Emirates NBD Bank (PJSC), India Branch (Scheduled Commercial Bank) · 2018-07-12 · 1 Emirates NBD...

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Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)

AuDItor’S rEPort oN thE FINANCIAl StAtEmENtS [under Section 30 of the Banking regulation Act, 1949]

toThe Chief Executive Officer Emirates NBD Bank (P.J.S.C) - India Branchreport on the Financial Statements

1 WehaveauditedtheaccompanyingfinancialstatementsoftheEmiratesNBDBank(P.J.S.C)-IndiaBranch(‘theBank’),whichcomprisetheBalanceSheetasatMarch31,2018andtheProfitandLossAccountandtheCashFlowStatementfortheyearthenendedandasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

management’s responsibility for the Financial Statements

2 TheBank’sManagementisresponsibleforthepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheBankinaccordancewiththeprovisionsofSection29oftheBankingRegulationAct,1949,accountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheCompaniesAct,2013(“theAct”)readwithRule7oftheCompanies(Accounts)Rules,2014andthecirculars,guidelinesanddirectionsissuedbyReserveBankofIndia(‘RBI’)fromtimetotime.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheBankandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s responsibility

3 Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.4 WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisions

oftheActandtheRulesmadethereunder.5 WeconductedourauditoftheBankinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.Thosestandardsrequirethatwecomplywithethical

requirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatements.6 Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’s

judgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheBank’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

7 Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononfinancialstatements.

opinion8 Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiven,thesaidfinancialsstatementstogetherwithnotesthereongivefullinformationrequiredby

theBankingRegulationAct,1949aswellastheCompaniesAct,2013,inthemannersorequiredforbankingcompaniesandgivetrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:(a) inthecaseoftheBalanceSheet,ofthestateofaffairsoftheBankasatMarch31,2018;(b) incaseoftheProfitandLossAccount,ofthelossoftheBankfortheyearendedonthatdate;(c) inthecaseoftheCashFlowStatement,ofthecashflowsoftheBankfortheyearendedonthatdate.

report on other legal and regulatory requirements9 TheBalanceSheetandProfitandLossAccountandtheCashFlowStatementhavebeendrawnupinaccordancewiththeprovisionsofSection29oftheBankingRegulationAct,

1949readwithSection133oftheCompaniesAct,2013readwithRule7oftheCompanies(Accounts)Rules,2014.

10 AsrequiredbySection30(3)oftheBankingRegulationAct,1949,wereportthat:

I. wehaveobtainedalltheinformationandexplanationwhich,tothebestofourknowledgeandbelief,werenecessaryforthepurposeofourauditandhavefoundthemtobesatisfactory;

II. thetransactionsoftheBank,whichhavecometoournoticehavebeenwithinthepowersoftheBank;andIII. Sincethebankishavingonlyonebranch,thequestiononreportingthenumberofbranchesauditedbyusandthemannerofauditthereondoesnotarise.

11 AsrequiredbySection143(3)oftheAct,wereportthat:(a) wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;(b) inouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheBanksofarasitappearsfromourexaminationofthosebooks;exceptthatthebackupofthe

booksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideofIndia,Refernote1ofSchedule17ofthefinancialstatements;

(c) theBalanceSheet,theProfitandLossAccountandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount;(d) inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)

Rules,2014insofarastheyapplytotheBank;(e) reportingrequirementpursuanttoprovisionofSection164(2)oftheCompaniesAct,2013arenotapplicableconsideringtheBankisabranchofEmiratesNBDBankPJSC,

DubaiwhichisincorporatedinUnitedArabEmirateswithlimitedliability;(f) WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheBankandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereport

in“AnnexureA”tothisreport;and(g) withrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandto

thebestofourinformationandaccordingtotheexplanationsgiventous:i theBankhasdisclosedtheimpact,ifany,ofpendinglitigationsonitsfinancialpositionsinitsfinancialstatementsasatMarch31,2018;ReferSchedule12andNote

1(XIX)ofSchedule18tothefinancialstatements;ii theBankhasmadeadequateprovision,asrequiredundertheapplicablelaworaccountingstandards,formaterialforeseeablelosses,ifany,onlong-termcontracts

includingderivativecontracts-ReferNote2(XIX)ofSchedule18tothefinancialstatements;iii theBankiscurrentlynotliabletotransferanyamounttotheInvestorEducationandProtectionFund;iv thedisclosurerequirementsasenvisagedinNotificationG.S.R308(E)datedMarch30,2017isnotapplicabletotheBank.

ForKhimji Kunverji & Co CharteredAccountants FRN:105146W

Vinit K Jain Partner(F-145911)

Mumbai June26,2018

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ANNExurE - A to thE AuDItorS’ rEPortreport on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofEmiratesNBDBank(P.J.S.C)-IndiaBranch(‘theBank’),asatMarch31,2018inconjunctionwithourauditofthefinancialstatementsoftheBankfortheyearendedonthatdate.

management’s responsibility for Internal Financial ControlsTheBank’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetoBank’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditor’s responsibilityOurresponsibilityistoexpressanopinionontheBank’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheBank’sinternalfinancialcontrolssystemoverfinancialreporting.

meaning of Internal Financial Controls over Financial reportingABank’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.ABank’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheBank;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheBankarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsoftheBank;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionoftheBank’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent limitations of Internal Financial Controls over Financial reportingBecauseof the inherent limitationsof internalfinancialcontrolsoverfinancialreporting, includingthepossibilityofcollusionor impropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

opinionAccordingtotheinformationandexplanationgiventous,inouropinion,theBankhasinallmaterialrespects,anadequate&effectiveinternalfinancialcontrolssystemoverfinancialreportingwithreferencetonatureandsizeofoperationscarriedoutbytheBankfortheyearendedMarch31,2018.,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheICAI;;exceptthatthebackupofthebooksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideofIndia,Refernote1ofSchedule17ofthefinancialstatements.

ForKhimji Kunverji & Co CharteredAccountants FRN:105146W

Vinit K Jain Partner(F-145911)

Mumbai June26,2018

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BAlANCE ShEEt AS oN 31 mArCh 2018

Particulars ScheduleAs at

31 march 2018 (INr '000s)

CAPItAl & lIABIlItIESCapital 1 6,540,758Reservesandsurplus 2 (171,707)Deposits 3 913,461Borrowings 4 2,967,303OtherLiabilitiesandProvisions 5 320,440

total 10,570,255

ASSEtSCashandBalanceswithReserveBankofIndia 6 174,013BalanceswithBanksandMoneyatCallandshortnotice

7 1,006,573

Investments 8 2,966,988Advances 9 5,782,725Fixedassets 10 329,597Otherassets 11 310,359total 10,570,255

ContingentLiabilities 12 7,880,755BillsforCollection -SignificantAccountingPoliciesandNotestoAccounts 17&18

SchedulesreferredtohereinformanintegralpartoftheFinancialStatements

AsperourattachedReportofevendate.

ForKhimji Kunverji & Co.CharteredAccountantsFirmRegistrationNo.105146W

ForEmirates NBD Bank (PJSC), IndiaBranch

Vinit K JainPartnerMembershipNo:F-145911

Sharad AgarwalChiefExecutiveOfficer,India

Place:MumbaiDate:26Jun2018


ProFIt AND loSS ACCouNt For thE YEAr ENDED 31 mArCh 2018Particulars Schedule For the Year ended

31 march 2018(INr '000s)

I. INComE InterestEarned 13 322,141 OtherIncome 14 5,572

total 327,713

II. ExPENDIturE InterestExpended 15 15,033 OperatingExpenses 16 451,450 ProvisionsandContingencies 18.1.XIX 32,937

total 499,420

III. ProFIt/(loSS) Netprofit/(Loss)fortheyear (171,707) Profit/(Loss)broughtforward -

total (171,707)

IV. APProPrIAtIoNS TransfertoStatutoryReserves - TransfertoCapitalReserves - TransfertoInvestmentReserveAccount - RemittancetoH.O.duringtheyear - TransfertosurplusretainedforCapitalAdequacy(CRAR)

-

Balance carried over to Balance Sheet (171,707)

total (171,707)

SchedulesreferredtohereinformanintegralpartoftheFinancialStatements

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CASh FloW StAtEmENt For thE YEAr ENDED 31 mArCh 2018Particulars For the year ended

31 march 2018INr (000's)

Cash Flow from operating Activities NetProfit/(Loss)asperProfit&LossStatement (171,707) Add:IncomeTaxProvision - Add:DeferredTax(Asset)/Liability 2,546 NetProfitbeforetaxationandextraordinaryitems (169,161)

Adjustments for: DepreciationonFixedAssets 70,609 (Profit)/LossonsaleofFixedAssets 4,063 Additions/(Write-back)ofprovisionforStandardAssets 23,131 ProvisiononInvestments 7,260

Operating profit before working capital changes (64,098) (Increase)/DecreaseinInvestments (2,966,988) (Increase)/DecreaseinAdvances (5,782,725) (Increase)/DecreaseinOtherAssets(Note1) (310,359) Increase/(Decrease)inDeposits 913,461 Increase/(Decrease)inOtherLiabilities&Provisions 287,502 Incometaxes(paid)/received -

Net Cash Flow generated from/(used in) operating Activities A (7,923,206)

Cash flows from investing activities Purchaseoffixedassets(Note1) (396,055) Proceedsfromsaleoffixedassets 495 (Increase)/DecreaseinCapitalworkinprogress (8,710)

Net Cash Flow generated from/(used in) Investing Activities B (404,269)

Cash flows from financing activities CapitalIntroduced(Note1) 6,540,758 Increase/(Decrease)inBorrowingsotherthanSub-ordinateddebt 2,967,303

Net Cash Flow generated from/(used in) Financing Activities C 9,508,061

Net increase/(decrease) in cash and cash equivalents (A + B +C) 1,180,586

Cash&Cashequivalentsatthebeginningoftheyear -CashandCashequivalentsattheendoftheyear(Note1) 1,180,586

Notes:CashandCashEquivalentsrepresentCashandBalanceswithReserveBankofIndia(AsperSchedule6) 174,013BalanceswithBanks&MoneyatCallandShortNotice(AsperSchedule7) 1,006,573

1,180,586

Note 1Details of Balances transferred from India Representative Office INr in '000sCapital 103,658FixedAssets(netofaccumulateddepreciation) 10,032OtherAssets 76,265Cash&BankBalances 17,361

AsperourattachedReportofevendate.

ForKhimji Kunverji & Co.CharteredAccountantsFirmRegistrationNo.105146W

ForEmirates NBD Bank (PJSC), IndiaBranch

Vinit K JainPartnerMembershipNo:F-145911

Sharad AgarwalChiefExecutiveOfficer,India



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SChEDulES FormING PArt oF FINANCIAl StAtEmENtS AS At mArCh 31, 2018

As at 31 march 2018

(INr '000s)

SChEDulE 1 - CAPItAl(i) AmountbroughtinbyBankbywayofCapital AsperLastBalanceSheet - Add:Capitalinfusionduringtheyear 6,540,758 ReferSchedule18.1.I total 6,540,758

(ii) AmountofdepositkeptwiththeReserveBankofIndia undersection11(2)(b)oftheBankingRegulationAct,1949 2,000

SChEDulE 2 - rESErVES & SurPluSI Statutory reserve AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount -

total -

II Capital reserve AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount -

total -

III Surplus retained For Capital Adequacy (CrAr) AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount - total -

IV Investment reserve Account (IrA) AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount -

total -

V Balance In Profit And Loss Account AsperLastBalanceSheet - Add:TransferfromProfit&LossAccount (171,707)

total (171,707)

Grand total (171,707)

SChEDulE 3 - DEPoSItSI Demand Deposits (i) FromBanks 556 (ii) FromOthers 558,563

559,119

II Saving Bank Deposits 42,299

III term Deposits (i) FromBanks - (ii) FromOthers 312,043

312,043total (I + II + III) 913,461 (i) DepositsofBranchesinIndia 913,461 (ii) DepositsofBranchesoutsideIndia -

total 913,461

SChEDulE 4 - BorroWINGSI Borrowings in India (i) ReserveBankofIndia 1,160,000 (ii) OtherBanks - (ii) Otherinstitutionandagencies -

1,160,000

II Borrowings outside India (i) SubordinatedDebtfromHeadOffice - (ii) OtherBanks* 1,807,303

*includesBAFborrowingfromHeadOffice 1,807,303

total (I + II) 2,967,303

SecuredborrowingsincludedinI&IIabove -

As at 31 march 2018

(INr '000s)

SChEDulE 5 - othEr lIABIlItIES AND ProVISIoNSI BillsPayable -II Inter-OfficeAdjustment(Net) -III InterestAccrued 6,249IV DeferredTaxLiability(Net) 2,546V Others(includingprovisions) 311,645

total 320,440

SChEDulE 6 - CASh AND BAlANCES WIth rESErVE BANK oF INDIAI Cash in hand 1,893 (includingforeigncurrencynotes)II Balances with reserve Bank of India (i) InCurrentAccount 172,120 (i) InOtherAccount -

total (I + II) 174,013

SChEDulE 7 - BAlANCES WIth BANKS & moNEY At CAll AND Short NotICE

I In India (i) BalanceswithBanks (a) InCurrentAccount 16,167 (b) InOtherDepositAccount 980,000 (ii) MoneyatCallandShortNotice (a) WithBanks - (b) WithOtherInstitutions -

996,167II outside India (i) InCurrentAccount 10,406 (ii) InOtherDepositAccounts - (iii) MoneyatCallandShortNotice -

10,406

total (I + II) 1,006,573

SChEDulE 8 - INVEStmENtSI Investments in India in (i) Governmentsecurities(*) 2,386,302 (ii) Otherapprovedsecurities - (iii) Shares - (iv) Debenturesandbonds - (v) Subsidiaries/JointVentures - (vi) Others 580,686

