Estimated fair value of financial instruments

12 Months Ended

Mar. 31, 2020

Estimated fair value of financial instruments

25. Estimated fair value of financial instruments

The Bank’s financial instruments include financial assets and liabilities recorded on the balance sheet, including instruments such as foreign exchange and derivative contracts. Management uses its best judgment in estimating the fair value of the Bank’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of all the amounts the Bank could have realized in a sales transaction as of March 31, 2019 and March 31, 2020. The estimated fair value amounts as of March 31, 2019 and March 31, 2020 have been measured as of the respective year ends, and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year end.

A comparison of the fair values and carrying values of financial instruments is set out below:


	As of
	March 31, 2019										March 31, 2020
			Estimated Fair Value										Estimated Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total		Carrying Value		Level 1		Level 2		Level 3		Total		Carrying Value		Estimated Fair Value
	(In millions)
Financial Assets:
Cash and due from banks, and restricted cash	Rs.	734,872.6	Rs.	734,872.6	Rs.	—	Rs.	—	Rs.	734,872.6	Rs.	611,961.0	Rs.	611,961.0	Rs.	—	Rs.	—	Rs.	611,961.0	US$	8,117.3	US$	8,117.3
Investments held for trading		265,516.1		1,999.6		263,516.5		—		265,516.1		304,962.9		6,291.0		298,671.9		—		304,962.9		4,045.1		4,045.1
Investments available for sale debt securities		2,633,348.4		34,807.2		2,559,728.3		38,812.9		2,633,348.4		3,406,289.2		371,450.5		2,907,384.4		127,454.3		3,406,289.2		45,182.2		45,182.2
Securities purchased under agreements to resell		76,213.5		—		76,213.5		—		76,213.5		250,000.0		—		250,000.0		—		250,000.0		3,316.1		3,316.1
Loans		8,963,232.6		—		2,593,533.9		6,378,523.8		8,972,057.7		10,425,022.4		—		2,593,022.1		7,936,633.4		10,529,655.5		138,281.2		139,669.1
Accrued interest receivable		93,031.7		—		93,031.7		—		93,031.7		103,035.9		—		103,035.9		—		103,035.9		1,366.7		1,366.7
Other assets		344,873.6		2,390.1		340,767.5		—		343,157.6		641,605.5		2,282.4		637,594.1		—		639,876.5		8,510.5		8,487.6
Financial Liabilities :
Interest-bearing deposits		7,804,717.5		—		7,826,794.0		—		7,826,794.0		9,730,481.3		—		9,786,793.2		—		9,786,793.2		129,068.6		129,815.5
Non-interest-bearing deposits		1,420,309.4		—		1,420,309.4		—		1,420,309.4		1,731,590.0		—		1,731,590.0		—		1,731,590.0		22,968.4		22,968.4
Securities sold under repurchase agreements		174,000.0		—		174,000.0		—		174,000.0		507,982.0		—		507,982.0		—		507,982.0		6,738.1		6,738.1
Short-term borrowings		654,058.0		—		655,215.2		—		655,215.2		377,417.6		—		378,027.9		—		378,027.9		5,006.2		5,014.3
Accrued interest payable		79,372.5		—		79,372.5		—		79,372.5		80,078.9		—		80,078.9		—		80,078.9		1,062.2		1,062.2
Long-term debt		1,044,553.0		—		1,061,687.0		—		1,061,687.0		1,026,518.3		—		1,074,826.3		—		1,074,826.3		13,616.1		14,256.9
Accrued expenses and other liabilities		366,071.3		—		366,071.3		—		366,071.3		460,931.4		—		460,931.4		—		460,931.4		6,114.0		6,114.0

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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