DBOD.No. BP.BC.9/21.04.018/98

January 27, 1998
Magha 7, 1919 (Saka)

 All Commercial Banks

(excluding Regional Rural Banks)

Dear Sir,

Balance Sheet of banks - Disclosures

In terms of instructions contained in our circulars DBOD. No. BP. BC. 57/21.04.018/96 dated April 23, 1996 and DBOD. No. BP.BC. 59/21.04.048/97 dated May 21, 1997, the following information is required to be disclosed in the 'Notes on Accounts' to the balance sheet of banks.

i) Capital Adequacy Ratio

ii) Percentage of share holding of the Government of India in the nationalised banks.

iii) Percentage of net NPAs to net advances.

iv) Amount of provisions made towards NPA, Depreciation in the value of investments and Income-tax during the year (these three provisions along with other provisions and contingencies would tally with the aggregate of the amount held under 'Provisions and Contingencies' in the Profit and Loss account).

v) Amount of sub-ordinated debt raised as Tier-II capital (by way of explanatory notes/remarks in the balance sheets as well as in Schedule 5 relating to Other Liabilities and Provisions).

vi) The gross value of investments in India and outside India, the aggregate of Provisions for Depreciation separately on investments in India and outside India and the net value of investments in India and outside India.

2. It has now been decided that in addition to the above disclosures, the following business ratios also should be disclosed in the 'Notes on Accounts' commencing from the Balance Sheet as at 31 March, 1998.

i) Capital Adequacy Ratio - Tier I capital

ii) Capital Adequacy Ratio - Tier II capital

iii) Interest income as a percentage to working funds

iv) Non-interest income as a percentage to working funds

v) Operating profit as a percentage to working funds

vi) Return on assets

vii) Business (deposits plus advances) per employee

viii) Profit per employee

Yours faithfully,

(A. Ghosh)

Chief General Manager