The document outlines accounting policies for Federal Bank and ICICI Bank. It discusses their policies around investments, fixed asset depreciation, and revenue recognition. Federal Bank was founded in Kochi, Kerala and has over 1,250 branches across India. ICICI Bank is the second largest bank in India in terms of assets and market capitalization, founded 24 years ago in 1994. It provides details on the depreciation rates for various asset classes for both banks.

1. ACCOUNTING
POLICIES
Submitted By:
Sheetal Verma

2. FEDERAL BANK
■ The Federal Bank Limited is a major private sector commercial bank
headquartered at Kochi, Kerala.
■ The Bank has a network of 1252 branches / offices in India and provides retail
and corporate banking, para banking activities such as debit card, third party
product distribution etc., treasury and foreign exchange business.
■ The Bank’s shares are listed on BSE Limited and National Stock Exchange of
India Limited. The GDRs issued by the Bank in 2006 have been listed on London
Stock Exchange.
■ The bank had set up an International Financial Service Centre (IFSC) Banking
unit (IBU) in Gujarat International Finance Tec-City (GIFT City) in line with global
financial centres of Singapore and Dubai. IBU at Gift city is equivalent to an
Offshore Banking unit, for all regulatory purposes.

3. BASIS OF PREPARATION
■ The accounting and reporting policies of the bank used in the
preparation of these financial statements conform to Generally Accepted
Accounting Principles in India (GAAP), the circulars and guidelines
issued by the RBI from time to time.
■ The Bank follows the historical cost convention and accrual method of
accounting in the preparation of the financial statements, except in the
case of interest income on Non- Performing Assets (NPAs) and loans
under Scheme for Sustainable Structuring of Stressed Assets (S4A) and
Strategic Debt restructuring (SDR) scheme of RBI where it is recognized
upon realization as per RBI guidelines.
■ The accounting policies adopted in the preparation of financial
statements are consistent with those followed in the previous year.

4. ACCOUNTING POLICIES
1. INVESTMENTS
a) Held for Trading (HFT)
b) Available for Sale (AFS)
c) Held to Maturity (HTM)
2. ACQUISITION COST OF INVESTMENT
– Transaction costs including brokerage and commission
pertaining to acquisition of Investments
– Cost of investments

5. ACCOUNTING POLICIES
2. FIXED ASSETS & DEPRECIATION
– Fixed assets are carried at cost of acquisition less accumulated
depreciation and impairment, if any.
– Depreciation on assets and amortization on software
– Premises are depreciated over 5 years based on technical
evaluation
– Premises revalued
– Depreciation on assets sold during the year
– Assets individually costing 2,000/- or less are fully depreciated in
the year of purchase

6. ACCOUNTING POLICIES
3. REVENUE RECOGNITION
– Interest income
– Interest income on NPA & Loans under S4A and SDR
– Processing fees collected on loans disbursed, along with related loan
acquisition costs
– Income on discounted instruments
– Guarantee commission, commission on letter of credit and annual
locker rent fees
– Unpaid funded interest on term loans
– Interest paid/received in bullion on borrowing/lending basis

7. ICICI Bank
■ ICICI Bank (Industrial Credit and Investment Corporation of India)
is an Indian multinational banking and financial services company
headquartered in Mumbai, Maharashtra, India.
■ It is the Second largest bank in India in terms of assets and
Second in terms of market capitalisation.
■ It was founded 24 years ago in 1994.

8. ACCOUNTING POLICIES
1. FIXED ASSET DEPRECIATION
– Premises and other fixed assets
– Depreciation is charged over the estimated useful life of a fixed
asset
– Depreciation on leased assets is made on a straight-line basis
at the higher of the rates determined with reference to the
primary period of lease and the rates specified in Schedule XIV
to the Companies Act, 1956.
– Assets purchased and sold during the year
– Items costing less than Rs. 5,000/- are fully depreciated in the
year of purchase

9. ASSET DEPRECIATION RATE
Premises owned by the
Bank
1.63%
Improvements to leasehold
premises
1.63%
ATMs 12.50%
Plant and Machinery like
Air conditioners, Xerox
machines
10%
Furniture and Fixtures 15%
Motor vehicles 20%
Computers 33.33%

10. ACCOUNTING POLICIES
2. REVENUE RECOGNITION
– Interest income is recognised in the profit and loss account as it
accrues except in the case of non-performing assets (NPAs) where it
is recognised upon realisation.
– Dividend income is accounted on accrual basis when the right to
receive the dividend is established
– The annual/renewal fee on credit cards and debit cards are
amortised on a straight-line basis over one year.
– Fees paid/received for priority sector lending certificates (PSLC) is
amortised on straight-line basis over.

11. ACCOUNTING POLICIES
3. PROPERTY, PLANT AND EQUIPMENT
– Property, Plant and Equipment (PPE), other than premises, are carried at
cost less accumulated depreciation and impairment, if any. Premises are
carried at revalued amount, being fair value at the date of revaluation less
accumulated depreciation. Cost includes freight, duties, taxes and
incidental expenses related to the acquisition and installation of the asset.
Depreciation is charged over the estimated useful life of PPE on a straight-
line basis. The useful life of assets is based on historical experience of the
Bank.
– Assets at residences of Bank’s employees are depreciated over the
estimated useful life of 5 years.
– Items individually costing upto 5,000/- are depreciated fully over a period
of 12 months from the date of purchase.

12. IndusInd Bank
■ IndusInd Bank Ltd. is a Mumbai based India new generation bank,
established in 1994.
■ The bank offers commercial, transaction and electrical, banking products
and services.
■ IndusInd bank was founded by S. P. Hinduja

13. ACCOUNTING POLICIES
1. GENERAL
– Historical Cost
– GAAP
2. INVESTMENTS
3. PLANT, PROPERTY & EQUIPMENT
– Initial cost
– Depriciation
4. REVENUE RECOGNITION
– Interest and discount
– Government securities
– Fees

14. Thank You…