MIRA INFORM REPORT

Report Date :

14^th June, 2006.

IDENTIFICATION DETAILS

Name :	BANK OF INDIA
Registered Office :	14^th Floor Express Towers, Nariman Point, Mumbai-400021
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	07.09.1906
Com. Reg. No.:	11-243
CIN No.: (Company Identification number)	U99999MH1906PTC000243
Legal Form :	A Public Sector Commercial Bank. The bank's shares are listed on the Stock Exchanges.
Line of Business :	Banking Business

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	Large
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a leading commercial bank, listed on the Stock Exchanges and owned by the Government of India. Available information indicates high financial responsibility of the Bank. Their trade relations are reported as fair. Financial position of the bank is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :

14^th Floor Express Towers, Nariman Point, Mumbai-400021

Tel. No.:

91-22-22023020 (36 lines)

Fax No.:

91-22-22024701/56684558/22824212

E-Mail :

boicic@bom5.vsnl.net.in

Website :

http://www.bankofindia.com

Head Office :

Star House, 3^rd Floor, East Wing, E47, C-5, G Block, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra, India

ZONAL OFFICES:

Andhra Pradesh Zone

2^nd Floor, P. T. I. Building, A. C. Guards, Hyderabad – 500 004, Andhra Pradesh, INDIA

Nagpur Zone

Bank of India Building, 3^rd Floor, S. V. Patel Road, P. B. No. 4, Nagpur – 440 001, INDIA

Bihar North Zone

Chanakya Place, Birchand Patel Marg, Patna – 800 001, Bihar, INDIA

Bihar South Zone

Pradhan Towers, Near Overbridge, Main Road (South), P. B. No. 141, Ranchi – 834 001, INDIA

Eastern Zone

5, B. T. M. Road, Brabourne Road, Calcutta – 700 001, West Bengal, INDIA

Northern Zone

Jeevan Bharti, Level-5, Tower-1, 124 Connaught Circus, New Delhi – 110 001, INDIA

North Western Zone

S. C. O. No. 181-182, Sector 17-C, Post Box No. 6, Chandigarh – 160 017, Punjab, INDIA

Orissa Zone

12 Satya Nagar, Janpath, Unit 3, Bhubaneshwar – 751 007, Orissa, INDIA

Gujarat Zone

Bank of India Building, Bhadra, Post Box No. 8, Ahmedabad – 380 001, Gujarat, INDIA

Pune Zone

1162/6 Shivajinagar, Pune University Road, P. B. No. 944, Pune – 411 005, Maharashtra, INDIA

Madhya Pradesh Zone

Bank of India Bhawan, Arera Hills, Bhopal – 462 004, Madhya Pradesh, INDIA

Southern Zone

Garuda Building, 46 Cathedral Road, P. B. No. 4908, Gopalapuram Post Office, Chennai – 600 086, Tamilnadu, INDIA

Mumbai North Zone

`Caesar’s Court’, 2^nd Floor, 217 S. V. Road, Andheri (West), Mumbai – 400 058, INDIA

Mumbai South Zone

70-80, Mahatma Gandhi Road, Post Box No. 238, Mumbai – 400 023, INDIA

Uttar Pradesh Zone

Mohini Mansion, Post Box No. 272, 1 Nawal Kishore Road, Lucknow – 226 001, Uttar Pradesh, INDIA

Branches :

Statewise distribution of the various branches of the bank is as under:

States	Rural	Semi-Urban	Urban	Metro-politan	Total
Andhra Pradesh	14	15	27	12	68
Assam	4	0	4	0	8
Bihar	289	66	37	0	392
Delhi	2	0	0	46	48
Goa	15	13	0	0	28
Gujarat	83	42	29	62	216
Haryana	2	4	14	0	20
Himachal Pradesh	4	3	0	0	7
Jammu & Kashmir	0	1	3	0	4
Karnataka	17	7	14	18	56
Kerala	20	31	17	0	68
Madhya Pradesh	138	52	35	26	251
Maharashtra	286	93	53	131	563
Meghalaya	0	0	2	0	2
Orissa	80	14	17	0	111
Punjab	24	13	24	7	68
Rajasthan	18	2	17	4	41
Sikkim	0	1	0	0	1
Tamilnadu	54	15	18	22	109
Tripura	0	0	1	0	1
Uttar Pradesh	102	43	44	23	212
West Bengal	99	24	29	43	195
Union Territories
Chandigarh	0	0	4	1	5
Diu	0	1	0	0	1
Pondicherry	0	0	1	0	1
Total	1251	440	390	395	2476

Overseas offices:

U.S.A.

277, Park Avenue, New York, N.Y. 10172-0083

San Francisco (Agency)

555, California Street, Suite 4646, San Francisco, California 94104

UNITED KINGDOM

London

Park House, 16 Finsbury Circus, London EC 2m7 DJ

Birmingham

399, Stratford Road, Spark Hill, Birmingham B11 4JZ

Leicester

105-107 Belgrave Road, Leicester LE4 6AS

Manchester

79 Newton Street, Manchester M1 1EX

Wembley

293, Harrow Road, Wembley, Middlesex HA9 6BD

East Hum

320/322 Barking Road, East Ham, London E6 3BA

CHANNEL ISLANDS

Jersey

37 New Street, St. Hetlier, Jersey, JE2 3RA, Channel Islands

FRANCE

Paris

3, Rue Scribe 75009, Paris

KENYA

Nairobi

Kenyatta Avenue, Post Box No. 30246, Nairobi, Kenya

Mombasa

Bank of India Building, Nikrumah Road, Treasury Square, P. B. No. 90684, Mombasa, Kenya

SINGAPORE

Singapore

138 Robinson Road, 01/02/03-01 Hong Leong Centre, Singapore 068906

INDONESIA

Jakarta (Representative Office)

12^th Floor, Menara B. D. N., J. L. Kebon Sirih No. 83, Tromol Pos No. 3003/JKT, Jakarta – 10030

HONG KONG

Hong Kong

Ruttonje Centre, 2^nd Floor, Duddell Street, Central Hong Kong

Kowloon

Units 407-409, 4^th Floor, Hong Kong Pacific Centre, 28, Han Kow Road, Kowloon, Hong Kong

WEST INDIES

Cayman Islands

P. O. Box 694, Grand Cayman, Cayman Islands, West Indies

JAPAN

Tokyo

Mitsubishi Debki Building, 2-2-3 Marunouchi Chiyoda-Ku, Tokyo – 100

Postal Address

Central P. O. 253, Tokyo – 100

Osaka

8-12 Honmachi 1, Chome, Chou-Ku, Osaka 541

Postal Address

Higashi, P. O. Box 14, Osaka 540-91

DIRECTORS

Name :	Mr. M. Venugopalan
Designation :	Chairman & Managing Director
Name :	Mr. M. Balachandran
Designation :	Executive Director
Name :	Mr. Amitabh Verma
Designation :	Director
Name :	Mr. V. S. Das
Designation :	Director
Name :	Mr. Deepak P. Patil
Designation :	Director
Name :	Mr. V. Eswaran
Designation :	Director
Name :	Prof. S. Sadagopan
Designation :	Director
Name :	Mr. Tarun. N. Sheth
Designation :	Shareholder Director
Name :	Mr. G. R. Shastri
Designation :	Director
Name :	Mr. B. G. Chandre
Designation :	Director
Name :	Mr. Pahlaj N. Nihalani
Designation :	Director
Name :	Mr. S. R. Halbe
Designation :	Director
Name :	Mr. D. K. Kapila
Designation :	Director (till 7^th May, 2004)
Name :	Mr. K R Kamath
Designation :	Executive Director
Name :	Mr. A K Khound
Designation :	Nominee of RBI
Name :	Mrs. Dr. Prabha K. Taviad
Designation :	Part Time Non – Official Director
Name :	Mrs. Dr. Shantaben Chavda
Designation :	Part Time Non – Official Director
Name :	Mr. Dr. Kaujalgi Vasant Baburao
Designation :	Shareholder Director
Name :	Mrs. Dr. Pamidi Kotaiah
Designation :	Shareholder Director
Name :	Mr. Madhavan Nair Gopinath
Designation :	Shareholder Director

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Domestic
Government of India	338580000	69.47
Banks	4328252	0.89
Financial Institutions	15199552	3.12
Mutual Funds	58914	0.01
Employees	6924800	1.42
Other Corporate Bodies	12720547	2.61
Public	66685377	13.68
Trust	1008073	0.20
Sub Total	445505515	91.40
Foreign
OCB	10386222	2.13
FII	23235095	4.77
NRI	8271968	1.70
Foreign Nationals	0.000	0.000
Sub Total	41893285	8.60
Shares in Transit position at NSDL	0.000	0.000
Total	487398800	100.00

BUSINESS DETAILS

Line of Business :

Banking Business

GENERAL INFORMATION

No. of Employees :	43141
Bankers :	Reserve Bank of India
Facilities :	--

Banking Relations :	Good
Auditors :	Ø Brahmayya and Company Chartered Accountants Ø S. K. Kapoor and Company Chartered Accountants Ø Prakash Chandra Jain and Company Chartered Accountants Ø M. Bhaskara Rao and Company Chartered Accountants Ø Chhajed & Doshi Chartered Accountants Ø M. Thomas & Company Chartered Accountants
Subsidiaries :	BOI Finance Limited [Fully Owned Subsidiary] Phiroze Jeejeebhoy Towers, 24^th Floor, Dalal Street, Mumbai – 400 023, Maharashtra BOI Shareholding Limited Stock Exchange, Rotunda Building, Ground Floor, Dalal Street, Mumbai – 400 023, Maharashtra The Bank of India (U.K.) Nominees Limited Park House, 16 Finsbury Circus, London EC 2M 7DJ Bank of India Finance (Kenya) Limited Kenyatta Avenue, Post Box No. 30246, Nairobi, Kenya BOI Assets Management Company Limited Phiroze Jeejeebhoy Towers, 24^th Floor, Dalal Street, Mumbai – 400 023, Maharashtra Indo Zambia Bank Limited 86, Cairo Road, Post Box No. 35411, Lusaka, Zambia BOI Mutual Fund Securities Trading Corporation of India Limited (STCL) IL & FS Investment Managers Limited (IIMl) Central Depository Services (INDIA) Limited (CDSL) Bank of India Nominees (Singapore) Limited 138 Robinson Road, 01/02/03-01, Hong Leong Centre, Singapore 068906
Associates:	BOI Mutual Fund Phiroze Jeejeebhoy Towers, 24^th Floor, Dalal Street, Mumbai – 400 023, Maharashtra Avadh Gramin Bank Baitarni Gramya Bank Bhandara Gramin Bank Chandrapur Gadchiroli Gramin Bank Dewas Shajapur Kshetriya Gramin Bank Farrukhabad Gramin Bank Giridih Kshetriya Gramin Bank Hazaribagh Kshetriya Gramin Bank Indore Ujjain Kshetriya Gramin Bank Nimbar Kshetriya Gramin Bank Rajgarh Sehore Kshetriya Gramin Bank Ranchi Kshetriya Gramin Bank Ratnagiri Sindhudurg Gramin Bank Singhbhum Kshetriya Gramin Bank Solapur Gramin Bank Credit Capital Venture Fund (India) Limited 62, Basantlok, Vansant Vihar, New Delhi – 110 057 Allied Bank of Nigeria Limited Allied House, 155/161 Board Street, M B 12785, Lagos, Nigeria

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000000	Equity Shares	Rs.10/- each	Rs.15000.000 millions

Issued, Subscribed :

No. of Shares	Type	Value	Amount
488580000	Equity Shares	Rs.10/- each	Rs. 4885.800 millions

Paid-up Capital:

No. of Shares	Type	Value	Amount
487398800	Equity Shares	Rs.10/- each	Rs. 4873.988 millions
Add	Share Forfeited		Rs. 7.430 millions
	Total		Rs. 4881.418 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2005	31.03.2004	31.03.2003
CAPITAL & LIABILITIES
Capital	4881.419	4881.418	4881.407
Reserves & Surplus	39767.287	35215.245	30526.359
Deposits	788214.379	710031.201	644535.959
Borrowings	59619.537	45207.783	40269.286
Other Liabilities & Provisions	57299.213	53264.280	46054.723
GRAND TOTAL	949781.835	848599.927	766267.734
ASSETS
Cash & Balances with Reserve Bank of India	39047.232	42309.364	33497.914
Balances with Banks & Money at Call & Short Notices	36215.273	43270.099	36481.624
Investments	282026.230	271628.862	244348.425
Advances	560125.848	458558.970	426331.815
Fixed Assets	8141.756	7985.893	7367.012
Other Assets	24225.496	24846.739	18240.944
GRAND TOTAL	949781.835	848599.927	766267.734

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Annual Income	71873.217	75878.956	75705.888
[including other income]
Expenditures
Interest Expended	37946.398	35944.753	38920.106
Operating Expenses	19323.245	17515.480	16485.781
Provision & Contingencies	11203.101	12335.488	11789.961
Total Expenditures	68472.744	65795.721	67195.848
Profit
Net Profit for the year	3400.473	10083.235	8510.040
Less Extra Ordinary Item	0.000	0.000	0.000
Profit brought forward	0.000	0.000	0.000
Total Profit	3400.473	10083.235	8510.040
Appropriations
Transfer to Statutory Reserves	900.000	2550.000	2200.000
Transfer (from)/to Investment Fluctuation Reserve	(2200.000)	2000.000	1000.000
Transfer to Revenue Reserves	768.402	3661.098	3262.592
Transfer to Capital Reserves	625.218	222.596	397.922
Interim Dividend	551.096	1099.694	--
Transfer to Government/Proposed Dividend (inclusive of dividend tax)	555.757	549.847	1649.526
Balance in Profit & Loss Account	2200.000	0.000	0.000
Total Appropriations	3400.473	10083.235	8510.040

SUMMARISED RESULTS

Particulars	31.03.2006 (Full Year)
Sales Turnover	7,0287.0
Other Income	1,1843.8
Total Income	8,2130.8
Total Expenditure	2,9007.0
Operating Profit	5,3123.8
Interest	4,3967.2
Gross Profit	9156.6
Depreciation	00.0
Tax	2142.2
Reported PAT	7014.4
Dividend (%)	300.0

KEY RATIOS

Particulars	31.03.2005	31.03.2004	31.03.2003
Credit Deposit Ratio	67.45	65.50	65.44
Investment Deposit Ratio	37.16	38.19	37.61
Cash Deposit Ratio	5.41	5.61	5.64
Interest Expended / Interest Earned	62.91	62.02	65.65
Other Income / Total Income	16.08	23.63	21.69
Operating Expense / Total Income	26.89	23.08	21.78
Interest Income / Total Funds	6.72	7.21	8.14
Interest Expended / Total Funds	4.23	4.47	5.34
Net Interest Income / Total Funds	2.49	2.74	2.79
Non Interest Income / Total Funds	1.29	2.23	2.25
Operating Expense / Total Income	2.15	2.18	2.26
Profit Before Provisions / Total Funds	1.63	2.79	2.78
Net Profit / Total Funds	0.38	1.25	1.17
Return On Net Worth (%)	8.36	28.04	28.32

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership and control till July 1969 when it was nationalised along with 13 other banks.

Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh and 50 employees, the Bank has made a rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international operations. In business volume, the Bank occupies a premier position among the nationalised banks.

The Bank has 2613branches in India spread over all states/ union territories including 93 specialised branches. These branches are controlled through 48 Zonal Offices . There are 23 branches/ offices (including three representative offices) abroad.

The Bank came out with its maiden public issue in 1997. Total number of shareholders as on 31/03/2006 is 2,38,708.

While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront of introducing various innovative services and systems. Business has been conducted with the successful blend of traditional values and ethics and the most modern infrastructure. The Bank has been the first among the nationalised banks to establish a fully computerised branch and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India. It pioneered the introduction of the Health Code System in 1982, for evaluating/ rating its credit portfolio.

The Bank's association with the capital market goes back to 1921 when it entered into an agreement with the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is an association that has blossomed into a joint venture with BSE, called the BOI Shareholding Ltd. to extend depository services to the stock broking community. Bank of India was the first Indian Bank to open a branch outside the country, at London, in 1946, and also the first to open a branch in Europe, Paris in 1974. The Bank has sizable presence abroad, with a network of 23 branches (including three representative office ) at key banking and financial centres viz. London, Newyork,Paris,Tokyo,Hong-Kong,and Singapore. The international business accounts for around 20.10% of Bank's total business.

business review

Deposits

Bank’s Deposits increased by Rs. 69050 millions to Rs. 710030 millions during the year, recording a growth of 10.8%. The growth in domestic deposits was to the tune of Rs. 60400 millions or 11.3%. Deposits at Foreign branches increased by Rs. 8640 millions to Rs. 112880 millions, recording a growth of 8.3%.

Non-Resident Deposits of the Bank increased by 9.45% during the year from Rs. 86110 millions at March end 2003 to Rs. 94250 millions at March end 2004 and constituted 1598% of aggregate domestic deposits. There are six NRI branches and 12 NRI centres to provide specialised service to the elite Non-Resident Depositors, matching with international standards. The Bank is identifying more locations for opening NRI branches/centres. The Bank’s customer friendly innovative schemes Current Deposits Plus, Savings Bank Plus and Multi City Cheque facility are identified thrust areas and had potential for substantial growth.

For containment of cost, increased focus was placed on low cost current and savings deposits. Horizontal expansion by adding large number of new accounts was pursued across branches. As a result Saving Bank Deposit grew impressively by 20.42% and Current Deposit by 10.10%. The share of low cost Saving Bank and Current Deposits in domestic operations went up by about 2% to reach 38.31% of the aggregate deposits. The Bank has a well diversified deposits base with 55.2% of domestic deposits coming from rural, semi-urban and urban centres and the remaining from Metropolitan centres, contributed by 20 millions deposits customers.

advances

Global Advances (Gross) of the Bank stood at Rs. 474970 millions, a growth of 6.8%. The growth of advances in domestic operations was higher at 10.3% and increased to Rs. 364050 millions in FY 2004 from Rs. 330130 million in FY 2003. Infrastructure, prioritiy sectors and good pick up under retail schemes contributed to 13.32% growth in non-food credit in domestic operations, which increased to Rs. 346390 millions in FY 2004 from Rs. 305950 million in FY 2003 despite subdued demand from the corporate segment. The credit (Gross) at foreign centres stood at Rs. 110910 millions.

While continuing financing borrowers in the core sector where the Bank has higher exposure, the Bank has also expanded its share in retail and infrastructure sectors during the year. Thrust on bill finance and trade finance continues. In the area of corporate finance and export credit, the Bank’s thrust has been on selectively mobilising new clientele while nurturing the existing clients so as to had quality assets build up of large volumes. The Bank has granted substantial amount of foreign currency loans to corporates/exporters for enabling them to manage their working capital costs in tune with global interest rate scenario. The Bank is also encouraging financing to small and medium enterprises.

The Bank through its 117 specialised branches caters to the various specialised segments of borrowers in Exports & Imports, SSI industries, Hi-tech Agriculture Sector, Corporate Finance and Commercial and Personal Segments. Nine corporate banking branches continue to cater exclusively to the specialised credit requirements of the Corporate borrowers. They account for more than 40% of Bank’s credit.

As per the RBI directives the Bank declared its bench mark PLR at 10.75%.

retail lending

In recent years, with change in the perception of growing middle class towards personal loans, retail lending has offered a very good opportunity for growth. The Bank has also identified this segment as thrust area. It introduced new schemes and modified existing schemes to suit the changing needs. The Bank has special products to suit various personal, education, trade, small businesses, etc in the retail segment. During FY 2004, retail credit recorded a growth of 26% and its share in total credit increased to 24% from 21% last year. This growth constituted 40% of the total non-food credit growth during the year. Wider reach, and staff to support intensive marketing provides an edge to develop this business. Special thrust is given to Housing, Personal, Vehicle and Educational loans through 34 Commercial and Personal Banking branches, 9 Housing and Personal Finance branches and certain other identified branches.

BOI Star Mortgage loan scheme was also introduced to tap the vast potential in retail sector. This product is essentially to provide hassle-free liquidity to the customer against an illiquid asset (property). The success of BOI Star Mortgage Schemes has promoted the Bank to introduce its variant “BOI Star Retail” which will cover partnership firms as well.

infrastructure finance

Infrastructure is a growing area, which is also a national priority. It has its peculiar challenges of Asset-Liability mismatches, being long term in nature. The bank expects increasing opportunities from this sector. The Bank has actively participated in financing of infrastructure projects in Ports, Roads, Power and Telecommunications. Some of the large infrastructure projects financed by the Bank during the year were Vizag Sea Port Limited, North Karnataka Express Highway, Allain & Duhangan Hydro Power, Vemagiri Power Generation, Tiruvananthapur Road Development, etc. The Bank had syndicated a large loan of Rs. 18000 million in Hydro Power Project in Madhya Pradesh whose project cost is Rs. 23000 millions.

forex business

The forex business handled showed strong growth in all segments. The Bank’s export turnover increased to Rs. 171620 millions to Rs. 155070 millions (growth of 10.67%). Import turnover of the Bank also recorded growth of 22.17% over the previous year, from Rs. 89220 millions to Rs. 109000 millions. The turnover of the 5 dealings rooms has gone up by 41.91%, Profit from domestic dealings room operations increased from Rs. 1033.800 millions in FY 2003 to Rs. 1475.000 million in FY 2004 (Growth of 42.68%)

iso 9001-2000 Certification of branches

For institutionalizing the Quality Management System, the Bank decided to seek ISO 9001-2000 accreditation for a large number of its branches. Under Phase I, 26 branches are getting accredited with ISO 9001-2000. They had plan to go for another 200-250 branches in the year 2004-05.

quality policy

As an internal part of ISO 9001-2000 Certification the Bank has adopted the Quality Policy which read as “We at Bank of India are committed to become the Bank of Choice by providing Superior, Pro-active, Innovative, State of the Art, Banking Services with an attitude of Care and Concern for the Customers and Patrons.”

npa management

The Bank is giving utmost priority for the reduction of NPA and had chosen Financial Year 2004 as “Year of NPA Management”. Suitable measures were initiated to augment recovery and contain NPAs. Efforts were also made to maximize recovery in written off accounts and uncharged/unrealized interest accounts which improved Bank’s profit significantly.

branch network and expansion

The bank has extensive presence through a wide and well dispersed network of branches and extension counters in India (2562 branches) and abroad (22 including three representative office) in all time zones.

PERFORMANCE HIGHLIGHTS

 Operating profit Rs.14600.000 Millions. 

 * Net Profit Rs.3400.000 Millions. 

 * Capital Adequacy at 11.52%. 

 * Networth at Rs.40420.000 Millions, grew by 5.39%. 

 * Investment Fluctuation Reserve (IFR) at Rs. 3220.000 Millions, constitutes 6.05% of eligible securities. 

 * Book value Rs.82.93 (Rs.78.57). * Gross NPA declined by Rs.5780.000 Millions (-15.48%). Gross NPA ratio declined to 5.48% from 7.86% at March-end 2004. 

 * Net NPA declined by Rs.5070.000 Millions (-24.60%). Net NPA ratio declined to 2.77% from 4.50% at 31.03.2004. 

