MIRA INFORM
REPORT
|
Report
Date : |
17.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
VIJAYA
BANK |
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Registered
Office : |
41/2, |
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Country
: |
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Financials
(as on) : |
31.03.2007 |
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Date
of Incorporation : |
23rd October, 1931 |
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|
Legal
Form : |
A Nationalized Public Sector Bank owned by the Government
of India. |
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Line
of Business : |
Banking
Activity. |
RATING
& COMMENTS
|
MIRA’s
Rating : |
A |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
75870000 |
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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 an old, well established Bank of the Government of India, with a
shareholding of 72.16%. Subject is in the business of all kinds of banking
activities. The Bank has done splendid performance on the profitability front
during the financial year 2003-04. The banks trade relations are fair.
Payments are always correct and ass per commitments. It can be
considered good for any kind of business dealings. |
LOCATIONS
|
Registered
Office : |
41 / 2, |
|
Tel.
No.: |
91 - 80 –
25584066 (20 lines) |
|
Fax
No.: |
91 - 80 –
25598040 |
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E-Mail
: |
|
|
Website
: |
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|
Telex
: |
0845 -
2428 0845 -
3109 0845 -
8637 0845 –
8592 |
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|
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Head
Office : |
41 / 2, |
|
Tel.
No.: |
91 - 80 –
25584066 (20 lines) |
|
Fax
No.: |
91 - 80 –
25598040 |
|
E-Mail
: |
|
|
Website
: |
|
|
Telex
: |
0845 -
2428 0845 -
3109 0845 -
8637 0845 –
8592 |
|
|
|
|
Branches
: |
The Bank operates from a network of 978 branches. |
DIRECTORS
|
Name : |
Mr. Prakash P Mallya |
|
Designation
: |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. T. Valliappan |
|
Designation
: |
Executive Director |
|
|
|
|
Name : |
Mr. K. Venkatappa |
|
Designation
: |
Director - Nominee (RBI) |
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|
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|
Name : |
Mr. Mallikarjuna S. Madinur |
|
Designation
: |
Workmen Director – Nominee |
|
Date
of Birth/Age : |
20.02.1953 |
|
Qualification
: |
B. Com. CAIIB – I |
|
Experience
: |
Rich experience in Banking and Trade Union Movement. |
|
Date
of Appointment : |
02.11.2004 |
|
|
|
|
Name : |
Mr. R. Ashok Kumar |
|
Designation
: |
Director (Nominee – Shareholders) |
|
Date
of Appointment : |
03.08.2002 |
|
|
|
|
Name : |
Mr. Brij Mohan Sharma |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Ashok Kumar Shetty |
|
Designation
: |
Director – Nominee |
|
|
|
|
Name : |
Mr. R. Vaidyanathan |
|
Designation
: |
Director – Nominee |
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|
|
|
Name : |
Mr. G B Singh |
|
Designation
: |
Director – Nominee (Government) |
MAJOR
SHAREHOLDERS
As on 31.03.2007
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
|
|
Promoters’ Holdings |
|
|
|
Indian Promoters
(Government of |
233517800 |
53.87 |
|
Foreign
Promoters |
-- |
-- |
|
Person
Acting in Concert |
-- |
-- |
|
|
|
|
|
Sub Total |
233517800 |
53.87 |
|
|
|
|
|
Non Promoter’s
Holdings |
|
|
|
Institutional Investors |
|
|
|
Mutual Funds
and UTI |
3909606 |
0.90 |
|
Banks/Financial
Institutions, Insurance companies |
19255743 |
4.44 |
|
FIIs |
76937335 |
17.75 |
|
|
|
|
|
Sub Total |
100102684 |
23.09 |
|
|
|
|
|
Others |
|
|
|
Private Corporate Bodies |
11138286 |
