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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 91
All loans and advances are categorised as neither past due nor impaired; past due but not impaired; or impaired, which includes
restructured loans.
A loan is considered past due when the borrower has failed to make a payment when due under the terms of the loan contract.
The impairment allowance includes allowances against financial assets that have been individually impaired and that are subject
to collective impairment.
Loans neither past due nor impaired consist predominantly of loans that are performing.
In carrying out credit transactions, AfrAsia Bank Limited strives not only to improve its volume growth, but also keeps in mind the
quality of its loan portfolio.
As at 30 June 2015, 94% of the Bank’s asset book (excluding Credit Cards) was in the range AA+ to B, thus, reflective of investment
grade status of the borrowers. The remaining 6% were either sub-investment grade (facilities being on the watchlist where there
are arrears and borrowings classified as non-performing).
Total Non-Performing Assets (including credit cards NPA of MUR 7,401,921) were at MUR 1,148,133,743 representing 5.20% of
total asset book. This has increased from last financial year from 2.66%. The Bank has classified as NPA few large corporates over
this financial year.
CREDIT EXPOSURE
The Bank manages portfolios for individual industries by determining the credit appetite and limit for each industry on the basis
of total exposure, credit quality and industry outlook. The portfolio monitoring and reporting system enables the Group to manage
portfolios and to focus on specific industries and business units.
Exposure risk arises due to the over-dependency on a particular sector of the economy, geographical area, industry and currency.
Exposure for a single party or a group is managed through sector limits with monitoring and approval on a monthly basis to the MCC
and BRC.
The Bank’s key portfolio concentrations by industry are set out below:
SECTOR
OUTSTANDING BALANCE
30 June 2015
(MUR’000)
30 June 2014
(MUR’000)
Financial and Business Services
3,856,234
2,670,704
Tourism
2,800,971
2,097,708
Construction, Infrastructure and Real Estate
2,288,266
2,329,744
Manufacturing
2,636,013
2,669,042
Commerce
1,803,152
1,659,370
Individuals (incl. Credit Cards)
1,847,212
1,548,075
Others
5,772,814
3,813,644
Agriculture and Fishing
927,736
675,507
Information, Communication and Technology
161,460
190,606
Total Exposure
22,093,857
17,654,400