All the loans and advances to banks are classified in stage 1 and 12 months ECL calculated thereon as from 2019.

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.

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

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.

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

Allowance for impairment losses include both capital and interest on non-performing loans. Interest provision amounts to MUR 250m at 30 June 2020 (2019: MUR 296m,2018: MUR 341m) 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 2020 amounts to MUR 67.7m (2019: MUR 54.7m and 2018: MUR 93.1m).

Revaluation adjustments on ECL have been accounted under ‘Net gain from foreign exchange and derivatives’.

The following is a reconciliation of the allowance for impairment losses for loans and advances at 30 June 2018: