MIRA INFORM
REPORT
|
Report
Date : |
25.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
STATE BANK OF |
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|
|
Registered
Office : |
State Bank Bhawan, New Administrative
Building, |
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Country: |
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Financials
as on: |
31.03.2007 |
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Date
of Incorporation : |
1806 |
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|
Legal
Form : |
Subject is a public sector commercial bank
owned by the Government of India. The Bank's shares are listed on the Stock
Exchanges. |
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|
Line
of Business : |
Banking Activities. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD 1200000000 |
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|
Status
: |
Good |
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|
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|
Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is the country’s largest commercial bank – owned by the
Government of India. Available
information indicates high financial responsibility of the Bank. Payments are usually correct and as per
commitments. At per the law, Reserve Bank of The bank can be considered good for any normal
business dealings. |
LOCATIONS
|
Registered
Office : |
New Administrative Building, |
|
Tel.
No.: |
91-22-22022426/
2799 |
|
Fax
No.: |
91-22-22856370/
22852708/ 22040073 |
|
E-Mail
: |
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|
Website
: |
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Local
Boards : |
Located at : ·
Kolkata, ·
Mumbai, ·
Chennai, Tamilnadu ·
·
·
Ahmedabad, ·
·
·
·
Bhubaneshwar, Orissa ·
·
·
|
DIRECTORS
|
Name : |
Mr. O P Bhatt |
|
Designation
: |
Chairman |
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|
Name : |
Mr. K. Ashok Kini |
|
Designation
: |
Managing Director & Group Executive (National Banking) |
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|
Name : |
Shri T. S. Bhattacharya |
|
Designation
: |
Managing Director & Group Executive (Corporate
Banking) |
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|
Name : |
Shri A.G. Kalmankar |
|
Designation
: |
Deputy Managing Director & Group Executive
(International Banking) |
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|
Name : |
Shri S. K. Hariharan |
|
Designation
: |
Deputy Managing Director & Group Executive (Associates
& Subsidiaries) |
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|
Name : |
Shri R. N. Ramanathan |
|
Designation
: |
Deputy Managing Director (Information Technology) |
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|
Name : |
Shri Ashwini Kumar Sharma |
|
Designation
: |
Deputy Managing Director & Chief Financial Officer |
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|
Name : |
Shri P.K. Mitra |
|
Designation
: |
Deputy Managing Director (Inspection & Management
Audit) |
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|
Name : |
Shri Abhijit Datta |
|
Designation
: |
Deputy Managing Director & Corporate Development
Officer |
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|
Name : |
Ms. Ritu Anand |
|
Designation
: |
Deputy Managing Director & Chief Economic Advisor |
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|
Name : |
Shri Ashok Jhunjhunwala |
|
Designation
: |
Director |
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|
Name : |
Dr. I.G. Patel |
|
Designation
: |
Director |
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|
Name : |
Shri P.R. Khanna |
|
Designation
: |
Director |
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|
Name : |
Shri Suman Kumar Bery |
|
Designation
: |
Director |
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|
Name : |
Shri Ajay G. Piramal |
|
Designation
: |
Director |
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|
Name : |
Shri Ananta Chandra Kalita |
|
Designation
: |
Director |
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|
Name : |
Shri Arun Singh |
|
Designation
: |
Director |
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|
Name : |
Shri Rajiv Pandey |
|
Designation
: |
Director |
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|
Name : |
Shri Piyush Goyal |
|
Designation
: |
Director |
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|
Name : |
Smt. Shyamala Gopinath |
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Designation
: |
Nominee (RBI) |
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|
Name : |
Mr. Amar Pal |
|
Designation
: |
Director |
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|
Name : |
Mr. Vinod Rai |
|
Designation
: |
Nominee (Government) |
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|
Name : |
Mr. Deva Nand Balodhi |
|
Designation
: |
Director (Part time Non Official) |
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|
Name : |
Mr. Salahuddin Ansari |
|
Designation
: |
Director (Part time Non Official) |
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Membership
: |
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|
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|
Shri A.K.
