Banking (2)

CONSTITUENTS OF BALANCE SHEET

Presented By,Avinash SinghJyoti PrakashRajni TiwariParth PatelRoohina TShubham NaharPriyanka Singh

Team- 3

Balance sheet

• The balance sheet is an accounting statement that summarizes the various assets, liabilities and equities held by a company on a specific date.

• Assets = Liabilities + Equity

• There are 18 such schedules which forms the constituents of a balance sheet of a commercial bank.

SCHEDULE 1 – CAPITAL

• Authorised Capital

• Issued Capital

• Subscribed Capital

• Called-up Capital

SCHEDULE 2 – RESERVES & SURPLUS • Statutory Reserves

• Capital Reserves

• Capital Reserve on Consolidation

• Share Premium

• Other Reserves (specify nature)

• Revenue and other Reserves

• Balance in Profit and Loss Account

SCHEDULE 3 – DEPOSITS

• Banks take deposits from savers and pay interest on some of these accounts. They pass these

funds on to borrowers and receive interest on the loans.

• Their profits are derived from the spread between the rate they pay for funds and the rate they

receive from borrowers.

• This ability to pool deposits from many sources that can be lent to many different borrowers

creates the flow of funds inherent in the banking system.

• By managing this flow of funds, banks generate profits, acting as the intermediary of interest

paid and interest received, and taking on the risks of offering credit.

Key Findings

• The deposits of Bank rose by 15.94% to `13,94,409 crores over the previous year’s level of

`12,02,740 crores.

• Savings Bank Deposits increased by 13.1% to `4,69,262 crores from `4,14,907 crores in March

2013.

• Under Savings Bank, 421 lakhs new accounts were opened during the year which were 46.7%

higher than 287 lakhs accounts opened during the previous year.

• In current account also, your Bank logged in a growth of 22.2% with new account accretion of

269 lakhs.

SCHEDULE 4 – BORROWINGS

• Banks are required to maintain reserves against their deposits. They borrow

money when their reserves dip below the required level.

• When a bank falls into this situation, it has two choices –

• It can borrow from the Reserve Bank or

• it can turn to another bank that has a reserve surplus.

SCHEDULE 5 – OTHER LIABILITIES AND PROVISIONSI Subordinated Debt for Tier II Capital

II. Bills payable

III. Inter-office (Inter-branch)adjustments (net)• a) Parent• b) Subsidiaries

IV. Intra-Group Adjustment (net)

V. Interest accrued

VI. Tax Liabilities• a) Current tax liabilities• b) Deferred tax liabilities

V. Others (including provisions, give details)

SCHEDULE 6 – CASH AND BALANCES WITH RESERVE BANK OF INDIA

I. Cash in hand (including foreign currency notes)

II. Balances with Reserve Bank of India• (i) in Current Account• (ii) in other Accounts

Schedule 7- Balances With Banks And Money At Call & Short Notice1) In India

a) Balance With R.B.I (Other than current accounts)

Includes balances held with the Reserve Bank of India other than in current accounts, if any.

b) Balances with other banks in India-Current Account-Deposit Account

c) Money at call and short notice with banks and other institutions

2) Outside India-Current Account-Deposit Account



Includes all balances with banks in India (including co-operative banks).






Includes deposits repayable within 15 days or less than 15 days’ notice lent in the inter-bank call money market.






Includes balances held by foreign branches and balances held by Indian branches of the banks outside India.




Schedule 7- Balances With Banks And Money At Call & Short NoticeMONEY AT CALL AT SHORT NOTICESMONEY AT CALL:

BANK HAS LENT MONEY TO ANOTHER BANK WHICH WILL BE PAID ONCE CALLED OVER THE PHONE WITHIN 24 HOURS

MONEY AT SHORT NOTICES:

MONEY LENT TO OTHER BANKS BUT IT WILL BE PAID AFTER GIVING SHORT NOTICES TO OTHER BANKS WHICH WILL BE PAID WITH IN 3 DAYS

Schedule 8 - INVESTMENTS1) Investments in India

a) Government Securitiesb) Other approved Securities

Includes Central and State Government securities and Government treasury bills. Securities other than Government securities, which according to the Statutes are treated as approved securities, should be included here.

