MIRA INFORM REPORT

 

 

Report Date :

25.07.2007

 

IDENTIFICATION DETAILS

 

Name :

STATE BANK OF PATIALA

 

 

Registered Office :

The Mall, Patiala

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

1917

 

 

Legal Form :

Public sector have owned by Government of India

 

 

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 :

 

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established State Bank of India group, commercial bank. Available information indicates high financial responsibility of the bank. Their trade relations are fair. Payments are correct and as per commitments.

 

The Bank can be regarded as a promising business partner is a medium to long-run.

 

 

LOCATIONS

 

Registered Office :

The Mall, Patiala, India

 

 

Branches :

Located At: Punjab, Haryana, Himachal Pradesh, Chandigarh, Rajasthan, J and K, New Delhi, Andhra Pradesh, Bihar, Gujarat, Karnataka, Maharashtra, Tamil Nadu, West Bengal, Uttar Pradesh, Madhya Pradesh, Goa and Uttaranchal

 

 

DIRECTORS

 

Name :

Mr. A. K. Purwar

Designation :

Chairman

Address :

State Bank of India, Central Office, Mumbai-400021

Tel. No.:

91-22-22022799 / 22022426

 

 

Name :

Mr. Yogesh Agarwal

Designation :

Managing Director

Address :

State Bank of Patiala Head Office Patiala - 147 001

Tel. No.:

91-175 - 2212010 / 2215682

Fax No.:

91-175 - 2214311

 

 

Name :

Mr. S. Chaudhuri

Designation :

General Manager

Address :

Reserve Bank Of India, 6, Parliament Street, P.B. No. 361 New Delhi - 110001

 

 

Name :

Mr. S. K. Hatiharan

Designation :

Dy. Managing Director & GE
(Associates & Subsidiaries Group)

Address :

State Bank of India Central Office, Madam Cama Road, MUMBAI - 400 021

Tel. No.:

91-22- 22022770 / 22874779

 

 

Name :

Mr. Jiban Goswami 

Designation :

General Manager
(Associate Banks)

Address :

State Bank of India, Central Office, MUMBAI - 400 021

Tel. No.:

91-22- 22883889 / 22028575

Fax No.:

91-22842713

 

 

Name :

Mr. Yashovardhan Sinha

Designation :

Dy. General Manager (Associate & Subsidiary) 

Address :

State Bank of India, A&S Group Corporate Centre, MUMBAI

 

 

Name :

Shri Harinder Pal Singh

Designation :

Workmen Director

Address :

State Bank of Patiala, Regional Office – II PATIALA - 147 001

Tel. No.:

91-175 - 2215935

 

 

Name :

Shri Amar Singh

Designation :

Officer Employee Director

Address :

State Bank of Patiala Head Office Patiala - 147 001

Tel. No.:

91-175 - 2201150 / 2215428

 

 

Name :

Shri Avtar Singh Dhindsa  

Address :

J - 26, Sarabha Nagar, Ludhiana - 141 001

Tel. No.:

91-161 - 2450903 / 2459903

 

 

Name :

Shri D.P. Bhardwaj   

Designation :

Under Secretary (Dev.)

Address :

Govt. Of India, Ministry Of Finance, Deptt. of Economic Affairs (Banking Division), "JEEVAN DEEP" Building, Sansad Marg, NEW DELHI - 110 001

Tel. No.:

91-11 - 23362708 / 23361571

 

 

Name :

Mr. O P Bhatt

Designation :

Chairman

 

 

Name :

Mr. A C Varma

Designation :

Managing Director

 

 

Name :

Mr. Y Vijayanand

Designation :

Director

 

 

Name :

Mr. S A Thimmiah

Designation :

Director

 

 

Name :

Mr. Amarjit Kaur

Designation :

Director

 

 

Name :

Mr. Sushil Gautam

Designation :

Director

 

 

Name :

Ms. Ashwani Kumar Gupta

Designation :

Director

 

 

BUSINESS DETAILS

 

Line of Business :

Banking Activities

 

 

GENERAL INFORMATION

 

Bankers :

Reserve Bank of India

 

 

 

Banking Relations :

Satisfactory

 

 

Associates/Subsidiaries :

State Bank of India

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

Not Available

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

24750000

Equity Shares

Rs. 10/- each

Rs. 247.500 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

 

 

 

 

Share Capital

247.500

247.500

247.500

Reserves & Surplus

24632.500

21816.300

20196.300

Deposits

391836.200

337777.100

264956.700

Borrowing

17414.900

12505.500

5596.500

Other Liabilities & Provisions

40475.800

41823.200

24030.900
 

 

 

 
TOTAL

474606.900

414169.600

315027.900
 

 

 

