MIRA
INFORM REPORT
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Report Date : |
31.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
SBI LIFE INSURANCE COMPANY LIMITED |
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Registered Office : |
State Bank Bhavan, Madam Cama Road, Nariman Point, Mumbai – 400 021,
Maharashtra |
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Country : |
India |
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Date of Incorporation : |
11.10.2000 |
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Com. Reg. No.: |
11-129113 |
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CIN No.: [Company
Identification No.] |
U99999MH2000PLC129113 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS27599F |
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PAN No.: [Permanent
Account No.] |
AAFCS2530P |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Service Providers of Insurance Services |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Promoters of the subject are strong and reliable. Fundamentals are
strong. Trade relations are fair. Payments are correct. Subject can be considered good for any normal business dealings. It can be regarded as a promising business partner. Top level management also declined Annual Report. |
LOCATIONS
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Registered Office : |
State Bank Bhavan, Madam Cama Road, Nariman Point, Mumbai – 400 021,
Maharashtra, India |
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Tel. No.: |
91-22-66392000 |
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Fax No.: |
91-22-66392025 |
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E-Mail : |
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Website : |
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Mailing Address : |
2nd Floor, Turner Morrison Building, G N Vaidya Marg, Fort,
Mumbai – 400 023, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Arun Kumar Purwar |
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Designation : |
Chairman |
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Address : |
5 Dunedin, JM Metha Road, Mumbai – 400 006, Maharashtra, India |
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Date of Birth/Age : |
14.05.1946 |
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Date of Appointment : |
30.12.2002 |
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Name : |
Mr. Krishnamurthy Rajagopalan |
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Designation : |
Managing Director |
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Address : |
C-6, Kinellan, 100-A, Nepean Sea Road, Mumbai – 400 006, Maharashtra,
India |
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Date of Birth/Age : |
12.02.1944 |
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Date of Appointment : |
03.11.2000 |
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Name : |
Mr. Krishnamurthy Sankaran |
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Designation : |
Managing Director |
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Address : |
D-2, Kinellan, 100-A, Nepean Sea Road, Mumbai – 400 006, Maharashtra,
India |
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Date of Birth/Age : |
05.01.1947 |
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Date of Appointment : |
01.03.2004 |
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Name : |
Mr. Ashok Kini |
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Designation : |
Director |
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Address : |
D-6, Kinellan, 100-A, Nepean Sea Road, Mumbai – 400 006, Maharashtra,
India |
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Date of Birth/Age : |
12.12.1945 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Paul Francois Marine Jean Villemagne |
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Designation : |
Director |
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Address : |
Cardif SA, Siege-Social, 5 Avenue Kleber, 75798, Paris - 382983922,
France |
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Date of Birth/Age : |
15.05.1942 |
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Date of Appointment : |
14.06.2001 |
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Name : |
Mr. Gerard Yues Binet |
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Designation : |
Director |
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Address : |
19, Route De La Passerelle Le Vesinet – 781130, France |
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Date of Birth/Age : |
30.04.1953 |
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Date of Appointment : |
14.06.2001 |
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Name : |
Mr. Pierre Hubert De Villeneuve |
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Designation : |
Director |
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Address : |
Cardif SA, Siege-Social, 5 Avenue Kleber, 75798, Paris - 382983922,
France |
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Date of Birth/Age : |
26.08.1948 |
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Date of Appointment : |
14.06.2001 |
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Name : |
Mr. Pier-paolo Nicola Dipaola |
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Designation : |
Director |
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Address : |
Cardif SA, Siege-Social, 5 Avenue Kleber, 75798, Paris - 382983922,
France |
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Date of Birth/Age : |
13.12.1958 |
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Date of Appointment : |
14.06.2001 |
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Name : |
Mr. Rajendra Singh Lodha |
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Designation : |
Director |
