MIRA INFORM REPORT

 

 

Report Date :

19.08.2007

 

IDENTIFICATION DETAILS

 

Name :

SYNDICATE BANK

 

 

Registered Office :

P.O. Box No. 1, Manipal – 576119, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

1925

 

 

Legal Form :

Subject is a Government of India Undertaking Bank.

 

 

Line of Business :

Subject is engaged in all types of Banking Business including Foreign Exchanges

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

USD 1449236

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed nationalized bank having excellent track. Fundamentals and strong and healthy. Payments are usually correct and as per commitments.

 

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

 

 

LOCATIONS

 

Registered Office :

P.O. Box No. 1, Manipal – 576119, Karnataka

Tel. No.:

91-820-2571181

Fax No.:

91-820-2570266 / 70392

Website :

www.syndicatebank.com

 

 

Branches :

Total 1702 branches of the Bank

 

 

DIRECTORS

 

Name :

Mr. C P Swamkar

Designation :

Chairman and Managing Director

Date of Birth :

01.05.1948

Qualification :

Post Graduation in Commerce

Experienced :

36 years

Date of Appointment :

01.04.2006

 

 

Name :

Mr. George Joseph

Designation :

Director

Qualification :

B. Com

Date of Appointment :

01.04.2006

 

 

Name :

Mr. Mocheria Bhaskara Rao

Designation :

Director

Qualification :

Graduate in Commerce and a Chartered Accountant

 

 

Name :

Mr. A R Nagappan

Designation :

Director

Qualification :

Post-Graduate of Science

Experienced :

36 years

 

 

Name :

Mr. Dinkar S Punja

Designation :

Director

Qualification :

Graduate in Fisheries Sciences

Date of Appointment :

1978

 

 

Name :

Mr. Suresh Kumar Rustagi

Designation :

Director

Qualification :

Graduate - BA(Hons) Maths

Date of Appointment :

03.12.1977

 

 

Name :

Mr. Bhupinder Singh Suri

Designation :

Director

Qualification :

Diploma-holder in Automobile Engineering

 

 

 

 

KEY EXECUTIVES

 

Name :

Mr. M Deena Dayalan

Designation :

Nominee (Government)

Qualification:

Post-Graduate in Chemistry and an MBA from Leeds University, UK.

 

 

Name :

Mr. K Seetharamu

Designation :

Nominee (RBI)

Qualification :

Graduate in Science

Date of Appointment :

27.02.2007

 

 

Name :

Mr. Vinay Kumar Sorake

Designation :

Nominee (Government)

Qualification :

Graduate in Law and Social Welfare

 

 

Name :

Mr. Kawaljit Singh Oberoi

Designation :

Nominee (Government)

Qualification :

Graduate in Commerce (Honours) and a Chartered Accountant

 

 

Name :

Mrs. Shobha Oza

Designation :

Nominee (Government)

Qualification :

MA, M.Phil in English Language & Literature from Devi Ahilya University, Indore

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Category

No. of Shares

Percentage of Holding

A. Promoter’s Holding

 

 

1. Promoter

 

 

a. Government of India

346968282

66.47

B. Non – Promoter Holding

 

 

3. Institutional Investor

 

 

a. Mutual Funds and UTI

4584971

0.88

b. Banks, Financial Intitutions, Insurance Companies (Central / State Government Institutions)

22286243

4.27

c. FII’s

66838582

12.81

4. Others

 

 

a. Private Corporate Bodies

8239182

1.58

b. Indian Public

71081665

13.62

c. NRIs / OCBs

956700

0.18

d. Any Others

1012657

0.19

Grand Total

81290204

15.57

Note: 1. Details of the shareholders holding more than 1% of the shares of the Bank are enclosed herewith

2. Total foreign holding including NRI / FII is 67795282 shares and the percentage of shareholding is 12.99% of the total equity.

 

 

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in all types of Banking Business including Foreign Exchanges

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

37809

 

 

Bankers :

Reserve Bank of India

 

 

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

ł      Sankar & Moorthy

Chartered Accountants

 

ł      Mehra Goel & Company

Chartered Accountants

 

ł      Mehrotra & Mehrotra

Chartered Accountants

 

ł      S K Singhania & Company

Chartered Accountants

 

ł      Prem Gupta & Company

Chartered Accountants

 

ł      Hingorani M. & Company

Chartered Accountants

 

ł      Sriramamurthy and Co / V Soundararajan and Company

Chartered Accountants

 

 

 

 

CAPITAL STRUCTURE

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

521970000

Equity Shares

Rs.10/- each

Rs. 5219.700 millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

5219.700

5219.700

4719.700

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

31011.200

23116.500

17265.400

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

36230.900

28336.200

21985.100

LOAN FUNDS

 

 

 

1] Deposits

786335.700

536243.900

462945.600

2] Borrowings

13735.300

3430.600

3220.100

TOTAL BORROWING

800071.000

539674.500

466165.700

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

836301.900

568010.700

488150.800

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

7715.500

4192.900

3812.700

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

252340.100

172691.100

203707.300

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000

0.000

 

Balance with Banks and money at Call and Short Notice
29246.800

20683.800

3795.700

 

Cash & Bank with RBI
65742.300

31451.300

26900.100

 

Other Current Assets
21024.500

17225.900

15774.900

 

Advances
516704.400

364662.300

267292.000

Total Current Assets
632718.000

434023.300

313762.700

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
56471.700

42896.600

33131.900

 

Provisions
 

 

 

