AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
1
1
INDEPENDENT AUDITOR’S REPORT
To
The Chief Executive Ofcer
American Express Banking Corp.-India Branch
Report on the Audit of Financial Statements
Opinion
We have audited the accompanying nancial statements of AMERICAN EXPRESS BANKING CORP.-INDIA BRANCH (“the Bank”),
which comprise the Balance Sheet as at 31st March, 2022, the Prot and Loss Account and the Cash Flow statement for the year then ended,
and notes to the nancial statements, including a summary of signicant accounting policies and other explanatory information (together
referred to as “nancial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial statements give the
information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013 (“the Act”) in the manner so required for
Banking Companies and are in conformity with accounting principles generally accepted in India and give a true and fair view of the state
of affairs of the Bank as at 31
st
March, 2022, and its loss and its cash ows for the year ended on that date.
Basis for Opinion
We conducted our audit of the nancial statements in accordance with the Standards on Auditing (SAs), as specied under section 143(10)
of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Financial
statements’ section of our report. We are independent of the Bank in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit of the nancial statements under the provisions
of the Act and the Rules thereunder, and we have fullled our other ethical responsibilities in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note No. IV.20 of Schedule 18 of the nancial statements, which fully describes that the bank has recognised
provision on credit card receivables to reect the business impact and uncertainties arising from the COVID-19 pandemic. Such estimates
are based on current facts and circumstances and may not necessarily reect the uncertainties and events arising from the full impact of
the COVID-19 pandemic.
Our opinion is not modied in respect of this matter.
Information other than the nancial statements and Auditor’s Report Thereon
The Bank’s management is responsible for the other information. The other information comprises the information included in the Bank’s
Basel III-Pillar 3 disclosures and annual report but does not include the nancial statements and our auditor’s report thereon.
The other information is expected to be made available to us after the date of auditor’s report. Our opinion on the nancial statements does
not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the nancial statements, our responsibility is to read the other information when it becomes available and, in
doing so, consider whether the other information is materially inconsistent with the nancial statements, or our knowledge obtained during
the course of our audit or otherwise appears to be materially misstated. When we read the other information and if we conclude that there
is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720
“The Auditor’s responsibilities Relating to other information”.
Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The Bank’s Management is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these nancial
statements that give a true and fair view of the nancial position, nancial performance and cash ows of the Bank in accordance with the
accounting principles generally accepted in India, including the Accounting Standards specied under section 133 of the Act, read with the
Companies (Accounting Standards) Rules, 2021 and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars, guidelines
and directions issued by the Reserve Bank of India (“the RBI”) from time to time as applicable to the Bank. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for
preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal nancial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of
the nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the nancial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to
liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
The Bank’s management is also responsible for overseeing the Bank’s nancial reporting process.
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
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Auditor’s responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the nancial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but
is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to inuence
the economic decisions of users taken on the basis of these nancial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the nancial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufcient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Bank has
adequate internal nancial controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signicant doubt on
the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the nancial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Bank to cease to continue as a going concern.
• Evaluate the overall presentation, structure, and content of the nancial statements, including the disclosures, and whether the
nancial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatement in the nancial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the nancial statements may be inuenced. We consider quantitative materiality
and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect
of any identied misstatement in the nancial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
signicant audit ndings, including any signicant deciencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
Other Matter
The Comparative nancial information for the year ended 31
st
March 2021 included in the accompanying nancial statements have been
audited by Khimji Kunverji & Co. LLP, Chartered Accountants whose report dated 25
th
June, 2021, expressed unmodied opinion.
Our opinion is not modied in respect of the above matter.
Report on other legal and regulatory requirements
1. The Balance Sheet and Prot and Loss Account and the Cash Flow Statement have been drawn up in accordance with the provisions of
Section 29 of the Banking Regulation Act, 1949 and Section 133 of the Act read with Companies (Accounting Standards) Rules, 2021.
2. As required by sub-section (3) of Section 30 of the Banking Regulation Act, 1949, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit and have found them to be satisfactory.
(b) The transactions of the Bank, which have come to our notice during the course of our audit have been within the power of the
Bank, and
(c) Since the bank have only branch, the question on reporting the number of branches audited by us and the manner of audit
doesn’t arise.
3. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination
of those books except that the backup of accounts and other books and papers maintained in electronic mode has not been
maintained on servers physically located in India, Refer Note I of Schedule 18 of the nancial statements wherein it has been
stated that the backup of the books of accounts and other papers maintained in electronic mode has been maintained on servers
located outside India.
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
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(c) The Balance Sheet, the Prot and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with
the books of account.
(d) In our opinion, the aforesaid nancial statements comply with the Accounting Standards specied under Section 133 of the Act,
read with Companies (Accounting Standards) Rules, 2021 to the extent they are not inconsistent with the accounting policies
prescribed by RBI.
(e) There are no material observations or comments on the nancial transactions or matters which have any adverse effect on the
functioning of the Bank;
(f) The reporting requirement of Section 164(2) of the Act is not applicable to the Bank considering it is a branch of American
Express Banking Corp. which is incorporated with limited liability in United States of America.
(g) With respect to the adequacy of the internal nancial controls over nancial reporting of the Bank and the operating effectiveness
of such controls, refer to our separate Report in “Annexure A”.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit
and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations
given to us:
i. The Bank has disclosed the impact of pending litigations on its nancial position in its nancial statements - Refer
Schedule 12 and Note No. IV.11 of the Schedule 18 to the nancial statements.
ii. The Bank has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long term contracts including derivative contracts- Refer Note No. IV. I (g) of the Schedule 18 to the
nancial statements.
iii. There were no amounts required to be transferred to the Investor Education and Protection Fund by the Bank during the
year ended 31
st
March, 2022.
iv. a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either
individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Bank to or in any other person or entity, including foreign
entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or invest in other persons or entities identied in any manner whatsoever
by or on behalf of the Bank (“Ultimate Beneciaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneciaries.
b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by the Bank from any person or entity, including foreign
entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Bank shall,
whether, directly or indirectly, lend or invest in other persons or entities identied in any manner whatsoever by or
on behalf of the Funding Party (“Ultimate Beneciaries”) or provide any guarantee, security or the like on behalf
of the Ultimate Beneciaries.
c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule
11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The clause (f) of Rule 11 of the Companies (Audit and Auditors) Rules, 2014 is not applicable to the branch as the branch
has not declared or paid dividend during the year.
4. With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of the
Act, as amended:
The Bank is a Banking Company as dened under Banking Regulation Act, 1949. Accordingly, the requirements prescribed under
Section 197 of the Companies Act, 2013 do not apply
For SCV & Co. LLP
Chartered Accountants
FIRM REGISTRATION No. 000235N/N500089
( RAJIV PURI )
PARTNER
MEMBERSHIP No. 084318
ICAI UDIN: 22084318ALMHUM9506
Place: Noida
Dated: 23rd June, 2022
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
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Annexure “A” To the Independent Auditor’s Report
Annexure referred to in paragraph 3(g) under the heading “Report on other legal and regulatory requirements”
of our report of even date.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal nancial controls over nancial reporting of AMERICAN EXPRESS BANKING CORP.-INDIA BRANCH
(“the Bank”) as of 31
st
March, 2022 in conjunction with our audit of the Financial statements of the Bank for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Bank’s management is responsible for establishing and maintaining internal nancial controls based on the internal control over
nancial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal nancial controls that were operating effectively
for ensuring the orderly and efcient conduct of its business, including adherence to Bank’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable nancial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Bank's internal nancial controls over nancial reporting based on our audit. We conducted
our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”)
and the Standards on Auditing, issued by Institute of Chartered Accountants of India and deemed to be prescribed under section 143(10) of
the Companies Act, 2013, to the extent applicable to an audit of internal nancial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal nancial
controls over nancial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal nancial controls system over nancial
reporting and their operating effectiveness. Our audit of internal nancial controls over nancial reporting included obtaining an understanding
of internal nancial controls over nancial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of the nancial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our audit opinion on the Bank’s
internal nancial controls system over nancial reporting with reference to these nancial statements.
Meaning of Internal Financial Controls Over Financial Reporting
A Bank's internal nancial control over nancial reporting is a process designed to provide reasonable assurance regarding the reliability
of nancial reporting and the preparation of nancial statements for external purposes in accordance with generally accepted accounting
principles. A Bank's internal nancial control over nancial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reect the transactions and dispositions of the assets of the Bank;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of nancial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the Bank are being made only in accordance with
authorisations of management and directors of the Bank; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the Bank's assets that could have a material effect on the nancial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal nancial controls over nancial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of
the internal nancial controls over nancial reporting to future periods are subject to the risk that the internal nancial control over nancial reporting
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Bank has, in all material respects, an adequate internal nancial controls system over nancial reporting and such
internal nancial controls over nancial reporting were operating effectively as at 31
st
March, 2022, based on the internal control over
nancial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SCV & Co. LLP
Chartered Accountants
FIRM REGISTRATION No. 000235N/N500089
( RAJIV PURI )
PARTNER
MEMBERSHIP No. 084318
ICAI UDIN: 22084318ALMHUM9506
Place: Noida
Dated: 23rd June, 2022
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
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BALANCE SHEET AS AT MARCH 31, 2022
PROFIT AND LOSS ACCOUNT FOR THE
TWELVE MONTHS ENDED MARCH 31, 2022
Year ended Year ended
Particulars Schedule March 31, March 31,
2022 2021
INCOME
Interest Earned 13 5,295,710 6,016,293
Other Income 14 9,366,073 7,227,740
Total 14,661,783 13,244,033
EXPENDITURE
Interest Expended 15 1,069,998 1,032,258
Operating Expenses 16 12,576,525 12,576,263
Provisions and Contingencies 17 1,064,646 2,602,461
Total 14,711,169 16,210,982
PROFIT / (LOSS)
Net Prot /(Loss) for the Year (49,386) (2,966,949)
Prot / (Loss) brought forward (5,677,520) (2,710,571)
Transfer from Investment
Fluctuation Reserve
(5,726,906) (5,677,520)
APPROPRIATIONS
Transfer to Statutory Reserve - -
Transfer to Revenue and
Other Reserves - -
Proposed dividend - -
Balance carried over to
Balance Sheet (5,726,906) (5,677,520)
(5,726,906) (5,677,520)
Signicant Accounting Policies and
Notes to Financial Statements 18
The schedules referred above form an integral part of the Prot
and Loss Account.
This is the Prot and Loss Account referred to in our Report of
even date.
As at As at
Particulars Schedule March 31, March 31,
2022 2021
CAPITAL AND LIABILITIES
Capital 1 22,153,299 22,153,299
Reserves and Surplus 2 487,531 487,531
Deposits 3 28,180,680 25,387,116
Borrowings 4 21,046,741 15,685,034
Other Liabilities and
Provisions 5 14,907,723 12,326,188
Total 86,775,974 76,039,168
ASSETS
Cash and Balances with
Reserve Bank of India 6 2,375,608 1,885,697
Balances with Banks and
Money at Call and
Short Notice 7 77,404 1,688,080
Investments 8 30,974,058 32,607,358
Advances 9 36,709,513 31,375,953
Fixed Assets 10 5,575,702 250,371
Other Assets 11 11,063,689 8,231,709
Total 86,775,974 76,039,168
Contingent Liabilities 12 3,511,263 2,025,579
Bills for Collection - -
The schedules referred above form an integral part of the
Balance Sheet.
This is the Balance Sheet referred to in our Report of even date.
(Amount in INR. ‘000)
(Amount in INR. ‘000)
For SCV & Co. LLP For and on behalf of
Chartered Accountants American Express Banking Corp.- India Branch
FRN 000235N/N500089
Rajiv Puri Sanjay Khanna
Partner Interim Chief Executive Ofcer
Membership No. 084318
Rupesh Satapathy
Financial Controller
Place: Noida Place: Gurugram
June 23, 2022 June 23, 2022
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
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Economic & Political Weekly
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CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022
(Amount in INR. ‘000)
Year ended Year ended
March 31, 2022 March 31, 2021
Cash Flow from Operating activities
Net prot/(loss) before income tax (49,386) (2,966,949)
Adjustments for :
Net (write back)/depreciation on value of investments - -
Provision for standard advances (290,105) (44,230)
Provision for non-performing advances (83,295) 1,750,305
Depreciation on xed assets 559,370 112,497
Net (prot)/loss on sale of land, building and other assets (1,823) 1,574
Operating prot before working capital changes 134,761 (1,146,803)
(Increase)/decrease in investments 1,633,300 802,566
(Increase)/decrease in advances (5,250,265) 6,747,597
Increase/(decrease) in deposits 2,793,564 4,097,265
(Increase)/decrease in other assets (2,325,435) 220,138
Increase/(decrease) in other liabilities and provisions 2,871,640 (10,131,581)
(Direct Taxes paid)/(Taxes deducted at source)/Refund received [net] (457,159) (106,844)
A Net Cash Flow (used in)/from operating activities (599,594) 482,338
Cash Flow from Investing activities
Fixed assets purchased (5,896,209) (128,127)
Proceeds from sale of xed assets 13,331 70,697
B Net Cash Flow (used in)/from Investing activities (5,882,878) (57,430)
Cash Flow from Financing activities
Infusion of capital - -
Proceeds/(Repayment) from/of Borrowings 5,361,707 (361,059)
Proceeds from Subordinate Debt - -
Long term borrowing - -
C Net Cash Flow from/(used in) Financing activities 5,361,707 (361,059)
Net Increase/(Decrease) in cash and cash equivalents (A+B+C) (1,120,765) 63,849
Cash and cash equivalents at beginning of year 3,573,777 3,509,928
Cash and cash equivalents at end of year 2,453,012 3,573,777
Increase/(decrease) in cash and cash equivalents (1,120,765) 63,849
Notes to the Cash Flow Statement
1. Cash and cash equivalents represents cash and balances with banks, balance with RBI as disclosed in Schedules 6 and 7
2. The above Cash Flow Statement has been prepared under the "Indirect method" as set out in the Accounting Standard (AS-3) on Cash
Flow Statements prescribed under section 133 of Companies Act 2013 read with Companies (Accounting Standards) Rules, 2021.
This is the Cash Flow Statement referred to in our Report of even date.
For SCV & Co. LLP For and on behalf of
Chartered Accountants American Express Banking Corp.- India Branch
FRN 000235N/N500089
Rajiv Puri Sanjay Khanna
Partner Interim Chief Executive Ofcer
Membership No. 084318
Rupesh Satapathy
Financial Controller
Place: Noida Place: Gurugram
June 23, 2022 June 23, 2022
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
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As at As at
March 31, March 31,
2022 2021
SCHEDULE 4 - BORROWINGS
I. BORROWINGS IN INDIA
Reserve Bank of India - -
Other banks 5,765,441 403,734
II. BORROWINGS OUTSIDE INDIA
Tier 2 Debt Capital raised in the
form of Head Ofce Borrowings
in Foreign Currency
[Refer Note IV. 1. b of Schedule 18] 15,281,300 15,281,300
21,046,741 15,685,034
Secured borrowings included
in I and II above - -
SCHEDULE 5 - OTHER
LIABILITIES AND
PROVISIONS
I. Bills payable - -
II. Inter-ofce adjustments (net) - -
III. Interest accrued 660,269 538,154
IV. Others (including provisions) * 14,247,454 11,788,034
14,907,723 12,326,188
* Refer Note IV. 6 of Schedule 18
SCHEDULE 6 - CASH AND
BALANCES WITH
RESERVE BANK OF INDIA
I. Cash in hand (including foreign
currency notes) - -
II. Balances with
Reserve Bank of India
i) In Current Account 2,375,608 1,885,697
ii) In Other Accounts - -
2,375,608 1,885,697
SCHEDULE 7 - BALANCES WITH
BANKS AND MONEY AT
CALL AND SHORT NOTICE
I. In India
Balances with banks
i) In Current Accounts 77,404 1,688,080
ii) In Other Deposit Accounts - -
Money at call and short notice
i) With banks - -
ii) With other institutions - -
77,404 1,688,080
II. Outside India
i) In Current Accounts - -
ii) In Other Deposit Accounts - -
iii) Money at call and short notice - -
- -
Total (I + II) 77,404 1,688,080
(Amount in INR. ‘000) (Amount in INR. ‘000)
As at As at
March 31, March 31,
2022 2021
SCHEDULE 1 - CAPITAL
Amount of deposit kept with RBI
under section 11 (2) of the Banking
Regulation Act, 1949 as per contra. 489,057 489,057
489,057 489,057
HEAD OFFICE ACCOUNT
Opening balance 22,153,299 17,603,299
Additions during the year - 4,550,000
Closing balance 22,153,299 22,153,299
SCHEDULE 2 - RESERVES
AND SURPLUS
I. STATUTORY RESERVES
Opening balance 487,057 487,057
Additions during the year - -
Closing balance 487,057 487,057
II CAPITAL RESERVES
Opening balance - -
Additions during the year - -
Closing balance - -
III SHARE PREMIUM
Opening balance - -
Additions during the year - -
Closing balance - -
IV REVENUE AND
OTHER RESERVES
Opening balance 474 474
Additions during the year - -
Closing balance 474 474
V Balance of Prot and
Loss Account - -
487,531 487,531
SCHEDULE 3 - DEPOSITS
A. In India
I. DEMAND DEPOSITS
From banks - -
From others - -
II. SAVINGS BANK DEPOSITS - -
III. TERM DEPOSITS
From banks - -
From others (Institutional) 28,180,680 25,387,116
28,180,680 25,387,116
B. (i) Deposits of branches in India 28,180,680 25,387,116
(ii) Deposits of branches
outside India - -
28,180,680 25,387,116
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
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(Amount in INR. ‘000) (Amount in INR. ‘000)
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
As at As at
March 31, March 31,
2022 2021
SCHEDULE 10 - FIXED ASSETS
I. PREMISES
At cost as on 31 March of
the preceding year - -
Additions during the year - -
Deductions during the year - -
- -
Depreciation to date - -
Total Net Book Value I - -
II OTHER FIXED ASSETS
(Including Furniture & Fixtures
and Software)*
At cost as on March 31 of the
preceding year 1,458,396 1,479,931
Additions during the year 5,896,209 128,127
Deductions during the year (35,089) (149,662)
7,319,516 1,458,396
Depreciation to date (1,743,814) (1,208,025)
Total Net Book Value II 5,575,702 250,371
Net Book Value I and II 5,575,702 250,371
* Refer Note III. 7 of Schedule 18
SCHEDULE 11 - OTHER ASSETS
I. Inter-ofce adjustments (net) - -
II. Interest accrued 182,054 218,784
III. Tax paid in advance /
tax deducted at source 925,941 468,782
V. Stationery and Stamps - -
VI. Non-banking assets acquired
in satisfaction of claims - -
VII. Deferred tax asset - -
VIII. Others (Including Debit Balance
in Prot and Loss Account 9,955,694 7,544,143
Rs. 5,726,906 (000); Previous
Year Rs. 5,677,520 (000))
11,063,689 8,231,709
SCHEDULE 12 - CONTINGENT
LIABILITIES
I. Claims against the bank not
acknowledged as debts - -
II. Liability for partly paid investments - -
III. Liability on account of outstanding
forward exchange and
derivatives contracts - -
IV. Guarantees given on behalf
of constituents -
a) In India - -
b) Outside India - -
V. Acceptances, endorsements and
other obligations - -
VI. Other items for which the bank
is contingently liable 3,511,263 2,025,579
3,511,263 2,025,579
As at As at
March 31, March 31,
2022 2021
SCHEDULE 8 - INVESTMENTS
I. Investment in India in
i) Government Securities
(Treasury Bills) 30,974,058 32,607,358
ii) Other approved securities - -
iii) Shares - -
iv) Debentures and Bonds - -
v) Subsidiaries and/or
joint ventures - -
vi) Others - -
30,974,058 32,607,358
II. Investment outside India in
i) Government Securities
(including local authorities) - -
ii) Subsidiaries and/or joint
ventures abroad - -
iii) Others - -
- -
30,974,058 32,607,358
SCHEDULE 9 - ADVANCES
A. i) Bills purchased
and discounted - -
ii) Cash credits, overdraft and
loan repayable on demand # 36,709,490 31,375,911
iii) Term loans - Staff 23 42
36,709,513 31,375,953
B. i) Secured by tangible assets
(Secured primarily by
Fixed Deposits) 154,246 352,886
ii) Covered by bank/
governments guarantees 178,146 208,708
iii) Unsecured 36,377,121 30,814,359
36,709,513 31,375,953
C. I. Advances in India
i) Priority sector * - -
ii) Public sector - -
iii) Banks 16,521 6,876
iv) Others 36,692,992 31,369,077
36,709,513 31,375,953
II. Advances Outside India
i) Due from banks - -
ii) Due from others
(a) Bills purchased
and discounted - -
(b) Syndicated loans - -
(c) Others - -
- -
36,709,513 31,375,953
* Not applicable to the Bank vide RBI letter no. RPCD.
CO.Plan.11642/04.09.09/2008-09 dated 11/05/2009
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
9
9
Year ended Year ended
March 31, March 31,
2022 2021
SCHEDULE 13 - INTEREST
EARNED
Interest/discount on advances/bills 4,082,084 4,698,951
Income on investments 1,213,626 1,317,342
Interest on balances with
the Reserve Bank of India and - -
other inter-bank funds - -
Others - -
5,295,710 6,016,293
SCHEDULE 14 - OTHER
INCOME
Commission, exchange and
brokerage (net)
[Refer Note IV. 2 of Schedule 18] 9,219,965 7,113,175
Net Prot/(Loss) on sale
of investments 14 234
Net Prot/(Loss) on revaluation
of investments - -
Prot on sale of land, building
and other assets 3,206 2,504
Less: Loss on sale of land, building
and other assets (1,383) (4,078)
Net prot on exchange transactions - -
Income earned by way of dividends etc.
from subsidiaries, companies
and/or joint ventures abroad/in India - -
Miscellaneous Income 144,271 115,905
9,366,073 7,227,740
SCHEDULE 15 - INTEREST
EXPENDED
Interest on deposits 1,054,035 1,030,937
Interest on Reserve Bank of India/
interbank borrowings 15,963 1,321
Other Interest - -
1,069,998 1,032,258
(Amount in INR. ‘000) (Amount in INR. ‘000)
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
Schedules forming part of the Financial Statements for the year ended March 31, 2022
SCHEDULE – 18 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
I. The nancial statements for the year ended March 31, 2022 comprises the Balance Sheet, Prot and Loss Account, Cash Flow
Statement and Schedules of the India Branch of American Express Banking Corp. (the “Bank”), which is incorporated in the New
York State Banking Law, United States of America. The Bank’s ultimate holding company is American Express Company, which
is incorporated in the United States of America. The Bank has maintained the books of accounts and other books and papers in the
electronic mode, periodic backup of which have been maintained on servers physically located outside of India.
II. Background: American Express Banking Corp. - India Branch has been granted license by Reserve Bank of India (‘RBI’) to carry
on banking business in India. The license authorises the Bank to conduct credit card business and accept institutional deposits. In
line with the market practice and the RBI Guidelines, the bank issues credit cards and provides payment solutions to corporates and
other entities for their purchases like inventory, xed assets, payroll cost and other expenses like ofce supplies, utilities, advertising,
couriers, etc.
III. Signicant Accounting Policies
1. Basis of preparation: The nancial statements have been prepared and presented under the historical cost convention on the accrual
basis of accounting, unless otherwise stated and are in accordance with the generally accepted accounting principles in India, statutory
provisions prescribed under the Banking Regulation Act, 1949, circulars and guidelines issued by the Reserve Bank of India (RBI)
from time to time and Accounting Standards (AS) prescribed under Section 133 of the Companies Act, 2013 read with Companies
Year ended Year ended
March 31, March 31,
2022 2021
SCHEDULE 16 - OPERATING
EXPENSES
Payments to and provisions
for employees 2,738,675 1,945,048
Rent, taxes and lighting 796,032 266,741
Printing and stationery 54,085 78,496
Advertisement and publicity 4,660,952 4,144,440
Depreciation on Bank's property 559,370 112,497
Director's fee, allowances
and expenses - -
Auditors' fees and expenses
[Refer Note IV. 17 of Schedule 18) 6,247 5,703
Law charges 36,581 9,042
Postage, telegram, telephones etc. 145,643 116,307
Repairs and maintenance 103,223 33,316
Insurance 34,568 30,503
Business Support Cost (net)* 1,866,810 4,800,181
Other expenditure 1,574,339 1,033,989
12,576,525 12,576,263
*Business Support Cost (net) includes Market Support payment
amounting to INR 1,925,458 ('000) received from American
Express Travel Related Services Company, Inc.
SCHEDULE 17 - PROVISIONS
AND CONTINGENCIES *
Depreciation in the value of securities - -
Provision for advances
and receivables 1,064,646 2,602,461
Provision for income tax
and wealth tax :
Income tax - -
Fringe Benet Tax - -
Deferred Income Tax - -
1,064,646 2,602,461
*Refer Note IV.1.g) of
Schedule 18 for details
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
10
10
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
(Accounting Standards) Rules, 2021 to the extent applicable to banks and conform to the statutory requirements prescribed by the
RBI from time to time and current practices prevailing within the banking industry in India.
The nancial statements are presented in Indian Rupees rounded off to the nearest thousand unless otherwise stated.
2. Use of Estimates: The preparation of nancial statements, in conformity with the generally accepted accounting principles, requires
the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent
liabilities) as of the date of the nancial statements and reported income and expenses for the reporting period. Management believes
that the estimates used in the preparation of the nancial statements are prudent and reasonable. Actual results could differ from these
estimates and these differences are recognized prospectively in the current and future periods.
3. Revenue Recognition
(i) Fees and commissions received, net of rebates/commissions paid, are recognized upon the occurrence of the transactions.
Annual card fees, net of direct card acquisition costs are amortized over the period of one year. Joining fees on cards are
recognised in the year of billing.
(ii) Interest income and other charges on card balances are recognized as it accrues, except in the case of non-performing assets,
where it is recognised on realisation, as per the prudential norms prescribed by RBI.
(iii) Recovery from bad debts written off is recognized as income on the basis of actual realization from customers.
(iv) Interest income on discounted instruments is recognised over the tenure of the instruments.
4. Foreign Currency transactions and balances
Transactions denominated in foreign currencies are recorded on the date of transactions at the standard exchange rate determined by
the Bank. Exchange differences arising on the foreign currency transactions settled during the year are recognized in the Prot and
Loss Account of the same year.
Monetary Assets and Liabilities denominated in foreign currencies as at the Balance Sheet date are restated at the closing rates
notied by Foreign Exchange Dealers’ Association of India (FEDAI) and the resultant exchange differences are recognised in the
Prot and Loss Account. Transactions wherein there is no foreign exchange risk, the amounts are carried at the settlement rates.
5. Investments
(i) Classication
In accordance with Reserve Bank of India ('RBI') guidelines, all investments are categorised as ’Held to Maturity’, or ’Held for
Trading’ or ’Available for Sale’.
Investments that the Bank intends to hold to maturity are classied as ‘Held to Maturity’. Investments that are held principally
for resale within ninety days from the date of purchase are classied as ‘Held for Trading’. All other investments are classied
as ‘Available for Sale’. An Investment is classied as ’Held to Maturity’, ’Available for Sale’ or ’Held for Trading’ at the time of
its purchase. Any subsequent change in classication is done as per RBI norms. As on date, all the investments are classied as
’Available for Sale’.
(ii) Valuation
Treasury Bills, being discounted instruments are valued at carrying cost as per RBI guidelines.
(iii) Acquisition Cost
Brokerage, commission, broken period interest etc., paid at the time of acquisition of debt securities are charged to Prot and
Loss Account.
(iv) Disposal of Investments
Prot or loss on sale of investments is recognised in the Prot and Loss Account on trade/settlement date.
6. Advances
Loans and Advances comprise card outstanding and loans to staff. Loans and Advances are stated net of specic provision made
towards Non-Performing Assets (NPAs) and provision towards diminution on restructured advances. Advances under card receivables
are maintained at the card member level.