Purwar |
Nil |
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|
Shri K. Ashok Kini |
Chairman - Customer Service
Committee Chairman - Special Committee of
Directors for monitoring large value Frauds Member - Audit Committee of the
Board Member - Risk Management Committee Member - Shareholders' /Investors' Grievance Committee |
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|
|
|
Shri T.S. Bhattacharya |
Member - Audit Committee of the
Board Member - Risk Management Committee Member - Shareholders' /
Investors' Grievance Committee |
|
Non-Executive
Directors |
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Shri K.P. Jhunjhunwala |
Chairman - Audit Committee of the
Board Member - Special Committee of
Directors for monitoring large value Frauds |
|
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|
Dr. I.G. Patel |
Nil |
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|
Shri PR. Khanna |
Chairman -
Shareholders'/Investors' Grievance Committee Member - Risk Management Committee Member - Customer Service
Committee |
|
|
|
|
Shri Surnan Kumar Bery |
Member - Risk Management Committee Member - Technology Committee |
|
|
|
|
Shri Ajay
G. Piramal |
Nil |
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|
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|
Shri A.C.
Kalita |
Nil |
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|
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|
Shri
Shantha Raju |
Nil |
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|
|
|
Shri Arun Singh |
Member - Special Committee of
Directors for monitoring large value Frauds Member - Customer Service
Committee |
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|
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|
Shri Rajiv Pandey |
Member - Shareholders'/Investors' Grievance Committee Member - Special Committee of
Directors For monitoring large value Frauds |
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|
|
|
Shri
Piyush Goyal |
Member - Audit Committee of the
Board Member - Spcial Committee of
Directors For monitoring large value Frauds Member - Technology Committee |
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|
Smt.
Shyamala Gopinath |
Member - Audit Committee of the
Board |
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Management
:-
|
|
|
Ahmedabad |
|
|
Shri Arun
Shandilya |
Chief General Manager (Ex-Officio) |
|
Shri
Rasiklal Nanchanddas Shah |
Member |
|
Dr. I. G. Patel |
Member |
|
Mr. B. J. Bhandutia |
Member |
|
Mr. Sanjay Dalsukhbhai Shah |
Member |
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|
Shri R.
Sridharan |
Chief General Manager (Ex-Officio) |
|
Mr. Madan Bindurao Desai |
Member |
|
Mr. Prabhakara Narasimha Nayak |
Member |
|
Mrs. Sudha Raju |
Member |
|
Ms. Priya Mascarenhas |
Member |
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|
Mr. S. Bhattarcharyya |
Chief General Manager (Ex-Officio) |
|
Mr. Chintamani Shukla |
Member |
|
Mrs. Madhuri Seth |
Member |
|
Mr. Anwar Jafri |
Member |
|
Mr. Shalabh Sharma |
Member |
|
Shri R.K.
Agarwal |
Member |
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|
Mr. V. S. G. Chandra Shekhar |
Chief General Manager (Ex-Officio) |
|
Mrs. Saveeta Mohanty |
Member |
|
Mr. Arun Kumar Sabat |
Member |
|
Mr. Shakti Ranjan Das |
Member |
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|
Shri H.G.
