Page 109 - Demo

STATUTORY REPORTS
In compliance to the above directions, the Bank has put in place a Board approved policy for providing moratorium on loan repayments for its customers. The Bank has extended moratorium under all segments, deferring the repayments for ~99% of loan accounts. The communication regarding the moratorium was disclosed on the Bank’s website and also communicated to customers through SMS and verbal communication. The Bank has temporarily discontinued collection of repayments through center meetings. All microfinance customers have opted for moratorium and the following table provides details of moratorium availed by other verticals:
Additional Provision on Standard Overdue Cases
` in Lakhs
4,580 650
Particulars
bank’s Provisions
rbi req. (Min 5% in Mar’20)
550
rbi req. (Min 10% by June’20)
Additional 2,420 - Provision on NPA
Cases
16,500
-
550
` in Lakhs
10,497 48% 68,300
13,116 52% 97,900
2,668 44% 4,150
1,480 81% 1,020
10 31% 11,662
Total Additional Provision
Total Cumulative Provisions
Total Portfolio % Coverage on Total Portfolio
7,000 650
23,000 17,100
1,415,330 1,415,330 1.64% 1.21%
1,415,330
1.17%
business vertical
borrowers
% to total borrowers
amount
MSE
Housing
Personal Loans
Vehicle Loans Institutional Lending
The provision particulars at the quarter end are provided below:
asset class
gross advances
Provision
% Provision
The Bank has implemented tools for real time monitoring of these borrowers, the details of which are given under section 10 of this disclosure.
8.1.3. Provisioning norms of the bank
The Board reviews the provisioning norms of the Bank at regular intervals to determine if any enhanced provisioning is required based on credit performance. Despite a history of low Portfolio At Risk (PAR) and delinquencies, the microfinance portfolio of the Bank is unsecured and events (such as demonetization and the current COVID-19 pandemic) have impacted/are expected to impact the portfolio quality at Bank wide level. Taking cognizance of this and especially since the microfinance portfolio comprised 77% of the loan book as at March 31, 2020, the Bank has always deemed it appropriate to follow a conservative approach in its provisioning policy.
Further, with the onset of COVID-19 pandemic, RBI has directed all banks to maintain 10% provision on standard overdue cases (1-89 DPD) split between two quarters. However, the Bank has deemed it appropriate to maintain over and above the RBI mandated norms keeping in mind the inherent risk in the portfolio. The Bank has also increased its provision rate in NPA category to further strengthen the Provision Coverage Ratio (PCR %) The details of additional provisions made were as follows:
Standard 1,401,615
Sub-standard 12,491
Doubtful 1,056
Loss 166.55
total 1,415,330
Presently, the Bank provides 0.50% portfolio against the RBI mandated
` in Lakhs
12,033 0.86%
9,793 78.40%
1,006 95.22%
166.55 100.00%
22,998 --
on its standard asset figure of 0.40%.
With the above enhancements, the Provision Coverage Ratio (pCR %) had increased to 80% (89% in microfinance) as at March 31, 2020 as against 72% (76% in microfinance) as at March 31, 2019. The vertical wise distribution of PCR % is provided as below:
region
gnPa
Provision
Pcr%
Group loan
(Incl. rural banking)
Individual Loans (Incl. rural banking)
MSE
` in Lakhs
8,668 7,697 89%
955 852 89%
2,812 1,765 63%
Particulars
Provision on Standard Overdue Cases (%)
` in Lakhs
38% 10%
Housing 1,164 558 48%
Personal Loan 104 83 80%
Staffloan 11 9 82%
grand total 13,714 10,965 80%
8.1.3.1. Provisions as per expected credit loss (ecl) under ind-as
During FY 2018-19, RBI had issued a notification13 that the legislative amendments recommended by the RBI were under consideration of the Government of India. Accordingly, it has been decided to defer the implementation of Ind AS till further notice.
However, this deferral was applicable only to Scheduled Commercial Banks (SCBs).
bank’s Provisions
rbi req. (Min 5% in Mar’20)
rbi req. (Min 10% by June’20)
5%
13Refer RBI notification on Deferral of Implementation of Indian Accounting Standards (Ind AS) issued vide RBI/2018-2019/146 DBR.Bp.BC. No.29/21.07.001/2018-19 dated March 22, 2019.
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