 
Cash & Balances with RBI

22167.800

15094.200

16689.500
Balances with Banks & money at Call & Short Notice

17250.600

16678.500

6745.700
Investments

123576.600

128617.800

123124.100
Advances

287697.600

221800.100

153592.700
Fixed Assets

1635.100

1728.200

1277.100
Other Assets

22279.200

30250.800

13598.800
 

 

 

 
TOTAL

474606.900

414169.600

315027.900

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Interest Earned

31701.500

24615.400

21332.300

Other Income

4491.600

3828.800

4575.600

TOTAL

3,6193.100

28444.200

25907.900

 

 

 

 

Interest expended

20596.300

14648.700

11569.600

Operating Expenses

7659.400

6153.900

5301.200

Provisions & Contingencies

4272.100

4610.500

6166.400

TOTAL

32527.800

25413.100

23037.200

 

 

 

 

Net Profit for the year

3665.300

3031.100

2870.700

 

KEY RATIOS

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Credit Deposit Ratio

69.83

62.28

58.09

Investment Deposit Ratio

34.31

41.77

47.83

Cash Deposit Ratio

5.11

5.27

5.63

Interest Expended/Interest Earned

64.97

59.51

54.24

Other Income/Total Income

12.41

13.46

17.66

Operating Expense/Total Income

21.16

21.63

20.46

Interest Income/Total Funds

7.15

6.75

7.31

Interest Expended /Total Funds

4.64

4.02

3.96

Net Interest Income/Total Funds

2.50

2.73

3.34

Non Interest Income/Total Funds

1.01

1.05

1.57

Operating Expense/Total Income

1.73

1.69

1.82

Profit Before Provisions/Total Funds

1.79

2.10

3.09

Net Profit/Total Funds

0.83

0.83

0.98

Return On Net Worth(%)

15.52

14.26

15.21

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

HISTORY

 

State Bank of Patiala (SBP), a subsidiary of the State Bank of India was founded on Diwali day in 1917 by Late His Excellence Bhupinder Singh the then Maharaja of erstwhile Patiala state. In those days, State Bank of Patiala was known as Patiala State Bank. The Bank was state owned and was setup for the exclusivet purpose of fostering growth of agriculture, trade and industry 

 
With the formation of the Patiala and east Punjab States Union (PEPSU) in 1948, the Bank was reorganized and brought under the control of Reserve Bank of India and was renamed as Bank of Patiala. On 1st April,1960 the Bank became a subsidiary of the State Bank of India and was renamed as the State Bank of Patiala.  

 
On 24th January 2003 State Bank of Patiala became the first fully computerised Public Sector Bank in the country. Today, the Bank is operating through a network of over 838 outlets (750 branches and 88 Ext. counters) in 17 States and one Union Territory.

 

PROFILE

 

The rich heritage of State Bank of Patiala dates back to the year 1917, when it was founded by Late His Highness Bhupinder Singh, Maharaja of erstwhile Patiala state, with one branch by the name of 'Chowk Fort, Patiala' to begin with. The Bank, then known as the 'Patiala State Bank' was state owned  and setup for the explicit purpose of fostering growth of agriculture, trade and industry. The constitution, scope and operations of the Bank underwent a sea change with the formation of the Patiala and east Punjab States Union (PEPSU) in 1948.The Bank was then reorganized and brought under the control of Reserve Bank of India. It was christened as the Bank of Patiala. Another milestone in history of the Bank was its becoming a subsidiary of the State Bank of India on 1st April,1960 when it was named as the State Bank of Patiala and since then it has grown significantly both in size and volume of business. During these glorious years, the Bank has been playing an important role in banking sphere.

Our bank has now added a golden chapter to its history by fully computerising all its  branches  on 24th January 2003 and became the first fully computerised Public Sector Bank in the country.

 

State Bank of Patiala was established on Diwali Day in 1917, by His Excellency Bhupinder Singh, Maharaja of the erstwhile Patiala state, with its first branch at Chowk Fort, Patiala. The Bank takes pride in the pivotal role during the last 85 years in the small business finance, professionals and for the upliftment of the living conditions of the oppressed and down-trodden strata of of society.

 

Today, the Bank is operating through a network of over 838 outlets (750 branches and 88 Ext. counters) in 17 States and one Union Territory. The total deposits of the Bank stood at Rs. 260530 millions and advances Rs. 158230 millions at the end of the March, 2005. The Bank is interconnecting its branches through SBI-Connect Network, V-SAT etc.

 

State Bank of Patiala has emerged as one of the two best banks in Public Sector banking industry which satisfy all the seven efficiency criteria laid down by working group headed Shri M.S. Verma, former Chairman of SBI, appointed by Govt. of India. The Bank has Capital Adequacy Ratio 14.21% against a benchmark of 9% without raising any capital from the market. The Bank has also maintained CD ratio of  60.73% and achieved benchmark of 46.18 % in priority sector advances and 18.85% in agricultural advances.

 

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.40.30

UK Pound

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

8

--CREDIT LINES

1~10

8

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

72

 

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 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

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