What changed
This master circular consolidates all previous disclosure instructions for all-India term-lending and refinancing institutions up to June 30, 2012, replacing the July 1, 2011 circular. It updates guidelines on disclosures in 'Notes to Accounts' for financial statements, covering areas like capital, asset quality, and risk.
What it means for you
For Exim Bank, NABARD, NHB, and SIDBI, this circular mandates uniform, detailed disclosures to improve transparency and comparability. Banks must ensure their financial statements include required disclosures on CRAR, NPAs, credit concentration, and derivatives, as these are minimum standards.
What you must do
- Review and update your 'Notes to Accounts' to include all required disclosures from this master circular.
- Ensure CRAR, core CRAR, and supplementary CRAR are disclosed along with risk-weighted assets.
- Disclose net NPA percentages, movement in NPAs, and provisions for standard assets, NPAs, and investments.
- Report credit exposure to the largest single borrower as a percentage of capital funds and total assets.
- Include qualitative and quantitative disclosures on risk exposure in derivatives as per Annex 2.
Who it affects
Exim Bank, NABARD, NHB, SIDBI, Auditors of these financial institutions
What is the effective date of these disclosure norms?
The norms have been effective since the financial year 2000-2001, and this master circular consolidates all updates up to June 30, 2012.
Are these disclosures mandatory or just recommendations?
They are mandatory minimum requirements to be included in the 'Notes to Accounts' of financial statements, though institutions may make additional disclosures if desired.
Which institutions are covered by this circular?
The circular applies to all-India term-lending and refinancing institutions: Exim Bank, NABARD, NHB, and SIDBI.