Deposits placed with NABARD/SIDBI/NHB for meeting shortfall in Priority Sector Lending by Banks-Reporting in Balance Sheet

Deposits placed with NABARD/SIDBI/NHB for meet­ing short­fall in Pri­or­i­ty Sec­tor Lend­ing by Banks-Report­ing in Bal­ance Sheet

Please refer to para 2.1 (v) of our cir­cu­lar DBR.No.BP.BC.6/21.04.141/2015–16 dat­ed July 1, 2015 — Mas­ter Cir­cu­lar: Pru­den­tial Norms for Clas­si­fi­ca­tion, Val­u­a­tion and Oper­a­tion of Invest­ment Port­fo­lio by Banks in terms of which banks are per­mit­ted to hold among oth­ers, RIDF/SIDBI/RHDF deposits under Held to Matu­ri­ty (HTM) cat­e­go­ry. Atten­tion is also invit­ed to our mail­box clar­i­fi­ca­tion dat­ed June 9, 2005 in terms of which deposits placed with SIDBI/NABARD in lieu of short­fall in lend­ing to pri­or­i­ty sec­tor should be shown under Sched­ule 8 “Invest­ments” of the bal­ance sheet at ItemI(vi)-Others.

2. It has now been decid­ed that for account­ing peri­ods com­menc­ing on or after April 1, 2015, deposits placed with NABARD/SIDBI/NHB on account of short­fall in pri­or­i­ty sec­tor tar­gets should be includ­ed under Sched­ule 11- ‘Oth­er Assets’ under the sub­head ‘Oth­ers’ of the Bal­ance Sheet. Banks may also dis­close the details of such deposits, both for the cur­rent year and pre­vi­ous year, as a foot­note in Sched­ule 11 of the Bal­ance Sheet. Fur­ther, while pre­sent­ing the bal­ance sheet for the year end­ing March 31, 2016, the pre­vi­ous year amounts may be appro­pri­ate­ly regrouped.

3. It may be not­ed that the extant instruc­tions on the treat­ment of such amounts for the pur­pos­es of com­pu­ta­tion of Cap­i­tal to Risk Weight­ed Assets Ratio (CRAR), Adjust­ed Net Bank Cred­it (ANBC), etc. remain unchanged.

Yours faith­ful­ly,

(Sudar­shan Sen)
Chief Gen­er­al Manager-in-Charge

RBI/2015–16/127
DBR.BP.BC.No.31/21.04.018/2015–16

July 16, 2015