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in subsidiaries, joint ventures and associates are valued at historical cost. A
provision is made for diminution, other than Temporary, for each investment
individually.
4.3.5. Available for Sale and Held for Trading categories:
Investments held under AFS and HFT categories are individually revalued at
the market price or fair value determined as per RBI guidelines, and only the net
depreciation of each group for each category is provided for and net appreciation,
is ignored in case of AFS. On provision for depreciation, the book value of the
individual securities remains unchanged after marking to market.
4.3.6. Security Receipts (SRs) issued by an Asset Reconstruction Company (ARC) are
valued in accordance with the guidelines applicable to non-SLR instruments.
Accordingly, in cases where the security receipts issued by the ARC are limited
to the actual realization of the financial assets assigned to the instruments in the
concerned scheme, the Net Asset Value, obtained from the ARC, is reckoned for
valuation of such investments.
4.3.7. Investments are classified as performing and non-performing based on guidelines
issued by RBI from time to time.
5. Loans / Advances and Provisions thereon
5.1. Loans and Advances are classified as performing and non-performing, based on
the guidelines issued by RBI.
5.2. Non-performing Assets (NPAs) are classified into sub-standard, doubtful and loss
assets, based on the guidelines issued by RBI.
5.3. Provisions for NPAs are made as per the extant guidelines prescribed by RBI.
5.4. The sale of NPA is accounted as per the guidelines prescribed by RBI. If the sale is
at a price below the net book value (NBV), the shortfall is debited to the profit and
loss account, and in case of sale for a value higher than NBV, the excess provision
is retained and utilized to meet the shortfall / loss on sale of other financial assets.
5.5. In case of restructured/rescheduled assets, provisions are made in accordance
with the guidelines issued by RBI.
5.6. In the case of loan accounts classified as NPAs, an account may be reclassified as a
performing asset if it confirms to the guidelines prescribed by RBI.
5.7. Amount recovered against debts written off in earlier years are recognised as
286 | Annual Report 2020-21
provision is made for diminution, other than Temporary, for each investment
individually.
4.3.5. Available for Sale and Held for Trading categories:
Investments held under AFS and HFT categories are individually revalued at
the market price or fair value determined as per RBI guidelines, and only the net
depreciation of each group for each category is provided for and net appreciation,
is ignored in case of AFS. On provision for depreciation, the book value of the
individual securities remains unchanged after marking to market.
4.3.6. Security Receipts (SRs) issued by an Asset Reconstruction Company (ARC) are
valued in accordance with the guidelines applicable to non-SLR instruments.
Accordingly, in cases where the security receipts issued by the ARC are limited
to the actual realization of the financial assets assigned to the instruments in the
concerned scheme, the Net Asset Value, obtained from the ARC, is reckoned for
valuation of such investments.
4.3.7. Investments are classified as performing and non-performing based on guidelines
issued by RBI from time to time.
5. Loans / Advances and Provisions thereon
5.1. Loans and Advances are classified as performing and non-performing, based on
the guidelines issued by RBI.
5.2. Non-performing Assets (NPAs) are classified into sub-standard, doubtful and loss
assets, based on the guidelines issued by RBI.
5.3. Provisions for NPAs are made as per the extant guidelines prescribed by RBI.
5.4. The sale of NPA is accounted as per the guidelines prescribed by RBI. If the sale is
at a price below the net book value (NBV), the shortfall is debited to the profit and
loss account, and in case of sale for a value higher than NBV, the excess provision
is retained and utilized to meet the shortfall / loss on sale of other financial assets.
5.5. In case of restructured/rescheduled assets, provisions are made in accordance
with the guidelines issued by RBI.
5.6. In the case of loan accounts classified as NPAs, an account may be reclassified as a
performing asset if it confirms to the guidelines prescribed by RBI.
5.7. Amount recovered against debts written off in earlier years are recognised as
286 | Annual Report 2020-21
