EXPANDING FRONTIERS.
CONSOLIDATING CAPABILITIES.
SUSTAINING GROWTH.
11 12 ANNUAL REPORT
annual report 2011-12
Towards Social & Inclusive Empowerment
J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialised bank in other parts of India. It is the sole banker carrying out banking business on behalf of the Central Government, besides collecting central taxes for the Central Board of Direct Taxes. J&K Bank follows a multi-pronged business approach. It augments lending in the home state with the aim of enhancing margins, despite modest volumes. On the same note, the Bank endeavours to capture niche lending opportunities pan-India to multiply volumes and improve margins. J&K Bank operates on the principle of 'social empowerment of banking' as it seeks to deliver innovative financial solutions for households and SMEs.
Vision “To catalyze economic transformation and capitalize on growth”. Our vision is to engender & catalyze economic transformation of Jammu & Kashmir and capitalize from growth induced financial prosperity thus engineered. The Bank aspires to make Jammu & Kashmir the most prosperous state in the country, by helping in creation of a vibrant financial architecture for the Jammu & Kashmir economy, at the center of which will be the J&K Bank. Mission Our mission is two-fold: “To provide the people of Jammu & Kashmir international quality financial services and solutions and to be a superspecialist bank in the rest of the country”. The strategy is intended to make us one of the best banks in the country.
4
Corporate Overview 01
Board and Management Reports 50
Governance 138
Financial Statements 62
India Presence
Marketing tie-ups
• Head-quartered in Jammu & Kashmir, India • National Business Centre at Mumbai and North Zone Headquarters at Gurgaon • 603 pan-India branches (496 branches in Jammu & Kashmir) • 508 ATMs nation-wide (439 ATMs in Jammu & Kashmir)
• Reliance Money Express • Hindustan Petroleum Corporation Limited (HPCL) • Bharat Petroleum Corporation Limited (BPCL) • Indian Oil Corporation Limited (IOCL) • Maruti Suzuki India Limited • Ashok Leyland Limited • JCB India Limited
Credit-worthiness
• TVS Motor Company Limited
The products are rated CRISIL A1+/ FAA+ Stable, Fitch AA(ind) Stable and CARE AA indicating highest degree of safety regarding timely payment of financial obligations. The ratings reflect the Bank’s strong capitalisation, good resource profile and healthy asset quality.
• Mahindra Two Wheelers Limited • Bajaj Auto Limited • Tata Motors • Atul Auto Limited
Enroute to Rural Growth via Inclusive Development
For share-owners • • • •
• Set up 12 Rural Self Employment Training Institutes (RSETI) functioning successfully; has trained various unemployed people so far.
BSE: 532209 NSE: J&KBANK Consistent dividends over past four decades Market Capitalisation: ` 4,112.13 (as on 11th May, 2012) Crores
• Set up Common Service Centres or Khidmat Centres in the State on behalf of Government of India, Ministry of Information & Technology and Government of J&K; 1,100 CSCs are soon expected to be implemented in the State. • Sponsored J&K Grameen Bank, with a strong 184-branch rural network, for deeper penetration and service delivery. • Main intermediary in distribution and delivery of social security benefits, NREGA payments in the State. • Partnering as Debt Syndicator under Sher-eKashmir Employment and Welfare Programme for Youth (SKEWPY), launched by Government of J&K to generate employment opportunities.
Dominance in Jammu & Kashmir
70%
Share in agricultural lending
64
%
SHARE OF TOTAL BANK DEPOSITS
60.33%
Share in lending to MSME sector
67
%
61%
Share in total bank advances
Share in total priority sector advances
49.43%
71.20%
Share in lending to education sector
68.44%
Share in total non-priority sector advances
Share in lending to housing sector
5
annual report 2011-12
Participating in economic transformation of Jammu & Kashmir
Continuous evolution: The way to be Apple farmer. Policy follower. Market maker.