 * All time high Cash Recovery of Rs.8040.000 Millions towards NPA reduction. 

 * Total business of the Bank increased to Rs.1364220.000 Millions, a growth of 14.66%. Domestic business grew by 13.97% to reach the level of Rs.1100920.000 Millions.

 * Total deposits of the Bank increased to Rs. 788210.000 Millions, a growth of 10.27%. Domestic deposits increased by 9.28% to reach the level of Rs.657820.000 Millions. Share of low cost deposits in domestic deposits increased to over 40% in FY 2005 from 38.52% in FY 2004. 

 * Total gross credit of the Bank touched Rs.576010.000 Millions (growth 21.27%) with domestic credit recording growth of 21.7% to reach the level of Rs.443100.000 Millions.

 * Retail lending grew by 29.05% and contributed 31.38% of total non-food credit growth in FY 2005. Share of retail credit in Non-Food Credit has gone upto 25% at 31.03.2005 from 24% a year ago. 

 * Priority sector lending @ 51.33% and Agriculture finance @ 20.45% of Net Bank Credit is above mandatory limits. 

 * Export Credit registered a growth of Rs.3980.000 Millions or 11.43%. * International Gold Credit Card introduced : 

 * Exporters Gold Card introduced.  

 * 100% branches computerised. 

 * Internet Banking and Electronic payment of Utility bills (Stare-pay) introduced. 

 * About 12000 ATMs made available to customers including shared ATMs / VISA network. 

 * Core Banking Solution implemented in 128 branches. 

 * RTGS/SFMS enabled in 88 branches. 

 * 479 branches enabled for On-line Tax Accounting System (OLTAS). 

 * Equity participation in ASREC, the Asset Reconstruction Company floated by UTI and Multi Commodity Exchange (MCX). 

 * Ranked India's most trusted Service Brand among all Nationalised Banks, consecutively for the Year 2004, by A.C. Nielsen ORGMARG. 

 * Ranked 24th among India's Top 500 companies in the year 2004 by Dam & Bradstreet. 

 * Value added Savings and Current deposit products for high-end customers launched on pilot basis as a part of Business Process Re-engineering initiative. 

 * Major initiatives in international operations involving ramp-up of foreign presence, enhancement in product offerings and technology up gradations. Opened west lands branch at Nairobi (Kenya) taking the total number of foreign branches/offices to 23. 

AS PER WEBSITE:

MANAGING DIRECTOR

Shri M. Balachandran took charge as the Chairman and Managing Director of Bank of India on 9th June 2005, prior to which he was Executive Director of the Bank.

Bank of India is 100 year old and a Public Sector Bank with majority share holding by Govt. of India, with 2622 branches in India and 23 branches/offices in 12 countries abroad with assets of value in excess of US$ 25 billion.

Shri Balachandran joined Bank of Baroda as a Specialist Direct Recruit Officer in 1970 after completing his Masters degree in Science. Starting his career as a Banker in the State of Tamilnadu, he has rich knowledge of various aspects of Banking, covering Priority Sector Finance, Commercial Credit and International Banking. In addition to various linguistic territorial exposures, he has vast experiences of managing different categories of branches, as a Regional Head and Zonal Head besides in the Corporate Office of the Bank.

He is also credited with evolving Policies and Guidelines for enhancing the flow of timely credit to activities identified as national priority, particularly Agriculture, Rural Finance and SSI lending and has been associated with various Committees of NABARD and IBA.

He was the Chief Executive of Bank of Baroda's USA, Bahamas & Guyana operations before he was elected as the Executive Director, Bank of India. While at New York he was also Chairman of Bank of Baroda (Guyana) Inc., Georgetown, Guyana, South America.

He was a Director of Indo Zambia Bank Ltd., a joint venture in Zambia, between Indian Public Sector Banks and Government of Zambia. He has been a Director of ASREC (India) Ltd., an asset reconstruction company. Presently Shri Balachandran is the Chairman of BOI Shareholding Ltd., and is a Director of Agriculture Finance Corporation Ltd., and NABARD Consultancy Services Ltd.

Shri Balachandran is also on the Managing Committee of Indian Bank's Association, Governing Council member of Indian Institute of Banking and Finance and Reserve Bank of India's College of Agricultural Banking.

EXECUTIVE DIRECTOR

Shri K.R. Kamath assumed the charge as the Executive Director on 19.05.2006 . Shri Kamath was a General Manager in Corporation Bank since 2002, in charge of Information Technology, Information Security, Management Information System and Integrated Risk Management.

A brilliant academician, Shri Kamath had secured "VI rank" in University of Mysore in II year B.Com in the year 1975 and was adjudged as the "Best Outgoing Commerce Student" of the college in the year 1976. He is a Certified Associate of Indian Institute of Bankers.

He was promoted to Executive cadre in 1994 and was posted as Regional Manager for Collection And Payment Services (CAPS), a "Specialised Business Unit" set up on an experimental basis by the Bank. Contribution of Shri Kamath in building a strong team, spearheading the marketing activities of CAPS and positioning CAPS as the flag ship product of the Bank, has earned him special recognition.

During his tenure in Information Technology Division in Corporation Bank, Shri Kamath was responsible for 100% automation of the Branches, migration of about 88% of business to Core Banking Solution, positioning the 900 strong ATM network of the Bank, putting in place Wide Area Network of the Bank, introduction of Internet Banking and implementing the Information Security System. During this period, the Bank received various awards from IDRBT & IBA for the technology lead of the Bank.

Shri Kamath has secured various Corporate Awards instituted by the Bank such as, Super Productivity Award, SOGian Award, Chairman's Club Membership and Regional Leadership Award. He was also conferred with "Sanman Award" by Joint Commissioner of Income Tax, Calicut Range, Calicut for the financial year 1997-98 in the year 2000.

