BANK’S POLICY ON DISCLOSURES UNDER PILLAR 3 2018 · statements, except DF-2, DF-3, DF-4 which will be made on quarterly basis. Disclosures formats, DF-17 and DF-18 (Leverage ratio)

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BANK’S POLICY ON DISCLOSURES UNDER

PILLAR 3

2018

_________________________________

Reviewed on: 05th March 2018

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Executive Summary

Background & Purpose

The Disclosure Policy is based on Bank of Botswana instructions vide circular no

01/2016 dated 07th March 2016 on Implementation of Pillar 3 Disclosure

Requirements and RBI Master Circular No. DBR.No.BP.BC.1/21.06.201/2015-16

dated 1st July, 2015 on ‘Basel-III Capital Regulations’

The purpose of Market Discipline (detailed in Pillar 3) is to provide a set of

disclosures which will allow market participants to assess key pieces of information

about the Bank/Institution.

Scope

Pillar 3 applies at the top consolidated level of the Banking Group to which the Basel-

III Framework applies.

Purpose

Means of informing the market about the Bank's exposure to various risks,

Enhance comparability across the Banking System

Publication

Pillar 3 disclosures to be published/placed on Bank’s website concurrent with

publication of financial results/statements

The Disclosure Policy consists of the following Annexures:

Annexure-A:

Formats on which the disclosures are to be made: DF-1 to DF-14, DF-16 to DF-18 as

prescribed by RBI and additional voluntary disclosure format DF-GR for the State

Bank Group. (DF-15 is applicable to private sector banks and foreign bank branches

in India, and is not part of the Banks’ Disclosure Policy). As per Bank of Botswana

the formats are in the form of Table (Table 21 to Table 38 and 38a).

Annexure-B:

Departments responsible for compilation.

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Policy for Disclosures under Pillar III (Market Discipline) of Basel-III Capital

Regulations

1. Preamble:

As per Bank of Botswana instructions vide circular no 01/2016 dated 07th March 2016 on

Implementation of Pillar 3 Disclosure Requirements, Bank is required to submit the required

disclosures starting 31st March 2016 to Bank of Botswana on quarterly Basis.

The Basel Framework consists of three mutually reinforcing components or Pillars, as

under:-

Pillar 1- Minimum Capital Requirements,

Pillar 2- Supervisory Review and Evaluation Process, and

Pillar 3- Market Discipline.

2. Background:

This Disclosure Policy is based on the guidelines for disclosure requirements as per RBI

Master Circular No. DBR.No.BP.BC.1/21.06.201/2015-16 dated 1st July, 2015 on Basel-III

Capital Regulations which contain detailed guidelines in respect of disclosure standards to be

followed by the Bank under Pillar 3 (Market Discipline, Part C, para 14) and Disclosure

formats as contained in Annex-18. As per Bank of Botswana instructions vide circular no

01/2016 dated 07th March 2016 on Implementation of Pillar 3 Disclosure Requirements, the

disclosure formats have been named as Table 21 to Table 38 and 38a.

In order to ensure comparability of regulatory capital and regulatory deductions and the

objective of enhanced disclosures under Basel-III, additional common templates have been

prescribed.

2.1 Purpose of Market Discipline

The purpose of Market Discipline (detailed in Pillar 3) is to complement the minimum capital

requirements (detailed under Pillar 1) and the Supervisory Review Process (detailed under

Pillar 2).

2.2 Achieving appropriate disclosure

Market Discipline is sought to be achieved by furnishing a set of disclosures which will

allow market participants to assess key pieces of information about the Bank/Institution on:

a) Scope of application,

b) Capital,

c) Risk exposures,

d) Risk assessment processes

e) Adequacy

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2.3 Scope of disclosures

a) Pillar 3 applies at the top consolidated level of the Banking Group to which

the Basel-III Framework applies.

b) Disclosures related to individual banks within the Group shall not be made by

the Parent Bank.

c) However, in the disclosures of Common Equity Tier I, Tier I and Total

Capital Ratios by the top consolidated entity (in Formats DF-1 to DF-2,

detailed later), an analysis of the Capital Adequacy Ratios of the significant

Subsidiaries within the Group is to be made, in order to recognise the need for

these Subsidiaries to comply with the Framework and other applicable

limitations on the transfer of funds or capital within the Group.

d) Pillar 3 disclosures will be required to be made by the individual Banks on a

standalone basis when they are not the top consolidated entity in the Banking

Group.

3. Objectives of the Policy :

The Disclosure Policy seeks to address the Bank's approach for

a) Determining what disclosures the Bank will make, and

b) Internal controls the Bank exercises over the disclosure process.

4. Purpose of Disclosures :

The Policy seeks to set the requirements under Disclosures based on a common, consistent

and comprehensive Regulatory framework to

a) Serve as an effective means of informing the market about the Bank's exposure to

various risks,

b) Enhance comparability across the Banking System, and

c) Contribute to a safe and sound banking environment.

5. Pillar 3 Disclosures Vs Accounting Standards and Audit Requirements:

As per Regulatory Guidelines, Pillar 3 Disclosures do not conflict with disclosure

requirements under Accounting Standards, which are broader in scope. Also, Pillar 3

Disclosures are not required to be audited by External Auditors. However, all Reporting

Units/ Departments must ensure that Pillar 3 disclosures are subjected to adequate validation,

and are consistent with the audited statements, as indicated in Paragraphs 9 to 11 below.

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6. Penal Provisions for non-compliance:

Non-compliance with the prescribed disclosure requirements shall attract a Regulatory

penalty, including a financial penalty. Further the Pillar 3 disclosures to be published/placed

on Bank’s website concurrent with publication of financial results/statements. Hence, all

Reporting Units/ Departments must ensure that the data relating to disclosures is furnished to

the respective compiling departments within stipulated timeline given below:

REPORT ACTION DUE DATE

Daily Liquidity Compile D-Liq and email to BSD - Prudential Daily

Monthly Public Notice

of Interest Rates

Publish current interest rates on 2 local newspapers,

then scan copies and email to BSD - Consumer

Conductor

By the 5th of Each

Month

Monthly Basel II

Return

Generate Return and email to

[email protected] and print 2 copies, get

MD’s sign off then hand deliver to BSD - Prudential

10th of Each Month

Quarterly Basel II

Return




10th of Each Month

Year End Basel II

Return




10th of April

Audited Draft

Financials

The audited draft financials shall be submitted to

BSD - Prudential for Trilateral meeting preparation

3 weeks prior to

the

Trilateral Trilateral meetings with each bank and its auditors,

to discuss matters relevant to the Central Bank's

supervisory responsibilities which have arisen in the

course of the statutory audit of that bank, including

relevant aspects of the bank's business, its accounting

and internal control systems, and its annual balance

sheet and profit and loss accounts

Date TBA by BoB

Bilateral Bilateral meetings present an opportunity to look at a

bank’s business and financials, as well as make a

follow-up on some issues that may have been

discussed at the trilateral meeting

Date TBA by BoB

Bilateral with bank

Auditors

The Central Bank may, if it considers it desirable or

necessary in the interests of depositors, from time to

time arrange bilateral meetings with auditors of

banks.

Date TBA by BoB

mailto:[email protected]



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Quarterly Pillar III

Disclosure

The quarterly regulatory capital disclosures and any

other interim Pillar III disclosures such as material

changes of information on risk exposures should be

published within five weeks after the end of the

relevant quarter in line with the statutory Basel

returns running from January to December each year

Five Weeks after

end of March,

June, September,

December

Annual Pillar III

Disclosure

Publish the banks Pillar III report concurrently with

its annual audited financials for the corresponding

period (i.e. within 3 months from financial year-end

date but also subject to approval by BoB during the

Trilateral meeting)

By 30th June of

each year

7. Frequency, Mode of Publication and Content of Disclosures:

i. The Disclosures shall be made as per the Regulatory Formats DF-1 to DF-14, DF-16

to DF-18 as well as on an additional Disclosure Format for Group Risk, DF-GR

(detailed hereafter) of SBI and Table 21 to Table 38 and 38a prescribed by BOB. The

linkage between DF formats prescribed by SBI and Table formats prescribed by BOB

is given in Annexure B.

ii. DF-3 (Credit Risk: General Disclosures for All Banks) has been revised and DF-16

(Equities- Disclosure for Banking Book Positions) DF-17 (Summary comparison of

accounting assets v/s leverage ratio exposure measures) and DF-18 (Leverage ratio

common disclosure template) have been added to the Disclosures under Basel III.

(DF-15 is not part of this policy as it pertains to private sector banks and foreign

banks in India).

iii. Pillar 3 Disclosures, both Qualitative and Quantitative, shall be made as at the end of

March and September every year along with the Annual Financial/ half yearly

statements, except DF-2, DF-3, DF-4 which will be made on quarterly basis.

Disclosures formats, DF-17 and DF-18 (Leverage ratio) have been prescribed at least

once in a half year. However as the Leverage ratio has to be reported to RBI on

every quarter, the DF-17 and DF 18 is proposed to be made on quarterly basis. DF-

GR will be made on annual basis as hitherto.

iv. DF-13 and DF-14 (main features template and provision of full terms and conditions

of capital instruments), will be updated concurrently, whenever a new capital

instrument is issued and included in capital, or whenever there is redemption,

conversion/write-down or other material change in the nature of an existing capital

instrument.

v. DF-11 (Part II- Composition of Capital) to be used during the transition period before

March 31, 2017 and DF-12 (Composition of Capital- Reconciliation Requirements)

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will provide a full reconciliation of all regulatory capital elements back to the Balance

Sheet through a three step approach, Step 1 (disclose reported Balance Sheet), Step 2

(Expand the lines of Balance sheet to display all components) and Step 3 (map each

component under Step 2 to the composition of Capital Disclosure template).

vi. The Annual Disclosures shall be made both in the Bank’s published Annual Report as

well as on the Website. For disclosures which are operationally inconvenient to

publish in financial results/statement, a direct link to the Bank’s website where the

disclosures are available will be mentioned in the financial results/statements.

vii. The Pillar 3 disclosures will be concurrent with publication of financial

results/statements

viii. The Disclosure on the Website shall be made in a web page titled ‘Basel III

Disclosures’ and the link to this page should be prominently provided on the

Homepage of the Bank’s website under “Regulatory Disclosures Section”.

ix. In addition to the above, the Bank shall also disclose

a) Common Equity Tier 1 Capital,

b) Additional Tier 1 Capital,

c) Tier 1 Capital

d) Tier 2 Capital

e) Common Equity Tier 1 Ratio

f) Tier 1 Ratio and

g) Total Capital Adequacy Ratio

8. Period of Availability of Disclosures:

Each of the above Disclosures pertaining to a Financial Year will be made available on the

website until Disclosures of the third subsequent Financial Year (March end) are made. For

example, Disclosures for the financial year 2012 - 13 (i.e., as at the end of

June/September/December 2012 and March 2013) will be available until Disclosures as on

the 31st March 2016 are made.

9. Materiality:

BOB/ RBI has not set any specific thresholds for Disclosures in general, except for specific

Disclosures as indicated in the respective Disclosure Formats. However, the information

furnished in the Disclosures shall conform to the Materiality concept. In terms of the

Accounting Standards, information is regarded as material if its omission or misstatement

could change or influence the assessment or judgment of a user relying on that information

for the purpose of making economic decisions. Accordingly, all Reporting Units/

Departments must ensure that all relevant material information is disclosed.

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10. Proprietary & Confidential Information:

While designing the Disclosure formats adequate care has been exercised by the Basel

Committee / RBI to ensure that the requirements set out strike a measured balance between

the need for meaningful disclosure and the protection of proprietary and confidential

information. [Proprietary information encompasses information (for example, on products

or systems), which, if shared with competitors would render the Bank's investment in these

products / systems less valuable, and hence, would undermine its competitive position.

Information about customers is often confidential, in that it is provided under the terms of a

legal agreement or counterparty relationship]. Accordingly, all Reporting Units/

Departments must keep the above principles in view while deciding on the type of

information to be disclosed about the Bank’s customer base, as well as details on the internal

processes/ arrangements, methodologies used, parameter estimates, data etc.

11. Validation:

All disclosures should be subjected to adequate validation. Since information in the Annual

Financial Statements is generally audited, the additional material published with such

statements must be consistent with the audited statements. In addition, supplementary

information that is published should also be subjected to sufficient scrutiny to satisfy the

validation issue. All Reporting Units/ Departments must ensure that all information

submitted for disclosure is duly validated.

Further as part of the regular audit process Inspection & Management Audit department to

conduct a review to assess the effectiveness of the disclosure policy.

12. The Disclosure Formats:

The Disclosure Formats as prescribed by RBI (DF-1 to DF-14, DF-16 to DF-18) and the

additional Disclosures for the State Bank Group on DF-GR, detailed in Paragraph 13 below,

to be used for reporting are placed at Annexure-A. The particulars, namely, Periodicity of

Disclosure, Mode of Publication, Name of the Department responsible for compilation and

the Name(s) of the Source Department(s) where information is available, etc., have also been

indicated in the respective Formats which are intended for internal use. For expeditious

compilation, all Reporting Units/ Departments must submit the Disclosure related

information, both in hard copy (duly authenticated) as well as in soft copy, within the

timelines specified in Paragraph 6 above.