10
Corporate Overview 01
Board and Management Reports 50
Financial Statements 62
Governance 138
Kashmir is not famous for only the scintillating and picturesque Dal Lake, Shikara rides, splendid carpets and pashmina shawls. The blooming and lush-green fields of apple orchards add to the State’s natural beauty. More than 90,000 acres in the Kashmir valley are home to vast orchards of apple fruit.
77%
Jammu and Kashmir produces 77% of India’s apples. Apples constitute about 82% of the total quantity of fruits produced by the State.
However, the State’s infrastructure is highly inadequate and incapable of exploring the blooming sector’s full potential. Apple farmers remain uninformed, brand new facilities stayed empty and apples rot away. J&K Bank is driving the State’s apple economy in the form of financial assistance and other support structures to apple growers. J&K Bank’s Apple Project endeavours to provide comprehensive financial assistance to enhance apple production. This includes the necessary logistics support with respect to modern cultivation and farming techniques during the development of orchards. It also includes post harvest requirement, such as storage and marketing of the produce.
The Apple project has embedded a credit policy into J&K Bank’s vision envisaging ` 1 Lakh Crore revenue by 2012-13 end. Besides, it enables the Bank to extend its priority sector lending to agriculture and allied sectors to accelerate socio-economic growth in the State. Jammu & Kashmir produces 77% of India’s total apple production, three times higher than Himachal Pradesh and other apple-growing states. According to the horticulture census 1999-2000, apples constitute 82% of the total quantity of fruits produced by the State. Sustained economic growth, rising income levels and rapid urbanization are fuelling the demand growth for high-value commodities, such as apples. Such horticultural initiatives enjoy a comparative advantage over staple food items in terms of production and labour absorption. These are, hence, reckoned as an important activity for small orchard holders.
11
annual report 2011-12
Participating in economic transformation of Jammu & Kashmir
Rediscovering Paradise on Earth
16
Corporate Overview 01
Board and Management Reports 50
Financial Statements 62
Governance 138
13.14 lakh
Owing to persistent efforts of the state government, over 13.14 lakh domestic and foreign tourists visited the Kashmir Valley in 2011.
The hills and plains of Jammu & Kashmir continue to be extremely abuzz with enthusiasm and activity as tourists continue to throng the ‘Paradise on Earth’ in large numbers.
A sluggish national economy and global volatilities failed to deter the State’s encouraging growth momentum. J&K’s Gross State Domestic Product (GSDP) grew 6.78% during 2011-12, better than the nation’s economic performance, propelled by the tourism and local industries.
However, the State’s tourism and infrastructure landscape leave a lot to be desired. J&K Bank is hugely focused on critical indicators of the socio-economic well-being to revitalize the State’s economy and augment its significance on the national and global tourists’ itinerary.
17
annual report 2011-12
One step ahead as a national banker
A Recipe for national success Circa 2012 GRSL is today one of the leading FMCG companies in India with an international presence. It is engaged in a vast product line of edible oils such, as soya bean oil, cottonseed oil, palm oil (palmolein), sunflower oil, mustard oil, groundnut oil, vanaspati and industrial oils, such as castor oil.
Two intrepid individuals aimed to produce edible oils with great taste, nutrition and purity. With a mere capital of ` 5,000, they embarked upon their journey with the aim of reaching every Indian kitchen, and perhaps, that of the world. Circa 1984 The era of economic liberalisation was still almost a decade away. Hence, raising funds to set up a plant & machinery unit and acquiring the relevant technology posed a challenge for small entrepreneurs. And developing a new business, particularly in the FMCG sector, was a Herculean task, given stiff competition posed by the unorganized sector. With vast experience in trading of agri-commodities, Balwant Sinh Rajput and Kanubhai Thakkar took a plunge in the FMCG sector, especially in edible oils, albeit with a small capital. Overcoming the challenges, the duo set up a production unit of various types of edible oils and allied products. Eventually, in 1992, they successfully established Gokul Refoils & Solvents Limited (GRSL).
