financial statements american express banking corp. · 2020-01-26 · khimji kunverji & co llp...

1

Financial Statements AMERICAN EXPRESS BANKING CORP. (INDIA BRANCH) Year ended March 31, 2019

AMERICAN EXPRESS BANKING CORP.INDIA BRANCH

(INCORPORATED IN THE UNITED STATES OF AMERICA)

1

Independent Auditor’s Report

ToThe Chief Executive Officer American Express Banking Corp.- India Branch

Report on the Audit of the Financial Statements

Opinion

1. Wehave audited the accompanyingfinancial statements ofAmericanExpressBankingCorp.- IndiaBranch (‘theBank’),whichcomprisetheBalanceSheetasatMarch31,2019andtheProfitandLossAccountandtheCashFlowstatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidfinancialstatementstogetherwithnotesthereongivefullinformationrequiredbytheBankingRegulationAct,1949aswellastheCompaniesAct,2013(‘theAct’),inthemannersorequiredforbankingcompaniesandgivetrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:

a. inthecaseoftheBalanceSheet,ofthestateofaffairsoftheBankasatMarch31,2019; b. inthecaseoftheProfitandLossAccount,oftheprofitoftheBankfortheyearendedonthatdate; c. inthecaseoftheCashFlowStatement,ofthecashflowsoftheBankfortheyearendedonthatdate.

Basis for Opinion

2. Weconductedouraudit inaccordancewith theStandardsonAuditing(‘SAs’)specifiedundersection143(10)of theAct.Ourresponsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the FinancialStatementssectionofourreport.WeareindependentoftheBankinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountants of India (‘ICAI’) togetherwith the ethical requirements that are relevant to our audit of the financialstatementsunder theprovisionsof theActandtheRules thereunder;andwehavefulfilledourotherethicalresponsibilities inaccordancewiththeserequirementsandtheCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Information Other than the Financial Statements and Auditor’s Report Thereon

3. TheBank’smanagementisresponsiblefortheotherinformation.TheotherinformationcomprisestheinformationincludedintheBank’sannual report,butdoesnot include thefinancial statements andourauditors’ report thereon.Theother information isexpectedtobemadeavailabletousafterthedateofthisauditor’sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationwhenitbecomesavailableand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.

WhenwereadtheotherInformationandifweconcludethatthereisamaterialmisstatementtherein,wearerequiredtocommunicatethemattertothosechargeswithgovernanceasrequiredunderSA720‘TheAuditor’sresponsibilitiesRelatingtootherInformation’.

Responsibility of Management for Financial Statements

4. TheBank’smanagementisresponsibleforthemattersstatedinsection134(5)oftheActwithrespecttothepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheBankinaccordance with the accounting principles generally accepted in India, including the Accounting Standards specified underprescribedSection133oftheAct,provisionofSection29oftheBankingRegulationAct,1949andthecircularsandguidelinesissuedbyReserveBankofIndia(‘RBI’)fromtimetotime.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheBankandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;design,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingtheBank’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheBankortoceaseoperations,orhasnorealisticalternativebuttodoso.

TheBank’smanagementisalsoresponsibleforoverseeingtheBank’sfinancialreportingprocess.



2

Auditor’s Responsibilities for the Audit of the Financial Statements

5. Our objectives are to obtain reasonable assurance aboutwhether the financial statements, as awhole are free frommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahigh level of assurance, but is not a guarantee that an audit conducted in accordancewithSAswill always detect amaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterial if, individuallyor in theaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.OurauditprocessinaccordancewiththeSAsisnarratedindetailsinAnnexure1tothisreport.

Report on Other Legal and Regulatory Requirements

6. TheBalanceSheetandProfitandLossAccountandtheCashFlowStatementhavebeendrawnupinaccordancewiththeprovisionsofSection29oftheBankingRegulationAct,1949readwithSection133oftheActreadwithRule7oftheCompanies(Accounts)Rules,2014.

7. AsrequiredbySection30(3)oftheBankingRegulationAct,1949,wereportthat: a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and beliefwere

necessaryforthepurposesofourauditandhavefoundthemtobesatisfactory; b. thetransactionsoftheBank,whichhavecometoournoticehavebeenwithinthepowersoftheBank;and c. Sincethebankishavingonlyonebranch,thequestiononreportingthenumberofbranchesauditedbyusandthemannerof

auditthereondoesnotarise.

8. AsrequiredbySection143(3)oftheAct,wereportthat: a. wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessary

forthepurposesofouraudit; b. inouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheBanksofarasitappearsfromourexamination

ofthosebooks;exceptthatthebackupofthebooksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasnotbeenmaintainedonserversphysicallylocatedinIndia,RefernoteIofSchedule18ofthefinancialstatementswhereinithasbeenstatedthatthebackupofthebooksofaccountsandotherpapermaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideIndia;

c. theBalanceSheet,theProfitandLossAccountandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount;

d. inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014insofarastheyapplytotheBank;

e. reportingrequirementpursuanttoprovisionofSection164(2)oftheActisnotapplicableconsideringtheBankisabranchofAmericanExpressBankingCorpwhichisincorporatedinUnitedStatesofAmericawithlimitedliability;

f. With respect to the adequacyof the internalfinancial controlswith reference tofinancial statements of theBank and theoperatingeffectivenessofsuchcontrols,refertoourseparateReportinAnnexure2tothisreport;

g. Reportingrequirementpursuanttosection197oftheActrelatedtomanagerialremunerationisnotapplicableconsideringtheBankisabranchofAmericanExpressBankingCorpwhichisincorporatedinUnitedStatesofAmericawithlimitedliability;

h. WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wereportasunder:

i theBankhasdisclosedtheimpact,ifany,ofpendinglitigationsonitsfinancialpositionsinitsfinancialstatementsasatMarch31,2019;ReferSchedule12andNoteIV.11ofSchedule18tothefinancialstatements;

ii the Bank hasmade adequate provision, as required under the applicable law or accounting standards, for materialforeseeablelosses,ifany,onlong-termcontractsincludingderivativecontracts-RefernoteIV.1(g)ofschedule18tothefinancialstatements;

iii theBankiscurrentlynotliabletotransferanyamounttotheInvestorEducationandProtectionFund; iv thedisclosurerequirementsonholdingsaswellasdealinginspecifiedbanknotesduringtheperiodfromNovember08,

2016toDecember30,2016asenvisagedinNotificationG.S.R308(E)datedMarch30,2017isnotapplicabletotheBank.

ForKhimji Kunverji & Co LLP(formerlyKhimjiKunverji&Co-FRN105146W)CharteredAccountants

Mumbai Gautam V ShahJune25,2019 Partner(F-117348)



3

Annexure 1 to the Independent Auditors’ Report (referred to in para 5 titled “Auditor’s Responsibilities for the Audit of the Financial Statements”) AspartofourauditinaccordancewithSAsweexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,todesignandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in thecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheBankhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.

• Concludeon the appropriateness ofmanagement’s use of the going concernbasis of accounting and, basedon the audit evidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheBank’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheBanktoceasetocontinueasagoingconcern.

• Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

• Communicatewith thosechargedwithgovernance regarding, amongothermatters, theplanned scopeand timingof theaudit andsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

Annexure 2 to the Independent Auditors’ Report [referred to in paragraph 8(f) under ‘Report on Other Legal and Regulatory Requirements’ in the Independent Auditor’s Report] Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofAmerican Express Banking Corp- India Branch(“theBank”)asatMarch31,2019inconjunctionwithourauditofthefinancialstatementsoftheBankfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheBank’smanagement is responsible for establishing andmaintaining internalfinancial controls basedon the internal control overfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(“ICAI”).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetotheBank’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheAct.

Auditors’ Responsibility

OurresponsibilityistoexpressanopinionontheBank’sinternalfinancialcontrolswithreferencetofinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheAct,totheextentapplicabletoanauditofinternalfinancialcontrols,bothissuedbytheICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls systemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaining



4

anunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheBank’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

ABank’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.ABank’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat: (a) pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsof

theassetsoftheBank; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in

accordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheBankarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsoftheBank;and

(c) providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionoftheBank’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,theBankhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemwithreferencetofinancialstatementsandsuchinternalfinancialcontrolswithreferencetofinancialstatementswereoperatingeffectivelyasatMarch31,2019,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheICAIexceptthatthebackupofthebooksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasnotbeenmaintainedonserversphysicallylocatedinIndia,RefernoteIofSchedule18ofthefinancialstatementswhereinithasbeenstatedthatthebackupofthebooksofaccountsandotherpapermaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideIndia.

ForKhimji Kunverji & Co LLP(formerlyKhimjiKunverji&Co-FRN105146W)CharteredAccountants

Mumbai Gautam V ShahJune25,2019 Partner(F-117348)



5

BALANCE SHEET AS AT MARCH 31, 2019 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2019

Year ended Year ended Schedule March 31, March 31, 2019 2018

INCOME InterestEarned 13 5,187,308 3,633,676OtherIncome 14 14,216,713 12,374,506

Total 19,404,021 16,008,182

EXPENDITURE InterestExpended 15 1,461,081 1,258,108OperatingExpenses 16 15,125,894 12,256,795ProvisionsandContingencies 17 2,534,761 1,681,175

Total 19,121,736 15,196,078

PROFIT / (LOSS)NetProfit/(Loss)fortheYear 282,285 812,104Profit/(Loss)broughtforward (2,964,037) (3,573,115)

(2,681,752) (2,761,011)

APPROPRIATIONS TransfertoStatutoryReserve 70,571 203,026TransfertoOtherReserves 174 –TransfertoGovernment/ proposeddividend – –Balancecarriedoverto BalanceSheet (2,752,497) (2,964,037)

(2,681,752) (2,761,011)SignificantAccountingPoliciesand NotestoFinancialStatements 18

TheschedulesreferredaboveformanintegralpartoftheProfitandLossAccount.

ThisistheProfitandLossAccountreferredtoinourReportof even date.

As at As at Schedule March 31, March 31, 2019 2018

CAPITAL AND LIABILITIESCapital 1 17,603,299 14,238,924ReservesandSurplus 2 473,155 402,410Deposits 3 21,355,294 16,105,638Borrowings 4 12,534,290 17,039,801OtherLiabilitiesand Provisions 5 33,530,707 29,465,835

Total 85,496,745 77,252,608

ASSETS CashandBalanceswith ReserveBankofIndia 6 1,895,697 1,425,697BalanceswithBanks andMoneyatCalland ShortNotice 7 1,485,030 1,463,608Investments 8 23,411,094 18,638,151Advances 9 53,398,404 50,981,045FixedAssets 10 316,448 280,102OtherAssets 11 4,990,072 4,464,005

Total 85,496,745 77,252,608

ContingentLiabilities 12 1,219,506 828,661BillsforCollection – –SignificantAccountingPoliciesand NotestoFinancialStatements 18

Theschedulesreferredaboveformanintegralpartofthe BalanceSheet.

ThisistheBalanceSheetreferredtoinourReportofevendate.

(Amount in INR ‘000) (Amount in INR. ‘000)

ForKhimji Kunverji & Co. LLP Forandonbehalfof(formerlyKhimjiKunverji&Co–FRN:105146W) American Express Banking Corp.- India Branch CharteredAccountants Gautam V. Shah Manoj Adlakha Partner ChiefExecutiveOfficerMembershipNo.F-117348 Vivek Sehgal FinancialController Place:Mumbai Place:Gurugram Date:June25,2019 Date:June20,2019



6

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2019 (AmountinINR.‘000)

Year ended Year ended March 31, 2019 March 31, 2018

Cash Flow from Operating activities Netprofit/(loss)beforetaxes 282,285 812,104 Adjustments for : Provisionforstandardadvances 42,411 162,598 Provisionfornon-performingadvances 450,790 187,030 Depreciationonassets 111,661 118,495 Net(profit)/lossonsaleofland,buildingandotherassets (1,125) (1,215) Operatingprofitbeforeworkingcapitalchanges 886,022 1,279,012 (Increase)/decreaseininvestments (4,772,943) (2,360,311) (Increase)/decreaseinadvances (2,868,149) (15,528,507) Increase/(decrease)indeposits 5,249,656 1,813,716 (Increase)/decreaseinotherassets (682,313) 1,674,852 Increase/(decrease)inotherliabilitiesandprovisions 4,022,461 3,650,288 (Taxespaid)/(Taxesdeductedatsource)/Refundreceived[net] (55,294) (68,566)A NetCashFlow(usedin)/fromoperatingactivities 1,779,440 (9,539,516) Cash Flow from Investing activities Fixedassetspurchased (154,853) (78,593) Proceedsfromsaleoffixedassets 7,971 4,491B NetCashFlow(usedin)/fromInvestingactivities (146,882) (74,102) Cash Flow from Financing activities Infusionofcapital 3,364,375 2,764,040 Proceeds/(Repayment)from/ofBorrowings (9,455,511) 7,396,030 ProceedsfromSubordinateDebt 4,950,000 –

C NetCashFlowfrom/(usedin)Financingactivities (1,141,136) 10,160,070

Net Increase/(Decrease) in cash and cash equivalents (A+B+C) 491,422 546,452

Cashandcashequivalentsatbeginningofyear 2,889,305 2,342,853 Cashandcashequivalentsatendofyear 3,380,727 2,889,305

Increase/(decrease)incashandcashequivalents 491,422 546,452

Notes to the Cash Flow Statement 1.Cashandcashequivalentsrepresentscashandbalanceswithbanks,balancewithRBIasdisclosedinSchedule6and7 2.TheaboveCashFlowStatementhasbeenpreparedunderthe“Indirectmethod”assetoutintheAccountingStandard (AS-3)onCashFlowStatementsissuedbytheInstituteofCharteredAccountantsofIndia. ThisistheCashFlowStatementreferredtoinourReportofevendate.