Provision for NPAs on card balances outstanding is made at card member level as per Bank’s credit loss provisioning policy in
accordance with the prudential norms on Income Recognition, Asset Classication and Provisioning pertaining to Advances issued
by the Reserve Bank of India and are monitored and tracked at a portfolio level. Corporate clients who are solely or jointly liable,
are classied based on their overdue amounts in excess of reserves, as agreed with the client. In the case of sub-standard assets,
in addition to minimum provision requirement prescribed by RBI, the bank makes additional provision based on best estimate of
probable losses. The interest and other income on non-performing assets is not recognised as income until realised.
Provision for Standard Assets and Unhedged Foreign Currency Exposure is made in compliance with the prudential norms on Income
Recognition, Asset Classication and Provisioning pertaining to Advances issued by the Reserve Bank of India and disclosed under
Other Liabilities and Provisions. Provision for Standard Assets are monitored for sufciency using the write off rates basis historical
trend at a portfolio level.
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
11
11
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
The Bank identies all card accounts with delinquencies and generally writes off in the books of account, the outstanding card
receivables which are 210 days past billing from bill generation date. Accounts classied as doubtful/loss are provided at 100% till
written off. Accelerated write off is effected for card receivables which are due for less than 210 days from bill generation date, where
it is evident that the outstanding amount is unlikely to be recovered.
Restructured assets are classied and provided for in accordance with the guidelines issued by RBI from time to time.
Net Receivables from/payables to overseas group entities on account of merchant payments made for spends made by overseas/
Indian card members in India/overseas, have been classied under Other Assets/Other Liabilities in the Financial Statements.
7. Fixed assets and depreciation
(i) Fixed assets are stated at cost less accumulated depreciation. The Bank capitalises all costs relating to acquisition and installation
of xed assets.
(ii) Carrying amounts of cash generating assets are reviewed at each Balance Sheet date to determine whether there is any
impairment. Impairment loss, if any, is recognised in the Prot and Loss Account whenever the carrying amount exceeds the
recoverable amount.
(iii) Depreciation on xed assets is provided on pro-rata basis over the period of the estimated useful life of the asset on Straight
Line Method over the estimated useful life prescribed in Schedule II to the Companies Act, 2013.
(iv) Fixed assets are depreciated over the estimated useful life given in the table below:
Asset Estimated Useful Life
Leasehold Improvements Over the lease period
Data Processing Equipment
Server and Networks 6 years
End User Devices such as laptop, desktop etc. 3 years
Transport Equipment 8 years
Furniture and Fixtures 10 years
Machinery and Equipment
Ofce Equipment 5 years
Software
Perpetual 5 years
Fixed Term As per Term
*Considered at par with End User Devices
8. Accounting for Leases
Leases in which a signicant portion of the risks and rewards of ownership are retained by the lessors are classied as operating lease.
Lease payments for assets taken on operating leases are recognized as an expense in the Prot and Loss Account over the lease term
on a straight line basis.
9. Employee Benets
a) Provident Fund
The Bank contributes to mandatory government administered provident funds which are dened contribution schemes as
the Bank does not carry any further obligation, apart from the contributions made on a monthly basis. The contributions are
accounted for on an accrual basis and recognized in the Prot and Loss Account.
b) Pension
(i) The Bank has a pension scheme which is a dened contribution plan. Eligible employees of the Bank are entitled to receive
retirement benets under the Bank’s Superannuation scheme under a dened contribution plan to the pension fund. Contributions
under these schemes are recognised in the Prot and Loss Account in the period in which they accrue.
(ii) In addition to the above arrangement, there are deferred (exited) employees who had opted for the dened benet scheme.
The Bank has set up a Pension Trust viz. American Express Banking Corp. India Staff Superannuation Fund to manage the
contributions to the pension fund. The Bank provides for its pension liability based on actuarial valuation of the pension liability,
based on Projected Unit Credit Method, as at the Balance Sheet date carried out by an independent actuary and contributes to
the pension fund. The contributions made to the Trust are recognized as plan assets. The dened benet obligation as reduced
by fair value of plan assets is recognized in the Balance Sheet. Actuarial gains or losses are recognized in the Prot and Loss
Account in the year in which they arise.
c) Gratuity
The Bank has set up a Gratuity Trust viz. American Express Banking Corp. India Employees Gratuity Fund which is dened
benet scheme to manage the contributions to the gratuity fund. The Bank provides for its gratuity liability based on actuarial
valuation of the gratuity liability as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
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SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
independent actuary and contributes to the gratuity fund. The contributions made to the Trust are recognized as plan assets. The
dened benet obligation as reduced by fair value of plan assets is recognized in the Balance Sheet. Actuarial gains or losses
are recognized in the Prot and Loss Account in the year in which they arise.
d) Leave encashment/Compensated Absences
The Bank provides for leave encashment/compensated absences liability, which is payable on separation or termination of
service. The liability for leave encashment, which is a dened benet scheme, is provided based on actuarial valuation as at the
Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary.
10. Income Taxes
Income tax expense comprises of the current tax, the net change in the deferred tax asset and the deferred tax liability during the
year. Current tax is determined as the amount of tax payable in respect of taxable income for the year on the basis of the provisions
of the Income Tax Act, 1961.
Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax asset, on timing differences, being the
difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more
subsequent periods.
In case there are carry forward tax losses, the Deferred Tax Asset is recognized only when there is virtual certainty supported by
convincing evidence that sufcient future taxable income will be available against which such deferred tax assets can be realised.
11. Membership Reward Points
The Membership Reward programme is a card-based rewards programme through which eligible card members can earn points for
purchases charged on the Bank’s card products. Membership Rewards points can be redeemed for a broad variety of rewards. The
Bank establishes balance sheet provisions that represent the estimated cost of points earned to date that are ultimately expected to be
redeemed based on the management’s judgement and shown as a part of Other Liabilities and Provisions. The cost of Membership
Reward Points is included as part of Advertisement and Publicity Expense.
12. Accounting for Provision, Contingent Liabilities and Contingent Assets
The Bank creates a provision when there is a present obligation as a result of a past event that probably requires an outow of
resources and a reliable estimate of the amount of the obligation can be made.
A disclosure for Contingent Liability is made when there is a possible obligation or a present obligation that may, but probably will
not, require an outow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of
outow of resources is remote, no provision or disclosure is made.
The provisions are reviewed at each Balance Sheet date and adjusted to reect the current best estimate.
Contingent assets are not recognized in the nancial statements.
13. Segment Reporting
The Bank has recognised Banking Operations and Treasury operations, as the primary reporting Business Segments, in accordance
with the RBI guidelines on compliance with Accounting Standard – 17 issued by Institute of Chartered Accountants of India as
specied under Section 133 of Companies Act, 2013 read with Companies (Accounting Standards) Rules, 2021.
Banking Operations include card operations and institutional deposits. Interest income and expense (other than those identied with
the Treasury Operations), other identied income and operating expenses are reckoned in the operating results of this segment.
Treasury activities are limited to managing liquidity and funding requirements for business operations of the bank as a support function
and doesn’t undertake any independent business activity such as trading investments, derivatives, etc. It includes the investments
and balance in bank account to meet the Statutory Liquidity Ratio (SLR), Liquidity Coverage Ratio (LCR) and maintenance of Cash
Balances to meet the Cash Reserve Ratio (CRR) requirement and the corresponding funding to meet these requirements. The interest
income and interest expenses related to these activities comprise the revenue and expense of this segment.
14. Cash and Cash Equivalents
Cash and cash equivalents includes cash in hand, balance with RBI, demand deposits with banks and other xed deposits with bank
with original maturities of three months or less.
15. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date to ascertain if there is any indication of impairment based on
internal/external factors in accordance with Accounting Standard – 28, Impairment of Assets issued by Institute of Chartered Accountants
of India as specied under Section 133 of Companies Act, 2013 read with Companies (Accounting Standards) Rules, 2021. The carrying
amount is reduced to the recoverable amount and reduction is recognised as an impairment loss in the Prot and Loss Account.
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
13
13
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
IV. NOTES TO FINANCIAL STATEMENTS
1. Statutory Disclosures as per RBI norms:
a) Composition of Regulatory Capital
In terms of the extant RBI guidelines on Basel III Capital Regulations, as of March 31, 2022, the Bank is required to maintain
a minimum Pillar I Capital to Risk-weighted Asset Ratio (CRAR) (including capital conservation buffer of 2.5%) of 11.5%.
Further, within this overall capital requirement, the Bank is also required to maintain a Minimum Common Equity Tier 1
(including capital conservation buffer of 2.5%) of 8% and Minimum Tier 1 Capital of 7%. The Bank’s Capital Adequacy Ratio,
calculated as per the Basel III Capital Regulations is provided here under.
(Amount in ‘000)
Particulars 2021-22 2020-21
Common Equity Tier 1 capital (i) 16,913,450 16,962,836
Additional Tier I Capital (ii) - -
Tier I Capital (i+ii) 16,913,450 16,962,836
Tier II Capital 9,733,797 12,766,087
Total Capital (Tier I and Tier II) 26,647,247 29,728,923
Total Risk Weighted Assets (RWAs) 92,738,675 79,195,660
CET 1 Ratio (CET 1 as a % of RWAs) 18.24% 21.42%
Tier I Ratio (Tier 1 capital as a % of RWAs) 18.24% 21.42%
Tier II Ratio (Tier 2 capital as a % of RWAs) 10.49% 16.12%
Capital to Risk Weighted Assets Ratio (CRAR) (Total capital as a % of RWAs) 28.73% 37.54%
Leverage Ratio 17.00% 18.98%
Percentage of the shareholding of the Government of India in public sector banks NA NA
Amount of paid-up equity capital raised during the year
– Head Ofce Funds
– Conversion of Subordinated Debt to Head Ofce Funds
-
-
-
4,550,000
Amount of non-equity Tier 1 capital raised during the year, of which-
– Basel III complaint Perpetual Non-Cumulative Preference shares
– Basel III complaint Perpetual Debt Instruments
-
-
-
-
Amount of Tier II capital raised during the year, of which
– Perpetual Debt Capital instrument
– Perpetual Non-cumulative Preference Share Capital
-
-
-
-
b) Subordinated Debt - Tier 2 Debt Capital Raised in the form of Head Ofce Borrowings in Foreign Currency:
Schedule 4 – Borrowings includes an amount of Rs.4,950,000 thousands and Rs.10,331,300 thousands pertaining to Tier 2 debt
capital raised in the form of Head Ofce borrowings in foreign currency during 2018-19 and 2019-20 respectively from Head
Ofce. Details of the Head Ofce borrowings are as under:
(Amount Rs. in ‘000)
Particulars Tranche 1 Tranche 2 Tranche 3
Date of Borrowing 04-May-2018 11-Mar-2020 17-Mar-2020
Rate of Interest Interest Free Interest Free Interest Free
Amount (Rs. ’000) 4,950,000 5,150,600 5,180,700
Date of Repayment 04-May-2028 11-Mar-2026 17-Mar-2027
Call Option with the Bank After completion of 5 years
from the Issuance date (04-
May-2023), with a prior notice
of 90 days to the Lender. The
bank has decided to exercise
the prepayment option only
after 01-May-2025.
After completion of 5 years
from the Issuance date
(11-Mar-2025), with a
prior notice of 90 days to
the Lender.
After completion of 5 years
from the Issuance date (17-
Mar-2025), with a prior notice
of 90 days to the Lender.
c) Business/Information Ratios:
Particulars 2021-22 2020-21
a. Interest income as a percentage to working funds (%) 7.02 8.47
b. Non-interest income as a percentage to working funds (%) 12.42 10.18
c.
d.
e.
Cost of deposits (%)
Net Interest margin (%)
Operating prot as a percentage to working funds (%)
3.77
6.40
1.34
4.40
7.75
(0.51)
f. Return on assets (%) (0.07) (4.18)
g. Business (deposits plus advances) per employee (Amount in Rs. ’000) 46,317 40,368
h. Prot/(loss) per employee (Amount in Rs. ’000) (38) (2,144)
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
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Economic & Political Weekly
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SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
Denitions:
a) Working funds is the average of total assets as reported in return Form X under Section 27 of Banking Regulation Act,
1949 (excluding accumulated losses) during the year.
b) Operating prot = (Interest income + other income – interest expenses – operating expenses – amortization of premium
on investments – prot/(loss) on sale of xed assets).
c) “Business” is the average of the total of advances and deposits (net of inter-bank deposits).
d) Productivity ratios are based on number of employees at year end.
d) Asset Liability Management - Maturity Pattern of Certain Assets and Liabilities
Classication of assets and liabilities under the different maturity buckets are based on the estimates and assumptions used by
the Bank. These estimates and assumptions are based on the guidelines on Asset Liability Management issued by Reserve Bank
of India.
