MIRA
INFORM REPORT
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Report Date : |
14.05.2007 |
IDENTIFICATION DETAILS
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Name : |
INDUSIND BANK LIMITED |
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Registered Office : |
2401, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.01.1994 |
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Com. Reg. No.: |
76333 |
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CIN No.: [Company
Identification No.] |
L65191MH1994PLC076333 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMI06277F |
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PAN No.: [Permanent
Account No.] |
AAACI1314G |
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Legal Form : |
a Public Limited
Liability Bank. The banks shares are
listed on the Stock Exchanges. |
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Line of Business : |
Corporate Banking
Consisting of Working Capital Finance, Trade Service and Cash Management
Treasury. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed bank having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The bank can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
2401, |
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Tel. No.: |
91-9520-6343201 |
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Fax No.: |
91-9520-6343241 |
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E-Mail : |
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Website : |
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Corporate Office : |
701, Solitaire Corporate Park,
167 Guru Hargovindji Marg, Chakala, Andheri (East), Mumbai – 400093 |
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Tel. No.: |
91-22-66412200 |
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Fax No.: |
91-22-66412224 |
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E-Mail : |
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Website : |
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Retail Banking Division (Chennai) : |
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DIRECTORS
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Name : |
Mr. R. J. Shahaney |
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Designation : |
Chairman |
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Name : |
Dr. Ram Buxani |
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Designation : |
Director |
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Name : |
Mr. R. Sundararaman |
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Designation : |
Director |
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Date of Birth/Age : |
63 Years |
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Qualification : |
M.Com, CAIIB, Former Dy. |
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Experience : |
40 Years |
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Date of Appointment : |
30.10.2002 |
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Name of
companies in which director : |
Bangalore Stock Exchange Limited |
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Name : |
Mrs. Kanchan U. Chitale |
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Designation : |
Director |
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Date of Birth/Age : |
53 Years |
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Qualification : |
B.Com, FCA, Practising Chartered Accountant |
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Experience : |
29 Years |
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Date of Appointment : |
31.01.2003 |
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Name of
companies in which director : |
Harkan Management Consultancy Services Private Limited |
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Name : |
Mr. T. Anantha Narayanan |
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Designation : |
Director |
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Name : |
Dr. T. T. Ram Mohan |
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Designation : |
Director |
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Date of Birth/Age : |
52 Years |
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Qualification : |
B. Tech (NT Mumbai), PGDM (MM Calcutta) Ph. D ( Finance & Accounting, MM Ahmedabad |
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Experience : |
27 Years |
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Date of Appointment : |
16.01.2006 |
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Name of
companies in which director : |
1 . Brics Securities Limited 2. Gujarat Narmada Valley Fertilizers Company Limited 3. Marwar Hotels Limited 4. Rail Vikas Nigam Limited 5. International Asset Reconstruction Company Private Limited |
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Name : |
Mrs. Pallavi S. Shroff |
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Designation : |
Director |
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Date of Birth/Age : |
50 Years |
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Qualification : |
B.A. [Economics Hons.], M.M.S. LLB, Practising Lawyer |
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Experience : |
