Integrated Annual Report 2024-25 410 Impairment loss on financial services receivable for the year ended 31st March, 2025 recognised in profit or loss of Rs. 2,091.11 crores (2024: Rs. 1,962.46 crores) includes bad debts and write offs of Rs. 1,698.07 crores (2024: Rs. 1,932.49 crores), provision for expected credit loss of Rs. 392.99 crores (2024: provision of Rs. 32.57 crores) and provision for loan commitments of Rs. 0.05 crores (2024: reversal of provision of Rs. 2.60 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. Concentration of Credit Risk Financial services business’s loan portfolio is predominantly to finance retail automobile and housing loans. The financial services business manages concentration of risk primarily by geographical region in India. The following table shows the geographical concentrations of financial loans as at year end: Rupees crores Particulars 2025 2024 Carrying Value ............................................................................................................................................................................................................................. 1,27,587.17 1,10,023.89 Concentration by Geographical region: North .................................................................................................................................................................................................................................................. 41,709.20 34,299.31 East ..................................................................................................................................................................................................................................................... 22,789.93 21,138.69 West .................................................................................................................................................................................................................................................... 37,449.66 31,845.58 South ................................................................................................................................................................................................................................................. 25,638.38 22,740.31 Total Loans .................................................................................................................................................................................................................................. 1,27,587.17 1,10,023.89 Maximum Exposure to credit Risk The maximum exposure to credit risk of loans is their carrying amount. The maximum exposure is before considering the effect of mitigation through collateral. Narrative Description of Collateral Collateral primarily include vehicles purchased by retail loan customers, residential property in case of housing loan and machinery & property in case of SME customers. The financial investments are secured by way of a first ranking pari-passu and charge created by way of hypothecation on the receivables of the other company. Gross value of total secured loans to value of collateral Rupees crores Loan To Value (LTV) Gross value of secured loans 2025 2024 Upto 50% coverage........................................................................................................................................................................................................... 12,765.10 10,946.95 51 - 70% coverage............................................................................................................................................................................................................ 19,684.85 17,045.80 71 - 100% coverage......................................................................................................................................................................................................... 67,699.08 59,262.76 Above 100% coverage.................................................................................................................................................................................................... 21,285.88 17,630.35 1,21,434.91 1,04,885.86 Quantitative Information of Collateral - Credit Impaired assets (Collateral Coverage - Value of collateral available to mitigate the credit exposure) Rupees crores Loan To Value (LTV) Gross Value of loans in stage 3 2025 2024 Upto 50% coverage........................................................................................................................................................................................................... 941.47 410.73 51 - 70% coverage............................................................................................................................................................................................................ 970.57 388.23 71 - 100% coverage......................................................................................................................................................................................................... 1,881.49 570.70 Above 100% coverage.................................................................................................................................................................................................... 1,265.79 2,777.08 5,059.32 4,146.74 39. Financial instruments (Continued)
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