ICICI Bank 2015 Annual Report Download - page 152

150 Annual Report 2014-2015
Schedules
forming part of the Accounts (Contd.)
Financial Statements of ICICI Bank Limited
19. Provision on standard assets
Standard assets provision amounting to ` 3,847.9 million was made during the year ended March 31, 2015
(March 31, 2014: ` 2,487.7 million) as per applicable RBI guidelines.
The provision on standard assets (including incremental provision on unhedged foreign currency exposure (UFCE))
held by the Bank at March 31, 2015 was ` 23,336.0 million (March 31, 2014: ` 19,317.6 million).
The Bank assesses the unhedged foreign currency exposures of the borrowers through its credit appraisal and internal
ratings process. The Bank also undertakes reviews of such exposures through thematic reviews by Risk Committee
based on market developments evaluating the impact of exchange rate fluctuations on the Bank’s portfolio, portfolio
specific reviews by the RMG and scenario-based stress testing approach as detailed in the Internal Capital Adequacy
Assessment Process (ICAAP). In addition, a periodic review of the forex exposures of the borrowers’ having significant
external commercial borrowings is conducted by RMG.
RBI, through its circular dated January 15, 2014 had advised banks to create incremental provision on standard loans
and advances to entities with UFCE. Incremental provision of ` 1,750.0 million on standard loans and advances due to
UFCE was made during the year.
The Bank held incremental capital of ` 4,050.0 million at March 31, 2015 on UFCE.
20. Provision Coverage Ratio
The provision coverage ratio of the Bank at March 31, 2015 computed as per the extant RBI guidelines is 58.6%
(March 31, 2014: 68.6%).
21. Securitisation
The Bank sells loans through securitisation and direct assignment. The following tables set forth, for the periods
indicated, the information on securitisation and direct assignment activity of the Bank as an originator till May 7, 2012.
` in million, except number of loans securitised
Year ended
March 31, 2015
Year ended
March 31, 2014
Total number of loan assets securitised ––
Total book value of loan assets securitised ––
Sale consideration received for the securitised assets ––
Net gain/(loss) on account of securitisation1148.0 177.9
1. Includes gain/(loss) on deal closures, gain amortised during the year and expenses relating to utilisation of credit enhancement.
` in million
Year ended
March 31, 2015
Year ended
March 31, 2014
Outstanding credit enhancement (funded) 4,531.4 4,970.4
Outstanding liquidity facility 0.3 –
Net outstanding servicing asset/(liability) (32.9) (84.5)
Outstanding subordinate contributions 1,513.4 1,624.1
The outstanding credit enhancement in the form of guarantees amounted to Nil at March 31, 2015 (March 31,
2014: Nil) and outstanding liquidity facility in the form of guarantees amounted to ` 265.5 million at March 31, 2015
(March 31, 2014: ` 261.0 million).
Outstanding credit enhancement in the form of guarantees for third party originated securitisation transactions
amounted to ` 5,530.3 million at March 31, 2015 (March 31, 2014: ` 8,578.8 million) and outstanding liquidity facility
for third party originated securitisation transactions amounted to Nil at March 31, 2015 (March 31, 2014: Nil).