24 Years |
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Date of Appointment : |
13.06.2006 |
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Name of
companies in which director : |
1 . Abhishek Industries Limited 2. Juniper Hotels Private Limited 3. Kotak Mahindra Old Mutual Life Insurance Limited 4. BAG Films Limited 5. Maruti Udyog Limited |
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Name : |
Mr. Bhaskar Ghose |
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Designation : |
Managing Director |
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Name : |
Mr. S. Nagarajan |
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Designation : |
Joint Managing Director |
KEY EXECUTIVES
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Name : |
Mr. Suresh T. Viswanathan |
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Designation : |
Company Secretary |
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Name : |
Mr. S.V. Zaregaonkar |
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Designation : |
Exec. Vice President & CFO |
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Name : |
Mr. N. Suresh Pai |
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Designation : |
Exec. Vice President - Non-Finance Support Services |
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Name : |
Mr. J. Moses Harding |
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Designation : |
Exec. Vice President & Head - Wholesale Banking |
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Name : |
Mr. N. Sampath Kumar |
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Designation : |
Exec. Vice President - Retail Assets Division |
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Name : |
Mr. S.V. Parthasarathy |
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Designation : |
Exec. Vice President - Retail Operations |
SHAREHOLDING PATTERN
AS ON 30.12.2006
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Foreign |
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Bodies Corporate |
90999984 |
31.34 % |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
3555575 |
1.22 % |
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Financial Institutions / Banks |
1244594 |
0.43 % |
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Insurance Companies |
3475324 |
1.20 % |
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Foreign Institutional Investors |
50484596 |
17.39 % |
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Non-institutions |
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Bodies Corporate |
52616530 |
18.12 % |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.1 Millions |
54527149 |
18.78 % |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.1
Millions |
14673619 |
5.05 % |
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Any Other (specify) |
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i) Clearing member |
1126703 |
0.39 % |
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ii) Non-
Executive Directors |
680 |
0.00 % |
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iii) Non-
Executive Directors (Non-resident & Foreign national) |
255802 |
0.09 % |
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iv) Overseas Corporate Bodies |
6923719 |
2.38 % |
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v) Non Resident Indians |
10433361 |
3.59 % |
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Total |
290317636 |
100.00
% |
BUSINESS DETAILS
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Line of Business : |
Corporate Banking
Consisting of Working Capital Finance, Trade Service and Cash Management
Treasury. |
GENERAL INFORMATION
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Bankers : |
Reserve Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. R. Batliboi & Company Chartered Accountants |
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Address : |
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Associates : |
Ashley Holdings Limited Ashley Investments Limited Induslnd Information Technology Limited. Allfin Services & Solutions Private Limited Ashley Transport Services Private Limited Allfin Marketing Services Private Limited Allfin Insurance Specialities Private Limited Allfin Distribution Private Limited IBL Services & Solutions Private Limited |
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Subsidiaries : |
ALF Insurance Services Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40,00,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 4000.000 Millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29,03,17,636 |
Equity Shares |
Rs. 10/- each |
Rs. 2903.176
Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29,03,17,636 |
Equity Shares |
Rs. 10/- each |
Rs. 2903.176
Millions |
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Add :Forfeited |
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384200 |
Equity Shares |
Rs. 5/- each |
Rs. 1.921 Millions
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Total |
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Rs. 2905.097 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Capital
|
2905.097 |
2905.097 |
2904.200
|
|
Reserves
and Surplus |
5755.492 |
5387.315 |
5100.000
|
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Deposits
|
150063.014 |
131142.762 |
112002.600
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Borrowings
|
5349.498 |
6106.199 |
23103.500
|
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Other
Liabilities & Provisions |
12152.096 |
10678.679 |
7754.200
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TOTAL
|
176225.197 |
156220.052 |
150864.500 |
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Cash
& Balances with RBI |
6040.893 |
6360.839 |
13346.500
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Balances
with Banks & money at Call & Short Notice |
8764.150 |
5185.101 |
8363.400
|
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Investments
|
54099.043 |
40691.708 |
44827.600
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Advances
|
93104.622 |
89997.530 |
73011.500
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Fixed
Assets |
3395.879 |
3244.957 |
2983.900
|
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Other
Assets |
10820.610 |
10739.917 |
8331.600
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TOTAL
|
176225.197 |
156220.052 |
150864.500 |
PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Interest
Earned |
11882.800
|
11343.900
|
9861.500
|
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Other
Income |
2304.400
|
2570.800
|
3543.700
|
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TOTAL
|
14187.200
|
13914.700
|
13405.200
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Interest
expended |
8731.900
|
7188.900
|
6692.500
|
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Operating
Expenses |
3209.700
|
2713.500
|
2236.000
|
|
Provisions
& Contingencies |
1877.500
|
1910.800
|
1856.100
|
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TOTAL
|
13819.100
|
11813.200
|
10784.600
|
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Net
Profit for the year |
368.100
|
2101.500
|
2620.600
|
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Prior
Year Adjustments |
00.000
|
-46.300
|
00.000
|
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Profit
brought forward |
808.100
|
537.500
|
54.000
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
|
Sales
Turnover |
3338.200 |
3606.000 |
3793.200 |
|
Other
Income |
563.200 |
684.100 |
929.800 |
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Total
Income |
3901.400 |
4290.100 |
4723.000 |
|
Total
Expenditure |
1011.000 |
1056.700 |
1234.300 |
|
Operating
Profit |
2890.400 |
3233.400 |
3488.700 |
|
Interest |
2767.800 |
2948.500 |
3165.100 |
|
Gross
Profit |
122.600 |
284.900 |
323.600 |
|
Depreciation |
00.000 |
00.000 |
00.000 |
|
Tax |
42.500 |
113.100 |
107.300 |
|
Reported
PAT |
80.100 |
171.800 |
216.300 |
200606
Quarter 1 –
EPS is Basic & Diluted Status of Investor Complaints for
the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 167 Complaints disposed off
during the quarter 167 Complaints unresolved at the end of the quarter Nil 1.
The Bank has followed the same accounting policies in preparation of the
quarterly financial statements as those followed in the annual financial
statements for the year ended March 31, 2006, excepting valuation of money
market swaps where the swap cost is amortised over the maturity period of the
swap, which has no significant impact on the above results. 2. The working
results for the three months ended June 30, 2006 have been arrived at after
considering provision for standard assets, income-tax, non-performing assets
(NPAs), depreciation on investments and other usual and necessary provisions.
3. The above financial results for the quarter ended June 30, 2006 which were
subjected to 'Limited Review' by the Auditors of the Bank, were reviewed by the
Audit Committee and subsequently have been taken on record by the Board of
Directors at its meeting held on July 29, 2006. 4. Previous period figures have
been regrouped and reclassified where necessary to make them comparable with
the current quarter figures.
200609
Quarter 2 –
EPS is Basic & Diluted Status of Investor Complaints for
the quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 165 Complaints disposed off
during the quarter 165 Complaints unresolved at the end of the quarter Nil 1.
The Bank has followed the same accounting policies in preparation of the
quarterly financial statements as those followed in the annual financial
statements for the year ended March 31, 2006, excepting valuation of money
market swaps where the swap cost is amortised over the maturity period of the
swap, which has no significant impact on the above results. 2. The working
results for the six months September 30, 2006 have been arrived at after
considering provision for standard assets, non-performing assets, depreciation
on investments, income-tax and other usual and necessary provisions. 3. The
above financial results for the quarter ended September 30, 2006 which were
subjected to 'Limited Review' by the Auditors of the Bank, were reviewed by the
Audit Committee and subsequently have been taken on record by the Board of
Directors at its meeting held on October 31, 2006. 4. Previous period figures
have been regrouped and reclassified where necessary to make them comparable with
the current quarter figures.
200612
Quarter 3 –
EPS is Basic & Diluted Status of Investor Complaints for
the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter
Nil Complaints Received during the quarter 188 Complaints disposed off during
the quarter 188 Complaints unresolved at the end of the quarter Nil 1. The Bank
has followed the same accounting policies in preparation of the quarterly
financial statements as those followed in the annual financial statements for
the year ended March 31, 2006, excepting valuation of money market swaps where
the swap cost is amortised over the maturity period of the swap, which has no
significant impact on the above results. 2. The working results for the nine
months December 31, 2006 have been arrived at after considering provision for
standard assets, non-performing assets, depreciation on investments, income-tax
and other usual and necessary provisions. 3.The above financial results for the
quarter ended December 31, 2006 which were subjected to 'Limited Review' by the
Auditors of the Bank, were reviewed by the Audit Committee and subsequently
have been taken on record by the Board of Directors at its meeting held on January
29, 2007. 4.Previous period figures have been regrouped and reclassified where
necessary to make them comparable with the current quarter figures.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Credit
Deposit Ratio |
65.11 |
67.04 |
63.89 |
|
Investment
Deposit Ratio |
33.71 |
35.17 |
35.45 |
|
Cash
Deposit Ratio |
4.41 |
8.11 |
9.64 |
|
Interest
Expended/Interest Earned |
73.48 |
63.37 |
67.86 |
|
Other
Income/Total Income |
16.24 |
18.48 |
26.44 |
|
Operating
Expense/Total Income |
22.62 |
19.50 |
16.68 |
|
Interest
Income/Total Funds |
7.15 |
7.41 |
7.95 |
|
Interest
Expended /Total Funds |
5.25 |
4.69 |
5.39 |
|
Net
Interest Income/Total Funds |
1.90 |
2.71 |
2.55 |
|
Non
Interest Income/Total Funds |
1.39 |
1.68 |
2.86 |
|
Operating
Expense/Total Income |
1.93 |
1.77 |
1.80 |
|
Profit
Before Provisions/Total Funds |
1.35 |
2.62 |
3.61 |
|
Net
Profit/Total Funds |
0.22 |
1.37 |
2.11 |
|
Return
On Net Worth(%) |
4.34 |
26.96 |
41.15 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.48.00/- |
|
Low |
Rs.46.70/- |
LOCAL AGENCY FURTHER INFORMATION
History
IndusInd Bank (IBL) was incorporated in Jan. 1994. It was
promoted by IndusInd Enterprises and Finance (IEFL) and five
IBL started as a central forum through which the Non-Resident Indian community
could collectively contribute to
For the past several years, IBL has been sucessfully catering to the needs of a
discerning public. As a high-tech bank, it offers an entire gamut of banking
services tailored to meet the varying requirements. All the branches of the
bank are linked via V-SAT allowing customers instant access to all its
branches. This also helps the banks to offer various products such as
IndusReach (Anywhere Banking), IndusInstant (Instantaneous Electronic Transfer
of Funds), Access to Money (online access to ATM's countrywide) and Internet
Banking.
The bank has recently acquired clearing bank status for Mumbai Stock Exchange
apart from National & Kolkata Stock Exchange. More-over the bank has set up
a retail banking department to give a boost to the retail activities.
Further the board of directors of the bank in Feb. 2001 approved a scheme of
amalgamation of IEFL with the bank with effect from March 2001. SBI Capital
Markets Limited was appointed to conduct the feasibility study on the merger by
the company and based on their recommendation the merger was approved with
IEFL. Pursuant to the amalgamation the erstwhile shareholder of IEFL Limited is
to be given shares in the ratio of 1:1. During 2001-02 the bank has entered
into a money transfer agreement with Moneygram Internal Limited, Colorado USA.
Indusind Information Technology Limited became subsidiary of the bank. The bank
is taking steps to reduce its stake to 30% from the present holding of 80% as
per the RBI guidelines.
In May 2004, The High Court of Judicature at
As on 31st March 2005, the bank has 115 branches, 9 extention counters and 80
off-site ATMs and opened a new representative office at
Future Outlook
The year 2005-06 has mostly been spent in efforts to lay out a well-planned infrastructure.
Such efforts are still continuing and the Bank is now poised to reap the
benefits of this infrastructure. Moving ahead the Bank will retain its
leadership position in vehicle finance and will enlarge its role in business
segments like retail liabilities, retail assets (other than vehicle finance)
and corporate banking (especially relating to the SME sector).
