The Group and the Bank lease building and the average lease term is 3 years. The Group and the Bank do not have the option to purchase the leased assets at the end of the lease term. The Group and the Bank’s obligations are secured by the lessor’s title to the leased assets for such leases.

MUR 1.8m of the depreciation charge has been presented under personal expenses in the statements of profit or loss and other comprehensive income as it relates to staff benefits.

One of the lease contract for property expired during the current financial year. The expired contract was replaced by new lease for identical underlying asset. In addition new parking contract was entrered during the year. This resulted in additions to right-of-use assets of MUR 21m.

The Group and the Bank do not face a significant liquidity risk with regard to its lease liabilities. The leases are denominated in MUR and ZAR.

For disclosure under IAS 17, please refer to Note 35 - Contingent liabilities and commitments.

Interest on lease are accounted in interest expense (MUR 4.8m) and staff cost (MUR 0.2m).