MIRA
INFORM REPORT
|
Report Date : |
19.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
UNION BANK OF |
|
|
|
|
Registered Office : |
239, Vidhan Bhavan Marg, Nariman Point, Union Bank Bhavan, Mumbai –
400021, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
1919 |
|
|
|
|
Legal Form : |
Public sector commercial bank |
|
|
|
|
Line of Business : |
All types of banking business. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed bank owned by the Government of India. It is a profit-making bank. Lenders and creditors can feel confident of Government of India’s exposure to them. General financial position is satisfactory. Subject can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
239, Vidhan Bhavan Marg, Nariman Point, Union Bank Bhavan, Mumbai –
400021, |
|
Tel. No.: |
91-22-22024647 / 22026049 / 22892000 |
|
Fax No.: |
91-22-22881979 / 22851167 |
|
E-Mail : |
1. webmaster@unionbankofindia.com |
|
Website : |
|
|
|
|
|
Branches : |
All Over |
DIRECTORS
|
Name : |
Mr. R S Reddy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M V Nair |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. B S Bhalla |
|
Designation : |
Director |
|
Designation : |
I.A.S. |
|
Age : |
40 years |
|
Experience : |
17 years |
|
Date of Appointment: |
24/01/2005 |
|
|
|
|
Name : |
Prof. Nandlal L Sarda |
|
Designation : |
Director |
|
Age : |
56 years |
|
|
|
|
Name : |
Mr. R R Nair |
|
Designation : |
Director |
|
Age : |
65 years |
|
|
|
|
Name : |
Mr. M S Sriram |
|
Designation : |
Director (Part time Non – Official) |
|
|
|
|
Name : |
Mr. K S Sreenivasan |
|
Designation : |
Director (Part time Non – Official) |
|
|
|
|
Name : |
Mrs. Rani Satish |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Debasis Ghosh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S V Dange |
|
Designation : |
Director |
|
Age : |
53 years |
|
|
|
|
Name : |
Mr. T Y Prabhu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K Sivaraman |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Government of |
280000000 |
55.43 |
|
Non Residents |
101019736 |
20.00 |
|
Banks/Financial Institutions/Insurance Companies |
12802452 |
2.54 |
|
Mutual Funds/UTI |
20357145 |
4.03 |
|
Domestic Companies/Private Body Corporate Bodies/Trusts |
13357686 |
2.64 |
|
Resident Individuals |
77580881 |
15.36 |
|
Total |
505117900 |
100.000 |
BUSINESS DETAILS
|
Line of Business : |
All types of banking business |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
25645 |
|
|
|
|
Bankers : |
Reserve Bank of |
|
|
|
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Ř
S N Dhawan & Company Chartered Accountants Ř
V K Verma &
Company Chartered Accountants Ř
Chandiok & Guliani Chartered Accountants Ř
Raj K Aggarwal & Associates / Batliboi and
Purohit Chartered Accountants Ř
Batliboi & Purohit Chartered Accountants Ř
Lodha & Company Chartered
Accountants |
CAPITAL STRUCTURE
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
505120000 |
Equity Shares |
Rs.10/- each |
Rs.5051.200
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
Capital |
5051.200 |
5051.200 |
4601.200 |
|
Reserves and Surplus |
46847.500 |
40530.400 |
31543.200 |
|
Deposits |
851802.200 |
740943.000 |
618305.900 |
|
Borrowings |
42155.300 |
39744.000 |
20209.500 |
|
Other Liabilities &
Provisions |
81940.600 |
65470.200 |
49766.500 |
|
TOTAL |
1027796.800 |
891738.800 |
724426.300 |
|
|
|
|
|
|
Cash & Balances with RBI |
59175.700 |
43872.700 |
36471.800 |
|
Balances with Banks & money
at Call & Short Notice |
25088.700 |
20032.400 |
29247.900 |
|
Investments |
279817.700 |
259176.500 |
227927.900 |
|
Advances |
623864.300 |
533799.600 |
401050.800 |
|
Fixed Assets |
8250.000 |
8104.200 |
8237.900 |
|
Other Assets |
31600.400 |
26753.400 |
21490.000 |
|
TOTAL |
1027796.800 |
891738.800 |
724426.300 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Interest Earned |
73821.800 |
58637.100 |
49697.900 |
|
Other Income |
12211.700 |
8196.700 |
7667.100 |
|
TOTAL |
86033.500 |
66833.800 |
57365.000 |
|
|
|
|
|
|
Interest expended |
45919.600 |
34894.200 |
29052.400 |
|
Operating Expenses |
20105.600 |
17276.100 |
12581.000 |
|
Provisions & Contingencies |
11554.400 |
7911.700 |
8541.000 |
|
TOTAL |
77579.600 |
60082.000 |
50174.400 |
|
|
|
|
|
|
Net Profit for the year |
8453.900 |
6751.800 |
7190.600 |
|
Prior Year Adjustments |
0.000 |
0.000 |
0.000 |
|
Profit brought forward |
05.500 |
409.900 |
774.400 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Sales Turnover |
|
|
21111.500 |
|
Other Income |
|
|
1783.300 |
|
Total Income |
|
|
22894.800 |
|
Total Expenditure |
|
|
5795.000 |
|
Operating Profit |
|
|
17099.800 |
|
Interest |
|
|
13398.800 |
|
Gross Profit |
|
|
3701.000 |
|
Depreciation |
|
|
0.000 |
|
Tax |
|
|
1450.000 |
|
Reported PAT |
|
|
2251.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Deposit Ratio |
|
72.68 |
68.78 |
61.42 |
|
Investment Deposit Ratio |
|
33.84 |
35.84 |
40.70 |
|
Cash Deposit Ratio |
|
6.47 |
5.91 |
5.38 |
|
Interest Expended/Interest Earned |
|
62.20 |
59.51 |
58.46 |
|
Other Income/Total Income |
|
14.19 |
12.26 |
13.37 |
|
Operating Expense/Total Income |
|
23.37 |
25.85 |
21.93 |
|
Interest Income/Total Funds |
|
7.73 |
7.30 |
7.66 |
|
Interest Expended /Total Funds |
|
4.81 |
4.34 |
4.48 |
|
Net Interest Income/Total Funds |
|
2.92 |
2.96 |
3.18 |
|
Non Interest Income/Total Funds |
|
1.28 |
1.02 |
1.18 |
|
Operating Expense/Total Income |
|
2.10 |
2.15 |
1.94 |
|
Profit Before Provisions/Total Funds |
|
2.09 |
1.83 |
2.42 |
|
Net Profit/Total Funds |
|
0.89 |
0.84 |
1.11 |
|
Return On Net Worth(%) |
|
19.16 |
18.67 |
25.05 |
LOCAL AGENCY FURTHER INFORMATION
History
Union Bank of
UBI is an innovative commercial bank by reflecting to the changing needs
of the society. This has resulted in a wide range of products and services,
made available to its valuable clientele in catering to the smallest of their
needs. The bank maintains the leadership by its efficient, value added
services, sustained growth , consistent profitability and development of new technologies.
The success of any organization lies with its people. The bank has a
family of about 26,000 qualifies / skilled employees. They are dedicated and
delighted to serve the discerning customer with professionalism and
wholeheartedness.
UBI is a public sector bank with 55.43% of share capital held by the
government of
Over the years, the bank has earned the reputation of being a
techno-savy and is a front runner among public sector banks in modern day
banking trends. It is one of the pioneer public sector banks, which launched
core banking solution in 2002. Under this solution more than 950 branches/
extension counters of the bank have been 659 networks ATMs, with online tele
banking facility made available to all its core banking customers – individual
as well corporate
In a strategic alliance the bank entered into a MOU with IL and FS
limited to established a platform for providing banking and custodial cum demat
services to foreign institutional investors investing in the Indian capital
market. The alliance is envisaged between the two entities primarily for the
purpose of tapping business opportunities generated form the investments
made by FII in the capital market.
Director’s Report:
Scaling new
financial frontiers:
The bank continued its growth momentum taking the total business mix to Rs.
1488380.000 millions as on 31st March, 2007 registering a growth of 15.61% over
the previous year's figure of Rs.1287380.000 millions.
The Bank's total deposits reached a level of Rs.851800.000 millions in March
2007 showing a growth of 14.96% over the previous year's level of Rs.740940.000
millions. An important feature of this growth was the increase of 214 bps in
the share of low cost demand deposits from 32.36% to 34.50%.
Riding on the back of the demand-driven growth of the Indian economy,
particularly in the manufacturing and service sectors, the bank's credit
portfolio expanded by 16.50% to touch Rs.636580.000 millions as on 31st March,
2007 from the previous year's level of Rs.546440.000 millions. The growth recorded
in the Bank's thrust areas viz. Agri business , SME and Retail were much higher
at 30%, 35% and 17% respectively. The shift in strategy to move away from bulk
advances and to focus on these segments paid rich dividends as the yield on
advances improved substantially from 8.18% in 2005-06 to 8.98% in
2006-07.
Branch
Network:
The bank has opened 124 branches including upgradation of 9 extension counters,
mergers of 2 branches and conversion of one branch into Satellite Office
thereby taking the total number of branches to 2206. The comparative position
of the branch network in 2005-06 & 2006-07 is depicted in the table below:
MANAGEMENT DISCUSSIONS & ANALYSIS 2006-07
Macroeconomic
Scenario:
For the fourth year in
succession, the Indian Economy witnessed accelerated growth in all segments
barring agriculture. In terms of the advanced estimates released by the Central
Statistical Organisation (CSO), real GDP growth is expected to grow to a level
of 9.2% in 2006-07 as compared to 9% in 2005-06. This acceleration has been
driven by the continued momentum in the service and manufacturing sectors.
However, the growth in agriculture and allied activities has been estimated to
substantially slow down from 6.0% in 2005-06 to 2.7% in 2006-07.
Year on year industrial growth in March 2007 was 11.3% as against 8.2% achieved
in the previous year, mainly contributed by the robust performance by the
manufacturing sector. For the whole year 2006-07 electricity generation grew by
7.2% compared with 5.2% in the previous year. Mining recorded higher growth at
5.1% during 2006-07 as against meagre 1% in 2005-06. The infrastructure sector
also grew by an impressive 8.6% in 2006-07 as compared with 6.2% the previous
year. The rise has been fuelled primarily by higher crude oil output and
production in refineries.
The services sector with a
growth rate of 10.8% during December 2006 compared to 9.1% a year ago also
continued to be the key driver of economic activity along with the
manufacturing sector.
Savings and Investment:
Gross Domestic Savings
(GDS), as percentage of GDP at current market prices, increased from 31.1% in
2004-05 to 32.4% in 2005-06 due to improvement in private corporate and
household savings. The corporate savings rate has nearly doubled between 2002-03
and 2005-06 on the back of strong growth in profitability. While the overall
savings rate increased by 1.3% points of GDP in 2005-06, the overall investment
rate increased by 2.3% points of GDP to 33.8%.
Business Confidence Survey:
As per the Reserve Bank of
Liquidity scenario:
Broad money growth
accelerated to 20.8% as at the end of March 2007 from 17.0% and as such,
remained above the indicated level projected by Reserve Bank of
Despite the increase of
Bank's investment in SLR securities during the year, SLR investments, as a
proportion of NDTL, declined further during 2006-07.
Liquidity remained tight
for most part of the year, which is reflected in the movement of call rates
also. Inflation movements in 2006-07 were driven by primary food articles and
manufactured products prices reflecting the impact of both supply side and
demand side pressures. The inflation which remained within the projections of 5
to 5.5% until 11th November 2006 started moving beyond the projected trajectory
and crossed 6% between January 6, 2007 and March 24, 2007.
The continued high growth,
inflation coupled with escalating asset prices had shown signs of overheating
in the economy that resulted in hike in interest rates, which started moving
northwards.
The Reserve Bank of India
effected an increase of 150 basis points in Cash Reserve Ratio (CRR) commencing
from December 2006, the last 25 basis point hike being effective from 28th
April, 2007. As a result of this, an amount of about Rs.430000.000 millions of
resources with banks is estimated to have been absorbed.
External Sector
During April-March 2006-07,
their country's merchandise export registered a growth of 23.88% while imports
have grown by 29.29%. During April-March 2006-07 crude oil imports were valued
at US$ 57.2 billion which was 30.31% higher than crude oil imports of US$ 43.9
billion in the corresponding period last year. The trade deficit for
April-March 2007 was estimated at US$ 56.7 billion, which was higher than the
deficit of US$ 39.6 billion during April-March 2006.
FDI inflows at US$ 16.4
billions during April-January 2006-07 were substantially higher than the
inflows in the corresponding period of the previous year. FDI was mainly
channeled into financial services, manufacturing, banking services, IT and
construction. Portfolio equity inflows by FII was lower due to meltdown in
global commodity and equity markets, fall in Asian equity markets on account of
concerns of slow down in the US economy. The net FII inflow during 2006-07 was
US$ 3224 millions as against US$ 9926 millions in 2005-06.
India's foreign exchange
reserves were US$ 199.2 billion as on 31st March, 2007 showing an increase of
US$ 47.6 billion over March 2006 levels.
As on 13th April, 2007,
Forex Market:
The exchange rate of the
rupee against the greenback, which was Rs.44.61 at end March 2006 depreciated
to Rs.46.95 by July 19,2006. But, it appreciated thereafter to 43.59 by end
March 2007. Overall, during 2006-07, the rupee appreciated by 2.3 percent
against the
Annual Policy
2007-08:
The stance of the Monetary Policy
in 2007-08 is strongly in favour of reinforcing the emphasis on price stability
and lower inflation levels while simultaneously promoting economic growth by
ensuring appropriate liquidity in the system to take care of all legitimate
requirements of credit. It is also expected that the interest rate environment
will support export and investment demand.
Banking Industry Trends 2006-07:
The demand for bank credit
marginally abated during the year and the Scheduled Commercial Banks' non-food
credit registered a growth of 28% as at end March 2007 on top of 31.8% growth
in the previous year. The incremental credit deposit ratio of SCBs, which has
remained above 100% during the previous year 2005-06 exhibited some moderations
and fell to 86% in 2006-07.
Growth in deposits during
2006-07 was 23% over the level of 2005-06. However, growth in Demand Deposits
at 15.2% as on 31 st March, 2007 was lower than the growth of 26.5% in the
previous year, The time deposits of banks grew by 22.8% year-over-year by end-March
2007 from 15.3% a year ago, which may be considered resulting from higher
economic activities, higher interest rates and extension of tax benefits under
Sec 80C for deposits of maturity 5 years and above.
Global Developments:
Global GDP growth projected
for 2007 is 4.9% which is 0.5% down from 5.4% achieved in 2006. Global economy
is faced with number of risks emanating from the behaviour of oil prices,
adverse developments in
Inflation remained a major
global risk and monetary authorities are vigilant about the emergence of
excessive volatility in asset prices, under pricing of risk and disorderly
conditions in currency market.
After seventeen continuous
increases by 25 bps each between June 2004 to June 2006 the Federal Reserve
maintained status quo between August 2006 and March 2007.
Credit Management
The Bank has posted a
credit growth of 16.5% last year with total advances improving to Rs. 636580.000
millions as of 31st March 2007 from Rs.546440.000 millions as of 31st March
2006. The moderate growth witnessed was the result of the Bank's decision to
rebalance its portfolio.