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Address : |
8, National Tower, 13 Loudon Street, Kolkata – 700 017, West Bengal,
India |
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Date of Birth/Age : |
06.09.1942 |
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Date of Appointment : |
05.03.2002 |
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Name : |
Mr. Ravi Sankar Lingam |
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Designation : |
Director |
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Address : |
Anugraha No.23 (Old No.2), Arunachalam Road, Kotturpuram, Chennai –
600 085, Tamilnadu, India |
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Date of Birth/Age : |
31.08.1958 |
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Date of Appointment : |
05.03.2002 |
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Name : |
Mrs. Swati Ajay Piramal |
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Designation : |
Director |
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Address : |
95, Benzer Terraces, 4th Floor, Abdul Gaffar Road, Worli
Sea Face, Mumbai – 400 018, Maharashtra, India |
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Date of Birth/Age : |
28.03.1956 |
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Date of Appointment : |
05.03.2002 |
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Name : |
Mr. Eric Lombard |
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Designation : |
Director |
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Address : |
10 Rue Garanciere, Paris, France |
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Date of Appointment : |
30.04.2007 |
KEY EXECUTIVES
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Name : |
Mrs. Jotika Chanderdev Singh |
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Designation : |
Secretary |
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Address : |
506 WGU, WGU Road, Mumbai – 400 025, Maharashtra, India |
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Date of Birth/Age : |
16.12.1974 |
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Date of Appointment : |
22.09.2003 |
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Name : |
Mr. Parind Chandrakant Badshah |
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Designation : |
Secretary |
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Address : |
303, Rajneelam, Dr. R P Road, Breach Candy, Mumbai – 400 026,
Maharashtra, India |
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Date of Birth/Age : |
03.03.1972 |
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Date of Appointment : |
15.03.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 06.07.2004)
|
Names of Shareholders |
No. of Shares |
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State Bank of India |
129499994 |
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Krishnamurthy Sankaran |
1 |
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Asim Ratan Samajdar |
1 |
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Cardif SA |
45500000 |
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S Chandrashekhar |
1 |
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Subramanian Narayanan |
1 |
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Anup Chandak |
1 |
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Ganesh Ramani |
1 |
Equity share breakup (percentage of total equity)
(As on 30.07.2008)
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Category |
Percentage |
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Nationalised or other banks |
74.00 |
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Foreign holdings (Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident
indian(s) or Overseas corporate bodies or Others |
26.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Service Providers of Insurance Services |
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Products : |
Individual
Products ·
Unit
Linked Products: ·
Pension
Products ·
Pure
Protection Products ·
Protection
cum Savings Products · Money Back Scheme Products Group Products ·
Retirement
Solutions ·
Protection
Plans ·
Specialized
Term Insurance ·
SBI
Life - Swadhan (Group ·
SBI
Life - Dhanaraksha Plus ·
SBI
Life - Nidhi Raksha Plus |
GENERAL
INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
M P Chitale and Company Chartered Accountants Address : Hamam House, Ambalal Dhosi Marg, Fort, Mumbai – 400
001, Maharashtra, India B K Khare and Company Chartered Accountants Address : 706/708, Shardha
Chambers, New Marine Lines, Mumbai – 400 020, Maharashtra, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Rs.10/- each |
Rs.20000.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
No Financials are available from any sources.
LOCAL AGENCY
FURTHER INFORMATION
History
Subject is a joint venture between the State Bank of India and
BNP Paribas Assurance. Subject is registered with an authorized capital of Rs
20000.000 millions and a Paid-up capital of Rs 10000.000 millions SBI owns 74%
of the total capital and BNP Paribas Assurance the remaining 26%.
State Bank of India enjoys the largest banking franchise in
India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength
of over 14,500 branches across the country, arguably the largest in the world.
BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s leading
Bank. BNP Paribas, part of the world's top 10 group of banks by market value
and part of Europe top 3 banking companies, is one of the oldest foreign banks
with a presence in India dating back to 1860. BNP Paribas Assurance is the
forth largest life insurance company in France, and a worldwide leader in
Creditor insurance products offering protection to over 50 million clients. BNP
Paribas Assurance operates in 42 countries mainly through the bancassurance and
partnership model.