The thrust will be on broad basing the retail deposit franchise and reducing
the overall cost of deposits, through aggressive and focused growth in low-cost
deposits (current accounts and savings bank accounts). For this purpose the
Bank will bring to the fore all its resources, like its vastly expanded branch
network, its impressive pan-India marketing set-up, the alternate channels like
ATMs, Internet Banking, etc. that it has so assiduously built up, the enhanced
customer base and the exciting opportunities for cross-selling and up-selling
that comes along with it, the array of new products and services that the Bank
has introduced and plans to introduce, etc.
The Bank has also increased its focus on fee-based income. Moving ahead the
Bank plans to ramp up non-interest income through carefully identified revenue
streams like foreign exchange business, investment banking, high-end treasury
products, distribution of third-party products like mutual funds and insurance,
international remittances, depository business, commodity business, bullion
operations, etc.
Tier II Capital
The Bank mobilised Rs. 2171.000 Millions (previous year Rs. 2680 Millions)
comprising of Tier II Bonds of Rs.1171.000 Millions and Upper Tier II Bonds of
Rs. 1000 Millions. These bonds qualify for classification as Tier II capital
for the purpose of working out Capital to Risk-weighted Assets Ratio (CRAR).
Capital Adequacy
The Capital to Risk-weighted Assets Ratio (CRAR) of the Bank as at March 31,
2006 was at a comfortable 10.54%, well above the regulatory minimum of 9%. Of
this, Tier I CRAR was 6.84%.
Awards and Achievements
The Directors have pleasure in placing before you the various distinctions
earned by the Bank during the year 2005-06.
* Rated as `The best among the top 10 private-sector banks' in a survey
covering 79 banks conducted by Business Standard in November 2005. Ranked sixth
in the overall list, the Bank was also identified the `Most Efficient Bank'
among all banks in
* '
* Presented `Outstanding Achiever of the Year 2005- Corporate' (Runner up-
Banking Technology Award) by IBA, Finacle (from Infosys) and TFCI (Trade Fair
and Conference International).
* Honoured with the `Award for Corporate Social Responsibility (CSR)' at the
MANAGEMENT DISCUSSION AND ANALYSIS
Macro Economic Scenario - National
Indian economy maintained its strong performance for the third successive year
during 2005-06, largely led by sustained growth in industry and services
sectors. According to the advance estimates of the Central Statistical
Organisation (CSO), real GDP growth accelerated from 7.5 per cent in 2004-05 to
8.1 per cent in 2005-06. The services sector, which recorded double-digit
growth for the second successive year, continued to be the major driver of
economic activity, contributing almost three-fourth of overall real GDP growth
during 2005-06. The growth in agricultural sector improved to 2.3%, compared to
0.7% in the preceding year.
Industrial production registered strong growth during 2005-06 on the back of
robust and broad-based manufacturing activity. CSO has estimated the growth in
industrial sector at 8.0 per cent in 2005-06 compared to 7.4 per cent in the
previous year. The manufacturing sector recorded a growth of 9.4 per cent in
2005-06 on top of 8.1 per cent rise in the preceding year. Strong and
continuing demand both on domestic and export fronts supported by positive
business and consumer confidence led to better capacity utilisation and
capacity expansion. Production of capital goods and consumer goods industries
showed substantial growth. However, the growth in the infrastructure industries
decelerated mainly due to decline in the production of crude petroleum and
deceleration in growth in finished steel and petroleum refinery products. The
intermediate goods sector witnessed a subdued performance largely on account of
negative growth in items such as yarn, finished leather, light diesel oil, LPG
cylinders, tin metal containers, spun pipes and T.V. picture tubes.
Growth in the services sector was substantial at 10.1 per cent (compared to
10.2 per cent a year ago,) mainly arising from robust growth in trade, hotels,
transport and communication, financing, insurance, real estate and business
services, and construction.
Macro Economic Scenario - Global
Despite higher oil prices and a number of natural disasters, economic activity
in the second half of 2005 and early 2006 was strong and inflationary pressures
remained subdued. While the
The current configuration of good growth, low inflation, abundant liquidity,
flat yield curves, lowering of credit risk premia and ever-expanding search for
yields has benefited many emerging market economies which have strengthened
their macrofundamentals.
