NOTES EDUC

NOTES EDUC

The consolidated financial results for the quarter/year ended 31st March, 2014 have been
arrived at on the basis of the same accounting policies as those followed in the preceding
financial year ended on 31st March, 2013 except in respect of:
a. provision for Non-Performing Advances(N Pas) classified as Sub-standard (Secured) as
given in note 4 below; and
b. provision for net depreciation in investments portfolio of the Bank as per Note 11 below.
2. The above consolidated financial results have been reviewed by the Audit Committee of
Board at their meeting held on 14th May 2014 and approved by the Board of Directors at
their meeting held on 15th May,2014.The same have been subjected to Audit by the Statutory
Central Auditors of the Bank, in line with the guidelines issued by Reserve Bank of India
and as per the requirement of listing agreement with stock exchanges.
3. The financial results for the period ended 31st March, 2014 have been arrived at after
considering extant guidelines of Reserve Bank of India (RBI) on Prudential norms for
Income Recognition, Asset Classification and Provisioning and providing for other usual
and necessary provisions including employees benefits.
4. During the quarter, the parent Bank has changed its accounting policy of provisioning in
respect of NP As classified as Sub-Standard (Secured) from 20%(accelerated provision) to
15%(minimum provision) which has resulted into write back of provision for N Pas of
`248.71 Crores provided till 31st March 2013 and write back of provision of `56.06 Crores
provided during the 9 months’ period ended 31st December, 2013. Had the earlier
accounting policy been followed, the provision for NP As for the quarter/year would have
been higher by `325.38 Crores with consequential decrease in Net profit for the year/quarter
(net of tax) by ` 214.78 Crores.
5. Pursuant to Reserve Bank of India circular No. BOD No. BP.95/21.04.048/2013-14 dated
7th February 2014, the parent Bank has mutilated ` 179.49 Crores of floating provision, being
33% of floating provision of ` 543.94 Crores held on 31st March 2013 towards specific
provisions for NP As.
6. The Provision Coverage Ratio of the parent Bank as at 31st March, 2014 is 58.68%. (60.92% as
at 31st March 2013)
7. During the year, the parent Bank has written back Provision for taxation pertaining to