Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: TDS :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: VAT RATES :: form 3cd :: cpt :: list of goods taxed at 4% :: empanelment :: Central Excise rule to resale the machines to a new company
 
 
News Headlines »
 Income tax dept notifies amendments for sharing taxpayer information
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya

Disclosures about exposures
July, 13th 2006

Standard Chartered Bank's Indian branches account for the maximum total liability on account of outstanding forward and derivative contracts. The amount as at end-March 2005 is Rs 2,55,403 crore, as per data analysed by Global Data Services of India Ltd, Pune, culled from disclosures under contingent liabilities.

Forward and derivative contracts are roughly in the ratio of 2:3. And, set against the total liabilities (that is, deposits, borrowings, and other liabilities and provisions) of the bank, amounting to Rs 34,052 crore, the exposure towards forward and derivative contracts works out to 750 per cent.

But there are larger relative exposures that the analysis reveals: For HSBC's Indian branches, it is 823 per cent, and for ABN AMRO, a whopping 1,156 per cent.

In terms of a ranking by absolute exposure, ICICI Bank comes second with a total liability towards outstanding forward and derivatives contract adding to Rs 2,34,702 crore. However, this is only 152 per cent of total liabilities of the bank. With a 288 per cent exposure, HDFC Bank leads the Indian banks, though occupying a distant fourth spot in a ranking by leverage, after the 750 per cent exposure of Standard Chartered.

IDBI and Bank of India appear to be the most conservative in the list, with a forward and derivative exposure of 69 per cent and 75 per cent of total liability respectively. At 137 per cent and 210 per cent, UTI Bank and Kotak Mahindra Bank had a larger exposure, though ranking last among the nine banks.

No wonder, therefore, that the Reserve Bank of India spoke in its recent discussion paper on `Derivative and Hedge Accounting by Banks' about the growing complexity, diversity and volume of derivative products. There is an "urgent need for adoption of uniform principles for recognition, classification, measurement and disclosure of derivatives and their inherent risks in banks' books of accounts and financial statements," the central bank had said.

It would be insightful, therefore, to attempt a similar exercise vis--vis the net worth of the banks, and also for the year ended March 31, 2006.

D. Murali

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions