445 FINANCIAL STATEMENTS | Consolidated Accounts Rupees crores Particulars Stage-1 Stage-2 Stage-3 Total Balance as at 1st April, 2024............................................................................. 608.74 645.92 2,407.85 3,662.51 — Transferred to Stage-1........................................................................................... 159.29 (104.02) (55.27) — — Transferred to Stage-2........................................................................................... (31.27) 79.83 (48.56) — — Transferred to Stage-3........................................................................................... (10.80) (122.40) 133.20 — Loans that have been derecognised during the year............................ (67.01) (128.76) (720.48) (916.25) New loans originated during the year.............................................................. 288.40 69.51 109.56 467.47 Write-offs .............................................................................................................................. (0.06) (4.15) (530.36) (534.57) Net remeasurement of loss allowance............................................................ (357.69) 214.63 1,513.64 1,370.58 Balance as at 31st March, 2025....................................................................... 589.60 650.56 2,809.58 4,049.74 Trade advances Rupees crores Particulars 2026 2025 Loss allowance provision..................................................................................................................................................................................... 12.77 25.11 Impairment loss on financial services receivable for the year ended 31st March, 2026 recognised in profit or loss of Rs. 2,406.67 crores (2025: Rs. 2,091.11 crores) includes bad debts and write offs of Rs. 2,335.80 crores (2025: Rs. 1,698.07 crores), provision for expected credit loss of Rs. 65.46 crores (2025: provision of Rs. 392.99 crores) and provision for loan commitments of Rs. 5.41 crores (2025: provision of Rs. 0.05 crores). During the year ended 31st March, 2026, financial services business has created management overlay of Rs. 908.76 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 2026 2025 Carrying Value ............................................................................................................................................................................................................... 1,43,402.51 1,27,587.17 Concentration by Geographical region: North .................................................................................................................................................................................................................................... 47,476.91 41,709.20 East ....................................................................................................................................................................................................................................... 24,305.96 22,789.93 West ...................................................................................................................................................................................................................................... 43,463.12 37,449.66 South ................................................................................................................................................................................................................................... 28,156.52 25,638.38 Total Loans .................................................................................................................................................................................................................... 1,43,402.51 1,27,587.17 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. 40. Financial instruments (Continued) (b) Credit Risk Management (Continued)
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