2,966,988II Investments outside India -total (I + II) 2,966,988III Investments in IndiaGrossValue 2,974,248Less:-ProvisionfordepreciationonInvestments (7,260)Net Value 2,966,988

* includesSecurities keptwithCCILasmargin for securities segmentofbookvalueofRs.84,124(in000s);forCBLOsegmentbookvalueofRs.NIL;forForexsegmentbookvalueofRs.19,096(in000s)&withRBIundersection11(2)(b)(ii)ofBankingRegulationAct,1949ofFaceValueofRs.NIL

SChEDulE 9 - ADVANCES

A (i) BillsPurchasedanddiscounted 5,713,725 (ii) Cashcredits,Overdrafts&Loans - (iii) TermLoans 69,000

total 5,782,725

B (i) Securedbytangibleassets* 69,000 (ii) CoveredbyBank/GovernmentGuarantees - (iii) Unsecured 5,713,725 *includesadvancesagainstbookdebts

total 5,782,725

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As at 31 march 2018

(INr '000s)

C I Advances in India (i) PrioritySector 1,881,102 (ii) PublicSector - (iii) Banks - (iv) Others 3,901,623

Sub-total 5,782,725

II Advances outside India -

total (I + II) 5,782,725

SChEDulE 10 - FIxED ASSEtS

I Premises (includes leasehold improvements) Atbookvalue Beginningoftheyear* 5,347 Additionsduringtheyear 72,618 Deductionsduringtheyear (5,347)

72,618 Depreciationtodate Beginningoftheyear* 1,534 Additionsduringtheyear 11,014 Deductionsduringtheyear (1,655)

10,893

total (I) 61,725

II other Fixed Assets (includingFurniture&Fixtures) Atbookvalue Beginningoftheyear* 6,978 Additionsduringtheyear 313,403 Deductionsduringtheyear (928)

319,453

Depreciationtodate Beginningoftheyear* 759 Additionsduringtheyear 59,595 Deductionsduringtheyear (62)

60,292

total (II) 259,162

III Capital work in progress 8,710

total (III) 8,710

total (I + II + III) 329,597*representsassetstransferredfromIndiaRepresentativeoffice

SChEDulE 11 - othEr ASSEtS

I Inter-OfficeAdjustment(Net) -II Interestaccrued 118,147III Taxpaidinadvance/taxdeductedatsource(netofprovisions)

-

IV DeferredTaxAssets(Net) -V Stationeryandstamps -VI Others 192,212

total 310,359

SChEDulE 12 - CoNtINGENt lIABIlItIES

I Claimsagainstthebanknotacknowledgedasdebts -II Liabilityforpartlypaidinvestments -III Liabilitiesonaccountofoutstandingforwardexchangecontracts

6,051,301

IV Liabilitiesonaccountofoutstandingderivativecontracts -V Guaranteesgivenonbehalfofconstituents: a) InIndia 1,740,220 b) OutsideIndia 655VI Acceptances,endorsementsandotherobligations 88,579VII OtheritemsforwhichtheBankiscontingentlyliable -

total 7,880,755

For the Year ended 31 march 2018

(INr '000s)

SChEDulE 13 - INtErESt EArNEDI Interest/DiscountonAdvances/Bills 77,829II IncomeonInvestment 83,871III InterestonbalancewithReserveBankofIndiaandOtherinter-bankfunds

160,441

IV Others -

total 322,141

SChEDulE 14 - othEr INComE

I Commission,ExchangeandBrokerage 3,700II Profit/(Loss)onsaleofInvestments(net) -III Profit/(Loss)onsaleofassets(net) (4,063)IV Profit/(Loss)onForeignExchangeTransaction(Net) 4,682V Incomeearnedbywayof dividends, etc. fromsubsidiaries,

companies,jointventureabroad/inIndia-

VI MiscellaneousIncome* 1,253 (*includesprocessingfees)total 5,572

SChEDulE 15 - INtErESt ExPENDED

I InterestonDeposits 6,831II InterestonReserveBankofIndia/Inter-Bankborrowings 8,202III Others -total 15,033

SChEDulE 16 - oPErAtING ExPENSES

I Paymenttoandprovisionsforemployees 174,397II Rent,TaxesandLighting 66,834III Printingandstationery 1,074IV AdvertisementandPublicity -V DepreciationonBank'sProperty 70,609VI Directors'Fees,AllowancesandExpenses -VII Auditors'FeesandExpenses 800VIII LawCharges 3,370IX Postage,Telegrams,Telephoneetc. 4,289X RepairandMaintenance 7,302XI Insurance 2,751XII HeadOfficeCharges 30,096XIII OtherExpenditure 89,928

total 451,450

SChEDulE 17: SIGNIFICANt ACCouNtING PolICIES1. BACKGrouND Theaccompanyingfinancialstatementsfortheyearended31March2018comprisethe

accountsoftheIndianBranchofEmiratesNBDBankPJSC(referredtoas‘theBank’)whichisabankingcompanyincorporatedinUAEwithlimitedliability.On17October2016,theBank’sparentcompany,EmiratesNBDBank(PJSC),receivedtheapprovaloftheReserveBankofIndia(‘RBI’)foropeningthemaidenBankBranchwithinoneyeartherefrom.Theassets&liabilitiesofIndiaRepresentativeOfficeweretransferredtotheBankwitheffectfrom1April2017.Thefinancialstatementspresentedhereinpertaintotheyearstartingfrom1April2017till31March2018.Therefore,thereisnocomparativeinformationforthepreviousyear.TheBankhasmaintainedthebooksofaccountsandotherbooksandpapersintheelectronicmode,periodicbackupofwhichhavebeenmaintainedonserversphysicallylocatedoutsideofIndia.RBIapprovalisinplaceforhostingtheserversfromUAE.

2. BASIS oF PrEPArAtIoN The financial statements have been prepared in accordancewith requirements

prescribedundertheThirdSchedule(FormAandFormB)oftheBankingRegulationAct,1949.TheaccountingandreportingpoliciesoftheBankusedinthepreparationofthesefinancialstatementsconformtoGenerallyAcceptedAccountingPrinciplesinIndia(IndianGAAP),thecircularsandguidelinesissuedbytheReserveBankofIndia(RBI)fromtimetotime,AccountingStandards(AS)specifiedundersection133oftheCompaniesAct2013,readtogetherwithRule7oftheCompanies(Accounts)Rules2014andCompanies(AccountingStandards)AmendmentRule,2016totheextentapplicableandpracticesgenerallyprevalentinthebankingindustryinIndia.

TheBankfollowsaccrualmethodofaccounting(exceptwhereotherwisestated)andhistoricalcostconvention.

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3. uSE oF EStImAtES The preparation of the financial statements requires themanagement tomake

estimates and assumptions that affect the reported amounts of assets, liabilities,(includingcontingentliabilities)asatthedateofthefinancialstatements,revenueandexpenseduringtheperiod.Althoughtheseestimatesarebaseduponmanagementbestknowledgeofcurrenteventsandactions,actualresultscoulddifferfromthoseestimatesandthesedifferencesarerecognisedprospectively incurrentandfutureperiods.

4. SIGNIFICANt ACCouNtING PolICIES 4.1. Investments Classification

InaccordancewithRBIguidelines,allinvestmentsareclassifiedintothefollowingcategories,basedontheintentatthetimeofacquisition● HeldtoMaturity(HTM),● AvailableforSale(AFS)and● HeldforTrading(HFT)

UndereachofthesecategoriestheinvestmentportfolioisfurtherclassifiedinaccordancewithRBIdisclosureguidelinesintosub-categoriesof:● Governmentsecurities,● Otherapprovedsecurities,● Shares,● DebenturesandBonds,● Subsidiaries/Jointventuresand● Others.

Shifting,ifanybetweenthecategoriesisdoneinaccordancewithRBIguidelines.

TheBankfollowssettlementdatemethodforaccountingofitsinvestments.

Acquisition CostIndeterminingthecostofinvestment,● Brokerage,commission,etc.paidatthetimeofpurchase/saleischarged

totheProfit&LossAccount.● Brokenperiodinterestpaidatthetimeofacquisitionofthesecurityischarged

totheProfit&LossAccount.● CostofinvestmentsisbasedonFirstinFirstoutmethod.

Valuation● InvestmentsheldundertheAFSandHFTcategoriesaremarkedtomarket

periodically at the price as declared byPrimaryDealersAssociation ofIndia jointlywithFixedIncomeMoneyMarketandDerivativesAssociation(“FIMMDA”).Securitiesarevaluedscrip-wiseanddepreciation/appreciationisaggregatedforeachsub-category.Netdepreciation,ifany,isprovidedforandnetappreciation,ifany,isignored.Netdepreciationrequiredtobeprovidedforinanyonesub-categoryisnotreducedonaccountofnetappreciationinanyothersub-category.Consequenttorevaluation,thebookvalueoftheindividualsecurityisnotchanged.

● Treasury Bills, Certificate of Deposits andCommercial Papers beingdiscountedinstrumentsarevaluedatcarryingcost.

● Investmentheldunder theHTMcategoryarecarriedat theiracquisitioncostandanypremiumoverthefacevalue,paidonacquisition,isamortizedonastraightlinebasisovertheremainingperiodtomaturity.Whereintheopinionofthemanagement,adiminutionotherthantemporaryinthevalueof investmentsheldunderHTMhastakenplace,suitableprovisionsaremade.

● TheBankundertakesshortsaletransactionsinCentralGovernmentdatedsecuritiesinaccordancewithRBIguidelines.Theshortpositionismarkedtomarketandloss,ifany,ischargedtotheProfitandLossaccountwhilegain, ifany, is ignored.Profit/Lossonsettlementof theshortposition isrecognizedintheProfitandLossaccount.

● Non-performing investments are identified and depreciation/provisionaremade thereonbasedon theRBIguidelines.Basedonmanagementassessmentofimpairment,theBankmayadditionallycreateprovisionoverandabove theRBIguidelines.Thedepreciation/provisiononsuchnon-performinginvestmentsarenotsetoffagainsttheappreciationinrespectofotherperformingsecurities.Interestonnon-performinginvestmentsisnotrecognizedintheProfitandLossaccountuntilreceived.

Disposal of Investments Profit/Lossonsaleofinvestmentsundertheaforesaidthreecategoriesaretaken

to theProfit&Lossaccount.Theprofit fromsaleof investmentsunderHTMcategoryifany,netoftaxesandtransferstostatutoryreserveissubsequentlyappropriatedto“CapitalReserve”.

repurchase (repo) and reverse repurchase transactions RepoandReverseRepo transactions, includingLiquidityAdjustmentFacility

(LAF)termrepowithRBIandCollateralisedLendingandBorrowingObligations(CBLO)enteredwithClearingCorporationofIndiaLimited(CCIL)areconsideredascollateralisedlendingandborrowingtransactions.

CoststhereonareaccountedforasinterestexpenseandRevenuesthereonareaccountedasinterestincome.

4.2. Advances Advances are classified as performing and non-performing basedon extant

prudentialnorms for income recognition,assetclassificationandprovisioningissuedbyRBI.

SpecificloanlossprovisionsinrespectofNon-PerformingAdvances(NPAs)ismadeonthebasisoftheprovisioningrequirementsundertheprudentialnormsaslaiddownbytheRBI,andisdeductedfromadvances.Furtheranyadditionalprovisionsarebasedonmanagement’sassessmentofthedegreeofimpairmentofadvances.

TheBankmaintains general provision for standard assets including creditexposurescomputedusingtheCurrentExposureMethodoninterestrateandforeignexchangederivativecontractsasstipulatedbyRBI.Theprovision forstandardassetsisincludedinSchedule5underOtherLiabilities.

Inadditiontotheprovisionsrequiredaccordingtotheassetclassificationstatus,provisioningisdoneforindividualcountryexposures(otherthanforhomecountryexposure).Countries are classified into risk categories as perExportCreditGuaranteeCorporationguidelinesandprovisioningisdoneasperRBIguidelinesinrespectofcountries’wherethenetfundedexposureisonepercentormoreoftheBank’stotalassetsandincludedunder‘OtherLiabilitiesandProvisions’.

ForentitieswithUnhedgedForeignCurrencyExposure(UFCE),provisionismadeinaccordancewiththeguidelinesissuedbyRBI,whichrequirestoascertaintheamountofUFCE,estimatetheextentoflikelylossandestimatetheriskinessofun-hedgedposition.ThisprovisionisclassifiedunderSchedule-5OtherLiabilitiesinthebalancesheet.

4.3. Property, Plant and Equipment (Fixed Assets) and Depreciation Fixedassetsarestatedathistoricalcost,netofaccumulateddepreciationand

accumulated impairment losses, if any.The cost comprises purchase price,borrowingcostsifcapitalizationcriteriaaremetanddirectlyattributablecostofbringingtheassettoitsworkingconditionfortheintendeduse.Anytradediscountsandrebatesaredeductedinarrivingatthepurchaseprice.

Gainsorlossesarisingfromderecognizingoffixedassetsaremeasuredasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognizedintheprofitandlossaccountwhentheassetisderecognized.

Depreciationonfixedassets isprovidedasper thestraight-linemethod fromthemonthofadditionovertheestimatedusefullivesoftheassetasprescribedunderpart“C”ofscheduleIIoftheCompaniesAct,2013orasestimatedbythemanagement.

The useful lifemarkedwith *beloware different than those specified underScheduleIIoftheCompaniesAct,2013.Themanagementbelievesthatusefullife of FixedAsset currently considered for thepurposeof depreciation fairlyreflectsitsestimateofusefullivesandresidualvalueoffixedassets.

Themanagementhasestimated,assessedandhasusedthefollowingusefullivestoprovidedepreciationonitsfixedassets:

Asset Category useful lives estimated by the management (years)

Equipment 5years

ComputersHardware(excludingPC) 4years

PCAndLaptop 3years

ComputerSoftware 4years

ComputerSoftware–StrategicAssets* 7years

Furnitureandfixtures 5years

BankVehicles 3years

LeaseholdImprovements Overthelifeofthelease

Depreciationonassetssoldduringtheyearischargedtotheprofitandlossaccountuptothemonthimmediatelyprecedingthedateofsale.

AssetsotherthanFurnitureandLeaseholdImprovementscostinglessthanINR175,000(AED10,000)arefullychargedtotheProfit&LossAccountintheyearofpurchase.Ifanasset(value<INR175,000)isanintegralpartofalargersystemitwillbecapitalisedasacomponentofthatsystem.ComputerSoftwareotherthanStrategicAssetscostingbetweenINR175,000(AED10,000)andINR6,500,000(AED350,000)havebeendepreciatedat100%intheyearofpurchase.

4.4. Impairment of Assets Thecarryingamountsofassetsarereviewedateachbalancesheetdateifthereis

anyindicationofimpairmentbasedoninternal/externalfactors.Animpairmentlossisrecognizedwheneverthecarryingamountofanassetexceedsitsrecoverableamount.Therecoverableamountisgreaterofasset’snetsellingpriceandvalueinuse.Afterimpairment,depreciationisprovidedontherevisedcarryingamountoftheassetsoveritsremainingusefullife

4.5. Foreign Exchange transactions MonetaryforeigncurrencyassetsandliabilitiesoutstandingattheBalanceSheet

datearetranslatedtoIndianRupeesatspotratesnotifiedbytheForeignExchange

8


DealersAssociationofIndia(‘FEDAI’).Allprofits/lossesresultingfromtheyearendrevaluationsarerecognisedintheProfit&LossAccount.

IncomeandexpensesaretranslatedtoIndianRupeesattheratesprevailingonthedateofthetransactions.

OutstandingforwardexchangecontractsandspotexchangecontractsarerevaluedatyearendexchangeratesnotifiedbyFEDAIforspecifiedmaturitiesand at interpolated rates for contract of interimmaturities. The resultinggainsorlossesonrevaluationareincludedintheProfit&LossAccountinaccordancewithRBI/FEDAIguidelines.ThenetunrealisedprofitsorlossesarereflectedintheBalanceSheetunderOtherAssetsorOtherLiabilitiesrespectively.

Contingent liabilities on account of foreign exchange contracts, guarantees,acceptances, endorsements and other obligations denominated in foreigncurrenciesaredisclosedinIndianRupeesatspotratesofexchangenotifiedbyFEDAIasatthereportingdate.

4.6. Employee benefits Gratuity TheBankhasadefinedbenefitplanforpost-employmentbenefitintheformof

gratuityforallitsemployees.IntermsoftherevisedAccountingStandard-15onRetirementBenefits,theBankhasmadeaprovisiontowardsGratuitybasedonanactuarialvaluationdonebyanindependentactuaryasattheyearend,usingtheProjectedUnitCreditMethod.TheGratuityplanisnotfundedbytheBank.ActuarialgainsandlossesarerecognizedinfullintheperiodinwhichtheyoccurinthestatementofProfitandLoss.

Provident Fund

The Bank contributes to a recognised provident fund (EPFO). ThesecontributionsareaccountedforonanaccrualbasisandrecognisedinProfit&LossAccount.

leave Salary TheBankdoesnothaveapolicyofencashingunavailedleaves,exceptatthe

timeof separation of an eligible employee.TheBankmakes a provision foraccruedcompensatedabsencesbasedonactuarialvaluationascarriedoutbyanindependentactuary,usingtheProjectedUnitCreditMethodattheyear-end.Actuarialgains/lossesareimmediatelytakentotheprofitandlossaccountandarenotdeferred.

4.7. lease Accounting Leaseswherethelessoreffectivelyretainssubstantiallyalltherisksandbenefitsof

ownershipovertheleasetermareclassifiedasoperatingleases.LeasepaymentsforassetstakenonoperatingleasearerecognizedasanexpenseintheProfitandLossAccountonastraight-linebasisovertheleaseterm.

4.8. revenue recognition Revenueisrecognizedtotheextentthatitisprobablethattheeconomicbenefits

willflowtotheBankandtherevenuecanbereliablymeasured.InterestincomeisrecognizedintheProfit&LossAccountonanaccrualbasis,exceptinthecaseofnon-performingassetswhereitisrecognizeduponrealizationasperRBInorms.

CommissiononGuaranteesandLetterofCreditsissuedandLoanProcessingFeesarerecognisedupfront.Feesforservicesarerecognizedatthetimetheservicesarerenderedandabindingobligationtoreceivethefeeshasarisen.

Incomeondiscountedinstrumentsisrecognizedoverthetenureoftheinstrumentonastraightlinebasis.

4.9. taxation Incometaxcomprisescurrenttaxprovisionandthenetchangeinthedeferred

taxassetorliabilityintheyear.

Deferredtaxassetsandliabilitiesarisingonaccountoftimingdifferencesarerecognised in theProfit&LossAccount and the cumulativeeffect thereof isreflectedintheBalanceSheet.Deferredtaxassetsandliabilitiesaremeasuredusingtheenactedorsubstantiallyenactedtaxratesatthebalancesheetdate.TheeffectondeferredtaxassetsandliabilitiesofachangeintaxratesisrecognisedintheProfit&LossAccountintheperiodofchange.

Deferredtaxassetsarerecognizedonlytotheextentthereisreasonablecertaintythattheassetscanberealizedinfuture,exceptincaseofunabsorbeddepreciationorcarriedforwardlossundertaxationlawswhicharerecognizedonlytotheextentthatthereisvirtualcertaintyofrealizationofsuchassets.

Deferredtaxassetsarereviewedandreassessedateachbalancesheetdateandappropriatelyadjustedtoreflecttheamountthatisreasonably/virtuallycertaintoberealized.

4.10. Cash & Cash equivalents

Cashandcashequivalentsincludecashinhand,balanceswithRBI,balanceswithotherbanks/institutionsandmoneyatcallandshortnotice(includingtheeffectofchangesinexchangeratesoncashandCashequivalentsinforeigncurrency.

4.11. Accounting for Provisions, Contingent liabilities and Contingent Assets

InAccordancewithAS - 29 relating toProvisions,Contingent Liabilities andContingentAssets,theBankrecognizesprovisionsonlywhenithasapresentobligationasaresultofapasteventthatrequiresthatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandwhenareliableestimatecanbemadeoftheamountoftheobligation.

Noprovisionisrecognizedandadisclosureofcontingentliabilityismadewhen:

● there is a possible obligation thatmay arise frompast events and theexistence of whichwill be confirmed only by the occurrence or non-occurrenceofoneormoreuncertain futureeventswhicharenotwhollywithinthecontroloftheBank;or

● anypresentobligationthatarisesfrompasteventswhereitisnotprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationorareliableestimateoftheamountoftheobligationcannot bemade. Such obligations are assessed continually and onlythat part of theobligation forwhichanoutflowof resourcesembodyingeconomicbenefitsisprobableisprovidedforexceptintheextremelyrarecircumstanceswherenoreliableestimatecanbemade.

ProvisionsarereviewedateachBalanceSheetdateandadjusted toreflect thecurrentbestestimate.

Contingentassetsarenotrecognisedinthefinancialstatements.

SChEDulE 18: NotES FormING PArt oF thE FINANCIAl StAtEmENtS For thE YEAr ENDED 31 mArCh 2018

1. StAtutorY DISCloSurES IN tErmS oF rBI GuIDElINES ArE AS uNDEr:I. CAPItAl:Additiontothecapitalincludesstart-up(assigned)capitalbroughtinasperReserveBankofIndiaMasterCircularRBI/2013-14/77DBOD.No.BAPD.BC.7/22.01.001/2014-15datedJuly1,2014andamounttakenoverfromerstwhileRepresentativeOfficeofEmiratesNBDBank(PJSC)inIndiaINR.103,658(‘000s).

AspertheRBIguidelinesonCapitaltoRiskWeightedAssetsRatio(CRAR)issued,BanksarerequiredtocomputetheircapitalrequirementunderBaselIIIeffectiveJune30,2013.TheCRARasperBASELIIIis125.89%

(Amountin‘000s)

Particulars 2017-18

CommonEquityTier1Capitalratio(%) 125.42%

CapitalAdequacyRatio(TierICapital) 125.42%

CapitalAdequacyRatio(TierIICapital) 0.47%

CRAR% 125.89%

Percentage of the shareholding of the Government of India innationalizedbanks Nil

AmountofEquitycapitalraised(CapitalFundsfromH.O) 65,40,758

AmountofadditionalTier1capitalraised;ofwhichPNCPS:PDI:

Nil

AmountofTier2capitalraisedofwhichDebtcapitalinstrument:PreferenceSharecapitalinstrument:[PerpetualCumulativePreferenceShares (PCPS)/Redeemable Non-Cumulative Preference Shares(RNCPS)/RedeemableCumulativePreferenceShares(RCPS)]

Nil

II. INVEStmENtS: a. Value of Investments: (Amountin‘000s)

Particulars 2017-18GrossvalueofInvestments* 29,74,248

Provisionfordepreciation* (7,260)

NetValueofInvestments* 29,66,988

* TheBankhasnotmadeanyinvestmentoutsideIndia

b. movement of Provisions held towards depreciation on investments: (Amountin‘000s)

Particulars 2017-18

OpeningBalance -

Add:Provisionsmadeduringtheyear 7,260

Less:Write-off/write-backofexcessprovisionsduringtheyear -

ClosingBalance 7,260

9


III. rEPo/rEVErSE rEPo trANSACtIoNS (Including liquidity Adjustment Facility):

(Amountin‘000s)

Particulars

minimum outstanding during the

Year

maximum outstanding during the

Year

Daily Average outstanding during the

Year

As on 31 march 2018

Securitiessoldunderrepo - 11,59,600 2,69,219 11,59,600

i. GovernmentSecurities - 11,59,600 2,69,219 11,59,600

ii. CorporateDebtSecurities - - - -

Securitiespurchasedunderreverserepo - 20,36,350 5,55,014 -

i. GovernmentSecurities - 20,36,350 5,55,014 -

i. CorporateDebtSecurities - - - -

Theaboveworkingsarebasedonthefacevalueofrepo/reverserepodeals.

IV. NoN Slr INVEStmENtS PortFolIo: a. Issuer Composition of Non Slr Investments: (Amountin‘000s)

Sr. No Issuer Amount

Extent of private

placement

Extent of below

investment grade

securities

Extent of unrated

securities

Extent of unlisted

securities

1Publicsectorundertakings(PSUs)

-- - - -

2 Financial Institutions(FIs) 5,80,686 - - - -

3 Banks - - - - -

4 PrivateCorporate - - - - -

5 Subsidiaries/JointVentures

- - - - -

6 Others - - - - -

7Provisionheldtowardsdeprecation

- - - - -

Total 5,80,686 - - - -

b. Non Performing Non Slr Investments: TherearenoNonPerformingNon-SLRinvestmentsduringtheyearended31

March2018.

V. SAlE AND trANSFErS to/From htm CAtEGorY Therewerenosaleand transfer to/fromHTMcategoryduring theyearended31March2018.

VI. DErIVAtIVES a. Forward rate Agreement/Interest rate Swaps outstanding: TheBankhadnotentered intoForwardRateAgreement/Interest rateSwap

duringtheyearended31March2018.

Natureandtermsofforwardrateagreements: Outstandingasat31.03.18:Nil

b. Exchange traded Interest rate Derivatives TheBankhadnotenteredintoExchangeTradedInterestRateDerivativesduring

theyearended31March2018.

c. Currency Futures Thebankhadnotdealtinexchangetradedcurrencyforwards(futures)during

theyearended31March2018.

d. Disclosure on risk Exposure in Derivatives: Therearenoderivativestransactionsduringtheyearandhencethedisclosure

isnotapplicable.

e. unhedged/uncovered foreign currency exposure TheBanks’foreigncurrencyexposureasat31March2018thatarenothedged/

coveredbyeitherderivativeinstrumentsorotherwisearewithintheNetOvernight

OpenPositionLimit(NOOP)andtheAggregateGapLimit,asapprovedbytheRBI.NOOPasat31March2018isRs.8,198(in‘000s).

f. Credit default Swaps: TheBankhasnotenteredintoanyCreditDefaultSwaptransactions.

VII. ASSEtS QuAlItY: a. Non Performing Assets (NPAs) Net NPAs to Net Advances (%) PercentageofNetNPAstoNetAdvancesforFY2017-18is0.00%

movement of Gross NPAs (Amountin‘000s)

Particulars 2017-18OpeningBalance -

Add:Additionsduringtheyear -

Less:Reductionsduringtheyear -

ClosingBalance -

movement of Net NPAs: (Amountin‘000s)


Add:Additionsduringtheyear -

Less:Reductionsduringtheyear -

ClosingBalance -

movement of provisions of NPAs (Excluding Provisions on Standard Assets) (Amountin‘000s)


Add:Provisionsmadeduringtheyear -

Less:Writebackofexcessprovisions -

Closingbalance -

b. Particulars of Accounts restructured Duringtheyear,theBankhasnotrestructuredadvancesgiventoanycustomer.