ForKhimji Kunverji & Co. LLP Forandonbehalfof (formerlyKhimjiKunverji&Co–FRN:105146W) American Express Banking Corp.- India Branch CharteredAccountants

Gautam V. Shah Manoj Adlakha Partner ChiefExecutiveOfficerMembershipNo.F-117348

Vivek Sehgal FinancialController

Place:Mumbai Place:Gurugram Date:June25,2019 Date:June20,2019



7

As at As at March 31, March 31, 2019 2018

SCHEDULE 4 – BORROWINGSI. BORROWINGSININDIA ReserveBankofIndia – – Otherbanks 3,034,290 12,489,801 –II. BORROWINGSOUTSIDEINDIA 9,500,000 4,550,000 Tier2DebtCapitalraisedinthe formofHeadOfficeBorrowings inForeignCurrency [ReferNoteIV.1.bofSchedule18] 12,534,290 17,039,801 Securedborrowings includedinIandIIabove Nil Nil

SCHEDULE 5 – OTHER LIABILITIES AND PROVISIONSI. Billspayable – –II. Inter-officeadjustments(net) – –III. Interestaccrued 272,152 189,486IV. Others(includingprovisions)* 33,258,555 29,276,349 33,530,707 29,465,835 *ReferNoteIV.6ofSchedule18

SCHEDULE 6 – CASH AND BALANCES WITH RESERVE BANK OF INDIAI. Cashinhand(includingforeign currencynotes) – –II. BalanceswithReserveBank ofIndia i) InCurrentAccount 1,895,697 1,425,697 ii) InOtherAccounts – – 1,895,697 1,425,697 SCHEDULE 7 – BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE I. InIndia Balanceswithbanks i) InCurrentAccounts 1,485,030 1,463,608 ii) InOtherDepositAccounts – – Moneyatcallandshortnotice i) Withbanks – – ii) Withotherinstitutions – – 1,485,030 1,463,608 II. OutsideIndia i) InCurrentAccounts – – ii) InOtherDepositAccounts – – iii) Moneyatcallandshortnotice – – – – 1,485,030 1,463,608

(Amount in INR. ‘000) (Amount in INR. ‘000)


SCHEDULE 1 – CAPITAL AmountofdepositkeptwithRBI undersection11(2)oftheBanking RegulationAct,1949aspercontra. 404,410 201,384

404,410 201,384

HEADOFFICEACCOUNT Openingbalance 14,238,924 11,474,884 Additionsduringtheyear 3,364,375 2,764,040

Closingbalance 17,603,299 14,238,924

SCHEDULE 2 – RESERVES AND SURPLUS I. STATUTORYRESERVES Openingbalance 402,410 199,384 Additionsduringtheyear 70,571 203,026 Closingbalance 472,981 402,410

II CAPITALRESERVES Openingbalance – – Additionsduringtheyear – – Closingbalance – –

III SHAREPREMIUM Openingbalance – – Additionsduringtheyear – – Closingbalance – –

IV REVENUEANDOTHER RESERVES Openingbalance – – Additionsduringtheyear 174 –

Closingbalance 174 –

V BalanceofProfitandLossAccount – –

473,155 402,410

SCHEDULE 3 – DEPOSITS A. InIndia I. DEMANDDEPOSITS Frombanks – – Fromothers – –

II. SAVINGSBANKDEPOSITS – –

III. TERMDEPOSITS Frombanks – – Fromothers(Institutional) 21,355,294 16,105,638

21,355,294 16,105,638 B. (i) DepositsofbranchesinIndia 21,355,294 16,105,638 (ii) Depositsofbranches outsideIndia – – 21,355,294 16,105,638

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2019



8




SCHEDULE 10 – FIXED ASSETS I. PREMISES Atcostason31Marchofthe precedingyear – – Additionsduringtheyear – – Deductionsduringtheyear – – – – Depreciationtodate – – TotalNetBookValueI – –

II. OTHERFIXEDASSETS (IncludingFurnitureandFixtures)* AtcostasonMarch31ofthe precedingyear 1,564,875 1,783,150 Additionsduringtheyear 154,853 78,593 Deductionsduringtheyear (96,955) (296,868)

1,622,773 1,564,875 Depreciationtodate (1,306,325) (1,284,773) TotalNetBookValueII 316,448 280,102

NetBookValueIandII 316,448 280,102 *ReferNoteIII.7ofSchedule18

SCHEDULE 11 – OTHER ASSETS I. Inter-officeadjustments(net) – –II. Interestaccrued 204,052 120,120III. Taxpaidinadvance/ taxdeductedatsource 180,168 124,874IV. StationeryandStamps – –V. Non-bankingassetsacquiredin satisfactionofclaims – –VI. Deferredtaxasset – –VII. Others(IncludingDebitBalance inProfitandLossAccount 4,605,852 4,219,011 Rs.2,752,497(‘000)-Previous yearRs.2,964,037(‘000)) 4,990,072 4,464,005

SCHEDULE 12 – CONTINGENT LIABILITIES I. Claimsagainstthebanknot acknowledgedasdebts – –II. Liabilityforpartlypaidinvestments – –III. Liabilityonaccountofoutstanding forwardexchangecontracts – –IV. Guaranteesgivenonbehalfof constituents a) InIndia – – b) OutsideIndia – –V. Acceptances,endorsements andotherobligations – –VI. Otheritemsforwhichthebank iscontingentlyliable 1,219,506 828,661

1,219,506 828,661


SCHEDULE 8 – INVESTMENTS I. InvestmentinIndiain i) GovernmentSecurities (TreasuryBills) 23,411,094 18,638,151 ii) Otherapprovedsecurities – – iii) Shares – – iv) DebenturesandBonds – – v) Subsidiariesand/or jointventures – – vi) Others – –

23,411,094 18,638,151

II. InvestmentoutsideIndiain i) GovernmentSecurities (includinglocalauthorities) – – ii) Subsidiariesand/orjoint venturesabroad – – iii) Others – – – –

23,411,094 18,638,151

SCHEDULE 9 – ADVANCES A. i) Billspurchasedand discounted – – ii) Cashcredits,overdraftand loanrepayableondemand 53,398,331 50,980,951 iii) Termloans-Staff 73 94 53,398,404 50,981,045

B. i) Securedbytangibleassets (Securedprimarilyby FixedDeposits) 1,101,165 1,772,915 ii) Coveredbybank/ governmentsguarantees 982,216 1,438,541 iii) Unsecured 51,315,023 47,769,589 53,398,404 50,981,045

C. I. AdvancesinIndia i) Prioritysector* – – ii) Publicsector – – iii) Banks – – iv) Others 53,398,404 50,981,045 53,398,404 50,981,045 II. AdvancesoutsideIndia i) Duefrombanks – – ii) Duefromothers (a) Billspurchasedand discounted – – (b)Syndicatedloans – – (c) Others – –

53,398,404 50,981,045

*NotapplicabletotheBankvideRBIletterno.RPCD.CO.Plan.11642/04.09.09/2008-09dated11/05/2009



9

Year ended Year ended March 31, March 31, 2019 2018

SCHEDULE 13 – INTEREST EARNED Interest/discountonadvances/bills 3,767,583 2,591,378Incomeoninvestments 1,419,725 1,042,298Interestonbalanceswiththe ReserveBankofIndiaand – – otherinter-bankfunds – –Others – – 5,187,308 3,633,676 SCHEDULE 14 – OTHER INCOME Commission,exchangeandbrokerage(net) [ReferNoteIV.2ofSchedule18] 13,380,503 11,731,876NetProfit/(Loss)onsale ofinvestments 174 41NetProfit/(Loss)onrevaluation ofinvestments – –Profitonsaleofland,building andotherassets 1,750 1,982 Less:Lossonsaleofland,building andotherassets (625) (767)Netprofitonexchangetransactions – –Incomeearnedbywayofdividends etc.fromsubsidiaries,companies and/orjointventuresabroad/inIndia – –MiscellaneousIncome 834,911 641,374 14,216,713 12,374,506 SCHEDULE 15 – INTEREST EXPENDEDInterestondeposits 1,100,620 814,462InterestonReserveBankofIndia/ interbankborrowings 360,461 443,646Others – – 1,461,081 1,258,108

Year ended Year ended March 31, March 31, 2019 2018

SCHEDULE 16 – OPERATING EXPENSESPaymentstoandprovisions foremployees 1,591,008 1,329,453Rent,taxesandlighting 196,164 164,185Printingandstationery 136,725 107,174Advertisementandpublicity 7,414,948 5,608,524DepreciationonBank’sproperty 111,661 118,495Director’sfee,allowances andexpenses – –Auditors’feesandexpenses 5,229 4,568 [ReferNoteIV.17ofSchedule18] Lawcharges 2,999 10,138Postage,telegram,telephonesetc. 209,683 204,147Repairsandmaintenance 59,185 69,636Insurance 18,793 17,181BusinessSupportCost(net) 3,936,949 2,777,715Otherexpenditure 1,442,550 1,845,579 15,125,894 12,256,795

SCHEDULE 17 – PROVISIONS AND CONTINGENCIES*Depreciationinthevalueofsecurities – –Provisionforadvances andreceivables 2,534,761 1,681,175Provisionforincometaxand wealthtax: WealthTax – – FringeBenefitTax – – DeferredIncomeTax – – 2,534,761 1,681,175 *ReferNoteIV.1.gofSchedule18 fordetails



SCHEDULE – 18 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTSI. Thefinancial statements for theyearendedMarch31,2019comprises theBalanceSheet,ProfitandLossAccount,CashFlow

StatementandSchedulesoftheIndiaBranchofAmericanExpressBankingCorp.(the“Bank”),whichisincorporatedintheNewYorkStateBankingLaw,UnitedStatesofAmerica.TheBank’sultimateholdingcompanyisAmericanExpressCompany,whichisincorporatedintheUnitedStatesofAmerica.TheBankhasmaintainedthebooksofaccountsandotherbooksandpapersintheelectronicmode,periodicbackupofwhichhavebeenmaintainedonserversphysicallylocatedoutsideofIndia.

II. Background: AmericanExpressBankingCorp.-IndiaBranchhasbeengrantedlicensebyReserveBankofIndia(‘RBI’)tocarryonbankingbusinessinIndia.ThelicenseauthorisestheBanktoconductcreditcardbusiness,distributetravellerchequesandacceptinstitutionaldeposits.InlinewiththemarketpracticeandtheRBIGuidelines,thebankissuescreditcardsandprovidespaymentsolutionstocorporatesandotherentitiesfortheirpurchaseslikeinventory,fixedassets,payrollcostandotherexpenseslikeofficesupplies,utilities,advertising,couriers,etc.

