MIRA
INFORM REPORT
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Report Date : |
19.09.2007 |
IDENTIFICATION DETAILS
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Name : |
AXIS BANK |
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Formerly Known as : |
UTI BANK LIMITED |
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Registered Office : |
Trishul 3rd Floor Opp, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
03.12.1993 |
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Com. Reg. No.: |
020769 |
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CIN No.: [Company
Identification No.] |
L65110GJ1993PLC020769 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMU00075F |
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Legal Form : |
Public Limited Liability Bank. The Bank’s shares are listed on the stock exchanges |
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Line of Business : |
Subject is engaged in Banking Activities. |
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 fine track. The
bank is progressing well. 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. Fundamentals are strong and healthy. The bank can be considered normal for business dealings at usual trade
terms and conditions. The bank can be regarded as promising business partner in a medium to
long-run. |
LOCATIONS
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Registered Office : |
Trishul 3rd Floor Opp, |
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Tel. No.: |
91-79-2640 9322 |
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Fax No.: |
91-79-2640 9321 |
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E-Mail : |
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Website : |
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Corporate Office : |
Maker Tower’F’ 13th Floor, cuffe Parade, ColaBa, Mumbai;400
005, |
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Tel. No.: |
91-22-67074407 |
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Fax No.: |
91-22-22186944 / 1492 |
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Branches
Extension Counters : |
·
·
Ahmedabad, ·
Maninagar, ·
Vastrapur, ·
Gandhinagar, ·
Ahmednagar, ·
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Asansol, ·
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· Palwal, Haryana ·
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Banashankari, ·
Basaveshwarangar, ·
Rajajinagar, ·
Indira Nagar, ·
Jayanagar, ·
Chamarajapet, ·
Koramangala, ·
Yelahanka, ·
Baramati, ·
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· Berhampur, Ganjam, Orissa ·
· Bhilai, Chhatisgarh ·
· Bhubaneshwar, Orissa · Bilaspur, Chattisgarh · Bokaro, Jharkhand ·
Burdwan, ·
· Chennai, Tamilnadu · Mylpore, Chennai, Tamilnadu · Rajaji Salai, Chennai, Tamilnadu · Adyar, Chennai, Tamilnadu · Thiruvanmlyur, Chennai, Tamilnadu · Anna Nagar, Chennai, Tamilnadu · Perambur · Madipakkam, Chennai – 600 091, Tamilnadu · Tambaram, Chennai, Tamilnadu · Purasawalkam, Chennai, Tamilnadu · Rampuram, Chennai, Tamilnadu · T. Nagar, Chennai, Tamilnadu ·
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·
Bidanasi, · Dehraduan, Uttaranchal · Dhanbad, Jharkhand ·
Burdwan, · Erode, Tamilnadu ·
Kachch, · Sriganganagar, Rajasthan ·
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Mapusa, ·
Margao, ·
Panjim, ·
Vasco Da Gama, ·
· Gurgaon, Haryana ·
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· Hassan, Karnataka · Hubli, Karnataka ·
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Ashok Nagar, ·
Nampally, ·
Madhapur, ·
Humayun Nagar, · Secunderabad, Andhra Pradesh ·
Kapra, ·
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Vijay Nagar, · Dewas, Madhya Pradesh ·
· Jaipur, Madhya Pradesh · Tilak Nagar, Jaipur, Rajasthan ·
Jalandhar, ·
Jalgaon, · Jammu & Kashmir ·
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· Kannur, Kerala ·
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Kapurthala, · Karur, Tamilnadu ·
Ernakullam, ·
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Kolkata, ·
Baguliati, Kolkata, ·
Airport, Dum Dum, Kolkata, ·
24 Parganas, ·
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Hooghly, ·
Nabapally, ·
Madhyamgram, · Kottayam, Kerala ·
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Tehsil & District ·
Threeke, ·
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Malout, · Mangalore, Karnataka ·
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Mehsana, ·
Mohali, ·
Mumbai, ·
New Marine Lines, Mumbai, ·
Andheri, Mumbai, ·
Vile Parle, Mumbai, ·
Bandra, Mumbai, ·
Borivali, Mumbai, ·
Kandivli, Mumbai, ·
Chembur, Mumbai, ·
Dadar, Mumbai, ·
Ghatkopar, Mumbai, ·
Malad, Mumbai, ·
Mulund, Mumbai, ·
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Nariman Point, Mumbai, ·
Thane, ·
Worli, Mumbai, ·
Fort, Mumbai, ·
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Nabha, ·
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Nashik, ·
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Palam, ·
· Noida, Uttar Pradesh · Panchkula, Haryana · Ambala, Haryana ·
Panvel, ·
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Phagwara, ·
· Andaman & Nicobar Islands ·
Pune, ·
Chinchwad, Pune, ·
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· Rishikesh, Uttaranchal · Rohtak, Haryana · Rudrapur, Uttaranchal ·
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Sangli, ·
Satara, · Satna, Madhya Pradesh · Shimla, Himachal Pradesh ·
Jalpaiguri, · Sivakasi, Tamilnadu ·
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Anand, ·
Vashi, ·
Tamluk, · Thiruvananthapuram, Kerala · Thrissur, Kerala · Tiruchirapalli, Tamilnadu · Tuticorin, Tamilnadu · Udupi, Karnataka ·
Vadodara, ·
Bharuch, ·
Bharuch, ·
Nadlad, ·
Valsad, ·
Nalasopara, ·
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DIRECTORS
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Name : |
Mr. P. J. Nayak |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. S. Chatterjee |
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Designation : |
Executive Director |
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Name : |
Mr. Surendra Singh |
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Designation : |
Director |
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Name : |
Mr. N. C. Singhal |
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Designation : |
Director |
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Name : |
Mr. A. T. Pannir Selvam |
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Designation : |
Director |
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Name : |
Mr. J. R. Varma |
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Designation : |
Director |
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Name : |
Mr. R. H. Patil |
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Designation : |
Director |
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Name : |
Mr. Rama Bijapurkar |
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Designation : |
Director |
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Name : |
Mr. R. B. L. Vaish |
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Designation : |
Director |
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Name : |
Mr. S. B. Mathur |
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Designation : |
Director |
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Name : |
Mr. M. V. Subbiah |
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Designation : |
Director |
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Name : |
Mr. Ramesh Ramanathan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. R. Asok Kumar |
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Designation : |
President - Corporate Banking |
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Name : |
Mr. P.J. Oza |
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Designation : |
Company Secretary |
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Name : |
Mr. M. M. Agrawal |
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Designation : |
President - Capital Markets |
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Name : |
Mr. V. K. Ramani |
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Designation : |
President - Information Technology |
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Name : |
Mr. S. K. Chowdhury |
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Designation : |
President - Operations |
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Name : |
Mr. R. K. Niyogi |
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Designation : |
President - Inspection and Audit |
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Name : |
Mr. S. K. Chakrabarti |
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Designation : |
President - Projects and Planning |
