Notes To The Financial Statements

16(a) LOANS AND ADVANCES TO BANKS

All the loans and advances to banks are classified in stage 1 and 12 months ECL calculated thereon. The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s external credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances.

EXTERNAL RATING GRADE

An analysis of changes in the gross carrying amount and the corresponding ECLs is, as follows:

GROSS CARRYING AMOUNT

ALLOWANCE FOR IMPAIRMENT LOSSES

16(b) LOANS AND ADVANCES TO CUSTOMERS

The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances.

INTERNAL RATING GRADE

An analysis of changes in the gross carrying amount and the corresponding ECLs is, as follows:

GROSS CARRYING AMOUNT

ALLOWANCE FOR IMPAIRMENT LOSSES

Allowance for impairment losses include both capital and interest on non-performing loans. Interest provision amounts to MUR 324m at 30 June 2021 (2020: MUR 250m, 2019: MUR 296m) on non-performing loans which are in arrears for more than 90 days (included in stage 3).

The interest suspensed for the year ended 30 June 2021 amounts to MUR 97.3m (2020: MUR 67.7m and 2019: MUR 54.7m). Revaluation adjustments on ECL of MUR 83.7m (2020: MUR 78.5m) have been accounted under ‘ Gain on foreign exchange’.