28
Within a span of two decades, GRSL established two major brands – Gokul and Zaika – in the edible oil category. It runs 4 production plants equipped with the latest machinery and technology in Gujarat and West Bengal. The company’s annual capacity is around 3,00,000 MT in seed crushing, 9,75,000 MT in refining and 6,75,000 MT in solvent extraction. GRSL’s industrial products (castor oil, de-oiled cakes, among others) have been well received internationally too. It’s subsidiaries are strategically located in key destinations across the world, besides a strong marketing and distribution network across 20 Indian states. The company’s products are exported to United States, South Korea, European Union, China, Singapore, Indonesia, Malaysia and Vietnam. To facilitate its international trading operations, it has also set up offices in Singapore and Mauritius. The company’s integrated manufacturing practices have a definite edge over the unorganized sector. From television commercials and health camps to product promotions, GRSL has created a strong brand recall and loyalty among the Indian households. Jammu & Kashmir Bank comprises a part of GRSL’s seven-bank consortium. The oil company’s business with the Bank is immensely versatile: from non-fund based to fund based businesses. The Bank grants buyer credit to the company on 100% margin. The Bank’s excellent treasury operations have significantly helped the operations of GRSL. The company’s management is of the strong view that the Bank’s quick decisionmaking skills and financial expertise have helped its business to grow tremendously. The firm challenges Rajput and Thakkar faced in their initial years of setting up their business have been overcome. However, their vision continues to be as powerful as when they first nurtured it – that of enabling their products reach every kitchen in India and that of the world.
Corporate Overview 01
Board and Management Reports 50
Financial Statements 62
Governance 138
Strengthening growth endeavours Way back in 1996, G.P. Agrawal, Prahalad Agrawal and Vijit Agrawal founded Vandana Global Ltd, head quartered in Raipur, Chhattisgarh. The Company is engaged in the manufacture of sponge iron, billets, ingots and ferro alloys. It also generates energy and is also involved in mining activities. To be able to fund its expansion plans and move ahead in the market, the Company needed consistent financial support.
Chhattisgarh is very rich in mining and following its separation from Madhya Pradesh, it has grown at a much faster pace. The Company has witnessed impressive business growth since inception. The Bank has been forthcoming in supporting such entrepreneurial ventures as a part of its credit philosophy. It endeavors to capture niche-lending opportunities on a pan-India basis to build volumes and improve margins. So, what prompted the promoters to include J&K Bank into their consortium?
“Considering the operational brilliance and speedy disposal of proposals, J&K Bank is undoubtedly the leading bank for us. Its products and services are on par with other domestic or international banks. We have a long-lasting relationship with J&K Bank. Our company has been banking with them since 2004 and we are fully satisfied with their services. The best part was we found them quite receptive to our business priorities and concerns, and their support has been very encouraging.” Vandana Global has drawn up extensive future strategies. “In the next 10 years, we are planning both forward and backward integration by acquiring mines, doubling the capacity of our existing ferro alloys plant and setting up a pellet plant. Simultaneously, we are looking for overseas acquisition of mining assets and related businesses.” The Company has shifted its registered office to Mumbai to be able to manage the overseas business activities and also formed wholly-owned subsidiaries in various countries. J&K Bank is participating in the growth endeavour of Vandana Global and is also sharing the aspirations of an enterprise on the move.
29
annual report 2011-12
DIRECTORS’ REPORT
1. 1.1. Your Board of Directors have pleasure in
presenting the 74th Annual Report of your Bank, together with the audited Balance Sheet, Profit and Loss Account and the report on business and operations for the year ended 31st March, 2012.