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Name : |
Mr. Hemant Kaul |
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Designation : |
President - Retail Banking |
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Name : |
Mr. L. J. Fonseca |
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Designation : |
President - Support Services |
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Name : |
Mr. Somnath Sengupta |
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Designation : |
President - Finance & Accounts |
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Name : |
Mr. S.K. Nandi |
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Designation : |
President – Inspection and Audit |
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Name : |
Mr. P. Mukherjee |
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Designation : |
President – Treasury |
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Name : |
Mr. Vinod George |
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Designation : |
President – International Banking |
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Name : |
Mr. M. V. Subramanian |
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Designation : |
CEO and Executive Trustee, UTI Bank Foundation |
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Name : |
Mr. R. K. Bammi |
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Designation : |
President – North Zone |
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Name : |
Mr. S.S. Bajaj |
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Designation : |
President – West Zone |
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Name : |
Mr. C.P. Rangarajan |
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Designation : |
President – South Zone |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter
Shareholding |
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Administrator of the Specified Undertaking of the Unit
Trust of |
97224373 |
27.29 |
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Life Insurance Corporation of |
36783755 |
10.33 |
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General Insurance Corporation of |
18037120 |
5.06 |
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Total Promoter Shareholding – A |
152045248 |
42.68 |
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Non-Promoter
Holding |
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Indian Financial Institutions (IFIs) |
364084 |
0.10 |
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Mutual Fund |
27478088 |
7.71 |
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Others (Individuals/Corporate Bodies/HUF/Banks |
31087918 |
8.74 |
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Total Non-Promoter Indian Shareholding – B |
58930090 |
16.55 |
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Foreign
Shareholding |
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23718589 |
6.66 |
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Foreign Financial Institutions (FIIs) |
120673398 |
33.88 |
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NRIs/OCBs/FBCs |
856674 |
0.23 |
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Total Non-Promoter Foreign Shareholding – C |
145248661 |
40.77 |
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Total A+ B + C |
356223999 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in Banking Activities. |
GENERAL INFORMATION
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No. of Employees : |
3447 |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S.R. Batliboi and Company Chartered Accountant |
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Subsidiaries : |
ł
UBL Sales Limited ł
UBL Asset Management Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300000000 |
Equity Shares |
Rs.10/- each |
Rs.3000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
281630787 |
Equity Shares |
Rs.10/- each |
Rs.2816.308
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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LIABILITIES |
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Capital |
2816.308 |
2786.907 |
2737.964 |
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Reserves & Surplus |
31115.981 |
25934.957 |
21343.882 |
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Employee’s Stock Options Outstanding |
89.783 |
134.394 |
134.173 |
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Deposits |
587856.011 |
401135.313 |
317120.001 |
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Borrowings |
51956.030 |
26809.318 |
17814.115 |
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Other Liabilities and Provisions |
58738.042 |
40510.278 |
18286.773 |
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GRAND TOTAL
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732572.155 |
497311.167 |
377436.908 |
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ASSETS |
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Cash & Balances with RBI |
46610.303 |
24293.964 |
34487.411 |
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Balances with Banks and money at Call & Short Notice |
22572.748 |
12124.458 |
10541.953 |
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Investments |
268971.603 |
215273.513 |
150480.194 |
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Advances |
368764.832 |
223142.304 |
156029.219 |
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Fixed Assets |
6731.941 |
5677.131 |
5184.358 |
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Other Assets |
18920.728 |
16799.797 |
20713.773 |
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GRAND TOTAL
|
732572.155 |
497311.167 |
377436.908 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
45604.038 |
28887.904 |
23399.778 |
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Other Income |
10101.113 |
7296.344 |
0.000 |
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Total Income |
55705.151 |
36184.248 |
23399.778 |
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Profit/(Loss) Before Tax |
6590.283 |
4850.837 |
3345.777 |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
6590.283 |
4850.837 |
3345.777 |
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Expenditures : |
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Interest |
29933.172 |
18105.560 |
11929.808 |
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Operating Expenses |
12145.984 |
8140.507 |
5813.789 |
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Provisions
& Contingencies
|
7035.712 |
5087.344 |
2310.404 |
|
Total Expenditure |
49114.868 |
31333.411 |
20054.001 |
|
QUARTERLY
|
PARTICULARS |
|
|
30.06.2007 1st
Quarter |
|
Type |
|
|
|
|
Sales Turnover |
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|
15369.700 |
|
Other Income |
|
|
3423.200 |
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Total Income |
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|
18792.900 |
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Total Expenditure |
|
|
5221.200 |
|
Operating Profit |
|
|
13571.700 |
|
Interest |
|
|
10901.400 |
|
Gross Profit |
|
|
2670.300 |
|
Depreciation |
|
|
0.000 |
|
Tax |
|
|
920.500 |
|
Reported PAT |
|
|
1749.800 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Credit Deposit Ratio |
59.85 |
52.79 |
47.40 |
|
Investment Deposit Ratio |
48.96 |
50.92 |
43.37 |
|
Cash Deposit Ratio |
7.17 |
8.18 |
13.72 |
|
Interest Expended/Interest Earned |
65.64 |
62.68 |
62.00 |
|
Other Income/Total Income |
18.18 |
20.21 |
18.38 |
|
Operating Expense/Total Income |
21.84 |
22.53 |
25.24 |
|
Interest Income/Total Funds |
7.41 |
6.60 |
6.21 |
|
Interest Expended /Total Funds |
4.86 |
4.13 |
3.85 |
|
Net Interest Income/Total Funds |
2.55 |
2.46 |
2.36 |
|
Non Interest Income/Total Funds |
1.65 |
1.67 |
1.40 |
|
Operating Expense/Total Income |
1.98 |
1.86 |
1.92 |
|
Profit Before Provisions/Total Funds |
2.21 |
2.27 |
1.84 |
|
Net Profit/Total Funds |
1.07 |
1.11 |
1.08 |
|
Return On Net Worth(%) |
21.04 |
18.37 |
18.88 |
LOCAL AGENCY FURTHER INFORMATION
History
UTI Bank (UTIBK) is been
promoted by Unit Trust of India (UTI), Life Insurance Corporation of India (LIC),
General Insurance Corporation of India (GIC), and its four subsidiaries. It was
incorporated in December 1993, and was among the few banks to be granted a
license under the new guidelines issued in 1993 to carry on banking business in
The bank has restructured its business into four strategic profit centres
Corporate, Retail, Merchant & Treasury Banking. Though liberalization and
reforms have throw up few challenges, it has also created opportunities for
banks to increase revenues by diversifying into Investment banking, Insurance,
Credit Cards, Mortgage Financing, Depository services and more.