2.57 |
|
Indian Public |
86394757 |
19.93 |
|
NRIs/OCBs |
2364273 |
0.54 |
|
Any Other |
-- |
-- |
|
|
|
|
|
Sub Total |
99897316 |
23.04 |
|
|
|
|
|
Grand Total |
433517800 |
100.00 |
Total Foreign Holding As on
31.03.2007
|
Particulars |
No. of Shares |
Percentage of Holding |
|
GDR |
-- |
-- |
|
Foreign Promoters |
-- |
-- |
|
Flls |
76937335 |
17.75 |
|
NRIs/ OCBs |
2364273 |
0.54 |
|
Foreign Banks |
-- |
-- |
|
Foreign National |
-- |
-- |
|
Total |
79301608 |
18.29 |
The list of shareholders holding
more than 1% of share of the Bank as on 31 -3-2007 is furnished in
Table - 3 below:-
|
Name
of Shareholder |
No. of Shares Held |
Percentage |
Category |
|
Government of |
233517800 |
53.87 |
Indian
Promoter |
|
Goldman Sachs Investments ( |
15827060 |
3.65 |
Fll |
|
Morgan Stanley and Company
International Limited |
15173323 |
3.50 |
Fll |
|
Copthall Mauritius Investments
Limited |
13796685 |
3.18 |
Fll |
|
L I C of |
10765930 |
2.48 |
Government
Sponsored Financial Institution |
|
Merrill Lynch Capital Markets
Espana S.A. |
10089285 |
2.33 |
FMF |
|
HSBC Global Investment Funds A/c
HSBC |
8468000 |
1.95 |
Fll |
BUSINESS
DETAILS
|
Line
of Business : |
Banking
Activity |
GENERAL
INFORMATION
|
No. of
Employees : |
11330. |
|
|
|
|
Bankers
: |
Reserve Bank of |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors
: |
Patel Mohan Ramesh and Company Chartered Accountants Aiyar and Company Chartered Accountants M. Kuppuswamy PSG and Company Chartered Accountants Uberoi Sood and Kapoor Chartered Accountants Rajendra K. Goel and Company Chartered Accountants
|
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150,00,00,000 |
Equity
Shares |
Rs. 10/-
each |
Rs. 15000.000 millions |
Issued,
Subscribed & Paid –up & Called-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23,35,17,800 |
Equity
Shares (held by Central Government) |
Rs. 10/-
each |
Rs. 2335.178 millions |
|
20,00,00,000 |
Equity
Shares (held by Public and Others) |
Rs. 10/-
each |
Rs. 2000.000 millions |
|
|
Total |
|
Rs. 4335.178
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 AND
LIABILITIES |
|
|
|
|
|
|
|
|
|
Capital |
4335.178 |
4335.178 |
4335.178 |
|
Reserves & Surplus |
14631.592 |
12356.347 |
11556.676 |
NETWORTH
|
18966.770 |
16691.525 |
15891.854 |
|
|
|
|
|
|
Deposits |
376044.993 |
277092.890 |
256179.840 |
|
Borrowings |
1981.400 |
5158.199 |
6408.262 |
|
|
|
|
|
TOTAL
|
396993.163 |
298942.614 |
278479.956 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
Cash and Balance with Reserve Bank of |
33997.135 |
22486.392 |
12821.072 |
|
Balances with Banks and Money at Call and Short
Notice |
16704.091 |
5864.989 |
3324.560 |
|
Investments |
120184.055 |
111797.006 |
120687.398 |
|
Advances |
242235.522 |
166640.109 |
143357.840 |
|
Fixed Assets |
1861.773 |
2024.908 |
2176.449 |
|
Other Assets |
8592.349 |
6527.548 |
10987.640 |
Total
Assets
|
423574.925 |
315340.952 |
293354.959 |
|
Less: CURRENT LIABILITIES & PROVISIONS |
26581.762 |
16398.338 |
14875.003 |
Total Current Liabilities
|
26581.762 |
16398.338 |
14875.003 |
Net
Current Assets
|
396993.163 |
298942.614 |
278479.956 |
|
|
|
|
|
TOTAL
|
396993.163 |
298942.614 |
278479.956 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
Sales Turnover
|
28231.123 |
23118.010 |
24479.805 |
Other Income
|
2747.892 |
2837.781 |
0.000 |
|
Total
Income |
30979.015 |
25955.791 |
24479.805 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
3313.445 |
1268.771 |
3805.678 |
Provision for Taxation
|
0.000 |
0.000 |
0.000 |
Profit/(Loss) After Tax
|
3313.445 |
1268.771 |
3805.678 |
|
|
|
|
|
Total Expenditure
|
27665.570 |
24687.020 |
20674.127 |
QUARTERLY / SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Type |
|
|
1st Qtr |
|
Sales
Turnover |
