Annual Report 2012 - National Savings Bank

244THE RESULTS OF A CHALLENGING YEARNOTES TO THE FINANCIAL STATEMENTS42. Change in Operating AssetsFor the year ended 31st December 2012 2011 2012 2011Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000Change in derivative financial instruments 25,057 12,672 25,057 12,672Net increase in debt securities, treasury bills & bonds andequity shares held at fair value through profit or loss (11,461,026) (38,531,002) (12,147,002) (38,531,002)Net increase in loans and advances to banks 7,717,781 (17,039,655) 9,607,523 (17,039,655)Net increase in loans and advances to customers (39,027,894) (8,339,239) (39,020,926) (7,251,239)Change in other assets (1,398,874) (682,345) (1,399,635) (4,984,231)Total (44,144,956) (64,579,569) (42,934,983) (67,793,455)BankGroup43. Change in Operating LiabilitiesBankGroupFor the year ended 31st December 2012 2011 2012 2011Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000Change in deposits from banks, customers and debt securities issued 35,801,324 57,419,070 32,233,798 57,419,070Change in other liabilities 793,374 217,148 803,842 4,551,417Total 36,594,698 57,636,218 33,037,640 61,970,48744. Litigation Against the BankLitigation is a common occurrence in the banking industry due to the nature of the business. The Bank has an established protocol fordealing with such legal claims. Once professional advice has been obtained on the certainty of the outcome and the amount of damagesreasonably estimated, the bank makes adjustments to account for any adverse effects which the claims may have on its financial standing.The unresolved court cases against the Bank as at the year end for which adjustments to the Financial Statements have not been made dueto the uncertainty of its outcome are as follows.For the year ended 31st December 2012 2011Rs. ‘000 Rs. ‘000Tribunal / CourtLabour Tribunal 8 9District Court 16 17Commercial High Court 11 10Court of Appeal 0 1Supreme Court 1 1Magistrate's Court 3 3NATIONAL SAVINGS BANK . ANNUAL REPORT 2012