Disclosures pertaining to strategic debt restructuring scheme, Scheme ofSustainableStructuringofStressedAssets(S4A)andResolutionofStressedAssetsarenotapplicable.

c. Details of financial assets were sold to Securitisation/Reconstruction Company for Asset reconstruction

During the year, theBankhasnot transferred/soldanyassets toanyAssetReconstructionCompany.

d. Details of Non-Performing financial assets purchased/sold Duringtheyear,theBankhasnotpurchasedorsoldNon-PerformingFinancial

Assets.

e. Provision towards Standard Assets - (Amountin‘000s)

Particulars 2017-18ProvisionstowardsStandardAssets 23,131

f. Provision Coverage ratio (Amountin‘000s)

Particulars 2017-18ProvisionCoverageRatio -

VIII. BuSINESS rAtIoS:

SN Particulars 2017-18

1 Interestincometoworkingfunds(1) 4.14%

2 Non-interestincometoworkingfunds(1) 0.07%

3 Operatingprofit(2)toworkingfunds(1) (1.73%)

4 Returnonassets(3) (2.21%)

5 Businessperemployee(Amountin‘000s)(4) 159,433

6 Profitperemployee(Amountin‘000s)(5) (4,088)

Note: 1. WorkingfundsrepresentaverageoftotalassetsasreportedtoRBIinFormXunder

Section27oftheBankingRegulationAct,1949duringtheyear.2. OperatingProfitmeansNetInterestIncomeplusotherincomeexcludinggain/loss

onfixedassets.3. NetProfitasapercentagetoaverageworkingfunds.4. Businessmeanstotalofnetadvancesanddeposits,excludinginterbankdeposits.5. Productivityratioisbasedonyearendemployeenumbers.

10


IX. mAturItY PAttErN oF ASSEtS AND lIABIlItIESYear ended 31 march 2018 (Amountin‘000s)

maturity Buckets loans & Advances Investment Deposit Borrowing

Foreign Currency

Asset

Foreign Currency liabilities

Day–1 - 9,76,299 29,366 - 11,117 -

2-7Days 2,41,836 86,260 29,366 30,000 - -

8-14Days 3,55,607 5,55,028 29,366 5,50,000 - -

15-30Days 10,92,862 5,82,017 - 5,80,000 3,911 -

31Days-2Months 12,48,926 10,042 - 3,27,179 2,85,329 3,28,562

Above2Months&upto3Months 13,25,553 661 - 2,58,745 3,07,626 2,60,048

Over3Months&upto6Months 13,93,520 5,81,489 - 12,21,379 12,22,030 12,23,987

Over6Months&upto1Year 62,841 49,915 2,59,016 - - -

Over1Year&upto3Years 39,830 97,080 5,66,347 - - -

Over3Year&upto5Years 21,750 - - - - -

Over5Years - 35,457 - - 65,175 -

total 57,82,725 29,74,248 9,13,461 29,67,303 18,95,188 18,12,597

Classification of assets and liabilities under the different maturity buckets are compiled by management (on gross basis) based on the guidelines issued by the RBI and are based on the same assumptions as used by the Bank for compiling the returns submitted by RBI and which have been relied upon by the auditors.

X. ExPoSurE - a. lending to Sensitive Sectors: (Amountin‘000s)

Particulars 2017-18AdvancestoCapitalMarket -AdvancestoRealEstateSector -

b. risk Category Wise Country Exposure: ProvisionforcountryriskexposureinlinewithRBIguidelinesisasfollows: (Amountin‘000s)

risk Category Exposure (net) as at 31 march 2018

Provision held as at 31 march 2018

Insignificant 10,028 -Low 81,284 -Moderate 1,14,811 -High - -VeryHigh - -Restricted - -Off-credit - -totAl 2,06,123 -

c. Disclosure on Single Borrower limit (SBl)/Group Borrower limit (GBl): Duringtheyearended31March2018,thebankhascompliedwithReserve

BankofIndiaguidelinesonsingleborrowerandgroupborrowerlimit.SBLLimitwasdeterminedatamaximumlimitofBank’savailableeligiblecapitalbase.

TheExecutiveCommitteevidemeetingdated18August2017approvedtheSBLandrestrictedittoINR95crores.

d. unsecured Advances against Intangible Securities: TherearenoadvancesgrantedagainstIntangibleSecuritiessuchascharge

overtherights,licenses,authority(excludingguarantees),etc.duringtheyear.

XI. DISCloSurE oF PENAltIES BY rBI Duringtheyear,nopenaltieswereimposedbyRBI.

XII. EmPloYEE BENEFItS (ACCouNtING StANDArD -15) a. Provident Fund ThecontributiontoEmployeesProvidentFundamountedtoINR4,580(in000s)

fortheyearended31March2018.

b. Gratuity The following tables give the disclosure regarding theGratuityScheme in

accordancewiththeAccountingStandard15(Revised):

ChangesinthePresentValueofDefinedBenefitObligationsduringtheyear:

(Amountin‘000s)

Particulars 2017-18PresentvalueofDefinedBenefitObligationasattheBeginningofthePeriod -

Interestcost -

CurrentServiceCost 6,250

(LiabilityTransferredOut) -

(BenefitsPaid) -

Actuarial(gains)/LossesonObligations -

Present value of the Defined Benefit Obligation at the End of the Period 6,250

ChangesintheFairValueofPlannedAssets (Amountin‘000s)

Particulars 2017-18FairValueofPlanAssetsattheBeginningofthePeriod -

ExpectedReturnonPlanAssets -

ContributionsbytheEmployer -

(BenefitPaidfromtheFund) -

ActuarialGains/(Losses)onPlanAssets-DuetoExperience -

Fair Value of Plan Assets at the End of the Period -

Tableofrecognitionofactuarialgains/losses: (Amountin‘000s)

Particulars 2017-18Actuarial(Gains)/lossesonobligationfortheperiod -

Actuarial(Gains)/lossesonassetfortheperiod -

Actuarial (Gains)/losses recognized in income & expenses Statement -

AmountRecognizedintheBalanceSheet: (Amountin‘000s)

Particulars 2017-18Fairvalueofplanassetsattheendoftheperiod -

(PresentvalueofbenefitobligationasattheendofthePeriod) (6,250)

Net (liability)/asset recognized in the balance sheet (6,250)

ExpensesRecognizedintheProfit&LossAccount: (Amountin‘000s)

Particulars 2017-18Currentservicecost 6,250

Interestcost -

Expectedreturnonplanassets -

Actuarial(gains)/losses -

Expense recognized in the income statement 6,250

ExperienceAdjustmentisasfollows: (Amountin‘000s)

Experience Adjustment 2017-18GratuityDefinedBenefitObligation(A) 6,250

Planassets(B) -

Surplus/(Deficit)(B-A) (6,250)

ActuarialGains/(Losses)onObligation -

ActuarialGains/(Losses)onPlanAssets -

c. leave Encashment TheactuariallydeterminedliabilityforCompensatedAbsences(PrivilegeLeave)

oftheemployeesoftheGroupisgivenbelow: (Amountin‘000s)

Particulars 2017-18Provisionasatdate 5,245

d. Principal Actuarial AssumptionsParticulars 2017-18

DiscountRate 7.70%

SalaryEscalationRate–JuniorLevelMid-Level&above

10%7%

MortalityRate IndianAssuredLivesMortality(2006-08)

AttritionRate 5%

ReturnonPlanAsset -

11


Theaboveassumptionsareconsidered fordeterminingactuarial liabilityunderGratuity&LeaveEncashment.LiabilitytowardsLeaveEncashmentandGratuityarenon-funded.

e. National Pension Scheme TheBankhascontributedRs.2,091(in000s)fortheyearended31March2018

toNPSforemployeeswhohadoptedforthescheme.Thebankhasnoliabilityforfuturefundbenefitsotherthanitsannualcontributionfortheemployeeswhoagreetocontributetothescheme.

XIII. SEGmENt rEPortING (ACCouNtING StANDArD -17) a) TheBank in India operates as a single unit and there are no identifiable

geographicalsegments

b) TheBankhasclassifieditsbusinessintothefollowingsegments,namely: ● Treasury–primarilycomprisingofforex,bonds,governmentsecuritiesand

derivativesactivities. ● Wholesale/CorporateBanking-comprisingofCorporateBankingandTrade

Finance. ● OtherBankingoperations–comprisingofotherservicedepartmentsof

theBank.

Business Segment reporting as of 31 march 2018 (Amountin‘000s)

Business Segments treasuryCorporate/Wholesale Banking

other Banking

operationstotal

Revenue 2,48,994 82,799 (16) 3,31,777

Results 1,95,719 29,871 (1,39,870) 85,720

Unallocatedexpense (2,24,490)

Operatingprofit/(loss) (1,38,770)

Provisions (30,391)

Incometaxes (2,546)

Extraordinaryprofit/(loss) -

Net profit/(loss) (1,71,707)Segmentassets 42,96,048 59,08,395 1,66,094 1,03,70,537

Unallocatedassets 1,99,718

total assets 1,05,70,255Segmentliabilities 29,93,957 40,431 11,51,216 41,85,604

Unallocatedliabilities 15,600

CapitalandReserves&Surplus

63,69,051

total liabilities 1,05,70,255Note:Inallocationofsomeitemsofexpenses/incomeandasset/liabilities,certainestimatesandassumptionshavebeenmadebythemanagement,whichhasbeenrelieduponbytheauditors

TheBankdoesnot haveanyoverseasoperationsandhence there is nogeographicalsegmentreporting.

XIV. rElAtED PArtY trANSACtIoNS (ACCouNtING StANDArD -18) TheinformationrequiredinthisregardinaccordancewithAccountingStandard18

on“RelatedPartydisclosures”,issuedbyICAIandRBIguidelines,isprovidedbelow: a. Name and nature of relationship of related parties

relationship Name Name

HeadOffice EmiratesNBDBank(PJSC)-UAE

BranchesofHeadOffice EmiratesNBDBank(PJSC)-RiyadhBranch

OverseasSubsidiaryofHeadOffice EmiratesNBDS.A.E.(Egypt)

KeyManagementPersonnel SharadAgarwalChiefExecutiveOfficer-India

InlinewiththeReserveBankofIndiaCircularNo.DBR.BP.BCNo.23/21.04.018/2015-16dated1July2015;theBankhasnotdiscloseddetailspertainingtorelatedpartieswhereunderacategorythereisonlyoneentity.Similarly,therehasbeenonlyoneentityunderKeyManagementpersonnelatanygivenpointof time,and therefore, thosedetailsarealsonotdisclosed.*RelatedpartiesareidentifiedbytheManagementandrelieduponbytheauditors. b. Disclosure in respect of transactions with subsidiaries of Head Office

(Amountin000’s)

Particulars outstanding as31 march 2018

maximumbalance during the FY

Advances 26,232 26,232

Borrowing - -

AmountReceivable - -

AmountPayable - -

(Amountin000’s)

Particulars 2017-18

InterestIncome* 78

* InterestIncomeonBillsdiscountedfromEmiratesNBDBankS.A.E.-Rs.78(in‘000s)

XV. lEASE ACCouNtING (ACCouNtING StANDArD 19) a) TheBank’ssignificantleasingarrangementsareinrespectofoperatingleases

forcommercialpremisesandmotorcarforemployees.

b) Minimum Lease Payments over the non-cancellable period of the leaseRs.1,10,101(in000s).

(Amountin‘000s)

Particulars 2017-18

Notlaterthan1year 64,449

Laterthan1yearandnotlaterthan5years 45,652

Laterthan5years -

totAl 1,10,101

c) Leasepayments recognised in theProfitandLossAccountduring theyear:Rs.63,963(in000s)

XVI. ACCouNtING For tAxES oN INComE (ACCouNtING StANDArD - 22) Theprimarycomponentsthatgiverisetodeferredtaxassetsandliabilitiesareas

follows:(Amountin‘000s)

Particulars For the year ended 31 march

2018

outstanding as 31 march 2018

Deferred tax liability

DepreciationonFixedAssets 23,190 23,190

total (A) 23,190 23,190

Deferred tax Asset*

Provisionforemployeebenefits 4,782 4,782

ProvisionforBonus 6,240 6,240

ProvisionforStandardAsset 9,622 9,622

total (B) 20,644 20,644

Deferred tax liability/(Asset) (Net) (A) – (B) 2,546 2,546

*DeferredTaxAssetonTaxLossforcurrentyearhasnotbeenrecognisedbasedonabsenceofvirtualcertaintyoffutureprofits.

XVII. CAPItAl CommItmENtS

Particulars As at 31 march 2018

Estimateamount of contracts remaining tobeexecutedon capitalaccountandnotprovidedfor -

XVIII.ImPAIrmENt oF ASSEtS (ACCouNtING StANDArD - 28) Fixedassetsacquiredbythebank,aretreatedas ‘CorporateAssets’andarenot

CashGeneratingUnit’asdefinedbyAS-28.IntheopinionofthemanagementoftheBank,thereisnoimpairmentofanyofthefixedassetsoftheBank.

XIX. ProVISIoNS, CoNtINGENt lIABIlItIES AND ASSEtS (ACCouNtING StANDArD-29)

Description of Contingent liabilities Claims against the Bank not acknowledged as debt ThisrepresentslegalclaimsfiledagainsttheBankinitsnormalcourseofbusiness

andtaxclaims/demandsraisedbytheIncomeTaxauthorities,whicharedisputedbytheBank.

liability on account of forward exchange and derivative contracts TheBankenters into foreignexchange contracts, currency options, forward rate

agreements,currencyswaps,interestrateswapsandinterestrateoptionsonitsownaccountandforcustomers.Thenotionalamountsthatarerecordedascontingentliabilitiesformthebasisforthecalculationoftheinterestcomponentonthecontractswhereapplicable.

Guarantees given on behalf of constituents, Acceptances, Endorsements and other obligations

Asapartofitsnormalbankingactivities,theBankissuesdocumentarycreditandguaranteesonbehalfofitscustomers.

12


BrEAK uP oF ‘ProVISIoNS AND CoNtINGENCIES’ ShoWN uNDEr thE hEAD ExPENDIturE IN ProFIt AND loSS ACCouNt:

(Amountin‘000s)

Particulars 2017-18ProvisionforDepreciationonInvestment 7,260

ProvisiontowardsNPA -

ProvisiontowardsStandardsAssets 23,131

ProvisiontowardsUnhedgedExposure -

ProvisiontowardsDerivativeExposure -

ProvisionforIncomeTax/WealthTax -

ProvisionforDeferredTaxLiabilities/(Assets) 2,546

OtherProvisionandContingencies -

total 32,937

XX. DISCloSurE uNDEr mICro, SmAll AND mEDIum ENtErPrISES DEVEloPmENt ACt, 2006 (mSmED, Act 2006)

TherearenodelaysinpaymentstomicroandsmallenterprisesasrequiredtobedisclosedunderTheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.Thedeterminationhasbeenmadetotheextentsuchpartieswereidentifiedbasedontheinformationavailable.Thishasbeenrelieduponbytheauditors.

2. ADDItIoNAl DISCloSurES:I. DEtAIlS oF ProVISIoNING PErtAINING to FrAuD ACCouNtS Thefollowingtablesetsforth,fortheperiodsindicated,thedetailsofprovisioning

pertainingtofraudaccounts. (Amountin‘000s)

Particulars 2017-18

NumberofFraudsreported -

Amountinvolvedinfrauds -

Provisionmade -

Unamortizedprovisiondebitedfromotherreserve -

II. FloAtING ProVISIoN Thisbeingthefirstfinancialyear,theBankhasnotmadeanyfloatingprovisionsfor

thecurrentyear.

III. DrAWDoWN From rESErVES Duringthefinancialyearended31March2018,therehasbeennodrawdownfrom

Reserves.

IV. DISCloSurE oF ComPlAINtS/uNImPlEmENtED AWArDS oF BANKING omBuDSmAN

InaccordancewithRBIcircularDBOD.No.Leg.BC.60/09.07.005/2006-07dated22February2007detailsofcustomercomplaintsandawardspassedbyBankingOmbudsmanareasunder:

a. Customer complaints


i. No.ofcomplaintspendingatthebeginningoftheyear -

ii. No.ofcomplaintsreceivedduringtheyear -

iii. No.ofcomplaintsredressedduringtheyear -

iv. No.ofcomplaintspendingattheendoftheyear -

b. Awards passed by the Banking ombudsman


i. No.ofunimplementedawardsatthebeginningoftheyear -

ii. No.ofawardspassedbytheBankingOmbudsmanduringtheyear. -

iii. No.ofawardsimplementedduringtheyear -

iv. No.ofunimplementedawardsattheendoftheyear -

V. DISCloSurE oF lEttErS oF ComFort (loCS) ISSuED BY BANKS TheBankhasnotissuedanyLetterofComfort(LOCs)duringtheyear.

VI. BANCASSurANCE BuSINESS Nofees/remunerationhadbeenreceivedinrespectofthebankassurancebusiness

duringtheyearended31March2018.

VII. CoNCENtrAtIoN oF DEPoSItS, ADVANCES, ExPoSurES AND NPAs - a. Concentration of Deposits

(Amountin‘000s)

Particulars 2017-18

Totaldepositsoftwentylargestdepositors 9,12,874

Percentageofdepositsoftwentylargestdepositorstototaldepositsofthebank(includesinter-bankdeposits) 99.94%

b. Concentration of Advances** (Amountin‘000s)

Particulars 2017-18

Totaladvancesoftwentylargestborrowers* 75,518

Percentageofadvancesoftwentylargestborrowerstototaladvancesofthebank 1.31%

*excludinginterbankexposuresandbasedonactualfundedutilisation**AdvancesarecomputedasperdefinitionofCreditExposureincludingderivativesfurnishedinMasterCircularofExposurenorms. c. Concentration of Exposures@ (Amountin‘000s)

Particulars 2017-18

Totalexposuretotwentylargestborrowers/customers* 10,39,000

Percentageofexposuretotwentylargestborrowers/customerstototalexposureofthebankonborrowers/customers 15.40%

*excludinginterbankexposures@ExposuresarecomputedbasedonCreditandInvestmentExposurefurnishedinMasterCircularofExposureNorms.

d. Concentration of NPAs (Amountin‘000s)

Particulars 2017-18

TotalexposuretotopfourNPAaccount -

VIII. SECtor WISE ADVANCES & NPAs (Amountin‘000s)

Sr. No. Sector

2017-18

outstanding total

Advances

Gross NPAs

% of Gross NPAs to total Advances

in that Sector

A Priority Sector

1 Agricultureandalliedactivities - - -

2Advancestoindustriessectoreligible as priority sectorlending

18,12,102 - -

3 Services 69,000 - -

4 Personalloans - - -

Sub-total (A) 18,81,102 - -

B Non Priority Sector

1 Agricultureandalliedactivities - - -

2 Industry - - -

3 Services 39,01,623 - -

4 Personalloans - - -

Sub-total (B) 39,01,623 - -

total (A+B) 57,82,725 - -

IX. Priority Sector Lending Certificate (PSLC) TheBankhadnotpurchasedanyPSLCsduringtheyearended31March2018

X. moVEmENt oF NPAs (Amountin‘000s)

Particulars 2017-18

Openingbalance -

Additions(FreshNPAs)duringtheyear -

Sub-total(A) -

Less:

(i)Upgradations -

(ii)Recoveries(excludingrecoveriesmadefromupgradedaccounts) -

(iii)Write-offs -

Sub-total(B) -

Closingbalance(A-B) -

13


XI. DIVErGENCE IN ASSEt ClASSIFICAtIoN AND ProVISIoNING For NPAs ThedisclosureinrespectofdivergenceinAssetclassificationisnotapplicable.

XII. oVErSEAS ASSEtS, NPA AND rEVENuE TheBankdoesnothaveanyOverseasAssetsandNPA’sasat31March2018and

hencerelatedrevenuesfortheyearended31March2018isNIL.

XIII. oFF-BAlANCE ShEEt SPVs SPoNSorED (WhICh ArE rEQuIrED to BE CoNSolIDAtED AS PEr ACCouNtING NormS) For F.Y. 2017-18

Name of the SPV sponsored

Domestic overseas

- -

XIV. Thebankhasnotundertakenanyfactoringbusinessduringthefinancialyear2017-18

XV. uNAmortISED PENSIoN AND GrAtuItY lIABIlItIES TheBankdoesnothaveanyunamortisedPension/GratuityLiabilitiesasat31March

2018.

XVI. DISCloSurE oN rEmuNErAtIoN IntermsofguidelinesissuedbyRBIvidecircularno.DBOD.NO.BC.72/29.67.001/2011-12

dated13January2012on“CompensationofWholeTimeDirectors/ChiefExecutiveOfficers/Risk takers andControl function staff, etc.”, the bank has submitted adeclarationtoRBItotheeffect that thecompensationstructure inIndia, includingthatofCEO’s,followsthebasicprinciplesandstandardsofFinancialStabilityBoard(FSB).

XVII. DISCloSurES rElAtING to SECurItIZAtIoN Therewerenosecuritizedassetsoutstandingason31March2018.

XVIII.CrEDIt DEFAult SWAPS (CDS) TheBankhasnotenteredintoCDStransactionduringthecurrentyear.

XIX. ProVISIoN For loNG tErm CoNtrACtS

TheBank has a processwhereby periodically all long term contracts (includingderivativecontracts)areassessedformaterialforeseeablelosses.Attheyearend,theBankhasreviewedandrecordedadequateprovisionasrequiredunderanylaw/accountingstandardsformaterial foreseeable lossesonsuchlongtermcontracts(includingderivativecontracts)inthebooksofaccountanddisclosedthesameundertherelevantnotesinthefinancialstatements.

XX. INtrA GrouP ExPoSurE Intra-GroupExposuresason31March2018is26,232(in000s).

XXI.trANSFEr to DEPoSItor EDuCAtIoN AND AWArENESS FuND (DEAF)(Amountin‘000s)

Particulars 2017-18

OpeningbalanceofamountstransferredtoDEAF -

Add:AmountstransferredtoDEAFduringtheyear -

Less:AmountsreimbursedbyDEAFtowardsClaim -

ClosingbalanceofamountstransferredtoDEAF -

XXII. uNhEDGED ForEIGN CurrENCY ExPoSurE TheBankmonitorsUnhedgedForeignCurrencyExposure(UHFCE)tofactortherisk

arisingfromcurrencyvolatilityintopricingaspertheguidelinesstipulatedbyRBIon15January2014.AtthetimeofassessingtheproposaltheBanktakesthepositionofUHFCEfornewborrowersandcalculatestheincrementalprovisioningandcapitalrequirementtoadjustthepricingofnewloans.Thereafterbasedonthecertificateprovidedbythecustomer,theBankcalculatestheincrementalprovisioningandcapitalrequirementforcustomereveryquarterasperthemethodologysuggestedasperRBIcircular.ProvisiontowardsUHFCEisNILat31March2018.

XXIII.lIQuIDItY CoVErAGE rAtIo TheBankhasbeencomputingitsLCRonamonthlybasissinceAugust2017.Themonthly

averageliquiditycoverageratio(LCR)maintainedforthequarterended31March2018 was5,788.87%.

ThefollowingtablesetsforthmonthlyaverageunweightedandweightedvalueoftheLCRoftheBankforquartersended30 September 2017, 31 December 2017 and 31 March 2018.

Sr. No. Particulars

30-Sep-17 31-Dec-17 31-mar-18total unweighted Value (Average)

total Weighted Value (Average)

total unweighted Value (Average)


total unweighted Value (Average)


high Quality liquid Assets1 TotalHighQualityLiquidAssets(HQLA) 4,253 28,85,533 25,67,781

Cash Outflows

2 Retaildepositsanddepositsfromsmallbusinesscustomers,ofwhich: 1,802 158 5,50,529 55,013 8,35,427 83,444

(i)Stabledeposits 448 22 801 40 1,983 99

(ii)Lessstabledeposits 1,354 136 5,49,728 54,973 8,33,444 83,345

3 Unsecuredwholesalefunding,ofwhich: - - 21,034 20,742 35,562 22,795

(i)Operationaldeposits(allcounterparties) - - - - - -

(ii)Non-operationaldeposits(allcounterparties) - - 21,034 20,742 35,562 22,795

(iii)Unsecureddebt - - - - - -

4 Securedwholesalefunding - - -

5 Additionalrequirements,ofwhich - - 19,333 1,933 42,528 7,728

(i)Outflowsrelatedtoderivativeexposuresandothercollateralrequirements - - - - 3,862 3,862

(ii)Outflowsrelatedtolossoffundingondebtproducts - - - - - -

(iii)Creditandliquidityfacilities - - 19,333 1,933 38,666 3,866

6 Othercontractualfundingobligations 6,302 6,302 17,242 17,242 27,703 27,703

Othercontractualfundingobligations - - 4,669 140 11,91,968 35,759

8 Total Cash Outflows 6,459 95,070 177,429Cash Inflows

9 Securedlending(e.g.reverserepos) - - - - - -

10 Inflowsfromfullyperformingexposures 29,68,300 29,68,300 22,48,333 22,48,333 673,121 673,121

11 Othercashinflows - - - - 3,441 3,441

12 Total Cash Inflows 29,68,300 29,68,300 22,48,333 22,48,333 6,76,562 6,76,562

21 total hQlA 4,253 28,85,533 25,67,78122 Total Net Cash Outflows 1,615 23,768 44,35723 liquidity Coverage ratio (%) 263.37% 12,140.61% 5,788.87%

14


Qualitative disclosure around lCr:Refer LCR Circular for Disclosure Requirements hereunder

(a) Drivers of LCR results and Composition of HQLA:The LCR standard aims to ensure that a bank maintains adequate level of unencumbered HQLA that can be converted into cash to meet its liquidity needs for a 30 calendar day time horizon under significantly severe liquidity stress scenario as specified by supervisors.The Bank’s High Quality Liquid Assets (HQLA) primarily consist of excess SLR securities in the form of Government securities,9% of NDTL under FALLCR (as permissible by RBI),2% MSF (as permissible by RBI),balance maintained with RBI in excess of CRR requirement which are considered as Level 1 High Quality Liquid Assets (HQLA).Bank also has investments in Commercial paper issued by a Financial Institution (FI).Commercial Paper issued by FI are considered as HQLA Level 2 Asset for LCR computation.

(b) Intra-period changes:As per RBI guidelines,the LCR maintenance limit is 80% for 2017 and 90% for 2018.The LCR maintained has always been above the RBI limit.The intra period changes mainly on account of change in un-encumbered excess SLR positions.

(c) DerivativeExposureandpotentialcollateralcalls:Bankdoesnothaveanyderivativeoutstandingas31March2018.However,MTMarisingoutofoutstandingFX(maturinguptoSPOT)hasbeenappropriatelyconsideredLCRcomputation.

(d) Currencymismatches:LCRcomputationisaggregatedacrosscurrencies,INRbeingthepredominantcurrency.OtherthanINR,theBankhasmajorexposureinUSdollarsastherearepreandpostshipmentloansbookedindollars.TheseloansarefundedthroughUSdollarborrowingfromtheheadofficeformatchingtenorsandportfolio.

(e) Degreeofcentralisationofliquiditymanagement:Bank’sliquiditymanagementandmonitoringiscentralised.Bank’sEXCOhasadoptedliquiditymanagementpolicyinlineRBIregulationandGrouprequirement.

(f) OtherinflowsandoutflowsintheLCRcalculationthatarenotcapturedintheLCRcommontemplatebutwhichtheinstitutionconsiderstoberelevantfor itsliquidityprofile:All the inflowsandoutflowsconsiderednecessary fromthebalancesheetarecapturedincomputationofLCR.Further,theBankbelievesthattheinflowsandoutflowswhichmighthaveamaterialimpactundertheliquiditystressscenariohavebeenconsideredforthepurposeofLCR.

XXIV.DISCloSurE oN NoStro ACCouNtS Therearenooutstandingentryformorethanthreemonthsinnostroaccountswhich

ispendingforreconciliation.Further,theBankhasnotwrittenoff/backanyoutstandingentrytothedebit/creditoftheprofitandlossaccountduringtheyearended31March2018.

XXV. CorPorAtE SoCIAl rESPoNSIBIlItY (CSr) AspertheprovisionsofSection135oftheCompaniesAct,2013,theBankisnot

requiredtospendtowardsCSRduetothelossesincurrentyear.

