| Heads of Accounts
|
Classification into time
buckets |
| A. |
Outflows
|
| 1. |
Capital, Reserves and
Surplus |
Over 5 years bucket. |
| 2. |
Demand Deposits (Current and Savings Bank Deposits) |
Savings Bank and Current Deposits may
be classified into volatile and core portions. Generally 10 % of
Savings Bank and 15 % of Current Deposits are generally withdrawable
on demand. This portion may be treated as volatile. While volatile
portion can be placed in the Day 1, 2-7 days and 8-14 days time
buckets, depending upon the experience and estimates of banks and
the core portion may be placed in over 1- 3 years bucket. |
| The above classification of Savings
Bank and Current Deposits is only a benchmark. Banks which are
better equipped to estimate the behavioural pattern, roll-in and
roll-out, embedded options, etc. on the basis of past data /
empirical studies could classify them in the appropriate buckets,
i.e. behavioural maturity instead of
contractual maturity, subject to the approval of the Board
/ ALCO. |
| 3. |
Term Deposits
, Long Term Deposits ( Tier II ). |
Respective maturity buckets. Banks
which are better equipped to estimate the behavioural pattern,
roll-in and roll-out, embedded options, etc. on the basis of past
data / empirical studies could classify the retail deposits in the
appropriate buckets on the basis of behavioural maturity rather than
residual maturity. However, the wholesale deposits should be shown
under respective maturity buckets. (wholesale deposits for the
purpose of this statement may be Rs 15 lakhs or any such higher
threshold approved by the bank's Board). |
| 4. |
Certificates
of Deposit, Borrowings and Bonds (including Sub-ordinated Debt
if any) |
Respective maturity buckets. Where
call / put options are built into the issue structure of any
instrument/s, the call / put date/s should be reckoned as the
maturity date/s and the amount should be shown in the respective
time buckets. |
| 5. |
Other Liabilities
and Provisions |
| (i) |
Bills Payable |
(i) The core component which could
reasonably be estimated on the basis of past data and behavioural
pattern may be shown under 'Over 1-3 years' time bucket. The balance
amount may be placed in Day 1, 2- 7 days and 8-14 days buckets, as
per behavioural pattern. |
| (ii) |
Provisions other than for loan loss
and depreciation in investments |
(ii) Respective buckets
depending on the purpose. |
| (iii) |
Other Liabilities |
(iii) Respective maturity buckets.
Items not representing cash payables (i.e. income received in
advance, etc.) may be placed in over 5 years bucket. |
| 6. |
Export Refinance - Availed |
Respective maturity buckets of
underlying assets. |
| B. |
Inflows
|
| 1. |
Cash |
Day 1 bucket |
| 2. |
Balances with
RBI / Public sector banks and SCBs and DCCBs for CRR/SLR purpose |
While the excess balance over the
required CRR / SLR may be shown under Day 1 bucket, the Statutory
Balances may be distributed amongst various time buckets
corresponding to the maturity profile of DTL with a time-lag of 14
days. |
| 3. |
Balances with other Banks |
| (i) |
Current Account |
(i) Non-withdrawable portion on
account of stipulations of minimum balances may be shown under 'Over
1-3 years' bucket and the remaining balances may be shown under Day
1 bucket. |
| (ii) |
Money at Call and Short Notice, Term
Deposits, Long Term deposits (Tier II) , and other placements |
(ii) Respective maturity
buckets. |
| 4. |
Investments (Net of provisions)# |
| (i) |
Approved securities |
(i) Respective maturity buckets,
excluding the amount required to be reinvested to maintain SLR
corresponding to the DTL profile in various time buckets. |
| (ii) |
Corporate debentures and bonds, PSU
bonds, CDs and CPs, Redeemable preference shares, eligible units of
Mutual Funds (close ended), etc. |
(ii) Respective maturity
buckets. Investments classified as NPIs should be shown under over
3-5 years bucket (sub-standard) or over 5 years bucket (doubtful). |
| (iii) |
Equity of all India FIs
and Co-operative |
(iii) Listed shares in
2-7days bucket, with a haircut of 50%. Other shares in 'Over 5
years' bucket. |
| (iv) |
Units of Mutual Funds (open ended) |
(iv) Day 1 bucket |
| (v) |
Investments in
Subsidiaries |
(v) 'Over 5 years'
bucket. |
| (vi) |
Securities in the Trading