He was one of the participants of the Technology Tour of US organised by TATA IBM in the year 1997-98. Shri Kamath has undergone various training programmes including workshop/seminars at IIM, Ahmedabad, IBA and BTC.

Known for his conceptual clarity, communication skills and ability to build strong result oriented teams, Shri Kamath has been one of the key members of the Team that has conceptualised and initiated steps to implement Organisational Transformation Project of Corporation Bank. With 29 years experience of working in various capacities in Corporation Bank, he will now add strength to the Team 'Bank of India'.

PRESS RELEASE:

WORKING RESULTS FOR

THE YEAR ENDED MARCH 2006

The working results of the Bank for the year ended March 2006 were adopted by the Bank’s Board of Directors at its meeting held at Mumbai on April 28, 2006.

HIGHLIGHTS

Ø Sharp increase in both quarterly as well as annual Net Profits

Ø Net Profit up for the quarter ended March 2006 at Rs.2544.2 Millions, increase of Rs.2016.3 Millions or 381.95% over the corresponding quarter of previous year.

Ø Net Profit up for the year ended March 2006 at Rs.7014.4 Millions compared to Rs.3400.5 Millions for the corresponding period of previous year, increase of Rs.3613.9 Millions or 106.28%

Ø Operating Profit for the year ended March 2006 at Rs.17012.2 Millions, an increase of Rs.2408.6 Millions or 16.49%

Ø Sharp decline in Gross NPA and Net NPA level.

Ø Gross NPA Ratio declined to 3.72% from 5.53% in March 2005.

Ø Net NPA Ratio declined to 1.49% from 2.80%

Ø Capital Adequacy Ratio at 10.75% well above the minimum regulator requirement of 9%.

Ø Business Mix reached Rs.1605940.000 Millions (Y-o-Y growth of 18.14%).

Ø Domestic Advances increased by Rs.101970.000 Millions (growth of 23.27%) while Global Advances increased by Rs.95450.000 Millions (growth of 16.71%).

Ø Deposits grew by Rs.151110.000 Millions (19.17% growth).

Ø Low Cost of Deposits grew by 21.11% and Share of Low Cost Deposits improved to 40.64% from 40.06%.

Ø Retail Credit grew by 36.71% and Share of Retail Credit in Non-Food Credit improved to 28% from 25.51%. Share of incremental Retail Credit in incremental Non-Food Credit stood at 38.12%.

Ø Credit to S.M.E. increased by 14.31%

Ø Priority Sector lending constituted 49.07% of Net Bank Credit and Agricultural Credit constituted 19.58% surpassing national targets.

Ø Book Value Per Share increased to Rs.93.77 from Rs.82.93 in March 2005.

Ø Earnings Per Share improved to Rs.14.39 from Rs.6.98 in March 2005.

DETAILS

PROFIT

Ø Net Profit for the year ended March 2006 was Rs.7014.4 Millions, increase of Rs.3613.9 Millions or 106.28% over the corresponding period of previous year.

Ø Operating Profit for the year ended March 2006 was Rs.17012.2 Millions, increased by Rs.2408.6 Millions or 16.49% over the corresponding period of previous year.

Ø Interest Income for the year improved by Rs.9971.7 Millions (16.53%), Interest Expenses increased by Rs.6020.8 Millions (15.87%), while Net Interest Income improved by Rs.3950.9 Millions (17.66%).

NON-PERFORMING ASSETS (NPA)

Gross NPA reduced by Rs.6770.000 Millions or 21.44% to Rs.24790.000 Millions from Rs.31560.000 Millions in March 2005.

 Net NPA declined by Rs.5840.000 Millions or 37.62% to Rs.9700.000 Millions from Rs.15540.000 Millions.

Gross NPA ratio declined to 3.72% from 5.53% in March 2005.

 Net NPA Ratio declined to 1.49% from 2.80%.

Ø Net NPA to Networth Ratio declined to 21.18% from 38.45% in March 2005.

Ø Provision coverage ratio improved to 60.89% from 50.76%.

BALANCE SHEET STRENGTH

Ø Bank’s Networth increased by Rs.5351.1 Millions or 13.24% (Y-o-Y basis) to Rs.45772.6 Millions from Rs.40421.5 Millions. 

PROFITABILITY RATIOS

Ø Yield on Advances increased to 7.58% from 7.14 % in March 2005.

Ø Cost of Deposits declined to 4.05 % from 4.17%.

Ø Operating Expenses to Average Assets declined to 2.04% from 2.15%.

Ø Staff Cost to Average Assets declined to 1.28% from 1.41%.

Ø Return on Assets (annualised) stood at 0.68% improved from 0.38%.

SHAREHOLDER VALUE

Ø Book Value Per Share improved to Rs.93.77 from Rs.82.93.

Ø Earnings per Share improved to Rs.14.39 from Rs.6.98 in March 2005.

WORKING RESULTS FOR FY 2004-05

The working results of the Bank for FY 2004-05 were adopted by the Bank’s Board of Directors at its meeting held at Mumbai on April 29, 2005.

HIGHLIGHTS

Ø Operating Profit for F.Y. 2004-05 Rs.14600.000 Millions.

Ø Net Profit for F.Y. 2005 Rs.3400.000 Millions.

Ø Capital Adequacy Ratio at 11.52%.

Ø Gross NPA Ratio declined to 5.48% from 7.86%.

Ø All time high Cash Recovery in NPA of Rs.8040.000 Millions.

Ø Net NPA Ratio declined to 2.77% from 4.50%

Ø Business Mix reached Rs.1364220.000 Millions (14.66% growth).

Ø Advances increased by Rs.101040.000 Millions (21.27%).

Ø Deposits grew by Rs.73390.000 Millions (10.27%).

Ø Share of Low Cost Deposits improved to over 40% from 38.52%

.

Ø Retail Credit grew by 29.05% and Share of Retail Credit in Non-Food Credit improved to 25% from 24%. Share of incremental Retail Credit in incremental Non-Food Credit stood at 31.38%.