The structure of Indian Banking Industry and recent developments
Banks in
Credit growth remained strong for the second successive year and outpaced
deposit growth. Bank credit registered a growth of 29.9% on top of the 27.9%
growth recorded in the previous year.
The gilt portfolio of commercial banks registered a decline of Rs.155620
Millions as on March 31, 2006 (y-o-y) in contrast to an increase of Rs.424730
Millions (net of the conversion effect) during the previous year. Consequently,
commercial banks' holding of Government securities declined to nearly 32 per
cent of their net demand and time liabilities (NDTL) as on March 31, 2006 from
around 38 per cent a year ago. Banks also liquidated their non-SLR investments
(i.e., investments in commercial papers, bonds and debentures) by Rs.128200
Millions.
Industry Outlook - Banking
So far banks have been able to finance the credit boom managing the capital
requirements deftly and have a CRAR of 12% that is considerably higher than the
8.0 % norm under
Recent guidelines of RBI, permitting banks to raise capital through instruments
like innovative perpetual debt instruments, debt capital instruments, perpetual
non-cumulative preference shares and redeemable cumulative preference shares,
and also allowing investments by SEBI registered Foreign Institutional
Investors and NRIs in the aforementioned debt instruments will help banks in
meeting additional capital requirements.
Corporate investment intentions as also the proposals for capital expenditure
indicate prospects of substantial growth and consolidation during 2006-07. The
growth in aggregate deposits is projected at around Rs.3300000 Millions in
2006-07. Nonfood bank credit including investments in bonds/debentures/shares
of public sector undertakings and private corporate sector and commercial paper
(CP) is expected to increase by around 20 per cent. It needs to be noted that
this projected growth of non-food credit implies a calibrated deceleration from
a growth of above 30 per cent, ruling currently.
Opportunities and Threats
Opportunities: Information technology has been the corner stone of recent
financial sector reforms aimed at increasing the speed and reliability of
financial operations and of initiatives to strengthen the banking sector.
Technological facilities are being used globally to supervise banks more
effectively and with greater intensity than ever before. Increasing emphasis is
being given to technology-aided, non-intrusive and focused supervision with a
view to prevent frauds and to nip in bud the origin of disturbances and
instabilities. Centralised Database Management System (CDBMS) and the
Enterprise Knowledge Management System provide the requisite decision making
capabilities at the desktop of officials.
As part of the initiative to strengthen the banking sector in the country, the
Reserve Bank has been actively promoting the establishment of a Credit
Information Bureau as a joint venture in private sector. This is another
attempt to exploit technology to monitor assets and to provide instantaneous
information on defaulters to the participants without getting into legal
hassles and thereby facilitating improvement of the non-performing asset
position of banks and financial institutions. The Vision Document for Payment
and Settlement Systems, 2005-2008 envisages establishment of an institutional
structure owned by banks and other financial institutions for retail payment
systems.
Retail thrust in banking business is a major opportunity for the Indian
financial sector in general and banks in particular. The vast potential of the
retail segment encompasses distribution of insurance and mutual funds products,
credit and debit cards, housing loans, personal finance solutions including
vehicle loans and the like.
Threats: Despite the fact that firewalls and other systemic access controls do
provide high levels of data security, the banking industry continues to face
threat to electronic data, which is vulnerable to unauthorised access and
consequent damage, destruction or pilferage.
In recent years, prevention of money laundering has assumed great significance
in international financial transactions. In this context, in November 2004 the
Reserve Bank revised the guidelines on `Know The Customer' (KYC) in line with
the recommendations made by the Financial Action Task Force (FATF) on standards
for Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT). The
need to understand and manage money laundering to safeguard reputation risk,
operational risk and legal risk to an organization has never been greater than
today.