Book |
(vi) Day 1, 2-7 days, 8-14 days, 15-28
days and 29-90 days according to defeasance periods. |
| # |
Provisions
may be netted from the gross investments provided provisions are
held security-wise. Otherwise provisions should be shown in over 5
years bucket. |
| 5. |
Advances (Performing) |
| (i) |
Bills Purchased and Discounted
(including bills under DUPN) |
(i) Respective maturity
buckets. |
| (ii) |
Cash Credit / Overdraft
(including TOD) and Demand Loan component of Working Capital. |
(ii) Banks should undertake a study of
behavioural and seasonal pattern of availments based on outstandings
and the core and volatile portion should be identified. While the
volatile portion could be shown in the near-term maturity buckets,
the core portion may be shown under 'Over 1-3 years' bucket. |
| (iii) |
Term Loans |
(iii) Interim cash flows may be shown
under respective maturity buckets. |
| 6. |
NPAs (Net of
provisions, interest suspense and claims received from ECGC / DICGC)
|
| (i) |
Sub-standard |
(i) Over 3-5 years bucket. |
| (ii) |
Doubtful and Loss |
(ii) Over 5 years bucket. |
| 7. |
Fixed
Assets / Assets on lease |
'Over 5 years' bucket / Interim cash
flows may be shown under respective maturity buckets. |
| 8. |
Other
Assets |
|
| (i) |
Intangible assets |
Intangible assets and assets not
representing cash receivables may be shown in 'Over 5 years' bucket. |
| C. |
Off
balance sheet items |
| 1. |
Lines
of Credit committed / available |
| (i) |
Lines of Credit
committed to / from
Institutions |
(i) Day 1 bucket. |
| (ii) |
Unavailed portion of Cash Credit /
Overdraft / Demand loan component of Working Capital limits
(outflow) |
(ii) Banks should undertake a study of
the behavioural and seasonal pattern of potential availments in the
accounts and the amounts so arrived at may be shown under relevant
maturity buckets upto 12 months. |
| (iii) |
Export Refinance - Unavailed (inflow) |
(iii) Day 1 bucket. |
| 2. |
Contingent
Liabilities |
| Letters of
Credit / Guarantees (outflow) |
Devolvement of Letters of Credit /
Guarantees, initially entails cash outflows. Thus, historical trend
analysis ought to be conducted on the devolvements and the amounts
so arrived at in respect of outstanding Letters of Credit /
Guarantees (net of margins) should be distributed amongst various
time buckets. The assets created out of devolvements may be shown
under respective maturity buckets on the basis of probable recovery
dates. |
| 3. |
Other Inflows /
outflows |
| (i) |
Repos / Bills Rediscounted (DUPN) /
CBLO / Swaps INR / USD, maturing forex forward contracts etc.
(outflow / inflow) |
(i) Respective maturity
buckets. |
| (ii) |
Interest payable / receivable (outflow
/ inflow) - Accrued interest which are appearing in the books on the
reporting day |
(ii) Respective maturity
buckets. |
| Note
: |
| (i) |
Liability on account of
event cash flows i.e. short fall in CRR balance on reporting
Fridays, wage settlement, capital expenditure, etc. which are known
to the banks and any other contingency may be shown under respective
maturity buckets. The event cash outflows, including incremental SLR
requirement should be reported against "Outflows - Others". |
| (ii) |
All overdue liabilities
may be placed in the Day 1, 2-7 days and 8-14 days buckets, based on
behavioural estimates. |
| (iii) |
Interest and instalments
from advances and investments, which are overdue for less than one
month may be placed in Day 1, 2-7 days and 8-14 days buckets, based
on behavioural estimates. Further, interest and instalments due
(before classification as NPAs) may be placed in '29 days to 3
months bucket' if the earlier receivables remain uncollected. |
| D. |
Financing of Gap
|
| |
In case the net cumulative
negative mismatches during the Day 1, 2-7 days, 8-14 days and 15- 28
days buckets exceed the prudential limit of 5 % ,10%, 15 % and 20%
of the cumulative cash outflows in the respective time buckets, the
bank may show by way of a foot note as to how it proposes to finance
the gap to bring the mismatch within the prescribed limits. The gap
can be financed from market borrowings (call / term), Bills
Rediscounting, Repos , LAF and deployment of foreign currency
resources after conversion into rupees ( unswapped foreign currency
funds ), etc. |