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13. Additional Disclosures (Over and above those mandated by RBI)/ BOB:

The mandatory Disclosures set out by RBI / BOB provide for the minimum information

generally required by the market participants. However, the Banks may disclose additional

information, over and above the minimum stipulated by RBI, to make the Disclosures more

meaningful and appropriate, so as to reflect the correct state of affairs of the consolidated

entity, in terms of Paragraph 2.3 (a) above. Viewed from this perspective, the Disclosures

prescribed by RBI are considered to be, by and large, adequate. However, SBI Group has

been recognized as a major financial conglomerate with significant presence in various

financial markets. Therefore, the Bank’s Group Risk Management Policy prescribes that the

Group’s Firewall procedures should form part of the overall disclosure to be made under

Pillar 3. Accordingly, a voluntary Disclosure Format named ‘DF-GR’ for Group Risk has

been devised, in addition to the mandatory Disclosure Formats prescribed by RBI.

The salient features of this Disclosure Format (DF-GR) are given below:

a) DF-GR covers all those Group entities which are covered by the Bank’s Group Risk

Management Policy that is; Associates, Subsidiaries and Joint Ventures of the State

Bank of India.

b) DF-GR contains a certification to the effect that

i. all the Group entities adhere to good Corporate Governance practices and

good Disclosure practices;

ii. all intra-Group transactions have been effected on Arm’s Length basis, both as

to their commercial terms and as to matters such as the provision of security;

and

iii. all other covenants of the Bank’s Group Risk Management Policy have been

meticulously complied with.

c) It is explicitly made clear to the public that common marketing, branding and use of

SBI’s Symbol by a Group entity should not be construed as an implicit support of SBI

to that Group entity.

d) DF-GR contains information on the details of financial support, if any, between

different entities of the Group. [While no regulatory definition of the phrase

‘Financial Support’ is available, since RBI recognizes the need for Qualitative

Judgment of the Banks, the Intra-Group transactions which lead to the following may

be broadly treated as ‘Financial Support’:

i. inappropriate transfer of capital or income from one entity to the other in the

Group;

ii. vitiation of the Arm’s Length Policy within which the Group entities are

expected to operate;

iii. adverse impact on the solvency, liquidity and profitability of the individual

entities within the Group;

iv. evasion of capital or other regulatory requirements;

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v. entering into cross default clauses whereby a default by a related entity on an

obligation (whether financial or otherwise) is deemed to trigger a default on

the Bank in its obligations].

e) DF-GR contains only qualitative information, to be published annually both in the

Bank’s Annual Report as well as on the website.

14. Roles and Responsibilities of the Reporting Departments:

a) The concerned Reporting Unit/Source Department, as indicated in the relative

Disclosure Format, should ensure timely compilation and submission of hard and soft

copies of the respective Disclosure Format, duly approved by their Group Head.

b) Data should be sourced by the Reporting Units/Source Departments from a single

reliable, auditable source, such as Finacle Core/ Finacle Treasury etc. The

information shall, thereafter be collated by the respective Department which is

responsible for compilation.

c) The required information for the Disclosures shall be furnished (in hard and soft

copies) by the respective Departments, within the timelines indicated above.

d) The Department responsible for submission of data in the respective Disclosure

Formats (Annexure-B) should ensure that the principles set out in the Policy, most

importantly, those relating to Validation and Materiality, are duly complied with.

e) While the sources of information to be furnished in the Disclosure Formats are

indicated in the respective Formats, the Departments responsible for compilation may

also collect the required information from any other source /Department as deemed

appropriate.

f) In respect of the Formats which contain both Qualitative as well as Quantitative

parameters, the concerned Departments should ensure that these are consistent in all

respects.

g) In view of the fact that BOB/ RBI recognises the need for Qualitative judgment on

the part of Banks, the Departments concerned may take a view on the material /

information to be disclosed within the broad framework of this Policy and the Bank’s

/ RBI Guidelines in vogue, with the approval of the respective Group Head. The need

for the judgment arises especially in respect of Qualitative Disclosures where there

may be a scope for interpretation.

h) The completed Formats should be sent to Compliance/ Risk Management

Department along with a confirmation that the provisions set out in this Policy as well

as the subsequent Guidelines, if any, issued by BOB/ RBI/Bank have been duly

complied with.

i) All background papers in connection with the Disclosures should be preserved by the

respective Departments, which will be subject to scrutiny by Internal / External

Auditors/ Regulators.

j) The Compliance Department / Group Risk Management Department shall forward the

completed Disclosure Formats to VP (Ops & Systems) for publication of the same on

the Bank’s Website and/or the Bank’s Annual Report, as the case may be. However,

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DF-13 and DF-14 will be updated on Bank’s website on an on-going basis, as and

when there is any change due to issue/call/repayment/redemption or any material

change in the capital instruments. The changes will be advised by VP (Ops &

Systems) to Compliance Department/ Group Risk department who will submit the

DF-13 and DF-14 uploading/publication.

k) Considering the importance attached to Market Discipline under the Basel III

Framework, the Compliance Department shall furnish a Compliance Certificate, to be

drawn up by them for the purpose, at periodical intervals to the Appropriate Authority

on compliance of various provisions contained in this Policy and the Guidelines

issued from time to time by the BOB/ Bank / RBI.

15. Review:

This Policy will be reviewed annually; any additional changes to disclosures issued by

BOB/ RBI will form part of the policy.

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Bank of Botswana Guidelines

DISCLOSURE TEMPLATES

(d) The Disclosure Templates (Extract from Basel II Guidelines)

12.18 A bank shall, at a minimum, disclose the information as set out in the Disclosure Templates

below. In order to ensure comparability of these templates amongst different jurisdictions, a

bank should not add, delete or change the definition of any row in the templates and to

report a value of zero for the line items that are not applicable, such as capital buffers, that

are not yet implemented in Botswana. The only, exception relates to the expansion of rows

as under Table 26, for reconciliation purposes. The disclosure templates cover the following

main areas:

(i) Regulatory Capital Requirements

12.19 Tables 22 and 24 are designed to capture the capital positions of a bank in terms of capital

structure and capital adequacy, respectively, whereas Table 23 gives explanations of each

row in Table 22. In addition, Tables 28 and 29 provides the main features of the regulatory

capital instruments and explanation of each feature, respectively.

12.20 A bank should further disclose a full reconciliation of all regulatory capital elements under

Table 21, back to the balance sheet in the audited financial statements, through the following

steps:

Step 1: Disclose the reported balance sheet under the regulatory scope of

consolidation (refer to Table 25). Disclose how the balance sheet in the published

financial statements changes when the regulatory scope of consolidation is applied. If

identical, a bank should state that there is no difference between the regulatory

consolidation and accounting consolidation, and move to step 2 below. In addition, a

bank is required to disclose the list of the legal entities that are included within the

accounting scope of consolidation, but excluded from the regulatory scope of

consolidation and vice versa. If some entities are included in both the regulatory

scope of consolidation and accounting scope of consolidation, but the method of

consolidation differs between these two scopes, a bank is required to list these legal

entities separately, and explain the differences in the consolidation methods.

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Step 2: Many of the elements used in the calculation of regulatory capital cannot be

readily identified from the face of the balance sheet. Therefore, a bank should expand

the lines of the balance sheet under the regulatory scope of consolidation to display

all the components that are used in the composition of capital disclosure template

(Table 26), and assign a reference number to the components.

Step 3: Map each of the components that are disclosed in step 2 above to the

composition of capital disclosure template (Table 27)

(ii) Risk Management Processes

12.21 Consistent with the International Financial Reporting Standards, a bank must disclose both

the quantitative and qualitative aspects of each separate risk area (e.g; credit risk, market risk,

operational risk, interest rate risk in the banking book and equity risk). In describing its risk

management objectives and policies, a bank must include:

Strategies and processes for managing those risks;

The structure and organisation of the relevant risk management function,

including the title or position of Board and senior management official that

oversees risk management;

The scope and nature of risk reporting and measurement systems;

Policies for hedging and mitigating risks, strategies and processes for monitoring

the continuing effectiveness of hedges and mitigants; and

A general description of the internal capital adequacy assessment process, as

specified under Pillar II, including a description of the methodologies used.

12.22 Furthermore, a bank shall disclose additional information for the different risks, as described

under Tables 30 - 36.

(iii) Remuneration

12.23 Additional Pillar III disclosure requirements on remuneration cover the main components of

sound compensation practices. As a result, a bank is required to disclose qualitative and

quantitative information about its remuneration practices, and policies as per Tables 38 and

38 (a) covering the following:

The governance/committee structures;

The design or operation of the remuneration and structure, frequency of

review;

The independence of remuneration for risk/compliance staff;

The risk adjustment methodologies;

The link between remuneration and performance;

The long-term performance measures (deferral, claw back); and

The types of remuneration (cash/equity, fixed/variable).

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Annexure-A

Table DF-1: Scope of Application

Name of the head of the banking group to which the framework applies – State Bank of

India

Sr. No Department

Responsible for

Submission

Department

Responsible

for

Compilation

Periodicity Mode of Publication

1 Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL

Half Yearly

Website and Annual

Report

(i) Qualitative Disclosures:

a. List of group entities considered for consolidation

Name of the

entity /

Country of

incorporatio

n

Whether

the

entity is

included

under

accounti

ng scope

of

consolid

ation

(yes /

no)

Explain

the method

of

consolidati

on

Whether

the entity

is

included

under

regulator

y scope

of

consolid

ation225

(yes /

no)

Explain the

method of

consolidation

Explain

the reasons

for

difference

in the

method of

consolidati

on

Explain

the

reasons if

consolidat

ed under

only one

of the

scopes of

consolidat

ion226

225 If the entity is not consolidated in such a way as to result in its assets being included in the calculation of

consolidated risk-weighted assets of the group, then such an entity is considered as outside the regulatory scope

of consolidation. 226 Also explain the treatment given i.e. deduction or risk weighting of investments under regulatory scope of

consolidation

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b. List of group entities not considered for consolidation both under the accounting and

regulatory scope of consolidation

Name of

the entity /

country of

incorporati

on

Principle

activity of

the entity

Total balance

sheet equity

(as stated in the

accounting

balance sheet of

the legal entity)

% of

bank’s

holding

in the

total

equity

Regulatory

treatment of

bank’s

investments in

the capital

instruments of

the entity

Total balance

sheet assets

(as stated in the

accounting

balance sheet of

the legal entity)

(ii) Quantitative Disclosures:

c. List of group entities considered for consolidation

Name of the entity /

country of

incorporation (as

indicated in (i)a.

above)

Principle activity of

the entity

Total balance sheet

equity (as stated in the

accounting balance

sheet of the legal

entity)

Total balance sheet

assets (as stated in the

accounting balance

sheet of the legal entity)

d. The aggregate amount of capital deficiencies227 in all subsidiaries which are not

included in the regulatory scope of consolidation i.e. that are deducted:

Name of the

subsidiaries /

country of

incorporation

Principle

activity of

the entity

Total balance sheet

equity (as stated in the

accounting balance sheet

of the legal entity)

% of bank’s

holding in the

total equity

Capital

deficiencies

227 A capital deficiency is the amount by which actual capital is less than the regulatory capital requirement.

Any deficiencies which have been deducted on a group level in addition to the investment in such subsidiaries

are not to be included in the aggregate capital deficiency.

e. The aggregate amounts (e.g. current book value) of the bank’s total interests in

insurance entities, which are risk-weighted:

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Name of the

insurance

entities /

country of

incorporation

Principle

activity of

the entity

Total balance

sheet equity

(as stated in the

accounting

balance sheet of

the legal entity)

% of bank’s

holding in the

total equity /

proportion of

voting power

Quantitative impact on

regulatory capital of using

risk weighting method

versus using the full

deduction method

f. Any restrictions or impediments on transfer of funds or regulatory capital within the

banking group:

[Footnote numbers under Tables for Disclosure Formats (DF) are kept the same as those in

the RBI Master Circular on Basel III Capital Regulations dated the 1st July, 2015, to

facilitate comparability.]

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Table DF-2: Capital Adequacy

Department

Responsible for Solo

Compilation

Department

Responsible for

Group Compilation


Treasury Deptt,

BSBIBL

Treasury Deptt,

BSBIBL

Quarterly Website and Annual

Report

Qualitative Disclosures

(a) A summary discussion of the bank's approach to assessing the

adequacy of its capital to support current and future activities.

Quantitative disclosures Data Source

(b) Capital requirements for credit risk:

• Portfolios subject to standardised approach

• Securitisation exposures.

(c) Capital requirements for market risk:

• Standardised duration approach;

- Interest rate risk

- Foreign exchange risk (including gold)

- Equity risk

(d) Capital requirements for operational risk:

• Basic indicator approach;

(e) Common Equity Tier 1, Tier 1 and Total Capital ratio:

• For the top consolidated group; and

• For significant bank subsidiaries (stand alone or sub-

consolidated depending on how the Framework is applied).

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Table DF – 3: Credit Risk - General Disclosures for All Banks

Department


Compilation

Department

Responsible for

Group Compilation


Treasury Dept ,

BSBIBL

Treasury Dept ,

BSBIBL

Quarterly Website and Annual

Report


(a) The general qualitative disclosure requirement with respect to credit risk,

including :

Definitions of past due and impaired (for accounting purposes);

Discussion of the bank’s credit risk management policy;

Quantitative Disclosures Data Source

(b) Total gross credit risk exposures 228 Fund based and Non-

fund based separately.

BSBIBL

(c) Geographic distribution of exposures229, Fund based and

Non-fund based separately

BSBIBL

Overseas BSBIBL

Domestic BSBIBL

(d) Industry230 type distribution of exposures, fund based and

non-fund based separately

BSBIBL

(e) Residual contractual maturity breakdown of assets,231 BSBIBL

(f) Amount of NPAs (Gross) BSBIBL

Substandard BSBIBL

Doubtful 1

Doubtful 2

Doubtful 3

Loss

(g) Net NPAs BSBIBL

(h) NPA Ratios BSBIBL

Gross NPAs to gross advances BSBIBL

Net NPAs to net advances

(i) Movement of NPAs (Gross) BSBIBL

Opening balance

Additions

Reductions

Closing balance

(j) Movement of provisions (Separate disclosure for specific

provisions and general provisions with a description of each

type of provisions held)

BSBIBL

Opening balance

Provisions made during the period

Write-off

Write-back of excess provisions

Any other adjustments, including transfers between

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provisions

Closing balance

Write-offs and recoveries that have been booked

directly to the income statement

(k) Amount of Non-Performing Investments BSBIBL

(l) Amount of provisions held for non-performing investments BSBIBL

(m) Movement of provisions for depreciation on investments BSBIBL

Opening balance

Provisions made during the period

Write-off

Write-back of excess provisions

Closing balance

(n) By major industry or counterparty type BSBIBL

Amount of NPA and if available, past due loans,

provided separately;

Specific and general provisions; and

Specific provisions and write-offs during the current

period

(o) Amount of NPAs and past due loans provided separately by

significant Geographical areas including specific and

general provisions

BSBIBL

(*) for Domestic Offices & IBG- for Foreign Offices of SBI

(#) for Group Entities under control of A&S/IBG

($) for Whole Bank (domestic/foreign offices of SBI)

228 That is after accounting offsets in accordance with the applicable accounting regime and without taking into

account the effects of credit risk mitigation techniques, e.g. collateral and netting. 229 That is, on the same basis as adopted for Segment Reporting adopted for compliance with AS 17. 230 The industries break-up may be provided on the same lines as prescribed for DSB returns. If the exposure to

any particular industry is more than 5 per cent of the gross credit exposure as computed under (b) above it

should be disclosed separately. 231 Banks shall use the same maturity bands as used for reporting positions in the ALM returns.

20

Table DF-4: Credit Risk - Disclosures for Portfolios Subject to the Standardised

Approach

Department

Responsible for

Solo Compilation

Department

Responsible for

Group Compilation


Treasury Dept ,

BSBIBL

Treasury Dept ,

BSBIBL

Quarterly Website and Annual Report

Qualitative Disclosures BSBIBL

(a) For portfolios under the standardised approach:

Names of credit rating agencies used, plus reasons for any

changes;

Types of exposure for which each agency is used; and

A description of the process used to transfer public issue

ratings onto comparable assets in the banking book;

Quantitative Disclosures Data source

(b) For exposure232 amounts after risk mitigation subject to the

standardised approach, amount of a bank’s outstandings (rated

and unrated) in the following three major risk buckets as well as

those that are deducted;

BSBIBL

Below 100 % risk weight

100 % risk weight

More than 100 % risk weight

Deducted

(*) for Domestic Offices & IBG- for Foreign Offices of SBI

232 As defined for disclosures in Table - 3

21

Table DF – 5: Credit Risk Mitigation - Disclosures for Standardised Approaches233

Department

Responsible for

Solo Compilation

Department

Responsible for

Group Compilation


Treasury Dept ,

BSBIBL

Treasury Dept ,

BSBIBL

Half Yearly Website and Annual

Report


(a) The general qualitative disclosure requirement with respect to credit

risk mitigation including:

Policies and processes for, and an indication of the extent to

which the bank makes use of, on- and off-balance sheet netting;

policies and processes for collateral valuation and management;

a description of the main types of collateral taken by the bank;

the main types of guarantor counterparty and their

creditworthiness; and

information about (market or credit) risk concentrations within

the mitigation taken

Quantitative Disclosures Data source

(b) For each separately disclosed credit risk portfolio the total exposure

(after, where applicable, on- or off balance sheet netting) that is

covered by eligible financial collateral after the application of haircuts.

BSBIBL

(c) For each separately disclosed portfolio the total exposure (after, where

applicable, on- or off-balance sheet netting) that is covered by

guarantees/credit derivatives (whenever specifically permitted by RBI)

(*) BID-for Domestic Offices & IBG for Foreign Offices of SBI

233 At a minimum, banks must give the disclosures in this Table in relation to credit risk mitigation that has been

recognised for the purposes of reducing capital requirements under this Framework. Where relevant, banks are

encouraged to give further information about mitigants that have not been recognised for that purpose.

22

Table DF – 6: Securitisation Exposures - Disclosure for Standardised Approach

Department


Compilation

Department

Responsible for

Group

Compilation


Treasury Dept ,

BSBIBL

Treasury Dept ,

BSBIBL

Half Yearly Website and Annual Report


(a) The general qualitative disclosure requirement with respect to securitisation

including a discussion of:

• the bank’s objectives in relation to securitisation activity, including the extent

to which these activities transfer credit risk of the underlying securitised

exposures away from the bank to other entities.

• the nature of other risks (e.g. liquidity risk) inherent in securitised assets;

• the various roles played by the bank in the securitisation process (For

example: originator, investor, servicer, provider of credit enhancement,

liquidity provider, swap provider@, protection provider#) and an indication of

the extent of the bank’s involvement in each of them;

@ A bank may have provided support to a securitisation structure in the form of

an interest rate swap or currency swap to mitigate the interest rate/currency risk

of the underlying assets, if permitted as per regulatory rules. # A bank may provide credit protection to a securitisation transaction through

guarantees, credit derivatives or any other similar product, if permitted as per

regulatory rules.

• a description of the processes in place to monitor changes in the credit and

market risk of securitisation exposures (for example, how the behaviour of the

underlying assets impacts securitisation exposures as defined in para 5.16.1 of

Basel III Capital Regulations).

• a description of the bank’s policy governing the use of credit risk mitigation

to mitigate the risks retained through securitisation exposures;

(b) Summary of the bank’s accounting policies for securitisation activities,

including:

• whether the transactions are treated as sales or financings;

23

• methods and key assumptions (including inputs) applied in valuing positions

retained or purchased

• changes in methods and key assumptions from the previous period and

impact of the changes;

• policies for recognising liabilities on the balance sheet for arrangements that

could require the bank to provide financial support for securitised assets.

(c ) In the banking book, the names of ECAIs used for securitisations and the types

of securitisation exposure for which each agency is used.

Quantitative Disclosures: Banking Book

(d) The total amount of exposures securitised by the bank.

(e) For exposures securitised losses recognised by the bank during the current

period broken by the exposure type (e.g. Credit cards, housing loans, auto

loans etc. detailed by underlying security)

(f) Amount of assets intended to be securitised within a year

(g) Of (f), amount of assets originated within a year before securitisation.

(h) The total amount of exposures securitised (by exposure type) and unrecognised

gain or losses on sale by exposure type.

(i) Aggregate amount of:

• on-balance sheet securitisation exposures retained or purchased broken down

by exposure type and

• off-balance sheet securitisation exposures broken down by exposure type

(j) • Aggregate amount of securitisation exposures retained or purchased and the

associated capital charges, broken down between exposures and further broken

down into different risk weight bands for each regulatory capital approach

• Exposures that have been deducted entirely from Tier 1 capital, credit

enhancing I/Os deducted from total capital, and other exposures deducted from

total capital (by exposure type).

Quantitative Disclosures: Trading Book

(k) Aggregate amount of exposures securitised by the bank for which the bank has

retained some exposures and which is subject to the market risk approach, by

exposure type.

(l) Aggregate amount of:

• on-balance sheet securitisation exposures retained or purchased broken down

by exposure type; and

• off-balance sheet securitisation exposures broken down by exposure type.

(m) Aggregate amount of securitisation exposures retained or purchased separately

for:

24

• securitisation exposures retained or purchased subject to Comprehensive Risk

Measure for specific risk; and

• securitisation exposures subject to the securitisation framework for specific

risk broken down into different risk weight bands.

(n) Aggregate amount of:

• the capital requirements for the securitisation exposures, subject to the

securitisation framework broken down into different risk weight bands.

• securitisation exposures that are deducted entirely from Tier 1 capital, credit

enhancing I/Os deducted from total capital, and other exposures deducted from

total capital(by exposure type).

* Credit Risk Management Department (CRMD) and Market Risk Management

Department (MRMD) will compile DF-6 (Banking Book) and DF-6 (Trading Book)

respectively, for State Bank of India (Solo), and submit the same to GRMD within the

stipulated timelines for final compilation.

25

Table DF- 7: Market Risk in Trading Book

Department

Responsible for

Solo Compilation

Department

Responsible for

Group Compilation


Treasury Dept ,

BSBIBL

Treasury Dept ,

BSBIBL


Report

Qualitative disclosures

(a) The general qualitative disclosure requirement for market risk

including the portfolios covered by the standardised approach.

strategies and processes;

the structure and organization of the relevant risk

management function;

the scope and nature of risk reporting and/or

measurement systems;

policies for hedging and/or mitigating risk and strategies

and processes for monitoring the continuing effectiveness of

hedges/mitigants;

Quantitative disclosures

(b) The capital requirements for:

interest rate risk;

equity position risk; and

foreign exchange risk;

26

Table DF-8: Operational Risk

Department

Responsible for

Solo Compilation

Department

Responsible for

Group Compilation


Treasury Dept ,

BSBIBL

Treasury Dept ,

BSBIBL


Report

Qualitative disclosures

In addition to the general qualitative disclosure requirement, the

approach(es) for operational risk capital assessment for which the

bank qualifies.


the structure and organization of the relevant risk management

function;

the scope and nature of risk reporting and/or measurement systems;

policies for mitigating risk and strategies and processes for

monitoring the continuing effectiveness of hedges/mitigants;

27

Table DF- 9: Interest Rate Risk in the Banking Book (IRRBB)

Department

Responsible for

Solo Compilation

Department

Responsible for

Group

Compilation


Treasury Dept ,

BSBIBL

Treasury Dept ,

BSBIBL


Report


(a) The general qualitative disclosure requirement, including the nature of

IRRBB and key assumptions, including assumptions regarding loan

prepayments and behaviour of non-maturity deposits, and frequency of

IRRBB measurement.


the structure and organization of the relevant risk management

function;

the scope and nature of risk reporting and/or measurement systems;

policies for hedging and/or mitigating risk and strategies and

processes for monitoring the continuing effectiveness of

hedges/mitigants;

Quantitative Disclosures

(b) The increase (decline) in earnings and economic value (or relevant

measure used by management) for upward and downward rate shocks

according to management’s method for measuring IRRBB, broken down

by currency (where the turnover is more than 5% of the total turnover).

28

Table DF-10: General Disclosure for Exposures Related to Counterparty Credit Risk

Department

Responsible for

Solo Compilation

Department

Responsible for

Group

Compilation


Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL



(a) The general qualitative disclosure requirement with respect to derivatives and CCR,

including:

Discussion of methodology used to assign economic capital and credit limits for

counterparty credit exposures;

Discussion of policies for securing collateral and establishing credit reserves;

Discussion of policies with respect to wrong-way risk exposures;

Discussion of the impact of the amount of collateral the bank would have to

provide given a credit rating downgrade.


(b) Gross positive fair value of contracts, netting benefits234, netted current credit exposure,

collateral held (including type, e.g. cash, government securities, etc.), and net

derivatives credit exposure235. Also report measures for exposure at default, or exposure

amount, under CEM. The notional value of credit derivative hedges, and the distribution

of current credit exposure by types of credit exposure236.

(c) Credit derivative transactions that create exposures to CCR (notional value), segregated

between use for the institution’s own credit portfolio, as well as in its intermediation

activities, including the distribution of the credit derivatives products used237, broken

down further by protection bought and sold within each product group

234 Please refer to the circular DBOD.No.BP.BC.48/21.06.001/2010-11 dated October 1, 2010 235 Net credit exposure is the credit exposure on derivatives transactions after considering both the benefits from

legally enforceable netting agreements and collateral arrangements. The notional amount of credit derivative

hedges alerts market participants to an additional source of credit risk mitigation. 236 For example, interest rate contracts, FX contracts, credit derivatives, and other contracts. 237 For example, credit default swaps.

29

Table DF-11: Composition of Capital

Department

Responsible for

Solo Compilation

Department

Responsible for

Group

Compilation


Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL


Part II: Template to be used before March 31, 2017 (i.e. during the transition period of

Basel III regulatory adjustments)

Basel III common disclosure template to be used during the transition of

regulatory adjustments (i.e. from March 31, 2013 to December 31, 2017)

Amounts

Subject To

Pre-Basel

III

Treatment

Ref

No.

Common Equity Tier 1 capital: instruments and reserves

1

Directly issued qualifying common share capital plus related stock

surplus (share premium)

2 Retained earnings

3 Accumulated other comprehensive income (and other reserves)

4

Directly issued capital subject to phase out from CET1

(only applicable to non-joint stock companies)

Public sector capital injections grandfathered until 1 January

2018

5

Common share capital issued by subsidiaries and held by third

parties (amount allowed in group CET1)

6 Common Equity Tier 1 capital before regulatory adjustments

Common Equity Tier 1 capital: regulatory adjustments

7 Prudential valuation adjustments

8 Goodwill (net of related tax liability)

9

Intangibles other than mortgage-servicing rights (net of related tax

liability)

10 Deferred tax assets2

11 Cash-flow hedge reserve

12 Shortfall of provisions to expected losses

13 Securitisation gain on sale

14

Gains and losses due to changes in own credit risk on fair valued

liabilities

Not applicable to commercial banks in India. 2 In terms of Basel III rules text issued by the Basel Committee (December 2010), DTAs that rely on future profitability of the bank to be realized are to be deducted. DTAs which relate to temporary differences are to be treated under the “threshold deductions” as set out in paragraph 87. However, banks in India are required to deduct all DTAs, irrespective of their origin, from CET1 capital.

30

15 Defined-benefit pension fund net assets

16

Investments in own shares (if not already netted off paid-in capital

on reported balance sheet)

17 Reciprocal cross-holdings in common equity

18

Investments in the capital of banking, financial and insurance

entities that are outside the scope of regulatory consolidation, net

of eligible short positions, where the bank does not own more than

10% of the issued share capital (amount above 10% threshold)

19

Significant investments in the common stock of banking, financial

and insurance entities that are outside the scope of regulatory

consolidation, net of eligible short positions (amount above 10%

threshold)3

20 Mortgage servicing rights4 (amount above 10% threshold)

21

Deferred tax assets arising from temporary differences5 (amount

above 10% threshold, net of related tax liability)

22 Amount exceeding the 15% threshold6

23

of which: significant investments in the common stock of

financial entities

24 of which: mortgage servicing rights

25

of which: deferred tax assets arising from temporary

differences

26 National specific regulatory adjustments7 (26a+26b+26c+26d)

26a

of which: Investments in the equity capital of unconsolidated

insurance subsidiaries

26b

of which: Investments in the equity capital of unconsolidated non-

financial subsidiaries8

26c

of which: Shortfall in the equity capital of majority owned financial

entities which have not been consolidated with the bank9

26d of which: Unamortised pension funds expenditures

3 Only significant investments other than in the insurance and non-financial subsidiaries should be reported here. The insurance and non-financial subsidiaries are not consolidated for the purpose of capital adequacy. The equity and other regulatory capital investments in insurance subsidiaries are fully deducted from consolidated regulatory capital of the banking group. However, in terms of Basel III rules text of the Basel Committee, insurance subsidiaries are included under significant investments and thus, deducted based on 10% threshold rule instead of full deduction. 4 Not applicable in Indian context. 5 Please refer to Footnote 2. 6 Not applicable in Indian context. 7 Adjustments which are not specific to the Basel III regulatory adjustments (as prescribed by the Basel Committee) will be reported under this row. However, regulatory adjustments which are linked to Basel III i.e. where there is a change in the definition of the Basel III regulatory adjustments, the impact of these changes will be explained in the Notes of this disclosure template. 8 Non-financial subsidiaries are not consolidated for the purpose of capital adequacy. The equity and other regulatory capital investments in the non-financial subsidiaries are deducted from consolidated regulatory capital of the group. These investments are not required to be fully deducted from capital under Basel III rules text of the Basel Committee. 9 Please refer to paragraph 3.3.5 of Master Circular on Basel III Capital Regulations. Please also refer to the Paragraph 34 of the Basel II Framework issued by the Basel Committee (June 2006). Though this is not national specific adjustment, it is reported here.

31

Regulatory Adjustments Applied To Common Equity Tier 1 In

Respect Of Amounts Subject To Pre-Basel III Treatment

of which: [INSERT NAME OF ADJUSTMENT]

For example: filtering out of unrealised losses on AFS debt

securities (not relevant in Indian context)

of which: [INSERT NAME OF ADJUSTMENT e.g. DTAs]

of which: [INSERT NAME OF ADJUSTMENT e.g.

intangible assets]

27

Regulatory adjustments applied to Common Equity Tier 1 due to

insufficient Additional Tier 1 and Tier 2 to cover deductions

28 Total regulatory adjustments to Common equity Tier 1

29 Common Equity Tier 1 capital (CET1)

Additional Tier 1 capital: instruments

30

Directly issued qualifying Additional Tier 1 instruments plus

related stock surplus (31+32)

31

of which: classified as equity under applicable accounting

standards (Perpetual Non-Cumulative Preference Shares)

32

of which: classified as liabilities under applicable accounting

standards (Perpetual debt Instruments)

33

Directly issued capital instruments subject to phase out from

Additional Tier 1

34

Additional Tier 1 instruments (and CET1 instruments not included

in row 5) issued by subsidiaries and held by third parties (amount

allowed in group AT1)

35

of which: instruments issued by subsidiaries subject to phase

out

36 Additional Tier 1 capital before regulatory adjustments

Additional Tier 1 capital: regulatory adjustments

37 Investments in own Additional Tier 1 instruments

38 Reciprocal cross-holdings in Additional Tier 1 instruments

39

Investments in the capital of banking, financial and insurance entities

that are outside the scope of regulatory consolidation, net of eligible

short positions, where the bank does not own more than 10% of the

issued common share capital of the entity (amount above 10%

threshold)

40

Significant investments in the capital of banking, financial and

insurance entities that are outside the scope of regulatory

consolidation (net of eligible short positions)10

41 National specific regulatory adjustments (41a + 41b)

41a

Investments in the Additional Tier 1 capital of unconsolidated

insurance subsidiaries

41b

Shortfall in the Additional Tier 1 capital of majority owned financial

entities which have not been consolidated with the bank

Regulatory Adjustments Applied To Additional Tier 1 In Respect Of

Amounts Subject To Pre-Basel III Treatment

10 Please refer to Footnote 3 above.

32

of which: [INSERT NAME OF ADJUSTMENT e.g. DTAs]

of which: [INSERT NAME OF ADJUSTMENT e.g. existing

adjustments which are deducted from Tier 1 at 50%]


42

Regulatory adjustments applied to Additional Tier 1 due to

insufficient Tier 2 to cover deductions

43 Total regulatory adjustments to Additional Tier 1 capital

44 Additional Tier 1 capital (AT1)

45 Tier 1 capital (T1 = CET1 + AT1) (29 + 44)

Tier 2 capital: instruments and provisions

46

Directly issued qualifying Tier 2 instruments plus related stock

surplus

47 Directly issued capital instruments subject to phase out from Tier 2

48

Tier 2 instruments (and CET1 and AT1 instruments not included in

rows 5 or 34) issued by subsidiaries and held by third parties

(amount allowed in group Tier 2)

49

of which: instruments issued by subsidiaries subject to phase

out

50 Provisions11

51 Tier 2 capital before regulatory adjustments

Tier 2 capital: regulatory adjustments

52 Investments in own Tier 2 instruments

53 Reciprocal cross-holdings in Tier 2 instruments

54

Investments in the capital of banking, financial and insurance

entities that are outside the scope of regulatory consolidation, net

of eligible short positions, where the bank does not own more than

10% of the issued common share capital of the entity (amount

above the 10% threshold)

55

Significant investments12 in the capital banking, financial and

insurance entities that are outside the scope of regulatory

consolidation (net of eligible short positions)

56 National specific regulatory adjustments (56a+56b)

56a

of which: Investments in the Tier 2 capital of unconsolidated

subsidiaries

56b

of which: Shortfall in the Tier 2 capital of majority owned financial

entities which have not been consolidated with the bank

Regulatory Adjustments Applied to Tier 2 in Respect of Amounts

Subject to Pre-Basel III Treatment

of which: [INSERT NAME OF ADJUSTMENT e.g. existing

adjustments which are deducted from Tier 2 at 50%]

11 Eligible Provisions and revaluation Reserves in terms of paragraph 4.2.5.1 of the Master Circular on Basel III Capital Regulations, both to be reported and break-up of these two items to be furnished in Notes. 12 Please refer to Footnote 3 above.

33


57 Total regulatory adjustments to Tier 2 capital

58 Tier 2 capital (T2)

59 Total capital (TC = T1 + T2) (45+ 58)

Risk Weighted Assets in respect of Amounts Subject to Pre-Basel

III Treatment


of which: …

60 Total risk weighted assets (60a + 60b + 60c)

60a of which: total credit risk weighted assets

60b of which: total market risk weighted assets

60c of which: total operational risk weighted assets

Capital ratios

61 Common Equity Tier 1 (as a percentage of risk weighted assets)

62 Tier 1 (as a percentage of risk weighted assets)

63 Total capital (as a percentage of risk weighted assets)

64

Institution specific buffer requirement (minimum CET1

requirement plus capital conservation and countercyclical buffer

requirements, expressed as a percentage of risk weighted assets)

65 of which: capital conservation buffer requirement

66 of which: bank specific countercyclical buffer requirement

67

of which: G-SIB buffer requirement

68

Common Equity Tier 1 available to meet buffers (as a percentage

of risk weighted assets)

National minima (if different from Basel III)

69

National Common Equity Tier 1 minimum ratio (if different from

Basel III minimum)

70

National Tier 1 minimum ratio (if different from Basel III

minimum)

71

National total capital minimum ratio (if different from Basel III

minimum)

Amounts below the thresholds for deduction (before risk weighting)

72 Non-significant investments in the capital of other financials

73 Significant investments in the common stock of financial entities

74 Mortgage servicing rights (net of related tax liability)

75

Deferred tax assets arising from temporary differences (net of

related tax liability)

Applicable caps on the inclusion of provisions in Tier 2

76

Provisions eligible for inclusion in Tier 2 in respect of exposures

subject to standardised approach (prior to application of cap)

77

Cap on inclusion of provisions in Tier 2 under standardised

approach

34

78

Provisions eligible for inclusion in Tier 2 in respect of exposures

subject to internal ratings-based approach (prior to application of

cap)

79

Cap for inclusion of provisions in Tier 2 under internal ratings-

based approach

Capital instruments subject to phase-out arrangements

(only applicable between March 31, 2017 and March 31, 2022)

80

Current cap on CET1 instruments subject to phase out

arrangements

81

Amount excluded from CET1 due to cap (excess over cap after

redemptions and maturities)

82 Current cap on AT1 instruments subject to phase out arrangements

83

Amount excluded from AT1 due to cap (excess over cap after


84 Current cap on T2 instruments subject to phase out arrangements

85

Amount excluded from T2 due to cap (excess over cap after


35

Table DF-12: Composition of Capital- Reconciliation Requirements

Department

Responsible for

Solo Compilation

Department

Responsible

for Group

Compilation


Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL

Half

Yearly

Website and Annual Report

STEP 1 (Rs. In millions)

Note: Under Step1, the bank’s balance sheet numbers in their financial statements (reported in the

middle column below) are to be reported under the regulatory scope of consolidation (numbers

reported in the right hand column below. If there are rows in the regulatory consolidation balance

sheet that are not present in the published financial statements, banks are required to give a value of

zero in the middle column and furnish the corresponding amount in the column meant for regulatory

scope of consolidation. Also indicate what the exact treatment is for such amounts in the balance

sheet.

Balance sheet as in

published financial

statements

Under regulatory

scope of

consolidation

As on reporting

date

As on reporting

date

A Capital & Liabilities

i Paid-up Capital

Reserves & Surplus

Minority Interest

Total Capital

ii Deposits

of which: Deposits from banks

of which: Customer deposits

of which: Other deposits (pl. specify)

iii Borrowings

Of which: From RBI

Of which: From banks

Of which: From other institutions & agencies

of which: Others (pl. specify)

of which: Capital instruments

iv Other liabilities & provisions

Total

B Assets

i Cash and balances with Reserve Bank of India

36

Balance with banks and money at call and short notice

ii Investments

of which: Government securities

of which: Other approved securities

of which: Shares

of which: Debentures & Bonds

of which: Subsidiaries / Joint Ventures / Associates

of which: Others (Commercial Papers, Mutual Funds

etc.)

iii Loans and advances

of which: Loans and advances to banks

of which: Loans and advances to customers

iv Fixed assets

v Other assets

of which: Goodwill and intangible assets

of which: Deferred tax assets

vi Goodwill on consolidation

vii Debit balance in Profit & Loss account

Total Assets


Expand the regulatory scope balance sheet (revealed in step-1) to identify all the elements that are

used in the definition of capital disclosure template by giving a reference number/letter that can be

used in Step 3)

Balance sheet as

in published

financial

statements

Under regulatory

scope of

consolidation

As on reporting

date

As on reporting

date

a Capital & Liabilities

i Paid-up Capital

of which: Amount eligible for CET1 e

of which: Amount eligible for AT1 f

Reserves & Surplus

Minority Interest

Total Capital

ii Deposits

of which: Deposits from banks

of which: Customer deposits

of which: Other deposits (pl. specify)

iii Borrowings

37

of which: From RBI

of which: From banks

of which: From other institutions & agencies

of which: Others (pl. specify)

of which: Capital instruments

iv Other liabilities & provisions

of which: DTLs related to goodwill c

of which: DTLs related to intangible assets d

Total

B Assets

i Cash and balances with Reserve Bank of India

Balance with banks and money at call and short notice

ii Investments

of which: Government securities

of which: Other approved securities

of which: Shares

of which: Debentures & Bonds

of which: Subsidiaries / Joint Ventures / Associates

of which: Others (Commercial Papers, Mutual Funds

etc.)

iii Loans and advances

of which: Loans and advances to banks

of which: Loans and advances to customers

iv Fixed assets

v Other assets

of which: Goodwill and intangible assets

out of which:

goodwill a

Other intangibles (excluding MSRs) b

Deferred tax assets

vi Goodwill on consolidation

vii Debit balance in Profit & Loss account

Total Assets


Under Step 3 add a column and show the source of every input. As per balance sheet under

regulatory scope of consolidation illustrated in Step 2

Extract of Basel III common disclosure template (with added column) – Table DF-11

Common Equity Tier 1 capital: instruments and reserves

38

Component

of

regulatory

capital

reported by

bank

Source based on

reference

numbers/letters of the

balance sheet under

the regulatory scope

of consolidation from

step 2

1 Directly issued qualifying common share (and

equivalent for non-joint stock companies) capital

plus related stock surplus

e

2 Retained earnings

3 Accumulated other comprehensive income (and

other reserves)

4 Directly issued capital subject to phase out from

CET1 (only applicable to non-joint stock

companies)

5 Common share capital issued by subsidiaries and

held by third parties (amount allowed in group

CET1)

6 Common Equity Tier 1 capital before regulatory

adjustments


8 Goodwill (net of related tax liability) a-c

39

Table DF-13: Main Features of Regulatory Capital Instruments

Department

Responsible for

Solo Compilation

Department

Responsible for

Group

Compilation


Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL

On going Website and Annual Report

Disclosure template for main features of regulatory capital instruments

1 Issuer

2

Unique identifier (e.g. CUSIP, ISIN or Bloomberg identifier for private

placement)

3 Governing law(s) of the instrument

Regulatory treatment

4 Transitional Basel III rules

5 Post-transitional Basel III rules

6 Eligible at solo/group/ group & solo

7 Instrument type

8

Amount recognised in regulatory capital (Rs. in million, as of most recent

reporting date)

9 Par value of instrument

10 Accounting classification

11 Original date of issuance

12 Perpetual or dated

13 Original maturity date

14 Issuer call subject to prior supervisory approval

15 Optional call date, contingent call dates and redemption amount

16 Subsequent call dates, if applicable

Coupons / dividends

17 Fixed or floating dividend/coupon

18 Coupon rate and any related index

19 Existence of a dividend stopper

20 Fully discretionary, partially discretionary or mandatory

21 Existence of step up or other incentive to redeem

22 Noncumulative or cumulative

23 Convertible or non-convertible

24 If convertible, conversion trigger(s)

25 If convertible, fully or partially

26 If convertible, conversion rate

27 If convertible, mandatory or optional conversion

40

28 If convertible, specify instrument type convertible into

29 If convertible, specify issuer of instrument it converts into

30 Write-down feature

31 If write-down, write-down trigger(s)

32 If write-down, full or partial

33 If write-down, permanent or temporary

34 If temporary write-down, description of write-up mechanism

35

Position in subordination hierarchy in liquidation (specify instrument type

immediately senior to instrument)

36 Non-compliant transitioned features

37 If yes, specify non-compliant features

41

Table DF-14: Full Terms and Conditions of Regulatory Capital Instruments

Department

Responsible

for Solo

Compilation

Department

Responsible for

Group Compilation


Treasury

Deptt

BSBIBL

Treasury Deptt

BSBIBL

On going Website and Annual Report

Instruments Full Terms and Conditions

42

Table DF-16: Equities - Disclosure for Banking Book Positions

Department


Compilation

Department

Responsible for

Group

Compilation


Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL



1 The general qualitative disclosure (Para 2.1 of this annex) with respect to equity risk,

including :

Differentiation between holdings on which capital gains are expected and those

taken under other objectives including for relationship and strategic reasons;

Discussion of important policies covering the valuation and accounting of equity

holdings in the banking book. This includes the accounting techniques and

valuation methodologies used, including key assumptions and practices affecting

valuation as well as significant changes in these practices


1 Value disclosed in the balance sheet of investments, as well as the fair value of those

investments; for quoted securities, a comparison to publicly quoted share values where

the share price is materially different from fair value.

2 The types and nature of investments, including the amount that can be classified as:

Publicly traded and

Privately held

3 The cumulative realized gains (losses) arising from sales and liquidations in the

reporting period

4 Total unrealized gains (losses)13

5 Total latent revaluation gains (losses)14

6 Any amounts of the above included in Tier 1 and/or Tier 2 capital

7 Capital requirements broken down by appropriate equity groupings, consistent with the

bank’s methodology, as well as the aggregate amounts and the type of equity

investments subject to any supervisory transition or grandfathering provisions regarding

regulatory capital requirements

13 Unrealised gains (losses) recognized in the balance sheet but not through the profit and loss account. 14 Unrealised gains (losses) not recognized either in the balance sheet or through the profit and loss account.

43

Table DF-17: Summary Comparison Of Accounting Assets Vs. Leverage Ratio

Exposure Measure

Department

Responsible for

Solo Compilation

Department

Responsible for

Group

Compilation


Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL


(Rs. In millions)

1 Total consolidated assets as per published financial statements

2 Adjustment for investments in banking, financial, insurance or

commercial entities that are consolidated for accounting purposes but

outside the scope of regulatory consolidation

3 Adjustment for fiduciary assets recognised on the balance sheet

pursuant to the operative accounting framework but excluded from the

leverage ratio exposure measure

4 Adjustments for derivative financial instruments

5 Adjustment for securities financing transactions (i.e. repos and similar

secured lending)

6 Adjustment for off-balance sheet items (i.e. conversion to credit

equivalent amounts of off-balance sheet exposures)

7 Other adjustments

(*) BSBIBL

(#) for Group Entities - BSBIBL

44

Table DF-18: Leverage Ratio Common Disclosure Template

Department

Responsible for

Solo Compilation

Department

Responsible for

Group

Compilation


Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL


On balance sheet exposures (Rs. In millions)

1 On-balance sheet items (excluding derivatives and SFTs, but including

collateral)

2 (Asset amounts deducted in determining Basel III Tier 1 capital)

3 Total on-balance sheet exposures (excluding derivatives and SFTs)

(sum of lines 1 and 2)

4 Replacement cost associated with all derivatives

transactions (i.e. net of eligible cash variation margin)

5 Add-on amounts for PFE associated with all derivatives transactions

6 Gross-up for derivatives collateral provided where deducted from the

balance sheet assets pursuant to the operative accounting framework

7 (Deductions of receivables assets for cash variation margin provided in

derivatives transactions)

8 (Exempted CCP leg of client-cleared trade exposures)

9 Adjusted effective notional amount of written credit derivatives

10 (Adjusted effective notional offsets and add-on deductions for written

credit derivatives)

11 Total derivative exposures (sum of lines 4 to 10)

12 Gross SFT assets (with no recognition of netting), after adjusting for sale

accounting transactions

13 (Netted amounts of cash payables and cash receivables of gross SFT

assets)

14 CCR exposure for SFT assets

15 Agent transaction exposures

16 Total securities financing transaction exposures (sum of lines 12 to 15)

17 Off-balance sheet exposure at gross notional amount

18 (Adjustments for conversion to credit equivalent amounts)

19 Off-balance sheet items (sum of lines 17 and 18)

45

Capital and total exposures

20 Tier 1 capital

21 Total exposures (sum of lines 3,11,16 and 19)

Leverage Ratio

22 Basel III leverage ratio

46

Table DF- GR: Additional Disclosures on Group Risk

Periodicity As at the end of March every year

Mode of Publication In Annual Report and Website

Department Responsible for

compilation

Treasury Deptt

BSBIBL

Qualitative Disclosure

Statement 1

(In respect of Domestic Group* Entities)

General Description on

a. Corporate Governance Practices

b. Disclosure Practices

c. Arm’s Length Policy in respect of Intra Group Transactions

d. Common marketing, branding and use of SBI’s Symbol

e. Details of Financial Support# if any

f. Adherence to all other covenants of Group Risk Management

Policy

Statement 2 (In respect of Overseas Group* Entities)

General Description on

a. Corporate Governance Practices

b. Disclosure Practices

c. Arm’s Length Policy in respect of Intra Group Transactions

d. Common marketing, branding and use of SBI’s Symbol

e. Details of Financial Support# if any

f. Adherence to all other covenants of Group Risk Management

Policy

* Subsidiaries as in consolidated accounting, e.g. AS 21 and Joint Ventures as in Consolidated Accounting, e.g.,

AS 27

#Intra-group transaction which may lead to the following may be broadly treated as ‘Financial Support’:

a) inappropriate transfer of capital or income from one entity to the other in the Group;

b) vitiation of the Arm’s Length Policy within which the Group entities are expected to operate;

c) adverse impact on the solvency, liquidity and profitability of the individual entities within the Group;

d) evasion of capital or other regulatory requirements;

e) operation of ‘Cross Default Clauses’ whereby a default by a related entity on an obligation (whether

financial or otherwise) is deemed to trigger a default on itself in its obligations.

47

Table 21

Scope of application

Qualitative Disclosures (a) The name of a bank in the group to which this Framework applies.

(b) An outline of the difference in the basis of consolidation for accounting

and regulatory purposes, within the group (a) that are fully consolidated.

(b) that are pro-rata consolidated; (c) that are given a deduction

treatment, and (d) equity accounted.

(c) Any restrictions, or other major impediments, on the transfer of funds or

regulatory capital within the group.

Quantitative Disclosures (d) The aggregate amount of capital deficiencies in all subsidiaries, that are

not included in the consolidation for regulatory purposes (i.e., that are

deducted) and the name (s) of such subsidiaries.

(e) The aggregate amounts (e.g., current book value) of a bank’s total

interests insurance entities, which are risk-weighted, rather than

deducted from capital, as well as their names, their country of

incorporation or residence, the proportion of ownership interest and, if

different, the proportion of voting power in these entities.

48

Table 22

Basel III Common Equity Tier I Disclosure Template

Common Equity Tier I capital: instruments and reserves

1 Directly issued qualifying common share (and equivalent for non-joint stock companies) capital plus

related stock surplus.

2 Retained earnings

3 Accumulated other comprehensive income (and other reserves)

4 Directly issued capital subject to phase out from CET1 CAPITAL (only applicable to non-joint stock

companies)

5 Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1

CAPITAL)

6 Common Equity Tier I capital before regulatory adjustments

Common Equity Tier I capital: regulatory adjustments


8 Goodwill (net of related tax liability)

9 Other intangibles other than mortgage-servicing rights (net of related tax liability)

10 Deferred tax assets that rely on future profitability excluding those arising from temporary differences

(net of related tax liability)

11 Cash-flow hedge reserve

12 Shortfall of provisions to expected losses

13 Securitisation gain on sale (as set out in paragraph 562 of Basel II framework)

14 Gains and losses due to changes in own credit risk on fair valued liabilities

15 Defined-benefit pension fund net assets

16 Investments in own shares (if not already netted off paid-in capital on reported balance sheet)

17 Reciprocal cross-holdings in common equity

18

Investments in the capital of banking, financial and insurance entities that are outside the scope of

regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of

the issued share capital (amount above 10% threshold)

19

Significant investments in the common stock of banking, financial and insurance entities that are

outside the scope of regulatory consolidation, net of eligible short positions (amount above 10%

threshold)

20 Mortgage servicing rights (amount above 10% threshold)

21 Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax

liability)

22 Amount exceeding the 15% threshold

23 of which: significant investments in the common stock of financials

24 of which: mortgage servicing rights

49

25 of which: deferred tax assets arising from temporary differences

26 National specific regulatory adjustments

27 Regulatory adjustments applied to Common Equity Tier I due to insufficient Additional Tier I and Tier

II to cover deductions

28 Total regulatory adjustments to Common equity Tier I

29 Common Equity Tier I capital (CET1 CAPITAL)

Additional Tier I capital: instruments

30 Directly issued qualifying Additional Tier I instruments plus related stock surplus

31 of which: classified as equity under applicable accounting standards

32 of which: classified as liabilities under applicable accounting standards

33 Directly issued capital instruments subject to phase out from Additional Tier I

34 Additional Tier I instruments (and CET1 CAPITAL instruments not included in row 5) issued by

subsidiaries and held by third parties (amount allowed in group AT1)

35 of which: instruments issued by subsidiaries subject to phase out

36 Additional Tier I capital before regulatory adjustments

Additional Tier I capital: regulatory adjustments

37 Investments in own Additional Tier I instruments

38 Reciprocal cross-holdings in Additional Tier I instruments

39

Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory

consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued

common share capital of the entity (amount above 10% threshold)

40 Significant investments in the capital of banking, financial and insurance entities that are outside the scope of

regulatory consolidation (net of eligible short positions)


42 Regulatory adjustments applied to Additional Tier I due to insufficient Tier II to cover deductions

43 Total regulatory adjustments to Additional Tier I capital

44 Additional Tier I capital (AT1)

45 Tier I capital (T1 = CET1 CAPITAL + AT1)

Tier II capital: instruments and provisions

46 Directly issued qualifying Tier II instruments plus related stock surplus

47 Directly issued capital instruments subject to phase out from Tier II

48 Tier II instruments (and CET1 CAPITAL and AT1 instruments not included in rows 5 or 34) issued by

subsidiaries and held by third parties (amount allowed in group Tier II)

49 of which: instruments issued by subsidiaries subject to phase out

50 Provisions

51 Tier II capital before regulatory adjustments

Tier II capital: regulatory adjustments

52 Investments in own Tier II instruments

53 Reciprocal cross-holdings in Tier II instruments

50

54

Investments in the capital of banking, financial and insurance entities that are outside the scope of

regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of

the issued common share capital of the entity (amount above the 10% threshold).

55 Significant investments in the capital banking, financial and insurance entities that are outside the scope of

regulatory consolidation (net of eligible short positions).


57 Total regulatory adjustments to Tier II capital

58 Tier II capital (T2)

59 Total capital (TC = T1 + T2)

60 Total risk-weighted assets

Capital ratios and buffers

61 Common Equity Tier I (as a percentage of risk weighted assets)

62 Tier I (as a percentage of risk-weighted assets)

63 Total capital (as a percentage of risk weighted assets)

64 Institution specific buffer requirement (minimum CET1 CAPITAL requirement plus capital conservation

buffer plus countercyclical buffer requirements plus G-SIB buffer requirement, expressed as a

percentage of risk weighted assets)

65 of which: capital conservation buffer requirement

66 of which: bank specific countercyclical buffer requirement

67 of which: G-SIB buffer requirement

68

Common Equity Tier I available to meet buffers (as a percentage of risk weighted assets)

N

a

t

i

o

n

a

l

m

i

n

i

m

a

(

i

f

d

i

f

f

e

r

e

n

National Common Equity Tier I minimum ratio (if different from Basel III minimum)

70 National Tier I minimum ratio (if different from Basel III minimum)

71 National total capital minimum ratio (if different from Basel III minimum)

Amounts below the thresholds for deduction (before risk-weighting)

72 Non-significant investments in the capital of other financials

73 Significant investments in the common stock of financials

74 Mortgage servicing rights (net of related tax liability)

75 Deferred tax assets arising from temporary differences (net of related tax liability)

Applicable caps on the inclusion of provisions in Tier II

76 Provisions eligible for inclusion in Tier II in respect of exposures subject to standardised approach (prior

to application of cap)

77 Cap on inclusion of provisions in Tier II under standardised approach

78 Provisions eligible for inclusion in Tier II in respect of exposures subject to internal ratings-based

approach (prior to application of cap)

79 Cap for inclusion of provisions in Tier II under internal ratings-based approach

Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2015 and 1 Jan 2020)

80 Current cap on CET1 CAPITAL instruments subject to phase out arrangements

81 Amount excluded from CET1 CAPITAL due to cap (excess over cap after redemptions and maturities)

51

Table 23

Explanation of each row of the

common disclosure Row

number

Explanation

1 Instruments issued by the parent company of the reporting group that meet

all of the CET1 CAPITAL entry criteria set out in the Directive. This should

be equal to the sum of common stock (and related surplus only) and other

instruments for non-joint stock companies, both of which must meet the

common stock criteria. This should be net of treasury stock and other

investments in own shares to the extent that these are already derecognised

on the balance sheet under the relevant accounting standards. Other paid-in

capital elements must be excluded. All minority interest must be excluded.

2 Retained earnings, prior to all regulatory adjustments. In accordance with

the Directive, this row should include interim profit and loss that has met

any audit, verification or review procedures that the Bank has put in place.

Dividends are to be removed in accordance with the applicable accounting

standards, i.e. they should be removed from this row when they are

removed from the balance sheet of the bank.

3 Accumulated other comprehensive income and other disclosed reserves,

prior to all regulatory adjustments.

4 Directly issued capital instruments subject to phase-out from CET1

CAPITAL in accordance with the requirements of the Directive. This is

only applicable to non-joint stock companies. Banks structured as joint-

stock companies must report zero in this row.

5 Common share capital issued by subsidiaries and held by third parties. Only

the amount that is eligible for inclusion in group CET1 CAPITAL should be

reported here, as determined by the application of the Directive.

6 Sum of rows 1 to 5.

7 Prudential valuation adjustments according to the Directive.

82 Current cap on AT1 instruments subject to phase out arrangements

83 Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities)

84 Current cap on T2 instruments subject to phase out arrangements

85 Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)

52

8 Goodwill net of related tax liability, as set out in the Directive.

9 Other intangibles other than mortgage-servicing rights (net of related tax

liability), as set out in the Directive.

10 Deferred tax assets that rely on future profitability excluding those arising

from temporary differences (net of related tax liability), as set out in the

Directive.

11 The element of the cash-flow hedge reserve described in the Directive.

12 Shortfall of provisions to expected losses as described in the Directive.

13 Securitisation gain on sale (as set out in paragraph 562 of Basel II

framework)

14 Gains and losses due to changes in own credit risk on fair valued liabilities,

as described in the Directive.

15 Defined-benefit pension fund net assets, the amount to be deducted as set

out in the Directive.

16 Investments in own shares (if not already netted off paid-in capital on

reported balance sheet), as set out in the Directive.

17 Reciprocal cross-holdings in common equity, as set out in the Directive.

18

Investments in the capital of banking, financial and insurance entities that

are outside the scope of regulatory consolidation where the bank does not

own more than 10% of the issued share capital (amount above 10%

threshold), amount to be deducted from CET1 CAPITAL in accordance

with the Directive.

19 Significant investments in the common stock of banking, financial and

insurance entities that are outside the scope of regulatory consolidation

(amount above 10% threshold), amount to be deducted from CET1

CAPITAL in accordance with the Directive.

20 Mortgage servicing rights (amount above 10% threshold), amount to be

deducted from CET1 CAPITAL in accordance with the Directive.

21 Deferred tax assets arising from temporary differences (amount above 10%

threshold, net of related tax liability), amount to be deducted from CET1

CAPITAL in accordance with the Directive.

22 Total amount by which the 3 threshold items exceed the 15% threshold,

excluding amounts reported in rows 19 to 21, calculated in accordance with

the Directive.

53

23 The amount reported in row 22 that relates to significant investments in the

common stock of financials

24 The amount reported in row 22 that relates to mortgage servicing rights.

25 The amount reported in row 22 that relates to deferred tax assets arising

from temporary differences.

26 Any specific regulatory adjustments that the Bank required to be applied to

CET1 CAPITAL in addition to the Basel III minimum set of adjustments.

Guidance should be sought from the Bank.

27 Regulatory adjustments applied to Common Equity Tier I due to

insufficient Additional Tier I to cover deductions. If the amount reported in

row 43 exceeds the amount reported in row 36 the excess is to be reported

here.

28 Total regulatory adjustments to Common equity Tier I, to be calculated as

the sum of rows 7 to 22 plus rows 26 and 27.

29 Common Equity Tier I capital (CET1 CAPITAL), to be calculated as row 6

minus row 28.


all of the AT1 entry criteria set out in the Directive and any related stock

surplus as set out in the Directive. All instruments issued by subsidiaries

of the consolidated group should be excluded from this row. This row may

include Additional Tier I capital issued by an SPV of the parent company

only if it meets the requirements set out in the Directive.

31 The amount in row 30 classified as equity under applicable accounting

standards.

32 The amount in row 30 classified as liabilities under applicable accounting

standards.

33 Directly issued capital instruments subject to phase out from Additional

Tier I in accordance with the requirements of the Directive.

34 Additional Tier I instruments (and CET CAPITAL instruments not

included in row 5) issued by subsidiaries and held by third parties, the

amount allowed in group AT1 in accordance with the Directive.

35 The amount reported in row 34 that relates to instruments subject to phase

out from AT1 in accordance with the Directive.

36 The sum of rows 30, 33 and 34.

54

37 Investments in own Additional Tier I instruments, amount to be deducted

from AT1 in accordance with the Directive.

38 Reciprocal cross-holdings in Additional Tier I instruments, amount to be

deducted from AT1 in accordance with the Directive.

39 Investments in the capital of banking, financial and insurance entities that


own more than 10% of the issued common share capital of the entity (net

of eligible short positions), amount to be deducted from AT1 in

accordance with the Directive.

40

Significant investments in the capital of banking, financial and insurance

entities that are outside the scope of regulatory consolidation (net of

eligible short positions), amount to be deducted from AT1 in accordance

with the Directive..

41 Any specific regulatory adjustments that the Bank require to be applied to

AT1 in addition to the Basel III minimum set of adjustments. Guidance

should be sought from the Bank.

42 Regulatory adjustments applied to Additional Tier I due to insufficient Tier

II to cover deductions. If the amount reported in row 57 exceeds the amount

reported in row 51 the excess is to be reported here.

43 The sum of rows 37 to 42.

44 Additional Tier I capital, to be calculated as row 36 minus row 43.

45 Tier I capital, to be calculated as row 29 plus row 44.


all of the Tier II entry criteria set out in the Directive and any related stock

surplus as set out in the Directive. All instruments issued of subsidiaries of

the consolidated group should be excluded from this row. This row may

include Tier II capital issued by an SPV of the parent company only if it

meets the requirements set out in the Directive.

47 Directly issued capital instruments subject to phase out from Tier II in


55

48 Tier II instruments (and CET1 CAPITAL and AT1 instruments not included

in rows 5 or 32) issued by subsidiaries and held by third parties (amount

allowed in group Tier II), in accordance with the Directive.

49 The amount reported in row 48 that relates to instruments subject to phase

out from T2 in accordance with the Directive.

50 Provisions included in Tier II, calculated in accordance with the Directive.

51 The sum of rows 46 to 48 and row 50.

52 Investments in own Tier II instruments, amount to be deducted from Tier II

in accordance with the Directive.

53 Reciprocal cross-holdings in Tier II instruments, amount to be deducted

from Tier II in accordance with the Directive.

54 Investments in the capital of banking, financial and insurance entities that


own more than 10% of the issued common share capital of the entity (net

of eligible short positions), amount to be deducted from Tier II in


55 Significant investments in the capital of banking, financial and insurance

entities that are outside the scope of regulatory consolidation (net of eligible

short positions), amount to be deducted from Tier II in accordance with the

Directive.

56 Any specific regulatory adjustments that the bank requires to be applied to

Tier II in addition to the Basel III minimum set of adjustments. Guidance

should be sought from the Bank.

57 The sum of rows 52 to 56.

58 Tier II capital, to be calculated as row 51 minus row 57.

59 Total capital, to be calculated as row 45 plus row 58.

60 Total risk weighted assets of the reporting group.

61 Common Equity Tier I (as a percentage of risk weighted assets), to be

calculated as row 29 divided by row 60 (expressed as a percentage).

62 Tier I ratio (as a percentage of risk weighted assets), to be calculated as row

45 divided by row 60 (expressed as a percentage).

56

63 Total capital ratio (as a percentage of risk weighted assets), to be calculated

as row 59 divided by row 60 (expressed as a percentage).

64 Institution specific buffer requirement (minimum CET1 CAPITAL

requirement plus capital conservation buffer plus countercyclical buffer

requirements plus G-SIB buffer requirement, expressed as a percentage of

risk weighted assets). To be calculated as 4.5% plus 2.5% plus the bank

specific countercyclical buffer requirement calculated in accordance with

paragraphs 142 to 145 of Basel III plus the bank G-SIB requirement (where

applicable) as set out in Global systemically important banks: assessment

methodology and the additional loss absorbency requirement: Rules text

(November 2011). This row will show the CET1 CAPITAL ratio below

which the bank will become subject to constraints on distributions.

65 The amount in row 64 (expressed as a percentage of risk weighed assets)

that relates to the capital conservation buffer), ie banks will report 2.5%

here.


that relates to the bank specific countercyclical buffer requirement.


that relates to the bank’s G-SIB requirement.

68 Common Equity Tier I available to meet buffers (as a percentage of risk

weighted assets). To be calculated as the CET1 CAPITAL ratio of the

bank, less any common equity used to meet the bank’s Tier I and Total

capital requirements.