(Amount Rs. in ‘000)
Particulars Day – 1 2-7 Days 8-14 Days 15-30 Days 31 Days &
upto
2 months
Over 2
Months
and upto
3 months
Over 3
Months
and upto
6 months
Over 6
Months
and upto
1 year
Over
1 Year and
upto
3 years
Over 3
Year and
upto
5 years
Over
5 years
Total
Deposits -
Current Year 150,000 1,321,714 810,650 2,419,131 1,810,689 1,580,187 3,919,447 6,627,550 9,541,312 - - 28,180,680
Previous Year - 1,371,128 1,003,251 2,853,141 1,073,426 1,181,920 669,101 6,424,356 10,810,793 - - 25,387,116
Advances -
Current Year 711,455 4,268,731 4,980,186 11,383,282 1,700,792 1,449,446 3,266,566 2,010,895 5,429,390 1,373,299 135,471 36,709,513
Previous Year 581,022 3,486,130 4,067,151 9,296,346 1,715,376 1,247,668 2,701,457 2,027,277 5,617,726 517,974 117,826 31,375,953
Investments -
Current Year 21,962,031 635,849 628,379 483,612 301,333 251,166 639,633 1,436,810 2,118,405 2,445,263 71,577 30,974,058
Previous Year 24,836,458 209,868 450,139 624,861 170,598 52,690 210,675 867,018 2,354,304 2,785,636 45,111 32,607,358
Borrowings -
Current Year 1,146,292 - - - - - - 4,619,149 - 15,281,300 - 21,046,741
Previous Year 403,734 - - - - - - - - 15,281,300 - 15,685,034
Foreign Currency
Assets -
Current Year - - - 597,641 - - - - - - - 597,641
Previous Year - - - 4 - - - - - - - 4
Foreign Currency
Liabilities -
Current Year 29,968 182,308 - 597,167 21,530 - - 79,166 - 15,281,300 - 16,191,439
Previous Year 18,430 318,216 340 123,416 28,172 - - 124,803 - 15,281,300 - 15,894,677
e) Exposures
(i) Exposure to real estate sector (Amount Rs. in ‘000)
Particulars 2021-22 2020-21
a) Direct exposure 100,994 23,485
(i) Residential Mortgages – 13,575 3,700
Lending fully secured by mortgages on residential property that is or will
be occupied by the borrower or that is rented
- -
(ii) Commercial Real Estate – 87,419 19,785
Lending secured by mortgages on commercial real estate - -
Others 87,419 19,785
(iii) Investments in Mortgage Backed Securities (MBS) and other securitized
exposures–
- -
a. Residential - -
b. Commercial Real Estate - -
b) Indirect Exposure - -
Fund based and non-fund based exposures on National Housing Bank (NHB)
and Housing Finance Companies (HFCs)
- -
Total Exposure to Real Estate Sector 100,994 23,485
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
15
15
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
(ii) Exposure to capital market
(Amount Rs. in ‘000)
Particulars 2021-22 2020-21
(i) direct investment in equity shares, convertible bonds, convertible debentures
and units of equity oriented mutual funds the corpus of which is not exclusively
invested in corporate debt;
- -
(ii) advances against shares/bonds/debentures or other securities or on clean basis to
individuals for investment in shares (including IPOs/ESOPs), convertible bonds,
convertible debentures, and units of equity oriented mutual funds;
- -
(iii) advances for any other purposes where shares or convertible bonds or
convertible debentures or units of equity oriented mutual funds are taken as
primary security;
- -
(iv) advances for any other purposes to the extent secured by the collateral security
of shares or convertible bonds or convertible debentures or units of equity
oriented mutual funds i.e. where the primary security other than shares/
convertible bonds/convertible debentures/units of equity oriented mutual funds `
does not fully cover the advances;
- -
(v) secured and unsecured advances to stockbrokers and guarantees issued on
behalf of stockbrokers and market makers; 162,542 20,828
(vi) loans sanctioned to corporates against the security of shares/bonds/debentures
or other securities or on clean basis for meeting promoter’s contribution to the
equity of new companies in anticipation of raising resources;
- -
(vii) bridge loans to companies against expected equity ows/issues; - -
(viii) underwriting commitments taken up by the banks in respect of primary issue of
shares or convertible bonds or convertible debentures or units of equity oriented
mutual funds;
- -
(ix) nancing to stockbrokers for margin trading; - -
(x) all exposures to Venture Capital Funds (both registered and unregistered) - -
Total Exposure to Capital Market 162,542 20,828
f) Risk Category wise Country Exposure
Provision for country risk exposure in terms of RBI Circular DBOD.BP.BC.71/21.04.103/2002-03 dated June 17, 2004 is as
follows:
(Amount Rs. in ‘000)
Risk Category Exposure (Net) as at
March 31, 2022
Provision as at
March 31, 2022
Exposure (Net) as at
March 31, 2021
Provision as at
March 31, 2021
Insignicant 597,576 - 4 -
Low 65 - - -
Moderately Low - - - -
Moderate - - - -
Moderately High - - - -
High - - - -
Very High - - - -
Total 597,641 - 4 -
g) Provisions and Contingencies: (Amount Rs. in ‘000)
Particulars 2021-22 2020-21
Provision for depreciation on Investment
Provision for Non-Performing Investment
Provision towards Non-Performing Assets
Provision towards Standard assets
Write-offs
Recoveries
Provision made towards Income tax and wealth tax
Other Provisions and Contingencies
-
-
(56,915)
(316,485)
2,254,928
(824,332)
-
7,450
-
-
1,750,305
(44,229)
1,552,006
(703,828)
-
48,207
TOTAL 1,064,646 2,602,461
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
16
16
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
h) Composition of Investment Portfolio
As at 31
st
March, 2022 (Amount Rs. in ‘000)
Investments in India
Government
Securities
Other
Approved
Securities
Shares Debentures
and Bonds
Subsidiaries
and/or joint
ventures
Others Total
investments
in India
Held to Maturity
Gross - - - - - - -
Less: Provision for
non-performing
investments (NPI)
- - - - - - -
Net - - - - - - -
Available for sale
Gross 30,974,058 - - - - - 30,974,058
Less: Provision for
depreciation and NPI
- - - - - - -
Net 30,974,058 - - - - - 30,974,058
Held for Trading
Gross - - - - - - -
Less: Provision for
depreciation and NPI
- - - - - - -
Net - - - - - - -
Total Investments
30,974,058 - - - - - 30,974,058
Less: Provision for
non-performing
investments
- - - - - - -
Less: Provision for
depreciation and NPI
- - - - - - -
Net 30,974,058 - - - - - 30,974,058
As at 31
st
March, 2021 (Amount Rs. in ‘000)
Investments in India
Government
Securities
Other
Approved
Securities
Shares Debentures
and Bonds
Subsidiaries
and/or joint
ventures
Others Tot al
investments
in India
Held to Maturity
Gross - - - - - - -
Less: Provision for
non-performing
investments (NPI)
- - - - - - -
Net - - - - - - -
Available for sale
Gross 32,607,358 - - - - - 32,607,358
Less: Provision for
depreciation and NPI
- - - - - - -
Net 32,607,358 - - - - - 32,607,358
Held for Trading
Gross - - - - - - -
Less: Provision for
depreciation and NPI
- - - - - - -
Net - - - - - - -
Total Investments
32,607,358 - - - - - 32,607,358
Less: Provision for
non-performing
investments
- - - - - - -
Less: Provision for
depreciation and NPI
- - - - - - -
Net 32,607,358 - - - - - 32,607,358
The bank does not have investments outside India.
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
17
17
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
i) Movement of provisions for depreciation and Investment Fluctuation Reserve (Amount Rs. in ‘000)
Particulars 2021-22 2020-21
Movement of provision held towards depreciation on investments
a) Opening Balance
b) Add: Provisions made during the year
c) Less: Write off/write back of excess provisions during the year
d) Closing balance
-
-
-
-
-
-
-
-
Movement of Investment Fluctuation Reserve
a) Opening Balance
b) Add: Amount transferred during the year
c) Less: Drawdown
d) Closing balance
474
-
-
474
474
-
-
474
Closing balance in IFR as a percentage of closing balance of investments in AFS and
HFT/Current category
0.0015% 0.0015%
j) Single Borrower Limit (SBL) and Group Borrower Limits (GBL):
During the year, the Bank’s credit exposure to single borrowers and group borrowers were within the limits prescribed by
Reserve Bank of India.
k) Disclosure of complaints:
Summary information on complaints received by the bank from customers and from the OBOs
S No Particulars 2021-22 2020-21
Complaints received by the bank from its customers
1 No of complaints pending at the beginning of the year 1,083 368
2 No of complaints received during the Year 22,157 25,550
3 No of complaints disposed during the year 22,751 24,835
3.1 Of which, number of complaints rejected by the bank - -
4 No of complaints outstanding at the end of the year 489 1,083
Maintainable complaints received by the bank from OBOs
5 Number of maintainable complaints received by the bank from OBOs 238 337
5.1 Of 5, number of complaints resolved in favor of the bank by Bos 100 136
5.2 Of 5, number of complaints resolved through conciliation/mediation/
settled/withdrawn/advisories issued by Bos 138 201
5.3 Of 5, number of complaints resolved after passing of Awards by Bos
against the bank - -
6 Number of Awards unimplemented within the stipulated time
(other than those appealed) - -
Grounds of complaints received by the bank from customers: (Top 5 grounds required)
Grounds of complaints,
(i.e. complaints relating to)
Number of
complaints
pending at the
beginning of
the year
Number of
complaints
received
during the
year
% increase/(decrease)
in the number
of complaints
received over the
previous year
Number of
complaints
pending at
the end of
the year
Of 5, number of
complaints
pending
beyond 30 days
1 2 3 4 5 6
2021-22
Levy of charges without
prior notice/excessive
charges/foreclosure charges 295 6,538 -18% 104 -
Account opening/difculty
in operation of accounts 208 3,686 -31% 71 -
Credit Cards 140 3,267 -13% 78 -
Non-observance of Fair
Practices Code 61 1,887 31% 62 -
Mis-selling/Para-banking 44 1,144 17% 37 -
Others 335 5,635 -8% 137 -
Total 1,083 22,157 -13% 489 -
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
18
18
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
Grounds of complaints,
(i.e. complaints relating to)
Number of
complaints
pending at the
beginning of
the year
Number of
complaints
received
during the
year
% increase/(decrease)
in the number
of complaints
received over the
previous year
Number of
complaints
pending at
the end of
the year
Of 5, number of
complaints
pending
beyond 30 days
1 2 3 4 5 6
2020-21
Levy of charges without
prior notice/excessive
charges/foreclosure charges 90 7,927 89% 295 -
Account opening/difculty
in operation of accounts 51 5,337 -10% 208 -
Credit Cards 96 3,766 -1% 140 -
Non-observance of Fair
Practices Code 14 1,437 -29% 61 -
Mis-selling/Para-banking 20 980 26% 44 -
Others 97 6,103 -3% 335 1
Total 368 25,550 11.06% 1083 1
l) Concentration of Deposits, Advances, Exposures and NPAs :
Concentration of Deposits
(Amount Rs. in ‘000)
S. No. Particulars 2021-22 2020-21
1 Total Deposits of twenty largest depositors 27,915,476 25,070,748
2 Percentage of Deposits of twenty largest depositors to Total Deposits of the
Bank 99.06% 98.75%
Concentration of Advances
(Amount Rs. in ‘000)
S. No. Particulars 2021-22 2020-21
1 Total Advances to twenty largest borrowers 1,923,737 1,932,552
2 Percentage of Advances of twenty largest borrowers to Total Advances
of the Bank 4.96% 5.76%
Concentration of Exposures
(Amount Rs. in ‘000)
S. No. Particulars 2021-22 2020-21
1 Total Exposure to twenty largest borrowers/customers 3,841,484 4,178,740
2 Percentage of Exposures to twenty largest borrowers/customers to Total
Exposure of the bank on borrowers/customers 1.72% 1.87%
Concentration of NPAs
(Amount Rs. in ‘000)
S. No. Particulars 2021-22 2020-21
1 Total Exposure to the top twenty NPA accounts 863,848 762,092
2 Percentage of exposures to the twenty largest NPA exposure to total
Gross NPAs 38.00% 30.09%
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
19
19
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
m) Asset Quality
i. Classication of advances and provisions held
As at 31
st
March 2022 (Amount Rs. in ‘000)
Standard Non-Performing Total
Total
Standard
advances
Sub-
standard
Doubtful Loss Total Non-
Performing
Advances
Gross Standard Advances and NPAs
Opening balance 31,025,588 1,881,741 574,949 76,412 2,533,102 33,558,690
Add: Additions during the year 6,866,966
Less: Reductions during the year 7,126,536
Closing balance 36,535,425 1,038,353 1,235,179 - 2,273,532 38,808,957
Reductions in Gross NPAs due to:
i) Upgradation 215,497
ii) Recoveries (excluding recoveries
from upgraded accounts)
4,759,504
iii) Technical/Prudential16 Write-offs -
iv) Write-offs other than those under
(iii) above
2,151,535
Provisions (excluding Floating
Provisions)
Opening balance of provisions held 870,382 1,474,165 574,949 76,412 2,125,526 2,995,908
Add: Fresh provisions made during
the year
5,921,183
Less: Excess provision reversed/
Write-off loans
5,978,097
Closing balance of provisions held 580,277 833,433 1,235,179 - 2,068,612 2,648,889
Net NPAs
Opening balance 407,576 - - 407,576
Add: Fresh additions during the year 945,783
Less: Reductions during the year 1,148,439
Closing balance 204,920 - - 204,920 204,920
Floating Provisions -
Opening balance
-
Add: Additional provisions made
during the year
-
Less: Amount drawn down during
the year
-
Closing balance of oating provisions
-
Technical write-offs and the
recoveries made thereon
Opening balance of Technical/
Prudential written-off accounts
-
Add: Technical/Prudential write-offs
during the year
-
Less: Recoveries made from
previously technical/prudential
written-off accounts during the year
-
Closing balance
-
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
20
20
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
As at 31
st
March 2021 (Amount Rs. in ‘000)
Standard Non-Performing Total
Total
Standard
advances
Sub-
standard
Doubtful Loss Total Non-
Performing
Advances
Gross Standard Advances and NPAs
Opening balance 39,505,270 729,012 71,666 491 801,169 40,306,439
Add: Additions during the year 4,049,789
Less: Reductions during the year 2,317,856
Closing balance 31,025,588 1,881,741 574,949 76,412 2,533,102 33,558,690
Reductions in Gross NPAs due to:
i) Upgradation 549
ii) Recoveries (excluding recoveries
from upgraded accounts)
1,047,223
iii) Technical/Prudential16 Write-offs -
iv) Write-offs other than those under
(iii) above
1,270,084
Provisions (excluding Floating
Provisions)
Opening balance of provisions held 914,612 360,427 71,666 491 432,584 1,347,196
Add: Fresh provisions made during
the year
3,066,562
Less: Excess provision reversed/Write-
off loans
1,373,620
Closing balance of provisions held 870,382 1,474,165 574,949 76,412 2,125,526 2,995,908
Net NPAs
Opening balance 368,585 - - 368,585
Add: Fresh additions during the year 983,227
Less: Reductions during the year 944,236
Closing balance 407,576 - - 407,576 407,576
Floating Provisions -
Opening balance
-
Add: Additional provisions made
during the year
-
Less: Amount drawn down during
the year
-
Closing balance of oating provisions
-
Technical write-offs and the
recoveries made thereon
Opening balance of Technical/
Prudential written-off accounts
-
Add: Technical/Prudential write-offs
during the year
-
Less: Recoveries made from
previously technical/prudential
written-off accounts during the year
-
Closing balance
-
Ratios (in %) 2021-22 2020-21
Gross NPA to Gross Advances 5.86% 7.55%
Net NPA to Net Advances 0.56% 1.30%
Provision Coverage Ratio 94.88% 87.40%
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
21
21
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
n) Sector-wise Advances and Gross NPAs
(Amount Rs. in ‘000)
S. No. Sector 2021-22 2020-21
Outstand-
ing Total
Advances
Gross
NPAs
Percentage
of Gross
NPA to
Total
Advances
Outstand-
ing Total
Advances
Gross
NPAs
Percentage
of Gross
NPA to
Total
Advances
A Priority Sector*
1 Agriculture and allied activities - - - - - -
2 Industry (Micro & small,
Medium and Large)
- - - - - -
3 Services - - - - - -
4 Personal Loans - - - - - -
Sub Total (A) - - - - - -
B Non Priority Sector
1 Agriculture and allied activities
- - - - - -
2 Industry (Micro & small, Medium
and Large)
2,065,870 250,092 12.11% 1,676,657 105,142 6.27%
– Food Processing
218,043 1,558 0.71% 226,257 4 0.00%
– Chemicals and Chemical Products
(Dyes, Paints, etc.)