However, the growth engines
viz. agri-credit, Small & Medium Enterprises (SME) and Retail credit
segments witnessed an encouraging growth of 30%, 35% and 17% respectively. This
change in focus towards high yielding advances has a salutary effect on the
yield on advances, which improved from 8.18% to 8.98%.
During the year, the Bank
and Bank of India joined hands with Infrastructure Development Finance Co. Ltd
(IDFC) for loan syndication.
Through this tie-up, the
Bank can build up a portfolio of quality assets and the customer's project
finance needs will be met at a single point.
SME Credit:
SME segment has witnessed a
credit growth of 35.06% with the outstanding at Rs.88330.000 millions as of
31.03.2007 as against Rs.65400.000 millions in the previous year.
In order to give a further boost to the portfolio under SME Credit, the Bank
entered into an MOU with SIDBI for joint lending to Small & Medium
Enterprises. This arrangement will facilitate identification of SME clients by
SIDBI and the Bank in select industrial clusters of the country for intensive
financing. The Bank has identified 51 such industrial clusters during the
year.
Retail Lending:
Retail Lending has
continued to be the thrust area of the Bank as it provides better spreads and
the risk is dispersed among a large number of borrowers. During the year Bank
has introduced the concept of 'Centralized Processing Centre' (CPC) with the
objective to centralize retail loan processing in order to simplify and
speed-up the process of lending by expeditious sanction and disbursement of
retail loans. Bank has already opened 11 CPCs at major centers across the
country. The Bank proposes to open another 22 CPCs during the year 2007-08. 23
Retail Marts were opened during the year taking total tally to 55 and the
outstanding credit advanced by these Retail Marts stood at Rs.15890.000
millions as of March, 2007.
Bank's retail lending
portfolio increased from Rs.115530.000 millions to Rs.135290.000 millions
during the year 2006-07 registering a growth of Rs.19760.000 millions which
works out to 17%.
Priority Sector Lending:
Priority Sector Advances
attained an outstanding level of Rs.26675 millions as on 31.3.2007 constituting
45% of the Net Bank Credit as against the mandatory stipulation of 40% by
Reserve Bank of
Treasury Operations:
The Bank's Treasury
Operations are integrated, whereby the domestic and foreign exchange funds are
managed centrally. The primary objective of the integrated treasury operations
is compliance with regulatory requirements, ensuring adequate liquidity to meet
Bank's commitments and maximizing profits through optimum deployment of funds.
As the apex center monitoring the resources inflows and funds
deployment/outflows, the Treasury also integrates the Asset Liability
Management of the Bank. The Treasury is ISO 9001:2000 certified.
In addition to traditional
functions such as liquidity management, compliance with regulatory requirements
including maintenance of CRR/SLR, the treasury operations focused on judicious
deployment of funds, Derivative Transactions for hedging customers' financial
exposures as well as its own balance sheet exposures. Products like Union
Bullion, Metals Loans and Gold Forwards have found acceptance with the focused
clientele.
Besides managing funds at different centers of operation, the Treasury also
undertakes proprietary positions in different segments like debt, equity,
foreign exchange etc. As the gateway transactions for the Real Time Gross
Settlement System (RTGS) and main hub for Society for World Wide Inter-Bank
Financial Telecommunications (SWIFT) the Treasury has a prominent role in
messaging and remittance arrangements as well. All the CBS branches of the Bank
are RTGS enabled.
International Banking
The bank recorded a robust
growth in international banking Business.
The foreign exchange
turnover, which was Rs.408940.000 millions in 2005-06, has reached the level of
Rs.522540.000 millions during the year, showing a growth of 27.78%
The Bank is having a
correspondent relationship with 301 leading international banks at all major
international centers. The Bank has entered into Rupee Drawing Arrangement
(RDA) with 23 International Banks and 14 Exchange Houses in the
9.3 Outstanding Export credit, which was at a level of Rs.51890.000
millions as on March 2006, improved to Rs.57690.000 millions in March 2007,
recording a growth of 11%.
Bullion Business:
The Bank is one of the
leading players in the Bullion market and offers various financial products
related to Bullion at 10 centers in the country. Presently, Bank is offering a
range of products including metal loan to exporter and domestic jewellery
manufacturers, gold forward and sale of gold procured on consignment basis.
During the year, the Bank has sold 32,626 Kgs. gold having value of Rs.
26390.000 millions.
The Bank has also started sale
of Gold coins from October 2006 and Gold coins are sold through CBS
branches.
Overseas Operations:
Opening of Branches and
representative office at overseas locations picked up momentum during the
current financial year. The Bank is planning to open its Representative office
in
The Bank is awaiting the
Hong Kong Monetary authority's approval to open a Branch at
Press Release
Union
Bank launches Business Process Re-engineering exercise
Union Bank of
The Bank’s business strategy has identified Small &
Medium Enterprise (SME), Retail Banking and Agri-business as growth engines,
which would drive business growth in a big way. The process re-engineering
initiative is, therefore, aimed mainly at these segments.
As a part of the exercise, the bank is centralizing sanction of loans to personal segments like Housing, Education and Vehicle Loans etc. at 33 select centres all over the country. This would enable speedier sanction of loans within stringent time deadlines. Further, due diligence, documentation, monitoring and recovery process will get strengthened which is expected to reduce slippages. Through this initiative the bank will be well equipped to exploit the opportunities thrown up in the retail segment by the changing demographic profile of the country’s work force with the working age population being projected to increase by 13 million per year.
Similarly, the processing and sanction of Small and Medium Enterprise (SME) loans would also be shifted to over 15 Centralised Processing Centres (CPCs) located in cities / towns having industrial clusters. The branches would function as marketing points for these asset products, which would get appraised and sanctioned at CPCs. The customer would thus have the advantage of getting a professionalised service and speedier response to his loan application. Establishment of Centralised Processing Centres for SME sector would facilitate developing domain expertise on cluster specific industries and need based product development matching the requirement of the segment. This would also enable ‘ relationship’ focus to address in a wholesome way the diverse requirements of SME clients. The strategy would involve partnering with rating agencies to offer differential pricing based on the risk profile of the customer.
On the Agri-business front, the bank has planned to scale up the coverage of number of villages from the existing 17,000 to 25,000. Through extensive use of cost effective technology by way of bio-metric cards and hand-held devices the banking services would be extended to the door-steps of the rural house hold. Expanding the rural out-reach through ‘“Business Facilitators and Business Correspondents” model and enlarging the network of Village Knowledge Centres which facilitate knowledge sharing among the farmers on issues impacting their activities are the other strategies that the Bank has put in place to increase its foray into the rural segment in a profitable way.
As a further measure to enable the branches to focus on marketing, the back office processes like clearing work, account opening, issue of cheque book, dispatch of statement of accounts etc. will be spun off from the branches. These and other back office transactions would be carried out from the centralised back offices.
In effect, the branch would function like a ‘retail store’ and, apart from accepting savings and other deposit accounts, would sell third party products like, Insurance, Mutual Funds etc. and offer technology enabled services like e-remittances, on-line trading in shares, depository services and on-line tax collection.
The bank has engaged the services of reputed Management Consultants, Boston Consulting Group to assist the bank in establishing this new business model and adopting the best business practices in running the new model.
Simultaneously, the training system has been geared up towards large scale training of staff on marketing skills and customer relationship management.
This new initiative is expected to take the bank to a higher growth trajectory, the result of which would be seen in the form of accelerated business growth from the third quarter of this year.
Union Bank To Reduce Rate Of
Interest On Deposits
Union Bank of
The downward revision in interest
rates comes as a response to the recent developments in the money market. “With
the inflation rate coming down to 4.3 % and market experiencing comfortable
liquidity conditions, a reduction in interest rates is only logical” said Shri
M.V. Nair Chairman and Managing Director of the Bank.
The reduction in interest rates
will be effective 1st August 2007
The Bank is confident of meeting its goals in deposit mobilization for the year ended March 2008.
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 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 |
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 |
|