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