Notes to the Consolidated Financial Statements - Seylan Bank

North Bound > Seylan Bank Annual Report 2011
309
21.4 Movement in Interest in Suspense
BANK
GROUP
2011 2010 2011 2010
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Balance Brought Forward 4,839,232 5,658,891 4,839,232 5,658,891
Interest Suspended During the Year 2,340,734 2,135,062 2,340,734 2,135,062
Interest Recovered During the Year (1,283,856) (1,266,686) (1,283,856) (1,266,686)
Reversal of Interest for Write Off/Write Down (1,172,927) (1,681,923) (1,172,927) (1,681,923)
Exchange Rate Variance on
Foreign Currency Provisions 6,487 (6,112) 6,487 (6,112)
4,729,670 4,839,232 4,729,670 4,839,232
21.5 Basis for Provisioning
As given in Note 21.2 General provision is made as per the Central Bank of Sri Lanka Guidelines
on performing loans and advances except for credit facilities secured by Cash Deposits, Gold and
Government Securities. The cumulative general provision of Seylan Bank as at 31.12.2011 is Rs. 382.24 Mn.
(2010 - Rs. 570.65 Mn.) and meets the regulatory requirement. The general provision is 0.34% (2010 - 0.58%)
of loans and advances net of interest in suspense as at the Balance Sheet date.
21.5.1 Non-Performing Lending Portfolio
Loans, advances and leases are classified as non-performing as given in Note 21.6.1. The criteria used for
the classification of lending portfolio of the Bank as non-performing is set out below. This is in accordance
with the Direction issued by the Central Bank of Sri Lanka on 8th May 2008, on ‘Classification of Loans and
Advances, Income Recognition and Provisioning’.
Categorisation of Non-Performing Lending Portfolio
Type of Facility Determinant Overdue/Special
Mention
Substandard Doubtful Loss
Overdrafts
Credit facilities
repayable
in monthly
instalments
Other credit
facilities
Credit Cards
Exceeds the
sanctioned limit
for a continuous
period of
Principal and/
or interest due
and unpaid
Payments are in
arrears from the
due date
Minimum payments
are in arrears from
the due date
90 days or more
but less than
180 days
180 days or more
but less than
360 days
360 days or more
but less than
540 days
540 days or more
3 instalments or 6 instalments or 12 instalments or 18 instalments or
more but less than more but less than more but less than more
6 instalments 12 instalments 18 instalments
90 days or more
but less than
180 days
90 days or more
but less than
120 days
180 days or more
but less than 360
days
120 days or more
but less than
180 days
360 days or more
but less than
540 days
180 days or more
but less than
240 days
540 days or more
240 days or more