v3.25.2
Credit substitutes
12 Months Ended
Mar. 31, 2025
Credit substitutes
8. Credit substitutes
Credit substitutes consist of securities that the Bank invests in as part of an overall extension of credit to certain customers. Such securities share many of the risk and reward characteristics of loans and are managed by the Bank together with other credit facilities extended to the same customers. The fair value of credit substitutes by type of instrument as of March 31, 2024 and March 31, 2025 were as follows:
 

 
  
As of March 31,
 
 
  
2024
 
  
2025
 
 
  
Amortized Cost
 
  
Fair Value
 
  
Amortized Cost
 
  
Fair Value
 
 
  
(In millions)
 
Available for sale credit substitute debt securities:
  
  
  
  
Debentures
   Rs.  132,926.5      Rs.  131,458.6      Rs.  160,975.7      Rs.  161,147.8  
Preference shares
     271.3        28.3        332.8        31.8  
Commercial paper
     —         —         —         —   
  
 
 
    
 
 
    
 
 
    
 
 
 
Total
   Rs.  133,197.8      Rs.  131,486.9      Rs. 161,308.5      Rs.  161,179.6  
  
 
 
    
 
 
    
 
 
    
 
 
 
         US$  1,888.2      US$ 1,886.7  
        
 
 
    
 
 
 
The fair value of credit substitutes by the Bank’s internal credit quality indicators and amounts provided for
non-performing
credit substitutes is as follows:
 
 
  
As of March 31,
 
 
  
2024
 
  
2025
 
  
2025
 
 
  
(In millions)
 
Pass
   Rs.  131,486.9      Rs.  161,179.6      US$  1,886.7  
Non-performing—gross
balance
     —         —         —   
Less: Non-performing losses
     —         —         —   
  
 
 
    
 
 
    
 
 
 
Non-performing
credit substitutes, net
     —         —         —   
  
 
 
    
 
 
    
 
 
 
Total credit substitutes, net
   Rs.  131,486.9      Rs.  161,179.6      US$  1,886.7  
  
 
 
    
 
 
    
 
 
 
 
The following table provides information on
non-performing
credit substitutes as of March 31, 2024 and March 31, 2025:
 
    
As of March 31,
 
    
2024
    
2025
    
2025
 
    
(In millions)
 
Gross
non-performing
credit substitutes
     Rs  —         Rs  —       US$  —   
Gross
non-performing
credit substitutes by industry
     Rs. —         Rs. —       US$  —   
Average
non-performing
credit substitutes
     Rs. —         Rs. —       US$  —   
Interest income recognized on
non-performing
credit substitutes
     Rs. —         Rs. —       US$  —   
As of March 31, 2025, the Bank has no additional funds committed to borrowers whose credit substitutes were
non-performing.