Total Current Liabilities
56471.700

42896.600

33131.900

Net Current Assets
576246.300

391126.700

280630.800

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

836301.900

568010.700

488150.800

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Interest Earned

60400.700

40504.200

37576.200

Other Income

6519.000

5920.800

5906.800

TOTAL

66919.700

46425.000

43483.000

 

 

 

 

Interest expended

38900.200

21695.500

20638.000

Operating Expenses

14236.400

14649.700

12900.600

Provisions & Contingencies

6622.500

4714.900

5915.400

TOTAL

59759.100

41060.100

39454.000

 

 

 

 

Net Profit for the year

71606.000

5364.900

4029.000

Prior Year Adjustments

0.000

0.000

0.000

Profit brought forward

0.000

1952.300

134.300

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2007

1st Quarter

Sales Turnover

 

 

18462.800

Other Income

 

 

1530.600

Total Income

 

 

19993.400

Total Expenditure

 

 

4336.800

Operating Profit

 

 

15656.600

Interest

 

 

12992.900

Gross Profit

 

 

2663.700

Depreciation

 

 

0.000

Tax

 

 

453.400

Reported PAT

 

 

2210.300

 

 

 

KEY RATIOS

                                                                                                                                     

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

Credit Deposit Ratio

 

66.64

63.25

53.30

Investment Deposit Ratio

 

32.14

37.67

43.08

Cash Deposit Ratio

 

7.35

5.84

8.10

Interest Expended/Interest Earned

 

64.40

53.56

54.92

Other Income/Total Income

 

9.74

12.75

13.58

Operating Expense/Total Income

 

21.27

31.56

29.67

Interest Income/Total Funds

 

8.07

7.18

7.59

Interest Expended /Total Funds

 

5.20

3.85

4.17

Net Interest Income/Total Funds

 

2.87

3.33

3.42

Non Interest Income/Total Funds

 

0.87

1.05

1.19

Operating Expense/Total Income

 

1.90

2.60

2.61

Profit Before Provisions/Total Funds

 

1.84

1.93

2.31

Net Profit/Total Funds

 

0.96

0.95

0.81

Return On Net Worth(%)

 

24.60

26.66

29.72

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Company Profile:

 

Syndicate Bank was founded on October 20, 1925, as Canara Industrial and Banking Syndicate by T M Pai, Upendra A Pai & Vaman S Kudva with the objective of helping cottage industries such as weaving and spinning. The bank was renamed to present one in 1964 and was nationalised under the banking companies act in July 19, 1969. The entire capital of the bank is currently held by the Government of India. 


 
Syndicate Bank was the first bank to sponsor a regional bank, prathama bank at Moradabad in 1975. It has also sponsored 10 regional rural banks all over the country. It has also built up a wide network of 1799 branches, including one overseas branch at London. The main objective of the bank is to undertake the activities for which the funds are being raised and the activities, which it has been carrying on till date.

  
 
The bank made its maiden public issue of 125.0000 millions equity shares of Rs. 10 each for cash at par, aggregating to Rs. 1250.000 millions in October 1999. 

 

The bank is effectively leveraging technology, like ATM's at important centres, telebanking, internet banking, etc., to enhance the quality of customer services. 165 branches of the bank are totally computerised and 490 branches are partially computerised. New schemes like the Senior Citizens Security Deposit, Cumulative Education Deposit, Kisan Pragathi Deposit, Ganga Kalyana Yojana, etc., was introduced towards social concern and to suit the needs of the different segment of the population. 


A Customer Centric IT platform 'Syndicate-e-banking' features the 'single window'concept was launched in 2001-02,where the customer can perform all transactions in one counter and can view all his accounts.

 
 
During 2002-03 the bank has put in Centralised Banking Solution to harness technology for achieving business strategy and this project has blossomed into a full blown technology initiative seamlessly integrating 40 branches and 17 cities across the country. It has also added a slew of value added serivces including Networked ATMs,Telebanking and Internet banking etc.

  

During 2005-06, the bank has opened 207 branches, of which 143 are by way of upgradation of extension counters. The 2006th branch of the Bank was opened at Gangtok on 27th March, 2006. The Bank also opened 7 Extension Counters and One Central Accounts Office during the year. The total branch-Network of the Bank as at the end of the financial year 2005-06 comprises of 2006 branches, 83 Extension Counters, 58 Sub Office, 9 Satellite branches and 16 Central Accounts Office. The branch network is spread over 654 branches in rural, 469 in Semi-urbanm 457 in Urban, 425 in Metro/Port town areas. The bank has one overseas branch at London. 


 The Bank is rapidly expanding the ATM Network and during the year the Bank has increased the tally of networked ATMs to 326 spread across 129 centres. In addition, 174 ATMs are in the process of installation at various places. The Bank has plans to have in place 800 ATMs in the network by the end of next financial year.

 

Director’s Report:

 

MANAGEMENT DISCUSSION AND ANALYSIS: 


 MACRO ECONOMIC ENVIRONMENT: 


The global economy expanded vigorously in 2006 registering a GDP growth of 5.4 per cent as against 4.9 per cent in 2005. Notwithstanding the recent ups and downs of financial market conditions as they’ll as volatility in stock bourses, the global economy Is set for another good year in 2007. IMF is projecting an expansion of 4.9 per cent in global output - a mild deceleration from the previous year - as US GDP growth rate is slowing down to 2.6 percent during 2007. In its draft report, the IMF estimates growth in the Eurozone at 2.3 per cent, Japan at 2.2 per cent and UK at 2.9 per cent in 2007. Growth in emerging markets and developing counties continues to be strong although it is expected to slow marginally at 7.2 per cent in 2007, from 7.3 per cent in 2006. In Asia, Chinese GDP is expected to expand by 10 per cent in 2007 and by 9.5 per cent in 2008, in line with Government plans to slow the pace of growth of 10.7 per cent recorded in 2006. Strong growth led by many economies and rising international oil prices in the first half of 2006 raised concerns about inflation, but pressures moderated in the second half, influenced by tightening of monetary policy and turnaround in oil markets. Though, the global macroeconomic fundamentals are strong with improved business and investment climate, the downside risks are still emanating from behavior of oil prices, adverse developments in the US housing market, hardening of global interest rates and building up of inflationary pressures. 