463,367 64,091 13.83% 382,695 25,801 6.74%
– All Engineering (Electronics & Others)
621,853 95,474 15.35% 407,107 50,790 12.48%
– Others
762,607 88,969 11.67% 660,598 28,547 4.32%
3 Services 4,853,440 1,008,746 20.78% 3,398,530 804,311 23.67%
– Computer Software
1,291,435 118,757 9.20% 547,450 90,143 16.47%
– Tourism, Hotel and Restaurants
675,648 28,843 4.27% 646,340 9,888 1.53%
– Professional Services
1,161,946 517,220 44.51% 560,056 213,276 38.08%
– Retail Trade
466,313 7,268 1.56% 799,226 413,279 51.71%
– Others
1,258,098 336,658 26.76% 845,458 77,725 9.19%
4 Personal Loans 31,889,647 1,014,694 3.18% 28,483,503 1,623,649 5.70%
Sub Total (B) 38,808,957 2,273,532 5.86% 33,558,690 2,533,102 7.55%
Totals (A+B) 38,808,957 2,273,532 5.86% 33,558,690 2,533,102 7.55%
* Not applicable to the Bank vide RBI letter no. RPCD.CO.Plan.11642/04.09.09/2008-09 dated 11/05/2009
o) Particulars of resolution plan and restructuring (Amount Rs. in ‘000)
Agriculture and
allied activities
Corporates
(excluding MSME)
Micro, Small and
Medium Enterprises
(MSME)
Retail (excluding
agriculture and
MSME)
Total
FY 21-22 FY 20-21 FY 21-22 FY 20-21 FY 21-22 FY 20-21 FY 21-22 FY 20-21 FY 21-22 FY 20-21
Standard
Number of borrowers - - - - 8 10 1,571 1,993 1,579 2,003
Gross Amount - - - - 1,582 14,501 189,157 331,090 190,739 345,591
Provision held - - - - 430 4,216 47,163 83,063 47,593 87,279
Sub-
standard
Number of borrowers - - - - 8 2 2,517 2,253 2,525 2,255
Gross Amount - - - - 4,231 1,073 289,399 321,964 293,630 323,037
Provision held - - - - 3,997 974 270,893 294,801 274,890 295,775
Doubtful
Number of borrowers - - - - 2 3 1,308 491 1,310 494
Gross Amount - - - - 377 5,197 116,128 46,903 116,505 52,100
Provision held - - - - 377 5,197 116,128 46,903 116,505 52,100
Total
Number of borrowers - - - - 18 15 5,396 4,737 5,414 4,752
Gross Amount - - - - 6,190 20,772 594,684 699,956 600,874 720,728
Provision held - - - - 4,804 10,387 434,184 424,766 438,988 435,153
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
22
22
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
p) Payment of DICGC Insurance Premium
(Amount Rs. in ‘000)
Sr. No. Particulars 2021-22 2020-21
i)
Payment of DICGC Insurance Premium 40,791 35,993
ii)
Arrears in payment of DICGC premium - -
q) Provisioning Coverage Ratio (PCR)
In terms of the RBI guidelines, the Bank’s Provisioning Coverage Ratio as of September 30, 2010 was 82.88%. The provisioning
coverage ratio of the Bank with regard to the NPAs as on March 31, 2022 computed as per the RBI guidelines is 94.88% [2020-
21: 87.40%].
r) Intra-Group Exposure
As a prudential measure aimed at better risk management and avoiding concentration and contagion of credit and liquidity risk
that may arise from Intra Group Exposures, the Reserve Bank of India (RBI) has issued Guidelines on Management of Intra
Group Transactions and Exposures (ITEs) vide its Circular No. RBI/2013-14/487 DBOD.No.BP.BC.96/21.06.102/2013-14
dated February 11, 2014. Quantitative disclosures under the above guidelines are provided here.
(Amount Rs. in ‘000)
S. No. Particulars March 31, 2022 March 31, 2021
1 Total amount of intra-group exposures 47,845 274,488
2 Total amount of top-20 intra-group exposures 47,845 274,488
3 Percentage of intra-group exposures to total exposure of the bank on
borrowers/customers
0.02% 0.12%
4 Details of breach of limits on intra-group exposures and regulatory
action thereon, if any
None None
s) Transfers to Depositor Education and Awareness Fund (DEAF)
As per guidelines issued by RBI in relation to Depositor Education and Awareness Fund Scheme, 2014, banks are required to
transfer to a designated fund, the amounts becoming due in each calendar month i.e. proceeds of the inoperative accounts and
balances remaining unclaimed for ten years or more as specied in the Scheme and the interest accrued thereon on the last
working day of the subsequent month.
Below are the details of amount transferred to Depositor Education and Awareness Fund as of March 2022.
(Amount Rs. in ‘000)
Particulars 2021-22 2020-21
Opening balance of amounts transferred to DEAF 88,779 55,029
Add : Amounts transferred to DEAF during the year 50,565 33,750
Less : Amounts reimbursed by DEAF towards claims 107 -
Closing balance of amounts transferred to DEAF 139,237 88,779
t) Liquidity Coverage Ratio
As per ‘Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and
LCR Disclosure Standards’ dated June 9, 2014 (Circular Ref No. RBI/2012-13/635/DBOD.BP.BC.No.120/21.04.098/2013-
14) and subsequent amendments, banks are required to monitor their resilience to potential liquidity disruptions under stress
scenarios by ensuring that they have sufcient high quality liquid assets to survive an acute stress scenario lasting for 30 days
and fund their activities with more stable sources of funding on an ongoing basis.
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
23
23
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
Banks are required to maintain High Quality Liquid Assets as a %age of its Net Cash Outows, at a minimum as prescribed
by the extant regulations.
Qualitative Disclosures
Liquidity Risk is dened as the inability of the Bank to meet its ongoing nancial and business obligations as they become due,
at a reasonable cost. The Bank manages its liquidity risk by maintaining access to a diverse set of readily marketable securities,
and contingent sources of liquidity to ensure that it can continuously meet its business requirements and nancial obligations.
The India Country ALCO chaired by the CEO oversees the Bank’s liquidity and funding risk program including adherence to
internal and regulatory funding/liquidity limits.
General principles and the overall framework for managing liquidity and funding risk are dened in the Liquidity and Funding
Policy of the Bank duly approved by the Country Executive Committee (CEC).
The Bank incurs and accepts liquidity risk through its established business model and through the normal course of offering
its products and services. The liquidity risk the Bank is willing to accept is controlled through a liquidity risk tolerance limit
which provides for the maintenance of a cushion of high quality, unencumbered liquid assets to be held against identied
funding requirements under stress for dened liquidity risk survival horizon. In addition, the Bank maintains a contingency
funding plan which provides a framework for anrealyzing and responding to liquidity events that are both market-driven as
well as institution-specic. Further, the CFP describes the governance and protocol to be put into effect upon the occurrence of
a liquidity event and details the roles and responsibilities of Senior Management.
The Bank also seeks to diversify its funding sources across capital, institutional deposits, subordinated debt from head ofce
and lines of credit from local banks. Funding from signicant counterparties is monitored regularly as part of its ongoing
liquidity management.
The Bank has institutionalized a process of measuring, monitoring and reporting of the LCR in line with the Reserve Bank of
India’s guidelines on LCR. The Bank has been in compliance with the minimum standard as set by the extant regulations since
the guidelines became applicable.
The LCR is calculated by dividing the amount of high-quality liquid unencumbered assets (HQLA) by the estimated net cash
outows over a stressed 30 calendar day period.
Detailed compositions of elements of the LCR are listed below –
High Quality liquid assets (HQLA)
Assets are HQLA if they can be converted into cash at little or no loss of value. The Bank holds stock of Level 1 HQLA in the
form of excess CRR balances with RBI and excess Government securities over and above the SLR requirements. Additionally,
the Bank also reckons government securities within the mandatory SLR requirement, to the extent allowed by the Reserve Bank
under Marginal Standing Facility and Facility to avail Liquidity for LCR as Level 1 HQLA.
Net Cash Outows
The total net cash outows are dened as the total expected cash outows minus total expected cash inows for the subsequent
30 calendar days. Total expected cash outows, are calculated by multiplying the outstanding balances of various categories
or types of liabilities by the rates at which they are expected to run off or be drawn down and total expected cash inows are
calculated by multiplying the outstanding balances of various categories of receivables by the rates at which they are expected
to ow in, up to an aggregate cap of 75% of total expected cash outows, in line with RBI guidelines.
The major components of cash outow for the Bank are unsecured wholesale funding (lines of credit from Banks and
Institutional Deposits), uncommitted, revocable credit facilities extended to customers and other contractual payouts such
as merchant payables, membership rewards etc. The key constituents of cash inow for the Bank are remittances from card
members, balances with banks etc.
The daily average LCR for the Bank for the quarter ending March 31, 2022 stood at 212.35%
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
24
24
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
Quantitative Disclosures
(Amount Rs. in ‘000)
Qtr ended
31st March 2022
Qtr ended
31st December 2021
Qtr ended
30th September 2021
Qtr ended
30th June 2021
Quarter ended
31st March 2021
Total
Unweighted
Value
(average)
Total
Weighted
Value
(average)
Total
Unweighted
Value
(average)
Total
Weighted
Value
(average)
Total
Unweighted
Value
(average)
Total
Weighted
Value
(average)
Total
Unweighted
Value
(average)
Total
Weighted
Value
(average)
Total
Unweighted
Value
(average)
Total
Weighted
Value
(average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets
(HQLA)
32,025,070 30,288,167 35,220,221 38,192,823 32,990,292
Cash Outows
2 Retail deposits and deposits from
small business customers, of which:
- - - - - - - - - -
(i) Stable deposits - - - - - - - - - -
(ii) Less stable deposits - - - - - - - - - -
3 Unsecured wholesale funding, of
which:
6,732,379 3,025,589 6,315,063 3,160,273 7,100,274 3,737,199 6,729,277 3,070,748 6,821,988 2,784,120
(i) Operational deposits (all
counterparties)
- - - - - - - - - -
(ii) Non-operational deposits (all
counterparties)
6,177,984 2,471,194 5,257,984 2,103,194 5,605,125 2,242,050 6,097,548 2,439,019 6,729,781 2,691,913
(iii) Unsecured debt 554,395 554,395 1,057,079 1,057,079 1,495,149 1,495,149 631,729 631,729 92,207 92,207
4 Secured wholesale funding - - - - -
5 Additional requirements, of which 353,201 353,201 378,820 378,820 397,914 397,914 464,733 464,733 460,787 460,787
(i) Outows related to derivative
exposures and other collateral
requirements
353,201 353,201 378,820 378,820 397,914 397,914 464,733 464,733 460,787 460,787
(ii) Outows related to loss of funding on
debt products
- - - - - - - - - -
(iii) Credit and liquidity facilities - - - - - - - - - -
6 Other contractual funding obligations 9,059,612 9,059,612 9,168,420 9,168,420 8,235,551 8,235,551 7,180,985 7,180,985 8,133,578 8,133,578
7 Other contingent funding obligations 185,580,634 9,279,032 184,220,602 9,211,030 187,763,334 9,388,167 189,401,295 9,470,065 191,245,064 9,562,253
8 Total Cash Outows
21,717,434 21,918,543 21,758,831 20,186,531 20,940,738
Cash Inows
9 Secured lending (e.g. reverse repos) - - - - - - - - - -
10 Inows from fully performing
exposures
9,369,199 4,684,599 10,208,690 5,104,345 8,958,158 4,479,079 7,500,579 3,750,289 10,098,478 5,049,239
11 Other cash inows 11,847,063 1,951,849 13,651,330 2,539,505 14,040,703 2,676,946 12,805,267 1,855,780 15,355,624 2,734,349
12 Total Cash Inows
21,216,262 6,636,448 23,860,020 7,643,850 22,998,861 7,156,025 20,305,846 5,606,069 25,454,102 7,783,588
Total Ad-
justed Value
Total Ad-
justed Value
Total Ad-
justed Value
Total Ad-
justed Value
Total Ad-
justed Value
13 TOTAL HQLA
32,025,070 30,288,167 35,220,221 38,192,823 32,990,292
14 Total Net Cash Outows
15,080,986
14,274,694
14,602,805
14,580,462
13,157,150
15 Liquidity Coverage Ratio (%)
212.35%
212.18%
241.19%
261.95%
250.74%
* Higher of [25% of Total Cash Outows] or [Total Cash Outows less Total Cash Inows]
u) Net Stable Funding Ratio (NSFR)
Qualitative Disclosures
Net stable funding ratio (NSFR) was introduced by Basel Committee on Banking Supervision (BCBS) in order to ensure
that banks maintain a stable funding prole in relation to the composition of the assets, liabilities, and off-balance sheet
activities. NSFR limits overreliance on short-term funding and promotes funding the activities with longer term stable sources
indicting funding stability. RBI issued the regulations on the implementation of the Net Stable Funding Ratio in May 2018 with
minimum requirement of equal to at least 100%. The implementation was effective from 1st October 2021.
