Credit substitutes

12 Months Ended

Mar. 31, 2022

7. Credit substitutes

Credit substitutes consist of securities that the Bank invests in as part of an overall extension of credit to certain customers. Such securities share many of the risk and reward characteristics of loans and are managed by the Bank together with other credit facilities extended to the same customers. The fair value of credit substitutes by type of instrument as of March 31, 2021 and March 31, 2022 were as follows:


	As of March 31,
	2021				2022
	Amortized Cost		Fair Value		Amortized Cost		Fair Value

	(In millions)
Available for sale credit substitute debt securities:
Debentures	Rs.	524,448.4	Rs.	537,472.8	Rs.	577,377.0	Rs.	581,551.5
Preference shares		—		—		77.1		0.5
Commercial paper		9,778.7		9,804.1		1,468.2		1,468.2

Total	Rs.	534,227.1	Rs.	547,276.9	Rs.	578,922.3	Rs.	583,020.2

					US$	7,630.5	US$	7,684.5

The fair value of credit substitutes by the Bank’s internal credit quality indicators and amounts provided for non-performing credit substitutes is as follows:


	As of March 31,
	2021		2022		2022

	(In millions)
Pass	Rs.	547,276.9	Rs.	583,020.2	US$	7,684.5
Non-performing —gross balance		—		—		—
Less: Non-performing losses		—		—		—

Non-performing credit substitutes, net		—		—		—

Total credit substitutes, net	Rs.	547,276.9	Rs.	583,020.2	US$	7,684.5

The following table provides information on non-performing credit substitutes as at March 31, 2021 and March 31, 2022:


	As of March 31,
	2021		2022		2022

	(In millions)
Gross non-performing credit substitutes	Rs	—	Rs	—	US$	—
Gross non-performing credit substitutes by industry	Rs.	—	Rs.	—	US$	—
Average non-performing credit substitutes	Rs.	—	Rs.	—	US$	—
Interest income recognized on non-performing credit substitutes	Rs.	—	Rs.	—	US$	—

As of March 31, 2022, the Bank has no additional funds committed to borrowers whose credit substitutes were non-performing.