Contractor |
Chief General Manager (Ex-Officio) |
|
Mrs. Suman Kumar Agarwal |
Member |
|
Mrs. Sneh Mahajan |
Member |
|
Mr. Manmohan Lal Sarin |
Member |
|
Dr. |
Member |
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Chennai |
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|
Shri
Pratip Chaudhuri |
Chief General Manager (Ex-Officio) |
|
Mrs. Nalini Padmanabhan |
Member |
|
Mrs. J. Madana Gopal Rao |
Member |
|
Dr. A. Ramamurthy |
Member |
|
Dr. R. Vanniarajan |
Member |
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|
Mr. S. K. Bhattarcharya |
Chief General Manager (Ex-Officio) |
|
Mr. Pyda Krishn Mohan |
Member |
|
Mrs. Chilukuru Krishna Gopal |
Member |
|
Mrs. Karupothala Balakondaiah (IPS Retired) |
Member |
|
Mrs. Bethi Gopal Reddy |
Member |
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|
Shri |
Chief General Manager (Ex-Officio) |
|
Dr. Sabuj Koli Sen |
Member |
|
Dr. Geeta Chatterjee |
Member |
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|
Mr. P. Bhasyan |
Chief General Manager (Ex-Officio) |
|
Mr. Raj Kapoor |
Member |
|
Mr. Veer Bhadra Mishra |
Member |
|
Dr. Amrita Dass |
Member |
|
Dr. Prabhakara Jha |
Member |
|
Mr. Farida Abraham |
Member |
|
|
|
|
Mumbai |
|
|
Mr. A. Ramesh Kumar |
Chief General Manager (Ex-Officio) |
|
Mr. Ajay G. Piramal |
Member |
|
Mr. Piyush Goyal |
Member |
|
Dr. K. S. Parikh |
Member |
|
Mr. Prakash Dharshibhai Shah |
Member |
|
Mr. Bharat Maganlal Udeshi |
Member |
|
Mr. Jiten Parmananddas Mody |
Member |
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|
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|
Mr. B. K. Gairola |
Chief General Manager (Ex-Officio) |
|
Mr. P. R. Khanna |
Member |
|
Mr. S. K. Bery |
Member |
|
Mr. Arun Singh |
Member |
|
Mr. Rajiv Pandey |
Member |
|
Mr. Subhash Chandra Chawla |
Member |
|
Mr. Salamat Ullah |
Member |
|
Mr. Kuldeep Kumar Drabu |
Member |
|
|
|
|
North Eastern |
|
|
Shri P.B.
Lahiri |
Chief
General Manager (Ex-Officio) |
|
Shri Hari
Pd. Hazarika |
Member |
|
Mr. Dharani Pd. Hazarika |
Member |
|
Col. Manoranjan Goswami |
Member |
|
Ms. Zothanpari Hrashel |
Member |
|
Mr. Sanjoy Kumar Das |
Member |
|
|
|
|
|
|
|
Mr. Sitaramam Komaragirit |
Chief General Manager (Ex-Officio) |
|
Mr. K. P. Jhunjhunwala |
Member |
|
Mr. Sanjay Seth |
Member |
|
Mr. Vinay Kumar Kantha |
Member |
|
Mrs. Kishori Mohan Verma |
Member |
|
Mr. Badruzzamna Khan |
Member |
|
|
|
|
Kerala |
|
|
Shri
Deepak Chawla |
Chief General Manager (Ex-Officio) |
|
Mr. P. E. Balakrishna Menon |
Member |
|
Dr. N. Mohanakumaran |
Member |
|
Mrs. Chitra Devarajan |
Member |
|
Mr. K. Krishnananda Pai |
Member |
|
Mr. Rajiv Vasudevan |
Member |
|
Mr. K. P. S. Menon |
Member |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Reserve Bank of |
|
59.73 % |
|
Non-residents (FII’s/OCB’s/NRI’s/GDR’s) |
|
19.83 % |
|
Financial Institutions including Insurance Companies |
|
6.23 % |
|
Mutual Funds / UTI |
|
5.27 % |
|
Domestic Companies / Private Corporate Bodies / Trusts |
|
2.54 % |
|
Other including Resident Individuals |
|
6.40 % |
|
No of Shareholders (Rs. in millionss) |
|
0.525 |
BUSINESS DETAILS
|
Line
of Business : |
Banking Activities. |
|
|
|
GENERAL INFORMATION
|
|
|
|
Bankers
: |
Reserve Bank of |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors
: |
D P Sen And Company Chartered Accountants Khandelwal Jain and Company Chartered Accountants Jain Kapadia Associates Chartered Accountants |
|
|
|
|
Subsidiaries
: |
DOMESTIC BANKING SUBSIDIARIES Ř State Bank of Bikaner & Jaipur Ř State Bank of Ř State Bank of Ř State Bank of Ř State Bank of Ř State Bank of Saurashtra Ř State Bank of Travancore Ř SBI Commercial & International
Bank Limited DOMESTIC
NON-BANKING SUBSIDIARIES Ř SBI Factors & Commercial
Services Private. Limited Ř SBI Capital Markets Limited Ř SBI DFHI Limited Ř SBI Mutual Fund Trustee Company
Private. Limited FOREIGN SUBSIDIARIES Ř SBI International ( Ř State Bank of Ř State Bank of Ř Inmb Bank Limited |
|
|
|
|
Joint
