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Estimated fair value of financial instruments | 12 Months Ended
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Mar. 31, 2025
Estimated fair value of financial instruments | 2 7 . 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, 2024 and March 31, 2025, respectively. The estimated fair value amounts as of March 31, 2024 and March 31, 2025 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 value of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year end. Financial instruments valued at carrying value The respective carrying values of certain on-balance-sheet financial instruments approximated their fair value. These financial instruments include cash and amounts due from banks, non-interest-bearing deposits in banks, securities purchased and sold under resale and repurchase agreements, accrued interest receivable, accrued interest payable, and certain other assets and liabilities that are considered financial instruments. Carrying values were assumed to approximate fair values for these financial instruments as they are short-term in nature and their recorded amounts approximate fair values or are receivable or payable on demand. Trading securities Trading securities are carried at fair value based on quoted market prices or market observable inputs or significant unobservable inputs. Available for sale securities AFS debt securities are carried at fair value. Such fair values were based on quoted market prices, where available. If quoted market prices did not exist, fair values were estimated using the market yield on the balance period to maturity on similar instruments and similar credit risks. The fair value of asset-backed and mortgage-backed securities is estimated based on revised estimated cash flows at each balance sheet date, discounted at current market pricing for transactions with similar risk. A reduction in the estimated cash flows of these instruments will adversely impact the value of these securities. A change in the timing of these estimated cash flows will also impact the value of these securities. Loans The fair values of consumer instalment loans and other consumer loans that do not reprice or mature frequently are estimated using discounted cash flow models. The discount rates are based on internal models. The fair value of loans would decrease (increase) in value based upon an increase (decrease) in discount rate. Since substantially all individual lines of credit and other variable rate consumer loans reprice frequently, with interest rates reflecting current market pricing, the carrying values of these loans approximate their fair values. The fair values of commercial loans that do not reprice or mature within relatively short time frames are estimated using discounted cash flow models. The discount rates are based on internal models. The fair value of loans would decrease (increase) in value based upon an increase (decrease) in discount rate. For commercial loans that reprice within relatively short time frames, the carrying values approximate their fair values. For purposes of these fair value estimates, the fair values of impaired loans were computed by deducting an estimated market discount from their carrying values to reflect the uncertainty of future cash flows. The fair values of loans that do not reprice or mature within relatively short time frames are estimated using discounted cash flow models and are classified as Level 3 as the input used for the valuation is internal credit spreads which is based on internal models and is considered unobservable. Loans that reprice within relatively short time frames, the carrying values approximate their fair values, accordingly it is classified as Level 2. Deposits The fair value of demand deposits, savings deposits, and money market deposits without defined maturities are the amounts payable on demand. For deposits with defined maturities, the fair values were estimated using discounted cash flow models that apply market