Subject has a unique multi-distribution model encompassing
Bancassurance, Agency and Group Corporates.
Subject extensively leverages the SBI Group as a platform
for cross-selling insurance products along with its numerous banking product
packages such as housing loans and personal loans. SBI’s access to over 100
million accounts across the country provides a vibrant base for insurance
penetration across every region and economic strata in the country ensuring
true financial inclusion.
Agency Channel, comprising of the most productive force of
more than 40,000 Insurance Advisors, offers door to door insurance solutions to
customers.
Press Release
Bangalore, Oct. 12
SBI Life Insurance Company Ltd proposes to hike its paid-up capital by another
Rs 3000 millions by this year-end to meet its business requirements.
The Managing
Director, Mr Uday Shanker Roy, told presspersons today that “We are maintaining
a healthy growth and hope to sustain it.”
SBI Life is a
joint venture between State Bank of India and Cardiff SA of France, where the
French insurer holds 26 per cent stake. The company currently has a paid-up
capital of Rs 5000 millions and an authorised capital of Rs 1,0000 millions.
Premium accretions
Till August, SBI
Life had gross premium accretions of Rs 8681.100 millions, or a growth of 71
per cent, over the previous year, according to data available with the
Insurance Regulatory and Development Authority.
For the financial
year ended March 2007, the company earned a premium of Rs 2,5660 millions
registering a growth of 210 per cent compared to the corresponding period last
year.
Mr Roy said that
SBI Life had sustained this growth momentum in the second quarter, though he
declined to give any numbers. He said that most of the premium accretions were
contributed by SBI Life’s bancassurance arrangements with the parent bank and
its associates/subsidiaries.
Doubling sales force
This year, he said
that the company also intended to expand its agency force and double it by
year-end. Currently it has a sales force of about 24,000 agents spread around
the country. He said: “We plan to expand this to about 50,000 agents this
year-end.”
Bulk of the
premium accretions has been in the Unit Linked Insurance Policies (ULIPs), with
a bias to growth funds. “With the Sensex soaring, customers have looked for
greater returns,” he said. Yet, he said, ULIPs accounted for just about 65 per
cent of the gross premiums. The rest was in the form of traditional products –
both savings linked insurance plans and term plans. For most new insurers, ULIPs
accounted for over 80 per cent of the premium accretions.
SBI Life, as part
of plans to grow new business, launched a fixed deposit-linked insurance
product along with State Bank of Mysore (SBM), branded Mybank Suraksha.
Fixed deposits in
multiples of Rs 0.050 million placed with SBM for a minimum period of 5 years
would be paid an interest of 8.25 per cent and simultaneously covered by SBI
Life for an equivalent amount.
This product is
targeted at depositors aged between 18 and 55. The minimum prescribed deposit
is Rs 0.050 million and would have an insurance cover from SBI Life for an
equivalent amount.
The SBM Managing
Director, Mr P.P. Pattanayak, said: “SBM will bear the premium costs for this
product.”
Asked whether this
would increase the cost of liabilities, he said it would not have any major
cost impact.
The upper limit
for the cover is Rs 0.500 million, for depositors up to 39 years. For those
depositors above 40 years, but less than 55 years, the ceiling is Rs 0.300
million.
Mr Pattanayak said
that Mybank Suraksha was the first in the banking industry and intended to
improve SBM’s long-term fund base.
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 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.42.47 |
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UK Pound |
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.66.14 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
10 |
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PAID-UP CAPITAL |
1~10 |
9 |
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OPERATING SCALE |
1~10 |
9 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
9 |
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--LIQUIDITY |
1~10 |
9 |
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--LEVERAGE |
1~10 |
9 |
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--RESERVES |
1~10 |
9 |
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--CREDIT LINES |
1~10 |
9 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
82 |
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 |
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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 |
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