Venture: |
Ř SBI Cards & Payments Services
Private. Limited Ř SBI Life Insurance Company Limited Ř Credit Information Bureau ( Ř GE Capital Business Process
Management Services Private Limited Ř Commercial Bank of Ř
SBI Funds Management Private Limited |
|
|
|
|
Associates: |
Ř Alaknanda Grarnin Bank Ř Arunachal Pradesh Rural Bank Ř Bastar Kshetriya Gramin Bank Ř Basti Gramin Bank Ř Bikaner Kshetriya Gramin Bank Ř Bilaspur Raipur Kshetriya Gramin
Bank Ř Bolangir Anchalik Gramya Bank Ř Bundelkhand Kshetriya Gramin Bank Ř Cauvery Grameena Bank Ř Damoh-Panna-Sagar Kshetriya Gramin
Bank Ř Ellaquai Dehati Bank Ř Ganga Yamuna Gramin Bank Ř Golconda Grameena Bank Ř Gorakhpur Kshetriya Gramin Bank Ř Jamnagar Rajkot Gramin Bank Ř Junagadh Amreli Grarnin Bank Ř Ka Bank Ř Kakathiya Grameena Bank Ř Kalahandi Anchalika Gramya Bank Ř Kalpatharu Grameena Bank Ř Koraput Panchabati Gramya Bank Ř Krishna Grameena Bank Ř Langpi Dehangi Rural Bank Ř Malwa Gramin Bank Ř Manjira Grameena Bank . Ř Marwar Gramin Bank Ř Mizoram Rural Bank Ř Nagaland Rural Bank • Ř Nagarjuna Grameena Bank Ř Palamau Kshetriya Gramin Bank Ř Parvatiya Gramin Bank Ř Pithoragarh Kshetriya Gramin Bank Ř Raigarh Kshetriya Gramin Bank Ř Samastipur Kshetriya Gramin Bank Ř Sangameshwara Grameena Bank Ř Santhal Parganas Gramin Bank Ř Shivpuri-Guna Kshetriya Grameena
Bank • Ř Sri Ganganagar Kshetriya Gramin
Bank Ř Sri Saraswathi Grameena Bank Ř Sri Sathavahana Grameena Bank Ř Sri Visakha Grameena Bank Ř Srirama Grameena Bank Ř Surendranagar Bhavnagar Gramin Bank Ř Vidisha Bhopal Kshetriya Gramin
Bank Ř SBI Home Finance Limited Ř Clearing Corporation of Ř Nepal SBI Bank Limited Ř Bank of Ř UTI Asset Management Company
Private. Limited Ř Asset Reconstruction Company ( (upto 15.10.2004) |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1000,000,000 |
Equity Shares
|
Rs.10/- each |
Rs. 10,000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
526,298,878 |
Equity Shares
|
Rs.10/- each |
Rs. 5,262.989 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millionss]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
5263.000 |
5263.000 |
5262.989 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
307722.600 |
271177.900 |
235458.370 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
312985.600 |
276440.900 |
240721.359 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1] Deposits |
4355210.900 |
3800460.600 |
3670475.265 |
|
|
2] Borrowings |
397033.300 |
306412.400 |
191843.136 |
|
TOTAL
BORROWING
|
4752244.200 |
4106873.000 |
3862318.401 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
5065229.800 |
4383313.900 |
4103039.760 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
28188.700 |
27529.300 |
26976.920 |
|
Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
1491488.800 |
1625342.400 |
1970979.102 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Cash & Balances with Reserve Bank of |
290764.300 |
216527.000
|
168103.299
|
|
|
Balance with Banks & Money at call & short notice |
228922.600 |
229073.000
|
225117.687
|
|
|
Other Current Assets
|
255332.000 |
225125.100
|
183907.112
|
|
|
Loans & Advances
|
3373364.900 |
2618009.400
|
2023744.547
|
Total Current Assets
|
4148383.800 |
3288734.500 |
2600872.645
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
602831.500 |
558292.300
|
495788.907 |
|
|
Provisions
|
0.000 |
0.000
|
0.000 |
Total Current Liabilities
|
602831.500 |
558292.300 |
495788.907
|
|
Net
Current Assets
|
3545552.300 |
2730442.200 |
2105083.738
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
5065229.800 |
4383313.900 |
4103039.760 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
394910.300 |
359795.700 |
324280.000 |
|
|
Other Income |
74989.400 |
75281.600 |
71217.300 |
|
|
Total
Income |
469899.700 |
435077.300 |
395497.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
45413.100 |
44066.700 |
43045.200 |
|
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
45413.100 |
44066.700 |
43045.200 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Operating Expenses |
234368.200 |
203904.500 |
184833.700 |
|
|
Interest |
234368.200 |
203904.500 |
184833.700 |
|
|
Other Expenditure |
54816.900 |
69509.600 |
66858.400 |
|
Total
Expenditure |
|
|
|
|
KEY
RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Credit
Deposit Ratio |
73.46 |
62.13 |
52.55 |
|
Investment
Deposit Ratio |
38.22 |
48.14 |
55.83 |
|
Cash
Deposit Ratio |
6.22 |
5.15 |
5.23 |
|
Interest
Expended/Interest Earned |
59.35 |
56.67 |
57.00 |
|
Other
Income/Total Income |
15.96 |
17.30 |
18.01 |
|
Operating
Expense/Total Income |
28.79 |
27.03 |
25.48 |
|
Interest
Income/Total Funds |
7.44 |
7.54 |
7.47 |
|
Interest
Expended /Total Funds |
4.42 |
4.27 |
4.26 |
|
Net
Interest Income/Total Funds |
3.03 |
3.27 |
3.21 |
|
Non
Interest Income/Total Funds |
1.41 |
1.58 |
1.64 |
|
Operating
Expense/Total Income |
2.55 |
2.46 |
2.32 |
|
Profit
Before Provisions/Total Funds |
1.89 |
2.38 |
2.53 |
|
Net
Profit/Total Funds |
0.86 |
0.92 |
0.99 |
|
Return On
Net Worth(%) |
15.41 |
17.04 |
19.43 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 1571.90 |
|
Low |
Rs. 1542.00 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
Subject is the largest commercial bank in
Subject was constituted through an Act of Parliament in May'55 to carry on the
business of banking and other business, and for the purpose of taking over the
undertaking of the Imperial Bank with effect from 1 Jul.'55.
Subject plays a vital role in providing working capital and term finance to the
Indian industry. Due to its large network of branches, SBI has been able to
garner a large chunk of deposits from the rural sector. It is also a leader in
the international banking business. SBI has eight business units namely, corporate
banking, international banking and domestic banking for concentrating on core
areas, associate banks division for looking after the working of these banks,
credit division to monitor the overall credit, and three other business
units-finance, corporate development and inspection for in-house work, to help
keep the mammoth organisation in order.
In October 1996 the Bank successfully floated the first GDR issue, by any
commercial bank in the country and raised US$ 369 millions, including the green
shoe option. The 'World Equity' journal adjudged the SBI GDR issue as the
'Asian Equity Issue of the Year' for its being a 'well-planned, well-priced and
well executed issue that continued to perform well for the investors'.
In the HRD area, a major event during 2000-01 was the implementation of a
voluntary retirement scheme, with the objective of improving the age and skill
profile of the staff in keeping with the Bank's business strategies. Around
21,000 employees, including officers, were permitted to retire. The bank spent
Rs 22712.4 millions as VRS compensation.
The Bank has crossed another milestone by making a successful foray into
insurance. SBI is the only Bank to have been permitted a 74% stake in the
insurance business. The Bank's insurance subsidiary, SBI Life Insurance
Company, a joint venture with the Bank holding 74% and Cardif S.A., the Joint
venture partner, the balance 26%, was incorporated to undertake life insurance
and pension business. Cardif
SBI Life launched its first product 'Sanjeevan' on the 15 June 2001. SBI Life
has introduced several Group Insurance Schemes including coverage for housing
loan borrowers and deposits account holders. With the required approvals
falling in place enabling SBI branches to handle insurance business, SBI Life's
Bancassurance products are expected to get a big boost and also bring
substantial non-interest income to the bank's branches
The bank's efforts to establish a world -class credit information bureau in
India culminated in the successful setting up of the Credit Information Bureau
(India) Limited, a joint venture of the Bank with HDFC Limited, Dun and
Bradstreet Information Services India Private Limited and Trans Union
International Inc.