NSFR is dened as the amount of available stable funding relative to the amount of required stable funding. “Available stable
funding” (ASF) is dened as the portion of capital and liabilities expected to be reliable over the time horizon considered by
the NSFR, which extends to one year. The amount of stable funding required ("Required stable funding") (RSF) of a specic
institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution as
well as those of its off-balance sheet (OBS) exposures.
General principle and the overall framework for managing the liquidity and funding risk are dened in the liquidity and funding
Policy of the Bank duly approved by the Country Executive Committee (CEC).
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
25
25
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
Following table sets out the details of NSFR of the bank as on 31st December, 2021.
(Amount Rs. in ‘000)
Unweighted value by residual maturity Weighted
value
No maturity < 6 months 6 months to
< 1yr
≥ 1yr
ASF ITEM
1 Capital (2+3) 16,820,676 - - 25,532,300 42,352,976
2 Regulatory capital 16,820,676 - - 9,168,780 25,989,456
3 Other capital instruments - - - 16,363,520 16,363,520
4 Retail deposits and deposits from
small business customers: (5+6)
- - - - -
5 Stable deposits - - - - -
6 Less stable deposits - - - - -
7 Wholesale funding: (8+9) - 14,038,743 7,459,430 3,629 10,750,901
8 Operational deposits - - - - -
9 Other wholesale funding - 14,038,743 7,459,430 3,629 10,750,901
10 Other liabilities: (11+12) 14,695,155 443,067 218,729 323,412 -
11 NSFR derivative liabilities - - -
12 All other liabilities and equity not
included in the above categories
14,695,155 443,069 218,729 323,410 -
13 Total ASF (1+4+7+10)
53,103,877
RSF ITEM
14 Total NSFR high-quality liquid assets
(HQLA)
1,525,929
15 Deposits held at other nancial
institutions for operational purposes
- - - - -
16 Performing loans and securities:
(17+18+19+21+23)
27,465,823 - - - 13,726,797
17 Performing loans to nancial
institutions secured by Level 1
HQLA
- - - - -
18 Performing loans to nancial
institutions secured by non-Level 1
HQLA and unsecured performing
loans to nancial institutions
17,470 - - - 2,621
19 Performing loans to non-nancial
corporate clients, loans to retail and
small business customers, and loans
to sovereigns, central banks, and
PSEs, of which:
27,448,353 - - - 13,724,176
20 With a risk weight of less than or
equal to 35% under the Basel II
Standardised Approach for credit risk
- - - - -
21 Performing residential mortgages, of
which:
- - - - -
22 With a risk weight of less than or
equal to 35% under the Basel II
Standardised Approach for credit risk
- - - - -
23 Securities that are not in default and
do not qualify as HQLA, including
exchange-traded equities
- - - - -
24 Other assets: (sum of rows 25 to 29) 19,175,037 - - - 17,708,281
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
26
26
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
Unweighted value by residual maturity Weighted
value
No maturity < 6 months 6 months to
< 1yr
≥ 1yr
25 Physical traded commodities,
including gold
- - - - -
26 Assets posted as initial margin for
derivative contracts and contributions
to default funds of CCPs
- - - - -
27 NSFR derivative assets - - - - -
28 NSFR derivative liabilities before
deduction of variation margin posted
- - - - -
29 All other assets not included in the
above categories
19,175,037 - - - 17,708,281
30 Off-balance sheet items 185,964,353 - - - 9,298,218
31 Total RSF 265,499,495 - - - 42,259,225
32 Net Stable Funding Ratio (%) 125.66%
Following table sets out the details of NSFR of the bank as on 31
st
March, 2022
Unweighted value by residual maturity Weighted
value
No maturity < 6 months 6 months to
< 1yr
≥ 1yr
ASF ITEM
1 Capital (2+3) 17,478,467 - - 24,820,967 42,299,434
2 Regulatory capital 17,478,467 - - 9,168,780 26,647,247
3 Other capital instruments - - - 15,652,187 15,652,187
4
Retail deposits and deposits from small
business customers: (5+6) - - - - -
5 Stable deposits - - - - -
6 Less stable deposits - - - - -
7 Wholesale funding: (8+9) - 12,011,818 11,246,699 1,646 11,630,081
8 Operational deposits - - - - -
9 Other wholesale funding - 12,011,818 11,246,699 1,646 11,630,081
10 Other liabilities: (11+12) 16,928,645 281,435 155,282 223,551 -
11 NSFR derivative liabilities
- - -
12
All other liabilities and equity not
included in the above categories 16,928,645 281,435 155,282 223,551 -
13 Total ASF (1+4+7+10)
53,929,514
RSF ITEM
14
Total NSFR high-quality liquid assets
(HQLA) 1,523,788
15
Deposits held at other nancial
institutions for operational purposes - - - - -
16
Performing loans and securities:
(17+18+19+21+23) 29,362,468 - - - 14,671,026
17
Performing loans to nancial
institutions secured by Level 1 HQLA - - - - -
18
Performing loans to nancial
institutions secured by non-Level 1
HQLA and unsecured performing loans
to nancial institutions 29,164 - - - 4,375
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
27
27
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
Unweighted value by residual maturity Weighted
value
No maturity < 6 months 6 months to
< 1yr
≥ 1yr
19
Performing loans to non-nancial
corporate clients, loans to retail and
small business customers, and loans to
sovereigns, central banks, and PSEs,
of which: 29,333,303 - - - 14,666,652
20
With a risk weight of less than or equal
to 35% under the Basel II Standardised
Approach for credit risk - - - - -
21
Performing residential mortgages, of
which: - - - - -
22
With a risk weight of less than or equal
to 35% under the Basel II Standardised
Approach for credit risk - - - - -
23
Securities that are not in default and
do not qualify as HQLA, including
exchange-traded equities - - - - -
24 Other assets: (sum of rows 25 to 29) 20,934,675 - - - 19,464,325
25
Physical traded commodities, including
gold - - - - -
26
Assets posted as initial margin for
derivative contracts and contributions to
default funds of CCPs - - - - -
27 NSFR derivative assets - - - - -
28
NSFR derivative liabilities before
deduction of variation margin posted - - - - -
29
All other assets not included in the
above categories 20,934,675 - - - 19,464,325
30 Off-balance sheet items 184,546,647 - - - 9,227,332
31 Total RSF 267,695,156 - - - 44,886,472
32 Net Stable Funding Ratio (%) 120.15%
v) Disclosure on Frauds
(Amount Rs. in ‘000)
Particulars 2021-22 2020-21
Number of frauds reported (in numbers) 2,257 1,881
Amount Involved in fraud 74,786 120,417
Amount Written-Off 74,786 104,203
Amount Recovered 16,489 16,214
Amount of Unamortized provision debited from ‘other reserves’ as at the end of the year - -
w) Unhedged Foreign Currency Exposure:
Provision towards unhedged foreign currency exposures as on 31 March 2022 is Rs. 54,424 (‘000) [2020-21: Rs. 40,464
(‘000)] and the capital held by the Bank towards this risk is Rs. 191,028 (‘000) [2020-21: Rs 106,210 (‘000)] as per RBI
master circular DBR.No.BP.BC.2/21.04.048/2015-16 dated 01 July 2015 on prudential norms on income recognition, asset
classication and provisioning pertaining to advances.
x) Divergence in the asset classication and provisioning
RBI vide its circular RBI/2016-17/283 DBR.BP.BC.No.63/21.04.018/2016-17 dated April 18, 2017 and subsequently vide
its circular RBI/2019-20/157 DBR.BP.BC.No.32/21.04.018/2019-20 dated April 01, 2019, has directed that banks shall make
suitable disclosures, wherever either (a) the additional provisioning for NPAs assessed by RBI exceeds 10 percent of the
reported prot before provisions and contingencies for the reference period or (b) the additional Gross NPAs identied by RBI
exceed 15 percent of the published incremental Gross NPAs for the reference period, or both.
For nancial year 2020-21, RBI has not assessed any additional provisioning requirement or Gross NPAs for the Bank.
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
28
28
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
y) The Bank has no disclosure to make in respect of the following items as the relevant items are Nil
(i)
Investments :
Repo Transactions (in face value terms)
Non-SLR Investment Portfolio
Non performing Non-SLR Investments
Sale and transfers to/from HTM category
(ii)
Asset Quality :
Details of nancial assets sold to Securitisation/Reconstruction Company
for Asset Reconstruction
Details of non-performing nancial assets purchased/sold
Unsecured Advances: Assets for which intangible securities have been
taken as collateral
Investment in Securities Receipts
(iii) Disclosure relating to securitisation
(iv) Draw down from Reserves
(v) Penalties imposed by Reserve Bank of India
(vi) Discontinuing Operations
(vii) Unamortised Pension and Gratuity Liabilities
(viii) Factoring expenses
(ix)
Details of fees/remuneration received in respect of marketing and distribution function (excluding
bancassurance business)
(x) The amount of PSLCs (category-wise) sold and purchased during the year shall be disclosed
(xi) Disclosure of transfer of loan exposures
(xii) Resolution of Stressed Assets – Extension of Resolution Timelines
z) The Bank has no disclosure to make in respect of the following items as the relevant items are Not Applicable
(i)
Investments :
Investments in Associates
(ii)
Derivatives :
Forward Rate Agreements/Interest Rate Swaps
Exchange Traded Interest Rate Derivatives
Disclosure on risk exposure in derivatives
Credit Default Swaps
(iii) Letter of Comforts issued by the Bank
(iv) Earnings per share
(v) Consolidated Financial Statements
(vi) Overseas Assets, NPAs and Revenue
(vii) Off-Balance Sheet SPVs sponsored
2. Commission, exchange and brokerage (net)
Commission, exchange and brokerage is netted off with the amount shared with afliates on overseas Card Member spend on the
Bank’s merchant and volume rebates amounting to Rs. 1,229,416 (‘000) [2020-21: Rs. 823,175 (‘000)].
3. Deferred Taxes
In accordance with AS-22 on ‘Accounting for Taxes on Income’ issued by Institute of Chartered Accountants of India (ICAI), the
Bank recognizes Deferred Tax Assets on timing differences to the extent that there is a virtual certainty supported by convincing
evidence that sufcient future taxable income will be available against which such deferred tax assets can be realized. As of March
31, 2022, in view of lack of virtual certainty supported by convincing evidence that sufcient taxable income would accrue in the
immediate future, as a matter of prudence, the Bank has decided not to recognise Net Deferred Tax Assets as on March 31, 2022.
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
29
29
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
The major composition of Deferred Tax Assets (DTA) and Deferred Tax Liabilities (DTL) is as under:
(Amount in Rs. ‘000)
Particulars As at
March 31, 2022
As at
March 31, 2021
Deferred tax assets/(liabilities)
Provision for Bad & Doubtful Debts 1,198,549 1,585,546
Provision for Employee Benets 296,478 276,064
Accumulated Taxable Losses 976,193 227,322
Depreciation on xed assets (236,063) 70,368
Deferred Rent & Other reserves 7,464 13,683
4. Segment Reporting
The summary of the segmental information of the Bank for the Year ended 31
st
March, 2022 are given below-
(Amount in Rs. ‘000)
Segmentation Banking operations Treasury Total
Particulars 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
Segment Revenue (a) 13,448,157 11,926,691 1,213,626 1,317,342 14,661,783 13,244,033
Segment Expense (b) 13,824,473 15,394,812 886,696 816,170 14,711,169 16,210,982
Unallocated Expenses (c)
- -
Segment result (d) = (a) –(b) – (c) (376,316) (3,468,121) 326,930 501,172 (49,386) (2,966,949)
Inter-Segment Adjustment (e) * 326,930 501,172 (326,930) (501,172)
- -
Segment result after inter-segment
Adjustment (d) + (e)
(49,386) (2,966,949) - - (49,386) (2,966,949)
Operating Prots/(Loss)
(49,386) (2,966,949)
Income taxes
- -
Extraordinary prot/(loss) - -
Net prot (loss)
(49,386) (2,966,949)
Other information:
Segment assets 46,768,659 35,391,950 33,354,468 34,500,916 80,123,127 69,892,866
Unallocated assets (Taxes and
accumulated losses)
6,652,847 6,146,302
Total assets 46,768,659 35,391,950 33,354,468 34,500,916 86,775,974 76,039,168
Segment liabilities 30,780,676 18,897,422 33,354,468 34,500,916 64,135,144 53,398,338
Unallocated liabilities (Taxes, Capital and
Reserve and Surplus )
22,640,830 22,640,830
Total liability 30,780,676 18,897,422 33,354,468 34,500,916 86,775,974 76,039,168
Cost to acquire xed assets 5,896,209 128,127 - - 5,896,209 128,127
Depreciation
559,370 112,497
- -
559,370 112,497
The Bank does not have any overseas operations and hence there is no geographical segment reporting.
* Treasury activities are limited to managing liquidity and funding requirements for business operations of the bank as a support
function and doesn’t undertake any independent business activity such as trading investments, derivatives, etc.
5. Related Party Disclosures
In the terms of the Accounting Standard 18 on ‘Related Party Disclosures’ issued by Institute of Chartered Accountants of India
as specied under Section 133 of Companies Act, 2013 read with Companies (Accounting Standards) Rules, 2021 and the related
guideline issued by the RBI, the details pertaining to related parties are as under:
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
30
30
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
Related Party Relationship:
Sr. No. Relationship Party Name
1. Parent - Head Ofce American Express Banking Corp., New York.
2. Ultimate Holding Company American Express Company
3. Subsidiaries of Ultimate Holding Company American Express (Malaysia) Sdn. Bhd.
American Express (Thai) Co., Ltd.
American Express Australia Ltd
American Express Business Solutions (India) Private Limited
American Express Europe Limited
American Express Global Business Travel
American Express India Pvt Ltd.
American Express International, Inc. - Branch – Singapore
American Express International, Inc. - Branch - Hong Kong
American Express International, Inc. – Japan
American Express Limited
American Express Services Europe Limited
American Express Services India Pvt Ltd
American Express Travel Related Services Company, Inc.
Amex Canada Inc.
American Express Company (Mexico)
Loyalty Solutions and Research Pvt Ltd (Till May 31, 2021)
4. Subsidiaries/Associates/Joint Ventures -
5. Key Management Personnel ** Manoj Adlakha as Chief Executive Ofcer (Till May 13, 2022)
Sanjay Khanna as Interim Chief Executive Ofcer
(w.e.f. May 14, 2022)
The related party balances and transactions for the year ended March 31, 2022 are summarized as follows :
(Amount in Rs. ‘000)
Particulars Year Parent - Head Ofce Total
American Express Banking Corp, New York
Borrowings 2021-22 15,281,300
15,281,300
2020-21 15,281,300
15,281,300
Maximum Outstanding
2021-22 15,281,300
2020-21 19,831,300
(Amount in Rs. ‘000)
Particulars Year Subsidiaries of Ultimate Holding Company Total
American
Express
Travel Related
Services
Company, Inc.
American
Express
Services India
Pvt Ltd
American
Express
International,
Inc. - Branch -
Singapore
American
Express India
Pvt Ltd.
American
Express
Global
Business
Travel
American
Express
Limited
Others
Deposits
2021-22 - 1,015,000 - 25,298,000 - - 1,415,000 27,728,000
2020-21 - 955,000 - 22,845,000 - - 1,000,000 24,800,000
Maximum Outstanding
2021-22 -
10,20,000 - 31,479,000 -
-
1,695,000
2020-21 -
1,055,000 - 25,285,000 -
-
1,280,000
Advances
2021-22 - 2 - 27,064 4,881 - - 31,947
2020-21 - 740 - 170,009 161 - 338 171,248
Maximum Outstanding
2021-22
3,060 - 733,986 4,881 - 25,030
2020-21
- 20,222 - 559,025 1,162 - 54,905
Receivables
2021-22 597,286 - - - - 4 351 597,641
2020-21 - - - - - 4 - 4
Payables
2021-22 362,676 16,124 154,225 843,714 285,919 - 54,472 1,717,130
2020-21 187,484 25,341 321,814 792,225 23,060 - 54,177 1,404,101
Sale/(Purchase) of assets
2021-22 (12,480) (8,678) - 9,333 - - 92 (11,733)
2020-21 - (14,721) - 43,807 - - 1,187 30,273
Interest Expense 2021-22 - 30,309 - 968,775 - - 33,208 1,032,292
2020-21 - 29,977 - 931,336 - - 33,505 994,818
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
31
31
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
Particulars Year Subsidiaries of Ultimate Holding Company Total
American
Express
Travel Related
Services
Company, Inc.
American
Express
Services India
Pvt Ltd
American
Express
International,
Inc. - Branch -
Singapore
American
Express India
Pvt Ltd.
American
Express
Global
Business
Travel
American
Express
Limited
Others
Payments by Related
Party on Bank's Behalf or
Payment/Receipt by Bank
on behalf of Related Party
2021-22 - 730,440 - 473,558 - - 33,820 1,237,818
2020-21 - 324,370 - 320,133 - - 3,782 648,285
Revenue from Services
Rendered
Commission, exchange and
brokerage (gross)
2021-22 1,461,604 3 - 1,818 4 - - 1,463,429
2020-21 854,817 39 - 2,077 - - (2) 856,931
Less: Volume Rebate and
Issuer Rate Payable
2021-22 (867,571) - (99) - - 5408 (862,262)
2020-21 (476,246) - 279 - - 5,487 (470,480)
Miscellaneous Income 2021-22 - - - - - - -
2020-21 1,368 - - - - 1,368
Revenue from Services
Rendered Total
2021-22 594,033 3 (99) 1,818 4 - 5,408 601,167
2020-21 379,939 39 279 2,077 - - 5,485 387,819
Cost of Services Received
Business Support Cost 2021-22 1,729,051 32,968 2,808 2,060,008 - - 194,221 4,019,056
2020-21 1,583,500 1,040,570 21,431 1,974,150 - - 499,339 5,118,990
Other expenditure 2021-22 - - - - 326 - - 326
2020-21 - - - - 71 - - 71
Rent, taxes and lighting 2021-22 - 71,300 - 66,779 - - - 138,079
2020-21 - 27,178 - 110,734 - - 137,912
Advertisement and Publicity 2021-22 - - - - - - 1,130 1,130
2020-21 - - - - - - 9,193 9.193
Re-imbursements of cost to/
from Related Party
2021-22 (226,788) - - (1,625) - - - (228,413)
2020-21 (318,809) - - (5,045) - - - (323,854)
Cost of Services
Received Total
2021-22 1,502,263 104,268 2,808 2,125,162 326 - 195,351 3,930,178
2020-21 1,264,692 1,067,749 21,431 2,079,839 71 - 508,530 4,942,312
Market Support Payment 2021-22 (1,925,458) - - - - - (1,925,458)
2020-21 - - - - - - -
**No disclosure has been made in respect of Key Management Personnel, keeping in view the secrecy clauses and the provisions of
the RBI guidelines.
# Payables include amount with respect to settlements with overseas group entities on account of spends made by overseas/Indian
card members in India/outside India. However, volume of such transactions is not considered for disclosure.
6. Other Liabilities include: (Amount in Rs. ‘000)
Particulars 2021-22 2020-21
Provisions towards Standard Assets# 491,777 781,882
Counter Cyclical Provisioning Buffer 88,500 88,500
#Includes Unhedged Foreign Currency Provision of Rs. 54,424 (‘000) [2020-21: Rs. 40,464 (‘000)]
7. Floating Provisions: The Bank has not created any oating provisions.
8. Leases
The Bank’s signicant leasing arrangements are in respect of operating leases for commercial premises and hardware. Lease
expenditure for operating leases is recognized on a straight-line basis over the primary period of lease.
(Amount in Rs. ‘000)
Particulars 2021-22 2020-21
Future minimum lease payments under non-cancellable Operating leases
– Not later than 1 year
– Later than 1 year and not later than 5 years
– Later than 5 years
1,106,682
2,363,596
-
220,772
273,733
-
Lease payments recognized in the Prot and Loss Account in respect of operating
leases
763,706 215,225
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
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9. Provision, Contingent Liabilities and Contingent Assets
Movement in provision for membership reward points:
(Amount in Rs. ‘000)
Particulars 2021-22 2020-21
Opening 3,355,646 3,463,724
Additions 2,442,561 2,264,988
Utilisations/Write backs 2,564,282 2,373,066
Closing Balance 3,233,925 3,355,646
The bank estimates provision for card reward points by applying historic redemption rates on points eligible for redemption by a
card member.
10. Taxes
The income tax expenses comprise the following:
(Amount in Rs. ‘000)
Particulars 2021-22 2020-21
Current Income Tax - -
Deferred Income tax (benet)/expense - -
Total - -
11. Description of contingent liabilities
Contingent Liabilities Brief Description
Other items for which the bank
is contingently liable*
The Bank is a party to various legal proceedings and direct/indirect tax assessments in
the normal course of business. The Bank does not expect the outcome of any of legal
proceedings to have a material adverse effect on the Bank’s nancial condition, result of
operations and cash ows. Direct/indirect tax matters for which appeal is pending having
tax impact of Rs. 3,349,446 ('000) [2020-21: Rs. 1,914,220 (‘000)] has been disputed by
bank and hence disclosed as contingent liability.
The Bank as part of certain service contracts has provided guarantees which amount to
Rs. 22,580 (‘000) [2020-21: Rs. 22,580 (‘000)].
The amount deposited in Depositor Education and Awareness Fund amounting to
Rs. 139,237 (‘000) [2020-21: Rs.88,779 (‘000)].
* Also refer Schedule 12 – Contingent Liabilities
12. Employee Benets
The disclosures required as per the revised AS 15 are as under:
Brief description of the Plans
The Bank has various schemes for long-term benets such as provident fund, pension, and gratuity and leave encashment. The Bank's
dened contribution plans are provident fund and employees' pension scheme (under the provisions of the Employees' Provident
Funds and Miscellaneous Provisions Act, 1952), and the Bank has no further obligation beyond making the contributions. The Bank’s
dened benet plans includes pension for deferred/vested pensioner (left employees), gratuity and leave encashment.
(Amount in Rs. ‘000)
A Charge to the Prot and Loss Account based on contributions:
2021-22 2020-21
Provident fund 89,646 68,607
Superannuation 952 886
Total
90,598 69,493
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
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SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
(Amount in Rs. ‘000)
B Contribution towards Pension for deferred/vested pensioners (left employees):
The above employee benet is covered under Pension Trust and as detailed under Paragraph III 9 (b) of Schedule 18 above.
Pension: The components of net benet expenses recognized in the Prot and Loss Account and Balance Sheet and the
funded status for the pension benet plan are summarised below :
As at March 31, 2022 As at March 31, 2021
I Assumptions
Mortality Rate (in deferment)
Annuitants Mortality
Table 12-15
LIC (1996-98) Ultimate
Mortality Rate (Post retirement) Annuitants Mortality
Table 12-15
LIC (1996-98) Ultimate
Discount Rate 6.80% 6.40%
Rate of increase in compensation Not Applicable Not Applicable
Rate of return(expected) on plan assets 7.50% 7.50%
As at March 31, 2022 As at March 31, 2021
II Changes in present value of obligations
Dened Benet Obligation at beginning of the Year 39,410 39,397
Interest Cost 2,388 2,434
Current Service Cost - -
Actuarial Losses/(Gains) (2,159) 1,484
Benet Payments (4,182) (3,905)
Dened Benet Obligation at end of the Year 35,457 39,410
III Changes in fair value of plan assets
Fair Value of Plan Assets at beginning of the Year 51,178 60,632
Expected return on plan assets 3,682 4,410
Actuarial Gain/(Loss) 4,756 (10,207)
Benet Payments (4,182) (3,657)
Fair Value of Plan Assets at end of the Year 55,434 51,178
IV Amounts to be recognised in the Balance Sheet
Dened Benet Obligation at the end of the Year 35,457 39,410
Fair Value of Plan Assets at the end of the Year 55,434 51,178
Amount not recognised as an Asset - -
Surplus Assets 19,977 11,768
V Expense Recognised
- -
The Pension Fund assets are invested in government securities, corporate bonds and other eligible investments.
As at March 31, 2022 As at March 31, 2021
Percentage
Government of India securities (Central and State) 55.71 60.50
High quality corporate Bonds (Including Public Sector Bonds) - -
Equity shares - -
Cash (Including Special Deposits) 25.21 38.37
Others 19.08 1.13
Total 100.00 100.00
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
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(Amount in Rs. ‘000)
Experience Adjustments
As at March
31, 2022
As at March
31, 2021
As at March
31, 2020
As at March
31, 2019
As at March
31, 2018
Dened Benet Obligation at the
end of the period (35,457) (39,410) (39,397) (37,957) (37,026)
Plan Asset as at the end of the
period 55,434 51,178 60,632 62,798 63,027
Funded Status 19,977 11,768 21,235 24,841 26,001
Experience Gain/(Loss)
adjustments on plan liabilities 528 (289) (71) (104) (2,854)
Experience Gain/(Loss)
adjustments on plan assets 4,756 (10,207) (2,295) (2,838) (1,407)
Actuarial Gain/(Loss) due to
change on assumptions 1,631 (1,195) (3,660) (216) 748
(Amount in Rs. ‘000)
C
Contribution towards Gratuity:
The above employee benet is covered under a Gratuity Trust and as detailed under Paragraph III 9 (c) of
Schedule 18 above.
Gratuity : The components of net benet expenses recognized in the Prot and Loss Account and Balance Sheet and the
funded status for gratuity benet plan are summarised below:
As at March 31, 2022 As at March 31, 2021
I
Assumptions
Mortality Indian Assured Lives
Mortality (2006-08)
(modied) Ult.
Indian Assured Lives
Mortality (2006-08)
(modied) Ult.
Discount Rate 6.80% 6.40%
Rate of increase in compensation Band 40 and below:10%
Others: 9%
Band 35 and above:
0% for 1
st
year & then 9%
Others:
6% for 1
st
year & then 9%
Rate of return (expected) on plan assets 2.00% 7.50%
Withdrawal rates Up to age 30 - 15%
age 31-40 - 15%
age 41-50 - 10%
age 51 and above - 5%
Up to age 30 - 27%
age 31-40 - 18%
age 41-50 - 7%
age 51 and above - 8%
II
Changes in present value of obligations
DBO at beginning of the Year 293,010 208,761
Interest Cost 17,745 13,236
Current Service Cost 33,285 22,554
Benets Paid (31,475) (10,263)
Actuarial Losses/(Gains) on obligation 78,423 200
Liabilities extinguished on settlements - -
Liability released due to employee transfer
Plan Amendment Cost
Acquisitions Cost
DBO at end of the Year
-
-
17,812
408,800
-
-
58,522
293,010
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
EPW
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SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
As at March 31, 2022 As at March 31, 2021
III Changes in fair value of plan assets
Fair Value of Plan Assets at the beginning of Year 6,415 9,218
Expected Return of Plan Assets 309 572
Contributions 26,895 7,081
Benets paid (31,475) (10,263)
Assets distributed in settlements - -
Actuarial gain/(loss) on plan assets (260) (193)
Fair Value of Plan Assets at end of the Year 1,884 6,415
IV
Amounts to be recognised in the Balance Sheet
Present Value of DBO at the end of the Year 408,800 293,010
Fair Value of Plan Assets at end of the Year 1,884 6,415
Funded/(Unfunded) Status (406,916) (286,595)
Unrecognised Past Service Costs - -
Net Asset/(Liability) recognised in the Balance
Sheet (406,916) (286,595)
V
Expense Recognised
Current Service Cost 33,285 22,554
Interest Cost 17,745 13,236
Expected Return on Plan Assets (309) (572)
Net Actuarial (Gain)/Loss recognised for the Year 78,683 393
Past Service Cost - -
Expense recognised in the P&L A/c 129,404 35,611
The estimate of future salary increases, considered in actuarial valuation take account of ination, seniority, promotion and other
relevant factors such as supply and demand in employee market.
The Gratuity Fund assets are invested in government securities, corporate bonds and other eligible investments.
Major categories of Plan assets as a percentage of total plan assets.
As at March 31, 2022 As at March 31, 2021
Percentage
Government of India securities (Central and State) - -
High quality corporate Bonds (Including Public Sector Bonds) - -
Equity shares - -
Cash (Including Special Deposits) 100.00 100.00
Others - -
Total 100.00 100.00
(Amount in Rs. ‘000)
Experience Adjustments
As at March
31, 2022
As at March
31, 2021
As at March
31, 2020
As at March
31, 2019
As at March
31, 2018
Dened Benet Obligation at the end
of the period (408,800) (293,010) (208,761) (174,029) (146,177)
Plan Asset as at the end of the period 1,884 6,415 9,218 23,263 37,711
Funded Status (406,916) (286,595) (199,543) (150,766) (108,466)
Experience Gain/(Loss) adjustments
on plan liabilities (59,640) (16,502) (1,719) (7,998) (844)
Experience Gain/(Loss) adjustments
on plan assets (260) (193) (618) (1,277) (1,097)
Actuarial Gain/(Loss) due to change
on assumptions (18,783) 16,302 (12,660) (2,474) 18,429
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
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D Leave Encashment/Compensated Absences
The amount charged/(released) to Prot and Loss Account during the year towards Leave Encashment and
compensated absences Rs. 86,830 (‘000) (Previous year Rs. 44,691 (‘000))
The liability for leave encashment and compensated absences as on March 31, 2022 is Rs. 290,283 (‘000)
(Previous Year Rs. 225,986 (‘000)).
13. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:
To the extent of the information received by the Bank from its vendors, the below are the transactions with suppliers as dened under
the Micro, Small and Medium Enterprises Development Act, 2006 during the nancial year.
(Amount in Rs. ‘000)
Particulars 2021-22 2020-21
1 Principal amount due remaining unpaid - -
2 Interest amount due thereon and remaining unpaid - -
3 Amount of interest paid in terms of Section 18 of the MSMED Act, 2006 772 811
4 Interest due and payable (under the MSMED Act, 2006) which have not
been paid (covering all payments)
1,465 772
5 The amount of interest accrued and remaining unpaid at the end of the
accounting year (i.e. including amount brought forward from previous year)
1,465 772
6 Details on payments made in respect of outstanding as at Sl. No. 1 above. - -
14. Details of fees/remuneration received in respect of Bancassurance business:
(Amount in Rs. ‘000)
Particulars 2021-22 2020-21
Others - Income from Insurance Corporate Agency Business
– For selling life insurance products 54,137 37,487
– For selling non-life insurance products 126,844 117,271
15. Disclosures on Remuneration:
Qualitative Disclosures
Being a Branch of a Foreign Bank, the Bank does not have any Remuneration Committee for approval of the Managerial Remuneration.
The Bank’s compensation structure is in conformity with the principles and practices set out by the Financial Stability Board (FSB).
Further, the Bank’s has obtained the RBI’s approval for the Chief Executive Ofcer’s (CEO) remuneration.
Quantitative Disclosures
The quantitative disclosures cover the Bank’s CEO and Key Risk Takers. The Bank’s Key Risk Takers include the CEO, Head of
Business Units and select roles in Treasury and Risk.
(Amount in Rs. ‘000)
No. Particulars 2021-22 2020-21
1
(i) Number of employees having received a variable remuneration award
during the nancial year.
5 5
(ii) Total amount of outstanding deferred remuneration, split into cash,
shares and share-linked instruments and other forms.
- -
(iii) Total amount of deferred remuneration paid out in the nancial year - -
2
Breakdown of amount of remuneration awards for the nancial year to show
xed and variable, deferred and non-deferred.
Fixed 55,039 66,279
Variable 32,097 33,847
Deferred - -
Non-deferred 32,097 33,847
3
(i) Total amount of outstanding deferred remuneration and retained
remuneration exposed to ex post explicit and/or implicit adjustments. - -
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Economic & Political Weekly
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SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
No. Particulars 2021-22 2020-21
(ii) Total amount of reductions during the nancial year due to ex-post
explicit adjustments. - -
(iii) Total amount of reductions during the nancial year due to ex-post
implicit adjustments. - -
4
Retirals (PF, Gratuity, SA) 3,846 4,439
Variable pay included above is on cash basis i.e. the year in which the same is paid out.
Compensation for CEO is as approved by the RBI and paid by the Bank to the CEO. Compensation for other risk takers is as
approved by the Bank.
Charges for long term incentive awards in form of shares, issued by the ultimate parent company to the key risk takers,
has not been considered for the disclosure purpose as there is no charge to Prot and Loss account of the Bank.
16. Disclosure on Corporate Social Responsibility (CSR)
The Bank believes that serving our communities is not only integral to running a business successfully; it is part of our individual
responsibilities as corporate citizen.
The CSR committee was formed in accordance with the Bank’s CSR policy to comply with the provisions of the Section 135 of the
Companies Act, 2013.
(Amount in Rs. ‘000)
S.no. Particulars 2021-22 2020-21
A. Gross amount required to be spent by
the Bank during the year
B. Amount spent during the year: In Cash Yet to Paid
in Cash
Total In Cash Yet to Paid
in Cash
Total
(i) Construction/acquisition of any asset - - - - - -
(ii) On purposes other than (i) above - - - 15,005 - 15,005
17. Auditors’ Remuneration [excluding goods & service tax]
(Amount in Rs. ‘000)
Particulars 2021-22 2020-21
As Auditors:
– Statutory Audit 3800 3850
– Tax Audit 400 425
– Certicates 1400 1400
– Half yearly review 600 -
– Out of Pocket Expenses 47 28
Total 6,247 5,703
18. Transfer Pricing
The Bank has a comprehensive system of maintenance of information and documents required by transfer pricing legislation under
section 92-92F of the Income Tax Act, 1961. The management is of the opinion that international transactions are at arm’s length so
that the above legislation will not have material impact on the nancial statements, particularly on the amount of tax expense and
that of provision of taxes.
19. Implementation of Indian Accounting Standards (IND AS)
In January 2016, the Ministry of Corporate Affairs issued the roadmap for implementation of new Indian Accounting Standards
(IND AS) for scheduled commercial banks, insurance companies and non-banking nancial companies (NBFCs). The RBI has also
issued a circular DBR.BP.BC.No.76/21.07.001/2015-16 dated February 11th, 2016 advising that the Banks in India are required
to implement IND AS from April 1, 2018. Subsequently, RBI in its press release issued on 5th April 2018 and vide notication
RBI/2018-2019/146 DBR.BP.BC.No.29/21.07.001/2018-19 dated March 22, 2019 has deferred the applicability of IND AS for
Scheduled Commercial Banks.
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INDIA BRANCH
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Based on RBI directions, the Bank has formed a Steering Committee to oversee IND AS implementation. The bank submitted
proforma IND AS nancial statements to the RBI for the half-year ended September 30, 2016 and quarter ended June 30,
2017. Further, the Bank is also submitting proforma IND AS nancials to RBI periodically as per prescribed frequency since
June 2018.
20. Impact of novel Coronavirus (COVID-19) Pandemic
In the aftermath of COVID-19 pandemic, the economy is still on the stage of revival. On account of uncertainties including travel
restrictions arising from the COVID-19 pandemic across the world and in India, the extent to which the same will impact the Bank’s
operations and nancial position will depend on various aspects including actions taken to mitigate its impact and other regulatory
measures. The Bank holds provisions amounting INR 23,000 (‘000) as at March 31, 2022 (Previous Year Rs. 583,036 (‘000)) against
the potential impact of COVID-19 based on the information available at this point in time. The provisions held by the bank are in
excess of the RBI prescribed norms.
21. The Honourable Supreme Court in Writ petition (CIVIL) No 825 of 2020 by Gajendra Sharma Vs Union of India & Anr vide its
interim order dated 03.09.2020 has directed that the accounts which were not declared non-performing assets (NPA) till 31.08.2020
shall not be declared NPA till further orders, pending disposal of the case by the Supreme Court.
The interim order granted to not declare accounts as NPA stood vacated on March 23, 2021 vide the judgement of the Hon'ble SC in
the matter of Small Scale Industrial Manufacturers Association vs. U018 Ors, and other connected matters. In accordance with the
instructions in paragraph 5 of the RBI circular no. RB1/2021-22/17DOR. STR.REC,4/21.04.048/2021.22 dated April 07, 2021 issued
in this connection, the Bank has continued with the asset classication of borrower accounts as per the extant RBI instructions/IRAC
norms as applicable for the year ended 31 March 2021.
22. In accordance with the RBI notication dated April 7, 2021, the Bank is required to refund/adjust 'interest on interest' to borrowers.
As required by the RBI notication, the methodology for calculation of such interest on interest has been circulated by the Indian
Banks' Association. As at March 31, 2021, the Bank has made suitable adjustments to its nancial statements to give effect to the
aforesaid. Subsequently, Bank has refunded interest on interest to borrowers during FY 2021-22.
23. Resolution Framework for COVID-19-related Stress
In reference to RBI circular RBI/2020-21/16 DOR.No.BP.BC/3/21.04.048/2020-21 dated August 06, 2020 on ‘Resolution Framework
for COVID-19-related Stress’, below are the details of accounts where resolution plan was implemented:
(Amount in Rs. ‘000)
(A) (B) (C) (D) (E)
Type of borrower Exposure to accounts
classied as Standard
consequent to
implementation of
resolution plan–
Position as at the end of
the previous half-year
Of (A),
aggregate
debt that
slipped into
NPA during
the half-year
Of (A)
amount
written off
during the
half-year
Of (A)
amount
paid by the
borrowers
during the
half- year
Exposure to accounts
classied as Standard
consequent to
implementation of
resolution plan –
Position as at the end of
this half-year
Personal Loans 182,922 23,454 1,345 35,827 122,296
Corporate persons* - - - - -
Of which, MSMEs - - - - -
Others - - - - -
Total 182,922 23,454 1,345 35,827 122,296
*As dened in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
In reference to RBI circular RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22 dated May 05, 2021 on ‘Resolution Framework
– 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses’, below are the details of accounts where resolution
plan was implemented:
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
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SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
(Amount in Rs. ‘000)
(A) (B) (C) (D) (E)
Type of borrower Exposure to accounts
classied as Standard
consequent to
implementation of
resolution plan–
Position as at the end of
the previous half-year
Of (A),
aggregate
debt that
slipped into
NPA during
the half-year
Of (A)
amount
written off
during the
half-year
Of (A)
amount
paid by the
borrowers
during the
half- year
Exposure to accounts
classied as Standard
consequent to
implementation of
resolution plan –
Position as at the end of
this half-year
Personal Loans 99,511 14,229 5,141 13,279 66,861
Corporate persons* - - - - -
Of which, MSMEs - - - - -
Others - - - - -
Total 99,511 14,229 5,141 13,279 66,861
*As dened in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
S.No. Description Individual Borrowers Small Businesses
Personal Loans Business Loans
(A) Number of requests received for
invoking resolution process under Part
A (Nos)
715 - -
(B) Number of accounts where resolution
plan has been implemented under this
window (Nos)
715 - -
(C) Exposure to accounts mentioned at
(B) before implementation of the plan
(Amount in ‘000’)
102,050 - -
(D) Of (C), aggregate amount of debt that
was converted into other securities
- - -
(E) Additional funding sanctioned, if any,
including between invocation of the
plan and implementation
- - -
(F) Increase in provisions on account of the
implementation of the resolution plan
(Amount in ‘000’)
10,205 - -
24. Micro, Small and Medium Enterprises (MSME) Sector – Restructuring of Advances
In reference to RBI circular RBI/2020-21/17 DOR.No.BP.BC/4/21.04.048/2020-21 dated August 06, 2020 on ‘Micro, Small and
Medium Enterprises (MSME) sector – Restructuring of Advances’ and RBI/2021-22/32 DOR.STR.REC.12/21.04.048/2021-22
dated May 05, 2021 on ‘Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises
(MSMEs)’, below are the details of MSME accounts where resolution plan was implemented:
Number of accounts restructured during the year Amounts of accounts restructured as of March 31, 2022 (‘000)
7 2,470
AMERICAN EXPRESS BANKING CORP.
INDIA BRANCH
(INCORPORATED IN THE UNITED STATES OF AMERICA)
Published on Saturday | june 25 & JULY 2, 2022 vol lVII nos 26 & 27
EPW
Economic & Political Weekly
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25. Other Statutory Information
The Bank has not advanced or loaned or invested funds in any other person or entity including foreign entity (intermediary) with the
understanding that the intermediary shall:
(a) Directly or indirectly lend or invest in other person or entity identied in any manner whatsoever by or on behalf of the
Company (Ultimate Beneciaries) or
(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneciaries.
The Bank has not received any funds from any person or entity, including foreign entity (Funding Party) with the understanding
(whether recorded in writing or otherwise) the Company shall:
(a) Directly or indirectly lend or invest in other person or entity identied in any manner whatsoever by or on behalf of the Funding
Party Company (Ultimate Beneciaries) or
(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneciaries.
26. On April 23rd, 2021, the Reserve Bank of India (RBI) imposed restrictions on the Bank from on-boarding new domestic customers
onto its card network from May 1st, 2021. This direction was passed based on the ndings that AEBC was not fully compliant with
the requirements of Storage of Payment System Data. While the Bank continues to work on the remediation for removal of the
restriction, the order does not impacts existing customers of the Bank. As at March 31, 2022, Bank is progressing on the roadmap to
implement solution for storage of payment data within India.
27. Comparative gures
Previous year gures have been reclassied and regrouped wherever considered necessary to conform to current year’s presentation.
Signature to Schedules 1 to 18
For SCV & Co LLP For and on behalf of
Chartered Accountants American Express Banking Corp.- India Branch
FRN 000235N/N500089
Rajiv Puri Sanjay Khanna
Partner Interim Chief Executive Ofcer
Membership No. 084318
Rupesh Satapathy
Financial Controller
Place: Noida Place: Gurugram
Date: June 23, 2022 Date: June 23, 2022
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2022
Schedule 18 – Signicant Accounting Policies and Notes to Financial Statements (Contd.)
