Note no. 1: Specific Provision for NPAs
During the year, SBI has utilized the specific provisions of Rs.2,056.26
crores made during previous years (2011-12 and 2012-13) against certain
non performing domestic advances to provide for estimated loss in the
collectible amounts of such advances.
Note no. 2: Counter Cyclical Buffer
RBI vide Circular No. DBOD.No.BP.95/21.04.048/2013-14 dated 7th
February, 2014 on 'utilisation of floating Provisions/ Counter Cyclical
Provisioning Buffer' has allowed the banks, to utilise up to 33 per
cent of Counter Cyclical Provisioning Buffer (CCPB) held by them as on
31st March, 2013, for making specific provisions for Non-Performing
Assets (NPAs) as per the policy approved by the Bank's Board of
Directors. Accordingly, SBI has utilized the CCPB of Rs.750 crores (as
against the maximum permissible limit of Rs.1,132 crores i.e.33% of
Rs.3,430 crores, the balance as on 31st March, 2013) for making specific
provision for NPAs, in accordance with the board approved policy and
approval of the Board.
Note no. 03: Deferred Tax Liability on Special Reserve u/s 36(1)(viii)
RBI vide Circular No. DBOD.No.BP.BC.77/21.04.018/2013-14 dated December
20, 2013 on 'Deferred Tax Liability on Special Reserve created under
Section 36(1)(viii) of the Income Tax Act, 1961, has advised that, as a
matter of prudence, Deferred Tax Liability (DTL) should be created on
Special Reserve. further, it has allowed the banks to adjust the
provision for DTL on Special Reserve as at March 31, 2013 against the
Reserves and the provision for DTL on Special Reserve created from the
year 2013-14 should be charged to the profit and loss account.
Accordingly, an amount of Rs.2,052.76 crores has been adjusted from the
reserves for creation of DTL on Special Reserve of Rs.6,039.30 crores as
on 31st March, 2013. further an amount of Rs.488.30 crores has been
charged to Profit and loss Account for creation of DTL on Special
Reserve u/s 36(1) (viii) of the Income Tax Act, 1961 for the year.