 
Against the above backdrop, the Indian economy experienced robust growth during the financial year 2006-07. The continued growth momentum in services and manufacturing sectors resulted in increased projection of GDP growth in 2006-07. The Central Statistical Organization (CSO) has estimated India's GDP growth at 9.2 per cent in 2006-07 having a growth of 2.7 per cent in Agriculture, 10.2 per cent in Industry and 11 per cent in Services Sector. 
 
Financial markets witnessed stable conditions throughout the year 2006-07 except with some volatility witnessed in the fourth quarter of 2006-07 together with sizeable swings in liquidity and hardening of interest rates across the spectrum. Interest rates of public sector banks on deposits of over one year maturity moved up from 5.75-7.25 per cent in April 2006 to 7.25-9.50 per cent in March 2007. 


 
The liquidity in the system remained comfortable during the first half of the financial year 2006-07 but in the second half exhibited a somewhat tightened liquidity condition on account of large and sudden changes in capital flows and cash balances of the Government. The total overhang of liquidity under the LAF the Market Stabilization Scheme (MSS) and surplus cash balances of the Central Government taken together increased from an average of Rs.743340.000 millions in March 2006 to Rs.974490.000 millions in March 2007. 


 
The y-o-y inflation rose to 5.7 per cent as at 31st March 2007 as compared with 4.0 per cent of the previous year. Consumer price inflation remained above the wholesale price index (WPI)-based inflation throughout the financial year 2006-07 reflecting the impact of high commodity prices and strong demand conditions as prevailed within the economy. The main contributory factors for elevated levels of inflation were prices of primary food articles viz. pulses, cereals and vegetables, besides manufactured products including cement, steel and machinery items. The Reserve Bank of India is targeting 5.0 per cent level of inflation for the fiscal 2007-08 having medium term goal of 4.0-4.5 per cent. 


 The aggregate deposits of Scheduled Commercial Banks (SCBs) grew by 23 per cent to Rs.25942590.000 millions as at 30th March 2007 as against 18.1 per cent recorded as at 30th March 2006. Demand and time deposits stood at Rs.4231260.000 millions and Rs.2711340.000 millions respectively during the period. 

 

The Scheduled Commercial Banks' advances rose by 27.6 per cent to Rs.19231920.000 millions as at 30th March 2007 as against 30.8 per cent recorded as at 30th March 2006. Non-food credit grew by 28.0 percent to Rs.18766720.000 millions as against the growth of 31.8 per cent recorded in the previous year.

 
India's merchandise exports surged from a level of USD 100.60 billion as at 31st March 2006 to USD 125 billion as at 31st March 2007 registering y-o-y growth of 24.3 per cent. The merchandise imports stood at USD 181.37 billion registering y-o-y growth of 29.3 per cent over the previous year.

Oil and non-oil imports in value terms increased by 30.6 per cent and 28.7 per cent respectively during the financial year 2006-07. As a result of fast growing merchandise imports as compared to exports, India's trade deficit increased from USD 39.6 billion in 2005-06 to USD 56.3 billion in 2006-07. 

Foreign exchange reserves increased by USD 47.6 billion from a level of USD 151.6 billion in 2005-06 to USD 199.2 billion in 2006-07. The rupee appreciated by 2.3 per cent against the US Dollar and 2.7 per cent against the Japanese Yen, but depreciated by 6.8 per cent against the Euro and by 9.0 per cent against the Pound Sterling during 2006-07.

Credit Expansion: 

A series of measures were taken which included the implementation of a growth oriented strategy, delegation of enhanced credit sanctioning powers to promote quicker decisions and reduced response time in meeting customer needs and expansion of the range of retail credit products to meet varying customer’s requirements. These measures paid dividends with global credit of the Bank going up from Rs.376600.000 millions to Rs.528390.000 millions clocking a growth of 40.31 percent. The Bank's focus on agricultural and priority sector lending, finance to small & medium enterprises and a range of retail loan products in response to the prevailing market conditions, contributed to the growth in both the size and earnings of the Bank's credit portfolio.

Outstanding under Term loan and advances on unsecured basis remained within the ceiling of 650/ and 25% of total advances, fixed as per policy of the Bank. With the economy expected to maintain is current growth trajectory, the Bank's credit portfolio is poised to improve significantly in terms of size, earnings and quality. In order to maintain the profitability due to increasing cost of funds and to align the interest rate with peer Banks, the prime-lending rate of the Bank was revised four times during the year. 

In line with the policy guidelines issued by Reserve bank of India the Bank has put together a policy package aimed at improving the flow of credit to Small & Medium Enterprises. 

Consumer/Trade Finance: 

Retail lending continued to contribute substantially to both the growth and earnings of the Bank. The existing products were suitably customized to meet the changing needs of the retail clientele. Modifications were made in the consumer loan scheme with a view to improving the asset quality and checking the tendency towards higher delinquencies. 
 
 Considering the due contribution of retail business to the Bank's bottom line and to take it to a much higher growth trajectory, a separate Retail Banking Department was formed in November 2006 at Corporate Office, Bangalore, headed by a General Manager. This niche area is contributing towards increasing net interest margins, with huge risk diffusion and relatively low levels of NPA. 

Bank's credit portfolio under Retail Loans has been aggressively growing at unprecedented rate for the third consecutive year. During the current financial year, the growth in Retail Credit was 37.81 percent over March 06. In absolute terms the retail credit grew from Rs.100710.000 millions in 2005-06 to Rs.138750.000 millions in 2006-07. 
 

Export Finance: 

Credit flow to exports increased from Rs.1415790.000 millions as on 31.03.2006 and reached a level of Rs.20171800000.000 millions as on 31.03.2007. The overall year on year growth was 42.47 per cent. Bank has initiated various measures to increase the flow of credit to export sector. The coverage under the SyndExport Gold Card Scheme, a unique scheme for eligible exporters offering concessional and preferential terms, was broadened to include more number of exporters. Rupee export credit was offered at very competitive Interest rates within the ceiling prescribed by RBI. 

Housing Finance: 

Housing sector received a boost during the year and the outstanding advances to this sector stood at Rs.51000.000 millions. In order to maintain asset quality by strengthening due diligence, it is proposed to put in operation 'Central Processing Centre' in major metros. Licenses were obtained for setting up of Central Processing Centers at Bangalore, Chennai, Delhi, Kolkota and Mumbai. 

Credit Monitoring & Review: 

A robust system of monitoring credit and reviewing credit sanctions has been put in place. The forward-looking approach of identifying special monitoring borrowal accounts, showing signs of stress or delinquency has enabled early Identification of problem accounts, facilitating Initiation of necessary remedial measures to prevent them from slipping into non-performing assets. 

FINANCIAL PERFORMANCE DURING 2006-07:

Profits & Profitability: 

The Operating Profit of the Bank grew by 37.16 percent to Rs.13830.000 millions as compared to Rs.10080.000 millions in 2005-06. This growth was achieved despite hardening of interest rates and absorbing the cost of around Rs.400.000 millions spent on accelerated CBS implementation at about 950 branches. 

Net profit of the Bank grew by 33.47 per cent to Rs.7160.000 millions during 2006-07 from Rs.5360.000 millions reported in the previous year. In order to ensure higher profitability, the Bank has always emphasized on prudent fund management, reduction in NPA and increased non-fund based business on the one hand and expenditure and operational efficiency on the other. 

Key Performance Ratios: 

The Capital Adequacy Ratio of the Bank stood at 11.74 per cent as at 31st March 2007 as against 11.73 per cent as at 31st March 2006. Tier I ratio was placed at 6.24 per cent and Tier II ratio stood at 5.50 per cent. 
 
 * The Ratio of net NPAs to net advances decreased from 0.86 percent as at 31st March, 2006 to 0.76 per cent at 31st March, 2007. 


 * The Gross NPA to gross advances came down to 2.95 per cent as of 31st March, 2007 from 4% as of 31st March 2006. The provision coverage of the Bank was 73 per cent as of 31st March, 2007. 


 * Business per employee improved from Rs.34.800 millions as at 31st March 2006 to Rs.48.900 millions as at 31st March 2007.


 * The average yield on advances improved from 8.72 per cent in 2005-06 to 9.28 per cent in 2006-07 whereas cost of deposits increased from 4.48 per cent in 2005-06 to 5.44 per cent in 2006-07 due to hardening in the interest rate scenario.


 * The NII for the year ended 31st March 2007 grew by 14.31 per cent and stood at Rs.2150 millions as against Rs.18810.000 millions for the year ended 31st March, 2006.


 * The Return on Assets maintained at the same level of 0.91 per cent as on 31st March, 2006 as well as on 31st March, 2007. 


 * Earnings per share of the Bank improved from Rs.10.60 as on 31st March, 2006 to Rs.13.72 as on 31st March, 2007. 
 
 * The Book Value per share of the Bank increased from Rs.54.29 as on 31st March, 2006 to Rs.69.41 as on 31st March, 2007. 


 * The Credit-Deposit Ratio stood at 67.20 per cent as on 31st March, 2007 as against 70.23 per cent reported during 31st March, 2006. 

TREASURY AND INTERNATIONAL OPERATIONS: 

The domestic investments of the bank grew by 46.45% to reach Rs.250760.500 millions as on 31-03-2007 from the level of Rs.171229.200 millions as on 31-03-2006.

The increase is mainly due to the increased investment in SLR securities to meet the statutory requirements. Total income from investment portfolio (excluding trading profit) increased from Rs.1214.50 Crate in 2005-06 to Rs.16360.9000 millions in the current year. Their investment in SLR securities (excluding that of reverse repo) amounted to Rs. 219142.5000 millions, which forms 87.40% of their aggregate investments as on 31-03-2007. The bank could earn a trading profit of Rs.1406.5000 millions during the financial year 2006-07 against Rs.133.47 core during previous year. The yield on average investment excluding trading profit has come down from 7.47% during the fiscal 2005-06 to 7.08% during the year 2006-2007 due to maturity of high coupon securities. Modified duration of the portfolio has gone up from 4.68 as on March 2006 to 4.94 as on March 2007 mainly due to rescheduling of tenors of matured recapitalization bonds and fresh investment in medium duration papers. 

International Division: 

International Division, Mumbai is the only 'Category A' office of the Bank.

The Bank's centralized dealing room at International Division, Mumbai is supported by the two LINK DEALING centers at NEW DELHI and BANGALORE. The Bank is one of the first to undertake the WEB-BASED trading with Overseas counter party Banks by using the WEB PLATFORM The Bank is having 90 designated Branches (Category B) and 355 nominated branches to handle the FCNR operations of the Bank. 
 