The bank has already taken control of UTI's collection centres at many
cities. This will provide the bank with a good amount of float. Moreover the
bank is acting as a clearing house for NSE and has also tied-up with companies
in e-commerce.
Recently the banks entire technology backbone has been revamped and the
distributed database has been replaced by a state of the art centralized
The bank along with Global Trust Bank (GTB), had a merger proposal in Jan
2001 to create the largest private sector bank in swap ratio of 9 shares of UTI
Bank for 4 shares of GTB. Since submitting the merger application, many issues
have appeared in the media. Which forced both the banks to withdraw the merger
proposal.
During 2001-02, the Bank raised Rs 1575.900 millions by making a preferential
allotment of 4,63,50,000 equity shares at a price of Rs 340.000 per share to
the South Asia Regional Fund and CDC Financial Services (Mauritius). The Bank
further raised Rs 529.200 millions by making an additional Preferential
allotment of 1,35,59,700 equity shares at a price of Rs 39.04 per share to Life
Insurance Corporation of India, General Insurance Corporation, New India
Assurance Company and National Insurance Company. With this the shareholding of
the UTI has come down from 61% to 42%.
It has also made a preferential allotment in 2002-03 to the extent of
3,83,62,834 equity shares @ of Rs.42.75 per share to LIC,Citicorp Banking
Corporation,Chryscapital I,LLC,Mauritius and KVB Ltd.
The bank has launched pre-paid Dollar denominated card which is useful
for outbound travellers and has tied up with 14 major full-fledged
moneychangers to market the cards. It is also palnning to laaunch the Euro and
Pound Sterling variants.
The bank is the first private sector bank to be authorised for collection
of Commercial Taxes in twin cities of Hyderabad & Secunderabad.
The bank was authorised to handle Government transactions from October
2003 for collection of Government taxes, to handle the expenditure related
payments of Central Government Ministries and Departments and pension payments on
behalf of Civil and Non-civil Ministries such as defence, posts, telecom and
railways. Further the bank also provide mobile banking services and mobile
refill facilities for Airtel,Hutch,
The bank has won award 'Oustanding Achievement Award' for the year 2005 from
Indian Banks Association for IT Infrastructure, delivery Capabilities and
innovative solutions.
In 2007, the bank has opened 153 new branches. This includes 43 extension
counters that have been upgraded to branches and the setting up of 8 Service
branches/CPCs. The Bank has opened four new overseas offices, with branches at
The bank has changed its name from UTI Bank Ltd to Axis Bank Ltd with
effect from July 30, 2007.
Director’s Report:
Both business and earnings continued to display high growth
in 2006-07 and the Bank earned a net profit of Rs.6590.300 millions against Rs.
4850.800 millions in the previous year, registering a growth of 35.86%. The
total income of the Bank increased by 53.95% to Rs. 55705.200 millions from Rs.
36184.200 millions last year, while the operating profit rose by 37.11% to Rs.
13626.000 millions from Rs. 998.100 millions last year. This increase in
operating profit was driven principally by an increase in the net interest
income by 45.34% to Rs. 1567.800 millions, and by an increase in fee and other
income by 38.44% to Rs. 10101.100 millions, and was partly offset by an
increase in operating expenses including depreciation by 49.20% to Rs.
12145.900 millions over the year.
As stated, the overall performance during the year was characterised by a
rise in core income streams such as net interest income and fee income.
During
the year, the net interest income grew by 45.34% to Rs. 15670.800 millions from
Rs. 10782.300 millions last year, mainly due to the increase in average earning
assets on a daily average basis by 41.56% to Rs. 535910.000 millions from Rs.
378570.000 millions last year. This increase in interest earnings was partly
offset by the pressure on margins with a pronounced hardening of rates on term
deposits in the second half of the year. However, the growth in demand deposits
aided the increase in net interest income, which grew (on a daily average
basis) by 60.34% to Rs. 162520.000 millions from Rs. 101360.000 millions the
previous year, helping to contain the cost of funds. The daily average cost of
funds in 2006-07 increased to 5.60% from 4.94% the previous year. During the
same period, the cost of deposits increased to 5.38% from 4.80% the previous
year, primarily the result of a rise in the cost of term deposits by 120 basis
points
During
the year, the net interest margin increased by 7 basis points to 2.92% from
2.85% in 2005-06. A reason for the improvement in the net interest margin was
the improvement in the yield on assets by 90 basis points to 8.48%. The
improvement in the yield on assets was partly offset by an increase in the cost
of funds by 66 basis points, although concentrated efforts in maximizing the
share of demand deposits in total deposits helped absorb the upward pressure on
the cost of funds and the consequent squeeze on margins. On a
quarter-to-quarter basis, the net interest margin during 2006-07 increased from
2.68% in Q1, to 2.92% in Q2, 3.00% in Q3 and 3.06% in Q4, highlighting a
generally strong trend in the growth of net interest income.
Other income comprising trading profits, fee and miscellaneous income rose by
38.44% to Rs. 10101.100 millions in 2006-07 from Rs. 7296.300 millions. While
fee and miscellaneous income rose by 60.72% to Rs. 8243.900 millions from
Rs.5129.400 millions, a decline in trading profits by 14.29% to Rs. 1857.200
millions from Rs. 216.69 millions last year resulted in the somewhat slower
growth of other income. The decrease in trading profits during the year was
mainly on account of adverse market conditions in the debt markets, offset to a
great extent by a very strong growth in fee income, the main contributors to
which were service, account-maintenance and transaction charges, interchange
income, third party distribution fee and processing fees earned on loans.
The operating revenue of the Bank rose by 42.55% to Rs. 25771.900
millions from Rs.18078.600 millions last year. The core income streams (net
interest income and fees) now constitute 92.79% of the operating revenue of the
Bank, compared to 88.01% last year. The operating expenses increased from Rs.
814.05 millions in 2005-06 to Rs. 12145.009 millions, with an aggressive growth
of the Bank's retail network, both domestic and overseas and the infrastructure
required to support the growing businesses. Employees' costs increased by
58.76% to Rs. 381350.000 millions from Rs. 2402.000 millions, constituting
31.40% of the operating expenses, largely prompted by the increase in the
number of employees from 6,553 on 31 March 2006 to 9,980 on 31 March 2007.
During the year, the Bank implemented the revised Accounting Standard 15 on
Employee Benefits.
During the year, the Bank created total provisions (excluding provisions
for tax) of Rs. 3663.600 millions against Rs. 2625.200 millions the previous
year.
The
increase in provisions is on account of higher provisioning requirements for
standard assets in accordance with RBI guidelines. The Bank has made provisions
for loan assets of Rs. 737.300 millions as against Rs.127.06 millions the
previous year, while provision for standard assets has increased significantly
to Rs. 122350.000 millions from Rs. 446.800 millions, pursuant to the change in
provisioning requirements for standard assets from 0.40% to 1% for housing
loans exceeding Rs. 2.000 millions and 2% for personal loans, exposures to
capital markets, real estate, non deposit-taking systemically important NBFCs
and credit card receivables, as notified by RBI. The Bank continued to improve
its asset quality, as a result of which net NPAs, as a percentage of net
customer assets, declined substantially from 0.75% as on 31 March 2006 to 0.61%
as on 31 March 2007.
The
Bank has provided Rs. 987.500 millions for amortisation of premium on
securities held under the HTM category of investments.
The
return on average net worth rose to 21.84% in 2006-07 from 18.44% in 2005-06.
The Bank's basic earnings per share increased from Rs. 174.500 to Rs. 23.50
millions while diluted earnings per share were Rs. 22.79 as compared to Rs.
17.08 in 2005-06. The book value per share rose from Rs. 1030.600 millions as
on 31 March 2006 to Rs. 1205.000 as on 31 March 2007. The business per employee
marginally improved to Rs. 102.400 millions from Rs. 1.2.000 millions last
year.
Profit
per employee has decreased from Rs.0. 869 millions in 2005-06 to Rs. 0.759
millions, due to the large number of branches opened in the last quarter of the
year and the consequential increase in the number of employees.
The Bank has also shown a substantial growth in several key balance sheet
parameters for the year ended 31 March 2007. The Bank's total assets increased
by 47.31% from Rs. 49,731.12 millions as on 31 March 2006 to Rs.732572.200
millions as on 31 March 2007. Total deposits increased by 46.55% from
Rs.401135.300 millions as on 31 March 2006 to Rs. 587856.000 millions.
Savings
bank account deposits grew by 50.34% to Rs. 121258.800 millions, while current
account deposits grew by 41.83% to Rs. 113043.100 millions. Savings bank and
current account deposits together constituted 39.86% of total deposits as on 31
March 2007. The total advances of the Bank increased during the year by 65.26%
from Rs. 223142.300 millions to Rs. 368764.800 millions. Of this, corporate
loans, comprising large corporates, midcorporates, SME, and agriculture
lending, increased by 76.62% from Rs.158243.000 millions to Rs. 279489.400
millions, while retail loans increased by 37.56% from Rs. 64899.300 millions to
Rs. 89275.400 millions. The total investments of the Bank increased by 24.94%
from Rs. 215273.500 millions to Rs. 268971.600 millions. While investments in
government and approved securities held to meet the Bank's SLR requirement
increased by 39.35% from Rs.117898.000 millions to Rs. 164296.700 millions,
other investments, including corporate debt securities, increased marginally by
7.50% from Rs.97375.500 millions to Rs. 104674.900 millions. The Bank has built
total assets of Rs.31771.200 millions at its overseas offices.
During
2006-07, the Bank has continued to expand its distribution network, in both
domestic and overseas geographies, to enlarge its reach and accelerate the
business growth momentum. This has helped the Bank particularly in the
acquisition of low-cost retail deposits, retail assets; and lending to
agriculture, SME and mid-corporates. During the year, 153 new branches were
added to the Bank's network taking the number of branches to 508. This includes
43 extension counters that have been upgraded to branches and the setting up of
8 Service branches/CPCs. As on 31 March 2007, the Bank had a network of 508
branches and 53 extension counters as against 355 branches and 95 extension
counters at the beginning of the year. One extension counter was also opened
during the year. Of the 508 branches, 123 branches are in semi-urban and rural
areas. With the opening of these offices, the geographical reach of the Bank
extends to 29 States and 3
MANAGEMENT DISCUSSION AND
ANALYSIS:
MACRO-ECONOMIC ENVIRONMENT:
While
macro-economic fundamentals have generally been strong in 2006-07, inflation,
largely due to supply-side constraints, had become an overriding concern in the
closing months of fiscal 2006-07. The GDP is expected to show a growth of 9.2%
for the fiscal 2006-07 against 9% last fiscal year.
Agriculture
and allied sectors are expected to grow at a rate of 2.7% in 2006-07, while
industrial production is expected to grow by about 10%. The growth in
industrial production was driven mainly by the manufacturing sector, which grew
by 11.3% in 2006-07 following a growth of 9.1% in the previous fiscal. The
momentum of growth in the services sector continued with a growth of 11.2% in
fiscal 2006-07. Among the three sub-sectors of services, 'trade, hotels,
transport and communication services' has continued to boost the sector by
growing at double-digit rates for the fourth successive year.
Inflation,
with its roots in supply-side factors, was accompanied by buoyant growth of
money and credit in the last two years. Starting with a rate of 3.98%, the rate
of inflation in 2006-07 has been on a generally upward trend with intermittent
falls. However, average inflation during 2006-07 remained at 5%, with
continuing fiscal and monetary policy interventions aimed at controlling price
levels. Liquidity conditions remained fairly comfortable up to early September
2006. With year-on-year inflation stubbornly above 5% in the second half of the
year, RBI announced further measures to stem inflationary expectations and also
to contain the credit growth that put pressure on the liquidity position,
thereby hardening interest rates in the economy.
Growth
trends were accompanied by robustness of overall macro-economic fundamentals,
particularly with tangible progress towards fiscal consolidation and a strong
balance of payments position. With an upsurge in investment, the outlook is
distinctly upbeat. However, the major challenges lie in taking macro-economic
level corrective action to tackle the supply side constraints to keep inflation
at an acceptable level. Interest rates have already shown signs of hardening,
which may affect further investments in the industrial sector. In order to
maintain the GDP growth over 9% in the coming years, the major challenge lies in
balancing of current pace of growth with non-accelerating inflation. The
current policy measures adopted by monetary authorities to tighten liquidity in
order to fight inflation led to an increase in interest rates, which could slow
down economic growth in the coming year, particularly in respect of
infrastructure and other core sector projects.
Against
the backdrop of generally strong economic fundamentals in the last year, the
banking system seems to have done well during 2006-07, relected in the growth
of business in the form of aggregate deposits and advances.
In
terms of the Weekly Statistical Supplement published by RBI, the aggregate
deposits of All Scheduled Commercial Banks (ASCB) as on 30 March 2007 have
grown by 24.27% from 31 March 2006, while bairk credit has grown by 28.51%.
However, there continue to be areas of concern, primarily hardening interest
rates that may result in pressure upon the net interest margins. The continuing
rise in interest rates may make various projects economically unviable,
resulting in higher NPAs and also affect valuations.
Lastly,
the sharp increase in provisions on standard assets will impact the
profitability of banks.
OVERVIEW OF FINANCIAL AND BUSINESS
PERFORMANCE:
During
the year 2006-07, the Bank has witnessed a strong growth in business volumes as
well as profits, with the net profit increasing by 35.86% to Rs.6590.300
millions from Rs. 4850.800millions the previous year. The total income of the
Bank rose by 53.95% to Rs. 55705.200 millions from Rs. 36184.200 millions the
previous year. During the same period, the operating revenue increased by
42.55% to Rs. 25771.900 millions, while operating profit increased by 37.11% to
Rs. 13626.000 millions. On 31 March 2007, the Bank's total assets increased by
47.31 % to Rs. 732570.000 millions. The total deposits of the Bank grew by
46.55% to Rs. 587860.00 millions, while the total advances grew by 65.26% to
Rs.368760.000 millions. The total demand deposits (savings bank and current
account deposits) have increased by 46.11% to Rs. 234301.900 millions,
constituting 39.86% of total deposits. The Bank has increased its market share
of aggregate deposits in All Scheduled Commercial Banks (ASCB), which rose from
1.76% as on 31 March 2006 to 2.08% on 30 March 2007, while its share of
advances rose from 1.50% to 1.78% during the same period. In the financial year
2006-07, the Bank's incremental market share of aggregate deposits in ASCB was
3.39% while its incremental share in advances was 2.75%. The solid performance
of the Bank despite higher provisioning on standard assets, increase in risk
weights on select asset classes, reduction on interest paid on CRR and a
hardening of interest rates due to tightening of the overall liquidity
situation underscores the efficacy of the business model adopted by the
Bank.
The
Bank continued to enhance shareholder value and the diluted earnings per share
for the year 2006-07 increased to Rs. 22.79 from Rs. 17.08 the previous year. As
on 31 March 2007, the book value per share of the Bank has increased to
Rs.120.50 from Rs.103.06 as on 31 March 2006.
The
Bank will continue to derive benefit from the infrastructure created over the
years and will continue to pursue a strategy of profitable growth through
stronger corporate relationships and an accelerated retail customer expansion
programme driven by the Bank's multiple channels. In 2007-08, the Bank's
strategy will continue to revolve around further increasing its market-share in
the expanding financial services industry and to become an International Bank
with a pan-Asia presence. The Bank will continue to emphasise growth
opportunities through higher levels of customer satisfaction and loyalty, and
deepening relationships with existing customers. It seeks to maintain and
enhance a strong retail and corporate franchise, strengthen the structures and
delivery channels for increasing SME and agricultural businesses, exploit
cross-sell opportunities, offer private banking for high-networth customers,
consolidate new business initiatives such as Credit Cards, Wealth Management
and Bancassurance fox Life Insurance, and encash opportunities through overseas
offices fox cross-border trade finance, syndication of debt and NRI business
development.
The
Bank will continue to focus on high-quality earnings growth through an emphasis
on core income streams such as NII and fee-based income and on maintaining a
high standard of asset quality by providing emphasis on rigorous
risk-management practices. The Bank will continue to use technology extensively
to maintain competitive advantage and continue to up-grade the technology
platform to provide leverage for bringing in higher cost efficiencies.
PREPAREDNESS
FOR IMPLEMENTATION OF THE
In the Mid-Term Review of Monetary Policy in October 2006, RBI had
decided to defer the implementation of Basel II by a year and all Indian banks
with a presence outside
BUSINESS OVERVIEW:
The performance of individual business segments during 2006-07 and
their future strategies are presented below:
RETAIL BANKING:
The Bank maintained its focus on product differentiation and a
customer-centric vision that resulted in a substantial growth in retail banking
business during 2006-07. Savings Bank deposits grew by 50.34% to Rs.121258.800
millions on 31 March 2007 from Rs. 80654.400 millions in the previous year.
This growth was possible mainly due to the Bank's differential thrust on
disparate customer segments, resulting in strong customer acquisition. This is
evident from the growth across various customer segments indicated in the
following table.
The Bank has always focused on innovation and
differentiation. In this direction, during the year, the Bank has opened
specialised Priority Banking branches for the high networth customer segment.
Priority Banking branches have been conceived as a single stop shop for
affluent customers, catering to all their banking and investment needs, and the
Bank is the first to launch such a concept in India. These branches are
exclusive boutique banking branches with a plush ambience catering to high
networth individuals that takes the Priority Banking product to an experiential
level, offering service in a discreet manner while maintaining comfort and
confidentiality for the customers. During 2006-07, three such branches were
opened in the cities of Pune, Mumbai and Kolkata, with plans to open more such
branches at other urban centers in 2007-08.
The Bank is very sensitive to the privacy of its customers and does not engage
in unsolicited tele-calling. In this regard, the Bank has taken proactive
measures to seek positive customer consent on cross-selling initiatives. The
Bank launched project 'Sampark', which involves meeting customers face-to-face
at branch locations, or outside ATMs and seeking their written consent for
cross-selling initiatives. The project is an intensive logistical exercise and
by end-March 2007, 8 lacs customer consents have been acquired. This gives the
Bank a fully compliant internal database for cross-sell initiatives such as for
investment advisory services and insurance products. This will facilitate in
boosting the fee income from cross-sell of various products.
In its constant endeavour to provide convenience to its customers, the Bank has
been aggressively developing its alternative banking channels, namely the ATM
network, Internet Banking and Mobile Banking. These channels have received
overwhelming response from its customers with registration and transaction
figures increasing substantially over the previous year. During the year, the Bank
added 450 ATMs, thereby taking the network size to 2,341 on 31 March 2007. The
Bank offers access to its customers to over 19,000 ATMs across the country
through bilateral and multilateral ATM sharing arrangements. Beginning 2001,
the Bank had identified the ATM channel as a strong tool for customer
acquisition and convenience. At 4.70 ATMs per branch, the Bank has the highest
ATM to branch ratio in the country. The high ATM to branch ratio has been part
of the growth strategy and has been a major factor in the high growth of
savings bank deposits accounts and balances. Continuing with its efforts in
providing the utmost in convenience and safety to its customers, the Bank has
promoted its mobile banking services to enable customers to access their accounts
on their mobile phones. The service also sends out specific transaction alerts
on the mobile phones of registered customers, informing the customer of the
activity in the account, thereby giving an added level of safety to the
customer. The mobile channel has found increasing acceptance among the Bank's
customers. During the financial year, 40% of the incremental customers signed
on for mobile banking services. With 1.10 million customers registered for
mobile banking, the Bank has among the highest mobile registration penetration
levels among bank customers. The Bank is uniquely poised to take advantage of
the growth of mobile commerce in the country. On the Internet Banking front,
the registered user base of the Bank rose from 1.89 million accounts as on 31
March 2006 to 3.35 million accounts as on 31 March 2007. To give the customers
a more reliable service, the Internet Banking platform was revamped in the
current year. To counter phishing attacks on their customers, the Bank has
introduced an added security measure whereby the customer has to enter certain
additional details from his debit card number in addition to his Login
Identification and password for conducting a financial transaction.
The Bank has set up a Call Centre, available 24/7, providing assistance in 11
languages. The Call Centre as of March 2007 handled over 20,000 calls per
day.
With 508 branches, 53 extension counters, 2,341 ATMs, 3.35 million internet
banking customers and 1.10 million mobile registered customers, the Bank provides
one of the best networks in the country with real time online access to it
customers.
On the retail assets front, for the larger part of the year, retail and
consumer lending continued its growth, in spite of the rising interest costs.
However, the last quarter saw signs of a slow-down, owing to rising property
prices and interest rates. For the Bank, the year-on-year growth, in business
terms, was 38%, growing from Rs. 6,490 millions on 31 March 2006 to Rs. 8,928
millions as on 31 March 2007. This constituted 24.21% of the Bank's total loan
portfolio as on 31 March 2007. The Retail Asset Centre (RAC) network of the
Bank also grew from 43 to 67 in 2006-07. During the year under review, the Bank
successfully launched its auto loans product and it expects to carve out a
significant share in the passenger car financing market in 2007-08. The rise in
interest rates in the economy may provoke a certain amount of stress on the
portfolio and the Bank is gearing up its machinery to pre-empt any slippage
from their present standards, insofar as loan losses are concerned.
The Bank further consolidated its position in the Cards business in the country
during the year. The Bank today offers a wide array of payment solutions to its
customers by way of Debit Cards, Credit Cards, Pre-paid Cards, Cards Acceptance
Service and the Internet Payment Gateway. As on 31 March 2007, the total debit
card base of the Bank stood at 6 million. The Bank has the third largest debit
card portfolio in the country. From the initial one-size-fits-all debit card
product, the Bank now offers as many as 7 variants, customized for specific
liability customer segments: the Gold Debit Card for the high spenders and the
Business Debit Card for current account and SME segment customers launched this
year, has found very good acceptance. The Bank also offers travel currency
cards in 5 currencies as a convenient alternative to the travellers' cheques.
The Bank also offers Rewards Card, targeted at corporate requirements where
recurring payments are required to be made to employees, agents and
distributors towards their commissions and incentives. During the year, the
Bank launched the Annuity Card, the Meal Card and the Gift Card. The Annuity
Card is a co-branded pre-paid card in association with the Life Insurance
Corporation of
The Bank entered the merchant acquiring business in December 2003 and as on 31
March 2007, the Bank had installed over 40,000 Electronic Data Capture (EDC)
machines against 21,084 in the previous year. The terminals installed by the
Bank are capable of accepting all Debit/Credit MasterCard/ Visa cards &
American Express Cards. These terminals come equipped with state-of-the-art
technology and have now been enabled for processing smart cards as well. The
Bank also offers an Internet Payment Gateway for accepting credit and debit
cards on the internet, and is a leading player in e-commerce. The Bank has a
significant presence in electronic payment systems of the country and is a
major beneficiary of the increasing number of transactions migrating from cash
to electronic forms of payment.
One of the focus areas for the Bank during the financial year under review was
the distribution of third party products, with a special thrust on mutual funds
and Bancassurance. While the Bank consolidated its position in the sales of
mutual funds and general insurance during the year, from December 2006 it also
started distributing life insurance products through its widespread branch
network. The Bank's launch of its life insurance product, in association with
MetLife
The year also saw the launch of the On-Line Trading product of the Bank for
retail customers. The response to the product has been very positive.
Wealth Advisory Services for high networth customers of the Bank were launched
during the year in review. Offering a clear product and service advantage, the
service is offering wealth advisory for direct equities, mutual funds,
insurance, real estate and other value added products.
Financial Advisory Services (FAS) for the mass affluent and affluent customers
expanded its value added services by providing the customers a single page
snapshot of their complete relationship with the Bank including bank balances,
deposits, depository holdings marked-to-market, mutual fund investments made
through the Bank marked-to- market, RBI Bonds purchased through the Bank and
loans taken through the Bank. While the assets under management grew by over
100% during the year, the number of customers for FAS also increased by over
50%.
In the last few years, most of the retail segments of the Bank have grown
at more than 50% YOY In order to continue a similar growth pattern in the years
to come, the Bank has identified its existing customer base a crucial
determinant of future profitability. A key driver of revenue growth and
profitability of the Bank in future will be its ability to maximize customer
value by effectively marketing additional products and services to existing
customers. The Bank has started a separate 'Customer Analytics & Cross
Sell' function under Retail Banking to ensure that cross sell is implemented
efficiently. The group has to ensure the integrity, accuracy and completeness
of customer data, oversee effective customer lead generation (through data
mining and analytics), devise a lead tracking mechanism and monitor the leads
across channels and various customer touch points made available by the
Bank.
CORPORATE BANKING:
Corporate Banking business of the Bank provides quality
products to large and mid-sized clients. The products include credit, trade
finance for domestic as well as international transactions, structured finance,
project finance and syndication services.
