale of securities or transfer to AFS/HFT consequent to the reduction of ceiling on SLR securities under HTM, in addition to the shifting permitted at the beginning of the accounting year.
(e) Divergence in asset classification and provisioning:
As per RBI Master Direction No. RBI/DOR/2021-22/83 DOR.ACC.REC.No.45/21.04.018/2021-22 dated August 30, 2021 (updated as on 01.04.2024) on Financial statements - Presentation and Disclosures, divergence in the asset classification and provisioning, Banks should disclose divergences, if either or both of the following conditions are satisfied:
(a) the additional provisioning for non-performing assets (NPAs) assessed by RBI exceeds 5% of the reported profit before provisions and contingencies for the reference period, and;
(b) the additional Gross NPAs identified by the RBI exceeds 5% of reported incremental Gross NPAs for the reference period.
Divergences are within threshold limits in the Bank as specified above. Hence, no disclosure is required with respect to Divergence in Asset Classification and Provisioning.
(f) Disclosure of transfer of loan exposures:
Disclosure of Transfer of Loan Accounts (SMAs & NPAs) in terms of RBI Circular No. DOR.STR. REC.51/21.04.048/2021-22 dated September 24, 2021:
a. The Bank has not transferred any loans not in default or Special Mention Accounts (SMA) during the year ended March 31,2024.
b. Details of loans not in default acquired through pool buyout via assignment are given below:
(c) Disclosures on risk exposure in derivatives i. Qualitative Disclosure
The Bank enters into derivative contracts such as interest rate derivatives, currency swaps and currency options to hedge on balance sheet assets and liabilities or to meet client requirements as well as for trading purpose as per policy approved by the Board. These products are used for hedging risk, reducing cost and increasing the yield. In such transactions, the types of risks to which the bank is exposed to, are credit risk, market risk, operational risk etc.
Risk management is an integral part of bank's business management. Bank has risk management policies designed to identify and analyse risks, to set appropriate risk limits and to monitor these risks and limits on an on-going basis by means of reliable and up to date management information systems. The risk management policies and major control limits are approved by the Board of Directors and they are monitored and reviewed regularly. The organization of the Bank is conducive to managing risks. There is sufficient awareness of the risks and the size of exposure of the trading activities in derivative operations.
The Bank has a Risk Management Committee of Directors presided over by the Chairman.
The hedge/non-hedge (market making) transactions are recorded separately. Income/expenditure on hedging derivatives is accounted on accrual basis.
Forex forward contracts are marked to market and the resultant gains and losses are recognized in the profit and loss account.
Interest rate derivatives and currency derivatives other than exchange traded derivatives for trading purpose are marked to market and the resulting losses, if any, are recognised in the Profit and Loss account. Net Profit, if any, is ignored.
Exchange traded derivatives entered into for trading purposes are valued at prevailing market rates based on rates given by the Exchange and the resultant gains and losses are recognized in the Profit & Loss account.
Gains/losses on termination of the trading swaps are recorded on the termination date as income/expenditure. Any gain/loss on termination of hedging swaps are deferred and recognised over the shorter of the remaining contractual life of the swap or the remaining life of the designated assets/liabilities.
Option fees/premium is amortised over the tenor of the option contract.
Bank has a proper system of submitting periodical reports to Senior and Top Management and Board as well as regulatory authorities as required by RBI and/or as per operational requirements. Bank has clearly spelt derivative guidelines on various aspects approved by the Board of Director. The derivative transactions are subject to concurrent, internal, statutory and regulatory audits.
The counter parties to the transactions are banks, primary dealers and corporate entities. The deals are done under approved exposure limits. The Bank has adopted the Current Exposure method prescribed by Reserve Bank of India for measuring Credit Exposures arising on account of interest rate and foreign exchange derivative transactions. Current exposure method is the sum of current credit exposure and potential future exposure of these contracts.
The current credit exposure is the sum of positive mark to market value of these contracts i.e. when the Bank has to receive money from the counter party.
Potential future credit exposure is determined by multiplying the notional principal amount of these contracts irrespective of whether the contract has zero, positive or negative mark to market value by the relevant addon factors as under according to the nature and residual maturity of the instrument.
While computing the credit exposure, “sold options” are excluded wherever the entire premium/fee or any other form of income is received / realized.
As per the extant RBI guidelines, credit exposures computed as per the current Mark to Market value of the contracts, also attracts provisioning requirement as applicable to the loan assets in the “Standard” category, of the concerned counterparty. At present, the provision is to be maintained at 0.40% of the risk weighted assets. The Bank makes the requisite provision as aforesaid in the books.
Reserve Bank of India vide its Circular No. RBI/2021-22/105 DOR.ACC.REC.57/21.04.018/2021-22 dated
October 4, 2021, permitted Banks to amortise the additional liability on account of revision in family pension over a period not exceeding five years beginning with the financial year ending March 31, 2022, subject to a minimum of 1/5th of the total amount being expensed every year. The Bank recognised the additional liability on account of revision in family pension amounting to ? 612.09 and has opted to amortise the said liability over a period not exceeding five years, beginning financial year ending March 31, 2022.