69 Common Equity Tier I minimum ratio as per the Directive.

70 Tier I minimum ratio as per the Directive.

71 Total capital minimum ratio as per the Directive.

72 Non-significant investments in the capital of other financials, the total

amount of such holdings that are not reported in row 18, row 39 and row 54.

73 Significant investments in the common stock of financials, the total amount

of such holdings that are not reported in row 19 and row 23.

74 Mortgage servicing rights, the total amount of such holdings that are not

reported in row 20 and row 24.

57

75 Deferred tax assets arising from temporary differences, the total amount of

such holdings that are not reported in row 21 and row 25.

76 Provisions eligible for inclusion in Tier II in respect of exposures subject to

standardised approach, calculated in accordance with the Directive, prior to

the application of the cap.

77 Cap on inclusion of provisions in Tier II under standardised approach,

calculated in accordance with the Directive of Basel III.

78 Provisions eligible for inclusion in Tier II in respect of exposures subject to

internal ratings-based approach, calculated in accordance paragraph 61 of

Basel III, prior to the application of the cap.

79 Cap for inclusion of provisions in Tier II under internal ratings-based

approach, calculated in accordance paragraph 61 of Basel III.

80 Current cap on CET1 CAPITAL instruments subject to phase out

arrangements as per the Directive.

81 Amount excluded from CET1 CAPITAL due to cap (excess over cap after

redemptions and maturities).

82 Current cap on AT1 instruments subject to phase out arrangements in


83 Amount excluded from AT1 due to cap (excess over cap after redemptions

and maturities) as per the Directive.

84 Current cap on T2 instruments subject to phase out arrangements, as per the

Directive.

85 Amount excluded from T2 due to cap (excess over cap after redemptions

and maturities), as per the Directive.

58

Table 24

Capital Adequacy

Qualitative Disclosures (a) A summary discussion of a bank’s approach to assessing the adequacy

of its capital to support current and future activities.

Quantitative Disclosures (b) Capital requirements for credit risk:

Portfolios subject to the standardised approach, disclosed separately

for each portfolio;

(d) Capital requirements for market risk

Standardised Measurement Approach;

Internal models approach – Trading book.

(e)

Capital requirements for operational risk

Basic indicator approach;

Standardised approach;

(f) Total and Tier I capital ratio;

59

Table 25

Balance sheet as in

published financial

statements

Under regulatory

scope of

consolidation As at period end As at period end

Assets

Cash and balances at central banks

Items in the course of collection from other banks

Trading portfolio assets

Financial assets designated at fair value

Derivative financial instruments

Loans and advances to banks

Loans and advances to customers

Reverse repurchase agreements and other similar

secured lending

Available for sale financial investments

Current and deferred tax assets

Prepayments, accrued income and other assets

Investments in associates and joint ventures

Goodwill and intangible assets

Property, plant and equipment

Total assets

Liabilities

Deposits from banks

Items in the course of collection due to other banks

Customer accounts

Repurchase agreements and other similar secured

borrowing

Trading portfolio liabilities

Financial liabilities designated at fair value


Debt securities in issue

Accruals, deferred income and other liabilities

Current and deferred tax liabilities

Subordinated liabilities

Provisions

Retirement benefit liabilities

Total liabilities

Shareholders' Equity

Paid-in share capital

Retained earnings

60

Accumulated other comprehensive income

Total shareholders' equity

Table 26

Expanded Regulatory Balance Sheet

Balance sheet as in

published financial

statements

Under regulatory

scope of

consolidation

Reference As at period end As at period end

Assets Cash and balances at central banks

Items in the course of collection from other banks

Trading portfolio assets

Financial assets designated at fair value


Loans and advances to banks

Loans and advances to customers

Reverse repurchase agreements and other similar

secured lending

Available for sale financial investments

Current and deferred tax assets

Prepayments, accrued income and other assets

Investments in associates and joint ventures

Goodwill and intangible assets

of which goodwill a

of which other intangibles (excluding MSRs) b

of which MSRs c

Property, plant and equipment

Total assets

Liabilities Deposits from banks

Items in the course of collection due to other

banks

Customer accounts

Repurchase agreements and other similar secured

borrowing

Trading portfolio liabilities

Financial liabilities designated at fair value

61


Debt securities in issue

Accruals, deferred income and other liabilities

Current and deferred tax liabilities

Of which DTLs related to goodwill d

Of which DTLs related to intangible assets

(excluding MSRs)

e

Of which DTLs related to MSRs f

Subordinated liabilities

Provisions

Retirement benefit liabilities

Total liabilities

Shareholders' Equity

Paid-in share capital

of which amount eligible for CET1 CAPITAL h

of which amount eligible for AT1 i

Retained earnings

Accumulated other comprehensive income

Total shareholders' equity

62

Table 27

Extract of Basel III common disclosure template (with added column)

Common Equity Tier I capital: instruments and reserves

Component of

regulatory

capital reported

by bank

Source based on Reference

numbers/letters of the balance

sheet under the regulatory

scope of consolidation from

step 2.

1 Directly issued qualifying common share (and

equivalent for non-joint stock

companies) capital plus related stock surplus.

h

2 Retained earnings

3 Accumulated other comprehensive income (and

other reserves)

4 Directly issued capital subject to phase out

from CET1 CAPITAL (only applicable to non-

joint stock companies)

5 Common share capital issued by subsidiaries

and held by third parties (amount) allowed in

group CET1 CAPITAL)

6 Common Equity Tier I capital before

regulatory adjustments


8 Goodwill (net of related tax liability) a-d

63

Table 28

Main features template

1 Issuer

2 Unique identifier (eg CUSIP, ISIN or Bloomberg identifier for private placement)

3 Governing law(s) of the instrument

Regulatory treatment

4 Transitional Basel III rules

5 Post-transitional Basel III rules

6 Eligible at solo/group/group and solo

7 Instrument type (types to be specified by each jurisdiction)

8 Amount recognised in regulatory capital (Currency in mil, as of most recent

reporting date)

9 Par value of instrument

10 Accounting classification

11 Original date of issuance

12 Perpetual or dated

13 Original maturity date

14 Issuer call subject to prior supervisory approval

15 Optional call date, contingent call dates and redemption amount

16 Subsequent call dates, if applicable

Coupons / dividends

17 Fixed or floating dividend/coupon

18 Coupon rate and any related index

19 Existence of a dividend stopper

20 Fully discretionary, partially discretionary or mandatory

21 Existence of step up or other incentive to redeem

22 Noncumulative or cumulative

23 Convertible or non-convertible

24 If convertible, conversion trigger (s)

25 If convertible, fully or partially

26 If convertible, conversion rate

27 If convertible, mandatory or optional conversion

28 If convertible, specify instrument type convertible into

29 If convertible, specify issuer of instrument it converts into

30 Write-down feature

31 If write-down, write-down trigger(s)

32 If write-down, full or partial

64

33 If write-down, permanent or temporary

34 If temporary write-down, description of write-up mechanism

35 Position in subordination hierarchy in liquidation (specify instrument type

immediately senior to instrument)

36 Non-compliant transitioned features

37 If yes, specify non-compliant features

65

Table 29

Further explanation of items in main features disclosure template

1 Identifies issuer legal entity.

Free text 2 Unique identifier (eg CUSIP, ISIN or Bloomberg identifier for private placement)

Free text 3 Specifies the governing law(s) of the instrument

Free text

4

Specifies the regulatory capital treatment during the Basel III transitional Basel III phase (ie

the component of capital that the instrument is being phased-out from).

Select from menu: [Common Equity Tier I] [Additional Tier I] [Tier II] 5 Specifies regulatory capital treatment under Basel III rules not taking into account transitional

treatment.

Select from menu: [Common Equity Tier I] [Additional Tier I] [Tier II] [Ineligible] 6 Specifies the level(s) within the group at which the instrument is included in capital.

Select from menu: [Solo] [Group] [Solo and Group]

7

Specifies instrument type, varying by jurisdiction. Helps provide more granular understanding of

features, particularly

during transition.

Select from menu: menu options to be provided to banks by each jurisdiction 8 Specifies amount recognised in regulatory capital.

Free text 9 Par value of instrument

Free text

10

Specifies accounting classification. Helps to assess loss absorbency.

Select from menu: [Shareholders’ equity] [Liability – amortised cost] [Liability – fair value

option] [Non-controlling interest in consolidated subsidiary] 11 Specifies date of issuance.

Free text 12 Specifies whether dated or perpetual.

Select from menu: [Perpetual] [Dated] 13 For dated instrument, specifies original maturity date (day, month and year). For perpetual

instrument put “no maturity”.

Free text 14 Specifies whether there is an issuer call option. Helps to assess permanence.

Select from menu: [Yes] [No]

15 For instrument with issuer call option, specifies first date of call if the instrument has a call

option on a specific date (day, month and year) and, in addition, specifies if the instrument has a

tax and/or regulatory event call. Also specifies the redemption price. Helps to assess

permanence.

Free text

66

16 Specifies the existence and frequency of subsequent call dates, if applicable. Helps to assess

permanence.

Free text 17 Specifies whether the coupon/dividend is fixed over the life of the instrument, floating over the

life of the instrument, currently fixed but will move to a floating rate in the future, currently

floating but will move to a fixed rate in the future.

Select from menu: [Fixed], [Floating] [Fixed to floating], [Floating to fixed]

18 Specifies the coupon rate of the instrument and any related index that the coupon/dividend rate

references.

Free text 19 Specifies whether the non-payment of a coupon or dividend on the instrument prohibits the

payment of dividends on common shares (ie whether there is a dividend stopper).

Select from menu: [yes], [no]

20 Specifies whether the issuer has full discretion, partial discretion or no discretion over whether a

coupon/dividend is paid. If the bank has full discretion to cancel coupon/dividend payments

under all circumstances it must select “fully discretionary” (including when there is a dividend

stopper that does not have the effect of preventing the bank from cancelling payments on the

instrument). If there are conditions that must be met before payment can be cancelled (eg capital

below a certain threshold), the bank must select “partially discretionary”. If the bank is unable to

cancel the payment outside of insolvency the bank must select “mandatory”.

Select from menu: [Fully discretionary] [Partially discretionary] [Mandatory]

21 Specifies whether there is a step-up or other incentive to redeem.

Select from menu: [Yes] [No] 22 Specifies whether dividends / coupons are cumulative or noncumulative.

Select from menu: [Noncumulative] [Cumulative] 23 Specifies whether instrument is convertible or not. Helps to assess loss absorbency.

Select from menu: [Convertible] [Nonconvertible] 24 Specifies the conditions under which the instrument will convert, including point of non-

viability. Where one or more authorities have the ability to trigger conversion, the authorities

should be listed. For each of the authorities it should be stated whether it is the terms of the

contract of the instrument that provide the legal basis for the authority to trigger.

25 conversion (a contractual approach) or whether the legal basis is provided by statutory means (a

statutory approach).

Free text

26

For conversion trigger separately, specifies whether the instrument will: (i) always convert fully;

(ii) may convert fully or partially; or (iii) will always convert partially

Free text referencing one of the options above

27 Specifies rate of conversion into the more loss absorbent instrument. Helps to assess the degree

of loss absorbency.

Free text

67

28 For convertible instruments, specifies whether conversion is mandatory or optional. Helps to

assess loss absorbency.

Select from menu: [Mandatory] [Optional] [NA] 29 For convertible instruments, specifies instrument type convertible into. Helps to assess loss

absorbency.

Select from menu: [Common Equity Tier I] [Additional Tier I] [Tier II] [Other] 30 If convertible, specify issuer of instrument into which it converts.

Free text 31 Specifies whether there is a write down feature. Helps to assess loss absorbency.

Select from menu: [Yes] [No] 32 Specifies the trigger at which write-down occurs, including point of non-viability. Where one or

more authorities have the ability to trigger write-down, the authorities should be listed. For each

of the authorities it should be stated whether it is the terms of the contract of the instrument that

provide the legal basis for the authority to trigger write-down (a contractual approach) or

whether the legal basis is provided by statutory means (a statutory approach).

Free text

33 For each write-down trigger separately, specifies whether the instrument will: (i) always be

written down fully: (ii) may be written down partially; or (iii) will always be written down

partially. Helps assess the level of loss absorbency at write-down.

Free text referencing one of the options above 34 For write down instrument, specifies whether write down is permanent or temporary. Helps to

assess loss absorbency.

Select from menu: [Permanent] [Temporary] [NA] 35 For instrument that has a temporary write-down, description of write-up mechanism.

Free text

36

Specifies instrument to which it is most immediately subordinate. Helps to assess loss

absorbency on gone-concern basis. Where applicable, banks should specify the column numbers

of the instruments in the completed main features template to which the instrument is most

immediately subordinate.

Free text 37 Specifies whether there are non-compliant features.

Select from menu: [Yes] [No] 38 If there are non-compliant features, asks bank/institution to specify which ones. Helps to assess

instrument loss absorbency.

Free text

68

Table 30

Credit risk: general disclosures for all banks

Qualitative

Disclosures

(a) The general qualitative disclosure requirement. Definitions of past due

and impaired (for accounting purposes);

Description of approaches followed for specific and general

allowances and statistical methods;

Quantitative

Disclosures

(b) Total gross credit risk exposures, plus average gross exposure over the

period broken down by major types of credit exposure.

