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Notes to Accounts - Indian Bank - Sep '15

201509 - Quarter - 2

1. The above financial results have been reviewed by the Audit Committee of Board and approved by
the Board of Directors in their meetings held on 02nd November 2015. The same have been subjected
to a limited review by the Statutory Central Auditors of the Bank in line with the guidelines
issued by the Reserve Bank of India and as per the requirements of Listing Agreement with Stock

2. The financial results have been prepared following the same accounting policies and practices as those followed in the annual financial statements for the year ended March 31, 2015.

3. The working results of the Bank have been arrived at after considering provisions for Non-Performing Advances, Non-Performing Investments, Standard Advances, Restructured Advances, Provision for exposure to entities with Unhedged Foreign Currency Exposure and Depreciation on Investments and on Fixed Assets. Provision for employee benefits pertaining to Pension, Gratuity and Leave Encashment has been made on the basis of actuarial valuation. All other usual and necessary provisions including taxation have been made on an estimated basis and are subject to adjustments, if any, at year end.

4. Based on the available financial statements and the declaration from borrowers, the Bank has estimated the liability and made a provision of Rs.11.91 crores for the half year ended 30th September 2015 (Retrieval of Rs.3.06 crores for the quarter ended 30th June 2015) and holds a provision of Rs.32.05 crores as on 30th September 2015 on Unhedged Foreign Currency Exposure to their constituents in terms of RBI Circular dated January 15,2014.

5. In accordance with RBI circular dated 01sl July, 2013, banks are required to make quarterly Pillar 3 disclosures under Base! ill capital requirements with effect from September 30, 2013. The disclosures are being made available on the Bank's website These quarterly Pillar 3 disclosures have not been subjected to a limited review by the Statutory Auditors of the Bank.

6. During the quarter, Non-Performing Financial Asset aggregating to Rs.30.07 Crores (net of provisions) were assigned to Asset Reconstruction Companies for a consideration of Rs.31.51 crore.

7. During the quarter ended 30th September 2015, the Bank has changed the basis of computation of provision for diminution in fair value for restructured accounts. Consequent to this change, there is a net write back of provision amounting to Rs. 152.00 crore during the quarter. While arriving at the revised fair value, the change in the discounting rate as per the RBI Circular dated 2nd July 2015 has been considered.

8. In accordance with RBI circular dated 16.07.2015 the bank has classified deposits placed with NABARD/SIDBI/NHB for meeting shortfall in priority sector lending under "other Assets" which were hitherto included under "Investments". Similarly, interest income from such deposits has been classified under the head "Interest Income-Others", which was hitherto included under "Interest Income-lnvestments". Figures for the previous periods have also been regrouped to conform to current period classification.

9. Non Performing Loan Provision Coverage Ratio is 62.19% as on September 30, 2015.

10. Figures for the previous periods have been regrouped / reclassified, wherever considered necessary.

Mahesh Kumar Jain
Managing Director & Chief Executive Officer (Additional Charge)
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