Accordingly, Bank has recognised ? 142.40
(? 306.04) as an expense in the Profit and Loss account, for the year ended March 31, 2024 and the balance unamortised liability of ? 41.22 (?183.63) has been carried forward. If the unamortised liability had been fully recognised in the Profit & Loss account by the Bank, the Net Profit (after tax) for the year ended March 31, 2024 would have been lower by ? 30.84 (?119.46).
(j) In accordance with RBI circular no.DBRNo. BP.BC.18/21.04.048/2018-19 dated January 1, 2019, on “Micro, Small and Medium Enterprises (MSME) sector -Restructuring of Advances”, as amended from time to time, the details of MSME restructured accounts as on March 31,2024 is as under:
(f) Implementation of IFRS converged Indian Accounting Standards (Ind AS):
RBI vide its circular DBR.BP.BC.No.29/21.07.001/2018-19 dated March 22, 2019, deferred implementation of Ind AS till further notice as the legislative amendments in Banking Regulation Act, 1949 as recommended by RBI are under consideration of the Government of India. However, RBI requires all banks to submit Proforma Ind AS Financial Statements (PFS) every half year. Accordingly, the Bank has been preparing and submitting to RBI Proforma Ind AS Financial Statements (PFS) half-yearly with effect from September-2021, after seeking approval of Steering Committee formed for monitoring of implementation of Ind-AS in the Bank. The PFS are also presented to Audit Committee of Board and Board for information and reporting.
(h) Facilities granted to Directors and their relatives:
Applicable only to UCBs
(i) Disclosure on amortisation of expenditure on account of enhancement in family pension of employees of banks(k) Disclosure of Letters of Comfort (LoCs) issued by bank for Subsidiaries (As compiled by the management):
During the year 2023-24, the bank has not issued any Letter of Comfort on behalf of Subsidiaries.
During the year 2010-11, the bank had issued parental guarantee in favour of Royal Bank of New Zealand, for its wholly owned subsidiary, Bank of India (New Zealand) Ltd. to meet its financial obligations, if they fall due.
As on 31.03.2024, no financial obligations have arisen on the above commitments.
(l) Income Tax:
i. Claims against the Bank not acknowledged as debt under contingent liabilities (Schedule 12) include disputed income tax/interest tax liabilities of ? 2,909.92 (previous year ? 355.86) for which no provision is considered necessary based on various judicial decisions in respect of past assessments on such disputes. Payments/adjustments against the said disputed dues are included under Other Assets (Schedule 11).
ii. Provision for taxes has been arrived at after due consideration of the provisions of the applicable tax laws and relevant judicial decisions on certain disputed issues.
(m) The Details of Number of Investors complaints for the year ended March 31, 2024: Pending at Beginning: Nil;
Received: 162; Disposed off: 161 and Pending at the end: 01.
(n) In accordance with the RBI guidelines, during the year ended March 31, 2024, Bank has shifted Central Government securities with a face value of ? 3,259.70 (Book Value ? 3,264.70) and State Government securities with a face value of ? 3,576.06 (Book Value ? 3,580.31) from HTM to AFS category. Further, Bank has not shifted any security from AFS to HTM category. Units of Venture Capital Fund for an amount of ? 2.53 Crore has been shifted from HTM to AFS category.
(o) In respect of RBI referred NCLT accounts (List 1 & 2) as on March 31, 2024, Bank holds 100% provision of the outstanding value of ? 3,265.74.
(p) Pursuant to bipartite agreement on wage revision with effect from November 1, 2022, Bank has made final provision of ? 110 Crore and ? 837 Crore for the quarter and year ended March 31, 2024, and total provision amount of ? 1,101 Crore has been held by the Bank as on March 31, 2024.
(q) Other Income includes commission and brokerage income, profit/loss on sale of assets, profit/loss on revaluation of investments (net) (including depreciation on performing investments), earnings from foreign exchange and derivative transactions, recoveries from accounts previously written off, dividend income, etc.
(r) The Board of Directors has recommended a dividend of ? 2.80 per equity share (28%) for the year ended March 31, 2024 subject to requisite approvals.
(s) Balancing of Subsidiary Ledger Accounts, confirmation/ reconciliation of balances with foreign branches, Inter-
is not considered to be material.
office accounts, NOSTRO Accounts, Suspense, Draft Payable, Clearing Difference, other office accounts, etc. is in progress on an on-going basis. In the opinion of the management, the overall unadjusted impact on the financial statements, if any, of pending final clearance/ adjustment of the above, is not likely to be significant.
(t) Other Income / Expenditure exceeding 1% of total income
Other Income: Other Income includes below income exceeding 1% of the total income of the Bank.
Disclosure requirements as per Accounting Standards (AS):6.1 Accounting Standard - 5 Net Profit / loss for the period, Prior Period Items and changes in accounting policies:
(i) Prior Period Items:
During the year, there were no material prior period income / expenditure items.
(ii) Change in accounting policy:
There is no change in the Significant Accounting Policies followed during the year ended March 31, 2023 as compared to those followed in the previous financial year ended March 31, 2022.