The Bank continues to pursue a two-pronged strategy of widening the customer
base as well as deepening existing client relationships. Careful choice of new
customers based on appropriate risk-return guidelines forms the basis for the
strategy of widening the customer base. The deepening of existing client
relationships is achieved by a careful account strategy focusing on increasing
the cross-sell of various corporate banking products, as also products from
other divisions of the Bank including investment banking and retail
products.
During the year, large corporate advances grew by 76% to Rs. 163460.000
millions from Rs. 92860.00 millions in the previous year. The Bank took steps
to focus on fee income mainly from trade finance facilities and document
handling. This method of fee generation is stable and sustaining. Given the
increasing overseas presence of the Bank, the trade finance business is set to
grow significantly over the coming years. The Bank takes selective exposure to
project financing in areas of infrastructure as well as manufacturing projects
set up by reputed industry groups. It constantly works to upgrade its skills in
financial structuring to be able to continue providing value to its corporate
customers.
The overseas presence has enabled the Bank to leverage its existing
relationships further by granting loans towards ECBs by Indian corporates as
well as to enable acquisition financing. The Bank has also contributed towards
financing infrastructure projects and other forms of project finance through
its overseas branches. Channel finance also grew on the back of strong
corporate demand. The centralised Channel Finance Hub continued to deliver
seamless service to various channel finance customers.
Syndication and underwriting of corporate debt also increased in volumes and
resulted in rising fee income. Corporate Banking increased its focus on Risk
Management and on improving portfolio quality. The identification, measurement,
monitoring, management and pricing of client risk are the key activities that
enable all corporate banking business. The Bank has in place procedures and
practices to ensure regular updation of risks taken by the Bank on various
client accounts. Portfolio diversification remains the key for managing asset quality
and preventing concentration risks. The credit risk in corporate banking is
evaluated and managed by groups organized with an industry sector focus. The
Bank also has a Risk Management Department, whose views are critical for
decision-making with regard to credit exposures. Overall, the risk control
mechanism adopted by the Bank has continued to serve the Bank well, as is
observed in the ratio of net NPA to net customer assets being at 0.61 %.
Corporate Banking scrupulously adheres to all statutory, regulatory and related
guidelines for all its businesses
BUSINESS BANKING:
Business
Banking has consistently focused on procuring low cost funds by offering a
range of current account products and cash management solutions across all business
segments covering corporates, institutions, Central and State Government
Ministries and Undertakings as well as small business customers. Cross selling
of transactional banking products to develop account relationships, aided by
product innovation and a customer-centric approach have borne fruit in the form
of growing current account deposit balances and increasing realisation of
transaction banking fees.
Sourcing of current account deposits is a focus area for growth. As of 31 March
2007, current account deposits grew by 41.83% to Rs. 11304310.000 millions from
Rs. 79700.800 millions in the previous year. On a daily average basis, current
account deposits grew from a level of Rs. 4, 428 millions for the year 2005-06
to Rs. 71930.00 millions for the year 2006-07. During 2006-07, the Bank sourced
97,857 new current accounts as against 77,264 in the previous year. There was a
greater focus on acquisition of high value current accounts, thus accelerating
the pace of growth in current account deposit balances.
Cash
Management Services (CMS) initiatives leveraged the Bank's growing branch
network and robust technology to provide a wide range of customised solutions
to suit the dynamic requirements of its clients. The Bank offers CMS solutions
for collections and payments with an ideal blend of structured MIS and funds
movement so that clients are able to enhance their fund management
capabilities. Also the Bank's Web CMS initiative allows them to view their
daily transactions on a real time basis. The strong correspondent bank alliance
with partner banks offers corporate clients a wide geographical coverage. CMS
foray is not only emerging as an important source of fee income but is also
contributing significantly towards garnering zero cost funds, forging large
relationships. The Bank has established a strong presence by offering
collecting bank services in the IPO/FPO segment and Dividend/Refund Warrant
segments. During the year, the CMS throughput grew by 80% to Rs. 3790670.00
millions compared to Rs. 2109770.000 millions last year. During the same
period, the number of CMS clients has grown to 2,164 clients from 1,432
clients.
The
Bank has acted as an Agency Bank for transacting Government Business for the
last 6 years, offering banking services to various Central Government
Ministries and Departments and other State Governments and
The Bank has further strengthened its association with the e-Governance
initiatives of various State Governments in
During
the year, the Bank associated with the 'CHOICE' Project of the Government of
Chhattisgarh and the' e-Suvidha' initiative of Government of Uttar
Pradesh.
During
2006-07, the Bank has also extended the business of Stamp Duty Collection
through franking in Rajasthan, in addition to Maharashtra and
LENDING TO AGRICULTURE, SME AND MID
CORPORATES:
To
fully exploit the business potential of the Small and Medium Enterprises (SME)
and Mid Corporate segments, to bring greater focus on priority sector lending,
to achieve the small scale industry and agricultural lending targets fixed by
RBI and to explore new avenues of lending like microfinance, a separate
business focus was provided during the year.
Further,
a separate business group was formed to target specific segments in SME and Mid
Corporate business by rolling out schematic loan products where the appraisal
is based on systematically designed scoring sheets and simple appraisal
techniques so as to reduce turnaround time and quickly increase the customer
base.
Advances Cells located at important business centres in the country have
given a fillip to the Bank's SME, Mid-corporate and Agricultural lending
business. During 2006-07, the Bank added 5 more Advances Cells, bringing the
total number to 15. This has resulted in significant improvement in performance
and portfolio quality. Dedicated marketing teams at the Advances Cells and in
certain branches have given an impetus to new business relationships.
The
Bank's focus on SSI lending was amply demonstrated by a 72% growth during the
year. The Bank gave priority sector lending paramount importance and for the
sixth year in a row, the Bank was compliant with the overall priority sector
norms stipulated by RBI.
The
Bank has also laid down a well thought out strategy to grow the retail
agricultural lending business. The Bank categorised centres across the country
based on agricultural productivity, irrigation potential, infrastructure
facilities and loan repayment track record, and chose districts with the good
potential for agricultural lending. Further, the Bank is bringing branches in a
district or even nearby districts under the umbrella of an agriculture cluster
for focused agriculture lending. The Bank has so far opened 18 such agriculture
clusters. In keeping with the focus of the government on increasing direct
agricultural lending, the Bank rolled out several new loan products for the
farming community. The Bank also fine-tuned its existing loan products to fully
suit the varied requirements of its agriculture business clientele. During the
year, the total agricultural advances of the Bank grew by an impressive 115%,
with direct agricultural lending recording a 91% growth over the previous year.