 The Bank is a member of CLEARING CORPORATION OF INDIA LTD., (CCIL for settlement of Inter Bank Forex Deals in USD/INR. Further, the Bank is one of the first Banks to participate in CONTINUOUS LINKED SETTLEMENT (CLS) for Cross Currency Deals by CCIL. The Bank is active participant in Derivative segment, since September 2003. 


The total Forex Turnover of the Bank stood at Rs.5949830.000 millions as at March, 2007 as compared to Rs.4880410.000 millions for the previous Financial year, representing an increase of 22% over the corresponding period. The Inter-Bank turnover of the Bank stood at Rs.5662060.000 millions as at March 2007 as compared to Rs.4585540.000 millions for the previous year. 

Exchange Companies: 


 1. The Bank is successfully managing two Exchange Houses viz., 1. M/s. National Exchange Co. WILL, Doha, Qatar.2. M/s. Musandam Exchange Co,, Sultanate of Oman 


 
 2. The Bank is also having fruitful Rupee Drawing Arrangement with following Exchange Houses in Gulf: 
 
 (i) M/s. Wall Street Exchange Centre, Dubai (2) M/s. UAE Exchange Centre, Kuwait (3) M/s. Redha Al Ansari Exchange Est, Dubai (4) M/s. Habib Exchange Co., Sharjah (5) M/s. Al Razouki International Exchange, Dubai (6) M/s. Al Ansari Exchange Co., Abu Dhabi (7) M/s. National Finance & Exchange Co., Bahrain (8) M/s. National Exchange Co., Kuwait, (9) Zenz Exchange Co, Bahrain, (10) Federal Exchange Company, Dubai, (11) Al Falah Exchange Company, Abu Dhabi. 



Overseas Operations: 

 

Bank's only overseas presence is in UNITED KINGDOM at LONDON. The Branch is active in money market operations, besides treasury and forex dealing operations. The Branch also focuses on Indian syndications, ECBs and investments in Credit Linked Notes of Indian Corporates apart from developing the local loan book. 
 
 The Branch's business size as at March 2007 stood at GBP 1159.863 Mio and it is one of the profit centres for the Bank. FSAs evaluation places the branch in 'Low Risk' category. The Branch complies with Host/Home country regulations

 

General Insurance: 


The Bank has tied up with United India Insurance Company Limited under a Corporate Agency arrangement since June 2004 for selling general insurance. 


 
Special products such as Synd Arogya, a mediclaim-cum-personal accident cover for all customers and Unihome Loan Protector Policy for housing loan borrowers are also being marketed under the age arrangement with United India Insurance Company Limited. 

 

As Per Web Details:

 

HISTORY

 

Subject was established in 1925 in Udupi, the abode of Lord Krishna in coastal Karnataka with a capital of Rs.8000/- by three visionaries - Sri Upendra Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.T M A Pai, a physician - who shared a strong commitment to social welfare. Their objective was primarily to extend financial assistance to the local weavers who were crippled by a crisis in the handloom industry through mobilising small savings from the community. The bank collected as low as 2 annas daily at the doorsteps of the depositors through its Agents under its Pigmy Deposit Scheme started in 1928. This scheme is the Bank's brand equity today and the Bank collects around Rs. 20.000 millions per day under the scheme.

 

The progress of Syndicate Bank has been synonymous with the phase of progressive banking in India. Spanning over 80 years of pioneering expertise, the Bank has created for itself a solid customer base comprising customers of two or three generations. Being firmly rooted in rural India and understanding the grassroot realities, the Bank's perception had vision of future India. It has been propagating innovations in Banking and also has been receptive to new ideas, without however getting uprooted from its distinctive socio-economic and cultural ethos. Its philosophy of growth by mutual sustenance of both the Bank and the people has paid rich dividends. The Bank has been operating as a catalyst of development across the country with particular reference to the common man at the individual level and in rural/semi urban centers at the area level.

 

The Bank is well equipped to meet the challenges of the 21st century in the areas of information technology, knowledge and competition. A comprehensive IT plan is being put in place and the skills and knowledge of the Bank's personnel are being upgraded through a variety of training programmes to promote customer delight in every sphere of its activity. The Bank has launched an ambitious technology plan called Centralised Banking Solution (CBS) whereby 500 of their strategic branches with their ATMs are being networked nationwide over a 4 year period.

 

MEMORABLE MILESTONES IN A 82-YEAR JOURNEY

 

Growing Far And Wide

 

1925  On 10.11.1925, the business of the Bank commenced in Udupi with the name "Canara Industrial and Banking Syndicate Ltd.," a joint Stock Company with just one employee.

 

1928  First branch of the Bank opened at Brahmavar in Dakshina Kannada District

 

1937  Bank became a member of the Clearing House for the first time at Bombay.

1946  29 branches opened in a single day in rural areas.

 

1953  Took over the assets and liabilities of 2 Local Banks viz. Maharashtra Apex Bank Ltd. and Southern India Apex Bank Ltd. 20 Banks merged with the Bank during the period 1953-1964.

 

1957  100th branch opened at Ilkal in Karnataka

 

1962  Entered Foreign Exchange business by opening Foreign Exchange Department at Bombay.

 

1963  Name of the Bank changed from "Canara Industrial & Banking Syndicate Ltd." to "Syndicate Bank Limited". Head Office was shifted to Manipal on 19.4.1964.

 

1966  Economic Research Department set up. One of the first few Banks to emphasise on research in Banking even before nationalisation.