|
|
8982.300 |
|
Other
Income |
|
|
685.200 |
|
Total
Income |
|
|
9667.500 |
|
Total
Expenditure |
|
|
1957.800 |
|
Operating
Profit |
|
|
7709.700 |
|
Interest |
|
|
6346.200 |
|
Gross
Profit |
|
|
1363.500 |
|
Depreciation |
|
|
0.000 |
|
Tax |
|
|
263.000 |
|
Reported
PAT |
|
|
1113.500 |
200706 Quarter 1 :-- Provision and Contingencies
indicates provision for Non Performing Assets of Rs 81.20 million Tax Includes Provision
for Current Tax Rs 254.50 million Deferred Tax Rs (13.00) million Fringe
Benefit Tax Rs 8.50 million Status of Investor Complaints for the quarter ended
June 30, 2007 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 618 Complaints disposed off during the quarter 618
Complaints unresolved at the end of the quarter Nil 1. The above results have
been subjected to limited review by the Statutory Central Auditors and were
taken on record by the Board of Directors of the Bank at its meeting held on
July 30, 2007. 2. Working results for the quarter ended June 30, 2007 have been
arrived at after making necessary provisions. 3. The Bank has adopted revised
Accounting Standard 15 ' 'Employee Benefits' issued by the Institute of
Chartered Accountants of India, with effect from April 01, 2007. Transitional
liability of Rs 47.60 million on account of short term employee benefits upto
March 31, 2007 has been adjusted against the opening Revenue Reserves of the
Bank. 4. The figures of the previous period/year have been re-grouped and
re-classified wherever necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Credit Deposit Ratio |
62.60 |
58.13 |
54.43 |
|
Investment Deposit Ratio |
35.52 |
43.60 |
49.12 |
|
Cash Deposit Ratio |
8.65 |
6.62 |
4.63 |
|
Interest Expended/Interest Earned |
62.03 |
57.92 |
52.93 |
|
Other Income/Total Income |
11.87 |
13.88 |
18.25 |
|
Operating Expenses/Total Income |
20.35 |
23.36 |
21.57 |
|
Interest Income/Total Funds |
7.65 |
7.61 |
7.87 |
|
Interest Expended/Total Funds |
4.75 |
4.41 |
4.16 |
|
Net Interest Income/Total Funds |
2.91 |
3.20 |
3.70 |
|
Non Interest Income/Total Funds |
1.03 |
1.23 |
1.76 |
|
Operating Expenses/Total Income |
1.77 |
2.06 |
2.08 |
|
Profit Before Provisions/Total Funds |
2.17 |
2.36 |
3.38 |
|
Net Profit/Total Funds |
0.90 |
0.42 |
1.43 |
|
Return on Net Worth (%) |
19.09 |
8.04 |
27.05 |
STOCK PRICES
|
Face
Value |
Rs. 10.00 |
|
High |
Rs. 60.15 |
|
Low |
Rs. 58.55 |
LOCAL
AGENCY FURTHER INFORMATION
HISTORY
Subject was
established on 23rd October, 1931 at
Subsequently,
the bank became a scheduled bank in the year 1958.
The bank
was nationalised on 15th April, 1980.
Subject was established on 23rd October, 1931 in
Bangalore, Karnataka, Late Sri, A. B. Shetty was the founding father of the
Bank with an objective to promote banking among the farming community of
Dakshina Kannada district. The Bank became a scheduled Bank in the year 1958.
It grew steadily into a large all India Bank by merging with 9 smaller banks
during year 1958. The Bank was
nationalised on 1980 with the 100% holding by the Government of India.
In January 2001, the Bank came out with its Initial Public
Offer of for Rs. 1000 millions comprising an issue of 100 millions equity
shares of Rs. 10/- each for cash at par. The main object of the issue was to
augment the capital base of the Bank to meet its future capital adequacy
requirements and to shore up the capital funds needed for healthy asset
expansion and profitability. The Bank’s board decided to issue the shares at
par to reward the investors in the future. After the issue, the shareholding of
Government of India has come down from 100% to 72.16%.
The Bank adjusted its accumulated losses of Rs.2970.700
millions against the paid-up-capital of the Bank in March 2000.