1.2. The Bank has delivered a strong performance in 2011-12. The Bank’s strategy of consolidation, re- engineering, re-pricing and re-organisation has resulted in productive and efficient growth, robust balance sheet, topnotch asset book and substantial provisions. Financial highlights for the year under review are presented below:
2. PERFORMANCE AT A GLANCE
50
2.1. The aggregate business of the Bank crossed yet another psychological mark and stood at ` 86,424.32 Crores at the end of the FY 201112. The total business of the Bank increased by ` 15,554.75 Crores from the previous year’s figure of ` 70,869.57 Crores, registering a growth of 22%.
2.2. The total deposits of the Bank have grown by ` 8,670.97 Crores from ` 44,675.93 Crores as on 31st March, 2011 to ` 53,346.90 Crores as on 31st March, 2012, registering growth of 19.41%. CASA deposits of the Bank at ` 21,715 Crores constituted 40.71% of total deposits of the bank.
2.3. Cost of deposits for current FY stood at 5.92% compared to 5.05% for FY 2010-11.
2.4. The Bank continued its prudent approach in expanding quality credit assets in line with its policy on Credit Risk Management. The net advances of the Bank increased by ` 6,883.78 Crores from ` 26,193.64 Crores as on 31st March, 2011 to ` 33,077.42 Crores as on 31st March, 2012, a growth of 26.28%.
2.5. Yield on advances for the current FY improved to 11.45% compared to 10.68% for FY 2010-11.
2.6. Priority sector advances stood at ` 10,294.38 Crores as on 31st March, 2012.
3. The Bank’s performance in the recovery of NPA’s
during the year continued to be good. The Bank effected cumulative cash recovery; up-gradation of NPA’s and technical write-off of ` 316.91 Crores compared to ` 232.63 Crores in the previous year.
4. Investment portfolio of the bank increased by
` 1,928.55 Crores from ` 19,695.77 Crores as on 31st March, 2011 to ` 21,624.32 Crores as on 31st March, 2012.
5. Insurance Business
5.1. The Bank earned an income of ` 29.56 Crores from the Insurance Business. In life insurance, the Bank mobilised business of ` 100.39 Crores and in non-life segment, business of ` 77.53 Crores was mobilised during the year.
6. Income Analysis
6.1. Interest income of the Bank recorded a growth of ` 1,122.45 Crores and increased from ` 3,713.13 Crores in the year 2010-11 to ` 4,835.58 Crores in the year 2011-12. Interest expenses increased from ` 2,169.47 Crores to ` 2,997.22 Crores during the year. The Net Interest Income increased from ` 1,543.66 Crores to ` 1,838.36 Crores on YoY basis.
6.2. The Net Income from operations [Interest Spread plus Non-interest Income] has increased to ` 2,172.48 Crores in the FY 2011-12 from ` 1,908.42 Crores in the FY 2010-11, growing by 13.84%.
6.3. The Operating Expenses have shown an increase of ` 43.22 Crores during the
Corporate Overview 01
Board and Management Reports 50
FY 2011-12 and stood at ` 802.15 Crores as compared to ` 758.93 Crores in 2010-11.
6.4. The Cost to Income ratio (Operating Expenses to Net Operating Income) has come down from 39.77 % in the FY 2010-11 to 36.92% in the FY 2011-12.
7.1. The Gross Profit for the FY 2011-12 stood at ` 1,370.33 Crores as compared to ` 1,149.49 Crores in the FY 2010-11 registering a growth of 19.21%.
8.1. The Provision for Loan Losses, Provision on Standard Assets, Taxation and others aggregated to ` 567.08 Crores in the FY 2011-12 as compared to ` 534.29 Crores in the FY 2010-11.
9.1. The Bank registered highest ever Net Profit of ` 803.25 Crores for the FY 2011-12 compared to ` 615.20 Crores for the FY 2010-11, registering an impressive growth of 30.57%.
9.2. The Board of Directors has recommended record dividend of 335% for the FY 2011-12. 9.3. In terms of extant guidelines, the Bank will pay the dividend distribution tax for the FY 2011-12. Accordingly the total outflow on account of dividend for the year 2011-12 will be ` 188.76 Crores including the dividend distribution tax.
