Essay About Particular Reference And Risk Exposure

Disclosures on Risk Exposure in Derivatives
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Disclosures on risk exposure in derivatives
Qualitative Disclosure
Banks shall discuss their risk management policies pertaining to derivatives
with particular reference to the extent to which derivatives are used, the
associated risks and business purposes served. The discussion shall also
include:
a) the structure and organization for management of risk in derivatives
trading,
b) the scope and nature of risk measurement, risk reporting and risk
monitoring systems,
c) policies for hedging and / or mitigating risk and strategies and processes
for monitoring the continuing effectiveness of hedges / mitigants, and
d) accounting policy for recording hedge and non-hedge transactions;
recognition of income, premiums and discounts; valuation of outstanding
contracts; provisioning, collateral and credit risk mitigation.
Quantitative Disclosures
(Rs. in crore)
Sl.No Particular Currency
Derivatives
Interest rate
derivatives
(i) Derivatives (Notional Principal
Amount)
a) For hedging
b) For trading
(ii) Marked to Market Positions [1]
a) Asset (+)
b) Liability (-)
(iii) Credit Exposure [2]
(iv) Likely impact of one percentage
change in interest rate (100*PV01)
a) on hedging derivatives
b) on trading derivatives
(v) Maximum and Minimum of
100*PV01 observed during the year
a) on hedging
b) on trading
3.4 Asset Quality
3.4.1 Non-Performing Asset
(Rs. in crore)
Particulars Current
Year
Previous
Year
(i) Net NPAs to Net Advances (%)
(ii) Movement of NPAs (Gross)
(a) Opening balance
(b) Additions during the year
(c) Reductions during the year
(d) Closing balance
(iii) Movement of Net NPAs
(a) Opening balance
(b) Additions during the year
(c) Reductions during the year
(d) Closing balance
(iv) Movement of provisions for NPAs
(excluding provisions on standard assets)
(a) Opening balance
(b) Provisions made during the year
(c) Write-off/ write-back of excess provisions
(d) Closing balance
3.4.2 Details of Loan Assets subjected to Restructuring
(Rs. in crore)
Particulars Current
year
Previous
Year
(i) Total amount of loan assets subjected to
restructuring, rescheduling, renegotiation;
– of which under CDR
(ii) The amount of Standard assets subjected to
restructuring, rescheduling, renegotiation;
– of which under CDR
(iii) The amount of Sub-Standard