CONSOLIDATED ACCOUNTS 431 40. Financial instruments (Continued) Level of Assessment - Aggregation Criteria The financial services business recognises the expected credit losses on a collective basis that takes into account comprehensive credit risk information and considers the economic and risk characteristics, pricing range and sector concentration. Reconciliation of loss allowance provision for Retail and SME loans Rupees crores Particulars Stage-1 Stage-2 Stage-3 Total Balance as at 1st April, 2023........................................................................................... 599.55 623.56 2,406.15 3,629.26 — Transferred to Stage-1......................................................................................................... 163.61 (99.02) (64.59) — — Transferred to Stage-2......................................................................................................... (14.40) 52.45 (38.05) — — Transferred to Stage-3......................................................................................................... (4.51) (70.39) 74.90 — Loans that have been derecognised during the year.......................................... (78.50) (151.11) (786.12) (1,015.73) New loans originated during the year............................................................................ 335.91 83.34 194.12 613.37 Write-offs............................................................................................................................................. (0.02) (1.03) (627.45) (628.50) Net remeasurement of loss allowance.......................................................................... (392.90) 208.12 1,248.89 1,064.11 Balance as at 31st March, 2024..................................................................................... 608.74 645.92 2,407.85 3,662.51 Rupees crores Particulars Stage-1 Stage-2 Stage-3 Total Balance as at 1st April, 2022........................................................................................... 532.58 1,417.38 3,059.68 5,009.64 — Transferred to Stage-1......................................................................................................... 403.74 (279.62) (124.12) — — Transferred to Stage-2......................................................................................................... 37.44 (18.32) (19.12) — — Transferred to Stage-3......................................................................................................... 1.00 (147.70) 146.70 — Loans that have been derecognised during the year.......................................... (74.86) (304.78) (983.93) (1,363.57) New loans originated during the year............................................................................ 352.65 72.35 137.55 562.55 Write-offs............................................................................................................................................. (0.09) (4.01) (853.32) (857.42) Net remeasurement of loss allowance.......................................................................... (652.91) (111.74) 1,042.71 278.06 Balance as at 31st March, 2023..................................................................................... 599.55 623.56 2,406.15 3,629.26 Trade advances Rupees crores Particulars 2024 2023 Loss allowance provision........................................................................................................................................................................................................ 19.35 20.03 Impairment loss on financial services receivable for the year ended 31st March, 2024 recognised in profit or loss of Rs. 1,962.46 crores (2023: Rs. 1,203.79 crores) includes bad debts and write offs of Rs. 1,932.49 crores (2023: Rs. 2,635.73 crores), provision for expected credit loss of Rs. 32.57 crores (2023: reversal of provision of Rs. 1,432.08 crores) and reversal of provision for loan commitments of Rs. 2.60 crores (2023: provision of Rs. 0.14 crores). ‘12 months ECL’ and ‘lifetime ECL not credit impaired’ are collectively assessed. ‘Lifetime ECL credit impaired’ are individually assessed. Loan which are written off continue to be subject of enforcement activity. Significant changes in the gross carrying value that contributed to change in loss allowance The financial services business mostly provides loans to retail individual customers in Rural and Semi urban area which are of small ticket size. Change in any single customer repayment will not impact significantly to provisioning. All customers are being monitored based on past due status of outstanding loan and corrective actions are taken accordingly to limit the financial services businesses risk.
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