MIRA
INFORM REPORT
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Report Date : |
09.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
ORIENTAL BANK OF COMMERCE |
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Registered Office : |
Harsha Bhavan, E-Block, Connaught Place, New Delhi – 110 001, Delhi |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
01.01.1901 |
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Com. Reg. No.: |
002036 |
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CIN No.: [Company
Identification No.] |
U99999DL1901PTC002036 |
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Legal Form : |
It is a Government of India owned Bank, partially
disinvested it’s shares in the public. |
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Line of Business : |
Subject is a Commercial Bank and engaged in all kinds of
banking business. |
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 : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed Public Sector Bank. Trade relations
are fair. General financial position is good. Business is active. Payments
are reported as usually correct and as per commitments. The bank can be considered good for any normal business dealings. |
LOCATIONS
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Registered Office : |
Harsha Bhavan, E-Block, Connaught Place, New Delhi – 110 001, Delhi,
India |
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Tel. No.: |
91-11-23417121, 23416691, 23415508 |
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E-Mail : |
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Website : |
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Merchant Banking Division : |
4th Floor, Competent House, F-14, Connaught Place, New
Delhi – 110 001, Delhi, India |
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Tel. No.: |
91-11-23321821 |
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Fax No.: |
91-11-23739768 |
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Branch : |
932 branches all over India. |
DIRECTORS
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Name : |
Mr. Alok Kumar Misra |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Allen C A Pereira |
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Designation : |
Executive Director |
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Name : |
Mr. H Rathnakar Hegde |
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Designation : |
Executive Director |
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Name : |
Mrs. P. Bolina |
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Designation : |
Director |
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Name : |
Mr. S. K. Newlay |
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Designation : |
Director |
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Name : |
Mr. U. K. Khaitan |
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Designation : |
Director |
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Name : |
Mr. C. K. Sabharwal |
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Designation : |
Director |
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Name : |
Dr. Abha Chaturvedi |
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Designation : |
Director |
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Name : |
Mr. V. K. Sharma |
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Designation : |
Director |
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Name : |
Mr. Kamal Bhushan |
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Designation : |
Director |
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Name : |
Mr. V. Vijay Sai Reddy |
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Designation : |
Director |
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Name : |
Mr. Vijay Jagirdar |
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Designation : |
Director |
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Name : |
Dr. R.S. Maharshi |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. D. G. Saxena |
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Designation : |
General Manager |
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Name : |
Mr. S. C. Sharma |
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Designation : |
General Manager |
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Name : |
Mr. G. K. Sachdeva |
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Designation : |
General Manager |
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Name : |
Mr. S. K. Sharma |
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Designation : |
General Manager |
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Name : |
Mr. C. M. Khurana |
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Designation : |
General Manager |
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Name : |
Mr. Vikram Kochhar |
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Designation : |
General Manager |
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Name : |
Mr. H. K. Madan |
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Designation : |
General Manager |
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Name : |
Mr. Atul Gautam |
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Designation : |
General Manager |
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Name : |
Mr. K. K. Saral |
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Designation : |
General Manager |
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Name : |
Mr. V. K. Kamboj |
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Designation : |
General Manager |
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Name : |
Mr. Jasbir Singh |
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Designation : |
General Manager |
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Name : |
Mr. R. M. Sharma |
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Designation : |
General Manager |
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Name : |
Mr. M. S. Shetty |
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Designation : |
General Manager |
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Name : |
Mr. Rajiv Rishi |
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Designation : |
General Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Government of India |
128000000 |
51.09 |
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Public |
13377985 |
5.34 |
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Corporates |
11804533 |
4.71 |
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Non Domestic Companies, FIIs and NRIs |
45453585 |
18.14 |
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Banks, IFI, Mutual Fund, Insurance Companies and Others |
51903597 |
20.72 |
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Total |
250539700 |
100.00 |
State wise Shareholding Distribution As on 31.03.2008
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State |
Total Holding |
Percentage of
Holding |
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President of India |
128000000 |
51.09 |
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Delhi |
3598230 |
1.44 |
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Haryana |
485743 |
0.19 |
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Punjab |
523234 |
0.21 |
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Chandigarg |
119041 |
0.05 |
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Himachal Pradesh |
34998 |
0.01 |
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Jammu and Kashmir |
58529 |
0.02 |
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Uttar Pradesh |
666835 |
0.27 |
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Uttaranchal |
271390 |
0.11 |
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Rajasthan |
673593 |
0.27 |
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Gujarat |
1395351 |
0.56 |
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Maharashtra |
100321268 |
40.04 |
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Madhya Pradesh |
392688 |
0.16 |
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Chattisgarh |
81640 |
0.03 |
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Andhra Pradesh |
678504 |
0.27 |
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Karnataka |
613694 |
0.24 |
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Tamil Nadu |
1078446 |
0.43 |
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Kerala |
159207 |
0.06 |
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West Bengal |
10581481 |
4.22 |
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Orissa |
137021 |
0.05 |
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Assam |
84384 |
0.03 |
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Bihar |
102629 |
0.04 |
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Total |
250057906 |
99.81 |