III. Significant Accounting Policies1. Basis of preparation: Thefinancialstatementshavebeenpreparedandpresentedunder thehistoricalcostconventionontheaccrual

basisofaccounting,unlessotherwisestatedandareinaccordancewiththegenerallyacceptedaccountingprinciplesinIndia,statutoryprovisionsprescribedundertheBankingRegulationAct,1949,circularsandguidelinesissuedbytheReserveBankofIndia(RBI)fromtimetotimeandAccountingStandards(AS)prescribedunderSection133oftheCompaniesAct,2013readwithRule7oftheCompanies(Accounts)Rules,2014andCompanies(AccountingStandards)AmendmentRules,2016totheextentapplicableandconformtothestatutoryrequirementsprescribedbytheRBIfromtimetotimeandcurrentpracticesprevailingwithinthebankingindustryinIndia.



10

SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2019

Schedule 18 – Significant Accounting Policies and Notes to Financial Statements (Contd.)

ThefinancialstatementsarepresentedinIndianRupeesroundedofftothenearestthousandunlessotherwisestated.2. Use of Estimates: The preparation of financial statements, in conformitywith the generally accepted accounting principles,

requirestheManagementtomakeestimatesandassumptionsconsideredinthereportedamountsofassetsandliabilities(includingcontingent liabilities) as of the date of the financial statements and reported income and expenses for the reporting period.Managementbelieves that theestimatesused in thepreparationof thefinancialstatementsareprudentandreasonable.Actualresultscoulddifferfromtheseestimatesandthesedifferencesarerecognizedprospectivelyinthecurrentandfutureperiods.

3. Revenue Recognition (i) Feesandcommissionsreceived,netofrebates/commissionspaid,arerecognizedupontheoccurrenceofthetransactions.

Annualcardfees,netofdirectcardacquisitioncostsareamortizedovertheperiodofoneyear.Joiningfeesoncardsarerecognisedintheyearofbilling.

(ii) Interestincomeandotherchargesoncardbalancesarerecognizedasitaccrues,exceptinthecaseofnon-performingassets,whereitisrecognisedonrealisation,aspertheprudentialnormsprescribedbyRBI.

(iii) Recoveryfrombaddebtswrittenoffisrecognizedasincomeonthebasisofactualrealizationfromcustomers. (iv) Interestincomeondiscountedinstrumentsisrecognisedoverthetenureoftheinstruments.4. Foreign Currency transactions and balances Transactionsdenominatedinforeigncurrenciesarerecordedonthedateoftransactionsatthestandardexchangeratedeterminedby

theBank.ExchangedifferencesarisingontheforeigncurrencytransactionssettledduringtheyeararerecognizedintheProfitandLossAccountofthesameyear.

MonetaryAssetsandLiabilitiesdenominatedinforeigncurrenciesasattheBalanceSheetdatearerestatedattheclosingratesnotifiedbyForeignExchangeDealers’AssociationofIndia(FEDAI)andtheresultantexchangedifferencesarerecognisedintheProfitandLossAccount.Transactionswhereinthereisnoforeignexchangerisk,theamountsarecarriedatthesettlementrates.

5. Investments (i) Classification InaccordancewithReserveBankofIndia(‘RBI’)guidelines,allinvestmentsarecategorisedas‘HeldtoMaturity’,or‘Held

forTrading’or‘AvailableforSale’. InvestmentsthattheBankintendstoholdtomaturityareclassifiedas‘HeldtoMaturity’.Investmentsthatareheldprincipally

forresalewithinninetydaysfromthedateofpurchaseareclassifiedas‘HeldforTrading’.Allotherinvestmentsareclassifiedas‘AvailableforSale’.AnInvestmentisclassifiedas‘HeldtoMaturity’,‘AvailableforSale’or‘HeldforTrading’atthetimeofitspurchase.AnysubsequentchangeinclassificationisdoneasperRBInorms.Asondate,alltheinvestmentsareclassifiedas‘AvailableforSale’.

(ii) Valuation TreasuryBills,beingdiscountedinstrumentsarevaluedatcarryingcostasperRBIguidelines. (iii) Acquisition Cost Brokerage,commission,etc.,paidatthetimeofacquisitionofsecuritiesarechargedtoProfitandLossAccount. (iv) Disposal of Investments Profitorlossonsaleofinvestmentsisrecognisedintheprofitandlossaccountontrade/settlementdate.6. Advances LoansandAdvancescomprisecardoutstandingandloanstostaff.LoansandAdvancesarestatednetofspecificprovisionmade

towardsNon-PerformingAssets(NPAs).Advancesundercardreceivablesaremaintainedatthecardmemberlevel. ProvisionforNPAsoncardbalancesoutstandingismadeatcardmemberlevelincompliancewiththeprudentialnormsonIncome

Recognition,AssetClassificationandProvisioningpertainingtoAdvancesissuedbytheReserveBankofIndiaandaremonitoredandtrackedataportfoliolevel.Inthecaseofsub-standardassets,inadditiontominimumprovisionrequirementprescribedbyRBI,thebankmakesadditionalprovisionbasedonbestestimateofprobablelosses.Theinterestandotherincomeonnon-performingassetsisnotrecognisedasincomeuntilrealised.

ProvisionforStandardAssetsandUnhedgedForeignCurrencyExposureismadeincompliancewiththeprudentialnormsonIncomeRecognition,Asset Classification and Provisioning pertaining toAdvances issued by theReserveBank of India anddisclosedunderOtherLiabilitiesandProvisions.ProvisionforStandardAssetsaremonitoredforsufficiencyusingthewriteoffratesbasishistoricaltrendataportfoliolevel.

TheBankidentifiesallcardaccountswithdelinquenciesandgenerallywritesoffinthebooksofaccount,theoutstandingcardreceivableswhichare210dayspastbillingfrombillgenerationdate.Accountsclassifiedasdoubtful/lossareprovidedat100%tillwrittenoff.Acceleratedwriteoffiseffectedforcardreceivableswhicharedueforlessthan210daysfrombillgenerationdate,whereitisevidentthattheoutstandingamountisunlikelytoberecovered.

RestructuredassetsareclassifiedandprovidedforinaccordancewiththeguidelinesissuedbyRBIfromtimetotime. NetReceivablesfrom/payablestooverseasgroupentitiesonaccountofmerchantpaymentsmadeforspendsmadebyoverseas/

IndiancardmembersinIndia/overseas,havebeenclassifiedunderOtherAssets/OtherLiabilitiesintheFinancialStatements.



11



7. Fixed assets and depreciation (i) Fixed assets are stated at cost less accumulated depreciation. TheBank capitalises all costs relating to acquisition and

installationoffixedassets.

(ii) Carrying amounts of cashgenerating assets are reviewed at eachBalanceSheet date to determinewhether there is anyimpairment.Impairmentloss,ifany,isrecognisedintheProfitandLossAccountwheneverthecarryingamountexceedstherecoverableamount.

(iii) Depreciationonfixedassetsisprovidedonpro-ratabasisovertheperiodoftheestimatedusefullifeoftheassetonStraightLineMethodovertheestimatedusefullifeprescribedinScheduleIItotheCompaniesAct,2013.

(iv) Fixedassetsaredepreciatedovertheestimatedusefullifegiveninthetablebelow:

Asset Estimated Useful LifeLeaseholdImprovements OvertheleaseperiodDataProcessingEquipment

ServerandNetworks 6yearsEndUserDevicessuchaslaptop,desktop,etc. 3years

TransportEquipment 8yearsFurnitureandFixtures 10yearsMachineryandEquipment

OfficeEquipment 5yearsHeadsetsandMobilePhones 3years

8. Accounting for Leases Leasesinwhichasignificantportionoftherisksandrewardsofownershipareretainedbythelessorsareclassifiedasoperating

lease.LeasepaymentsforassetstakenonoperatingleasesarerecognizedasanexpenseintheProfitandLossAccountovertheleasetermonastraightlinebasis.

9. Employee Benefits a) Provident Fund TheBankcontributestomandatorygovernmentadministeredprovidentfundswhicharedefinedcontributionschemesasthe

Bankdoesnotcarryanyfurtherobligation,apartfromthecontributionsmadeonamonthlybasis.ThecontributionsareaccountedforonanaccrualbasisandrecognizedintheProfitandLossAccount.

b) Pension (i) TheBankhasapensionschemewhichisadefinedcontributionplan.EmployeesoftheBankareentitledtoreceiveretirement

benefitsundertheBank’sSuperannuationschemeunderadefinedcontributionplantothepensionfund.ContributionsundertheseschemesarerecognisedintheProfitandLossAccountintheperiodinwhichtheyaccrue.

(ii) Inadditiontotheabovearrangement,therearedeferred(exited)employeeswhohadoptedforthedefinedbenefitscheme. TheBankhassetupaPensionTrustviz.AmericanExpressBankingCorp.IndiaStaffSuperannuationFundtomanagethe

contributionstothepensionfund.TheBankprovidesforitspensionliabilitybasedonactuarialvaluationofthepensionliability,basedonProjectedUnitCreditMethod,asat theBalanceSheetdatecarriedoutbyanindependentactuaryandcontributes to the pension fund.The contributionsmade to theTrust are recognized as plan assets.The definedbenefitobligationasreducedbyfairvalueofplanassetsisrecognizedintheBalanceSheet.ActuarialgainsorlossesarerecognizedintheProfitandLossAccountintheyearinwhichtheyarise.

c) Gratuity TheBankhassetupaGratuityTrustviz.AmericanExpressBankingCorp.IndiaEmployeesGratuityFundtomanagethe

contributionstothegratuityfund.TheBankprovidesforitsgratuityliabilitybasedonactuarialvaluationofthegratuityliabilityasattheBalanceSheetdate,basedonProjectedUnitCreditMethod,carriedoutbyanindependentactuaryandcontributes to thegratuity fund.The contributionsmade to theTrust are recognized asplan assets.ThedefinedbenefitobligationasreducedbyfairvalueofplanassetsisrecognizedintheBalanceSheet.ActuarialgainsorlossesarerecognizedintheProfitandLossAccountintheyearinwhichtheyarise.

d) Leave encashment/ Compensated Absences TheBankprovidesforleaveencashment/compensatedabsencesliability,whichispayableonseparationorterminationof

service.Theliabilityforleaveencashment,whichisadefinedbenefitscheme,isprovidedbasedonactuarialvaluationasattheBalanceSheetdate,basedonProjectedUnitCreditMethod,carriedoutbyanindependentactuary.



12



10. Income Taxes

Incometaxexpensecomprisesofthecurrenttax,thenetchangeinthedeferredtaxassetandthedeferredtaxliabilityduringtheyear.CurrenttaxisdeterminedastheamountoftaxpayableinrespectoftaxableincomefortheyearonthebasisoftheprovisionsoftheIncomeTaxAct,1961.

Deferredtaxisrecognized,subjecttotheconsiderationofprudenceinrespectofdeferredtaxasset,ontimingdifferences,beingthedifferencebetweentaxableincomeandaccountingincomethatoriginateinoneperiodandarecapableofreversalinoneormoresubsequentperiods.

Incasetherearecarryforwardtaxlosses,theDeferredTaxAssetisrecognizedonlywhenthereisvirtualcertaintysupportedbyconvincingevidencethatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscanberealised.

11. Membership Reward Points

TheMembershipRewardprogrammeisacard-basedrewardsprogrammethroughwhicheligiblecardmemberscanearnpointsforpurchaseschargedontheBank’scardproducts.MembershipRewardspointscanberedeemedforabroadvarietyofrewards.TheBankestablishesbalancesheetprovisionsthatrepresenttheestimatedcostofpointsearnedtodatethatareultimatelyexpectedtoberedeemedbasedonthemanagement’sjudgementandshownasapartofOtherLiabilitiesandProvisions.ThecostofMembershipRewardPointsisincludedaspartofAdvertisementandPublicityExpense.

12. Accounting for Provision, Contingent Liabilities and Contingent Assets

TheBankcreatesaprovisionwhen there isapresentobligationasa resultofapastevent thatprobably requiresanoutflowofresourcesandareliableestimateoftheamountoftheobligationcanbemade.

AdisclosureforContingentLiabilityismadewhenthereisapossibleobligationorapresentobligationthatmay,butprobablywillnot,requireanoutflowofresources.Whenthereisapossibleobligationorapresentobligationinrespectofwhichthelikelihoodofoutflowofresourcesisremote,noprovisionordisclosureismade.

TheprovisionsarereviewedateachBalanceSheetdateandadjustedtoreflectthecurrentbestestimate.

Contingentassetsarenotrecognizedinthefinancialstatements.

