IDBI Bank

1.Premises include Leasehold Land (revalued) of Rs.1339,70,11 Thousand
 (Rs.1339,70,11 Thousand).
 
 2.During the financial year 2006-07, the Bank has revalued its
 properties comprising Freehold Land & Residential/ Office building
 based on valuations made by professionally qualified independent
 Valuers at market value and accounted it on March 31,2007. The net
 appreciation of Rs.2063 91 00 Thousand arising on revaluation, being
 the difference between the net book value of Rs.529 02 00 Thousand and
 revalued amount of Rs.25 92 93 00 Thousand as on March 31, 2007, has
 been credited to Revaluation Reserve.
 
 IMPAIRMENT OF ASSETS
 
 3.The Banks assets substantially comprise of financial assets, which
 are not covered by AS 28 Impairment of Assets. In the opinion of the
 Banks management, there is no impairment in the value of its
 non-financial assets in terms of the said AS.
 
 OTHERS
 
 4.The Bank gets reimbursement towards differential interest from
 Government of India (COI) in respect of certain borrowings from Banks/
 Institutions. The interest expenditure debited to Profit & Loss Account
 is after considering credit of Rs. 149,18,78 Thousand (Rs. 194,65,01
 Thousand) on account of reimbursement towards differential interest for
 the year.
 
 EMPLOYEE BENEFITS
 
 5.a) Transitional Liability
 
 The transitional liability arising on account of adoption of Accounting
 Standard 15 (Revised 2005) - Employee Benefits is Rs.63,22,00 Thousand
 (Pension - Rs.31,09,00Thousand, Gratuity- Rs.16,41,00 Thousand,
 Disability
 
 Assistance - Rs.13,28,00 Thousand and Leave encashment - Rs.2,44,00
 Thousand). Out of this, an amount of Rs.12,50,00 Thousand has been
 charged to Profit & Loss account during the year.
 
 b) Defined Contribution Schemes
 
 Some of the Banks employees are covered by Provident Fund/
 Superannuation Fund to which the bank makes a defined contribution
 measured as a fixed percentage of basic salary. The Provident Fund plan
 is administered by the Administrators of IDBI Provident Fund/ IDBI Bank
 Employees Provident Fund Trust/ United Western Bank Employees
 Provident Fund while the contributions for Superannuation Fund are made
 to LIC Group Superannuation Scheme of the Life Insurance Corporation of
 India.
 
 During the year an amount of Rs. 3 99 45 Thousand has been charged to
 Profit and Loss account.
 
 c) Other long-term employee benefits
 
 Employees of the Bank are entitled to accumulate their earned/
 privilege leave upto a maximum of 300 days. A maximum of 15 days leave
 is eligible for encashment in each year. Some of the employees are
 eligible for Disability Assistance which is borne by the Bank as and
 when the disability events occur.  Actuarial valuation of these
 benefits has been carried out using the Projected Unit Credit Method
 and an amount of Rs.41 33 21 Thousand has been charged to Profit and
 Loss account during the year.
 
 d) Defined Benefit Schemes
 
 The Bank makes contributions for the gratuity liability of the
 employees, to the IDBI Employees Gratuity Fund Trust/ IDBI Bank
 Employees Gratuity Fund Trust/ United Western Bank Employees Gratuity
 Fund Trust.  The first two trusts invest the funds in the Group
 Gratuity Scheme of LIC, while the third administers the funds on its
 own. Some of the employees of the Bank are also eligible for Pension
 which is administered by the IDBI Pension Fund Trust/ United Western
 Bank Pension Fund Trust. The present value of these defined benefit
 obligations and the related current service cost are measured using the
 Projected Unit Credit Method with actuarial valuation being carried out
 at each balance sheet date.
 
 SEGMENT REPORTING
 
 The Bank operates in three segments Wholesale Banking, Retail Banking
 and Treasury Services. These segments have been identified in line with
 AS 17 on Segment Reporting after considering the nature and risk
 profile of the products and services, the target customer profile, the
 organization structure and the internal reporting system of the Bank.
 The Bank has disclosed business segment as the Primary Segment. Since
 the Bank operates in India, the Bank is considered to operate only in
 the domestic segment and as such there are no reportable geographical
 segments.
 
 6. Segment revenue, results, assets and liabilities include the amounts
 identifiable to each of the segments as also amounts allocated, as
 estimated by the management. Assets and liabilities that cannot be
 allocated to identifiable segments are grouped under unallocated assets
 and liabilities.
 
 7.a.  Figures for the previous year have been regrouped and rearranged
 wherever considered necessary.
 
 b.  Figures in brackets pertain to the previous year.