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Others |
481794 |
0.19 |
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Grand Total |
250539700 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is a Commercial Bank and engaged in all kinds of
banking business. |
GENERAL
INFORMATION
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No. of Employees : |
14804 |
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Bankers : |
Reserve Bank of India |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
· R. K. Gurwala and Company Chartered Accountants · Bansal Sinha and Company Chartered Accountants · N. D. Kapur and Company Chartered Accountants · OM Agarwal and Company Chartered Accountants · Jain Kapila Associates Chartered Accountants · Bansilal Shah and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1500000000 |
Equity Shares |
Rs.10/- each |
Rs.15000.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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250539700 |
Equity Shares |
Rs.10/- each |
Rs.2505.397
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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Share Capital |
2505.397 |
2505.397 |
2505.400 |
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Reserves & Surplus |
55253.633 |
53497.747 |
49202.400 |
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Deposits |
778566.955 |
639959.665 |
501974.600 |
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Borrowings |
18398.391 |
6226.182 |
8764.200 |
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Other Liabilities and Provisions |
52328.867 |
37173.752 |
29127.100 |
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TOTAL |
907053.243 |
739362.743 |
591573.700 |
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APPLICATION OF FUNDS |
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Cash and Balances with Reserve Bank of India |
73222.543 |
53360.872 |
42632.200 |
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Balances with Banks and Money at Call and Short Notice |
28924.887 |
21731.243 |
12624.800 |
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Investments |
239506.817 |
198083.601 |
168175.700 |
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Advances |
545658.325 |
441384.655 |
335772.400 |
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Fixed Assets |
3874.603 |
3826.839 |
3841.700 |
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Other Assets |
15866.068 |
20975.533 |
28526.900 |
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TOTAL |
907053.243 |
739362.743 |
591573.700 |
PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Interest Earned |
68381.833 |
51649.003 |
41189.200 |
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Other Income |
6166.565 |
6032.576 |
6290.100 |
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Total Income |
74548.398 |
57681.579 |
47479.300 |
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Net Profit |
3532.158 |
5808.137 |
5571.600 |
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Expenditures : |
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Interest Expended |
51561.731 |
34735.831 |
25138.500 |
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Operating Expenses |
10796.309 |
9978.855 |
9702.700 |
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Provisions and Contingencies |
3780.982 |
4698.756 |
7066.500 |
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Other Expenditure |
4877.218 |
2460.000 |
0.000 |
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Total Expenditure |
71016.240 |
51873.442 |
41907.700 |
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KEY RATIOS
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PARTICULAR |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Credit Deposit Ratio |
69.58 |
68.06 |
60.05 |
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Investment Deposit Ratio |
30.85 |
32.07 |
35.86 |
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Cash Deposit Ratio |
8.92 |
8.41 |
10.93 |
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Interest Expended/Interest Earned |
75.4 |
67.25 |
61.03 |
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Other Income/Total Income |
10.71 |
13.68 |
13.25 |
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Operating Expense/Total Income |
14.28 |
16.88 |
20.44 |
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Interest Income/Total Funds |
8.29 |
7.75 |
7.28 |
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Interest Expended /Total Funds |
6.25 |
5.21 |
4.44 |
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Net Interest Income/Total Funds |
2.04 |
2.54 |
2.84 |
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Non Interest Income/Total Funds |
0.99 |
1.23 |
1.11 |
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Operating Expense/Total Income |
1.33 |
1.52 |
1.71 |
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Profit Before Provisions/Total Funds |
1.98 |
2.35 |
2.51 |
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Net Profit/Total Funds |
0.43 |
0.87 |
0.98 |
|
Return On Net Worth(%) |
10.24 |
11.97 |
16.77 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject is a Government of India owned Bank. Before it was nationalised in 1980, the bank was in Private Sector, controlled and managed by Thapar Group.
Business
Operations
The Business of the Bank crossed Rs.1330000 millions mark and stood at
Rs.1331840 millions on March,31st 2008.Total deposits of the Bank stood at Rs.
778567 millions and have shown an increase of Rs.138607.300 millions depicting
a growth of 21.66% .Demand deposits; consisting of saving and current accounts,
have risen from Rs.193899.400 millions in March 2007 to Rs. 217234.700 millions
in March,2008, thereby recording a growth of 12.03%.In the wake of North-bound
movement in rate of interest during the fiscal year 2007-08,cost of deposit
increased to 7.08% as against 5.8% during the previous year fiscal .On the
other hand ,net advances ,as at end-March 2008 stood at Rs 545658.300 millions
,registering a growth of Rs.23.62% During the fiscal 2007-08,yield on advances
has improved to 10.25% from the previous year's level of 8.6%. The credit
deposit ratio of the Bank as at end- March 2008,stood at 71.43%,same as in the
previous year. The Bank ensured adequate flow of credit to the productive
sectors of the economy. The Loans & Advances portfolio of the bank is well
diversified and balanced. The Bank has ensured that its exposure to sensitive
sectors such as Capital Markets, Real Estate, NBFCs etc. is well within the
regulatory & prudential cap.
Financial
Performance
The Bank has posted a total income of Rs.74548.400 millions during the year as
against Rs. 57681.600 millions last year thus registering an increase of Rs.
16866.800 millions (a growth of 29.24%) during the fiscal 2007-08 . Gross
profit of the Bank went upto Rs. 12190.400 millions in 2007-08 as against Rs.
12966.900 millions last year .The Bank has made a net profit of Rs. 8409.400
millions, after making aLL required provisions, showing an increase of Rs.
141.300 millions (growth of 1.71%) during the fiscal 2007-08.
Sectoral
Deployment of Credit to Priority Sector
Bank's advances to priority sector increased by Rs. 28046.300 millions from
Rs.159552.000 millions in March 2007 to Rs. 187598.300 millions in March 2008
registering a growth of 17.58%. The Priority Sector Advances constituted 42.50%
of bank's Adjusted Net Bank Credit (ANBC) against the stipulation of 40%. The
comparative position of advances under various segments of Priority Sector, as
at the end of March 2007 and March 2008, is as follows:
Agriculture
Advances
Bank's advances to agriculture increased by Rs.11977.700 millions from
Rs.57322.800 millions in March 2007 to Rs.69300.500 millions in March 2008,
registering a growth of 20.90%. The advances to direct agriculture segment increased
by Rs.5968.500 millions from Rs.28670.600 millions as on 31.3.2007 to
Rs.34639.100 millions as on 31.3.2008, constituting a growth of 20.82%. The
Indirect agriculture advances increased by Rs.6009.200 millions from Rs.
28652.200 millions as on 31.3.2007 to Rs. 34661.400 millions as on 31.3.2008
showing an increase of 20.97%.
Flow
of credit to Agriculture sector (Fresh disbursement)
During the financial year 2007-08, flow of credit to agriculture sector
amounted to Rs. 17949.400 millions. During the year, a total of 66,255 new
agriculture loan accounts were added by 316 semi-urban and 273 rural branches.
There was an average addition of 113 new agriculture loan accounts per rural
and semi-urban branch.
Oriental
Green Card (Kisan Credit Card)
During the year, Bank issued 54,634 cards to farmers with a view to provide
Loan for crop production, working capital for allied activities and consumption
needs. The aggregate credit disbursed through these cards during the year was
Rs.6629.900 millions. With this, the cumulative number of cards issued rose to
4,95,275 in March 2008.
Oriental Kisan Gold Card (OKGC)
In order to meet comprehensively the requirement of working capital and
investment credit of farmer, bank issues OKGCs.
During 2007-08, Bank issued 1157 OKGC to farmers in rural areas. The aggregate
credit disbursed during the year amounted to Rs. 282.000 millions, taking the
cumulative number of OKGCs issued to 4771.
Hi-tech Dairy
The bank has launched Hi-tech commercial dairy scheme on pilot basis which
besides providing self employment opportunities to rural youth in the State of
Punjab promotes diversification of productive activities in rural areas. This
scheme has been launched in association with Punjab State Dairy Development
Board, Punjab Milkfed and Milk Time. As on 31.3.2008, an amount of Rs.375.600
millions was sanctioned in 349 units.
Agriclinic and Agribusiness
Centres
Bank is providing credit assistance to agriculture graduates for setting up
agriclinic and agribusiness centers. As on March 2008, 54 Agriclinic and
Agribusiness centers were financed amounting to Rs. 67.314 millions.
Oriental Saur Urja Dohan Scheme
The fossil fuel resources are limited in quantity and are fast depleting. The
poor use Kerosene as common fuel for lighting. The, rural people face problem
of home lighting due to non-availability of grid electric power supply. Even if
there is power supply, frequent load shedding and low voltage is a regular
phenomenon in rural areas. To overcome these problems the Bank is implementing
a scheme for financing solar water heating and lighting system, for creating a
viable alternate to conventional source of energy. The scheme is open to
individual, institutional, commercial and industrial users. Bank has tied up
with Bhartiya Vikas Trust (BVT), a NGO, for imparting training to Branch
Managers on solar finance, to users and entrepreneurs for capacity building and
also for demonstration / awareness camps to encourage rural population to adopt
solar energy for home lighting.
Under Solar Lighting System, bank has financed 153 units amounting to
Rs.1.615 millions in the states of Uttar Pradesh & Rajasthan during the
year. The bank finance for Solar Heating System amounted to Rs.9.925 millions
under MNRE tie up arrangement and bank claimed subsidy of Rs.1.310 millions
during the year.
Small
and Medium Enterprises. (SMEs)
Bank's exposure to Small Enterprises sector stood at Rs. 50150.500 millions at
the end of March 2008 and has shown an increase of Rs. 16509.600 millions,
recording an impressive growth rate of 49% Further, SME advances increased by
Rs. 11810.800 millions to Rs. 6228.17, registering a growth of 23.40% against
the Year on Year growth stipulation of 20%. The Tiny / Micro sector advances
increased by Rs. 3210.700 millions to Rs. 13283.000 millions posting a growth
of 31.88%.
Bank has entered into a MOU with SIDBI for co-financing of the SME sector in
the clusters of Punjab and Delhi and with NSIC for outsourcing credit proposals
for lending. The Bank has entered into a tie-up arrangement with SME Rating
Agency of India Ltd. (SMERA) for providing comprehensive rating services to
SMEs borrowers of the Bank at subsidized rates.
Oriental Bank Grameen Project
(OBGP)
Presently, as many as 356 villages are covered under the project. The bank has
formed 3864 SHGs consisting of 19223 members. The cumulative amount advanced to
these groups as at the end of March 2008 was Rs. 266.700 millions. Savings to
the tune of Rs. 60.000 millions have been mobilized by the Self Help Groups so
far.
Advances to weaker sections
Advances to weaker sections, consisting of beneficiaries belonging to
scheduled castes/scheduled tribes, small and marginal farmers, Landless
Labourers, Rural Artisans, beneficiaries under Govt. Sponsored Schemes (except
PMRY) were of the order of Rs. 23370.000 millions as at the end of March 2008
as against Rs. 19650 millions as at the end of March 2007.
Credit under Differential Rate of
Interest Scheme
Credit flow at concessional rate of interest of 4% p.a. to the Low-income group
of the society both in rural having annual family income upto Rs.0.006 millions
and urban having annual family income upto Rs. 0.007 millions (since revised to
Rs.0.018 millions and Rs.0.024 millions respectively w.e.f. April 2008) centers
was Rs.1232.400 millions as at the end of March 2008.
Loans to SCs/STs
Bank continued its thrust in providing financial assistance to SCs/STs
beneficiaries. The advances to these beneficiaries improved to Rs. 4524.000
millions in March 2008 against Rs. 4376.200 millions as at the end of March
2007. Recovery position of Loan to SC/ST borrowers under Priority Sector as at
the end of March 2008 was 69% to demand.
Prime Minister Rozgar Yojana
(PMRY)
With a view to providing self-employment opportunities to educated unemployed
youth in the unorganized sector, Bank, ever since the introduction of the
scheme has been extending financial assistance to the beneficiaries under the
scheme. It provided credit assistance to 6859 youths to the tune of Rs.590.100
crore during 2007-08.
Swarn Jyanti Shahri Rojgar Yojana
(SJSRY)
For providing gainful employment to urban poor (living below the urban poverty
line) through setting up self employment ventures, bank is providing financial
assistance under the scheme since its inception. The bank financed to 2192
beneficiaries to the tune of Rs.76.000 millions during 2007-08.
Swarn Jyanti Gram Swrojgar Yojana
(SGSY)
The scheme is operative in rural areas of the country and covers the aspects of
self employment such as organization of rural poor into Self Help Groups (SHGs)
training, credit, technology, infrastructure and marketing. The bank is
participating in the scheme. During 2007-08, bank provided financial assistance
to 1511 individuals swarojgaries to the tune of Rs.55.500 millions and 351 SHGs
to the tune of Rs.58.400 millions.
Credit Flow to Women Beneficiaries
Bank has implemented 14-points action plan for strengthening of credit flow to
women as advised by the Government of India. Bank has designated 9 branches as
specialized branches for women entrepreneurs. It has put in place a number of
credit schemes, such as Oriental Mahila Vikas Yojana, Financing for Beauty
Parlours, Boutiques, Tailoring shops, Saloons, Professional & Self Employed
Women, Scheme for financing working women, Oriental Swaran Yojana. Besides, a
special project called Oriental Bank Grameen Project (OBGP) provides all types
of banking assistance to the rural poor women. On account of a number of
schemes catering to the needs of Women entrepreneurs, the Bank's advance to
women increased by Rs.4284.700 millions from Rs.21189.600 millions as on March
2007 to Rs.25474.300 millions as on March 2008 registering a growth of 20.22%.
Bank's advances to women beneficiaries as on March 2008 was 5.77% of ANBC
against the stipulation of 5%.
Financial Inclusion
With a view to provide banking facilities to the sections of
society so far deprived from the formal financial sector, bank implemented
financial inclusion policy. Bank adopted three pronged strategies for financial
inclusion. First, rural branches of the bank adopted villages for financial
inclusion. Second, both Lead Districts of the bank volunteered for 100%
financial inclusion. Third, bank's branches participated in districts
identified by the respective SLBCs.
Under village adoption scheme, bank covered 884 villages with 2,96,359
households. 73422 deposit a/cs were opened and 25,024 loans/GCCs were issued.
In Bank's Lead districts of Ferozepur completed 100% financial inclusion in all
997 villages and 156 wards having 2,89,896 households and opened 45,292 'No
Frill Accounts. In Sriganganagar District, Bank completed 100% financial
inclusion in 3031 villages and 231 wards having 3,22,270 households and opened
69,316 new accounts.
OBC Rural Development Trust
Bank set up a Special Purpose Vehicle, OBC Rural Development Trust, with a view
to institute Rural Development Training & Resource Centres at different
locations, The main objective of the Trust is to provide training on Latest
techniques of agriculture & animal husbandry, maintenance of farm
machinery, skill upgradation of rural youth for self employment, capacity
building of the rural. poor, specially the Self Help Groups, training to
educated unemployed youth and village adoption for all round development, Four
such centers have become operational at Sriganganagar, Jaipur (Rajasthan),
Ferozepur (Punjab) and Rudrapur (Uttarakhand).
In all 77 training programmes were organized in which 3598 people were imparted
training, The training programmes were conducted on latest agronomic practices,
rearing of animals, local crafts Like Phulkari in Punjab, tailoring, cottage
& agro processing and computer related trainings to the unemployment youth.
Special training programmes were organised exclusively for the members of
SCs/STs and Minority communities. A total of 2824 trained persons were credit
linked for pursuing/setting up of economic activities.
Urban Micro Finance
The Institute of Social Service (ISS) is a registered society working for
Empowerment of women and children from weaker sections to create
self-sustainable community of their own. The institute is also conducting
vocational training to make women and youth economically self-reliant. Bank is
supporting the 'Empowerment of Women & Children' Project run by ISS, thus
helps in capacity building among women and children residing in the urban slums
of Delhi. The women have been organized in SHGs for urban micro finance.
Retail Credit
Retail Credit segment continues to be the thrust area of lending. The Bank is
having 12 retail credit schemes including Home Loans to meet the requirements
of various sections of the Society. The Bank has been formulating customized
schemes and is also having tie-ups with various institutions to boost its
retail segment.
Education
Loan
Bank continued its efforts for extending Education loans to the needy and
deserving students. During the admission session, education loan camps were
organized in the campus of educational institutions. The education loan
portfolio of the Bank showed healthy growth of over 43% during the current year
and the same stood at Rs.5834.900 millions as on 31.03.2008.
With a view to enabling the students aspiring to avail education loan from our
Bank, the facility of 'Online Education Loan Application' has been launched on
31.03.2008 and the applicants can apply online by visiting the bank's website
http://www.obcindia.co.in.
Treasury Operations
The Secondary Market operations in Government Securities and equity remained
volatile during the 1st half of the financial year 2007-08 but remained bullish
in the 2nd half, giving opportunity to the Bank to increase its turnover as
well as profit. The Bank had shifted securities for Book Value of Rs.20479.300
millions from 'available for sale' (AFS) category to 'held to maturity' (HTM)
category and booked depreciation of Rs.2100.000 millions. The turnover in the
secondary market has increased from Rs.112300.300 millions in the year 2006-07
to Rs.187267.800 millions in the year 2007-08. The net profit from secondary
market operation has increased from Rs.1120 millions to Rs.1530 millions during
the year 2007-08 after accounting for brokerage paid etc. The aggregate
investment of the Bank increased to Rs.240092.700 millions as the end of 2007-
08 as against Rs.200134.500 millions as end of the financial year 2006-07. The
yield on investment has increased to 8.01% from 7.89% as compared to Last year
due to maturing of high coupon securities and holding of Treasury Bills in the
Investment Portfolio.
Merchant
Banking activities:
Bank has been registered as Depository Participant with both NSDL & CDSL.
Nearly 1,00,000 customers are availing the demat services from the Bank. Bank
has rolled out online trading services in collaboration with IDBI Capital
Market Services to its customers. During 2008-09, the Bank is planning to add
more branches that will offer depository services to its customers.
Foreign Exchange Business
During the fiscal 2007-2008, Forex Merchant Turnover achieved at Rs.371069.700
millions as on 31.3.2008, as against Rs.300080 millions as on 31.3.2007. Export
Credit at the end of March 2008 stood at Rs.41561.100 millions as against
Rs.34040.000 millions at the end of March 2007, thereby recording a growth of
22.09%. Foreign Currency Loans are being offered at competitive rate and
requirement of the clients were met efficiently by the Bank. The Foreign Currency
portfolio has grown up to USD354.50 million as on 31.3.2008 as against
USD192.37 million as on 31.3.2007. Necessary support to the clientele is also
extended in arranging Buyer's Credit and External Commercial Borrowings through
strong network of correspondence banks across the world. The Bank has
established NRI Cell at Corporate level for management of NRI Inward
Remittances and speedy credit of remittances directly to the accounts of NRI
customers. Bank has participated in various Conferences/ exhibitions for
promoting NRI activities in order to bring more visibility amongst NRIs and
attracting their business. The Bank has received the permission from Central
Bank of the UAE to open Representative office in Dubai and same shall be
operationalised shortly. This platform will further give boost in our endeavor
to attract more NRI business. The Fee based products like Western Union Money
Transfer and Exchange House business have shown substantial growth during the
financial year. The Bank has also tied up with correspondent banks for trade
finance arrangements to speed up transactions and also to rationalise the
charges.