Ø Priority Sector lending constituted 50.65% of Net Bank Credit and Agricultural Credit constituted 20.05% far SURPASSING national targets.

Ø Export Credit registered a growth of Rs.3980.000 Millions or 11.43%. Share of Export Credit to Net Bank Credit reached 10.96%.

Ø Book Value Per Share increased to Rs.82.93 from Rs.78.57.

Ø Investment Fluctuation Reserve at 6.05% against 5% stipulated.

Ø Key initiatives launched for expanding Product profile, diversifying Distribution Set up, Strengthening technology and improving process efficiency. Projects with consultancy assistance of Boston Consulting Group (BCG) in advanced stages.

Ø Major drive in International Operations involving big ramp-up of foreign presence, enhancement in product offerings and strong technology support.

DIVIDEND : The Board of Directors has declared a final dividend of 10% in addition to the Interim Dividend of 10%, taking the total Dividend to 20% for the year.

DETAILS

PROFIT

Ø Ø Operating Profit for F.Y. 2004-05 was Rs.14603.6 Millions, decline of Rs.7815.1 Millions, due mainly to decline in Profit from Sale of Securities.

Ø Ø Net Profit for F.Y. 2004-05 was at Rs.3400.5 Millions, decline of Rs.6682.7 Millions (Y-O-Y) due to reduced profit from Sale of Securities and increased one time provision on Investments. Bank derisked its portfolio by shifting Securities of Rs.135980.000 Millions to HTM category, thus immunising Investment portfolio against future shocks due to rise in market interest rates. Bank made a provision for depreciation of Rs.4745.8 Millions on account of transfer of these securities.

Ø Ø Net Profit (adjusted) excluding Sale of Securities and Provision for Investments improved by Rs.5496.5 Millions.

Ø Ø Net Interest Income for F.Y. 2004-05 improved by Rs.354.6 Millions (1.61%). While Interest Income improved by Rs.2356.3 Millions, Interest Expenses increased by Rs.2001.7 Millions.

Core Non-Interest Income (excluding Sale of Securities) registered good growth of 15.33% (Rs.1296.6

Millions

NON-PERFORMING ASSETS (NPA)

Gross NPA reduced by Rs.5780.000 Millions or 15.48% to Rs.31560.000 Millions from Rs.37340.000 Millions.

Net NPA declined by Rs.5070.000 Millions or 24.60% to Rs.15540.000 Millions from Rs.20610.000 Millions.

Gross NPA ratio declined to 5.48% from 7.86%.

Net NPA Ratio declined to 2.77% from 4.50%.

Ø Net NPA to Networth Ratio declined to 36.15% from 53.75%.

Ø All time high cash recovery of Rs.8040.000 Millions in NPA.

Ø Provision coverage ratio improved to 50.76% from 44.79%.

BALANCE SHEET STRENGTH

Ø Capital Adequacy Ratio stood at 11.52%.

Ø Bank’s Networth increased by Rs.2068.1 Millions or 5.39% to Rs.40421.5 Millions from Rs.38353.4

Millions

Ø Investment Fluctuation Reserve (IFR) stood at 6.05% (Rs.3220.000 Millions) of eligible securities, against stipulation of 5%.

PROFITABILITY RATIOS

Ø Cost of Deposits declined to 4.17% from 4.64%.

Ø Cost of Funds declined to 4.22% from 4.45%.

Ø Operating Expenses to Average Assets declined to 2.15% from 2.17%.

Ø Staff Cost to Average Assets declined to 1.41% from 1.45%.

SHAREHOLDER VALUE

Ø Book Value Per Share improved to Rs.82.93 from Rs.78.57.

BUSINESS GROWTH

DEPOSITS

Deposits grew by Rs.73390.000 Millions (10.27%) to Rs.788210.000 Millions from Rs.714820.000 Millions. Indian Deposits grew by Rs.55880.000 Millions (9.28%) to Rs.657820.000 Millions from Rs.601940.000 Millions. Foreign Deposits increased by Rs.17510.000 Millions (15.52%) to Rs.130400.000 Millions from Rs.112880.000 Millions.

ADVANCES

Advances (Gross) increased by Rs.101040.000 Millions (21.27%) to Rs.576010.000 Millions from Rs.474970.000 Millions. Indian Advances grew by Rs.79040.000 Millions (21.71%) to Rs.443100.000 Millions from Rs.364050.000 Millions. Foreign Advances grew by Rs.22000.000 Millions (19.83%) to Rs.132910.000 Millions from Rs.110910.000 Millions.

BUSINESS MIX

Business Mix reached Rs.1364220.000 Millions (14.66% growth) from Rs.1189790.000 Millions.

PRIORITY SECTOR CREDIT

Priority Sector Advances recorded strong growth of 26% and reached Rs.179300.000 Millions, constituting 50.65% of Net Bank Credit. Agriculture Advances increased by 32% and reached Rs.70970.000 Millions constituting 20.05% of Net Bank Credit. The Bank achieved disbursement level of Rs.33050.000 Millions in Agriculture advances, recording growth of over 33%, surpassing the target of 30% in this regard.

RETAIL CREDIT

Retail Credit grew robustly by Rs.24010.000 Millions (29.05%) and reached Rs.106650.000 Millions from Rs.82640.000 Millions. Share of Retail Credit in Non-Food Credit increased to 25% from 24%. Share of incremental Retail Credit in incremental Non-Food Credit stood at 31.38%.

EXPORT CREDIT

Ø Export Credit registered a growth of Rs.3980.000 Millions or 11.43%. Share of Export Credit to Net Bank Credit reached 10.96%.

QUALITATIVE PERFORMANCE

KEY STRATEGIC INITIATIVES

The Bank has launched key initiatives in areas of Products, Distribution, Technology, International Operations and Risk Management, aimed at strengthening customer relations, diversifying delivery channels, increasing international capabilities and services, and strengthening revenue streams from diversified sources.