 

1969  Bank had 306 branches at the time of nationalisation of which 66% were in Rural and Semi Urban centres. Opened a branch at Port Blair in Andaman and Nicobar islands

 

1970  First Staff Training College started at Head Office

 

1971  First specialised branch in Foreign Exchange opened at Delhi.

 

1972  Opened a branch at Lakshadweep islands

 

1976  First overseas branch opened at London on 17.8.76.

 

1983  Took up management of Al Shabei Finance and Exchange Co. in Doha

 

1984  Took up management of Musandam Exchange Co. in Muscat

1984  1000th branch opened at Delhi Hauz Khas

 

1989  1500th branch opened at Kanakumbi

 

1991  First Specialised Industrial Finance Branch opened at Mumbai.

 

1995  First Specialised Housing Finance Branch opened at Mangalore

 

1999  Bank raised Capital of Rs.125 Crore in Oct.1999 from more than 4 lakh shareholders

 

2000  First Specialised Capital Market Services branch opened at Mumbai

 

2001  First branch under CBS (Core Banking Solution) started operation at Bangalore.

 

2002  Centralised Banking Solution under the brand name "Syndicate-e-banking" launched at Delhi, Mumbai, Bangalore and Manipal.

 

2003  Bank enters into MOU with Bajaj Allianz for distribution of Life Insurance products.

 

2003  Toll Free Voice Mail System for redressal of grievances introduced.

 

2004  Bank ties up with United India Insurance Co. Ltd. for distribution of Non-Life Insurance products

 

2004  Utility bill payment services through Internet banking introduced.

 

2005  Introduced On-line reservation of Railway Tickets through Indian Railway Catering & Tourism Corporation Ltd. (IRCTC) for Internet banking customers of their Bank.

 

2005  Bank approached the Capital Market with Rs.5 Crore equity shares at a premium of Rs.40 through Book building route Bank collected Rs.250 Crore and the issue was oversubscribed by 29.275 times.

 

2005  Amalgamation of 4 Regional Rural Banks of Karnataka to form Karnataka Vikas Grameena Bank with Head Office at Dharwad.

 

2005  Implementation of Venture Capital Scheme of SMALL FARMERS AGRI-BUSINESS CONSORTIUM (SFAC) Entered into MOU with SFAC for promoting of investments in Agri-business products.

2006  Bank signs MOU with M/s.CMC Ltd., for making Syndicate Institute of Bank Management (SIBM) a center of excellence of global standards and provide quality management education.

 

2006  500th Branch of SyndicateBank in Karnataka opened at Navnagar, Bagalkot.

 

2006  2000th Branch of SyndicateBank opened at Tondiarpet, Chennai on 23.03.2006.

 

2006  Inauguration of SyndBank Services Limited, the 1st BPO outfit of a Nationalised Bank, a wholly owned

subsidiary of SyndicateBank & 525th CBS Branch by Hon'ble Union Minister of Finance, Sri P Chidambaram on 24.03.2006 at Bangalore.

 

2006  2006th Branch of SyndicateBank opened at Gangtok, Sikkim on 27.03.2006

 

 

Pigmy Deposit Scheme - Bank's Brand Equity

 

  • Launched in 1928 by Dr.T.M.A.Pai, one of the Founders to encourage the habit of thrift and small savings. Pigmy Scheme symbolises the description of the Bank as "a small man's big Bank" even today.
  • Bank collects as low as Rs.1 daily for 63 months at the doorsteps of 1.232millions depositors through its 3370 Pigmy agents.
  • Daily collection under the scheme is over Rs.26.600 millions today.
  • Pigmy deposits of the Bank crossed Rs.14570.000 millions

Nationalisation - Bank's Catalytic Role

 

1961  Industrial Finance Department was set up to encourage advances to Small Industries and Entrepreneurs in keeping with the policy of assisting the common man.

 

1968  Bank's commitment to the philosophy of social lending since inception provided the spark for introduction of social control measures in the country. 32% of the Bank's branches were in rural areas as against 22% for the entire Banking system.

 

1969  Bank was nationalised on 19th July 1969. Bank was acknowledged as a live example of mass banking and as a powerful catalyst of social change. Nationalisation therefore merely meant change of ownerhsip.

 

1995  Established Hi Tech Agriculture Branches

 

 

Pioneer In Rural Development

 

1926  Established in a rural milieu to financially assist handloom weavers

 

1964  First Bank to venture into agricultural financing when the Banking system considered it risky and unconventional.

 

1966  Promoted Syndicate Agriculture Foundation - a voluntary organisation of farmers - to disseminate scientific farming techniques.

1967  Agri Card - a ready credit facility for farmers - launched.

 

1973  Bio Gas finance scheme introduced in collaboration with Khadi and Village Industries Commission to popularise non conventional source of energy. Farm Clinics established.

 

1974  Syndicate Farmers' Service Society was organised by the Bank in Hiriadka in South Kanara based on the recommendations of the National Commission on Agriculture.

 

1975  Sponsored the country's first Regional Rural Bank - Prathama Bank opened on 2.10.1975 - in Moradabad in U.P. Bank has so far sponsored 10 such RRBs which are all profit making and act as trend setters in energising the rural economy. After amalgamation there are now 5 grameena banks in 5 states, covering 29 districts

 

1982  Jointly sponsored the first RUDSETI (Rural Development and Self Employment Training Institute) at Ujire in Dakshina Kannada (Karnataka). There are 20 such Institutes in 12 States today providing free entrepreneurship training to unemployed youth. Intensive Rural Development branches established.