interest rates corresponding to similar deposits and timing of maturities. The fair value of demand deposits, savings deposits, and money market deposits without defined maturities are the amounts payable on demand, carrying value reflects the fair value of the instruments and hence classified as level 2. Deposits with defined maturities, the fair values have been estimated using discounted cash flow models that apply market interest rates corresponding to similar deposits and timing of maturities currently offered for such deposits as the valuation input is considered observable. These are classified as level 2. Short-term borrowings The fair values of the Bank’s short-term debt were calculated based on a discounted cash flow model. The discount rates were based on yield curves appropriate for the remaining maturities of the instruments. Input used for fair valuation of the financial instrument is considered observable and hence the instruments are classified as level 2. Long-term debt The fair values of the Bank’s unquoted long-term debt instruments were calculated based on a discounted cash flow model. The discount rates were based on yield curves appropriate for the remaining maturities of the instruments. Input used for fair valuation of the financial instrument is considered observable and hence the instruments are classified as level 2. Term placements The fair values of term placements were estimated using discounted cash flow models. The discount rates were based on current market pricing for placements with similar characteristics and risk factors and hence the instruments are classified as level 2. Derivatives See note 26 Accrued interest receivable /payable. Considering short term nature of accrued interest receivable, carrying value is considered to approximate the fair value accordingly they are classified as level 2. Other Assets / Accrued expenses and other liabilities. Securities carried at fair value based on quoted market prices are classified as Level 1; other items in the nature of financial instruments are classified as level 2 as carrying value is reasonable estimate of fair value or the valuation input used is observable. Securities purchased under agreements to resell / Securities sold under repurchase agreements. Resale and repurchase agreements are classified as Level 2 because they are generally short-dated instruments collateralized by Government securities. A comparison of the fair value and carrying value of financial instruments is set out below:
|  | As of March 31, 2024 |
|  |  |  |  | Estimated fair value |
|  | Carrying value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
|  | (In millions) |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks, and restricted cash |  |  | 2,086,031.4 |  |  |  | 2,086,031.4 |  |  | Rs. | — |  |  | Rs. | — |  |  |  | 2,086,031.4 |
Investments held for trading |  |  | 461,245.3 |  |  |  | 290,951.1 |  |  |  | 148,296.2 |  |  |  | 21,998.0 |  |  |  | 461,245.3 |
Investments available for sale debt securities |  |  | 8,295,487.1 |  |  |  | 548,944.7 |  |  |  | 7,608,007.7 |  |  |  | 138,534.7 |  |  |  | 8,295,487.1 |
Securities purchased under agreements to resell |  |  | 34,178.3 |  |  |  | — |  |  |  | 34,178.3 |  |  |  | — |  |  |  | 34,178.3 |
Loans |  |  | 26,335,700.9 |  |  |  | — |  |  |  | 4,988,245.6 |  |  |  | 21,425,726.3 |  |  |  | 26,413,971.9 |
Accrued interest receivable |  |  | 249,644.5 |  |  |  | — |  |  |  | 249,592.0 |  |  |  | 52.5 |  |  |  | 249,644.5 |
Separate account assets |  |  | 955,416.3 |  |  |  | 808,309.4 |  |  |  | 147,106.9 |  |  |  | — |  |  |  | 955,416.3 |
Other assets |  |  | 1,942,177.5 |  |  |  | 24,545.8 |  |  |  | 1,913,303.2 |  |  |  | 1,834.8 |  |  |  | 1,939,683.8 |
Financial Liabilities : |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  |  | 20,688,406.2 |  |  |  | — |  |  |  | 20,775,875.4 |  |  |  | — |  |  |  | 20,775,875.4 |
Non-interest-bearing deposits |  |  | 3,079,829.4 |  |  |  | — |  |  |  | 3,079,829.4 |  |  |  | — |  |  |  | 3,079,829.4 |