10. Net Worth and CRAR
10.1. The Net Worth of the Bank increased to ` 4,093.18 Crores on 31st March, 2012 from ` 3,478.68 Crores on 31st March, 2011.
10.2. The Capital to Risk Adjusted Assets Ratio [CRAR] under BASEL-I stood at 12.53% as on 31st March, 2012 as against 13.30% as on 31st March, 2011 which is much above the norm of 9% stipulated by the Reserve Bank of India. The Tier I component of CRAR is 10.43% as on 31st March, 2012 compared to 10.99% as on 31st March, 2011.
10.3. The Bank has implemented new capital adequacy framework w.e.f. 31st March, 2009. Under new norms, bank’s CRAR (BASEL-II) works out to 13.36% which is higher than the CRAR as computed under BASEL- I norms. The advantage has stemmed mainly from
highest ever Net Profit of ` 803.25 Crores for the FY 2011-12 compared to ` 615.20 Crores for the FY 2010-11, registering an impressive growth of 30.57%.
11.1. During the FY 2011-12, 55 new branches were established, thereby taking the number of branches to 603 as on 31-03-2012, spread over 20 states and one union territory. The area-wise breakup of the branch network (excluding extension counters/ mobile branches and service branches) is as under: Area
9. Net Profit and Dividend
10.4. The Return on Average Net Worth, Earnings per Share and Book Value per Share for the FY 2011-12 stood at 21.22%, ` 165.69 and ` 844.34, against 18.96%, ` 126.90 and ` 717.58 respectively for the previous year.
The Bank registered
11. Branch Network
8. Provisions
Governance 138
higher rated Investment / Credit portfolio. The Tier I component of CRAR under new norms is 11.12% as against 10.43% under BASEL -I.
7. Gross Profit
Financial Statements 62
Business Units
Metro
039
Urban
168
Semi-Urban
123
Rural
273
Total
603
12. IT initiatives during FY 2011-12
12.1. Technology has played a pivotal role in the growth of the Bank. T&ISD department has always been in the forefront in delivering solutions in line with the changing business needs of the organisation. As a matter of policy the department has always provided industry best solutions so as to align the technology with business goals. The details of various technology initiatives taken during the FY 2011-12 are enumerated below:
10 branches were computerised during the year taking the total count of computerised business units as on 31st March, 2012 to 634 out of a total business unit count of 640 which includes 603 business units & 37 Extension Counters.
90 new SOLs were opened on Core Banking Platform during 2011-12 taking the total count of SOLS on CBS as on 31st March, 2012 to 671.
177 ATMs were procured, out of which 147 were commissioned during FY 2011-12 taking the aggregate number of commissioned ATMs to 508 as on 31st March, 2012.
51
annual report 2011-12
B ALANCE SHEET
as at 31st March, 2012
Schedule
As at 31.03.2012 ` ‘000’ Omitted
As at 31.03.2011 ` ‘000’ Omitted
1 2 3 4 5
484,922 40,446,869 533,469,016 12,409,572 15,881,824 602,692,203
484,922 34,301,946 446,759,350 11,046,502 12,488,814 505,081,534
6 7 8 9 10
27,836,539 16,702,140 216,243,188 330,774,215 4,202,704
29,749,638 5,738,477 196,957,679 261,936,350 3,937,702
Other Assets 11 6,933,417 TOTAL 602,692,203 Contingent Liabilities 12 150,660,768 Bills for Collection 9,203,354 Principal Accounting Policies 17 Notes on Accounts 18 The Schedules Referred to above and the attached Cash Flow Statement form an integral part of the Balance Sheet
6,761,688 505,081,534 255,176,641 14,616,755
CAPITAL AND LIABILITIES Capital Reserves and Surplus Deposits Borrowings Other Liabilities and Provisions TOTAL ASSETS Cash and Balance with Reserve Bank of India Balance with Banks & Money at Call & Short Notice Investments Advances Fixed Assets
Mushtaq Ahmad Chairman & CEO
Hari Narayan Iyer Director
M. I. Shahdad Director
Vikrant Kuthiala Director
Prof. Nisar Ali Director
Abdul Majid Matto Director
R. K. Gupta Director
Nihal Garware Director
G. M. Sahibzada Executive President
S. K. Bhat President
Abdul Majid Bhat Company Secretary
Place: Srinagar Dated : 12th May, 2012 In terms of our report of even date annexed For O P Garg & Co. For K B Sharma & Co. Chartered Accountants Chartered Accountants FRN: 01194N FRN: 02318N
For Verma Associates Chartered Accountant FRN: 02717N
For P C Bindal & Co. Chartered Accountants FRN: 03824N
For K K Goel & Associates Chartered Accountants FRN: 05299N
CA. Manish Kumar Gupta Partner (M. No. 097191)
CA. Madan Verma Partner (M. No. 081631)
CA. P. C. Bindal Partner (M. No. 082683)
CA. K. K. Goel Partner (M. No. 015002)
Place: Srinagar Dated : 12th May, 2012
64
CA. Abhay Kumar Partner (M. No. 500681)
Corporate Overview 01
Board and Management Reports 50
Governance 138
Financial Statements 62
PROFIT AND LOSS ACCOUNT for the year ended 31st March, 2012
Schedule I
Year Ended 31.03.2012 ` ‘000’ Omitted
INCOME Interest Earned 13 48,355,773 Other Income 14 3,341,232 TOTAL 51,697,005 II EXPENDITURE Interest Expended 15 29,972,224 Operating Expenses 16 8,021,519 Provisions and Contingencies 5,670,757 TOTAL 43,664,500 III NET PROFIT 8,032,505 TOTAL 51,697,005 IV APPROPRIATIONS Transferred To i) Statutory Reserve 2,008,126 ii) Capital Reserve iii) Revenue and Other Reserve 4,136,797 iv) Proposed Dividend 1,624,006 v) Tax on Dividend 263,576 TOTAL 8,032,505 Principal Accounting Policies 17 Notes on Accounts 18 Earnings per Share (Basic/Diluted) 165.69 The Schedules Referred to above form an integral part of the Profit & Loss Account Mushtaq Ahmad Chairman & CEO
Hari Narayan Iyer Director
M. I. Shahdad Director
Vikrant Kuthiala Director
Prof. Nisar Ali Director
Abdul Majid Matto Director
R. K. Gupta Director
Nihal Garware Director
G. M. Sahibzada Executive President
S. K. Bhat President
Abdul Majid Bhat Company Secretary
Year Ended 31.03.2011 ` ‘000’ Omitted 37,131,322 3,647,562 40,778,884 21,694,685 7,589,318 5,342,862 34,626,865 6,152,019 40,778,884 1,538,005 3,144,235 1,260,423 209,356 6,152,019 126.90
Place: Srinagar Dated : 12th May, 2012 In terms of our report of even date annexed For O P Garg & Co. For K B Sharma & Co. Chartered Accountants Chartered Accountants FRN: 01194N FRN: 02318N
For Verma Associates Chartered Accountant FRN: 02717N
For P C Bindal & Co. Chartered Accountants FRN: 03824N
For K K Goel & Associates Chartered Accountants FRN: 05299N
CA. Manish Kumar Gupta Partner (M. No. 097191)
CA. Madan Verma Partner (M. No. 081631)
CA. P. C. Bindal Partner (M. No. 082683)
CA. K. K. Goel Partner (M. No. 015002)
CA. Abhay Kumar Partner (M. No. 500681)
Place: Srinagar Dated : 12th May, 2012
65
annual report 2011-12
B asel-II- Pillar-3 disclosures as on 31.03.2012
Table DF-1: Scope of application 1.
Qualitative disclosure 1.1. Name of the bank in the group to which the Framework applies.
The Jammu and Kashmir Bank Ltd.
1.2 . An outline of differences in the basis of consolidation for accounting and regulatory purposes, with a brief description of the entities within the group.
The revised capital adequacy norms (in conformity with Basel-II - Pillar 3 requirements) apply to J&K Bank at Solo level. The bank has one fully owned subsidiary i.e. JKB Financial Services Ltd. The bank has also sponsored one regional rural bank namely, J&K Grameen Bank. Consolidated financial statements of the group ( parent and fully owned subsidiary) have been prepared on the basis of audited financial statements of J&K Bank and its fully owned subsidiary , combined on line by line basis by adding together like items of assets, liabilities, income and expenses after eliminating intra group transactions.
1.3.
That are fully consolidated
1.4. 1.5.
That are pro-rata consolidated
1.6.
That are given a deduction treatment That are neither consolidated nor deducted (e.g. where the investment is risk weighted).
Name
Activity
Holding ( % )
JKB Financial Services Ltd Nil
Marketing of Bank’s Financial Products NA
100%
J&K Grameen Bank
Rural Banking
35%
MetLife India
Insurance
11.18%
NA
2. Quantitative Disclosures 2.1.
The aggregate amount of capital deficiencies in all subsidiaries not included in the consolidation i.e. that are deducted and the name(s) of such subsidiaries. Entire investment of ` 5.00 Crores in JKB Financial Services and ` 22.10 Crores in J&K Grameen Bank is deducted from Capital of the bank for capital adequacy calculation.
138
Corporate Overview 01
Board and Management Reports 50
Financial Statements 62
Governance 138
2.2. The aggregate amount (e.g. current book value) of the bank’s total interests in the insurance entities,
which are risk weighted as well as their name, their country of incorporation or Residence, the proportion of ownership interest and if different, the proportion or voting power in these entities. In addition, indicate the quantitative impact on regulatory capital of using this method versus using deduction. a)
Name
b)
Amount of Investment
c)
Country of Incorporation/ Residence
d)
Proportion of ownership interest
MetLife India Co. ltd Brigade Seshamahal 5, Vani Vilas Road, Basavangudi, Bangalore - 560004 ` 220.27 Crores India 11.18%
e)
Proportion of Voting Power
f)
Quantitative impact on regulatory capital of using this method versus using deduction.
11.18% CRAR under risk weighted method is 13.36% as against 12.83% under deduction method.
Table DF - 2 : Capital Structure 1. Qualitative disclosure 1.1.
Summary information on the terms and conditions of the main features of all capital instruments, especially in the case of capital instrument eligible for inclusion of tier 1 or in the upper tier 2.
The Bank has raised a subordinate debt of ` 600 Crores which forms part of lower Tier 2 Capital of the Bank.
2. Quantitative Disclosures 2.1.
The amount of tire-I capital with separate disclosure of: Paid up capital Statutory and other disclosed free reserves Capital Reserves Other capital instruments Amount deducted from tier 1 capital, including goodwill and investment. Total Tier I Eligible Capital (net of deductions)
2.2.
The total amount of tier 2 capital (net of deductions from tier 2 capital) :
2.3.
Debt capital instruments eligible for inclusion in upper tier 2 capital
2.4.
Amount in ` Crores 48.49 3,981.56 63.13 ------37.16 4,056.02 816.65
Total Amount outstanding
Nil
Of which amount raised during the current year
Nil
Amount eligible to be reckoned as capital funds
Nil
Subordinated debt eligible for inclusion in lower tier 2 capital Total amount outstanding Of which the amount raised during the current year Amount eligible to be reckoned as capital funds
2.5.
Other deductions from capital if any is
2.6.
Total eligible capital
600.00 Nil 600.00 Nil 4,872.67
139
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