 

1989  Bank adopted Service Area Villages to bring about alround development.

 

1998  Kisan Credit Card launched

 

2000  In commemoration of Platinum Jubilee, Syndicate Rural Development Trust established (to mark the Platinum Jubilee of the Bank) for pursuing rural development initiatives with initial corpus of Rs. 5.000 millions Opened 8 Rural Enterpreneurship Development Institutes at Manipal, Kumta, Bellary, Belgaum, Moradabad, Kadapa, Kurnool and Kollam.


Scheme for financing Solar Water Heating system Launched.

 

2001  Syndicate Laghu Udyami Credit Card launched.

 

2003  SSCC: Synd Swarozgar Credit Card- A new product for financing Small Artisans, Handloom weavers, Fisherman, Service sector, Self employed persons, Rickshaw owners and other Micro entrepreneurs to meet working capital or block capital or both and also consumption needs has been launched.

 

2004  SKSCC: Syndicate Kissan Samrudhi Credit Card- A new product launched for meeting production and investment credit needs of farmers for agriculture & allied activities and also to meet their consumption requirements.

 

2005  Scheme for financing Commercial Horticulture Projects under the schemes of National Horticulture Board has been launched to encourage farmers to go in for diversification in agriculture essential for increasing their income level.
Scheme for financing SC/STs for rainwater harvesting has been launched.

 

2006  Syndicate General purpose Credit Card launched.


SyndJaiKisan: A hassle free term lending scheme has been launched for the benefit of the farmers, to meet their entire farm related investments, contingent investments related to farming, including repayment of high cost private debt and consumption needs to meet pressing social obligations.
Scheme for financing tenant farmers: Two separate schemes have been launched to provide need based credit to tenant farmers through Joint Liability Group (JLG) approach as well as individual approach.

 

 Social Lending - Concern For The Underprivileged

 

  • Social lending is the Bank's strong point since inception.
  • Priority Sector Advances as at March 2007 were Rs.184410.000 millions accounting for 39.90% of the Bank's net bank. 1.639 millions borrowers assisted under priority sector.
  • SC/ST advances under priority sector are Rs.10700.000 millions as on 31.03.2007 covering 2.790.000 millions beneficiaries.
  • Bank adopted 13,722 Service Area Villages for extending timely. credit to meet all their genuine credit needs. Total credit to the extent of Rs.79410.000 millions was disbursed under Annual Action Plan in these villages. The agricultural credit disbursed during the financial year  2006-07 was Rs.43620.000 millions
  • 1660.000 millions new farmers were brought into Bank's fold through 1128 rural/semi-urban branches during the year 2006-07, registering an average of 147 new farmers per branch against the Govt's stipulation of 100 new farmers per branch.
  • Agricultural credit stood at Rs.80500.000 millions constituting 17.42% of net bank credit.  1.119 millions  borrowers assisted under Agriculture, out of which 47% were small and marginal farmers.
  • Bank has issued 0.8000 million Kisan Credit Cards to the farmers with credit limits of over Rs.295.500 millions
  • 24,304 new Self Help Groups were credit linked with a credit support of Rs.1943.700 millions during the year 2006-07 benefiting 0.267 million families. The Bank has so far credit linked 87,416 SHGs with a credit exposure of Rs. 4964.700 millions benefiting about 0.963 million families, upto 31.03.2007.
  • Extended education loan to 52,184 beneficiaries amounting to Rs.6130.000 millions
  • Assisted 0.134 million beneficiaries under housing amounting to  Rs.56450.000 millions
  • Advances to weaker sections were Rs.46670.000 millions benefiting0. 688 millions customers.
  • Bank is actively involved in implementing the schemes for financing Solar Water Heating and Lighting Systems. Bank has financed 3886 Water Heating Systems amounting to Rs. 102.600 millions and 674 Solar lighting systems amounting to Rs. 08.300 million during the year 2006-07. Thus the cumulative number of Solar Water Heating and lighting systems financed by the Bank is 21,323 units with a credit component of Rs. 496.800 millions and 6367 units with a credit component of Rs. 107.800 millions respectively.
  • As a result of Solar Water Heating and Lighting Systems introduced by the Bank, there is grid power saving to the extent of 58.900 millions units per annum contributing to a peak load saving of 39.94 MW.

Priority For Women - Towards Greater Empowerment

 

  • Women have occupied pride of place in the Bank in employment as well as in credit dispensation.
  • Bank pioneered the concept of "All Women Branch". The first such branch at Seshadripuram in Bangalore was opened as early as 1962.
  • Over 30% of credit outstandings under Govt. sponsored anti poverty schemes benefit women.
  • Out of 87,416 Self Help Groups financed by the Bank upto March 2007, 70327 groups with credit assistance amounting to Rs. 3780.000 millions are for women groups. Women groups constitute more than 80% both in terms of number of groups financed and credit assistance extended.
  • Out of total 0.225 million unemployed youth trained for taking up self-employment ventures at Syndicate Institute of Rural Development (SIRD) and RUDSETIs sponsored by the Bank, 0. 079 million constituting more than 35% are women candidates.

Computerisation - At The Frontiers Of Technology

 

1965  Installed first Data Processing machine at the Head Office.

 

1987  In House Computer at H.O. upgraded to ICIM 6000/40

1991  Established connectivity to SWIFT

 

1994  First totally computerised branch opened at Nehru Place Delhi

 

1995  E-Mail facility introduced at 26 branches

 

1996  First Telebanking facility introduced at South Block Branch New Delhi

 

1996  First ATM installed at Gandhi Nagar, Bangalore.

 

1997  Bank's website launched

 

1998  Joined Indian Financial Network (INFINET) and VSAT Network

 

2002  Centralised Banking Solution under the brand name "Syndicat-e-banking" launched at Delhi, Mumbai, Bangalore and Manipal.

