Comments On Profit And Loss Account Items

Interest Earned (Schedule 13)

• Interest/Discount on Advances/Bills: Includes interest and discount on all types of loans and advances like cash credit, demand, loans, overdrafts, export loans, term loans, domestic and foreign bills purchased and discounted, overdue interest and also interest subsidy, if any, relating to such advances/bills.
• Income on Investments: Includes all income derived from the investment portfolio by way of interest and dividend.
• Interest on Balances with Reserve Bank of India and other Interbank Funds: Includes interest on balance with Reserve Bank and other banks, call loans, money market placement, etc.
• Others: Includes any other interest/discount income not included in the above heads.

Other Income (Schedule 14):

• Commission, Exchange and Brokerage
• Profit on Sale of investments (Less: Loss on Sale of Investments)
• Profit on Revaluation of Investments (Less: Loss on Revaluation of Investments)
• Profit on Sale of Land, Buildings and Other Assets (Less: Loss on sale of land, buildings and other assets)
• Profit on Exchange transactions (Less: Loss on Exchange Transactions)
• Miscellaneous Income

Interest Expended (Schedule 15):

• Interest on Deposits
• Interest on RBI/Inter-Bank borrowings
• Others

Operating Expenses (Schedule 16):

• Payments to and Provisions for employee
• Rent, Taxes and Lighting
• Printing & Stationery
• Advertisement and Publicity
• Depreciation on Bank's Property: Includes depreciation on bank's own property, motor cars and other vehicles, furniture, electric fittings, vaults, lifts, leasehold properties, non-banking assets, etc.
• Directors Fees, Allowances and Expenses: Includes sitting fees and all other items of expenditure incurred on behalf of directors.
• Auditors' Fees & Expenses (including branch auditors' fee and Expenses)
• Law Charges: All legal expenses and reimbursement of expenses incurred in connection with legal services are to be included here.
• Postage, Telegrams, Telephones, etc
• Repairs and maintenance
• Insurance
• Other Expenditure: All expenses other than those not included in any of the other heads, like license fees, donations, subscriptions to papers, periodicals, entertainment expenses, travel expenses.

Provisions and Contingencies: (Form B)

Includes any provision made for bad and doubtful debts, provisions for taxation, provisions for diminution in the value of investments transfers to contingencies and other similar items.