c) Shares

d) Debentures & Bonds

e) Investments in subsidiaries/associate companies.

f) Others

2) Investments outside Indiaa) Government securities (including local

authorities)b) Others



Investments in shares of companies and corporations not included in item (b) should be included here.

c) Shares



f) Others





Investments in debentures and bonds of companies and corporations not included in item (b) should be included here.

c) Shares



f) Others





Investments in subsidiaries/associate companies should be included here. A company will be considered as an associate company for the purpose of this classification if more than 25% of the share capital of that company is held by the bank. Includes residual investments, if any, like gold.

c) Shares



f) Others





All foreign Government securities including securities issued by local authorities may be classified under this head. All other investments outside India may be shown under this head

c) Shares



f) Others



Schedule 9- Advances A.1) Bills purchased and Discounted2) Cash credits, overdrafts and loans repayable on demand3) Term loans

In classification under Section ‘A’, all outstanding's – in India as well as outside – less provisions made, will be classified under three heads as indicated and both secured and unsecured advances will be included under these heads.

B1) Secured by tangible assets2) Covered by Bank/Government Guarantee3) Unsecured

C. Advances in India1) Priority sectors2) Public sector 3) Banks4) Others

II. Advances outside India1) Due from banks2) Due from Others


All advances or part of advances which are secured by tangible assets may be shown here. The item will include advances in India and outside India.





Advances should be broadly classified into ‘Advances in India’ and ‘Advances outside India’.

Advances in India will be further classified on the sectorial basis as indicated.

Advances to sectors which for the time being are classified as priority sectors according to the instructions of the Reserve Bank are to be classified under the head ‘Priority sectors’.

Advances to Central and State Governments and other Government undertakings including Government companies and corporations which are, according to the statutes, to be treated as ‘public sector’.




Schedule 10 – Fixed AssetsI. Premises

Premises wholly or partly owned by the banking company for the purpose of business including residential premises should be shown against ‘Premises’.

II. Other Fixed Assets (including furniture and fixtures)

III. Capital work-in-progress or premises under construction

Schedule 10 – Fixed AssetsI. Premises subsequent to the reduction or

revaluation should show the revised figures with the date and amount of revision made.

Motor vehicles and all other fixed assets other than premises but including furniture and fixtures should be shown under this head.

II. Other Fixed Assets (including furniture and fixtures)

III. Capital work-in-progress or premises under construction

A.Basis of Preparation

B. Use of Estimates

C. Significant Accounting Policies:

SCHEDULE 17- SIGNIFICANT ACCOUNTING POLICIES

1. Revenue recognition

2. Investments

3. Loans /Advances and Provisions thereon:

4. Floating Provisions:

5. Provision for Country Exposure:

5. Provision for Country Exposure:

7. Fixed Assets Depreciation and Amortisation:

8. Leases:

9. Impairment of Assets:

10. Effect of changes in the foreign exchange rate:

10.1 Foreign Currency Transactions

10.2 Foreign Operations

11. Employee Benefits:

11.1 Short Term Employee Benefits:

11.2 Long Term Employee Benefits

12. Taxes on income

13. Earnings per Share:

14. Provisions, Contingent Liabilities and Contingent Assets:

15. Bullion Transactions:

16. Special Reserves

17. Share Issue Expenses:

SCHEDULE 18 : NOTES TO ACCOUNTS

1. List of Subsidiaries/Joint Ventures/Associates considered for preparation of consolidated financial statements.

2. Share capital.

3. Employee Benefits.

3.1.1 Defined Benefit Plans

3.1.2 Defined Contribution Plans

3.1.3 Other Long term Employee Benefits

3.1.4 Unamortised Pension & Gratuity Liabilities

3.2 Segment Reporting

3.3 Related Party Disclosures:

3.4 Leases

3.5 Earnings per Share

3.6 Accounting for Taxes on Income

3.7 Impairment of assets

3.8 Provisions, Contingent Liabilities & Contingent Assets

THANK YOU!!

Banking (2)

Documents

Transcript of Banking (2)