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RBI No. 2005-06/395
DBOD.BP.BC No. 86 / 21.04.018/ 2005-06
May 29, 2006
The Chairmen/Chief Executives of
All Commercial Banks
(excluding RRBs)
Dear Sir,
Disclosure in Balance Sheets – Provisions and Contingencies
In order to increase transparency,
Reserve Bank of India has from time to time issued circulars to banks requiring
disclosures in the Notes on Account to their Balance Sheets. These instructions
were consolidated in the master circular DBOD.No.BP.BC.59/21.04.018/2005-06
dated January 30, 2006.
2. In terms of the master circular,
the provisions made during the year along with the corresponding figures for
the previous year towards NPA, standard assets, depreciation in the value of
investments, income tax, etc are to be disclosed under various heads such as
Asset Quality, Investments and Miscellaneous.
3. To facilitate easy reading
of the financial statements and to make the information on all Provisions and
Contingencies available at one place, it has been decided that banks may henceforth
disclose in the ‘Notes on Account’ the following information, in addition to
the existing disclosure requirements as per the master circular.
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Break up of ‘Provisions
and Contingencies’ shown
under the head Expenditure in Profit and Loss Account
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Current Year
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Previous Year
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Provisions for depreciation
on Investment
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Provision towards NPA
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Provision towards Standard
Asset
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Provision made towards
Income tax
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Other Provision and Contingencies
(with details)
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Yours faithfully,
(Prashant Saran)
Chief General Manager-in-Charge
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