Risks and containment measures
The persistence of global imbalances and high oil prices with a significant
permanent component does cause concern. Furthermore, credit growth has recently
been extremely strong possibly impacting credit quality, while money-supply is
overshooting the anticipated trajectory and strong investment demand coupled
with high oil prices is turning the current account surplus into a deficit,
though modest and manageable through normal capital flows. These developments
pose new challenges to maintaining price and financial stability while ensuring
momentum in growth. Consequently, several measures have been announced to
contain and manage the downside risks, in the Mid-Term Review of Annual Policy
Statement for the year 2005-06, released on October 25, 2005.
AS PER WEBSITE
Press Release
IndusInd
Bank raises US$ 33.825 million through Global Depository Receipts (GDRs)
Highlights
• GDR
issue opened on Friday March 23, 2007 and closed on Tuesday March 27, 2007
• US$ 33.825 mn raised
through IndusInd’s maiden GDR offering
• Each GDR representing 1 equity
share has been priced at US$ 1.147 per GDR
• Issue comprised 29,490,300 GDRs
• CLSA Singapore Pte.
Limited - Asia-Pacific Markets acted as the Lead Manager and Sole Bookrunner,
and Amas Bank (
Mumbai, March 30, 2007: IndusInd Bank Limited,
among the fast- growing new-generation private-sector banks in the country, has
successfully concluded its maiden offering of Global Depository Receipts. The
Finance Committee of the Board of Directors of the Bank at its meeting held
today allotted 29,490,300 equity shares of the Bank of Rs.10 each, fully paid,
under this offering.
Each equity share will be represented by one GDR of the Bank and
the price has been fixed at US$ 1.147 per GDR. CLSA
The GDRs amount raised, US $ 33.825 million, represents 9.22% of
the post-offer equity capital of the Bank, and will be listed on the Luxembourg
Stock Exchange.
Speaking on the occasion, Mr.
Bhaskar Ghose, Managing Director & CEO, IndusInd Bank,
said, “We are happy with the overwhelming and spontaneous response to our GDR
issue, particularly as we have been able to place the GDRs at a significant
premium to the current market price of the underlying equity shares. This is
our first equity issue after a gap of more than ten years. With the success of
our issue, the Bank has raised about Rs1470 Millions of new Tier I Capital -
which will improve our CRAR, besides creating enough room to raise further Tier
II capital. The enhanced capital will help us to meet our business growth
targets for the immediate future, besides enabling us to enter new lines of
activities including wealth management, insurance broking, the opening of an
OBU overseas, and asset reconstruction."
About IndusInd Bank
IndusInd Bank Limited, one of the leading new-generation
private-sector banks in
IndusInd Bank Offers an attractive interest rate slab, 10%
p.a for 100 days (10.5% p.a for senior citizens)
Mumbai, March 14, 2007: IndusInd Bank, a fast-growing new-generation private-sector bank announced 10%p.a. rate of interest for a period of 100 days on Domestic Term Deposits with effect from March 06, 2007. However, senior citizens (Age 60 years & above) will be eligible for an additional interest rate of 0.50% over and above the card rates. The Bank is also offering interest rate of 9.50% p.a. (10% p.a. for senior citizens) for deposits of 2 years and below 3 years.
The 100
days scheme is valid only for a short period till April 30, 2007.
About
IndusInd Bank
IndusInd Bank Limited, is one of the leading new-generation
private-sector banks in
Genesis
IndusInd
Bank derives its name and inspiration from the
Mr.
Srichand P. Hinduja, a leading Non-Resident Indian businessman and head of the Hinduja
Group, conceived the vision of IndusInd Bank - the first of the new-generation
private banks in
The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh, Honourable
Prime Minister of India who was then the country’s Finance Minister, started
with a capital base of Rs.1,000 million (USD 32 million at the prevailing
exchange rate), of which Rs.600 million was raised through private placement
from Indian Residents while the balance Rs.400 million (USD 13 million) was
contributed by Non-Resident Indians.