13. Segment Reporting

TheBankhasrecognisedBankingOperationsandTreasuryoperations,astheprimaryreportingBusinessSegments,inaccordancewith theRBIguidelinesoncompliancewithAccountingStandard–17 issuedbyInstituteofCharteredAccountantsof IndiaasspecifiedunderSection133ofCompaniesAct,2013readwithRule7oftheCompanies(Accounting)Rules,2014.

BankingOperationsincludecardoperations,travellers’chequedistributionandinstitutionaldeposits.Interestincomeandexpense(other than those identifiedwith theTreasuryOperations), other identified income and operating expenses are reckoned in theoperatingresultsofthissegment.

Treasury activities include the Investments andbalance inbankaccount tomeet theStatutoryLiquidityRatio (SLR),LiquidityCoverageRatio(LCR)andmaintenanceofCashBalancestomeettheCashReserveRatio(CRR)requirementandthecorrespondingfundingtomeettheserequirements.Theinterestincomeandinterestexpensesrelatedtotheseactivitiescomprisetherevenueandexpenseofthissegment.

14. Cash and Cash Equivalents

Cashandcashequivalentsincludescashinhand,balancewithRBI,demanddepositswithbanksandotherfixeddepositswithbankwithoriginalmaturitiesofthreemonthsorless.

15. Impairment of Assets

Thecarryingamountsofassetsarereviewedateachbalancesheetdatetoascertainifthereisanyindicationofimpairmentbasedoninternal/externalfactors inaccordancewithAccountingStandard–28,ImpairmentofAssets issuedbyInstituteofCharteredAccountantsofIndiaasspecifiedunderSection133ofCompaniesAct,2013readwithRule7oftheCompanies(Accounting)Rules,2014.ThecarryingamountisreducedtotherecoverableamountandreductionisrecognisedasanimpairmentlossintheProfitandLossAccount.



13



IV. NOTES TO FINANCIAL STATEMENTS1. Statutory Disclosures as per RBI norms: a) Capital Adequacy Ratio IntermsoftheextantRBIguidelinesonBaselIIICapitalRegulations,asofMarch31,2019,theBankisrequiredtomaintain

aminimumCapital toRisk-weightedAssetRatio (CRAR) (including capital conservationbufferof 1.875%)of10.875%.Further,within thisoverall capital requirement, theBank isalso required tomaintainaMinimumCommonEquityTier1(includingcapitalconservationbufferof1.875%)of7.375%andMinimumTier1Capitalof7%.TheBank’sCapitalAdequacyRatio,calculatedaspertheBaselIIICapitalRegulationsisprovidedhereunder.

Particulars 2018-19 2017-18CommonEquityTier1capitalratio(%)TierICapitalRatio(%)TierIICapitalRatio(%)TotalCapitalratio(CRAR)(%)PercentageoftheshareholdingoftheGovernmentofIndiainpublicsectorbanksAmountofequitycapitalraised

–HeadOfficeFunds(AmountRs.in‘000)AmountofadditionalTier1capitalraisedAmountofadditionalTier2capitalraisedofwhich-

–DebtCapitalinstrument:(AmountinRs.’000)–PreferenceShareCapitalInstruments

14.92%14.92%9.44%24.36%

NA

3,364,375–

4,950,000–

12.59%12.59%5.35%17.94%

NA

2,764,040–

––

b) Subordinated Debt - Tier 2 Debt Capital Raised in the form of Head Office Borrowings in Foreign Currency: Schedule4–BorrowingsincludesanamountofRs.1,250,000thousands,Rs.3,300,000thousandsandRs.4,950,000thousands

pertainingtoTier2debtcapitalraisedintheformofHeadOfficeborrowingsinforeigncurrencyduring2013-14,2015-16and2018-19respectivelyfromHeadOffice.DetailsoftheHeadOfficeborrowingsareasunder– (Amount Rs. in ‘000)

Particulars 2018-19 2017-18DateofBorrowing 1-Nov-2013 27-Nov-2015 04-May-2018 1-Nov-2013 27-Nov-2015RateofInterest InterestFree InterestFree InterestFree InterestFree InterestFreeAmount(Rs.’000) 1,250,000 3,300,000 4,950,000 1,250,000 3,300,000DateofRepayment 1-Nov-2023 27-Nov-2025 04-May-2028 1-Nov-2023 27-Nov-2025CallOptionwiththeBank

Aftercompletionof5yearsfromtheIssuancedate(1-Nov-2018),withapriornoticeof120daystotheLender.Thebankhasdecidednottoexercisethe prepaymentoption.

Aftercompletionof5yearsfromtheIssuancedate(27-Nov-2020),withapriornoticeof120daystotheLender.Thebankhasdecidednottoexercisethe prepaymentoption.

Aftercompletionof5yearsfromtheIssuancedate(04-May-2023),withapriornoticeof90daystotheLender.Thebankhasdecidedtoexercisetheprepaymentoptiononlyafter01-May-2025.

Aftercompletionof5yearsfromtheIssuancedate(1-Nov-2018),withapriornoticeof120daystotheLender.Thebankhasdecidednottoexercisetheprepaymentoption.

Aftercompletionof5yearsfromtheIssuancedate(27-Nov-2020),withapriornoticeof120daystotheLender.Thebankhasdecidedtoexercisetheprepaymentoptiononlyafter01-Apr-2024.

c) Business / Information Ratios:Particulars 2018-19 2017-18

a. Interestincomeasapercentagetoworkingfunds(%) 6.53 5.68b. Non-interestincomeasapercentagetoworkingfunds(%) 17.88 19.34c. Operatingprofitasapercentagetoworkingfunds(%) 3.54 3.89d. Returnonassets(%) 0.36 1.27e. Business(depositsplusadvances)peremployee(AmountinRs.’000) 104,166 87,234f. Profit/(loss)peremployee(AmountinRs.‘000) 420 1,263

Definitions: a) WorkingfundsistheaverageoftotalassetsasreportedinreturnFormXunderSection27ofBankingRegulationAct,1949

(excludingaccumulatedlosses)duringtheyear. b) Operatingprofit=(Interestincome+otherincome–interestexpenses–operatingexpenses–amortizationofpremiumon

investments–profit/(loss)onsaleoffixedassets). c) “Business”istheaverageofthetotalofadvancesanddeposits(netofinter-bankdeposits). d) Productivityratiosarebasedonnumberofemployeesatyearend.



14



d) Asset Liability Management - Maturity Pattern of Certain Assets and Liabilities Classificationofassetsandliabilitiesunderthedifferentmaturitybucketsarebasedontheestimatesandassumptionsusedby

theBank.TheseestimatesandassumptionsarebasedontheguidelinesonAssetLiabilityManagementissuedbyReserveBankofIndia.

(Amount Rs. in ‘000)

Particulars Day - 1 2-7 Days 8-14 Days 15-30 Days

31 Days & upto

2 months

Over 2 Months

and upto 3 months

Over 3 Months

and upto 6 months

Over 6 Months

and upto 1 year

Over 1 Year and

upto 3 years

Over 3 Year and

upto 5 years

Over 5 years

Total

Deposits -CurrentYear – 1,403,214 3,085,662 2,782,906 1,686,113 2,374,751 5,630,934 4,391,714 – – – 21,355,294

PreviousYear – 431,971 206,459 2,430,506 2,402,821 2,320,891 5,498,588 2,814,402 – – – 16,105,638

Advances -CurrentYear 1,205,086 7,230,516 8,435,601 19,281,375 4,540,296 1,361,937 2,983,318 2,168,235 4,970,685 1,082,146 139,209 53,398,404

PreviousYear 1,254,354 7,526,123 8,780,477 20,069,661 4,070,115 1,063,392 2,598,737 1,306,478 3,624,316 385,565 301,827 50,981,045

Investments - CurrentYear 16,242,806 882,156 437,292 990,368 466,574 525,293 889,199 1,206,121 238,416 198,472 1,334,397 23,411,094

PreviousYear 13,095,291 720,435 297,992 178,726 733,804 434,037 937,753 1,580,526 3,474 1,122 654,991 18,638,151

Borrowings -CurrentYear – – – – – 1,000,000 – 2,023,786 10,504 1,250,000 8,250,000 12,534,290

PreviousYear 278,832 – – – 1,800,000 1,000,000 1,800,000 7,610,969 – – 4,550,000 17,039,801

Foreign Currency Assets –CurrentYear – – – 37 – – – – – – – 37

PreviousYear – – – 722 – – – – – – – 722

Foreign CurrencyLiabilities –CurrentYear 266,456 584,491 1,766,279 4,090,191 7,780,583 2,324,836 – 622,784 – 1,250,000 8,250,000 26,935,620

PreviousYear 226,915 543,511 1,640,169 3,570,166 6,859,854 2,461,648 574,230 – – – 4,550,000 20,426,493

e) Exposure to real estate(Amount Rs. in ‘000)

Particulars 2018-19 2017-18

a) Directexposure 82,727 466,130 (i) ResidentialMortgages– – – Lendingfullysecuredbymortgagesonresidentialpropertythatisorwill

beoccupiedbytheborrowerorthatisrented– –

(ii) CommercialRealEstate– 82,727 466,130 Lendingsecuredbymortgagesoncommercialrealestate – – Others 82,727 466,130 (iii) InvestmentsinMortgageBackedSecurities(MBS)andothersecuritized

exposures–– –

a. Residential – – b. CommercialRealEstate – –b) IndirectExposure – – Fundbasedandnon-fundbasedexposuresonNationalHousingBank(NHB)

andHousingFinanceCompanies(HFCs)– –

Total Exposure to Real Estate Sector 82,727 466,130



15



f) Exposure to Capital Market(Amount Rs. in ‘000)

Particulars 2018-19 2017-18(i) directinvestmentinequityshares,convertiblebonds,convertibledebentures

andunitsofequityorientedmutualfundsthecorpusofwhichisnotexclusivelyinvestedincorporatedebt;

– –

(ii) advancesagainstshares/bonds/debenturesorothersecuritiesoroncleanbasistoindividualsforinvestmentinshares(includingIPOs/ESOPs),convertiblebonds,convertibledebentures,andunitsofequityorientedmutualfunds;

–

(iii) advancesforanyotherpurposeswheresharesorconvertiblebondsorconvertibledebenturesorunitsofequityorientedmutualfundsaretakenasprimarysecurity;

– –

(iv) advancesforanyotherpurposestotheextentsecuredbythecollateralsecurityofsharesorconvertiblebondsorconvertibledebenturesorunitsofequityorientedmutualfundsi.e.wheretheprimarysecurityotherthanshares/convertiblebonds/convertibledebentures/unitsofequityorientedmutualfundsdoesnotfullycovertheadvances;

– –

(v) securedandunsecuredadvancestostockbrokersandguaranteesissuedonbehalfofstockbrokersandmarketmakers;

227,857 77,365

(vi) loanssanctionedtocorporatesagainstthesecurityofshares/bonds/debenturesorothersecuritiesoroncleanbasisformeetingpromoter’scontributiontotheequityofnewcompaniesinanticipationofraisingresources;

– –

(vii) bridgeloanstocompaniesagainstexpectedequityflows/issues; – –(viii) underwritingcommitmentstakenupbythebanksinrespectofprimaryissueof

sharesorconvertiblebondsorconvertibledebenturesorunitsofequityorientedmutualfunds;

– –

(ix) financingtostockbrokersformargintrading; – –(x) allexposurestoVentureCapitalFunds(bothregisteredandunregistered) – –Total Exposure to Capital Market 227,857 77,365

g) Provisions and Contingencies: (Amount Rs. in ‘000)

Particulars 2018-19 2017-18ProvisionfordepreciationonInvestment – –ProvisiontowardsNonPerformingAssets 450,790 187,030ProvisiontowardsStandardAssets 42,412 162,598Write-offs 1,943,654 1,206,689OthersProvisionmadetowardsIncometax,WealthTaxandDeferredTax

97,905–

124,858–

TOTAL 2,534,761 1,681,175

h) Investments (Amount Rs. in ‘000)

Particulars 2018-19 2017-18GrossvalueofInvestments InIndia 23,411,094 18,638,151OutsideIndia – –ProvisionfordepreciationInIndia – –OutsideIndia – –NetvalueofinvestmentsInIndia 23,411,094 18,638,151OutsideIndia – –



16



i) Asset Quality - Non-performing assets (‘NPAs’)(Amount Rs. in ‘000)

Particulars 2018-19 2017-18(i) NetNPAstoNetAdvances(%) 2.03% 0.76%(ii) MovementofNPAs(Gross)

(a) Openingbalance 848,490 475,093(b) Additionsduringtheyear 7,073,750 2,654,029(c) Reductionsduringtheyear 5,926,359 2,280,632(d) Closingbalance 1,995,881 848,490

(iii) MovementofprovisionsforNPAs (excludingprovisionsonstandardassets) (a) Openingbalance 463,018 275,988(b) Provisionsmadeduringtheyear 3,992,048 1,516,825(c) Writeoff/writebackofexcessprovision 3,541,258 1,329,795(d) Closingbalance 913,808 463,018

(iv) MovementofNetNPAs (a) Openingbalance 385,472 199,105(b) Additionsduringtheyear 3,081,702 1,137,204(c) Reductionsduringtheyear 2,385,101 950,837(d) Closingbalance 1,082,073 385,472

j) Category-wise NPAs (funded) (Amount Rs. in ‘000)

Non-performing asset category 2018-19 2017-18Gross NPAs Provisions Gross NPAs Provisions

Substandard 1,752,587 670,514 759,221 373,749Doubtful 243,223 243,223 89,269 89,269Loss 71 71 – –Total 1,995,881 913,808 848,490 463,018

k) Single Borrower Limit (SBL) and Group Borrower Limits (GBL): During theyear, theBank’screditexposure tosingleborrowersandgroupborrowerswerewithin the limitsprescribedby

ReserveBankofIndia. l) Disclosure of complaints: Customer Complaints

Particulars 2018-19 2017-181 No.ofcomplaintspendingatthebeginningoftheyear 415 4282 No.ofcomplaintsreceivedduringtheyear 22,836 19,3603 No.ofcomplaintsredressedduringtheyear 22,854 19,3734 No.ofcomplaintspendingattheendoftheyear 397 415

m) Concentration of Deposits, Advances, Exposures and NPAs: Concentration of Deposits

(Amount Rs. in ‘000)S. No. Particulars 2018-19 2017-181 TotalDepositsoftwentylargestdepositors 20,924,346 15,521,6852 PercentageofDepositsoftwentylargestdepositorstoTotalDepositsoftheBank 97.98% 96.37%

Concentration of Advances (Amount Rs. in ‘000)

S. No. Particulars 2018-19 2017-181 TotalAdvancestotwentylargestborrowers 7,939,976 9,387,5012 PercentageofAdvancesoftwentylargestborrowerstoTotalAdvancesoftheBank 14.62% 18.25%



17



Concentration of Exposures (Amount Rs. in ‘000)

S. No. Particulars 2018-19 2017-181 TotalExposuretotwentylargestborrowers/customers 13,484,816 13,147,5582 PercentageofExposurestotwentylargestborrowers/customerstoTotal

Exposureofthebankonborrowers/customers5.90% 6.98%

Concentration of NPAs(Amount Rs. in ‘000)

S. No. Particulars 2018-19 2017-181 TotalExposuretotopfourNPAaccounts 844,482 71,064

n) Sector-wise Advances(Amount Rs. in ‘000)

S. No. Sector 2018-19 2017-18Outstanding

Total Advances

Gross NPAs

Percentage of Gross

NPAto Total

Advances

Outstanding Total

Advances

Gross NPAs

Percentage of Gross

NPA to Total

AdvancesA Priority Sector*1 Agricultureandalliedactivities – – – – – –2 Industry(Micro&small,Medium

andLarge)– – – – – –

3 Services – – – – – –4 PersonalLoans – – – – – –

SubTotal(A) – – – – – –

B Non Priority Sector

1 Agricultureandalliedactivities – – – – – –2 Industry(Micro&small,Medium

andLarge)7,025,265 908,784 12.94% 10,457,739 66,018 0.63%

– Food Processing 994,524 81,975 8.24% 1,997,316 26 0.00% – Chemicals and Chemical Products

(Dyes, Paints, etc.)994,555 10,052 1.01% 1,084,616 7,078 0.65%

– All Engineering (Electronics & Others) 1,998,087 65,074 3.26% 1,951,590 12,107 0.62% – Construction 595,334 304 0.05% 1,812,529 1,416 0.08% – Infrastructure 773,130 737,599 95.40% 1,545,952 28 0.00% – Others 1,669,635 13,780 0.83% 2,065,736 45,363 2.20%

3 Services 16,480,250 187,177 1.14% 17,316,279 172,180 0.99% – Computer Software 3,688,863 34,629 0.94% 3,821,787 54,714 1.43% – Tourism, Hotel and Restaurants 3,972,972 64,071 1.61% 4,297,506 41,386 0.96% – Professional Services 2,590,066 31,153 1.20% 2,594,071 19,337 0.75% – Retail Trade 2,714,683 35,438 1.31% 2,320,486 9,464 0.41% – Others 3,513,666 21,886 0.62% 4,282,428 47,279 1.10%

4 PersonalLoans 30,806,697 899,920 2.92% 23,670,046 610,292 2.58%SubTotal(B) 54,312,212 1,995,881 3.67% 51,444,064 848,490 1.65%Totals(A+B) 54,312,212 1,995,881 3.67% 51,444,064 848,490 1.65%

*NotapplicabletotheBankvideRBIletterno.RPCD.CO.Plan.11642/04.09.09/2008-09dated11/05/2009



18



o) Movement of NPAs (Amount Rs. in ‘000)

S. No. Particulars 2018-19 2017-18

1 GrossNPAs–OpeningBalance 848,490 475,093

2 Additions–FreshNPAsduringtheyear 7,073,750 2,654,029

3 Sub-Total[A](1+2) 7,922,240 3,129,122

4 Less:

i. Upgradationsii. Recoveriesiii. Write-offs

–4,261,6941,664,665

–1,268,4671,012,165

Sub-Total[B] 5,926,359 2,280,632

5 GrossNPAs–ClosingBalance 1,995,881 848,490

p) Provisioning Coverage Ratio (PCR) In terms of the RBI guidelines, the Bank’s Provisioning Coverage Ratio as of September 30, 2010 was 82.88%. The

provisioningcoverageratiooftheBankwithregardtotheNPAsasonMarch31,2019computedaspertheRBIguidelinesis50.22%[2017-18:65%].

q) Intra-Group Exposure Asaprudentialmeasureaimedatbetterriskmanagementandavoidingconcentrationandcontagionofcreditandliquidityrisk

thatmayarisefromIntraGroupExposures,theReserveBankofIndia(RBI)hasissuedGuidelinesonManagementofIntraGroupTransactionsandExposures (ITEs)vide itsCircularNo.RBI/2013-14/487DBOD.No.BP.BC.96/21.06.102/2013-14datedFebruary11,2014.Quantitativedisclosuresundertheaboveguidelinesareprovidedhere.


S. No. Particulars March 31, 2019 March 31, 2018

1 Totalamountofintra-groupexposures 598,814 576,2292 Totalamountoftop-20intra-groupexposures 598,814 576,2293 Percentageofintra-groupexposurestototalexposureofthe

bankonborrowers/customers0.26% 0.31%

4 Detailsofbreachoflimitsonintra-groupexposuresand regulatoryactionthereon,ifany

None None

r) Transfers to Depositor Education and Awareness Fund (DEAF) AsperguidelinesissuedbyRBIinrelationtoDepositorEducationandAwarenessFundScheme,2014,banksarerequiredto

transfertoadesignatedfund,theamountsbecomingdueineachcalendarmonthi.e.proceedsoftheinoperativeaccountsandbalancesremainingunclaimedfortenyearsormoreasspecifiedintheSchemeandtheinterestaccruedthereononthelastworkingdayofthesubsequentmonth.

BelowarethedetailsofamounttransferredtoDepositorEducationandAwarenessFundasofMarch2019.


Particulars 2018-19 2017-18

OpeningbalanceofamountstransferredtoDEAF 15,161 3,802Add:AmountstransferredtoDEAFduringtheyear 7,682 11,359Less:AmountsreimbursedbyDEAFtowardsclaims 3,267 –ClosingbalanceofamountstransferredtoDEAF 19,576 15,161



19



s) Liquidity Coverage Ratio Asper‘BaselIIIFrameworkonLiquidityStandards–LiquidityCoverageRatio(LCR),LiquidityRiskMonitoringToolsand

LCRDisclosureStandards’datedJune9,2014(CircularRefNo.RBI/2012-13/635/DBOD.BP.BC.No.120/21.04.098/2013-14)andsubsequentamendments,banksarerequiredtomonitortheirresiliencetopotentialliquiditydisruptionsunderstressscenariosbyensuringthattheyhavesufficienthighqualityliquidassetstosurviveanacutestressscenariolastingfor30daysandfundtheiractivitieswithmorestablesourcesoffundingonanongoingbasis.

BanksarerequiredtomaintainHighQualityLiquidAssetsofaminimumof100%ofitsNetCashOutflowsbyJanuary1,2019.However,withaviewtoprovidetransitiontime,theguidelinesmandateaminimumrequirementof60%w.e.f.January1,2015andastepupof10%everyyeartoreachtheminimumrequirementof100%byJanuary1,2019.

Qualitative DisclosuresLiquidityRiskisdefinedastheinabilityoftheBanktomeetitsongoingfinancialandbusinessobligationsastheybecomedue,atareasonablecost.TheBankmanagesitsliquidityriskbymaintainingaccesstoadiversesetofreadilymarketablesecurities,andcontingentsourcesofliquiditytoensurethatitcancontinuouslymeetitsbusinessrequirementsandfinancialobligations.TheIndiaCountryALCOchairedbytheCEOoverseestheBank’sliquidityandfundingriskprogramincludingadherencetointernalfunding/liquiditylimitsaswellasregulatorylimitsandratiossuchasCRR,SLRandLCR.GeneralprinciplesandtheoverallframeworkformanagingliquidityandfundingriskaredefinedintheLiquidityandFundingPolicyoftheBankdulyapprovedbytheCountryExecutiveCommittee(CEC).TheBankincursandacceptsliquidityriskthroughitsestablishedbusinessmodelandthroughthenormalcourseofofferingitsproductsandservices.TheliquidityrisktheBankiswillingtoacceptiscontrolledthroughaliquidityrisktolerancelimitwhichprovides for themaintenanceofacushionofhighquality,unencumbered liquidassets tobeheldagainst identifiedfundingrequirementsunderstressfordefinedliquidityrisksurvivalhorizon.Inaddition,theBankmaintainsacontingencyfundingplanwhichprovidesaframeworkforanalyzingandrespondingtoliquidityeventsthatarebothmarket-drivenaswellasinstitution-specific.Further,theCFPdescribesthegovernanceandprotocoltobeputintoeffectupontheoccurrenceofaliquidityeventanddetailstherolesandresponsibilitiesofSeniorManagement.TheBankalsoseekstodiversifyitsfundingsourcesacrosscapital,institutionaldeposits,subordinateddebtfromheadofficeandlinesofcreditfromlocalbanks.Fundingfromsignificantcounterpartiesandinstrumentsismonitoredregularlyaspartofitsongoingliquiditymanagement.TheBankhasinstitutionalizedaprocessofmeasuring,monitoringandreportingoftheLCRinlinewiththeReserveBankofIndia’sguidelinesonLCR.TheBankhasbeenincompliancewiththeminimumstandardof70%from1stJanuary2016to31stDecember2016,80%from1stJanuary2017,90%from1stJanuary2018and100%from1stJanuary2019onwards.TheLCRiscalculatedbydividingtheamountofhigh-qualityliquidunencumberedassets(HQLA)bytheestimatednetcashoutflowsoverastressed30calendardayperiod.DetailedcompositionsofelementsoftheLCRarelistedbelow–

High Quality liquid assets (HQLA)AssetsareHQLAiftheycanbeconvertedintocashatlittleornolossofvalue.TheBankholdsstockofLevel1HQLAintheformofexcessCRRbalanceswithRBIandexcessGovernmentsecuritiesoverandabovetheSLRrequirements.Additionally,theBankalsoreckonsgovernmentsecuritieswithinthemandatorySLRrequirement,totheextentallowedbytheReserveBankunderMarginalStandingFacilityandFacilitytoavailLiquidityforLCRasLevel1HQLA.