KEY BUSINESS STRATEGY & PROCESS INITIATIVES

Ø Project under implementation for

Strategic Business Initiatives

Business Process Re-engineering With consultancy assistance from Boston Consultancy Group (BCG).

Ø Active Sales Model piloted. Plans to ramp up sales force to 1000 shortly for field level marketing and servicing.

Ø Focus on Retail and SMEs as growth areas.

Ø “Hub & Spoke” model being introduced for Retail, with sales force, to offer competitive service and reduce turn-around-time.

Ø SME niche being strengthened with organisation level changes for faster decisions, advisory services and diversified products- including Corporate linked finance and Cash Management.

Ø Organisation structure being revamped to increase customer focus – SBU structures being evolved for key business segments.

Ø Processes being re-engineered, including centralisation of activities.

IT INITIATIVES

Ø Bank is moving fast to strengthen IT infrastructure to Best in Class. 1200 branches to be networked by March 2006. 1400 remaining branches to be networked by December 2006 for purposes of MIS and limited transactions.

Ø 100% of Bank’s branches computerised.

Ø 128 branches are on Core Banking (CBS) mode. 750 branches will be under CBS by March 2006.

Ø 731 branches in 220 cities are networked under Multi-Branch Banking Project providing Anywhere Banking.

Ø Internet Banking introduced at 731 networked branches including transactions between accounts.

Ø Star e-pay, a new utility Electronic Payment Service introduced.

Ø 263 online ATMs of the Bank and about 12000 ATMs made available to customers including shared ATMs/VISA Network.

Ø SMS Banking, Tele-Banking available at 731 MBB branches.

Ø Information Kiosks with pass book printing facility installed at 59 branches and Kiosks with cheque deposit facility installed at 12 branches.

Ø 479 branches enabled for Online Tax Accounting System (OLTAS).

Ø RTGS/SFMS enabled in 88 branches.

Ø Hub set up at Singapore to NETWORK ALL FOREIGN BRANCHES.

BRANCH EXPANSION

Ø 34 branches and 24 extension counters opened during the year at potential centres increasing the number of branches in India to 2594 and extension counters to 165.

Ø West Lands branch opened at Nairobi (Kenya) taking the number of foreign branches/offices to 23.

CARD PRODUCTS

Ø Diversifying card offerings with attractive and friendly features.

Ø The Bank introduced International Credit Card in association with VISA International.

Ø Debit-cum-ATM Cards for students was introduced.

Ø Card business was revamped and revolving credit facility, reward points, photo option facility, pin enablement for use of ATMs, voice authorisation for cash advance, drop box facility for collection of cheques, customer care centre and toll free telephone facilities were introduced.

OTHER INTIATIVES

NEW PRODUCTS LAUNCHED

RETAIL AND SME

Ø To heighten service experience of higher-end customers, the Bank is introducing tierised offerings in its products. As part of the project, it introduced Diamond Saving Bank and Diamond Current Deposit accounts, as value-added products for high-end customers. Pilots already on in 4 cities.

Ø “Exporters’ Gold Card” introduced.

Ø “Star Channel Credit” introduced for supply chain financing for SME sector.

Ø “Star Holiday Loan”, introduced.

AGRICULTURE

Ø “Kisan Samadhan Card” introduced to meet comprehensive credit needs of farmers.

Ø “Bhoomiheen Kisan Card” introduced to provide short term production and consumption credit needs of tenant farmers, share croppers and oral lessees.

TREASURY

Ø Active in Derivatives marketing and Advisory services for Forex/interest Risk hedging to clients.

MARKETING

Ø Active Marketing adopted as key strategy.

Ø Created marketing teams at main centres and branches. Plan to increase marketing force to 1000.

ASSET RECONSTRUCTION COMPANY – ASREC

Ø Bank took equity participation in ASREC (India) Ltd., the Asset Reconstruction Company floated by UTI.

MULTI COMMODITY EXCHANGE

Ø Bank acquired equity stake in Multi Commodity Exchange of India Ltd. (MCX), and National Collateral Management Services Ltd. (of NCDEX).

Ø Bank is Clearing Bank for MCX and NCDEX.

ISO CERTIFICATION

Ø 27 branches certified under ISO 9001-2000. 250 branches are identified for ISO Certification.

OTHERS

Ø Ranked India’s Most Trusted Service Brand among all Nationalised Banks, consecutively for the Year 2004, by A.C.Nielsen ORG-MARG.

Ø Ranked 24^th among India’s Top 500 companies in the Year 2004 by Dun & Bradstreet, and 20^th by Forbes Magazine.

RISK MANAGEMENT

Ø Basel II preparedness: the Bank is fully prepared to comply with Basel II norms as per RBI guidelines. The Bank has also initiated steps to move over to Advanced approaches in due course.

Ø Major upgrade of Risk Management Systems including implementation of revamped and more granular Credit Rating Models developed by ICRA for migration to Basel II norms and adopting best risk management practices.

INTERNATIONAL FORAYS

EXPANSION

Bank is expanding overseas by upgrading in existing network as well as opening new branches. Bank is in the process of upgrading its Shenzen and Vietnam Representative Offices to Branch Offices. The Bank is also planning to open Rep.Offices in Doha and Beijing and has received RBI approval for opening branch at Antwerp (Belgium) and a wholly owned subsidiary at Dar-Es-Salaam (Tanzania). The Bank also has plans to open more branches in the SAARC Region, Africa and Europe.

SYNDICATION SERVICES

The Bank is active in investment market and loan syndication. We have also Co-lead Managed some of the syndication loans and bond issues and other services for Indian corporates. The credit derivatives and structured products is another area where our International division is active.

MTN PROGRAMME

Ø Bank has plans to raise USD 1 Billion through multi currency Medium Term Notes for its international operations.

PRODUCT OFFERINGS

Ø Offers wide range of products including Dual Currency Deposits, Back to Back options, Margin Trading, Syndication Services to meet diversified customer needs.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.91
UK Pound	1	Rs.84.72
Euro	1	Rs.57.92

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions