Financial Report Q3 2023-24

NSFR Disclosure at 31st December 2023

The RBI guidelines stipulated the implementation of NSFR effective from 1st October 2021 at a consolidated level with disclosure from quarter ended December 2021. Accordingly, the bank is computing the Consolidated NSFR. The NSFR is defined as the amount of Available Stable Funding relative to the amount of Required Stable Funding

NSFR= (Available Stable Funding (ASF))/(Required Stable Funding (RSF))

Available Stable Funding (ASF) is measured based on the broad characteristics of relative stability of funding sources, including contractual maturity of its liabilities and the differences in the tendency of different types of funding providers to withdraw their funding. Required Stable Funding (RSF) is a function of the liquidity characteristics and residual maturities of the various assets held by the bank including Off-Balance Sheet (OBS) exposures.

The table attached herewith sets out the un-weighted and weighted value of the NSFR components as on 31st December 2023 based on audited financials.

At a consolidated level, the NSFR of the bank comes out to 121.52 % as on 31st December 2023 against the requirement of 100% as per RBI guidelines.

Significant / Key Drivers:

The significant drivers of Available Stable Funding (ASF) are Retail & small business customer deposits & wholesale funding. The Retail deposits & small business customer deposits constitute 66% & wholesale deposits constitute 22% of Available Stable Funding after applying associated weights.

The Total Required Stable Funding is mainly driven by performing loans and securities which include financing various stake holders such as retail and small Business customers, non-financial corporate clients, performing residential mortgages and Investment in securities that do not qualify as HQLA. These together constitute for 68% of total RSF after applying the associated weights.

Intra Period Changes:

There was no significant change in NSFR at consolidated level as on December 2023 position at 121.52% as against September 2023 position of 123.73%. During the period, weighted ASF decreased by approximately Rs. 2,600 Crs & weighted RSF increased by approximately Rs. 14,000 Crs.