Annual report 2009-OK.qxp - Canadia Bank Plc.

Canadia Bank Plc.31. FINANCIAL RISK MANAGEMENT (continued)31.1 Credit risk (continued)e) Loans and advances (continued)iii.Loans and advances individually impairedIn accordance with Prakas B7-09-074 dated 25 February 2009 on the classification and provisioningfor bad and doubtful debts, loans and advances that are past due for more than 90 daysare considered impaired and a minimum level of specific provision for impairment is made dependingon the classification concerned, unless other information is available to indicate the contrary.2009 2009 2008 2008US$ Million Riel US$ Million Rielequivalentequivalent(Note 2.1) (Note 2.1)Annual Report 200964Past due up to 90 days - - 7,855,986 32,060Past due 91 to180 days 603,868 2,518 28,125,338 114,780Past due 181 to 360 days 977,535 4,075 6,836,133 27,898Past due for more than360 days 14,921,646 62,208 15,059,864 61,459TOTAL 16,503,049 68,801 57,877,321 236,197Value of collateral 29,622,390 123,496 86,391,842 352,565The value of collateral is based on the valuation assessed by property valuation agents or performed internallyby the Bank during the loan approval process or upon loan renewal. As the current property price is volatile, thefair value of collateral assessed when the loan was approved might be different from current value. Under theNBC's regulation, the value of collateral is not taken into account when determining the impairment of loans andadvances to customers.iv.Loans and advances renegotiatedRestructuring activities include extended payment arrangements, modification and deferral ofpayments. Following restructuring, the loan is still kept in its current classification unless there is strongevidence of improvement in the customer's financial condition.The Bank restructured loans and advances amounting to US$15.14 million during the year and theseloans were classified as non-performing loans as at 31 December 2009 (2008: US$27.30 million).f) Repossessed propertiesRepossessed properties are classified in the balance sheet as foreclosed properties.In December 2008, the Bank foreclosed land held as security for loan with fair value of US$2.10 million. Suchproperty was subsequently sold by the Bank in 2009 following the requirement of the NBC to disposerepossessed properties within one year from date of foreclosure.