Securities sold under repurchase agreements |  |  | 56,541.0 |  |  |  | — |  |  |  | 56,541.0 |  |  |  | — |  |  |  | 56,541.0 |
Short-term borrowings |  |  | 1,313,737.1 |  |  |  | — |  |  |  | 1,314,424.4 |  |  |  | — |  |  |  | 1,314,424.4 |
Accrued interest payable |  |  | 238,638.8 |  |  |  | — |  |  |  | 238,638.8 |  |  |  | — |  |  |  | 238,638.8 |
Long-term debt |  |  | 6,648,772.0 |  |  |  | — |  |  |  | 6,639,457.7 |  |  |  | — |  |  |  | 6,639,457.7 |
Accrued expenses and other liabilities |  |  | 690,851.5 |  |  |  | — |  |  |  | 688,513.7 |  |  |  | 2,337.8 |  |  |  | 690,851.5 |
Separate account liabilities |  |  | 955,416.3 |  |  |  | — |  |  |  | 955,416.3 |  |  |  | — |  |  |  | 955,416.3 |
Liabilities on policies in force ( * ) |  |  | 55,544.1 |  |  |  | — |  |  |  | 55,544.1 |  |  |  | — |  |  |  | 55,544.1 |
|  | As of March 31, 2025 |
|  |  |  |  | Estimated fair value |  |  |  |  |  |  |
|  | 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 |  |  | 1,982,929.8 |  |  |  | 1,982,929.8 |  |  | Rs. | — |  |  | Rs. | — |  |  |  | 1,982,929.8 |  |  | US$ | 23,211.2 |  |  | US$ | 23,211.2 |
Investments held for trading |  |  | 625,388.5 |  |  |  | 340,388.3 |  |  |  | 250,009.3 |  |  |  | 34,990.9 |  |  |  | 625,388.5 |  |  |  | 7,320.5 |  |  |  | 7,320.5 |
Investments available for sale debt securities |  |  | 9,910,174.3 |  |  |  | 1,435,936.3 |  |  |  | 8,360,598.8 |  |  |  | 113,639.2 |  |  |  | 9,910,174.3 |  |  |  | 116,003.4 |  |  |  | 116,003.4 |
Securities purchased under agreements to resell |  |  | 349,210.7 |  |  |  | — |  |  |  | 349,210.7 |  |  |  | — |  |  |  | 349,210.7 |  |  |  | 4,087.7 |  |  |  | 4,087.7 |
Loans |  |  | 28,102,981.8 |  |  |  | — |  |  |  | 5,801,666.4 |  |  |  | 22,327,674.8 |  |  |  | 28,129,341.2 |  |  |  | 328,959.2 |  |  |  | 329,267.7 |
Accrued interest receivable |  |  | 322,788.9 |  |  |  | — |  |  |  | 322,729.4 |  |  |  | 59.5 |  |  |  | 322,788.9 |  |  |  | 3,778.4 |  |  |  | 3,778.4 |
Separate account assets |  |  | 1,016,281.4 |  |  |  | 873,154.4 |  |  |  | 143,127.0 |  |  |  | — |  |  |  | 1,016,281.4 |  |  |  | 11,896.1 |  |  |  | 11,896.1 |
Other assets |  |  | 1,978,448.8 |  |  |  | 20,404.1 |  |  |  | 1,950,178.0 |  |  |  | 2,300.7 |  |  |  | 1,972,882.8 |  |  |  | 23,158.7 |  |  |  | 23,093.6 |
Financial Liabilities : |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  |  | 23,994,357.2 |  |  |  | — |  |  |  | 24,119,101.2 |  |  |  | — |  |  |  | 24,119,101.2 |  |  |  | 280,865.7 |  |  |  | 282,325.9 |
Non-interest-bearing deposits |  |  | 3,116,596.7 |  |  |  | — |  |  |  | 3,116,596.7 |  |  |  | — |  |  |  | 3,116,596.7 |  |  |  | 36,481.3 |  |  |  | 36,481.3 |
Securities sold under repurchase agreements |  |  | 129,190.0 |  |  |  | — |  |  |  | 129,190.0 |  |  |  | — |  |  |  | 129,190.0 |  |  |  | 1,512.2 |  |  |  | 1,512.2 |
Short-term borrowings |  |  | 1,306,013.1 |  |  |  | — |  |  |  | 1,305,341.6 |  |  |  | — |  |  |  | 1,305,341.6 |  |  |  | 15,287.5 |  |  |  | 15,279.7 |
Accrued interest payable |  |  | 258,311.8 |  |  |  | — |  |  |  | 258,311.8 |  |  |  | — |  |  |  | 258,311.8 |  |  |  | 3,023.7 |  |  |  | 3,023.7 |
Long-term debt |  |  | 5,866,163.2 |  |  |  | — |  |  |  | 5,936,593.3 |  |  |  | — |  |  |  | 5,936,593.3 |  |  |  | 68,666.3 |  |  |  | 69,490.7 |
Accrued expenses and other liabilities |  |  | 850,899.0 |  |  |  | — |  |  |  | 849,510.6 |  |  |  | 1,388.5 |  |  |  | 850,899.1 |  |  |  | 9,960.2 |  |  |  | 9,960.2 |
Separate account liabilities |  |  | 1,016,281.4 |  |  |  | — |  |  |  | 1,016,281.4 |  |  |  | — |  |  |  | 1,016,281.4 |  |  |  | 11,896.1 |  |  |  | 11,896.1 |
Liabilities on policies in force ( * ) |  |  | 47,316.6 |  |  |  | — |  |  |  | 47,316.6 |  |  |  | — |  |  |  | 47,316.6 |  |  |  | 553.9 |  |  |  | 553.9 |
(*) | The liabilities on policies in force includes only the fair value of contracts that are classified as insurance contract

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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