New Initiatives
With a view to shore up Non-Interest income to boost the bottom
line of the Bank and also make inroads into newer areas, an seperate Department
has been set up at Head Office. The Department has made foray into marketing of
various Non-Interest income products and services this year. It is our
endeavour to sensitise every Regional Office to become market savvy by identifying
officers/workmen who have the willingness and aptitude for marketing and then
utilizing their services at identified centers (with potential of growth) on
full time basis. As Banks are becoming Financial Super Markets, cross selling
of products will be the order of the day. Greater emphasis is also laid on
customer acquisition especially new generation customers, who are presently not
aware of the dynamism prevailing in public sector Banks.
Life Insurance Business:
During April-March 2007-2008, the Bank has sold 11230 life insurance policies
with first premium collection of Rs. 460.000 millions as on March 31, 2008.
Bank is also putting in marketing efforts to acquire banking business of LIC of
India branches at various locations. For the FY 2008 - 09, the Bank has
projected Rs. 650.000 millions (25% increase) as first premium
collection.
Bank has entered into Joint Venture for Life Insurance Business with Canara
Bank and FISBC Insurance (Asia Pacific). On 5th March 2007, a non binding MOU
has been signed between OBC, Canara Bank and HSBC Insurance for establishing a
Life Insurance Company in India. Under the proposed agreement, Canara Bank will
hold 51% stake in the new Company, HSBC will hold 26% share in equity and OBC
will hold the remaining 23% shareholding. The new Company is expected to start
business by June, 2008.
General Insurance Business:
Under general insurance business the Bank has been registering a steady growth
and has procured 76981 policies with premium collection of Rs. 351.800 millions
upto March 31, 2008 (against Rs. 250.200 millions last year). i.e. 25% growth.
This section of Bank assurance business is stated to consolidated further by
making use of cash management services at various locations. This business is
also expected to improve fee based income of the bank.
For FY 2008-2009, the premium collection figure is expected to be
Rs.405.000 millions (25% increase).
Mutual Fund Business:
Bank had entered into an agreement with M/s Franklin Templeton Asset Management
(India) Pvt. Ltd. for selling of their Mutual Fund products through the banks
branches. In the fist phase, the sales of these products wilt be limited to
select branches and gradually, on successful implementation, all other branches
will be allowed to sell the Mutual Fund Products. The Bank has mobilized
investment of Rs. 300.000 millions during the period registering 60% growth in
the current financial year. We have identified 100 Branches to start with and
are hopeful of taking this portfolio to greater heights.
With a view to providing various investment opportunities to clients, our bank
has approved the distribution of various schemes of five more Mutual Fund
Houses as under:
1. M/s Reliance Mutual Fund.
2. M/s DSP Merrill Lynch.
3. M/s Kotak Mahindra Mutual Fund.
4. M/s SBI MutuaL Fund.
5. M/s Canara Robeco.
Out of five Mutual Fund Houses, we have already launched distribution of
products of first three Mutual fund Houses. We have moblised AUM of Rs. 300.000
millions as on March 31, 2008.
Branch
Expansion
During 2007-08, the Bank has opened 36 new branches besides upgradation of 14
Extension Counters. As on 31/03/2008, the total number of branches stood at
1323 as against 1.273 as on 31/03/2007. The population group-wise
classification of branches as at end-March, 2008 is as under
|
Sr. No. |
Classification |
As
on 31.03.2007 |
As
on 31.03.2007 |
|
1. |
Rural |
264 |
273 |
|
2. |
Semi-urban |
342 |
316 |
|
3. |
Urban |
407 |
408 |
|
4. |
Metropolitan |
260 |
326 |
|
|
Total |
1273 |
1323 |
Customer
Service
In its continued endeavor to provide fair, transparent and quality services to
all the customers, the bank is a member of the Banking Codes & Standards Board
of India (BCSBI) and has adopted and implemented voluntary Code of BCSBI for
individual customers and the same has been put on Bank's website. The code
booklet, was got printed in Hindi & English and circulated to all the
customers & staff.
The Bank has revised & formulated Cheque Collection Policy, Compensation
Policy, Security Repossession Policy and Policy for Grievance Redressal
Mechanism in tine with best practices and all the above policies have been put
on Bank's dynamic & interactive website for general information of
public.
The bank has also launched Web-based Customer Grievance Redressal System during
the year under reference for prompt redresal of customers' grievances. Apart
from above various posters/pamphlets/handouts/circulars containing banks
schemes /products etc., are provided at the branches for further improving
service.
Besides teams have been constituted at branch level for interaction with the
customers and snake them aware of banks various products/scheme.
Know The Customer (KYC) Norms and
Antimoney Laundering (AML) Measures
To comply with the various laws and regulations, national as well as
international, Govt. of India and Reserve Bank of India directives /
instructions & guidelines, primarily to prevent the bank from being used,
intentionally or unintentionally, by criminal elements for money laundering
activities, 'KYC' Policy has been formulated. The Policy combines four key
elements viz. 'Customer Acceptance Policy', 'Customer Identification Procedures',
'Monitoring of Transactions' and 'Risk Management'. This will enable the bank
to know / understand the customers and their financial dealings better and
shall further help in managing risks more prudently. The detailed guidelines
and subsequent instructions are being reiterated from time to time for strict
compliance by the field functionaries. The bank is already complying with the
requirement of submission of statutory returns to the FIU-IND as a sequel to
the new legislation on Prevention of Money Laundering Act-2002. The Bank has
already procured a computer Software solution for complying with KYC/AML norms
and generation of alerts for suspicious nature transactions, which is under
testing and at the final stage of implementation.
Recovery
During the fiscal 2007-08, concerted efforts were continued at all levels and
the Bank has been able to recover Rs. 8838.600 millions in NPA accounts
(including write off), which includes cash recovery amounting to Rs. 5126.700
millions. Out of above total recovery, a sum of Rs. 7537.000 millions
tantamount to reduction in NPAs and remaining amount of Rs. 1301.600 millions
has attributed towards revenue of the Bank. The Bank has effectively utilized
the mechanism of Recovery Camps, One Time Settlement (OTS) scheme for
Distressed Farmers, OTS scheme of Housing Loans & Retail Loans, SARFAESI
Act, Lok Adalat, Sale of Financial Assets to ARGIL as well as General
Settlement Policy of the Bank. Due to improved recovery performance, %age of
Gross NPAs to Gross Advances has come down from 3.200/o as on 31.03.2007 to
2.31% as on 31.03.2008. Many hard core NPAs of the Bank have been resolved
during this period. Out of total 1323 branches of the Bank, there are 209 NPA
free branches as on 31.03.2008.
Management
Discussion And Analysis Report
Macro -Economic Scenario
Gross Domestic Product
The growth of real gross domestic product (GDP) in 2007-08 was placed at 8.7%.
The agriculture Sector accounted for 2.6%, industry 8.6% and Services sector by
10.6%. The Food grains production was expected to increase to an all time high
of 227.3 million tones in 2007-08.
Industrial Sector
Real GDP in industry originating in industry rose by 8.6% in 2007-08 .The Index
of industrial production (IIP) recorded an increase of 8.7% during
April-February 2007-08 vis-a-vis 11.2% a year ago. In manufacturing, which
contributed 89 % of the increase in industrial production, the growth of output
was lower at 9.1% than 12.2% a year ago. Growth in mining at 5.1% was
comparable with 5.0% a year ago while growth in electricity generation
moderated to 6.6% as compared with 7.2%. The industry groups that registered
deceleration of growth include textiles, paper and paper products, non-
metallic products and transport equipments and parts. On the other hand, the
production of metal products and parts except machinery and equipments recorded
a decline. However, the production of capital goods continued to expand at a
sustained pace increasing by 17.5% during April-February 2007-08, over and above
the increase of 18.3% a year ago. The basic, intermediate and consumer
non-durable goods segments recorded lower growth of 7.4%, 9.2% and 8.9%
respectively, as compared with 10.1%, 11.7% and 9.5% a year ago. Production of
consumer durables declined by 1.0% as against an increase of 9.7% a year ago.
The output of key infrastructure industries also registered a lower
growth.
Agriculture
According to RBI real GDP originating in agriculture and allied activities is estimated
to have risen by 2.6% in 2007-08. The total food grains production is expected
to increase to an all time high of 227.3 million tones in 2007-08 from 217.3
million tones in 2006-07. Kharif food grains production is expected to have
risen by 8.6%, where as rabbi foodgrains is expected to increase by 0.5%.Output
is estimated to have risen in the case of rice (2.5%), wheat(1.3%), coarse
cereals (17%) and pulses(7%). Among the commercial crops, production is
estimated to have increased under cotton (2.5%), oilseeds (16.1%) and jute
(2.3%) whereas production of sugarcane declined by 3.2%.
Services Sector
The real GDP originating in the Services Sector rose by 10.60!a during 2007-08
as compared with 11.2% a year ago. Activity in construction and financing,
insurance, real estate and business services sector expanded by 9.6% and 11.7%,
respectively, as compared with 12% and 13.9% in 2006-07. The growth of trade,
hotels and restaurants, transport, storage and communication was 12.1% in
2007-08, marginally higher than 11.8% in 2006-07. Growth in community, social
and personal services at 7% was comparable to 6.9% in the previous year.
Foreign Trade
In US dollar terms, merchandise exports increased by 24.6% during
April-December 2007 and the export growth was driven by petroleum products,
engineering goods and gems and jewellery. During the first nine months of
2007-08, merchandise import growth accelerated to 27.9% from 27.7% a year ago,
mainly due to an increase of 29.9% in non-oil imports from 22.7% a year ago.
The growth in non-oil imports was mainly due to capital goods, pearls and
precious stones, chemicals, gold and silver. Oil imports increased by 24% as
against 39.4% during April-December 2006. On payment basis, the merchandise
trade deficit increased to US $ 66.5 billion during April-December2007 from US
$ 50.3 billion in the corresponding period of 2006-07.
Forex Reserves
Net portfolio flows on account of investments by FIIs surged to US $ 20.3
billion in 2007-08 from US $ 3.2 billion in the previous year. Net inflows in
the form of FDI rose to US $ 25.5 billion in April-February 2007-08 from US $
19.6 billion a year ago. Net inflows under ADRs/GDRs increased to US $ 8.7
billion from US$ 3.8 billion. On the other hand, net accretions to NRI deposits
amounted to US$ 0.1 billion as against US$ 3.9 billion. During 2007-08, the
foreign exchange reserves increased by US$ 110.5 billion to US$ 309.7 billion
by end-March 2008 and stood at US$ 313.5 billion as on April 18,2008.
Price Trend
On year -on year basis, inflation based on the wholesale price index (WPI)
stood at 7.4% at end March,2008 as compared with 5.901o a year ago. During
2007-08, headline inflation declined from 6.4% at the beginning of the
financial year to a low of 3.1% in mid-October before firming up from
mid-February 2008 onwards. On an annual average basis, inflation at 4.7% during
2007-08 was lower than 5.4%in the previous year. As on April, 2008 the headline
inflation stood at 7.3% as against 6.3% a year ago.
Monetary and Banking Trends
Money Supply
Money Supply (M3) increased by 20.7 percent (Rs.6,86,0960 millions) in 2007-08
as compared with 21.5 percent (Rs.5,86,5480 millions) in 2006-07. Bank credit
to the commercial sector increased by 20.3 percent (Rs.4,32,5740 millions) in
2007-08 as compared with increased of 25.8 percent (Rs.4,37,0740 millions) a
year ago. Net bank credit to Government recorded an increase of Rs. 67,3630
millions, with increase in bank's investment of Rs.1,83,3380 millions in
Government securities offset by a decline of Rs.1159750 millions (net) in
Reserve Banks' credit to Government. The large increase in net foreign exchange
assets of the Reserve Bank was reflected in the increase of 38.7 percent
(Rs.3,53,1180 millions) in the banking sector's net foreign exchange
assets.
Scheduled Commercial Banks (SCBs
Business)
Aggregate Deposits of Scheduled
Commercial Banks
Aggregate Deposits of SCBs increased by 22.2 percent (Rs.5, 80,2080 millions)
during 2007-08 as compared with 23.8 percent (Rs.5, 02,8850 millions) in the
previous year. Demand deposits growth at 20.2 percent was higher than 17.9
percent in 2006-07 but time deposits growth moderated to 22.6 percent from 25.1
percent in the previous year. In addition to the mobilization of deposits, the
banking sector's Lendable resources were augmented substantially by capital
raised through public issue and innovative capital instruments during
2007-08.
Bank credit of scheduled Commercial
banks
Non-food credit extended by the scheduled Commercial banks (SCBs) increased by
22.3 percent (Rs.4, 19,4250 millions) as compared with 28.5 percent (Rs.4,
18,2820 millions) in the previous year. The incremental non-food credit-
deposits ratio for the banking system declined to 72.3 percent during 2007-08
from 83.2 percent in 2006-07. 109.3 percent in 2005-06 and 130.0 percent in
2004-05. Food credit of SCBs declined by Rs. 2,1210 millions in 2007-08 as
against an increase of Rs. 5,8300 millions in the previous year. On the
sectorial deployment of bank credit available up to February 2008 indicates
gradual deceleration over the year. On year-on-year basis, credit to services
sector recorded the highest growth (28.4 percent), followed by industry (25.9
percent) and agriculture sector (16.4 percent). On the other hand, growth in
personal Loans decelerated to 13.2 percent (30.6 percent). Growth in housing
Loans and real estate loans decelerated to 12.0 percent (25.8 percent) and 26.7
percent (79.0 percent) respectively. Within the industrial sector, there was a
sizeable credit pick-up in respect of infrastructure (42.1 percent as against
28.2 percent a year ago), food processing (32.0 percent as against 27.6
percent) and engineering (26.2 percent as against 18.1 percent). There was
moderation in credit growth to basic metals and metal products (19.0 percent as
against 33.3 percent), textile (23.0 percent as against 35.5 percent),
petroleum (23.3 percent as against 64.4 percent) and chemicals (13.9 percent as
against 19.2 percent). Credit to industry constituted 45.2 percent of the total
expansion in non-food bank credit up to February 2008, followed by services
(29.8 percent), personal loans (15.8 percent) and agriculture (9.2 percent).
The shares of infrastructure in total credit to industry increased from 20.5
percent to 23.1 percent. On the contrary, the share of credit to metals,
textiles, chemicals and petroleum declined from 12.4 percent, 11.3 percent 8.3
percent and 4.9 percent, respectively, to 11.7 percent, 11.1 percent, 7.5
percent and 4.8 percent. Priority sector advances grew by 16.9 percent with a
moderation in their share in outstanding gross bank credit to 33.3 percent in
February 2008 from 34.7 percent a year ago.
Investments of Scheduled Commercial Banks
Scheduled Commercial Banks investments in bonds/ debentures/ shares of public
sector undertakings and the private corporate sector and commercial paper
increased by 14.2 percent (Rs.11,8300 millions) during 2007-08 as compared with
an increase of 5.1 percent (Rs. 4,0810 millions) in the previous year. As a
result, the total flow of funds from SCBs to the commercial sector, including
non-SLR investment, increased by 21.9 percent (Rs. 4, 31,2560 millions) in
2007-08 as against 27.3 percent (Rs. 4, 22,3630 millions) in 200607. Banks'
investment in instruments issued by mutual funds increased by Rs. 6,8180
millions in 2007-08 as compared with Rs. 1,3150 millions in 2006-07. Commercial
banks' investment in Government and other approved securities increased by 22.9
percent (Rs. 1,81,2220 millions) during 2007-08 significantly higher than 10.3
percent (Rs. 74,0620 millions) in 2006-07. Accordingly, their stock of
statutory liquidity ratio (SLR) eligible securities marginally increased to
27.4 percent of the banking system's net demand and time liabilities (NDTL) in
March 2008 from 27.3 percent in March 2007. Banks' holdings of SLR securities
in excess of the prescribed ratio of 25 percent amounted to Rs. 1, 02,4220
millions although several banks were operating their SLR portfolio close to the
prescribed level. Adjusted for collateral securities under the liquidity
adjustment facility (LAF) and issuances under the market stabilization scheme
(MSS), banks' investment in SLR eligible securities would amount to 23.7
percent of NDTL.
Information
Technology
Core Banking Initiatives
During the year 2007-2008, 262 additional Branches and
Extension Counters were brought under CBS environment bringing all the Branches
and Extension Counters, Service Branches, Regional. Offices and Head Office
Departments under CBS, thus achieving 100% CBS status for the Bank. This feat
was formally announced in a special function held on 31st March 2008 at New
Delhi,inaugurated by the Hon'ble Finance Minister, Government of India.
The Bank has thus been brought on contemporary technology platform with all of
its Branches under Core Banking Solution mode covering 100% of its Business
through 1402 Customer Service locations (1323 Branches and 79 Extension
Counters) located in almost all cities/ Towns on Core Banking Solution platform
enabling RTGS,NEFT, Tele Banking and Internet Banking services. More than 10
million customers of the Bank are enjoying the array of IT enabled products
like Anywhere Anytime Banking, Flexi Deposits, and Cash Management Services
etc. All the CBS branches are also offering secure NEFT remittance facilities
using SFMS platform of IDRBT.
The bank has designed and implemented the Centralized Core Banking Solution
which is Relational Data Based Management System conforming to Industry
accepted Global Standards with a three tier solution architecture and web based
technology. The complete technical migration from different legacies to CBS
environment has been done by Bank's highly skilled and dedicated in house team
thereby resulting in savings in cost and time in completing this exercise. This
has been achieved in a short time and cost effective manner. It would be
pertinent to mention that during this process the technological platform which
was existing in erstwhile Global Trust Bank was also successfully and
seamlessly integrated with It infrastructure of our Bank. This process of IT
integration involved major challenges such as merging of heterogeneous Wide
Area Network, mapping of business and technical parameters, version of Core
Banking Solution, integration of Data Centres and ATM Networks etc. The model
adopted by the Bank is safe, secure and robust ensuring zero data toss by
setting up of Near Line Site apart from Disaster recovery Setup.
New Projects
The Bank has already taken up implementation of Integrated Treasury Solution
linking Domestic and International treasury and also the Anti Money
laundering/KYC project. The Bank has already started participating in the
Cheque Truncation System Project of RBI at NCR. The Project of SMS Banking has
been kicked off and is expected to go live in the First quarter of 2008-2009,
adding another value added service for the customers of the Bank. The Bank is
also going for the Data Ware Housing and Human Resource Management systems
packages for leveraging the technology for meeting the competition from peer
group Bank and others. Further, the penetration of technology in far remote
areas through mobile technology is also high on its Agenda to achieve Financial
Inclusion of the masses across the country.