(c) Geographic distribution of exposures, broken down in significant areas

by major types of credit exposure.

(d) Industry or counter-party type distribution of exposures, broken down

by major types of credit exposure.

(e) Residual contractual maturity breakdown of the whole portfolio, broken

down by major types of credit exposure.

(f) By major industry or counterparty type:

Amount of impaired loans and if available, past due loans provided;

separately;

Specific and general allowances; and

Charges for specific allowances and charge-offs during the period.

(g) Amount of impaired loans and, if available, past due loans provided

separately broken down by significant geographic areas including, if

practical, the amounts of specific and general allowances related to each

geographical area.

(h) Reconciliation of changes in the allowances for loan impairment.

(i) For each portfolio, the amount of exposures subject to the standardised

approach.

69

Table 31

Credit risk: disclosures for portfolio subject to the standardised approach

Qualitative

Disclosures

(a) For portfolios under the standardised approach:

Names of ECAIs and ECAs used, plus reasons for any changes;

Types of exposure for which each agency is used;

A description of the process used to transfer public issue ratings

onto comparable assets in the banking book; and

The alignment of the alphanumerical scale of each agency used

with the risk buckets.

Quantitative

Disclosures

(b) For exposure amounts after risk mitigation subject to the

standardised approach, amount of a bank’s outstandings (related

and unrated) in each risk bucket as well as those that are

deducted.

70

Table 32

Credit risk mitigation: disclosures for standardised approach

Qualitative

Disclosures

(a) The general qualitative disclosure requirement with respect to credit

risk mitigation including:

Policies and processes for, and an indication of the extent to

which the bank makes use of, on-and off-balance sheet netting;

Policies and processes for collateral valuation and management;

A description of the main types of collateral taken by the bank;

The main types of guarantor/credit derivative counterparty and

their creditworthiness; and

Information about (market or credit) risk concentrations within

the mitigation taken.

Quantitative

Disclosures

(b) For each separately disclosed credit risk portfolio under the

standardised approach, the total exposure (after, where applicable,

on-or off-balance sheet netting) that is covered by :

guarantees and credit derivatives; and

eligible collateral after application of standardised supervisory

haircuts.

71

Table 33

General disclosure for exposures related to counterparty credit risk

Qualitative

Disclosures

(a) The general qualitative disclosure requirement with respect to

derivatives and CCR, including;

Discussion of methodology used to assign economic capital and

credit limits for counterparty credit exposures;

Discussion of policies for securing collateral and establishing

credit reserves;

Discussion of policies with respect to wrong-way risk exposures;

Discussion of the impact of the amount of collateral the bank

would have to provide given a credit rating downgrade.

Quantitative

Disclosures

(b) Gross positive fair value of contracts, netting benefits, netted current

credit exposure, collateral held (including type, e.g cash, government

securities, etc), and net derivatives credit exposure. The notional

value of credit derivative hedges, and the distribution of current

credit exposure by types of credit exposure.

(c) Credit derivatives transactions that create exposures to CCR

(notional value), segregated between the use for institution’s own

credit portfolio, as well as in its intermediation activities, including

the distribution of the credit derivatives products used, broken down

further by protection bought and sold within each product group.

72

Table 34

Market risk: disclosures for banks using the standardised approach

Qualitative

Disclosures

(a) The general qualitative disclosure requirement for market risk

including the portfolios covered by the standardised approach.

Quantitative

Disclosures

(b) The capital requirements for:

interest rate risk;

equity position risk;

foreign exchange risk; and

commodity risk.

73

Table 35

Operational risk

Qualitative

Disclosures

(a) In addition to the general qualitative disclosure requirement, the

approach for operational risk capital assessment for which the bank

chose.

Quantitative

Disclosures

(b) Description of either the BIA or SA used by the bank, including a

discussion of relevant internal and external factors considered in the

bank’s measurement approach.

74

Table 36

Equities: disclosures for banking book positions

Qualitative

Disclosures

(a) The general qualitative disclosure requirement with respect to equity

risk, including:

differentiation between holdings on which capital gains are

expected and those taken under other objectives including for

relationship and strategic reasons; and

discussion of important policies covering the valuation and

accounting of equity holdings in the banking book. This includes

the accounting techniques and valuation methodologies used,

including key assumptions and practices affecting valuation as

well as significant changes in these practices.

Quantitative

Disclosures

(b) Value disclosed in the balance sheet of investments, as well as

the fair value of those investments, for quoted securities, a

comparison to publicly quoted share values where the share

price is materially different from fair value.

(c) The types and nature of investments, including the amount that can

be classified as;

Publicly traded; and

Privately held.

(d) The cumulative realised gains (losses) arising from sales and

liquidations in the retaining period.

(e) Total unrealised gains (losses)

Total latent revaluation gains (losses)

Any amounts of the above included in Tier I and/or Tier II

capital.

(f) Capital requirements broken down by appropriate equity groupings,

consistent with the bank’s methodology, as well as the aggregate

amounts and the type of equity investments subject to any

supervisory transition or grandfathering provisions regarding

regulatory capital requirements.

75

Table 37

Interest rate risk the banking book (IRRBB)

Qualitative

Disclosures

(a) The general qualitative requirement, including the nature of IRRBB and

key assumptions, including assumptions regarding loan prepayments

and behaviour of non-maturity deposits, and frequency of IRRBB

measurements.

Quantitative

Disclosures

(b) The increase (decline) in earnings or economic value (or relevant

measure used by management) for upward and downward rate shocks

according to management’s method for measuring IRRBB, broken

down by currency (as relevant).

76

Table 38

Remuneration

Qualitative

disclosures

(a) Information relating to the bodies that oversee remuneration.

Disclosures should include:

Name, composition and mandate of the main body overseeing

remuneration.

External consultants whose advice has been sought, the body by which

they were commissioned, and in what areas of the remuneration

process.

A description of the scope of the bank’s remuneration policy (eg by

regions, business lines), including the extent to which it is applicable

to foreign subsidiaries and branches.

A description of the types of employees considered as material risk

takers and as senior managers, including the number of employees in

each group.

(b) Information relating to the design and structure of remuneration processes.


An overview of the key features and objectives of remuneration

policy.

Whether the remuneration committee reviewed the firm’s

remuneration policy during the past year, and if so, an overview of

any changes that were made.

A discussion of how the bank ensures that risk and compliance

employees are remunerated independently of the businesses they

oversee.

(c) Description of the ways in which current and future risks are taken into

account in the remuneration processes. Disclosures should include:

An overview of the key risks that the bank takes into account when

implementing remuneration measures.

An overview of the nature and type of the key measures used to take

account of these risks, including risks difficult to measure (values need

not be disclosed).

A discussion of the ways in which these measures affect

remuneration.

A discussion of how the nature and type of these measures has

changed over the past year and reasons for the change, as well as the

impact of changes on remuneration.

77

(d) Description of the ways in which the bank seeks to link performance

during a performance measurement period with levels of remuneration.


An overview of main performance metrics for bank, top-level business

lines and individuals.

A discussion of how amounts of individual remuneration are linked to

bank-wide and individual performance.

A discussion of the measures the bank will in general implement to

adjust remuneration in the event that performance metrics are weak.2 (e) Description of the ways in which the bank seek to adjust remuneration to

take account of longer-term performance. Disclosures should include:

A discussion of the bank’s policy on deferral and vesting of variable

remuneration and, if If the fraction of variable remuneration that is

deferred differs across employees or groups of employees, a

description of the factors that determine the fraction and their relative

importance.

A discussion of the bank’s policy and criteria for adjusting deferred

remuneration before vesting and (if permitted by national law) after

vesting through clawback arrangements. (f) Description of the different forms of variable remuneration that the bank

utilises and the rationale for using these different forms. Disclosures should

include:

An overview of the forms of variable remuneration offered (ie

cash, shares and share-linked instruments and other forms3).

A discussion of the use of the different forms of variable remuneration

and, if the mix of different forms of variable remuneration differs

across employees or groups of employees), a description the factors

that determine the mix and their relative importance.

Quantitative

disclosures

(g)

Number of meetings held by the main body overseeing remuneration

during the financial year and remuneration paid to its member.

(h) Number of employees having received a variable remuneration award

during the financial year.

Number and total amount of guaranteed bonuses awarded during the

financial year.

Number and total amount of sign-on awards made during the

financial year.

Number and total amount of severance payments made during the

financial year.

78

(i) Total amount of outstanding deferred remuneration, split into cash,

shares and share-linked instruments and other forms.

Total amount of deferred remuneration paid out in the financial

year. (j) Breakdown of amount of remuneration awards for the financial

year to show:

- fixed and variable.

- deferred and non-deferred.

- different forms used (cash, shares and share-linked instruments, other forms).

(k)

Quantitative information about employees’ exposure to implicit

(eg fluctuations in the value of shares or performance units) and explicit

adjustments (e.g., malus, clawbacks or similar reversals or downward

revaluations of awards) of deferred remuneration and retained

remuneration:

Total amount of outstanding deferred remuneration and retained

remuneration exposed to ex post explicit and/or implicit

adjustments.

Total amount of reductions during the financial year due to ex

post explicit adjustments.

Total amount of reductions during the financial year due to ex

post implicit adjustments.

2 This should include the bank’s criteria for determining “weak” performance metrics.

A description of the elements corresponding to other forms of variable remuneration (if any)

should be provided.

BSBIBL_PILLAR-III_DISCLOSURE_POLICY Page 79 of 82

Table 38(a)

Table 38 (a) to be completed separately for senior management

Total value of remuneration awards for the

current fiscal year

Unrestricted

Deferred

Fixed remuneration

Cash-based x x

Shares and share-linked instruments x x

Other x x

Variable remuneration

Cash-based x x

Shares and share-linked instruments x x

Other x x


Annexure-B

Departments Responsible for compilation of Consolidated Disclosure Formats

Sr.

No.

Description of Table/Disclosure Periodicity of

disclosures

(@)

Department

Responsible for

Compilation for

SBI Solo ($)

Department

Responsible for

Compilation of

Consolidated

Group DF format

(#)

1 DF-1 Scope of Application

Table-21

Half Yearly Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL

2 DF-2 Capital Adequacy

Table -24

Quarterly Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL

3 DF-3 Credit Risk: General Disclosures

for All Banks

Table -30


BSBIBL

Treasury Deptt

BSBIBL

4 DF-4 Credit Risk: Disclosures for

Portfolios Subject to the Standardised

Approach

Table -31


BSBIBL

Treasury Deptt

BSBIBL

5 DF-5 Credit Risk Mitigation:

Disclosures for Portfolios subject to

Standardised Approach

Table -32


BSBIBL

Treasury Deptt

BSBIBL

6 DF-6 Securitisation Exposures :

Disclosure for Standardised Approach


BSBIBL

Treasury Deptt

BSBIBL

7 DF-7 Market Risk in the Trading

Book

Table -34


BSBIBL

Treasury Deptt

BSBIBL

8 DF-8 Operational Risk

Table -35


BSBIBL

Treasury Deptt

BSBIBL

9 DF-9 Interest Rate Risk in the

Banking Book (IRRBB)

Half Yearly Treasury Deptt Treasury Deptt


(@) Disclosures (Both Qualitative and Quantitative) to be included in the published Financial

Results/Statements and a direct link provided to the Bank’s website.

(*) For DF-13 and DF-14, as changes are to be done on an on-going basis; on issue, repayment,

redemption, conversion, write down or material change in Capital Instruments, the departments

responsible for submission to advise BSBIBL of the changes regularly.

Table -37

BSBIBL BSBIBL

10 DF-10 General Disclosure for

Exposures Related to Counterparty

Credit Risk

Table -33


BSBIBL

Treasury Deptt

BSBIBL

11 DF-11 Composition of Capital Part II:

Template to be used before March 31,

2017

Table-22


BSBIBL

Treasury Deptt

BSBIBL

12 DF-12 Composition of Capital –

Reconciliation Requirements

Table -25, 26, 27 (Realigned)


BSBIBL

Treasury Deptt

BSBIBL

13 DF-13 Main Features of Regulatory

Capital Instruments

Table -28

On-going(*) Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL

14 DF-14: Full Terms and Conditions of

Regulatory Capital Instruments

On-going(*) Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL

15 DF-16 Equities - Disclosure for

Banking Book Positions

Table -36

Half-Yearly Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL

16 DF-17 : Summary Comparison Of

Accounting Assets Vs. Leverage Ratio

Exposure Measure


BSBIBL

Treasury Deptt

BSBIBL

17 DF-18 Leverage Ratio Common

Disclosure Template


BSBIBL

Treasury Deptt

BSBIBL

18 DF-GR: Additional Disclosures on

Group Risk

Annual Treasury Deptt

BSBIBL

Treasury Deptt

BSBIBL


Documents

BANK’S POLICY ON DISCLOSURES UNDER PILLAR 3 2018 · statements, except DF-2, DF-3, DF-4 which will be made on quarterly basis. Disclosures formats, DF-17 and DF-18 (Leverage ratio)