XXVI.PrEVIouS YEAr’S ComPArAtIVE Thebankcommencedoperationduringthecurrentfinancialyearandhencethere

arenopreviousyearfiguresforcomparison.

For Khimji & Kunverji & Co.Chartered AccountantsFirmRegistrationNo.105146W

For Emirates NBD Bank PJSC, India Branch

Vinit K JainPartnerMembershipNo.F-145911

Sharad Agarwal ChiefExecutiveOfficer



BASEl III DISCloSurES oF thE INDIA BrANCh For thE YEAr ENDED 31 mArCh 2018

All amts. in INr. ’000s, unless otherwise statedDF 1. Scope of application1. Qualitative and Quantitative Disclosures: TheBankissubjecttothecapitaladequacyguidelinesstipulatedbyRBI,whichare

basedontheframeworkoftheBaselCommitteeonBankingSupervision.AsperBaselIIIguidelines,theBankisrequiredtoachieveaminimumCapitaltoRiskWeightedAssetsRatio (CRAR)of 9% {11.5% includingCapitalConservationBuffer (CCB)},withminimumCommonEquityTier I (CET1)of5.5% (8% includingCCB)by31stMarch2019.TheseguidelinesonBaselIIIweretobeimplementedbybanksfrom1stApril2013inaphasedmanner.TheminimumcapitalrequiredtobemaintainedbytheBankfortheyearended31stMarch2018is9%(10.875%includingCCB)withminimumCommonEquityTier1(CET1)of5.5%(7.375%includingCCB).Theriskmanagementframeworkof Indianoperations is integratedwiththeBank’sstrategyand business planning processes at global level. The Bank has comprehensiverisk management framework to monitor, evaluate and manage the principal risksassumed in conducting its activities.The riskmanagement function in India is asperdirectivesandframeworksetoutatHeadOfficelevel.Asat31March2018,theBankdoesnothaveany investment insubsidiaries/JointVenturesandAssociates,significantminorityequityinvestmentininsurance,financialandcommercialentities.

2. Capital structure Qualitative Disclosures Bankregulatorycapitalconsistsoftwocomponents–Tier1capitalandTier2capital.

Both components of capital provide support for banking operations and protectdepositors.AsperReserveBankofIndia(RBI)guidelines,thecompositionofcapitalinstrumentsforforeignbanksinIndiawouldincludethefollowingelements:

Tier1Capital:● Interest-freefundsreceivedfromHeadOffice● StatutoryreserveskeptinIndianbooks● RemittablesurplusretainedinIndianbookswhichisnotrepatriablesolongas

thebankfunctionsinIndia● CapitalReserves● Interest-freefundsremittedfromHeadOfficeforacquisitionofproperty

Tier2Capital:● Generalprovisionsandlossreserves: Generalprovisionsandlossreservescanbereckoneduptoamaximumof1.25

percentofthetotalCreditrisk-weightedassets.Suchprovisionsandreservesinclude provisions on StandardAssets, Country Risk Exposures, UnhedgedForeignCurrencyExposuresandInvestmentReserveAccount.

● HeadOfficeborrowingsinforeigncurrencyraisedbyforeignbanksoperatinginIndiaclassifiedasSubordinatedDebtsubjecttoamaximumceilingof50%oftheTier1capitalmaintainedinIndia.

Quantitative Disclosures(a) Tier1Capital (Rs.000’s)

AmountReceivedfromHeadOffice 6,437,100

TransferofHeadOfficefundsonaccountofRepresentativeOfficeclosure 103,658

StatutoryReserves -

RemittableSurplusRetainedinIndiaforCRAR -

CapitalReserves -

Interest-freefundsremittedfromHeadOfficeforacquisitionofproperty -

Less:AccumulatedLosses 171,707

Less:IntangibleAssetsandDeferredTaxAssets 208,553

total tier 1 Capital 6,160,498

(b) Tier2Capital (Rs.000’s)

GeneralProvisionsandlossReservesreckoneduptoamaximumof1.25percentofthetotalCreditrisk-weightedassets 23,131

Amounteligibletobereckonedascapitalfunds 23,131

(c) DebtCapitalInstrumentsEligibleforinclusioninUpperTier2Capital(Rs.000’s)

TotalAmountOutstanding -

ofwhichamountraisedduringthecurrentyear -

Amounteligibletobereckonedascapitalfunds -

(d) SubordinatedDebtEligibleforinclusioninLowerTier2Capital(Rs.000’s)

Totalamountoutstanding -

ofwhichamountraisedduringthecurrentyear -

Amounteligibletobereckonedascapitalfunds -

total tier 2 Capital (b) + (c) + (d) 23,131

15


(e) Otherdeductionfromcapital. Therearenootherdeductionsfromcapital.(f) TotalEligibleCapital ThetotaleligiblecapitalisRs.6,183,629(‘000s).

DF 2. Capital Adequacy Qualitative DisclosuresTheBankhasassessed itscapital requirement taking intoaccount the3mainrisksasdefinedbyPillar1of theBasel IIInormsviz:CreditRisk,MarketRiskandOperationalRisk.CreditRiskiscomputedusingtheStandardisedApproach,MarketRiskiscalculatedusing the Standardised Duration Approach and Operational Risk is calculated usingtheBasicIndicatorApproach.Theriskcomputationundereachofthese3categoriesisadequatelycoveredbytheCapitaloftheBank.TheBankhasassesseditsfuturecapitalrequirementandthesamewillbedocumentedintheICAAP(InternalCapitalAdequacyAssessmentProcess)basedonthepositionasofMarch31,2018.Thecapitalrequirementwillbere-assessedperiodically.TheexistinglevelofCapitalisadequatetomeettheBank’scurrentandfuturebusinessrequirementsandthecapitalandCRARratiooftheBankissignificantlyhigherthantheminimumregulatorycapitaland ratioprescribedby theReserveBankof India (RBI).AsummaryoftheBank’scapitalrequirementforcredit,marketandoperationalriskandthecapitaladequacyratioason31stMarch2018ispresentedbelow:Quantitative Disclosures (Rs.000’s)

(a) CapitalRequirementsforCreditRisk:

PortfoliossubjecttoStandardisedApproach 307,511

SecuritisationExposures -

(b) CapitalRequirementsforMarketRisk:StandardisedDurationApproach

InterestRateRisk 65,729

ForeignExchangerisk(includingGold) 96,350

EquityRisk -

(c) CapitalRequirementsforOperationalRisk:

BasicIndicatorApproach 64,586

TotalCapitalRequired 534,176

TotalEligibleCapital 6,183,629

TotalRiskWeightedAssets 4,911,964

TotalCapitalRatio 125.89%

Tier1CapitalRatio 125.42%

DF -3: Credit risk : General DisclosuresQualitative DisclosuresCredit risk isdefinedasriskoffinancial lossarisingfromthefailureof thecustomerorcounterparty,tomeetitscontractualobligationstotheBank.Itcanarisefrombothfundedandnon-fundedtransactionsthatarecontingentinnature.Credit risk management approach is based on the foundation of independence andintegrityof thecreditriskassessment,managementandreportingprocessescombinedwith clear policies, limits and approval structures. Standard procedures specific tobusinesses are set up to manage various risks across different business segments,productsandportfolios.Thecreditpolicyfocusesonthecorecreditprinciplesanddetails,specificpolicyguidelines,lending parameters, control and monitoring requirements, problem loan identification,managementofhighriskcustomersandprovisioning.Credit facilities are granted based on the detailed credit risk assessment of thecounterparty. The assessment considers amongst other things the purpose of thefacility,sourcesofre-payment,prevailingandpotentialmacro-economicfactors,industrytrends,customers’creditworthinessandstandingwithin the industry.Thecredit facilityadministration process is undertaken by an independent function to ensure properexecutionofallcreditapprovals,maintenance,lodgmentofdocumentationandproactivecontrolsovermaturities,expiryoflimitsandcollaterals.Operationsaremanagedbyindependentunitsresponsibleforprocessingtransactionsinlinewithcreditapprovalsandstandardoperatingguidelines.The internal rating models measure counterparty risk (expressed as a probability ofdefault within one year). The risk on counterparty exposure onmarket transactions ismeasuredby theguidanceprovidedby theRBI.TheBankhasawell-definedprocessfor identification ofweaker credit risk exposures [classified asEarlyAlert (EA),WatchList(WL)&Non-Performing(NPA)Accounts]anddealingwiththemeffectively.TherearepolicieswhichgoverncreditgradingofEA,WL&NPAsaswellasinterestsuspensionandprovisioning,inlinewithRBIguidelines.ExposuresareclassifiedasNPAs(sub-standard,doubtfulorloss)inlinewithRBIguidelinesattheearlierofassessmentofinabilitytorepayorwhen interest or loan instalments, overdrafts and bills are overdue, out of order orremainunpaidrespectivelyfor90days.Thereareinternalcapsoninvestmentexposures,exposuretosensitivesectors,exposuretosingleobligorsandgroups.Therearealsospecificcontrolsonexposurestobanksandfinancialinstitutions,designedtoensureagainstexcessiveriskconcentration.ThereisaspecializedandcentralizeddepartmentattheGroupHeadOfficeformanagingfinancial

institutions.

Quantitative Disclosures(a) Totalgrosscreditriskexposure (Rs.000’s)

Particulars Fund Based (Note 1)

Non Fund Based(Note 2) total

Asat31March2018 5,782,725 1,829,454 7,612,179

1. TheaboveamountsrepresentGrossAdvancesbeforecreditriskmitigants.2. NonfundbasedexposuresexcludesexposurespertainingtoFXandDerivatives

(b) Geographicdistributionofexposures (Rs.000’s)

ParticularsAs at 31 march 2018

Fund Based Non Fund Based totalOverseas - - -

Domestic 5,782,725 1,829,454 7,612,179

Total 5,782,725 1,829,454 7,612,179

(c) Industrytypedistributionofexposures (Rs.000’s)

IndustryAs at 31 march 2018

Fund Based Non Fund Based totalGemsandJewellery 6,517 - 6,517

OtherIndustries - 1,666 1,666

ResiduaryOtherAdvances 5,776,208 1,827,788 7,603,996

Total 5,782,725 1,829,454 7,612,179

d) Residualcontractualmaturitybreakdownofassets (Rs.000’s)

As at 31 march 2018

1 day 1,132,599

2-7days 333,371

8-14days 917,871

15-30days 2,676,465

31daysandupto2months 1,294,565

over2monthsandupto3months 1,357,443

Over3Monthsandupto6months 1,996,933

Over6Monthsandupto1year 123,979

Over1Yearandupto3years 156,912

Over3Yearsandupto5years 86,199

Over5years 493,918

total 10,570,255

(e) AmountofNPAs(Gross)–Nil

(f) NetNPAs–NIL

(g) NPARatios GrossNPAstogrossadvances-0.00% NetNPAstonetadvances-0.00%(h) MovementofNPAs (Rs.000’s)

GrossNPAs Provision NetNPA

Openingbalance - - -

Additions - - -

Reduction(includingwritebacks/writeoffs) - - -

Closingbalance - - -

(i) Nonperforminginvestments–Nil(j) Provisionsheldfornon-performinginvestments–Nil(k) Movementofprovisionsfordepreciationoninvestments (Rs.000’s)

Particulars 2017-18

OpeningBalanceatbeginningoftheyear -

Add:Provisionsmadeduringtheyear 7,260

Less:Write-off/write-backofexcessprovisionsduringtheyear -

ClosingBalanceatendoftheyear 7,260

16


DF 4. Credit risk: disclosures for portfolios subject to the standardised approachQualitative DisclosuresTheBank follows theRBIguidelineson theuseofexternal credit ratings forassigningriskweightsunderthestandardisedapproach.RatingsofthefollowingIndiancreditratingagencies are used for domestic non-bank entities – Brickworks Ratings India Pvt Ltd,CreditAnalysisandResearchLtd,CRISILLtd,ICRALtd,IndiaRatingsandResearchLtd,SMERatingAgencyofIndiaLtd,whileratingsfrominternationalratingagencies-Fitch,Moody’sandStandard&Poor’s–areconsideredforassigningriskweightsforexposurestointernationalbanksandnon-residententities.Amountoutstandingundervariousriskbuckets: (Rs.000’s)

Particulars As at 31 march 2018Below100%riskweight 10,047,126

100%riskweight 280,840

Morethan100%riskweight -

Deducted -

total ** 10,327,966**TheamountoutstandingundervariousriskbucketsexcludesexposurestoQCCPandarepriortocreditriskmitigants.

DF 5. Credit risk mitigation: disclosures for standardised approaches:Qualitative DisclosuresCollaterals and guarantees are effectively used as mitigating tools by the Bank. Thequality of collateral is continuously monitored and assessed and the Bank seeks toensure enforceability of the collateral. Major categories of collaterals include lien overcash /fixeddeposits,pledgeoversecurities,guarantees(corporate,bankandpersonalguarantees), mortgage over immovable properties, hypothecation of current assets,includingreceivablesandinventory,andvehicles.CollateralsarerevaluedregularlyaspertheGroup’screditpolicy.Inaddition,adhocvaluationsarealsocarriedoutdependingonthenatureofcollateralandgeneraleconomiccondition.ThisenablestheBanktoassessthe fairmarket value of the collateral and ensure that risks are appropriately covered.Securitystructuresandlegalcovenantsarealsosubjecttoregularreview.Eligible collateral formitigation isasperRBIguidelines–cash,government securities,KisanVikasPatraandNationalSavingsCertificates,lifeinsurancepolicies,liquid/rateddebtsecurities,andmutualfundunits.Quantitative Disclosures:AsonMarch31,2018,thetotalexposurecoveredbyeligiblefinancialcollateralwasRs.1,189,456thousand.

DF 6. Securitisation: disclosure for standardised approachTheBankhasnotundertakenanysecuritizationtransactionsorhaveanyexposures.

DF 7. market risk in trading bookQualitative DisclosuresMarket risk is therisk that thevalueoffinancial instruments in theBank’sbooks–withtheinclusionofsomeotherfinancialassetsandliabilities-willproducealossbecauseofchangesinfuturemarketconditions.TheBanktakesonrisksinthepursuitofitsstrategicand business objectives. The Bankmonitors andmanages the following categories ofmarketrisk:● InterestRateRisk:lossesinvalueduetochangesinthelevel,slopeandcurvatureof

yieldcurves,thevolatilityofinterestratesandchangesincreditspreads;● FXRisk:lossesinvalueduetoexposurestochangesinspotprices,forwardprices

andvolatilitiesofcurrencyrates.TheBank’sriskexposurestomarketriskaresegregatedintoTradingandBankingBooks.TheTradingBookincludethosefinancialinstrumentsheldwithtradingintentarisingfrommarket-making,position-takingandothersodesignatedfinancial instrumentsaccountedforat fairvaluedaily.Capitalcharge formarket riskexposures in theTradingBookareconsideredundertheStandardisedDurationApproach.MarketRiskOversightandManagementProcessAs part of the enterprise-wide risk management framework, a governance process isappliedtothemarketrisktakingactivitieswhichincludes,interalia.● risk limits with appropriate monitoring, reporting and limits excesses’ escalation

procedures;● independentvaluationoffinancialinstrumentsintheTradingBookandmeasurement

ofmarketrisk;● acomprehensivesetofpolicies,proceduresandlimits;and● monitoringawiderangeofriskmetricsappropriatefortherespectivetradingactivities

-suchasrisksensitivities,NetOpenPositionsandValue-at-Risk(VaR).Experienced portfolio managers are accountable for managing market risk within theapprovedlimits.TheBankusesappropriateandindependentlyvalidatedmarketstandardmodels for the revaluation and risk measurement of its linear financial products andreceives regularmarket information from independentmarketdataproviders inorder tomeasureandmonitormarketrisk.Value-at-Risk(VaR)iscalculateddaily,currentlyforFXandinduecourseforrates,usingthefollowingparameters● Statisticallevelofconfidence:99%;● Holdingperiod:1businessday;● Methodology:FullRevaluation,HistoricalSimulationusingover2yearsofhistorical

marketdata.

Quantitative disclosuresCapitalrequirementsformarketrisk (Rs.000’s)

Standardised duration approach As at 31.03.2018

Interestraterisk 65,729

Foreignexchangerisk 96,350

Equityrisk -

Capitalrequirementsformarketrisk 162,079

DF 8. operational risk:Qualitative disclosuresOperationalriskisdefinedastheriskoflossesresultingfrominadequateorfailedinternalprocesses,peopleandsystems,orfromexternalevents.TheBank’sobjectiveistopreventmajoroperationalrisklossesandtoprotecttheBankagainstanymaterialdamage.The Bank uses the Basic Indicator Approach to estimate operational risk RWAs andcapital requirements.A framework for pro-activelymanaging operational risk has beenestablished. The Bank has a holistic approach to systematically identify, assess andmanageoperationalrisksacrossdifferentproducts,processes,andclientsegments.Keytools/methodologiesforthemanagementofoperationalriskinclude:● operationalriskandcontrolassessments;● settingandmonitoringofkeyriskindicators;● reportingandremediationofoperationalriskincidents;● issuesandactiontracking;and● newproductandprocessapprovals.Acomprehensiveinformationsecurityframeworkhasbeenimplementedtosafeguarddataandsystems.Requisitepoliciesandprocessesareinplacetoreportandmonitorfraud.TheBankobtainscomprehensiveandtailoredinsurancecovertoprotecttheBankagainstunexpectedandsubstantialunforeseeablelosses.Business Continuity Management is defined as a holistic management process thatidentifies potential threats to an organisation and the impacts to business operationsthatthosethreats, ifrealised,mightcause,andwhichprovidesaframeworkforbuildingorganisational resilience with the capability for an effective response that safeguardsthe interestsof itskeystakeholders,reputation,brandandvalue-creatingactivities.Thebusiness continuity process across the Group is based on the international standardISO22301:2012(E).TheBankhasdevelopedabusinesscontinuityplanandthealternatesiteisnowoperationalandhasbeenrecentlytested.

DF 9. Interest rate risk in the banking book (IrrBB)InterestRateRiskintheBankingBook(‘IRRBB’)isdefinedastheexposureofthenon-tradingproductsof theBank to interest rates.Non-tradingportfolios includeallbankingbookpositionsthatarisefromtheinterestrateontheBank’sconsumerandcommercialbankingassetsand liabilities,andfinancial investmentsdesignatedasheld tomaturity.IRRBBarisesprincipallyfrommismatchesbetweenthefutureyieldsonassetsandtheirfundingcosts,asaresultofinterestratechanges.Inordertomanagethisriskoptimally,IRRBBistransferredtoGroupMarkets&Treasury(GM&T)underthesupervisionoftheALCO.ALCOisrequiredtoregularlymonitorallsuchinterestrateriskpositionstoensuretheycomplywithinterestraterisklimits.Formeasuringoverall interestsensitivity in thebankingbook, theBankconsidersgapsininterestratesensitiveassetsandliabilitiesinvariousbucketsaswellastheimpactonMarketValueofEquityonamonthlybasis.

Quantitative DisclosuresAsrequiredunderPillarIIInorms,theincrease/declineinearningsandeconomicvalueforanupward/downwardrateshockof200basispointsason31March2018,brokendownbycurrencyisasfollows:EarningsPerspective (Rs.000’s)

CurrencyInterestRateShock

2%Increase 2%Decrease

Rupeesandothermajorcurrencies 3,717 (3,717)

USDollar 3 (3)

EconomicValuePerspective (Rs.000’s)

CurrencyInterestRateShock

2%Increase 2%Decrease

Rupeesandothermajorcurrencies 15,401 (15,401)

USDollar Nil Nil

DF 10. General Disclosure for exposures related to Counterparty Credit riskQualitative disclosuresCounterpartyCreditRisk (CCR) is the risk that thepersonor institutionwithwhom theBankhasenteredintoafinancialmarketcontract–whoisacounterpartytothecontract–couldeitherdefaultordeteriorateincreditworthinessleadingtoafailuretoperformonitscontractualobligations,causinglossestotheBank.Thefuturemarketvalueoftheexposureandthecounterparty’screditqualityareuncertainandmayvaryovertimeasunderlyingmarketvariableschange.CCRisamultidimensionalformof risk,affectedbyboth theexposure tocounterpartyand thecreditqualityof thecounterparty,bothofwhicharesensitivetomarket-inducedchanges.

17


Forlocalregulatoryandcapitalpurposes,thecreditequivalentamountofamarketrelatedoff-balance sheet transaction is calculatedusing the current exposuremethodwhich isthe sumof current credit exposure (positivemark-to-market) andpotential future creditexposure(determinedbymultiplyingthenotionalprincipalamountbytherelevantadd-onfactor).SettlementRisk ariseswhen theGroup, acting as a principal, exchanges securities orcashpaymentstoacounterpartyonavaluedateandisunabletoverifythatpaymentorsecuritieshavebeenreceived inexchangeuntilafter ithaspaidordelivered itssideoftransaction.

Counter-party credit risk exposures are required to be assessed and limits are to beapprovedaspartoftheusualcreditsubmissionandapprovalprocess.WrongWayRisk (WWR)ariseswhen there isadverse (positive) correlationbetweenaclient’s credit worthiness (probability of default) and the Bank’s credit exposure to thatclient.WWRisgenerallydiscouragedandisrequiredtobeidentifiedandspecificapprovalobtained.Quantitative disclosuresAson31March2018,thebankhadnoexposuretoFXcontractsbeyondspotmaturity.

DF 11. Composition of capital (Rs.in‘000s)

Particulars AmountAmounts Subject

to Pre-Basel III treatment

ref No.

Common Equity tier 1 capital: instruments and reserves1 Directlyissuedqualifyingcommonsharecapitalplusrelatedstocksurplus(sharepremium)(FundsfromHeadOffice) 6,540,758 - a

2 Retainedearnings - - -

3 Accumulatedothercomprehensiveincome(andotherreserves) - -

4 DirectlyissuedcapitalsubjecttophaseoutfromCET1(onlyapplicabletonon-jointstockcompanies) - -

Public sector capital injections grandfathered until January 1, 2018 - -

5 Commonsharecapitalissuedbysubsidiariesandheldbythirdparties(amountallowedingroupCET1) - -

6 Common Equity tier 1 capital before regulatory adjustments 6,540,758 -

Common Equity tier 1 capital : regulatory adjustments7 Prudentialvaluationadjustments - -

8 Goodwill(netofrelatedtaxliability) - -

9 Intangiblesotherthanmortgage-servicingrights(netofrelatedtaxliability) 380,260 - b+c

10 Deferredtaxassets - -

11 Cash-flowhedgereserve - -

12 Shortfallofprovisionstoexpectedlosses - -

13 Securitisationgainonsale - -

14 Gainsandlossesduetochangesinowncreditriskonfairvaluedliabilities - -

15 Defined-benefitpensionfundnetassets - -

16 Investmentsinownshares(ifnotalreadynettedoffpaid-upcapitalonreportedbalancesheet) - -

17 Reciprocalcross-holdingsincommonequity - -

18 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedsharecapital(amountabove10%threshold) - -

19 Significantinvestmentsinthecommonstockofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions(amountabove10%threshold) - -

20 Mortgageservicingrights(amountabove10%threshold) - -

21 Deferredtaxassetsarisingfromtemporarydifferences(amountabove10%threshold,netofrelatedtaxliability) - -

22 Amountexceedingthe15%threshold - -

23 ofwhich:significantinvestmentsinthecommonstockoffinancialentities - -

24 ofwhich:mortgageservicingrights - -

25 ofwhich:deferredtaxassetsarisingfromtemporarydifferences - -

26 Nationalspecificregulatoryadjustments(26a+26b+26c) - -

26a ofwhich:Investmentsintheequitycapitalofunconsolidatednon-financialsubsidiaries - -

26b ofwhich:Shortfallintheequitycapitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththebank - -

26c ofwhich:Unamortisedpensionfundsexpenditures - -

RegulatoryAdjustmentsAppliedtoCommonEquityTier1inrespectofAmountsSubjecttoPre-BaselIIITreatment - -

ofwhich:HODebitBalance - -

27 RegulatoryadjustmentsappliedtoCommonEquityTier1duetoinsufficientAdditionalTier1andTier2tocoverdeductions - -

28 total regulatory adjustments to Common equity tier 1 380,260 -

29 Common Equity tier 1 capital (CEt1) 6,160,498 -

Additional tier 1 capital : instruments30 DirectlyissuedqualifyingAdditionalTier1instrumentsplusrelatedstocksurplus(sharepremium)(31+32) - -

31 ofwhich:classifiedasequityunderapplicableaccountingstandards(PerpetualNon-CumulativePreferenceShares) - -

32 ofwhich:classifiedasliabilitiesunderapplicableaccountingstandards(PerpetualdebtInstruments) - -

33 DirectlyissuedcapitalinstrumentssubjecttophaseoutfromAdditionalTier1 - -

34 AdditionalTier1instruments(andCET1instrumentsnotincludedinrow5)issuedbysubsidiariesandheldbythirdparties(amountallowedingroupAT1) - -

35 ofwhich:instrumentsissuedbysubsidiariessubjecttophaseout - -

36 Additional tier 1 capital before regulatory adjustments - -

Additional tier 1 capital: regulatory adjustments37 InvestmentsinownAdditionalTier1instruments - -

18




ref No.

38 Reciprocalcross-holdingsinAdditionalTier1instruments - -

39 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedcommonsharecapitaloftheentity(amountabove10%threshold)

- -

40 Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatoryconsolidation(netofeligibleshortpositions) - -

41 Nationalspecificregulatoryadjustments(41a+41b) - -

41a InvestmentsintheAdditionalTier1capitalofunconsolidatedinsurancesubsidiaries - -

41b ShortfallintheAdditionalTier1capitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththebank - -

Regulatory Adjustments Applied to Additional Tier 1 in respect of Amounts Subject to Pre-Basel III Treatment - -

ofwhich:.... - -

42 RegulatoryadjustmentsappliedtoAdditionalTier1duetoinsufficientTier2tocoverdeductions - -

43 total regulatory adjustments to Additional tier 1 capital - -

44 Additional tier 1 capital (At1) - -

44a Additional tier 1 capital reckoned for capital adequacy - -

45 tier 1 capital (t1 = CEt1 + Admissible At1) (29 + 44a) 6,160,498 -

tier 2 capital : instruments and provisions

46 DirectlyissuedqualifyingTier2instrumentsplusrelatedstocksurplus - -

47 DirectlyissuedcapitalinstrumentssubjecttophaseoutfromTier2 - -

48 Tier2instruments(andCET1andAT1instrumentsnotincludedinrows5or34)issuedbysubsidiariesandheldbythirdparties(amountallowedingroupTier2) - -

49 ofwhich:instrumentsissuedbysubsidiariessubjecttophaseout - -

50 Provisions(PleaserefertoNotetoTemplatePoint50) 23,131 - d

51 tier 2 capital before regulatory adjustments 23,131 -

tier 2 capital: regulatory adjustments

52 InvestmentsinownTier2instruments - -

53 Reciprocalcross-holdingsinTier2instruments - -

54 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedcommonsharecapitaloftheentity(amountabovethe10%threshold)

- -

55 Significant investments 13 in the capital banking, financial and insurance entities that are outside the scope of regulatoryconsolidation(netofeligibleshortpositions) - -

56 Nationalspecificregulatoryadjustments(56a+56b) - -

56a ofwhich:InvestmentsintheTier2capitalofunconsolidatedinsurancesubsidiaries - -

56b ofwhich: ShortfallintheTier2capitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththebank - -

RegulatoryAdjustmentsAppliedToTier2inrespectofAmountsSubjecttoPre-BaselIIITreatment - -

ofwhich:InvestmentsinSubsidiaries - -

57 total regulatory adjustments to tier 2 capital - -

58 tier 2 capital (t2) 23,131 -

58a tier 2 capital reckoned for capital adequacy 23.131 -

58b Excess Additional tier 1 capital reckoned as tier 2 capital - -

58c total tier 2 capital admissible for capital adequacy (58a + 58b) 23,131 -

59 total capital (tC = t1 + Admissible t2) (45 + 58c) 6,183,629 -

RiskWeightedAssetsinrespectofAmountsSubjecttoPre-BaselIIITreatment - -

ofwhich:...... - -

60 total risk weighted assets (60a + 60b + 60c) 4,911,964 -

60a ofwhich:totalcreditriskweightedassets 2,827,686 -

60b ofwhich:totalmarketriskweightedassets 1,490,384 -

60c ofwhich:totaloperationalriskweightedassets 593,894 -

Capital ratios

61 CommonEquityTier1(asapercentageofriskweightedassets) 125.42% -

62 Tier1(asapercentageofriskweightedassets) 125.42% -

63 Totalcapital(asapercentageofriskweightedassets) 125.89% -

64 Institution specific buffer requirement (minimum CET1 requirement plus capital conservation and countercyclical bufferrequirements,expressedasapercentageofriskweightedassets) 1.875% -

19




ref No.

65 ofwhich:capitalconservationbufferrequirement 1.875% -

66 ofwhich:bankspecificcountercyclicalbufferrequirement - -

67 ofwhich:G-SIBbufferrequirement - -

68 CommonEquityTier1availabletomeetbuffers(asapercentageofriskweightedassets) 119.92% -

National minima (if different from Basel III)

69 NationalCommonEquityTier1minimumratio(ifdifferentfromBaselIIIminimum) 5.50% -

70 NationalTier1minimumratio(ifdifferentfromBaselIIIminimum) 7.00% -

71 Nationaltotalcapitalminimumratio(ifdifferentfromBaselIIIminimum) 10.875% -

Amounts below the thresholds for deduction (before risk weighting)

72 Non-significantinvestmentsinthecapitalofotherfinancialentities - -

73 Significantinvestmentsinthecommonstockoffinancialentities - -

74 Mortgageservicingrights(netofrelatedtaxliability) - -

75 Deferredtaxassetsarisingfromtemporarydifferences(netofrelatedtaxliability) - -

Applicable caps on the inclusion of provisions in tier 2

76 ProvisionseligibleforinclusioninTier2inrespectofexposuressubjecttostandardisedapproach(priortoapplicationofcap) 23,131 - d

77 CaponinclusionofprovisionsinTier2understandardisedapproach 35,346 -

78 ProvisionseligibleforinclusioninTier2inrespectofexposuressubjecttointernalratings-basedapproach(priortoapplicationofcap) - -

79 CapforinclusionofprovisionsinTier2underinternalratings-basedapproach - -

Capital instruments subject to phase-out arrangements (only applicable between 31 march 2017 and 31 march, 2022)

80 CurrentcaponCET1instrumentssubjecttophaseoutarrangements - -

81 AmountexcludedfromCET1duetocap(excessovercapafterredemptionsandmaturities) - -

82 CurrentcaponAT1instrumentssubjecttophaseoutarrangements - -

83 AmountexcludedfromAT1duetocap(excessovercapafterredemptionsandmaturities) - -

84 CurrentcaponT2instrumentssubjecttophaseoutarrangements - -

85 AmountexcludedfromT2duetocap(excessovercapafterredemptionsandmaturities) - -

Notetothetemplate

RowNo.ofthe template Particular Rs.in’000

10

Deferredtaxassetsassociatedwithaccumulatedlosses -

Deferredtaxassets(excludingthoseassociatedwithaccumulatedlosses)netofDeferredtaxliability -

Totalasindicatedinrow10 -

19

Ifinvestmentsininsurancesubsidiariesarenotdeductedfullyfromcapitalandinsteadconsideredunder10%thresholdfordeduction,theresultantincreaseinthecapitalofbank -

ofwhich:IncreaseinCommonEquityTier1capital -

ofwhich:IncreaseinAdditionalTier1capital -

ofwhich:IncreaseinTier2capital -

26b Ifinvestmentsintheequitycapitalofunconsolidatednon-financialsubsidiariesarenotdeductedandhence,riskweightedthen: -

(i) IncreaseinCommonEquityTier1capital -

(ii) Increaseinriskweightedassets -

44aExcessAdditionalTier1capitalnotreckonedforcapitaladequacy(differencebetweenAdditionalTier1capitalasreportedinrow44andadmissibleAdditionalTier1capitalasreportedin44a) -

ofwhich:ExcessAdditionalTier1capitalwhichisconsideredasTier2capitalunderrow58b -

50

EligibleProvisionsincludedinTier2capital 23,131

EligibleRevaluationReservesincludedinTier2capital -

Totalofrow50 23,131

58a ExcessTier2capitalnotreckonedforcapitaladequacy(differencebetweenTier2capitalasreportedinrow58andT2asreportedin58a) -

20


DF-12: Composition of Capital-reconciliation requirements (Rs.in‘000’)

Particulars

Balancesheetasinpublishedfinancial

statements Reference

Asat31.03.2018

A

Capital & liabilities

i.

Paid-upCapital(fundsfromHO) 6,540,758 a

Reserves&Surplus (171,707) c

MinorityInterest -

TotalCapital 6,369,051

ii.

Deposits 913,461

ofwhich:Depositsfrombanks 556

ofwhich:Customerdeposits 912,905

ofwhich:Otherdeposits(pl.specify) -

iii.

Borrowings 2,967,303

ofwhich:FromRBI 1,160,000

ofwhich:Frombanks -

ofwhich:Fromotherinstitutions&agencies -

ofwhich:Others(pl.specify)(BorrowingsoutsideIndia) 1,807,303

ofwhich:Capitalinstruments -

iv.Otherliabilities&provisions 320,440

ofwhich:ProvisionforStandardAdvances 23,131 d

total 10,570,255

B

Assets

i.CashandbalanceswithReserveBankofIndia 174,013

Balancewithbanksandmoneyatcallandshortnotice 1,006,573

ii.

Investments: 2,966,988

ofwhich:Governmentsecurities 2,386,302

ofwhich:Otherapprovedsecurities -

ofwhich:Shares -

ofwhich:Debentures&Bonds -

ofwhich:Subsidiaries/JointVentures/Associates -

ofwhich:Others(CommercialPapers,MutualFundsetc.) 580,686

iii.

Loansandadvances 5,782,725

ofwhich:Loansandadvancestobanks -

ofwhich:Loansandadvancestocustomers 5,782,725

iv.Fixedassets 329,597

ofwhich:ComputerSoftware 208,553 b

v.

Otherassets 310,359

ofwhich:Goodwillandintangibleassets -

ofwhich:Deferredtaxassets -

vi. Goodwillonconsolidation -

vii. DebitbalanceinProfit&Lossaccount -

total Assets 10,570,255

DF-13: main Features of regulatory Capital Instruments:

Item # Particulars Head Office Capital

1 Issuer EmiratesNBDBank(P.J.S.C)HeadOffice

2 UniqueIdentifier NotApplicable

3 Governinglawsoftheinstrument Applicableregulatoryrequirements

Regulatory Treatment

4 TransitionalBaselIIIrules CommonEquityTierI

5 Post-transitionalBaselIIIrules CommonEquityTierI

6 Eligibleatsolo/group/group&solo Solo

7 Instrumenttype Others-InterestfreefundsfromH.O

21


Item # Particulars Head Office Capital

8 Amountrecognizedintheregulatorycapital(RsthousandasofMarch31,2018) 6,540,758

9 Parvalueofinstrument NotApplicable

10 Accountingclassification Shareholders’equity

11 Originaldateofissuance Atvarioustimessinceinception

12 PerpetualorDated Perpetual

13 OriginalMaturitydate Nomaturity

14 Issuercallsubjecttopriorsupervisoryapproval No

15 Optionalcalldate,contingentcalldatesandredemptionamount NotApplicable

16 Subsequentcalldates,ifapplicable NotApplicable

Coupons / Dividends

17 FixedorFloatingdividend/coupon NotApplicable

18 Couponrateandanyrelatedindex NotApplicable

19 Existenceofadividendstopper NotApplicable

20 Fullydiscretionary,partiallydiscretionaryormandatory NotApplicable

21 Existenceofstep-uporotherincentivetoredeem NotApplicable

22 Non-cumulativeorCumulative NotApplicable

23 ConvertibleorNon-convertible NotApplicable

24 Ifconvertible,conversiontrigger(s) NotApplicable

25 Ifconvertible,fullyorpartially NotApplicable

26 Ifconvertible,conversionrate NotApplicable

27 Ifconvertible,mandatoryoroptionalconversion NotApplicable

28 Ifconvertible,specifyinstrumenttypeconvertibleinto NotApplicable

29 Ifconvertible,specifyissuerofinstrumentitconvertsinto NotApplicable

30 Write-downfeature No

31 Ifwrite-down,write-downtrigger(s) NotApplicable

32 Ifwrite-down,fullorpartial NotApplicable

33 Ifwrite-down,permanentortemporary NotApplicable

34 Iftemporarywrite-down,descriptionofwrite-upmechanism NotApplicable

35 Positioninsubordinationhierarchyinliquidation(specifyinstrumenttypeimmediatelyseniortoinstrument) Allothercreditorsanddepositorsofthebank

36 Non-complianttransitionedfeatures No

37 Ifyes,specifynon-compliantfeatures NotApplicable

DF -14: Full terms and Conditions of regulatory Capital Instruments:Theregulatorycapitalconsistsofcapitalfundsreceivedfromheadofficewithoutanytermsandconditions.

DF-15: Disclosure requirements for remuneration:TheBank’scompensationpoliciesareinconformitywiththebasicprinciplesandstandardsofFinancialStabilityBoard.InaccordancewiththerequirementsoftheRBICircularNo.DBODNo.BC.72/29.67.001/2011-12dated13January2012,theBankhassubmittedadeclarationtoRBIconfirmingtheaforesaidmatter.Accordinglynodisclosureisrequiredtobemadeinthisregard.

DF-16: Equities – Disclosure for Banking Book Positions:

Qualitative DisclosuresThebankhasnoinvestmentinEquities

Quantitative DisclosuresTheBookvalueandMarketvalueofquotedandunquotedsecuritiesareasfollows:

(Rs.in‘000s)

Securities Book Value market ValueInvestmentinEquities:Quoted - -InvestmentinEquities:Unquoted - -

DF 17 - Summary comparison of accounting assets vs. leverage ratio exposure measure:Item (rs. ‘000)

1 Totalconsolidatedassetsasperpublishedfinancialstatements 10,570,255

2 Adjustmentforinvestmentsinbanking,financial,insuranceorcommercialentitiesthatareconsolidatedforaccountingpurposesbutoutsidethescopeofregulatoryconsolidation -

3 Adjustmentforfiduciaryassetsrecognisedonthebalancesheetpursuanttotheoperativeaccountingframeworkbutexcludedfromtheleverageratioexposuremeasure -

4 Adjustmentsforderivativefinancialinstruments -

5 Adjustmentforsecuritiesfinancingtransactions(i.e.reposandsimilarsecuredlending) -

6 Adjustmentforoff-balancesheetitems(i.e.conversiontocreditequivalentamountsofoff-balancesheetexposures) 1,825,581

22


7 Otheradjustments (182,321)

8 leverage ratio exposure 12,213,515

DF 18. leverage ratio common disclosure template:

Item (rs. in millionson-balance sheet exposures

1 On-balancesheetitems(excludingderivativesandSFTs,butincludingcollateral) 10,568,6972 (AssetamountsdeductedindeterminingBaselIIITier1capital) (208,553)3 total on-balance sheet exposures

(excludingderivativesandSFTs)(sumoflines1and2) 10,360,144

Derivative exposures4 Replacementcostassociatedwithallderivativestransactions(i.e.netofeligiblecashvariationmargin) -5 Add-onamountsforPFEassociatedwithallderivativestransactions -6 Gross-upforderivativescollateralprovidedwheredeductedfromthebalancesheetassetspursuanttotheoperativeaccounting

framework -

7 (Deductionsofreceivablesassetsforcashvariationmarginprovidedinderivativestransactions) -8 (ExemptedCCPlegofclient-clearedtradeexposures) -9 Adjustedeffectivenotionalamountofwrittencreditderivatives -10 (Adjustedeffectivenotionaloffsetsandadd-ondeductionsforwrittencreditderivatives) -11 total derivative exposures (sum of lines 4 to 10) -

Securities financing transaction exposures12 GrossSFTassets(withnorecognitionofnetting),afteradjustingforsaleaccountingtransactions 1,187,79013 (NettedamountsofcashpayablesandcashreceivablesofgrossSFTassets) (1,160,000)14 CCRexposureforSFTassets -15 Agenttransactionexposures -16 Total securities financing transaction exposures (sum of lines 12 to 15) 27,790

other off-balance sheet exposures17 Off-balancesheetexposureatgrossnotionalamount 1,829,45418 (Adjustmentsforconversiontocreditequivalentamounts) (3,873)19 off-balance sheet items (sum of lines 17 and 18) 1,825,581

Capital and total exposures20 tier 1 capital 6,160,49821 total exposures (sum of lines 3, 11, 16 and 19) 12,213,515

leverage ratio22 Basel III leverage ratio 50.44

Emirates NBD Bank (PJSC), India Branch (Scheduled Commercial Bank) · 2018-07-12 · 1 Emirates NBD...

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Transcript of Emirates NBD Bank (PJSC), India Branch (Scheduled Commercial Bank) · 2018-07-12 · 1 Emirates NBD...