It has a well spread branch network, in all the 25 States
and
Currently it is having 866 branches of which 58 are
specialised branches. It is also having 63 extention counters.
Biodata
Vijaya Bank was established on 23rd October, 1932 in
Mangalore, Karnataka. Late Sri. A.B. Shetty was the founding father of the bank
with an objective to promote banking among the farming community of Dakshina Kannada
district. The bank became a scheduled bank in the year 1958. It grew steadily
into a large all India bank by merging with 9 smaller banks during 1963-68. The
bank was nationalised on 1980 with the 100% holding by the government of
In Jan. 2001 the bank came out with its Initial Public Offer (IPO) of for Rs
100 crore comprise an issue of 10 crore equity shares of Rs 10 each for cash at
par. The main object of the issue is to augment the capital base of the bank to
meet its future capital adequacy requirements and to shore up the capital funds
needed for healthy asset expansion and profitability. The bank's board decided
to issue the shares at par to reward the investors in the future. After the
issue, the shareholding of Govt of India has come down from 100% to
72.16%.
It has a well spread branch network, in all the 25 States and
At the end of the financial year 2003-04,the bank has 866 branches of which 58
are specialised branches. It is also having 63 extention counters.The total
includes 19 new branches which were inaugurated during the financial year
2003-04.
The bank has increased its branch network to 910 at the end of the Fiscal year
2004-05 by opening of 41 new branches.The net NPA ratio has declined from 0.91%
as at 31.03.2004 to 0.59% as on 31.03.2005.The NPA coverage ratio has improved
to 80.40% as against 73.50% in the previous year.
The bank has been chosen as the Best Bank of the year 2003-04 by 'Business
Standard'.
During 2005-06, the bank opened 11 new branches and upgraded 2 extension
counters into full fledged branches. As a result, the total number of branches
increased from 910 in March 2005 to 923 in March 2006, spread over in 28 States
and 4
Overview
Vijaya Bank
has the highest number of branches in its home state Karnataka.
During the financial year 2006-2007 the bank has
opened 43 Branches, upgraded 10 extension counters, converted 2 Regional
Foreign Exchange cells into full fledged Overseas Branches.
In line with the prevailing trends, the bank has been giving
greater thrust towards technological up gradation of its operations. The bank
has network of 985 branches, 52 Extension Counters and 171 ATMs. [As at July
2007] 500 branches, 35 extention counters, 11 service branches are functioning
on CBS platform, and at 207 centers, covering 83.41 % of Bank's business.
Realising your constantly evolving and diverse needs, the
bank has diversified too. Entering several new areas
such as credit card, merchant banking, hire purchase and
leasing, and electronic remittance services.
Vijaya Bank is one among the few banks in the country to
take up principal membership of VISA International and MasterCard
International.
The driving force behind Vijaya Bank's every initiative has
been its 11257 strong dedicated workforce.
Official Language Implementation :
The Official Language Division at H.O. is headed by
Assistant General Manager and is assisted by one Senior Manager, One Manager,
One Assistant Manager alongwith clerical staff. Apart from this 10 Rajbhasha
Adhikaris are posted to various H.O. Departments. All the 17 Regional Offices
are being provided with one Rajbhasha Adhikari each.
Books, Glossaries -
All the H.O. Departments/Branches/Offices of the Bank are being provided with
English-Hindi, Hindi-English glossaries. Books on Banking and of General
interest in Hindi are being provided to the Regional Offices and to H.O.
Library every year. The Bank has been implementing Hindi in all areas of
banking since its nationalisation. At H.O. there is seperate Official Language Division
which ensures implementation of the Official Language Policy of the Government
of India. The Bank has created Official Language Sections in its Regional
Offices. The Official Language Implementation Committees of the
Branches/Offices of the Bank are regularly meeting once in 3 months to review
the progress achieved and to plan for effective implementation of the Language
in all aspects of banking.
Incentive Scheme -
The Bank imparts working knowledge of Hindi to its employees and also trains English
Stenographers/English Typists in Hindi stenography/Hindi typing. The incentive
on passing to pass Prabodh, Praveen and Pragya is in the range of Rs.500/- to
Rs.1, 200/- and on passing Hindi stenography/Hindi typing the incentive being
paid is in the range of Rs.500/- to Rs.1,000/-
Notification of Branches Under Rule 10(4) -
The Bank has so far notified 297 Branches/Offices under Rule 10(4) of O.L.
Rules, 1976.
Hindi Section in the House Magazine -
The Hindi section of Bank House Magazine 'VIJAYA VIKAS' contains articles on
Banking, Administration, Literature, etc.
Other Application -
'Hoshiyar' the quarterly magazine of Central Inspection Dept. of H.O. is being
printed bilingually.
Bilingual Software -
The Bank has procured a corporate licence for 'Akruti Office 2006' for
the bank and is in the process of installation on all machines where
Microsoft Office is working
Some
Important Aspects of Hindi Implementation -
Ö
All
Letters received in Hindi are being replied in Hindi.
Ö
The
sign boards, counter boards and name plates of Officers are available/displayed
in Regional language, Hindi and English.
Ö
The
letter heads, forms, registers, visiting cards, identity cards and all items of
stationery are in bilingual form.
Ö
Publicity
material are in Hindi and English.
Ö
Publications/booklets
are in Hindi and English.
Ö
Cheques
drawn in Hindi are being accepted.
Ö
We
welcome correspondence in Hindi.
Ö
Applications,
forms, etc. filled in Hindi are accepted by the Bank.
Ö
Heads
of the files are written in Hindi and English.
Ö
Invitations
of Bank functions are printed in Regional language, Hindi and English.
Ö
The
advertisements of All India nature are released in Hindi and English.
Economic
Scenario:
The Indian economy has
maintained the growth momentum of the previous three years during 2006-07 also.
The growth rate of the country's Gross Domestic Product (GDP) is likely to be
higher at 9.2 percent in 2006-07 as compared to 9.0 percent in the previous
year. The growth rates of the agriculture, industry and service sectors are
estimated at 2.7%, 10.2% and 11.0% for 2006-07 as compared to 6.0%, 8.0% and
10.3% in the previous year. The acceleration in the growth of manufacturing
sector from 9.1% in 2005-06 to 12.1% in 2006-07 was the key driver of
industrial growth. Most of the sub-sectors in the Services Sector have also
performed better during 2006-07.
The growth in trade, hotels, transport, storage and
communication rose from 10.4%'to 13.0% in 2006-07. The growth of financial,
real estate and business services improved from 10.9% in 2005-06 to 11.1% in
2006-07. The growth of agricultural sector however declined from 6% in 2005-06
to 2.7% in 2006-07, due to shortfall in the case of rice, coarse cereals and
oilseeds and lower outputs due to decline in acreage. The share of Agricultural
Sector in the real GDP declined from 19.7% to 18.5% during the year 2006-07,
while the Services Sector improved its share from 60.9% to 61.9% with Industry posting
a marginal increase from 19.4% to 19.6%.
Broad Money (M3) growth accelerated to 20.8% as at end-March, 2007 from 17% a
year ago. There were genuine concerns on the inflation front with inflation rate
on a upward trend for most part of the year 2006-07. The wholesale price index
rose by 5.7% in 2006-07 as against 4.1% in 2005-06.
Consumer Price Inflation remained above the WPI inflation
throughout the year, mainly reflecting the impact of higher food prices. On an
average basis, annual inflation increased from 4.4% in 2005-06 to 5.4% in
2006-07.
The buoyancy witnessed in the country's foreign trade in
recent years continued in 2006-07 as well.
Merchandised exports in US dollar terms increased by 22.5 %
in April-December 2006 as compared with 29.5% during the corresponding period
of 2005-06. Imports growth decelerated to 25.3% in April-December 2006 as
compared with 36, 2% a year ago.
The rising trend in the country's foreign exchange reserves is maintained and
has reached an all time high level of US$ 199.2 billion in March, 2007.
Banking Scenario:
The industrial resurgence and upswing in investments were reflected in the
large expansion of bank credit. With the high demand for credit, there was a
steady increase in credit deposit ratio of Scheduled Commercial Banks and
hardening of interest rates. The increase in the non food credit of Scheduled
Commercial Banks during 2006-07 was 28.0%, on the top of 31.8% growth in last
fiscal. Reconciling the twin needs of facilitating credit for growth on the one
hand and containing liquidity to tame inflation on the other, remained a
challenge. Reserve Bank of
While the growth of demand deposits slowed down to 16.0%
from 27.5% in 2005-06, the term deposits grew by 24.5% as compared to 16.4% in
2005-06.
Many Public Sector Banks have surpassed the growth rate of
30% under Agricultural Credit in line with the Government's policy of doubling
the credit flow to agricultural sector. Similarly, the credit flow to SME
sector has been higher than the norm of 20% stipulated by Government of
India.
Outlook:
In keeping with the trend in the last few years, GDP growth projections for the
year 2007-08 at a 8.5% is once again upbeat. With the measures initiated in
recent months, the inflation rate is projected to be moderated in the range of
5.0 to 5.5 per cent. The continued good performance of the Indian economy
promises increasing opportunities for business growth.
Aggregate deposits of Scheduled Commercial Banks is expected
to grow by Rs.4,90,000 Crore (or by 18.9%) in 2007-08. The adjusted non-food
credit is projected to increase by around 24% to 25%. The size of the
Government borrowing programme is likely to be larger in 2007-08 than in the
previous year. All these growth indicators reveal that the outlook for business
growth during 2007-08 is bright.
Bank's Performance
The highlights of the performance are:
Profit
& Profitability
* Net
Profit amounted to Rs. 3313.400 million, recording 161% growth.
* Operating
profit amounted to Rs. 6960.200 million.
Capital Adequacy
* Capital
Adequacy Ratio stood at 11.21% and is above the Reserve Bank of
Business Growth
* Total
business soared to Rs. 62, 2480 millions recording 39% increase.
Deposits
* Total deposits
grew by 35.7% from Rs. 27,7090 millions to Rs. 37,6050 millions.
* Demand
deposits grew by 22. 1 % and Savings Bank deposits grew by 16.3%.
Credit Expansion
* Gross
advances grew by 44.4% from Rs. 17, 0620 millions to Rs. 24, 6440 millions.
* Lending
to the infrastructure sector recorded 131.7% increase from Rs. 12757.200
millions to
Rs. 29558.600 millions.
Priority Sector Credit
* Priority
Sector credit constituted 40.8% of net credit, and is well above the norm of
40%.
*
Agricultural advances recorded 31% increase from Rs. 24557.800 millions to Rs.
32126.700 millions.
Non Performing Assets
*
Percentage of gross NPAs to gross advances declined from 3.17% to 2.29%.
*
Percentage of net NPAs to net advances declined from 0.85% to 0.59%.
* NPA coverage
ratio stood at 74.49%.
Computerization
* Core
Banking Solution implemented at 464 business outlets covering 80% of business.
* 47 new
ATMs were installed, thereby increasing the total number of ATMs to 171.
Branch Expansion
* 55 new
branches were opened taking total branches to 978.
Working Results:
The net profit for the year 2006-07 amounted to Rs. 3313.400 millions as
compared to Rs. 1268.800 millions in 2005-06, recording a growth rate of 161%,
while the operating profit for the year 2006-07 was Rs. 6960.200 millions
compared to Rs. 6330.100 millions in 2005-06. The pressure on the bank's
profitability is mainly on account of the decline in `interest spread'. On the
deposit front, market interest rates are on the rise, thus pushing up the average
cost of deposits from 4.97% in 2005-06 to 5.49% in 2006-07. The yield on
advances recorded an increase from 8.83% in 2005-06 to 9.20% in 2006-07. As a
result, the average interest spread has declined from 3.22% in 2005-06 to 3.0%
in 2006-07. In addition, there has also been a decline in the treasury profit
from Rs. 1484.400 millions in 2005-06 to Rs. 747.100 millions in 2006-07.
Awards:
The Bank has been chosen as the Best Bank of the year 2003-04 by 'Business Standard',
a leading financial daily. To be recognised as the Best Bank of the year, makes
our efforts and hard work truly memorable, as the recognition has come against
performances of all categories of banks in the country.
Branch Network:
During the year 2006-07, the Bank opened 43 new branches, upgraded 10 Extension
Counters into fullfledged branches, converted 2 Regional Foreign Exchange Cells
into fullfledged Overseas branches and also converted one Capital Market
Services branch into a General Banking Branch. As a result, the total number of
branches increased from 923 in March, 2006 to 978 in March, 2007, spread across
28 States and 4
Credit
Expansion:
The gross advances of the Bank increased significantly from Rs. 170618.400
millions as at March 2006 to Rs. 246439.100 millions as at March 2007 recording
an annual growth rate of 44.4%. The average (fortnightly) gross credit,
recorded an annual growth rate of 25.87% from Rs. 152319.200 millions in
2005-06 to Rs. 191720.200 millions in 2006-07.
