MIRA INFORM REPORT

 

 

Report Date :

08.06.2007

 

IDENTIFICATION DETAILS

 

Name :

CITIBANK N A

 

 

Registered Office :

Citibank Centre, Plot C-61, Bandra Kurla Complex, G-Block, Bandra (East), Mumbai - 400 051, Maharashtra,

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

1902

 

 

Legal Form :

It is a commercialized Bank.

 

 

Line of Business :

Subject is engaged in banking business.

 

 

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                       

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed Foreign Bank in India.  Fundamentals are strong and healthy.  Payments are reported as usually correct and as per commitments.

 

The Bank can be considered good for any normal business dealings.

 

 

LOCATIONS

 

Registered Office :

Citibank Centre, Plot C-61, Bandra Kurla Complex, G-Block, Bandra (East), Mumbai - 400 051, Maharashtra, India

Tel. No.:

91-22-653 5757 / 653 5750

E-Mail :

Info@citiweb.citicorp.com

Website :

http://www.citiweb.citicorp.com

 

 

Branches :

Located in all major cities in India

 

 

MANAGEMENT

 

Name :

Mr. Nanoo Pamnani      

Designation :

Chief Executive Officer - India

 

 

Name :

Mr. S. Venkatachalam

Designation :

Vice President

 

 

Name :

Mr. Abhijit Sen

Designation :

Vice President

 

 

Name :

Mr. Victor Menezes

Designation :

President

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in banking business.

 

 

GENERAL INFORMATION

 

No. of Employees :

1577

 

 

Bankers :

Reserve Bank of India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Bharat S. Raut & Company

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Memberships :

Confederation of Indian Industry

 

 

Associates/Subsidiaries :

Ř       Citicorp

 

 

 

 

 

CAPITAL STRUCTURE

 

Authorized Capital: Not Available

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

501360000

Equity Shares

Rs. 10.00 each

Rs. 5013.600

millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

.

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

5013.600

1674.600

1674.600

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

38457.400

31432.800

25284.200

4] Deposits

279117.400

214844.200

204651.300

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

322588.400

247951.600

231610.100

LOAN FUNDS

 

 

 

1] Secured Loans

81830.700

58032.000

35032.300

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

81830.700

58032.000

35032.300

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

404419.100

305983.600

266642.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

5543.600

5496.500

5135.600

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

105557.500

81198.500

66896.100

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Cash & Bank Balances with RBI
25281.800

23837.800

34971.800

 

Balance with Banks and money at call and short Notice
38034.900

23907.200

17107.300

 

Other Current Assets
35621.900

22902.300

19672.900

 

Loans & Advances
244552.800

181109.100

152591.200

Total Current Assets
343491.400

251756.400

224343.200

 
 

 

 

Less : CURRENT LIABILITIES & PROVISIONS
50173.400

32467.800

29732.500

Net Current Assets
293318.000

219288.600

194610.700

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

404419.100

305983.600

266642.400

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Interest Earned

30643.900

22027.000

22795.100

Other Income

11784.800

10544.000

8960.600

Total Income

42428.700

32571.000

31755.700

 

 

 

 

Profit/(Loss) Before Tax

7055.500

6000.300

5716.200

Provision for Taxation

0.000

0.000

0.000

Profit/(Loss) After Tax

7055.500

6000.300

5716.200

 

 

 

 

 

 

 

 

Expenditures :

 

 

 

 

Interest expended

10057.100

7520.900

9237.400

 

Operating Expenses

16600.600

13334.100

10095.400

 

Provisions and Contingencies

8715.500

5715.700

6706.700

Total Expenditure

35373.200

26570.700

26039.500

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

Credit Deposit Ratio

 
86.17

79.55

72.99

Investment Deposit Ratio

 
37.81

35.30

35.92

Cash Deposit Ratio

 
9.94

14.02

12.38

Interest Expended / Interest Earned

 
32.82

34.14

40.52

Other Income / Total Income

 
27.78

32.37

28.22

Operating Expenses / Total Income

 
39.13

40.94

31.79

Interest Income / Total Funds

 
7.76

6.97

8.35

Interest Expended / Total Funds

 
2.55

2.38

3.38

Net Interest Income / Total Funds

 
5.21

4.59

4.97

Non Interest Income / Total Funds

 
2.98

3.34

3.28

Operating Expenses / Total Income

 
4.20

4.22

3.70

Profit Before Provisions / Total Funds

 
3.99

3.71

4.55

Net Profit / Total Funds

 
1.79

1.90

2.09

Return on Net Worth

(%)
19.19

21.01

25.18

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Industry

 

Fiscal year 1997-98 saw some important changed in the Banking segment. The monetary policy for the first half of the current fiscal was to ensure two objectives – restrict inflation to six percent and offering credit at a cheaper rate.

 

The growth in the money supply has grown by 17.2 percent during 1997-98.

 

The credit off take continued to be low despite an improved liquidity position of the banking system. In the first quarter of 1997-98, the non-food credit declined by 1.8 percent. The situation improved marginally in the second quarter which saw a growth of 2.8%. In the fourth quarter of 1997-98, it went up to 11.3 percent.

 

The aggregate deposit has grown up from 16.5 percent in 1996-97 to 19.7 percent in 1997-98.

The operating profits of the scheduled commercial banks went up to over Rs. 6000.300 millions in 2004-05 from Rs.7055.500 millions in 2005-06

 

Subject is engaged in banking business.

 

During the year, the total income of the bank was Rs. 42428.700 millions as against Rs. 32571.000 millions in the year 2005-06.  The net profit was Rs. 7055.500 millions as against Rs. 6000.300 millions in the year 2005-06. 

 

The bank's deposits were Rs. 279117.400 millions as against Rs. 214844.200 millions in the year 2004-05 Advances also increased from Rs.  181109.100 millions in the year 2004-05 to Rs. 244552.800 millions.

 

The Bank's fixed assets of important value include land and building, vehicles, furniture, computer mainframe / hardware / software, etc.

 

India

 

INDIA, one of the oldest civilizations with a kaleidoscopic variety and rich cultural heritage. It ahs achieved multifaceted socio-economic progress during the last 53 years of its independence. India has become self-sufficient in agricultural production and is now the tenth industrialized country in the world and the sixth nation to have gone into outer space to conquer nature for the benefit of the people. It covers an area of 3, 287, 2631 sq.km. Extending from the snow-covered Himalayan heights to the tropical rain forests of the south. As the seventh largest country in the world, India stands apart from the rest of Asia, marked off as it is by mountains and ………..the sea, which give the country a distinct geographical entity. Bounded by the Great Himalayas in the north, it stretches southwards and at the Tropic of Cancer, tapers off into the Indian Ocean between the Bay of Bengal on the east and the Arabian Sea on the west.

 

Lying entirely in the northern hemisphere, the mainland extends between latitudes 8°4’ and 37°6’ north, longitudes 68°7’ and 97°25’ east and measures about 3,214 km from north to south between the extreme latitudes and about 2,933 km from east to west between the extreme longitudes. It has a land frontier of about 15,200 km. The total length of the coastline of the mainland, Lakshadweep Islands and Andaman & Nicobar Islands is 7,516.6 km.

 

The countries having a common border with India are Afghanistan and Pakistan to the north-west, China, Bhutan and Nepal to the north, Myanmar to the east and Bangladesh to the east of West Bengal. Sri Lanka is separated from India by a narrow channel of sea formed by the Palk Strait and the Gulf of Mannar.

 

Rivers in India may be classified as : (i) Himalayan rivers; (ii) Peninsular rivers; (iii) Coastal rivers and (iv) rivers of Inland drainage basins.

 

The climate in India may be broadly described as tropical monsoon type. There are four seasons: (i) Winter (January-February); (ii) Hot-weather Summer (March-May); (iii) Rainy South-Western Monsoon (June-September) and (iv) Post-Monsoon, also known as North-East Monsoon in the Southern Peninsula (October-December). India’s climate is affected by two seasonal winds – the north-east monsoon and the south-west monsoon. The north-east monsoon commonly known as winter monsoon blows from land to sea whereas south-west monsoon known as summer monsoon blows from sea to land after crossing the Indian Ocean, the Arabian Sea and the Bay of Bengal. The south-west monsoon brings most of the rainfall during the year in the country. It is now possible to make forecast about the monsoon rains successfully with developed models and trained manpower.

 

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. 40.98

UK Pound

1

Rs. 80.98

Euro

1

Rs. 54.99

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

8

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--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 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