Opportunities
The Bank is poised for a big leap forward and the profitability is set to soar
to newer, heights. Notwithstanding the threats the Bank is likely to face, the
Bank has designed a strategy for planned growth ref CASA deposits to corner
maximum 'Low cost deposits. The Bank is likely open its offices at 65 new
locations during the current year and a Representative office in Dubai subject
to various clearances. The Bank has already established 741 ATMs and more are
likely to be installed soon. The Total Business of the Bank has crossed Rs.
1,330000 millions and the next year the bank hopes to do well. The Bank has
absorbed the entire loss of erstwhile Global Trust Bank and the Balance Sheet
of the Bank is now clean with no trace of any remnants of the past merger. The
Bank has written off the loss in four years instead of permissible five years
period. In the next year, there would be no burden of past legacy and therefore
a higher profit level can be envisaged. The Bank has unleashed an innovative
plan for a shift to click banking faster and steps have been taken to
popularize use of ATMs/ Electronic Funds Transfer arid increase the card base.
The Bank has also introduced CASHMATE card for exclusive use of student
community. This would reduce the transaction cost of the Bank and a higher net
interest margin. The proposed joint venture between Canara Bank & HSBC
Insurance ( Asia-Pacific) Holdings Ltd. is likely to take off this year after
ail the approvals are in place. It would afford ample opportunities to the Bank
not only for shoring up its non-interest income but also help in increasing its
customer base. Thus immense business opportunities are Likely to emerge in the
current and the Bank is fully equipped to meet all the challenges and to move
ahead.
Outlook
The IMF has predicted that the global growth will slow down to 3.7% in 2008
well below the 4.9% growth seen in 2007. The outlook for the global financial
system is overcast by the rising incidences of losses and write offs in the
banking system in the US and Europe amidst dislocations in he securitized
credit market. Global financial markets have exhibited heightened uncertainties
surrounding the viability of financial guarantors and doubts about their
business models. The fall out of .slower growth in the US is likely to impact
all emerging economies sooner than later. It is in this context that the GDP
growth in the current year is likely to be a little Less than before and may
hover in. the range of 8.08.500. The inflation is likely to be brought down to
4.0-4.5% and Money Supply in the range of 16.5-17% in the current year.
Therefore in the current fiscal the Deposit Growth is placed around 17% and the
advances growth at about 20%.
Press
Release For The Financial Year 2007-2008
Major highlights:
·
Bank achieves 100% CBS in all Branches/ Retail Outlets
(1402).
·
Write off of amortised GTB Losses advanced by a year (Rs
487 Crores), Dividend maintained (47%).
·
Total Business exceeds Rs. 1.33 lacs Crores. Poised to
achieve Total Business of Rs 2 lacs Crores by 2010.
·
Customer base crosses 10.40 million with greater focus on
Demand Deposits.
·
Greater focus on Rural Development & Financial
Inclusion – Biometric ATM and Mobile Banking Launched.
·
OBC Leverages Technology – Adds innovative products &
services: Online Equity Trading, OBC e-Shopping, OBC e-Taxes, Online Education
Loans.
·
Overseas foothold to be achieved shortly with
representative office in Dubai, Plans for Branch at Lahore, Bank’s birth place.
·
Joint Venture with HSBC and Canara Bank entered into for
Life Insurance Business.
Key
Performance Highlights
Total Business Rs. 1,33,1840 millions UP
BY 22 %
Total business has gone up by Rs. 237930 millions (by
22 %) to Rs.1,33,1840 millions as on March 2008 from Rs.1,09,3910 millions as
on March 2007.
Capital Adequacy Ratio - 12.12%
CAR as of March 2008 is 12.12 % as against 9% prescribed by
RBI.
Gross NPA - 2.31 %
Gross NPA reduced to Rs.1280 Crores (2.31%) as on March 2008
from Rs. 14540 millions (3.20%) as on March 2007.
NET NPA: 0.99%
Net NPA stands at Rs 5380 millions as
on March 2008.
Net Profit At Rs. 8410 millions
Net Profit after tax up at Rs. 8410 millions for
the year ended March 2008 as against Rs. 8270 millions for
the year ended March 2007.
Business Per Employee Rs. 92.500 millions
Employee Productivity has gone up to Rs. 92.500 millions as
on 31st March 2008 from Rs.74.300 millions as on 31st March 2007.
Business Per Branch Rs 1006.700 millions
Business per branch crosses the landmark figure of Rs.100
Crores and rises to Rs 1006.700 millions as on 31.03.08 from Rs.
859.300 millions as on 31.03.07
Deposits
and advances:
Rs. in millions
|
|
Mar –
07 |
Mar –
08 |
Growth |
Increase
|
|
Deposits |
639960 |
778570 |
138610 |
21.7% |
|
Advances (Gross) |
453950 |
553270 |
99320 |
21.9% |
Deposits have grown by 21.7 % & Advances have grown by
21.9 %.
Priority Sector
Lending
|
|
March 07 |
% to net advances |
March 08 |
% to net advances |
Y-o-Y Gr % |
|
Priority
Credit O/s |
15955 |
36% |
18760 |
42.50% |
17.50% |
|
Agriculture
Advances |
5732 |
11% |
6930 |
12.35% |
20.90% |
|
SE
Advances |
3364 |
8% |
5015 |
11.36% |
49.07% |
|
SME
Advances |
5047 |
12% |
6228 |
14.11% |
23.40% |
Priority Sector Lending stood at Rs. 187600 millions as
on March 2008 as against 159550 millions as on March 07 which shows an
increase of 17.5%.
Small
Enterprises
SE advances have risen to Rs.50150 millions as
on March 08 as against Rs 33640 millions as on March 2007(growth of
49%).
Operating
Efficiency
Non Interest Income
( Rs. in millions )
|
|
Mar
– 07 |
Mar
– 08 |
Increase |
|
Non Interest Income |
6030 |
6170 |
140 |
|
Out of which Treasury Income |
1110 |
1540 |
430 |
EPS
and Book Value
Earnings Per Share (after write off) as on 31.03.2008,
works out to Rs. 14.10 as against Rs.23.18 previous year. Book Value stands
Rs. 226.15 per share as on 31.03.08.
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.43.37 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.68.08 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