In order to reduce risk and develop a transparent and active debt market in
general and Government securities market in particular, the Clearing Corporation
of India Limited has been set up in Mumbai with the Bank as the chief
promoter.
The Bank has an equity holding of 26% along with all
The bank has formalized all arrangements for its new technology platform for
branch operations, treasury business and risk management. Work is well underway
in all related projects including connectivity between 49 cities, which will be
achieved during the current year. The core banking software is under customization.
The bank launched its debit card viz. SBI Cash Plus. Customers can use it to
draw cash and do other transactions at the ATMs and also use it at merchant
establishments for paying their shopping bills. This facility is extended to
all SBI customers.
The operating profit of the bank has crossed the Rs.100000 millions mark which
was growing by over 15% in 2004-05.Despite the intense competition and pressure
on spreads, the bank recorded a net interest margin of 3.39% in 2004-05.The
capital adequecy ratio(CAR) is stood at 12.45% at the end of FY 2004-05.
Another significant landmark of the bank during 2004-05 was crossing of 5000
ATMs(together with bank's group) across the country.
Subject is the only bank in
Economic
Backdrop and Banking Environment :
The global economy grew at a higher pace of 5.4% in 2006, as compared to 4.9%
in 2005, as growth picked up in
The Indian economy witnessed robust growth for the fourth successive year. In
2006-07, the economy is estimated to have grown by 9.2%, building on 9.0%
growth in the previous year. There are many positive features to this growth,
which reinforce its solid foundations: the broad based nature of the growth
relying on domestic demand (both investment and consumer) and exports, as well
as the sectoral contribution, with manufacturing contributing to the strong
growth momentum, not just services. The only exception is the challenge of
agriculture. During 2006-07, the manufacturing sector grew by 12.3% against
growth of 9.1% a year ago. The services sector, which has been growing at 9%
since mid-1990s, is expected to continue to power the Indian economy, as it now
accounts for around three fifth of GDP. Within services, trade, hotels,
transport and communications and financial services recorded double-digit
growth for the last two years. Another positive feature underpinning the
current growth phase is the sharp rise in the rate of savings and investment in
recent years, with the rate of gross domestic investment having risen sharply
to 33.8% and the savings rate to 32.4% in 2005-06. Investment in general being
a forward looking variable, reflects a high degree of business optimism and
reinforces the outlook for growth.
Inflation remained a major concern during the year, with WPI inflation hovering
around 6.0% though it declined to 5.74% by 31st March 2007. CPI inflation
however, remained higher. With its roots in supply-side factors particularly
primary articles and manufactured goods, inflation was fuelled by buoyant
growth in broad money supply and bank credit.
Exports continued to show a healthy growth, rising by 20.9% during 2006-07,
building on 23.4% in 2005-06. Buoyancy of exports was driven by resurgence in
the manufacturing sector and sustained demand from major trading partners,
pushing
The overall stance of RBI's monetary policy was to check inflation while
ensuring adequate credit to support growing investment demand, curb credit
growth to sensitive sectors and maintain stability in financial markets
overall. During 2006-07, while the Bank Rate was kept unchanged, Cash Reserve
Ratio was raised by 100 bps. The Reverse Repo rate was raised by 25 bps to 6%
while the Repo Rate was raised on five occasions by 25 bps each to 7.75% from
6.50%. With rising inflation, interest rates across the board rose during the
fiscal year. The Prime Lending Rate (PLR) of major banks rose from 10.25-10.75%
on 31st March 2006 to 12.25-12.50% on 30th March 2007. In the same period,
deposit rate of major banks rose from 6.0-7.0% to 7.50-9.0% The rising lending
rates had a moderating impact on credit growth, which increased by 27.6% in
2006-07 against 30.8% in 2005-06. At the same time, the increase in deposit
rates had a favourable impact on deposit growth, which rose by 23.0% in 2006-07
against 18.1% in 2005-06. Consequently, the incremental CD ratio fell to 86%
from 110%.
The outlook for the current financial year is encouraging. Overall, the growth
momentum is expected to be sustained, with continuing credit and investment
demand from industry and services as well as agriculture, infrastructure and
retail sectors.
