Bank Branch Statutory Audit Report and Checklist
Statutory Audit Report — Bank Branch
Bank: {{client_name}}
Branch: {{branch_name}} (Code: {{branch_code}}, Category: Urban)
Financial Year ended: {{period_end}}
Date of report: 29 May 2026
Opinion
We have audited the accompanying financial statements of {{branch_name}} branch of {{client_name}}, which comprise the Balance Sheet as at {{period_end}}, the Profit and Loss Account, the Cash Flow Statement (where applicable) for the year then ended, and a summary of significant accounting policies and other explanatory information. These returns are incorporated in the financial statements of the Bank, prepared by Head Office in accordance with the Banking Regulation Act, 1949 and the regulatory framework prescribed by the Reserve Bank of India.
In our opinion, and to the best of our information and according to the explanations given to us, the financial statements / returns of the branch present fairly, in all material respects, the state of affairs of the branch as at {{period_end}}, and the results of its operations for the year then ended, in accordance with the accounting principles generally accepted in India.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the ICAI. Our responsibilities under those Standards are further described in the Auditor's Responsibilities section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the ICAI together with the ethical requirements relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Audit Coverage Checklist
A. Verification of Assets
- Cash balance physically verified at year-end and agreed with the cash book.
- Balances with RBI, other banks (NOSTRO, VOSTRO) and money at call — reconciliation reviewed.
- Investments — held-to-maturity (HTM), available-for-sale (AFS), held-for-trading (HFT) — classification verified, valuation per RBI Master Direction on Classification, Valuation and Operation of Investment Portfolio.
- Advances — classification into Standard, Sub-Standard, Doubtful (D1/D2/D3), and Loss assets as per RBI IRAC norms.
- Fixed assets at branch — physical verification, capitalisation, depreciation per Bank's policy.
- Other assets — Inter-Office Adjustments, Suspense Account, Branch Adjustments — analysed for old / pending entries.
B. Verification of Liabilities
- Demand Deposits (Current, Savings) — confirmations / random verification of customer balances.
- Term Deposits — schedule reconciled with general ledger; deposits matured but not renewed examined.
- Borrowings — call money, refinance, inter-bank borrowings — reconciliation.
- Bills Payable, Inter-Office Adjustments (credit), Interest Accrued — analysed for old / pending entries.
- Contingent liabilities — guarantees, LCs, forward exchange contracts, acceptances — properly disclosed in MOC.
C. Profit and Loss / Income Recognition
- Interest income on advances — recognised as per IRAC norms; income reversed on NPA classification, including unrealised interest already booked.
- Interest income on investments — accrual on time-proportion basis; income on securities accrued only on serviced securities.
- Commission, exchange and brokerage — accounted on actual realisation basis except where bank-wide policy is accrual.
- Interest expense on deposits — accrual basis; treatment of interest on overdue deposits.
- Operating expenses — staff cost, rent, electricity, postage — verified with supporting evidence.
D. NPA and Provisioning
- Independent classification of advances into IRAC categories cross-checked with system classification.
- Provisions on Standard advances at prescribed rates (0.25% to 1% depending on sector).
- Provisions on Sub-Standard, Doubtful and Loss assets at minimum prescribed rates; secured / unsecured bifurcation considered.
- Provisions on Restructured Standard advances per applicable framework.
- Provisions on Country Risk exposures, where applicable.
- Provisions for diminution in value of investments (HTM amortisation, AFS / HFT marked to market).
- Provisions on Inter-Branch Account credits older than 6 months / open NOSTRO entries older than 3 months.
- Floating provisions — utilisation only with RBI permission; disclosed separately.
E. Memorandum of Changes (MOC)
- List of MOCs proposed by branch auditors with detailed reasoning for each.
- Reclassification of advances (e.g. Standard to Sub-Standard) — IRAC impact.
- Adjustments to income (interest reversals, fee accruals).
- Adjustments to provisions.
- Other balance sheet and P&L adjustments.
- MOC reconciled with branch returns submitted to Head Office.
Other Reporting Requirements
A separate Long Form Audit Report (LFAR) in the format prescribed by the Reserve Bank of India has been issued separately addressing the matters specified therein.
Tax Audit Report under Section 44AB of the Income-tax Act, 1961, where applicable, has been issued separately.
For {{firm_name}}
Chartered Accountants
Firm Registration No.: {{firm_registration_no}}
_______________________________
{{engagement_partner}}
Statutory Branch Auditor
Membership No.: {{icai_membership_no}}
UDIN: ____________________
Place: ____________________
Date: 29 May 2026
