CONSOLIDATED ACCOUNTS 429 (iii) Credit risk related to financial services business Financial services business has a comprehensive framework for monitoring credit quality of its Retail and other loans based on days past due monitoring. Repayment by individual customers and portfolio is tracked regularly and required steps for recovery is taken through follow ups and legal recourse. The following tables set out information about credit quality of loan assets measured at amortised cost: Retail Loans Rupees crores Particulars 2024 2023 Gross carrying value of Retail and SME loan assets Neither Past due nor impaired............................................................................................................................................................................ 88,990.81 71,776.28 Past due but not impaired 30 days past due............................................................................................................................................................................................. 8,261.28 5,294.47 31-90 days past due..................................................................................................................................................................................... 5,745.96 5,999.23 Impaired (more than 90 days)............................................................................................................................................................................. 4,146.74 4,493.92 Total Gross carrying value as at reporting date .......................................................................................................................... 1,07,144.79 87,563.90 Trade Advances Rupees crores Particulars 2024 2023 Gross carrying amount of trade advances Less than 60 days past due................................................................................................................................................................................. 2,853.29 2,480.06 61-90 days past due................................................................................................................................................................................................. 18.94 53.43 Impaired (more than 90 days)............................................................................................................................................................................ 6.87 6.93 Total Gross carrying value as at reporting date ......................................................................................................................... 2,879.10 2,540.42 Inputs considered in the ECL model In assessing the impairment of loans assets under Expected Credit Loss (ECL) Model, the loan assets have been segmented into three stages. The three stages reflect the general pattern of credit deterioration of a financial instrument. The differences in accounting between stages, relate to the recognition of expected credit losses and the calculation and presentation of interest revenue. The financial services business categorises loan assets (except trade advances) into stages based on the days past due status: — Stage 1: 0-30 days past due — Stage 2: 31-90 days past due — Stage 3: More than 90 days The financial services business categorises trade advances into stages primarily based on the days past due status: — Stage 1: 0-60 days past due — Stage 2: 61-90 days past due — Stage 3: More than 90 days Assumptions considered in the ECL model The financial services business has made the following assumptions in the ECL Model: — “Loss given default” (LGD) is common for all three Stages and is based on loss in past portfolio. Actual cash flows are discounted at loan EIR rate for arriving loss rate. — “Probability of Default” (PD) is applied on Stage 1 and Stage 2 on portfolio basis and for Stage 3 PD at 100%. 40. Financial instruments (Continued)
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