Financial Performance
Profit
The Operating Profit of the Bank for 2006-07 stood at Rs.99999.400 millions
(which is arrived at after reckoning amortization loss of Rs. 16775.100 millions
as compared to Rs.112992.300 millions) in 2005-06. It would appear that the
Operating Profit has declined sharply. However, if the Previous Year's figures
are regrouped on the lines of the Current Year, the Operating Profit for FY
2005-06 would stand revised to Rs. 82489.900 millions (after regrouping the
figures on the lines of the recent RBI Circular on treatment of amortization of
Rs.30502.400 millions) which would mean a growth of 21.23% in Operating Profit.
The Bank has posted a Net Profit of Rs. 45413.100 millions for 2006-07 as
compared to Rs. 44066.700 millions in 2005-06, registering a growth of
3.06%.
While Net Interest Income recorded a growth of 2.98% and Other Income increased
(on regrouped figures) by 31.57%, the gains made on the Income side were
largely offset by an increase of 14.94% in Interest Expended. However,
Operating Expenses remained controlled, with a marginal increase of
0.84%.
Net Interest
Income
The Net Interest Income of the Bank registered a growth of 2.98% from Rs.155891.300
millions in 2005-06 to Rs. 160542.100 millions in 2006-07. This was due to
growth in interest income on advances. The Net Interest Margin was at a healthy
3.31% in 2006-07.
The gross interest income from global operations rose from Rs. 359795.700 millions
to Rs. 394910.300 millions during the year. This was mainly due to higher
interest income on advances.
Interest income on advances in
Income from resources deployed in treasury operations in
Total interest expenses of global operations increased from Rs.203904.400 millions
in 2005-06 to Rs. 234368.200 millions in 2006-07. Interest expenses on deposits
in
Non-Interest Income
Non-interest income stood at Rs.57692.500 millions as against Rs.74352.000 millions
in 2005-06. However, in view of the RBI Circular on treatment of amortization,
the Non-Interest income in previous year stands revised to Rs.43849.600 millions,
resulting in a growth of 31.57%. Loss on revaluation of
Investment declined from Rs. 30502.400 millions in 2005-06 to Rs. 16775.100 millions
in 2006-07.
Operating
Expenses
There was a marginal decline of 2.34% in the Staff Cost from Rs.81230.400 millions
in 2005-06 to Rs.79325.800 millions in 2006-07. Staff Cost included an amount
of Rs.4783.000 millions (previous year Rs.722.400 millions) paid towards
Ex-gratia payment under Exit Option Scheme.
Other Operating Expenses have also registered an increase of 8.01% mainly due
to increase in expenses on rent, taxes and lighting, insurance, postage,
telegrams and telephones, repair and maintenance and miscellaneous
expenditure.
Operating Expenses, comprising both staff cost and other operating expenses,
have registered an increase of 0.84%.
Provisions and Contingencies
Major
amounts of provisions made in 2006-07 were as under:
* Rs. 3792.300 millions towards provision for depreciation on investments,
excluding amortization of premium on Held to Maturity' category (as against
Rs.38985.000 millions including amortization of premium on Held to Maturity'
category in 2005-06).
* Rs. 30146.100 millions towards Provision for Income Tax, including deferred
tax credit of Rs.198.300 millions (as against Rs.20406.000 millions in 2005-06
adjusted for deferred tax debit of Rs. 3578.900 millions).
* Rs. 885.000 millions towards Fringe Benefit Tax (as against 4580.000 millions
in 2005-06).
* Rs. 14295.000 millions (net of write-back) for nonperforming assets (as against
Rs. 1478.100 millions in 2005-06).
* Rs. 5891.900 millions towards Standard Assets (as against Rs. 4051.700 millions
in 2005-06). Including the current year's provision, the total provision held
on Standard Assets amounts to Rs. 15023.200 millions.
Reserves and Surplus
* An amount of Rs. 33581.100 millions (as against Rs. 29337.700 millions in
2005-06) was transferred to Statutory Reserves.
* An amount of Rs. 3211.500 millions (as against Rs. 6327.400 millions in
2005-06) was transferred to Other Reserves
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
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. 40.30 |
|
|
1 |
Rs. 82.97 |
|
Euro |
1 |
Rs. 55.64 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
73 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background
(20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
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 |