A NEW
ERA
The
merger with the Bank in June 2004 of Ashok Leyland Finance Limited, among the
largest leasing finance and hire purchase companies in
IndusInd
Bank’s broad lines of business include Corporate Banking, Retail Banking,
Treasury and Foreign Exchange, Investment Banking, Capital Markets,
Non-Resident Indian (NRI) / High Networth Individual (HNI) Banking, and
(through a subsidiary) Information Technology.
IndusInd
Bank provides multi-channel facilities including ATMs, Net Banking, Mobile
Banking, Phone Banking, Multi-city Banking and International Debit Cards.
It was one of the first banks to become a part of RBI’s Real Time Gross
Settlement (RTGS) system. It has implemented an enterprise-wide risk
management system encompassing global best practices in the area of Risk
Management, with help from KPMG. This has enabled the Bank to remain in
the forefront in complying with the requirements of Basel II. It is the
first bank in
With
its roots in Indian tradition and emphasis on customer care, IndusInd Bank’s
service philosophy is well reflected in the communication tagline “We Care… Dil
Se”.
|
Year |
Business Achievements |
|
|
|
|
2005-06 |
Ř
Ranked among the top ten banks in the country in the ET500 list
of leading companies in Ř
Rated as “The best among the top 10 private-sector banks” in a
survey covering 79 banks conducted by Business Standard in its November 2005
issue. Ranked sixth in the overall list, the Bank was also identified the
“Most Efficient Bank” among all banks in Ř
Bestowed “ Ř
Presented “Outstanding Achiever of the Year 2005- Corporate”
(Runner up- Banking Technology Award) by IBA, Finacle (from Infosys) and TFCI
(Trade Fair and Conference International). Ř
Honoured with the “Award for Corporate Social Responsibility
(CSR)” at the |
|
|
|
|
2004-05 |
Ř
Business Turnover crossed Rs. 220000 millions Ř
Network grew to 115 branches, 9 extension counters and 195 ATMs,
spread over 95 geographical locations. Ř
Bestowed with highest ratings for deposits from reputed
rating agencies §
Highest rating “P1+” - on Fixed Deposits from CRISIL §
Highest rating “P1+” - on Certificate of Deposits from
CRISIL §
Highest rating “F1+” - on Certificate of Deposits from
Fitch Ratings India Private Limited |
|
|
|
|
2003-04 |
Ř
Total business volume touches Rs. 19,0000 Millions. Ř
Completes 10 years of banking excellence. Ř
Ashok Leyland Finance merges with the Bank. Ř
The first Indian Commercial Bank to achieve certification for
its “Entire Network of Branches” under the ISO 9001:2000 Quality Management
System. Ř
Launch of Debit Card- International Power Card. Ř
Bank’s first International Representative Office in Ř
One of the first banks to go live on RTGS platform. |
|
|
|
|
2002-03 |
Ř
One of the first banks to implement the RBI- Electronic Funds
Transfer scheme. |
|
|
|
|
2001-02 |
Ř
Total business volume touches Rs. 14,0000 Millions. Highest
productivity in the Indian banking sector with Rs. 160 Millions of business
per employee. |
|
|
|
|
2000-01 |
Ř
Total business volume crosses Rs. 10,0000 Millions. |
|
|
|
|
1998-99 |
Ř
IndusInd again rated as one of the Top Performing Banks in
various survey reports, for the second year in succession. |
|
|
|
|
1997-98 |
Ř
IndusInd rated as one of the Top Performing Banks in various
survey reports. |
|
|
|
|
1996-97 |
Ř
Pioneer in launching Internet Banking |
|
|
|
|
1994-95 |
Ř
IndusInd Bank comes into existence. Completes first profitable
year of operations. |
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 records 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.40.84 |
|
|
1 |
Rs.80.73 |
|
Euro |
1 |
Rs.55.23 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
59 |
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 |
|