Infrastructure Credit:
The advances to infrastructure increased from Rs. 12757.200 millions as at
March, 2006 to Rs. 29558.600 millions as at March, 2007 recording a growth rate
of 131.7%. Power Sector, Roads, Ports, Airports, Industrial Parks, Special
Economic Zones, Telecommunication Sector are the major areas under
infrastructure financed by the Bank jointly with other public sector banks, FIs
like IL&FS, IIFCL, etc.
Retail Credit:
Retail Lending continues to be the thrust area of the Bank. As part of its
Platinum Jubilee Celebrations, the Bank launched during the year, two new
Retail lending products viz., V-Shikshak and V-Rakshak to meet the credit needs
of Teachers and Defence Personnel respectively. The total disbursements under
the retail lending schemes during 2006-07 amounted to 30352.400 millions. The
outstanding advances under retail lending schemes stood at Rs. 74806.700
millions in March 2007 as compared to Rs. 57476.600 millions in March 2006,
registering a growth rate of 30.15%. Housing loans to Individuals, continued to
be the major component of the bank's retail advances with the Housing Loan
portfolio of the Bank reaching an outstanding level of Rs. 38558.900 millions
in respect of 82585 accounts. During the year, the bank had disbursed Rs.
8455.600 millions in 15501 accounts.
Priority Sector Lending:
Total Priority Sector advances of the bank have increased by Rs. 25964.400
millions (35% growth rate) to Rs. 99570.500 millions as at March 2007, as
against Rs. 73606.100 millions in March 2006. Priority Sector Credit of the
bank constituted 40.84% of the Net Bank Credit, as against the RBI stipulation
of 40%.
Agricultural Finance:
a) Outstanding agriculture:
Total Agricultural advances of the Bank as at March 2007 stood at Rs.32126.700
millions, as against Rs. 24557.800 millions as at March 2006, showing an
increase of Rs. 7568.900 millions, registering a growth rate of 31% over March
2006. Agricultural advances formed 13.18% of the Net Bank Credit, as against
the norm of 8%.
b) Disbursements to agriculture:
The Bank has continuously surpassed the disbursement target towards
agricultural advances, in tune with the announcements made by Govt, of
c) Kisan credit card scheme:
During the year, the bank has issued 35332 Kisan Cards and disbursed
Rs.1749.200 millions. The performance comes to 101% of the target of 35,000
kisan cards set for the year. The Kisan card holders are covered under Personal
Accident Insurance Scheme. The Bank has launched ATM enabled Kisan Credit Cards
at select branches for the benefit of farmers.
d) Coverage of new farmers:
During the year, the Bank has financed 50722 new farmers and disbursed
Rs.2801.100 millions under various agricultural activities. The average Number
of new farmers financed by rural and semi-urban branch comes to 110, as against
the Govt. of India's stipulation of bringing in a minimum of 100 new
farmers.
Financing Small and Medium Enterprises
[SMEs]:
The advances to Small Scale Industries increased to Rs. 13250.500 millions as
at March 2007 from Rs. 10724.800 millions as at March 2006. In line with the
Government of India's directives to double the outstanding advances under the
Small and Medium Enterprises (SME) over a period of next five years i.e. by
2009-10, the Bank has set a target of Rs. 18000 millions to be achieved by
March 2007. Against this target, the SME advances of the Bank stood at
Rs.18889.300 millions as at March 2007, registering a growth rate of 31%, as
against the norm of 20% stipulated by the RBI.
International
Banking:
The customer related foreign exchange turnover has increased from Rs.93640
millions in 2005-06 to Rs. 110430 millions in 2006-07. During the year the
SWIFT facility was extended to RSM Nagar Lucknow and Veraval branches taking
the number of SWIFT enabled Offices to 43.
The Foreign Currency credit portfolio stood at USD 75.45 Million which showed a
decline of 50.17% as customers have been sourcing foreign currency credits
directly from abroad, on account of easing of restrictions and lower rates
prevailing abroad.
The outstanding Export credit of the Bank recorded an impressive increase and
stood at Rs. 13846.500 millions in March 07, as against of Rs. 8828.300
millions in March 06, registering a growth of 56.84%.
The deposits from Non- resident Indians stood at Rs. 12635.200 millions as at
March 07, compared to Rs. 12102.500 millions in March 06, registering a growth
of 4.40%.
Operational
Risk:
Operational Risk, inherent in all activities, processes 1 and systems, is
managed as part of Integrated Risk Management System. The Bank, during the year
has ' formed a separate Operational Risk Management (ORM) Cell to take care of
operational risk areas especially in view of the growing technology
complexities. In tune with the RBI guidelines, the bank is currently in the
process of institutionalizing the Operational Risk Management frameworks by
gearing up collecting Loss Event details to enable it to adopt Advanced
Measurement Approaches at a later period. During the year, in tune with RBI
guidelines and with a view to measure and manage the Operational Risk, the Bank
has put in place the revised Operational Risk Management Policy document for
implementation.
Merchant Banking and Allied Activities:
Bank is registered with SEBI for Merchant Banking activities as Category I
Merchant Banker, Banker to the Issue, Debenture trustee, etc. The Bank also
handles other diversified activities like Insurance, marketing of Mutual Funds,
Depository Services, Western Union Money Transfer Services apart from Payment
Banker Assignments, Correspondent Banking and Cash Management Services. During
the year, the Bank has acted as Bankers to the Issue for Mutual Fund IPOs. The
Bank has also associated itself as collecting banker for collecting
subscriptions related to public/ rights issue etc. The bank has acted as
Debenture Trustee for 10 assignments, During the year the Bank has handled over
311 payment banker assignments on behalf of Private /Foreign Banks and our own
PSU / Corporate customers. The Bank is extending 'at par' payment facility for
corporate customers of the Bank and of private/foreign banks who do not have
the required branch network of their own.
PRESS RELEASE
Vijaya Bank
has created history for the second year in succession by being the first public
sector bank to declare its results for 2003-04. For its Chairman & Managing
Director Sri. M.S. Kapur it is a hat trick, the first year being at the Syndicate
Bank as its officiating Chairman & Managing Director.
Vijaya
Bank’s performance for the year ended 31.03.2004 has produced record
performance in all areas. The Board of Directors adopted the Balance Sheet and profit
and loss account of the Bank for the year ended 31st March 2004 in
its meeting held today i.e. 22.04.2004. The banks trend setting performance in
credit growth coupled with overall business growth, retail business especially
housing loans, introduction of new products continued in 2003-04 also.
Apart from
achieving important business milestones and financial parameters, certain other
noticeable developments had taken place during the year 2003-2004.
Bank’s
public issue received overwhelming response and was subscribed 17.06 times. The
public subscription excluding the reservation for NRIs and Staff was subscribed
by 20.36 times.
Bank has
tied up with Principal Asset Management Corporation of
In the
technology front the Bank has implemented core Banking solution and Integrated
Treasury Management Solution with state of art infrastructure and equipments
For the year
ended 31.03.2004 Bank has posted impressive Results.
Plans
for 2004-05
The Bank aims to achieve
total business levels of Rs.430000 millions comprising of Rs.280000 millions of
deposits and Rs.150000 millions of advances by March, 2005. The focus during
2004-05 would be to concentrate on expanding the clientele base, with thrust on
mobilising low cost resources and expand retail credit. Substantial investment
in technology up-gradation is also planned to meet the growing requirements of
the Bank.
To open
more branches, mostly in Urban/Metro centres.
To
introduce new asset and liability products at affordable rates and fetching
competitive yields, for customers.
To open an
Offshore Banking Unit [OBU] at Special Economic Zone [SEZ], Mumbai
To extend Depository
Services to more centres
To expand
distribution of Non-Life Insurance products
To
computerise all the branches
To install
additional 125 ATMs and network through a switch
To network
450 branches and implement solutions like RTGS, SFMS, Cash Management etc.
To
implement Core Banking in 150 branches
To
implement Internet Banking, SMS, PC Banking, etc.
To
operationalise the call centre set up at
To implement anti-money laundering solution and customer
relations management solutions which are unique to our Bank
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 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|