South Indian Bank Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The above financial results were reviewed by the Audit Committee and approved by Board of Directors at their meeting held on January 19, 2019. The results for the quarter and nine months ended December 31 , 2018 are subjected to limited review by the Statutory Central Auditor of the Bank.
2. During the nine months ended December 31, 2018 stock options aggregating 8,51,071 were exercised by eligible employees. No options were exercised during the quarter ended December 31, 2018. As at December 31, 20 18, 40,48,665 stock options were outstanding.
3. The mark to market depreciation on AFSIHFf investment category was Rs. 6,104 Lakhs for the quarter ended June 30, 2018. RBI circular dated June 15,2018, permitted banks an option to spread provisioning for mark to market losses on investments held in AFS and HFf for the quarter ended June 30, 2018 equally over up to four quarters, commencing with the quarter in which the loss was incurred. The bank had availed the option to spread the mark to market loss on investments for the quarter ended June 30, 2018 over four quarters. Accordingly the Bank has charged the proportionate MTM loss of Rs. 1.526/4 , 578 Lakhs during the quarter/nine months ended December 31 , 2018 to the profit and loss account. The unamortised MTM loss as at December 31 , 2018 is Rs. 1,526 Lakhs.
4. RBI circular DBR.No.BP.BC. l08/21 .04.048/2017-18 dated June 6, 2018 permitted banks to continue the exposures to MSME borrowers to be classified as standard assets where the dues between September I, 2017 and December 31 , 2018 are paid not later than 180 days from their respective original due dates. Accordingly, the bank has retained advance of~ 9,226 Lakhs as standard as at December 31, 2018. In accordance with the provisions of the circular, the bank had not recognised interest income on 435 Lakhs and created a standard asset provision on 461 Lakhs in respect of such accounts.
5. In accordance with the RBI Circular on Basel III capital regulations dated July 01, 2015, as amended and RBI circular dated March 31, 2015 on prudential guidelines on Capital Adequacy and Liquidity Standards amendments, Banks are required to make Pillar III disclosures including leverage ratio and liquidity coverage ratio under Basel III framework. The Bank has made these disclosures which are available on its website at the following link.
These disclosures have not been subjected to a limited review by the Statutory Central Auditor.
6. In computing the Segment information certain estimates and assumptions have been made by the management which have been relied upon by the Statutory Central Auditor.
7. Previous period's I year's figures have been regrouped, wherever necessary to conform to the c urrent period's classification.
