Institute of Chartered Financial Analysts of India (ICFAI) University 2006 Certification Finance Management of Financial Institutions - II - Question Paper

(i) Provision for income tax for the year is arrived at after due consideration of the different judicial decisions on certain disputed problems.

(ii) Disputed income tax/interest tax paid amounting to Rs.528.33 crore, (net of provision) has been included in "Other Assets" (Schedule 11), (Previous year Rs.378.48 crore). The provision for taxation is not considered necessary in respect of the above disputed demands based on different judicial decisions on such disputed problems. Management does not envisage any liability in respect of the disputed problems.

5. SUBORDINATED DEBT RAISED AS TIER II CAPITAL

During the year, the Bank has raised subordinated Debt to the tune of Rs.450.00 crore by problem of Unsecured Redeemable Bonds under Tier II Capital at a coupon rate of 7.15% and the amount is reflected under "Other Liabilities and Provisions" in Schedule five of the Balance Sheet.

6. PROVISION ON STANDARD ADVANCES

Provision made on standard advances amounting to Rs. 98.00 crore is shown under "Other Liabilities" in Schedule five of Balance Sheet as per RBI Guidelines. (Previous year - Rs. 72.25 crore)

7. VOLUNTARY RETIREMENT SCHEME

Total VRS liability of the Bank was Rs.485.33 crore, out of which the Bank had written off Rs.368.43 crore upto 31st March 2004 and further an amount of Rs.87.17 crore during the year. The balance of Rs.29.73 crore is included in Schedule 11 (Other Assets - Others).

8. ADDITIONAL DiscLOSURES IN TERMS OF THE RESERVE BANK OF INDIA GUIDELINES

(Rs. in Crores)


As on

31.3.2005
As on

31.3.2004

i. Percentage of shareholding of the Government of India
60.85%
60.85%

ii. Details of Provisions and Contingencies in Profit &

Loss Account :



- Provisions made towards NPAs

- Provision for Depreciation in Investments

- Provision for Standard Advances

- Provision for Income Tax for the year (including Deferred Tax)

- Provision for shifting loss

- Provision for wage arrears

- Others
216.46

22.59

25.75

(-)107.47



545.47

120.00

31.31
643.61

(-)25.45

10.00

107.98

Earning:   Approval pending.