Thus,
for the second year in succession, the Bank's direct agricultural lending has
grown by over 90%. At the end of the year, direct agricultural advances stood
at 9.59% of the net bank credit, which is the highest ever achieved by the
Bank. The Bank would continue the focus on building up its agriculture business
on profitable lines and is recruiting agriculture business personnel to sustain
growth plans and maintain portfolio quality.
The micro-finance business of the Bank witnessed increasing outreach
through 64 micro-finance relationships. The portfolio under micro-finance
increased by 161% during the year, which corresponds to a client outreach of
0.662 millions, the majority being poor women in rural areas. The Bank also
initiated the process of extending micro credit to self-help groups through
village organisations. The Bank has also been implementing various
government-sponsored schemes.
With a
view to expanding their reach in the Northeastern region of the country, the
Bank has signed a Memorandum of Understanding with South Asia Enterprises
Development Facility, a multi-donor facility managed by the International
Finance Corporation of the World Bank. The scope of the collaboration includes
developing a profitable micro, small and medium enterprises business model
supporting service based marketing linkages and export oriented operations,
particularly to enterprises involved in value added agricultural
production.
INTERNATIONAL BANKING:
With
increasing integration of the Indian economy globally and consequent two way
flows of funds and services, the Bank had identified international banking as a
key opportunity to leverage the skills and strengths built in its domestic
operations in serving the requirements of its clients in the areas of trade and
corporate banking, as also investment banking by establishing presences at
strategic international financial hubs in Asia.
In
this direction, the first overseas branch of the Bank was opened in
In
its first year of operations, the
As per web site:
Company profile:
Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (BANK- I), Life Insurance Corporation of India (LIC) and General Insurance Corporation Ltd. and other four PSU companies, i.e. National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd.
The Bank today is capitalized to the extent of Rs. 2814.600 Millions with the
public holding (other than promoters) at 56.86 %.
The Bank's Registered Office is at Ahmedabad and its Central Office is located
at Mumbai. Presently the Bank has a very wide network of more than 510 branch
offices and Extension Counters. The Bank has a network of over 2200 ATMs
providing 24hrs a day banking convenience to its customers. This is one of the
largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to
adopting the best industry practices internationally in order to achieve
excellence.
Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, bank.Bank was set up with a capital of Rs. 115 Millions, with BANKcontributing Rs. 1000.000 Millions, LIC - Rs. 75.000 Millions and GIC and its four subsidiaries contributing Rs. 15.000 Millions each.
SUUTI - Shareholding 27.44%
SUUTI is the largest mutual fund in
Their
Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.
Core Values
Customer Satisfaction through Providing quality service effectively and efficiently Smile, it enhances the face value" is a service quality stressed on Periodic Customer Service Audits Maximisation of Stakeholder value
Success through Teamwork, Integrity and People Their Policy
Policy on Collection of
Local and Outstation Cheques
Code of Bank's Commitment to Customers
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The following disclaimer applies to the Draft Red Herring Prospectus of Abhishek Mills Limited (the "Company") filed with Securities and Exchange Board of India ("SEBI") (the " Draft Red Herring Prospectus") on June 1, 2006 and hosted on this website in connection with the Initial Public Offering by Abhishek Mills Limited. You are advised to read this disclaimer carefully before reading, accessing or making any other use of the attached Draft Red Herring Prospectus. By accessing the Draft Red Herring Prospectus, you agree to be bound by the following terms and conditions, including any modifications to them from time to time.
The content of this Draft Red Herring Prospectus is for the information only. No part of the contents herein shall be copied or duplicated in any form by any means or redistributed. Bank Limited is not soliciting any action based on it, and it should not be construed as an offer to sell or the solicitation of an offer to buy or subscribe for any security. This being a Draft Red Herring Prospectus, Bank Limited does not represent that the content of this Draft Red Herring Prospectus is complete or comprehensive beyond the date of its filing with SEBI and does not guarantee the accuracy, timeliness or completeness of the information being made available to you in the Draft Red Herring Prospectus beyond that date.
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Prospectus comes is required to inform himself or herself about and to observe
any such restrictions. The Draft Red Herring Prospectus is directed at, and is,
intended for distribution to, and use by, residents of
This is not an offering, or a solicitation of an offer to
buy, in the United States or to any US Person as defined under the U.S.
Securities Act of 1933 as amended (the "Securities Act") of any
equity shares or any other securities of Abhishek Mills Limited and the offer
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you are not resident in the
The Draft Red Herring Prospectus has been hosted on this website as prescribed under Clause 5.6.2(ii) of the SEBI (Disclosures and Investor Protection) Guidelines, 2000 ("SEBI DIP Guidelines"). Bank Limited, the Book Running Lead Managers has taken all necessary steps to ensure that the contents of the Draft Red Herring Prospectus as appearing on this site are identical to the Draft Red Herring Prospectus filed with SEBI in accordance with SEBI (DIP) Guidelines. You are reminded that documents transmitted in electronic form may be altered or changed during the process of transmission and consequently Bank Limited nor any of its affiliates accept any liability or responsibility whatsoever in respect of alterations or changes which have taken place during the course of transmission of electronic data. Bank Limited will not be responsible for any loss or damage that could result from interception and interpretation by any third parties of any information being made available to you through this site.
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Press Release
Axis Bank successfully raises US$ 1050 million
Mumbai, July 22, 2007:
Axis Bank announced that it has successfully priced its offering of
14.13 million
GDRs, aggregating USD 218.07 million. Each GDR, representing one
underlying share, was priced at USD
15.43 and will be listed on the London Stock Exchange. This represents a
discount of 1.7% to the closing
price of the Bank's GDR on Friday, July 20.
In addition, the Bank has determined the Issue Price of the equity
shares to be offered in the proposed
Qualified Institutional Placement (QIP) to be Rs. 620 per share. The
size of the QIP will be Rs 17520.000
millions.
Further, the Bank proposes to allot, on a preferential basis,
2,56,21,076 shares to its promoters at Rs. 620
per share aggregating to Rs. 15880.000 millions.
The date of settlement for all 3 offerings will be July 27, 2007. Citi
and Goldman Sachs acted as the Joint
Bookrunners for the GDR and QIP offering.
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.40.59 |
|
|
1 |
Rs.80.74 |
|
Euro |
1 |
Rs.56.15 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
|