Net Cash OutflowsThetotalnetcashoutflowsaredefinedasthetotalexpectedcashoutflowsminustotalexpectedcashinflowsforthesubsequent30calendardays.Totalexpectedcashoutflows,arecalculatedbymultiplyingtheoutstandingbalancesofvariouscategoriesortypesofliabilitiesbytheratesatwhichtheyareexpectedtorunofforbedrawndownandtotalexpectedcashinflowsarecalculatedbymultiplyingtheoutstandingbalancesofvariouscategoriesofreceivablesbytheratesatwhichtheyareexpectedtoflowin,uptoanaggregatecapof75%oftotalexpectedcashoutflows,inlinewithRBIguidelines.The major components of cash outflow for the Bank are unsecured wholesale funding (lines of credit from Banks andInstitutionalDeposits), uncommitted, revocable credit facilities extended to customers and other contractual payouts suchasmerchantpayables,membershiprewardsetc.ThekeyconstituentsofcashinflowfortheBankareremittancesfromcardmembers,balanceswithbanksetc.ThedailyaverageLCRfortheBankforthequarterendingMarch31,2019stoodat119.87%



20



Quantitative Disclosures (Amount Rs. in ‘000) Quarter ended 31st

March 2019Quarter ended 31st

December 2018Quarter ended 30th

September 2018Quarter ended 30th

June 2018Quarter ended 31st

March 2018 Total

Unweighted Value

(average)

Total Weighted

Value (average)

Total Unweighted

Value (average)

Total Weighted

Value (average)

Total Unweighted

Value (average)

Total Weighted

Value (average)

Total Unweighted

Value (average)

Total Weighted

Value (average)

Total Unweighted

Value (average)

Total Weighted

Value (average)

High Quality Liquid Assets 1 TotalHighQualityLiquidAssets

(HQLA) 21,074,942 19,230,329 20,665,853 18,630,470 15,866,113Cash Outflows 2 Retaildepositsanddepositsfrom

smallbusinesscustomers,ofwhich: – – – – – – – – – –(i) Stabledeposits – – – – – – – – – –(ii) Lessstabledeposits – – – – – – – – – –3 Unsecuredwholesalefunding,ofwhich: 6,659,196 3,038,739 7,016,034 3,444,716 8,410,101 4,052,201 5,891,979 3,178,752 4,409,188 2,172,617(i) Operationaldeposits

(allcounterparties) – – – – – – – – – –(ii) Non-operationaldeposits

(allcounterparties) 6,034,095 2,413,638 5,952,197 2,380,879 7,263,167 2,905,267 4,522,045 1,808,818 3,727,619 1,491,048(iii) Unsecureddebt 625,101 625,101 1,063,837 1,063,837 1,146,934 1,146,934 1,369,934 1,369,934 681,569 681,5694 Securedwholesalefunding – – – – –5 Additionalrequirements,ofwhich 920,972 920,972 880,751 880,751 961,052 961,052 1,103,556 1,103,556 1,030,173 1,030,173(i) Outflowsrelatedtoderivative

exposuresandothercollateralrequirements 920,972 920,972 880,751 880,751 961,052 961,052 1,103,556 1,103,556 1,030,173 1,030,173

(ii) Outflowsrelatedtolossoffunding ondebtproducts – – – – – – – – – –

(iii) Creditandliquidityfacilities – – – – – – – – – –6 Othercontractualfundingobligations 18,396,489 18,396,489 18,497,955 18,497,955 18,472,725 18,472,725 18,918,109 18,918,109 16,774,854 16,774,8547 Othercontingentfundingobligations 167,779,992 8,389,000 161,872,433 8,093,622 154,296,557 7,714,828 140,186,730 7,009,336 131,318,663 6,565,9338 Total Cash Outflows 30,745,200 30,917,043 31,200,806 30,209,754 26,543,577Cash Inflows 9 Securedlending(e.g.reverserepos) – – – – – – – – – –10 Inflowsfromfully

performingexposures 23,471,932 11,735,966 24,651,242 12,325,621 22,125,809 11,062,905 23,710,573 11,855,287 21,684,662 10,842,33111 Othercashinflows 13,325,328 1,427,479 13,974,855 1,431,550 10,958,845 1,373,779 9,515,582 1,576,684 8,796,635 1,708,64512 Total Cash Inflows 36,797,260 13,163,445 38,626,097 13,757,171 33,084,654 12,436,684 33,226,155 13,431,971 30,481,296 12,550,976

Total Adjusted

Value

Total Adjusted

Value

Total Adjusted

Value

Total Adjusted

Value

Total Adjusted

Value21 TOTAL HQLA 21,074,942 19,230,329 20,665,853 18,630,470 15,866,11322 Total Net Cash Outflows 17,581,755 17,159,873 18,764,122 16,777,783 13,992,60123 Liquidity Coverage Ratio (%) 119.87% 112.07% 110.13% 111.04% 113.39%

*Higherof[25%ofTotalCashOutflows]or[TotalCashOutflowslessTotalCashInflows]

t) Risk Category wise Country Exposure ProvisionforcountryriskexposureintermsofRBICircularDBOD.BP.BC.71/21.04.103/2002-03datedJune17,2004isasfollows:


Risk Category Exposure (Net) as at March 31, 2019

Provision as at March 31, 2019

Exposure (Net) as at March 31, 2018

Provision as at March 31, 2018

Insignificant 37 – 412 –Low – – 17 –Moderate – – – –High – – – –VeryHigh – – – –Restricted – – – –Off-credit – – – –Total 37 – 429 –



21



u) Disclosure on Frauds (Amount Rs. in ‘000)Particulars 2018-19 2017-18Numberoffraudsreported(innumbers) 7,534 7,577AmountInvolved 164,403 211,546AmountWritten-Off 115,824 103,663AmountRecovered 48,579 107,883Quantumofunamortizedprovisiondebitedfromotherreserves – –

v) Unhedged Foreign Currency Exposure:Provisiontowardsunhedgedforeigncurrencyexposuresason31March2019isRs.147,467(‘000)[2017-18:Rs.112,777(‘000)]andthecapitalheldbytheBanktowards thisrisk isRs.469,182(‘000)[2017-18:Rs.352,523(‘000)]asperRBImastercircularDBR.No.BP.BC.2/21.04.048/2015-16dated01July2015onprudentialnormsonincomerecognition,assetclassificationandprovisioningpertainingtoadvances.

w) Divergence in the asset classification and provisioningRBIvideitscirculardatedApril18,2017,hasdirectedthatbanksshallmakesuitabledisclosures,wherevereither(a)theadditionalprovisioningrequirementsassessedbyRBIexceed15percentofthepublishednetprofitsaftertaxforthereferenceperiodor(b)theadditionalGrossNPAsidentifiedbyRBIexceed15percentofthepublishedincrementalGrossNPAsforthereferenceperiod,orboth.Forfinancialyear2017-18,RBIhasnotassessedanyadditionalprovisioningrequirementorGrossNPAsfortheBank.

x) Particulars of Accounts Restructured Under CDR Mechanism: NIL Under SME Debt Restructuring Mechanism: NIL Others:

(Amount Rs. in ‘000)2018-19 2017-18

Particulars Stan-dard

Sub Standard

Doubtful Loss Total Stan-dard

Sub Standard

Doubtful Loss Total

Restructured Accounts – Opening BalanceNo.ofBorrowers – – – – – – – – – –AmountOutstanding – – – – – – – – – –ProvisionThereon – – – – – – – – – –Fresh restructuring during the yearNo.ofBorrowers – 1 – – 1 – – – – –AmountOutstanding – 737,599 – – 737,599 – – – – –ProvisionThereon – 184,400 – – 184,400 – – – – –Upgrade to Restructured Standard CategoryNo.ofBorrowers – – – – – – – – – –AmountOutstanding – – – – – – – – – –ProvisionThereon – – – – – – – – – –Restructured Standard Advances cease to attract higher provision / risk weight and need to be shown as restructured standard advanceNo.ofBorrowers – – – – – – – – – –AmountOutstanding – – – – – – – – – –ProvisionThereon – – – – – – – – – –Downgrade of restructured accountsNo.ofBorrowers – – – – – – – – – –AmountOutstanding – – – – – – – – – –ProvisionThereon – – – – – – – – – –Write offs of restructured accountsNo.ofBorrowers – – – – – – – – – –AmountOutstanding – – – – – – – – – –ProvisionThereon – – – – – – – – – –Restructured Accounts – Closing BalanceNo.ofBorrowers – 1 – – 1 – – – – –AmountOutstanding – 737,599 – – 737,599 – – – – –ProvisionThereon – 184,400 – – 184,400 – – – – –



22



y) The Bank has no disclosure to make in respect of the following items as the relevant items are Nil(i) Investments : RepoTransactions

Non-SLRInvestmentPortfolioNonperformingNon-SLRInvestmentsMovementofprovisionsheldtowardsdepreciationinInvestmentsSaleandtransfersto/fromHTMcategory

(ii) Asset Quality : DetailsoffinancialassetssoldtoSecuritisation/Reconstruction CompanyforAssetReconstructionDetailsofnon-performingfinancialassetspurchased/soldUnsecuredAdvances:Assetsforwhichintangiblesecuritieshavebeen takenascollateralInvestmentinSecuritiesReceipts

(iii) AwardspassedbytheBankingOmbudsman(iv) Disclosurerelatingtosecuritisation(v) DrawdownfromReserves(vi) PenaltiesimposedbyReserveBankofIndia(vii) DiscontinuingOperations(viii) UnamortisedPensionandGratuityLiabilities

z) The Bank has no disclosure to make in respect of the following items as the relevant items are Not Applicable(i) Investments : InvestmentsinAssociates(ii) Derivatives : ForwardRateAgreements/InterestRateSwaps

ExchangeTradedInterestRateDerivativesDisclosureonriskexposureinderivativesCreditDefaultSwaps

(iii) LetterofComfortsissuedbytheBank(iv) Earningspershare(v) ConsolidatedFinancialStatements(vi) InterimFinancialReporting(vii) OverseasAssets,NPAsandRevenue(viii) Off-BalanceSheetSPVssponsored

2. Commission, exchange and brokerage (net) Commission,exchangeandbrokerageisnettedoffwiththeamountsharedwithaffiliatesonoverseasCardMemberspendonthe

Bank’smerchantandvolumerebatesamountingtoRs.3,204,800(‘000)[2017-18:Rs.2,519,064(‘000)].

3. Deferred Taxes InaccordancewithAS-22on‘AccountingforTaxesonIncome’issuedbyInstituteofCharteredAccountantsofIndia(ICAI),the

BankrecognizesDeferredTaxAssetsontimingdifferencestotheextentthatthereisavirtualcertaintysupportedbyconvincingevidencethatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscanberealized.AsofMarch31,2019,inviewoflackofvirtualcertaintysupportedbyconvincingevidencethatsufficienttaxableincomewouldaccrueintheimmediatefuture,asamatterofprudence,theBankhasdecidednottorecogniseNetDeferredTaxAssetsasonMarch31,2019.

ThemajorcompositionofDeferredTaxAssets(DTA)andDeferredTaxLiabilities(DTL)isasunder:(Amount in Rs. ‘000)

Particulars As atMarch 31, 2019

As atMarch 31, 2018

Deferred tax assets:ProvisionforBad&DoubtfulDebts 645,612 413,829ProvisionforEmployeeBenefits 153,860 102,287AccumulatedTaxableLosses 53,428 445,073Depreciationonfixedassets 62,019 66,570DeferredRent&Otherreserves 17,731 17,727Deferred tax liabilities NIL NIL



23



4. Segment Reporting ThesummaryofthesegmentalinformationoftheBankfortheYearended31stMarch,2019aregivenbelow-

(Amount in Rs. ‘000)Segmentation Banking operations Treasury Total Particulars 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18Segmentrevenue 17,984,296 14,965,884 1,419,725 1,042,298 19,404,021 16,008,182UnallocatedExpenses – – – – – –Segment result (15,003) 712,570 297,288 99,534 282,285 812,104 OperatingProfits/(Loss) 282,285 812,104 Income taxes – –Extraordinaryprofit/(loss) – –Net profit (loss) 282,285 812,104 Other information :Segmentassets 56,560,266 52,844,320 26,003,814 21,413,916 82,564,080 74,258,236Unallocatedassets (Taxesandaccumulatedlosses) 2,932,665 3,088,911Total assets 56,560,266 52,844,320 26,003,814 21,413,916 85,496,745 77,347,147Segmentliabilities 41,416,477 41,291,897 26,003,814 21,413,916 67,420,291 62,705,813Unallocatedliabilities (Taxes,CapitalandReserveandSurplus) 18,076,454 14,641,334Total liability 41,416,477 41,291,897 26,003,814 21,413,916 85,496,745 77,347,147Cost to acquire fixed assets 154,853 78,593 – – 154,853 78,593 Depreciation 111,661 118,495 – – 111,661 118,495

TheBankdoesnothaveanyoverseasoperationsandhencethereisnogeographicalsegmentreporting.5. Related Party Disclosures InthetermsoftheAccountingStandard18on‘RelatedPartyDisclosures’issuedbyInstituteofCharteredAccountantsofIndiaas

specifiedunderSection133ofCompaniesAct,2013readwithRule7oftheCompanies(Accounting)Rules,2014andtherelatedguidelineissuedbytheRBI,thedetailspertainingtorelatedpartiesareasunder:

Related Party Relationship:Sr. No. Relationship Party Name1. Parent-HeadOffice AmericanExpressBankingCorp.,NewYork.2. UltimateHoldingCompany AmericanExpressCompany3. SubsidiariesofUltimateHoldingCompany AmericanExpress(Malaysia)Sdn.Bhd.

AmericanExpress(Thai)Co.,Ltd.AmericanExpressAustraliaLtdAmericanExpressBusinessSolutions(India)PrivateLimitedAmericanExpressCompany(Mexico)SaDeCVAmericanExpressEuropeLimitedAmericanExpressGlobalBusinessTravelAmericanExpressIndiaPvtLtd.AmericanExpressInternational(NZ),Inc.AmericanExpressInternational(Taiwan),Inc.AmericanExpressInternational,Inc.AmericanExpressLimitedAmericanExpressServicesEuropeLimitedAmericanExpressServicesIndiaPvtLtdAmericanExpressTravelRelatedServicesCompany,Inc.AmexCanadaInc.LoyaltySolutionsandResearchPvtLtd

4. Subsidiaries/Associates/JointVentures –5. KeyManagementPersonnel** ManojAdlakhaasChiefExecutiveOfficer



24



TherelatedpartybalancesandtransactionsfortheyearendedMarch31,2019aresummarizedasfollows: (Amount in Rs. ‘000)

Particulars YearParent - Head Office

TotalAmerican Express Banking Corp, New YorkBorrowings 2018-19 9,500,000 9,500,000 2017-18 4,550,000 4,550,000Maximum Outstanding 2018-19 9,500,000 2017-18 4,550,000

(Amount in Rs. ‘000)Particulars Year Subsidiaries of Ultimate Holding Company

American Express India

Pvt Ltd.

American Express Limited

American Express

Services India Pvt Ltd

American Express

Travel Related Services

Company, Inc.

American Express Europe Limited

American Express

International, Inc.

Others Grand Total

Deposits 2018-19 19,390,000 – 430,000 – – – 360,000 20,180,000 2017-18 13,855,000 – 340,000 – – – 115,000 14,310,000Maximum Outstanding 2018-19 21,535,000 – 485,000 – 396,000 2017-18 17,025,000 – 410,000 – 200,000 Advances 2018-19 291,104 – 7,150 – – – 10,859 309,113 2017-18 297,145 – 3,468 – – – 6,429 307,042Maximum Outstanding 2018-19 475,170 – 22,719 – – – 48,087 2017-18 514,264 – 14,811 – – 30,007 Receivables 2018-19 – – – 12 – – 25 37 2017-18 – – – 316 – 96 17 429Payables 2018-19 556,499 – 143,726 471,311 157,459 16,663,863 259,700 18,252,558 2017-18 665,164 470,004 116,077 343,638 132,547 14,707,000 262,562 16,696,992Transfer of assets 2018-19 – – – – – – – – 2017-18 743 – – – – – – 743Interest Expense 2018-19 978,583 – 22,099 – – – 9,997 1,010,679 2017-18 709,514 – 15,359 – – – 10,056 734,929Payments by Related Party on Bank’s Behalf or Payment/Receipt by Bank on behalf of Related Party

2018-19 226,011 – 3,168 – – – 2,329 231,508

2017-18 158,583 – 1,637 – – – 980 161,200Revenue from Services Rendered

Commission, exchange and brokerage (gross)

2018-19 1,764 – 45 2,617,793 – 41 222 2,619,865

2017-18 1,807 – 18 2,198,635 – 610 42 2,201,111Less: Volume Rebate and Issuer Rate Payable

2018-19 – – – (1,736,761) (128,269) (6,877) (2,808) (1,874,715)

2017-18 – – – (1,377,510) (90,626) (3,256) (1,665) (1,473,057)Miscellaneous Income 2018-19 – – – 4,466 – 7 17 4,490

2017-18 42 – – 5,962 – 499 615 7,118Revenue from Services Rendered Total

2018-19 1,764 – 45 885,498 (128,269) (6,829) (2,569) 749,640

2017-18 1,849 – 18 827,087 (90,626) (2,147) (1,008) 735,173Cost of Services Received Business Support Cost 2018-19 1,553,241 – 1,381,749 1,008,747 – 35,988 352,473 4,332,198

2017-18 1,217,271 – 1,107,298 771,645 – 17,158 131,245 3,244,617Other expenditure 2018-19 – – – – – – 35,747 35,747

2017-18 – 526,998 – 3,748 – 321 26,197 557,264Rent, taxes and lighting 2018-19 81,931 – 1,518 – – – – 83,449

2017-18 63,404 – 380 – – – – 63,784Advertisement and Publicity

2018-19 – – – – – – 16,803 16,803

2017-18 – – – – – – 10,453 10,453Re-imbursements of cost to/from Related Party

2018-19 39,631 – – (395,249) – – – (355,618)

2017-18 16,581 – – (466,903) – – – (450,322)Cost of Services Received Total

2018-19 1,674,803 – 1,383,268 613,498 – 35,988 405,023 4,112,580

2017-18 1,297,256 526,998 1,107,678 308,490 – 17,479 167,895 3,425,796 NodisclosurehasbeenmadeinrespectofKeyManagementPersonnel,keepinginviewthesecrecyclausesandtheprovisionsofthe

RBIguidelines. #Payablesincludeamountwithrespecttosettlementswithoverseasgroupentitiesonaccountofspendsmadebyoverseas/Indian

cardmembersinIndia/outsideIndia.However,volumeofsuchtransactionsisnotconsideredfordisclosure.



25



6. Other Liabilities include:(Amount in Rs. ‘000)

Particulars 2018-19 2017-18ProvisionstowardsStandardAssets# 360,578 318,167CounterCyclicalProvisioningBuffer 88,500 88,500

#IncludesUnhedgedForeignCurrencyProvisionofRs.147,467(‘000)(2017-18:Rs.112,777(‘000))

7. Floating Provisions: TheBankhasnopolicyofmakingfloatingprovision.

8. Leases The Bank’s significant leasing arrangements are in respect of operating leases for commercial and residential premises. Lease

expenditureforoperatingleasesisrecognizedonastraight-linebasisovertheprimaryperiodoflease. (Amount in Rs. ‘000)

Particulars 2018-19 2017-18Futureminimumleasepaymentsundernon-cancellableOperatingleasesNotlaterthan1year 175,893 109,830Laterthan1yearandnotlaterthan5years 394,963 99,466Laterthan5years – –LeasepaymentsrecognizedintheProfitandLossAccountinrespectofoperatingleases 147,090 127,128

9. Provision, Contingent Liabilities and Contingent Assets Movementinprovisionformembershiprewardpoints:

(Amount in Rs. ‘000)Particulars 2018-19 2017-18Opening 2,113,141 1,726,029Additions 3,975,080 3,430,090Utilisations/Writebacks 3,368,937 3,042,978Closing Balance 2,719,284 2,113,141

Thebankestimatesprovisionforcardrewardpointsbyapplyinghistoricredemptionratesonpointseligibleforredemptionbyacardmember.

10. Taxes Theincometaxexpensescomprisethefollowing: (Amount in Rs. ‘000)

Particulars 2018-19 2017-18WealthTax – –DeferredIncometax(benefit)/expense – –Total – –

11. Description of contingent liabilitiesContingent Liabilities Brief DescriptionOtheritemsforwhichthebankiscontingentlyliable*

TheBankisapartytovariouslegalproceedingsanddirect/indirecttaxassessmentsinthenormalcourseofbusiness.TheBankdoesnotexpecttheoutcomeofanyoflegalproceedingstohaveamaterialadverseeffectontheBank’sfinancialcondition,resultofoperationsandcashflows.IncometaxmattersforwhichappealispendinghavingtaximpactofRs.1,197,150(‘000)[2017-18:Rs.792,488(‘000)]hasbeendisputedbybankandhencedisclosedascontingentliability.TheBankaspartofcertainservicecontractshasprovidedguaranteeswhichamounttoRs.2,780(‘000)[2017-18:Rs.23,280(‘000)].TheamountdepositedinDepositorEducationandAwarenessFundamountingtoRs.19,576(‘000)[2017-18:Rs.12,893(‘000)].

*AlsoreferSchedule12–ContingentLiabilities



26



12. Employee Benefits ThedisclosuresrequiredaspertherevisedAS15areasunder: BriefdescriptionofthePlans TheBankhasvariousschemesforlong-termbenefitssuchasprovidentfund,pension,andgratuityandleaveencashment.TheBank’s

definedcontributionplansareprovidentfundandemployees’pensionscheme(undertheprovisionsoftheEmployees’ProvidentFundsandMiscellaneousProvisionsAct,1952),andtheBankhasnofurtherobligationbeyondmakingthecontributions.TheBank’sdefinedbenefitplansincludespensionfordeferred/vestedpensioner(leftemployees),gratuityandleaveencashment.

(Amount in Rs. ‘000)A Charge to the Profit and Loss Account based on contributions:

2018-19 2017-18Providentfund 49,748 44,076Superannuation 867 1,080TOTAL 50,615 45,516

TheHon’bleSupremeCourtofIndia(“SC”)bytheirorderdatedFebruary28,2019,inthecaseofSuryaRoshaniLimited&othersv/sEPFO,setouttheprinciplesbasedonwhichallowancespaidtotheemployeesshouldbeidentifiedforinclusioninbasicwagesfor thepurposesof computationofProvidentFundcontribution. In lightof the same,witheffect from1stMarch2019, thePFcontributionbytheBankhasbeenchangedtoaflatamountofRs.1800/-permonthforallcolleagueswhosemonthlybasicwageislessthanRs.15,000/-.

Subsequently,areviewpetitionagainstthisdecisionhasbeenfiledandispendingbeforetheSCfordisposal.PendingdecisiononthesubjectreviewpetitionanddirectionsfromtheEPFO,furtherimpact,ifany,isnotascertainableandconsequentlynoeffecthasbeengivenintheaccounts.

(Amount in Rs. ‘000)B Contribution towards Pension for deferred / vested pensioners (left employees):

TheaboveemployeebenefitiscoveredunderPensionTrustandasdetailedunderParagraphIII9(b)ofSchedule18above.Pension: The components of net benefit expenses recognized in the Profit and Loss Account and Balance Sheet and the funded status for the pension benefit plan are summarised below:

As at March 31, 2019 As at March 31, 2018I Assumptions

MortalityRate(indeferment) LIC(1996-98)Ultimate LIC(1996-98)UltimateMortalityRate(Postretirement) LIC(1996-98)Ultimate LIC(1996-98)Ultimate

DiscountRate 7.30% 7.50% Rateofincreaseincompensation NotApplicable NotApplicable

Rateofreturn(expected)onplanassets 7.50% 7.50%As at March 31, 2019 As at March 31, 2018

II Changes in present value of obligationsDefinedBenefitObligationatbeginningoftheYear 37,026 41,096InterestCost 2,699 2,535CurrentServiceCost – –ActuarialLosses/(Gains) 320 2,106BenefitPayments (2,088) (8,711)

DefinedBenefitObligationatendoftheYear 37,957 37,026III Changes in fair value of plan assets

FairValueofPlanAssetsatbeginningoftheYear 63,027 68,346Expectedreturnonplanassets 4,650 4,799ActuarialGain/(Loss) (2,838) (1,407)

BenefitPayments (2,041) (8,711)FairValueofPlanAssetsatendoftheYear 62,798 63,027

IV Amounts to be recognised in the Balance Sheet DefinedBenefitObligationattheendoftheYear 37,957 37,026 FairValueofPlanAssetsattheendoftheYear 62,798 63,027 AmountnotrecognisedasanAsset – – SurplusAssets 24,841 26,001V Expense Recognised – –

ThePensionFundassetsareinvestedingovernmentsecurities,corporatebondsandothereligibleinvestments.



27



As at March 31, 2019 As at March 31, 2018

Percentage

GovernmentofIndiasecurities(CentralandState) 49.46 49.37HighqualitycorporateBonds(IncludingPublicSectorBonds) – –Equityshares – –Cash(IncludingSpecialDeposits) 49.88 48.08Others 0.66 2.55Total 100 100

(Amount in Rs. ‘000)

Experience AdjustmentsAs at March

31, 2019As at March

31, 2018As at March

31, 2017As at March

31, 2016As at March

31, 2015

DefinedBenefitObligationattheendoftheperiod (37,957) (37,026) (41,096) (35,522) (33,559)PlanAssetasattheendoftheperiod 62,798 63,027 68,346 72,666 70,747FundedStatus 24,841 26,001 27,250 37,144 37,188ExperienceGain/(Loss)adjust-mentsonplanliabilities (104) (2,854) (7,433) (584) (2,680)ExperienceGain/(Loss)adjust-mentsonplanassets (2,838) (1,407) (2,053) (2,150) (4,712)ActuarialGain/(Loss)duetochangeonassumptions (216) 748 (3,098) – (5,256)

(Amount in Rs. ‘000)C Contribution towards Gratuity:

TheaboveemployeebenefitiscoveredunderaGratuityTrustandasdetailedunderParagraphIII9(c)ofSchedule18above.

Gratuity: ThecomponentsofnetbenefitexpensesrecognizedintheProfitandLossAccountandBalanceSheetandthefundedstatusforgratuitybenefitplanaresummarisedbelow:

As at March 31, 2019 As at March 31, 2018I Assumptions

Mortality IndianAssuredLivesMortality(2006-08)

(modified)Ult.

IndianAssuredLivesMortality(2006-08)

(modified)Ult. DiscountRate 7.50% 7.50% Rateofincreaseincompensation 9.00% 9.00% Rateofreturn(expected)onplanassets 7.50% 7.50% Withdrawalrates Uptoage30-27%

age31-40-18%age41-50-7%

age51andabove-8%

Uptoage30-27%age31-40-18%age41-50-7%

age51andabove-8%II Changes in present value of obligations DBOatbeginningoftheYear 146,177 148,301 InterestCost 10,612 9,848 CurrentServiceCost 16,138 15,889

BenefitsPaid (15,421) (11,159) ActuarialLosses/(Gains)onobligation 10,472 (17,545)

Liabilitiesextinguishedonsettlements – – Liabilityreleasedduetoemployeetransfer

PlanAmendmentCostAcquisitionsCostDBOatendoftheYear

––

6,051174,029

–14829

146,177



28



As at March 31, 2019 As at March 31, 2018III Changes in fair value of plan assets FairValueofPlanAssetsatbeginningoftheYear 37,711 46,870 ExpectedReturnofPlanAssets 2,250 3,097 Contributions – – Benefitspaid (15,421) (11,159)

Assetsdistributedinsettlements – – Actuarialgain/(loss)onplanassets (1,277) (1,097) FairValueofPlanAssetsatendoftheYear 23,263 37,711IV Amounts to be recognised in the Balance Sheet PresentValueofDBOattheendoftheYear 174,029 146,177 FairValueofPlanAssetsatendoftheYear 23,263 37,711 Funded/(Unfunded)Status (150,766) (108,466) UnrecognisedPastServiceCosts – – NetAsset/(Liability)recognisedintheBalanceSheet (150,766) (108,466)V Expense Recognised CurrentServiceCost 16,138 15,889 InterestCost 10,612 9,848 ExpectedReturnonPlanAssets (2,250) (3,097) NetActuarial(Gain)/LossrecognisedfortheYear 11,749 (16,448)

PastServiceCost – 14 ExpenserecognisedintheP&LA/c 36,249 6,206

Theestimateoffuturesalaryincreases,consideredinactuarialvaluationtakeaccountofinflation,seniority,promotionandotherrelevantfactorssuchassupplyanddemandinemployeemarket.

TheGratuityFundassetsareinvestedingovernmentsecurities,corporatebondsandothereligibleinvestments. MajorcategoriesofPlanassetsasapercentageoftotalplanassets.

As at March 31, 2019 As at March 31, 2018 PercentageGovernmentofIndiasecurities(CentralandState) – –HighqualitycorporateBonds(IncludingPublicSectorBonds) – –Equityshares – –Cash(IncludingSpecialDeposits) 100.00 100.00Others – –Total 100.00 100.00

(Amount in Rs. ‘000)Experience Adjustments As at March

31, 2019As at March

31, 2018As at March

31, 2017As at March

31, 2016As at March

31, 2015DefinedBenefitObligationatend oftheperiod

(174,029) (146,177) (148,301) (125,572) (133,030)

PlanAssetasattheendoftheperiod 23,263 37,711 46,870 53,878 42,550FundedStatus (150,766) (108,466) (101,431) (71,694) (90,480)ExperienceGain/(Loss)adjustments onplanliabilities

(7,998) (844) 267 (2,601) 14,869

ExperienceGain/(Loss)adjustments onplanassets

(1,277) (1,097) (1,673) (464) (147)

ActuarialGain/(Loss)duetochange onassumptions

(2,474) 18,429 (7,891) – (26,139)

D Leave Encashment/Compensated AbsencesThe amount charged/(released) to Profit and Loss Account during the year towards Leave Encashment andcompensatedabsencesRs.(4,504)(‘000)(PreviousyearRs.9,090(‘000))The liability for leave encashment and compensated absences as on March 31, 2019 is Rs.104,122 (‘000) (PreviousYearRs.121,958(‘000)).



29



13. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006: TotheextentoftheinformationreceivedbytheBankfromitsvendors,thebelowarethetransactionswithsuppliersasdefinedunder

theMicro,SmallandMediumEnterprisesDevelopmentAct,2006duringthefinancialyear.(Amount in Rs. ‘000)

Particulars 2018-19 2017-181 Principalamountdueremainingunpaid – –2 Interestamountduethereonandremainingunpaid – –3 AmountofinterestpaidintermsofSection18oftheMSMEDAct2006 421 3184 Interestdueandpayable(undertheMSMEDAct2006)whichhavenot

beenpaid(coveringallpayments) 405 421

5 Theamountofinterestaccruedandremainingunpaidattheendoftheaccountingyear(i.e.includingamountbroughtforwardfrompreviousyear) 405 421

6 DetailsonpaymentsmadeinrespectofoutstandingasatSl.No.1above. – –

14. Details of fees / remuneration received in respect of Bancassurance business: (Amount in Rs. ‘000)

Particulars 2018-19 2017-18Others-IncomefromInsuranceCorporateAgencyBusiness–Forsellinglifeinsuranceproducts 1,941 1,765–Forsellingnon-lifeinsuranceproducts 103,346 83,481

15. Disclosures on Remuneration: Qualitative Disclosures BeingaBranchofaForeignBank, theBank doesnothaveanyRemunerationCommitteeforapprovaloftheManagerialRemuneration.

TheBank’scompensationstructureisinconformitywiththeprinciplesandpracticessetoutbytheFinancialStabilityBoard(FSB).Further,theBank’shasobtainedtheRBI’sapprovalfortheChiefExecutiveOfficer’s(CEO)remuneration.

Quantitative Disclosures ThequantitativedisclosurescovertheBank’sCEOandKeyRiskTakers.TheBank’sKeyRiskTakersincludetheCEO,Headof

BusinessUnitsandselectrolesinTreasuryandRisk.(Amount in Rs. ‘000)

No. Particulars 2018-19 2017-181 (i) Numberofemployeeshavingreceivedavariableremunerationaward

duringthefinancialyear.4 4

(ii) Totalamountofoutstandingdeferredremuneration,splitintocash,sharesandshare-linkedinstrumentsandotherforms.

– –

(iii) Totalamountofdeferredremunerationpaidoutinthefinancialyear – –

2 Breakdownofamountofremunerationawardsforthefinancialyeartoshowfixedandvariable,deferredandnon-deferred.FixedVariableDeferredNon-deferred

49,58939,815

–39,815

47,58732,653

–32,653

3 (i) Totalamountofoutstandingdeferredremunerationandretained remunerationexposedtoex-postexplicitand/orimplicitadjustments. – –

(ii) Totalamountofreductionsduringthefinancialyearduetoex-postexplicitadjustments. – –

(iii) Totalamountofreductionsduringthefinancialyearduetoex-postimplicitadjustments. – –

4 Retirals(PF,Gratuity,SA) 3,282 3,219 Variablepayincludedaboveisoncashbasisi.e.theyearinwhichthesameispaidout. Compensation forCEO is as approvedby theRBI andpaidby theBank to theCEO.Compensation forother risk takers is as

approvedbytheBank. ChargesforESOPs,issuedbytheultimateparentcompanytothekeyrisktakers,hasnotbeenconsideredforthedisclosurepurpose

asthereisnochargetoProfitandLossAccountoftheBank.



30



16. Disclosure on Corporate Social Responsibility (CSR)TheBankbelievesthatservingourcommunitiesisnotonlyintegraltorunningabusinesssuccessfully;itispartofourindividualresponsibilitiesascorporatecitizen.TheCSRcommitteewasformedinaccordancewiththeBank’sCSRpolicytocomplywiththeprovisionsoftheSection135oftheCompaniesAct,2013.Duringtheyear,theBankhascontributedanamountofRs.13,105(‘000).

(Amount in Rs. ‘000)S.no. Particulars 2018-19 2017-18A. Gross amount required to be spent by

theBankduringtheyear13,105 –

B. Amountspentduringtheyear: InCash YettoPaidinCash

Total InCash YettoPaidinCash

Total

(i) Construction/acquisition of any asset - – – – – –(ii) On purposes other than (i) above 13,105 – 13,105 – – –

17. Auditors’ Remuneration [excluding goods & service tax] (Amount in Rs. ‘000)

Particulars 2018-19 2017-18AsAuditors:– StatutoryAudit 3,500 2,820– TaxAudit 390 340– Certificates 400 340– OutofPocketExpenses CurrentyearAuditors PreviousyearAuditors

939–

–1,068

Total 5,229 4,568

18. Transfer PricingTheBankhasacomprehensivesystemofmaintenanceofinformationanddocumentsrequiredbytransferpricinglegislationundersection92-92FoftheIncomeTaxAct,1961.Themanagementisoftheopinionthatinternationaltransactionsareatarm’slengthsothattheabovelegislationwillnothavematerialimpactonthefinancialstatements,particularlyontheamountoftaxexpenseandthatofprovisionoftaxes.

19. Implementation of Indian Accounting Standards (IND AS)InJanuary2016, theMinistryofCorporateAffairs issued the roadmapfor implementationofnewIndianAccountingStandards(INDAS)forscheduledcommercialbanks,insurancecompaniesandnon-bankingfinancialcompanies(NBFCs).TheRBIhasalsoissuedacircularDBR.BP.BC.No.76/21.07.001/2015-16datedFebruary11th,2016advising that theBanks in Indiaare requiredto implementINDASfromApril1,2018.Subsequently,RBI in itspressrelease issuedon5thApril2018andvidenotificationRBI/2018-2019/146DBR.BP.BC.No.29/21.07.001/2018-19 datedMarch 22, 2019 has deferred the applicability of INDAS forScheduledCommercialBanks.BasedonRBIdirections, theBankhas formedaSteeringCommittee tooversee INDAS implementation.ThebankSubmittedProformaINDASfinancialstatementstotheRBIforthehalf-yearendedSeptember30,2016andquarterendedJune30,2017.Further,asperemailnotificationdatedJuly20th,2018,theBankisalsosubmittingProformaINDASfinancialstoRBIonquarterlybasiseffectivequarterendedJune2018.

20. Comparative figuresPreviousyearfigureshavebeenreclassifiedandregroupedwhereverconsiderednecessarytoconformtocurrentyear’spresentation.

SignaturetoSchedules1to18

ForKhimji Kunverji & Co. LLP Forandonbehalfof (formerlyKhimjiKunverji&Co–FRN:105146W) American Express Banking Corp.- India Branch CharteredAccountants

Gautam V. Shah Manoj Adlakha Partner ChiefExecutiveOfficerMembershipNo.F-117348 Vivek Sehgal FinancialController

Place:Mumbai Place:Gurugram Date:June25,2019 Date:June20,2019

financial statements american express banking corp. · 2020-01-26 · khimji kunverji & co llp...

Documents