Data Interpretation

Gap Analysis:The Gap or mismatch risk can be measured by calculating Gaps over different time buckets as at
a given date. Gap analysis measures mismatches between rate sensitive liabilities and rate sensitive
assets including off-balance sheet position.
An asset or liability is normally classified as rate sensitive if:
If there is a cash flow within the time interval.

The interest rate resets or reprocess contractually during the interval.

RBI changes the interest rates i.e., on saving deposits, export credit, refinance, CRR balances and
so on, in case where interest rate are administered.

It is contractually pre-payable or withdraw able before the stated maturities

The Gap is the difference between Rate Sensitive Assets (RSA) and Rate sensitive Liabilities
(RSA) for each time bucket.

The positive GAP indicates that RSAs are more than RSLs (RSA>RSL).

The negative GAP indicates that RSAs are more than RSALs (RSA<RSL).

They can implement ALM policies for the better identification of the mismatch, risk and for the
implementation of various remedial measures.

GENERAL:The classification of various components of assets and liabilities into different time buckets for
preparation of Gap reports (Liquidity and interest rate sensitivity) may be done as indicated in
Appendices I & II as a sort of bench mark, which are better equipped to reasonably estimate the
behavioral pattern, embedded options, rolls-in and rolls-out etc of various components of assets and
liabilities on the basis of past date. Empirical studies could classify them in the appropriate time buckets,
subject to approval from the MUTOOT / Board. A copy of the note approved by the ALOC / Board may
be sent to the Department of Supervision.

The present framework does not capture the impact of embedded options, i.e., the
customers exercising their options (premature closure of deposits and prepayment of loans and
advances) on the liquidity and interest rate risks profile. The magnitude of embedded option risk
at times of volatility in market interest rates is quite substantial should, therefore evolve suitable
mechanism, supported by empirical studies and behavioral analysis to estimate the future
behavior of assets; liabilities and off-balance sheet items to changes in market variables and
estimate the embedded options.
A scientifically evolved internal transfer pricing model by assigning values on the basis of current
market rates to funds provided and funds used is an imported component for elective implementation
of ALM systems. The transfer price mechanism can enhance the management of margin i.e., landings or
credit spread the funding or liability spread and mismatch spread. It also helps centralizing interest rate
risk at one place which facilitates effective control and management of interest rate risk. A well defined
transfer pricing system also provides a rational framework for pricing of assets and liabilities.

COMPARATIVE ASSET LIABILITY SHEET AS ON 31ST MARCH 2011-12

As at 31-Mar-12

As at 31-Mar-11

ABSOLUTE
INCREASE/
DECREAES

CHANGE
IN %

4,652,257

4,577,433

74,824

1.634627967

249,111,291

210,618,369

38,492,922

18.27614665

2,085,864,054

1,674,044,394

411,819,660

24.60028309

143,940,610

129,156,925

14,783,685

11.44629682

289,928,565

206,159,441

83,769,124

40.63317382

2,773,525,565

2,224,585,697

548,939,868

24.67604951

Cash and Balances with

Reserve Bank of India

251,008,158

154,832,841

96,175,317

62.11557986

Balances with Banks and

Money at Call and Short
notice
Investments

45,680,191

144,591,147

-98,910,956

-68.40733894

709,293,656

586,076,161

123,217,495

21.02414382

1,599,826,654

1,258,305,939

341,520,715

27.14130995

Fixed Assets

21,706,480

21,228,114

478,366

2.253455017

Other Assets

146,010,773

59,551,495

86,459,278

145.1840596

2,773,525,912

2,224,585,697

548,940,215

24.67606511

5,751,224,839

4,790,515,044

960,709,795

20.05441557

134,284,924

81,248,646

53,036,278

65.27650688

CAPITAL AND
LIABILITIES
Capital
Reserves and Surplus
Employees Stock Options
(Grants) Outstanding
Deposits
Borrowings
Other Liabilities and
Provisions

ASSETS

Advances

Contingent Liabilities
Bills for Collection

7,000,000,000
6,000,000,000
5,000,000,000
4,000,000,000

As at 31-Mar-11

3,000,000,000
2,000,000,000

As at 31-Mar-10

1,000,000,000
0
-1,000,000,000

Interpretation:

The total current liabilities for the year are Rs.206159441 is less than the total assets for the year
are Rs.2224585697. Therefore the assets are more than the liabilities. So there is a positive gap of
Rs.548939688 i.e 24.67%

COMPARATIVE ASSET LIABILITY SHEET AS ON 31ST MARCH 2010-11

As at 31-Mar-11

As at 31-Mar-10

ABSOLUTE
INCREASE/
DECREAES

4,577,433

4,253,841

323,592

7.607054424

4,009,158

-4,009,158

-100

210,618,369

142,209,460

68,408,909

48.10433075

29,135

54,870

-25,735

-46.90176781

1,674,044,394

1,428,115,800

245,928,594

17.22049388

Borrowings

129,156,925

91,636,374

37,520,551

40.9450411

Other Liabilities and Provisions

206,159,441

162,428,229

43,731,212

26.92340628

2,224,585,697

1,832,707,732

391,877,965

21.38245822

Cash and Balances with

Reserve Bank of India

154,832,841

135,272,112

19,560,729

14.4602821

Balances with Banks and

Money at Call and Short notice

144,591,147

39,794,055

104,797,092

263.3486133

Investments

586,076,161

588,175,488

-2,099,327

-0.356921878

1,258,305,939

988,830,473

269,475,466

27.25193786

CAPITAL AND
LIABILITIES
Capital
Equity Share Warrants
Reserves and Surplus
Employees Stock Options
(Grants) Outstanding
Deposits

CHANGE
IN %

ASSETS

Advances

Fixed Assets

21,228,114

17,067,290

4,160,824

24.37893772

Other Assets

59,551,495

63,568,314

-4,016,819

-6.318901269

2,224,585,697

1,832,707,732

391,877,965

21.38245822

4,790,515,044

4,059,816,885

730,698,159

17.99830336

81,248,646

85,522,390

-4,273,744

-4.997222365

Contingent Liabilities
Bills for Collection

6,000,000,000
5,000,000,000
4,000,000,000
3,000,000,000

As at 31-Mar-10

2,000,000,000

As at 31-Mar-09

1,000,000,000

ABSOLUTE INCREASE/
DECREAES

0
-1,000,000,000

Interpretation:

The total current liabilities for the year are Rs.43731212 is less than the total assets for the year are
Rs.1832707732. Therefore the assets are more than the liabilities. So there is a positive gap of Rs.
391877965 i.e 21.38%

COMPARATIVE ASSET LIABILITY SHEET AS ON 31ST MARCH 2009-10

As at 31-Mar-10

As at 31-Mar-09

CAPITAL AND
LIABILITIES
Capital

4,253,841

3,544,329

Equity Share Warrants

4,009,158

142,209,460

111,428,076

Reserves and Surplus

ABSOLUTE
INCREASE/
DECREAES

CHANGE
IN %

709,512

20.01823

30,781,384

27.62444

Employees Stock Options

(Grants) Outstanding
Deposits
Borrowings
Other Liabilities and
Provisions

ASSETS
Cash and Balances with
Reserve Bank of India

54,870

1,428,115,800

1,007,685,910

26,858,374

45,949,235

227,206,229

163,158,482

1,832,707,732

1,331,766,032

135,272,112

125,531,766

Balances with Banks and

Money at Call and Short
notice
Investments

39,794,055

22,251,622

588,175,488

493,935,382

Advances

988,830,473

634,268,934

Fixed Assets

17,067,290

11,750,917

Other Assets

63,568,314

44,027,411

1,832,707,732

1,331,766,032

4,059,816,885

5,930,080,864

85,522,390

69,207,148

Contingent Liabilities
Bills for Collection

420,429,890

41.72232

-19,090,861

-41.5477

64,047,747

39.25493

500,941,700

37.61484

9,740,346

7.759268

17,542,433

78.83665

94,240,106

19.07944

354,561,539

55.90082

5,316,373

45.2422

19,540,903

44.38349

500,941,700

37.61484

-1,870,263,979

-31.5386

16,315,242

23.5745

7,000,000,000
6,000,000,000
5,000,000,000
4,000,000,000

As at 31-Mar-09

3,000,000,000
2,000,000,000
1,000,000,000
0
-1,000,000,000
-2,000,000,000
-3,000,000,000

As at 31-Mar-08

Interpretation:

The total current liabilities for the year are Rs.64047747 is less than the total assets for the year are
Rs.1331766032. Therefore the assets are more than the liabilities. So there is a positive gap of Rs.
500941700 i.e 37.61%

COMPARATIVE ASSET LIABILITY SHEET AS ON 31ST MARCH 2008-09

As at 31-Mar-09

As at 31-Mar-08

ABSOLUTE
INCREASE/
DECREAES

CHANGE
IN %

354,43

319,39

3504

10.970913

11,142,80

6,113,76

502904

82.257727

100,768,60

68,297,94

3247066

47.542664

4,478,86

2,815,39

166347

59.084887

16,431,91

13,689,13

274278

20.036189

133,176,60

91,235,61

4194099

45.969978

Cash and Balances with

Reserve Bank of India

12,553,18

5,075,25

747793

147.34112

Balances with Banks and

Money at Call and Short
notice
Investments

2,225,16

3,971,40

-174624

-43.970388

49,393,54

30,564,80

1882874

61.602693

Advances

63,426,90

46,944,78

1648212

35.10959

Fixed Assets

1,175,13

966,67

20846

21.564753

Other Assets

4,402,69

3,712,71

68998

18.584269

133,176,60

91,235,61

4194099

45.969978

Contingent Liabilities

593,008

328,148,24

-32221816

-98.192866

Bills for Collection

6,920,71

4,60683

231388

50.227163

CAPITAL AND
LIABILITIES
Capital
Reserves and Surplus
Deposits
Borrowings
Other Liabilities and
Provisions

ASSETS

40000000
30000000
20000000
10000000
0

As at 31-Mar-08

-10000000

As at 31-Mar-07

-20000000

ABSOLUTE INCREASE/ DECREAES

-30000000
-40000000

CHANGE IN %

Interpretation:

The total current liabilities for the year are Rs.1368913 is less than the total assets for the year are
Rs.9123561. Therefore the assets are more than the liabilities. So there is a positive gap of Rs.
4194099 i.e 45.96%