6.2 Accounting Standard 9 - Revenue recognition
Certain items of income are recognised on realisation basis as per Accounting Policy para 3 of Schedule 17: Significant Accounting Policies. However, the said income
The bank has recognised contribution to employees' Provident Fund/Defined contribution scheme as an expense. During the year, the bank has contributed ? 445.17 (Previous Year ? 391.94) towards such fund which is a defined contribution plan.
** The bank has been recognising the liability of sick leave to full extent hitherto i.e. entire outstanding leave balance. In line with the Guidance Note on implementation of Employee Benefits (AS-15) - (revised 2005) in respect of Sick Leave, the liability in this regard is recognised based on probability of availing such leaves by employees.
The Bank's best estimate of contributions expected to be paid during the annual period beginning after the Balance sheet date, towards Pension is ? 2,356.36(Previous Year ? 2,215.86) and towards Gratuity is ? 25.38 (Previous Year: ? 22.78).
The Bank has recognised Business Segments as Primary reporting segment and Geographical Segments as Secondary segment in line with RBI guidelines in compliance with Accounting Standard 17.
Primary Segment: Business Segments
a) Treasury: ‘Treasury' segment includes the entire investment portfolio i.e. dealing in Government and other Securities, Money Market Operations and Forex Operations including Derivative contracts.
b) Wholesale Banking: Wholesale Banking includes all lending activities which are not included under Retail Banking.
c) Retail Banking: Retail Banking segment comprises of Digital Banking and Other Retail Banking.
Digital Banking includes digital banking products acquired by DBUs.
Other Retail Banking includes all housing loan accounts and borrower accounts having exposure up to ? 7.50 crore.
Pricing of Inter-Segmental transfers
Retail Banking Segment is a Primary resource mobilising unit and Wholesale Segment and Treasury Segment compensates the Retail banking segment for funds lent by it to them taking into consideration the average cost of deposits and borrowings incurred by it.
Allocation of Costs:
a) Expenses directly attributed to particular segment are allocated to the relative segment.
b) Expenses not directly attributable to specific segment are allocated in proportion to number of employees/business managed.
Secondary Segment: Geographical Segments
a) Domestic Operations
b) International Operations
6.5 Accounting Standard 18 - Related Party Transactions (As compiled by the management and relied upon by the Auditors):
I) List of Related Parties:
a. Key Managerial Personnel:
Managing Director & CEO: Shri Atanu Kumar Das (superannuated on 19.01.2023)
Shri Rajneesh Karnatak (from 29.04.2023)
Executive Directors: Shri P R Rajagopal
Shri Swarup Dasgupta (superannuated on 29.2.2024)
Shri M. Karthikeyan
Smt Monica Kalia (up to 15.11.2022)
Shri Subrat Kumar
Shri Rajiv Mishra (from 01.03.2024)
The transactions with wholly owned subsidiaries and regional rural banks being state controlled, have not been disclosed in view of Para 9 of AS - 18 on Related Party disclosure issued by ICAI exempting 'State Controlled Enterprises' from making any disclosure pertaining to their transactions with other related parties which are also 'State Controlled Enterprises'. Further, in terms of paragraph 5 of AS 18, transactions in the nature of Banker - Customer relationship have not been disclosed including those with Key Management Personnel and relatives of Key Management Personnel, since the disclosure would conflict with Bank's duties of confidentiality.
6.6 Accounting Standard 19 - Leases:- Operating leases are cancellable at the option of the Bank. The amount of lease expenses recognized in the Profit & Loss Account for such operating lease is ? 717.00 (Previous Year: ? 676.84).
During quarter ended September 30, 2023, the Bank exercised the irreversible option to shift from old tax regime under the Income-tax Act, 1961 to the new tax regime under section 115BAA of the Income-tax Act, 1961, effective from Assessment Year 2023-24. Resultantly, the deferred tax assets (net) as at June 30, 2023 has been re-measured based on the applicable tax rate as per the new regime, resulting in additional one-time charge ? 1,459.89 in the Profit and Loss Account in quarter ended September 30, 2023 and year ended March 31, 2024.
6.9 Accounting Standard 24 - Discontinuing Operations:
In consonance with the Government of India directives and as a part of strategic initiatives for rationalisation of Overseas Operations, in Financial year 2019-20, the Bank has sold its overseas subsidiary i.e. Bank of India (Botaswana) Ltd. for consideration of ?14.64 and remaining cost of investment of ? 19.18 has been fully provided.
For the Financial year 2023-24, we confirm that there is no disinvestment of our overseas subsidiaries.
6.10 Accounting Standard 27 - Investments in Joint Venture
Investments include ? 98.17 (Previous year ? 98.17) representing Bank's interest in the following jointly controlled entity:
B. Contingent Liabilities:
Such liabilities are dependent upon, the outcome of court order/arbitration/out of court settlement, disposal of appeals and the amount being called up, terms of contractual obligations, devolvement and raising of demand by concerned parties, as the case may be. No reimbursement is expected in such cases.
7. Figures of the previous period have been regrouped / reclassified, wherever considered necessary to conform to the current period's classification.
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