 

2003  Syndicat-e-banking extended to more centres at Hyderabad, Mangalore, Kolkata, Chennai, Vasco-da-Gama, Ahmedabad, Mysore, Coimbatore, Jalandhar, Udupi, Ernakulam, Bhopal, Panaji Tumkur, Vijayawada, Pune, Tirupathi, Erode, Hubli, Visakhapatnam, Puttaparthi, Tirupur, Faridabad, Tuticorin, Bhubaneswar, Noida, Salem, Shimla, Kollam, Thane, Thiruvananthapuram and Ghaziabad.

 

2004  Syndicat-e-banking extended to more centres at Chandigarh, Jamshedpur, Margao, Shirdi, Kochi, Agra, Rajkot, Karwar, Karkala, Jaipur, Amritsar, Tiruchirapalli, Bellary, Gulbarga, Shimoga, Kanhangad, Chirakkal, Kottayam, Kozhikode, Payyanur, Punalur, Thiruvalla, Thrissur, Gwalior, Nagpur, Pondicherry, Khanna, Udaipur, Karun(TN), Dehradun, Aligarh, Meerut, Raniganj, Valiv, Dharwar, Kasargod, Guntur, Port Blair, Mapuca, Bhuj, Gandhidham, Jammu, Bokaro Steel City, Belgaum, Kannur, Kundara, Pandalam, Thalassery, Kavaratti, Indore, Madurai, Allahabad and Lucknow.

 

2005  Syndicat-e-banking extended to 143 branches during this year.
SyndBillPay Scheme launched through InternetBanking.
Excise and Service Tax payments scheme through Internet Banking launched

 

2006  Business in CBS branches increased to Rs.65,006 Crore as on 30.06.2006
Syndicat-e-Banking Branches increased to 618 as on 30.06.2006
Internet Banking users users increased from 8300 in March 2005 to 17,432 as on 30.06.2006
No. of hits in Internet Banking increased over 210% during the above period.

 

 

Moving Towards Customer Delight

 

  • All their 2128 branches are computerised/mechanised extending, accurate and prompt services.
  • 7 day banking introduced in 209 branches
  • Extended business hours introduced in 603 branches
  • Demat facility introduced at Mumbai, Hyderabad, Bangalore, Delhi, Ernakulam and Vijayawada.
  • 800 ATMs/ Cash Dispensers installed as on date
  • Tele Banking facility introduced in 245 branches

21st Century Challenges - Facing The Future

 

  • 21st century will be dominated by Information Technology, knowledge and competition. Bank is gearing itself adequately to meet these challenges.
  • Bank has planned to increase the coverage of Syndicat-e-Banking to 1500 branches as on 31st March 2007. This covers providing of e-Banking services through electronic channels viz. ATM, Telebanking and Internet banking.
  • Knowledge and skill levels of employees are being upgraded on an on-going basis through strengthening of the training infrastructure with computer labs and other modern teaching methods.
  • Bank's constant focus is to provide innovative products and services for moving towards its role as customer's faithful and friendly financial partner.

Awards Won By The Bank Over The Years

 

1972  INDIAN MERCHANTS' CHAMBER AWARD for outstanding contributions towards welfare of community

 

1974  INDIAN MERCHANTS CHAMBER AWARD for outstanding contribution in promotion of savings

 

1975  FICCI AWARD For outstanding achievements in agriculture

 

1975  LAGHU UDYOG SAHAKARI AWARD by the national alliance of young entrepreneurs for bank's significant contributions to the development of small scale industries and assistance to the young entreprenueurs through self employment clinics

 

1975  INTERNATIONAL AWARD by JAYCEE INTERNATIONAL for self employment

 

1975  FICCI AWARD in recognition of corporate initiative in industrial relations

 

1975  CERTIFICATE OF MERIT for Bank's house journal "GIANT"

 

1976  INTERNATIONAL AWARD by JAYCEE international for outstanding contribution to the cause of the JAYCEE movement

 

1977  ASSOCHAM AWARD for promotion of rural and agricultural activities of Syndicate Agriculture Foundation sponsored by the bank

 

1978  INDIAN MERCHANTS CHAMBER AWARD for outstanding contribution towards welfare of the community

 

1978  NATIONAL TROPHY For outstanding export performance

 

1981  NATIONAL INVESTMENT AND FINANCE AWARD for Priority Sector lending.

 

1990  CHAUDHARI CHARAN SINGH MEMORIAL NATIONAL AWARD for Rural Development

 

1999  FICCI AWARD for institutional initiative in the field of "Rural Development" to RUDSETI jointly sponsored by Syndicate Bank

 

2001  Banking Technology Award for innovative use of Banking Applications on INFINET awarded by IDRBT, Hyderabad

 

2003  Banking Technology Award conferred on SyndicateBank by IDRBT, Hyderabad for 2003

 

2006  Institute for Development and Research in Banking Technology (IDRBT), established by Reserve Bank of India has conferred Syndicate Bank, " Special Award for Use of IT for Customer Service in Semi-Urban and Rural Areas". The award was given to Shri C P Swarnkar, Chairman & Managing Director, Syndicate Bank by Dr Y.V. Reddy, Honble Governor, Reserve Bank of India on Sept. 02, 2006 at Hyderabad.

 

 

Disclaimer: The contents of this website are purely for information dissemination.It does not constitute any solicitation of business

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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

UK Pound

1

Rs.81.74

Euro

1

Rs.56.15

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

10

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--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

 

81

 

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.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

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

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions