MIRA
INFORM REPORT
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Report Date : |
22.11.2008 |
IDENTIFICATION DETAILS
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Name : |
BANK OF |
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Registered Office : |
Bank of |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Year of Establishment : |
1908 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDB01794C |
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PAN No.: [Permanent
Account No.] |
AAACB1534F |
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Legal Form : |
Subject is a Government of India Bank. The Bank’s Shares are traded on the Stock Exchanges. |
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Line of Business : |
Banking Activities |
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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Maximum Credit Limit : |
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 : |
Subject is a well-established and reputed bank having fine track. The bank is progressing well. Directors are reported as experience of and respectable business. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.
Fundamentals are strong and healthy.
The bank can be considered normal for business dealings at usual trade terms and conditions.
The bank can be regarded as a promising business partner in a medium to long-run. |
LOCATIONS
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Registered Office : |
Bank of |
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Tel. No.: |
91-265-2330274 /2563932 |
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Fax No.: |
91-265-2330824 / 2562445 |
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E-Mail : |
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Website : |
http://www.bankofbaroda.com |
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Head Office : |
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Tel. No.: |
91-0265-2361852 (10 Lines) |
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Fax No.: |
91-0265-2362395 / 2361824/ 2361806 |
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Corporate Office : |
C-26, G-Block, Badra
Kurla, Bandra, Mumbai-400051 |
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Tel. No.: |
91-22-66985000 / 04 |
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Fax No.: |
91-22-26523500 |
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Central Office : |
3, Walchand Hirachand Marg, Ballard Pier, Mumbai – 400001,
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Branches : |
The bank has 2715 domestic branches and 39 foreign
branches in all major cities in |
DIRECTORS
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Name : |
Mr. Anil K Khandelwal |
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Designation : |
Chairman
& Managing Director |
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Name : |
Mr. M. D. Mallya |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. V Santhanaraman |
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Designation : |
Executive
Director |
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Name : |
Mr. Satish C Gupta |
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Designation : |
Executive
Director & Whole time Director |
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Name : |
Mr. G C Chaturvedi |
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Designation : |
Nominee
(Government) |
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Name : |
Mr. A Somasundaram |
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Designation : |
Director
Nominee (RBI) |
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Name : |
Mr. Milind N Nadkarni |
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Designation : |
Director |
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Name : |
Mr. Amarjit Chopra |
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Designation : |
Director |
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Name : |
Mrs. Masarrat Shahid |
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Designation : |
Director |
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Name : |
Mr. Maulin A Vaishnav |
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Designation : |
Director |
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Name : |
Mr. Dharmendra Bhandari |
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Designation : |
Director |
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Name : |
Mr. Manesh Prabhulal Mehta |
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Designation : |
Director |
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Name : |
Mr. Deepak Bhaskar Phatak |
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Designation : |
Director |
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Name : |
Mr.
Amitabh Verma |
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Designation : |
Director
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Name : |
Mr. Ranjit
Kumar Chatterjee |
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Designation : |
Director
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Name : |
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Designation : |
Director
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KEY EXECUTIVES
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Name : |
Mr. T.K. Balasubramanian |
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Designation : |
Senior Manager |
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Address : |
T. Nagar Branch, Bank of |
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Date of Birth/Age : |
11.06.1947 / 59 Years |
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Qualification : |
M. Com., CAIIB-1 |
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Name : |
Mr. V. J. Sanmthanam |
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Designation : |
General Manager |
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Name : |
Mr. B. Samant |
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Designation : |
General Manager |
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Name : |
Mr. R. K. Garg |
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Designation : |
General Manager |
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Name : |
Mr. B. A. Prabhakar |
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Designation : |
General Manager |
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Name : |
Mr. A. D. Parulkar |
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Designation : |
General Manager |
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Name : |
Mr. V. B. L. Saksena |
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Designation : |
General Manager |
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Name : |
Mr. M. L. Rathi |
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Designation : |
General Manager |
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Name : |
Mr. B. D. Joshi |
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Designation : |
General Manager |
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Name : |
Mr. C. H. Palan |
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Designation : |
General Manager |
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Name : |
MR. S. Vaidyanathan |
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Designation : |
General Manager |
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Name : |
Mr. Amitav Sanyal |
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Designation : |
General Manager |
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Name : |
Mr. D. A. Parekh |
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Designation : |
General Manager |
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Name : |
Mr. A. C. Suri |
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Designation : |
General Manager |
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Name : |
Mr. Muneer Khan |
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Designation : |
General Manager |
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Name : |
Mr. D. Rajagopalan |
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Designation : |
General Manager |
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Name : |
Mr. R. K. Bansal |
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Designation : |
General Manager |
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Name : |
Mr. V. K. Sharma |
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Designation : |
General Manager |
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Name : |
Mr. D. D. Maheshwari |
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Designation : |
General Manager |
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Name : |
Mr. K. N. Suvarna |
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Designation : |
General Manager |
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Name : |
Mr. A. S. Khurana |
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Designation : |
General Manager |
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Name : |
Mr. M. S. Malhotra |
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Designation : |
General Manager |
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Name : |
Mr. K. K. Agarwal |
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Designation : |
General Manager |
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Name : |
Dr. K. C. Chakrabarty |
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Designation : |
General Manager |
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Name : |
Mr. R. Krishnamurthy |
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Designation : |
General Manager |
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Name : |
Mr. V. Chandrasekhar |
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Designation : |
General Manager |
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Name : |
Mr. B. G. Baria |
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Designation : |
General Manager |
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Name : |
Mr. J. K. Chander |
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Designation : |
General Manager |
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Name : |
Mr. T. K. Krishnan |
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Designation : |
General Manager |
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Name : |
Mr. B. P. Chakraborty |
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Designation : |
General Manager |
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Name : |
Mr. T. V. Lakshminarayanan |
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Designation : |
General Manager |
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Name : |
Dr. S. C. Mehta |
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Designation : |
General Manager |
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Name : |
Mr. R. P. Bansal |
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Designation : |
General Manager |
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Name : |
Mr. M. T. UDeshi |
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Designation : |
General Manager |
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Name : |
Mr. S. S. Kelkar |
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Designation : |
General Manager |
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Name : |
Mr. M. M. Gadgil |
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Designation : |
General Manager |
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Name : |
Mr. D. K. Govil |
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Designation : |
General Manager |
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Name : |
Mr. Manubhai Parekh |
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Designation : |
General Manager |
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Name : |
Mr. N. L. Khurana |
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Designation : |
General Manager |
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Name : |
Mr. S. P. Agarwal |
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Designation : |
General Manager |
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Name : |
Mr. R. K. Bhalla |
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Designation : |
General Manager |
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Name : |
Mr. S. K. Bansal |
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Designation : |
General Manager |
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Name : |
Mr. V. S. Hegde |
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Designation : |
General Manager |
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Name : |
Mr. G. G. Joshi |
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Designation : |
General Manager |
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Name : |
Mr. P. S. Joshi |
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Designation : |
General Manager |
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Name : |
Mr. M. P. Ranade |
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Designation : |
General Manager |
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Name : |
Mr. N. K. Kapoor |
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Designation : |
General Manager |
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Name : |
Mr. Asit Pal |
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Designation : |
General Manager |
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Name : |
Mr. A. R. Sugumaran |
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Designation : |
General Manager |
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Name : |
Mr. S. P. Garg |
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Designation : |
General Manager |
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Name : |
Mr. Cyril Patro |
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Designation : |
General Manager |
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Name : |
Mr. Prakash Jain |
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Designation : |
General Manager |
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Name : |
Mr. R. K. Velu |
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Designation : |
General Manager |
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Name : |
Mr. P. V. Desai |
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Designation : |
General Manager |
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Name : |
Mr. N. R. Badrinarayan |
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Designation : |
General Manager |
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Name : |
Mr. B. Krishna Kumar |
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Designation : |
General Manager |
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Name : |
Mr. P. L. Kagalwala |
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Designation : |
General Manager |
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Name : |
Mr. D. Sarkar |
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Designation : |
General Manager |
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Name : |
Mr. S. C. Kalia |
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Designation : |
General Manager |
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Name : |
Mr. V. K. Vig |
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Designation : |
General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 30.09.2008)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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SHAREHOLDING OF PROMOTER AND PROMOTER GROUP |
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INDIAN |
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Individuals/ Hindu Undivided Family |
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Central Government/State Government(s) |
196000000 |
53.81 |
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PUBLIC SHAREHOLDING |
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INSTITUTIONS |
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Mutual Funds / Axis |
42895370 |
11.78 |
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Financial Institutions / Banks |
994474 |
0.27 |
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Insurance Companies |
23554249 |
6.47 |
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Foreign Institutional Investors |
68885242 |
18.91 |
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NON-INSTITUTIONS |
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Bodies Corporate |
5449263 |
1.50 |
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Individuals |
0 |
0 |
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Individual Shareholders holding nominal share capital upto
Rs. 0.100 Million |
22607144 |
6.21 |
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Individuals Shareholders holding nominal share capital in excess of Rs. 0.100 Million |
748440 |
0.21 |
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Non Resident Indians |
2253642 |
0.62 |
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Overseas Corporate Bodies |
26200 |
0.01 |
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Trusts |
21654 |
0.01 |
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Total |
364266500 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Banking Activities |
GENERAL INFORMATION
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No. of Employees : |
38774 |
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Bankers : |
·
State Bank of ·
Reserve Bank of |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Chartered Accountants
Chartered Accountants
Chartered Accountants
Chartered Accountants
· Shah Gupta & Company Chartered Accountants
Chartered Accountants |
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Associates/Subsidiaries : |
·
Indo Zambia Bank Limited, · Raebareli Kshetriya Gramin Bank · Sultanpur Kshetriya Gramin Bank · Allahabad Kshetriya Gramin Bank · Kanpur Kshetriya Gramin Bank · Pratapgarh Kshetriya Gramin Bank · Fatehpur Kshetriya Gramin Bank · Faizabad Kshetriya Gramin Bank · Bareilly Kshetriya Gramin Bank · Shahjahanpur Kshetriya Gramin Bank · Nainital Almora Kshetriya Gramin Bank · Marudhar Kshetriya Gramin Bank · Aravali Kshetriya Gramin Bank · Bundi Chittorgarh Kshetriya Gramin Bank · Bhilwara Ajmer Kshetriya Gramin Bank · Dungarpur Banswara Kshetriya Gramin Bank |
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in
· Nainital Bank Limited · BOB Housing Finance Limited · BOB Asset Management Company Limited · BOB Capital Markets Limited · BOB Cards Limited
overseas
·
Bank of ·
Bank of ( ·
BOB International Finance Limited, ·
Bank of ·
Bank of ·
BOB ( |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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1500000000 |
Equity Share |
Rs.10/- each |
Rs.15000.000 Millions |
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Issued &Subscribed Capital :
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No. of Shares |
Type |
Value |
Amount |
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367000000 |
Equity Share |
Rs.10/- each
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Rs.3670.000
Millions |
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Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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364266400 |
Equity Share (Including 196000000 Equity Shares amounting
to Rs.1960.000 Millions held by central Government) |
Rs.10/- each
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Rs.3642.664
Millions |
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Add: Forfeited Shares |
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Rs.12.613 Millions |
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Total |
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Rs.3655.277 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Capital |
3655.277 |
3655.300
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3655.300 |
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Reserves and Surplus |
106783.991 |
82844.100
|
74789.100 |
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Deposits |
1520341.272 |
1249159.800
|
936619.900 |
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Borrowings |
39270.480 |
11425.600
|
48022.000 |
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Other Liabilities |
125944.142 |
84377.000
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70839.000 |
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Total |
1795995.162 |
1431461.800 |
1133925.300 |
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Cash & Balance with RBI |
93697.234 |
64135.200
|
33334.300 |
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Balances with Banks & Money at Call & Short Notice |
129295.633 |
118668.500
|
101212.100 |
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Investments |
438700.678 |
349436.300
|
3511142.200 |
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Advances |
1067013.241 |
836208.700
|
599117.800 |
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Fixed Assets |
24270.081 |
10888.100
|
9207.300 |
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Other Assets |
43018.295 |
52125.000
|
39911.600 |
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Total |
1795995.162 |
1431461.800 |
1133925.300 |
PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Interest Earned |
118134.767 |
92126.400 |
71000.000 |
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Other Income |
20510.361 |
14340.300 |
12903.300 |
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Total Income |
138645.128 |
106466.700 |
83903.300 |
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Interest Expended |
79016.706 |
54265.600 |
38750.900 |
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Operating Expenses |
29342.921 |
27970.400 |
24828.600 |
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Provisions & Contingencies |
15930.286 |
13966.100 |
12054.200 |
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Total |
124289.913 |
96202.100 |
75633.700 |
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Net profit for the Year |
14355.215 |
10264.600 |
8269.600 |
QUARTERLY
RESULTS
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PARTICULARS |
|
30.06.2008 (1st
Quarter) |
30.09.2008 (2nd Quarter) |
|
Sales Turnover |
|
32938.200 |
35509.800 |
|
Other Income |
|
5125.500 |
4759.200 |
|
Total Income |
|
38063.700 |
40269.000 |
|
Total Expenditure |
|
9896.800 |
10059.700 |
|
Operating Profit |
|
28166.900 |
30209.300 |
|
Interest |
|
22368.100 |
24172.100 |
|
Gross Profit |
|
5798.800 |
6037.200 |
|
Depreciation |
|
0.000 |
0.000 |
|
Tax |
|
2090.200 |
2084.300 |
|
Reported PAT |
|
3708.600 |
3952.900 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Credit Deposit Ratio |
68.72 |
65.67 |
59.04
|
|
Investment Deposit Ratio |
28.46 |
32.05 |
41.25
|
|
Cash Deposit Ratio |
5.70 |
4.46 |
3.45
|
|
Interest Expended / Interest Earned |
66.89 |
58.90 |
54.58
|
|
Other Income / Total Income |
14.96 |
13.47 |
15.38
|
|
Operating Expense / Total Income |
21.27 |
26.27 |
29.59
|
|
Interest Income / Total Funds |
7.32 |
7.18 |
6.83
|
|
Interest Expended / Total Funds |
4.90 |
4.23 |
3.73
|
|
Net Interest Income / Total Funds |
2.42 |
2.95 |
3.10
|
|
Non Interest Income / Total Funds |
1.29 |
1.12 |
1.24
|
|
Operating Expense / Total Income |
1.83 |
2.18 |
2.39
|
|
Profit Before Provision / Total Funds |
1.88 |
1.89 |
1.95
|
|
Net Profit / Total Funds |
0.89 |
0.80 |
0.79
|
|
Return On Net Worth (%) |
14.58 |
12.45 |
12.28
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
A public sector bank going towards 100 year services in
banking sector, which was incorporated in the year of 1908 by Sir Maharaja Sayajirao
Gaekwad - III of Baroda. Subject was nationalised in 1969 and the first branch
of the Bank was opened in the city of Ahmadabad in 1910 , the fifth largest
bank in India have 2772 branches across the country and overseas also, out of
that 616 branches and offices including 47 specialized branches were brought
under ISO certification. It provides lending, banking, financing
rehabilitation, treasury and investment management services to consumers and to
industries. It was the first to venture overseas. Company realigning its
operations into four business lines - retail, rural and agriculture, small and
medium enterprises and corporate banking -in sync with market needs. The
realignment envisages shifting of all mid-corporate and large corporate accounts
from the bank's retail branches to its wholesale banking branches and bank want
to shift from functional approach to a business segment focus, especially at
branches on core banking platform.
In the year end of 1996 company entered into capital market. The Benares State
Bank was integrated with the Bank at June, 2002. During the year 2002-03 Debit
Card project was launched in affiliation with VISA. The project envisages
installation of 500 ATMs in consequent financial year of the bank. Further the
Bank has amalgamated South Gujarat Local Area Bank Limited with itself with
effect from 24th June 2004. In the year 2004-05 the bank has expanded its
interconnected ATM network to cross 501, spread over 180 centres in the
country. The bank has also introduced 8AM to 8PM banking at 101 branches and
24-Hour banking at 5 branches in the country and in the same year the bank has
merged its 11 branches (1- metro, 3- Urban,3- Semi-urban and 4- rural).
Subject has launched its new logo 'The
Baroda Sun' in June 2005 subsequently the bank has commissioned global data
center during the year 2006 and also given inter-connectivity for over 1300
branches in the country. Subject has commissioned 464 new ATMs across the
country taking the tally to 634 in the year 2006. During 2006-07, as part of
Branch Consolidation Exercise 22 branches were merged with the Bank
itself.
As of 2007, subject has identified Legal & General, the UK-based life
insurance company as a partner for its life-insurance venture with initial
capital of about Rs.2000.000 Millions. In 2007 April, company has opened
Gen-Next, the youth-oriented branch. The GenNext Branch is the first of its
kind in the country where the bank has created facilities that will appeal to
the young professionals which have new products for the youth segment -
Gen-Next Lifestyle, Gen-Next Power, Gen-Next Suvidha and Gen-Next Junior. In
the month of May in the same year Bank of Baroda and Dun & Bradstreet
(D&B) have signed an agreement regarding assign ratings to the bank's
small-scale industry (SSI) customers. The bank's SSI customers will get
D&B's globally accepted rating at a special fee, it help them tap global
business opportunities. As on 6th October 2007 Pioneer Global Asset Management
Suvject pursuing Multi-Specialist Banking and plans to open four new branches
in the eastern region as part of century year celebrations and also company is
go ahead to expand its presence in the global market by increasing the number
of its overseas branches and also acquisitions and joint ventures abroad. The
overseas acquisition is part of company global expansion drive as the bank
intends to reach the landmark of 100 foreign branches in the next five year,
besides penetration in the countries where it has presence. Approvals are in
place for opening branches/offices in
PERFORMANCE
HIGHLIGHTS
- Total
Business (Deposit+ Advances) increased to Rs 2587354.500 Millions
reflecting a growth of 24.07%.
- Gross Profit
and Net Profit were Rs 30285.500 Millions and Rs 14355.200 Millions
respectively. Net Profit registered a growth of 39.85% over previous
year.
- Credit-Deposit
Ratio stood at 77.32% as against 74.35%.
- Retail Credit
posted a decent growth of 17.97% constituting 19.79% of Gross Domestic
Credit against 20.98% last year.
- Net Interest
Margin (NIM) as per cent of interest earning assets was at the level of
2.90%.
- Net NPAs to
Net Advances declined from 0.60% last year to 0.47%.
- Capital
Adequacy Ratio (CAR) as per
- Net Worth
improved to Rs 95269.700 Millions registering a rise of 12.93%.
- Book Value
improved from Rs 23.159 Millions to Rs 26.154 Millions
- Business per
Employee moved up from Rs 54.800 Millions to Rs 70.400 Millions.
SEGMENT-WISE
PERFORMANCE
The Segment Results for the year 2007-08 of Rs. 33015.200 Millions have been
contributed by the Treasury Operations to the extent of Rs.7887.900 Millions,
Rs.1751.400 Millions by Corporate/ Wholesale banking, Rs 9373.700 Millions by
Retail Banking and Rs 14002.200 Millions by Other Banking Operations. The Bank
earned Profit after Tax of Rs.14355.200 Millions after deducting Rs.10943.700
Millions of unallocated expenditure and Rs.7716.300 Millions as provision for
tax.
MANAGEMENT DISCUSSION
AND ANALYSIS:
ECONOMIC ENVIRONMENT:
Indian economy grew by 9.0 per cent in 2007-08 supported by the growth of 4.5 per cent in agriculture, 8.5 per cent in industry and 10.8 per cent in services. The current growth phase of the economy is powered by the rise in capital investments. During April-February, 2007-08 the capital goods production recorded a robust growth of 17.5 per cent. The continued capacity addition by manufacturing firms helped this growth of capital goods.
Corporate activity remained quite healthy during 2007-08, though in comparative
terms, it witnessed some moderation in growth over the previous year. While the
sales of a representative sample of private sector companies grew by 17.4 per
cent in April-December 2007, the net profits grew by a robust 29.8 per
cent.
Inflation, however, emerged as the major macro risk towards the end of 2007-08.
On an annual average basis, inflation (measured in terms of WPI) at 4.7 per
cent during 2007-08 was lower than 5.4 per cent in 2006-07. However, on a
year-on-year basis, it stood at 7.4 per cent at end-March 2008 as against 5.9
per cent a year ago. Major contributors to rising inflation have been high
prices of foodgrains, fruits, vegetables, edible oils, crude oil and metals.
International crude oil prices have been rising sharply since June 2007,
reflecting tight supply situation, geo-political tensions, weakening of the
dollar, etc. During the year 2007-08, the global crude oil price reached a high
of $110.2 a barrel on March 13, 2008 on the back of a sharp decline in the
Global financial markets witnessed turbulent conditions during 2007-08 as a
result of deepening crisis in the
According to the Ministry of Commerce, total foreign direct investment (FDI)
inflows into
Even though the rupee appreciated 7.8 per cent against the U.S. dollar in
2007-08,
The government's fiscal deficit in the first eleven months of 2007-08 declined
13.5 per cent on year-on-year basis and accounted for 73.4 per cent of the
revised budget target for the entire financial year. In the Union Budget for
2008-09, the government has projected that the central government's fiscal
deficit would narrow from 3.1 per cent of GDP in 2007-08 to 2.5 per cent in
2008-09.
BANKING SECTOR: KEY
DEVELOPMENTS, OPPORTUNITIES & CHALLENGES:
Indian banking industry witnessed some slowdown in credit expansion during 2007-08. The non-food credit extended by the scheduled commercial banks (SCBs) increased by 22.3 per cent as against 28.5 per cent the previous year. The incremental non-food credit-deposit ratio of the banking system declined to 72.3 per cent from 83.2 per cent in the previous year. The sectoral deployment of credit shows that the credit to services sector recorded the highest growth (28.4%, Y-o-Y), followed by industry (25.9%) and agriculture sector (16.4%). However, the growth in personal loans decelerated to 13.2 per cent (30.6% last year). Growth in housing and real estate loans decelerated to 12.0 per cent (25.8%) and 26.7 per cent (79.0%), respectively. Within the industrial sector, there was a sizeable credit pick-up in respect of infrastructure (42.1% as against 28.2% a year ago), food processing (32.0% as against 27.6%) and engineering (26.2% as against 18.1%). There was a moderation in credit growth to basic metals and metal products (19.0% as against 33.3%), textiles (23.0% as against 35.5%), petroleum (23.3% as against 64.4%), and chemicals (13.9% as against 19.2%).
INVESTMENT
BY SCBS
While SCBs' investment in bonds/debentures/shares of public sector undertakings
and the private corporate sector and commercial paper (CP) increased by 14.2
per cent in 2007-08, their investment in government and other approved
securities increased by 22.9 per cent This raised the proportion of SLR
securities in net demand and time liabilities to 27.4 per cent in
2007-08.
RESOURCE MOBILISATION
Aggregate deposits of SCBs increased by 22.2 per cent during
2007-08 as against 23.8 per cent the previous year. While the demand deposit
growth at 20.2 per cent was higher than 17.9 per cent in 2006-07, the time
deposit growth moderated to 22.6 per cent from 25.1 per cent the previous year.
In addition to the mobilization of deposits, the banking sector's lendable
resources were augmented substantially by capital raised through public issues
and innovative capital instruments.
CHALLENGES AND OPPORTUNITIES FOR BANKS IN
2007-08
During the year 2007-08, successive increases in the CRR and zero interest on
CRR balances have had significant impact on interest yields for banks.
According to CRISIL, the SCBs had to take a hit of 7 basis points (annualized)
on their spreads and net profit margins solely due to these RBI measures.
Operating cost pressures weighed on banks throughout 2007-08 due to higher
investments in franchise, manpower, etc. The state-owned banks still face a
greater burden due to the impending wage agreement.
Despite these challenges, Indian banking industry continues to remain strong on
structural ground on the back of relatively stronger macro fundamentals,
under-tapped potential in rural and semi-urban areas for credit penetration,
favourable demographic profile and a stronger institutional and regulatory
framework. During the year 2007-08, infrastructure and SME segments emerged as
the major growth drivers for the Indian banking industry. The banks witnessed
an encouraging fee income momentum as well. In the backdrop of relatively
benign liquidity conditions, the banks significantly reduced their dependence
on higher-cost funds. On the whole, the outlook for the sector remains
positive despite heightened uncertainties in the economic environment.
MARKET
RISK
Market risk is the risk that exposure to price movements of financial
instruments arising as a result of changes in market variables, such as
interest rates, exchange rates and other asset prices, will result in loss suffered
by the Bank. The objective of market risk management is to avoid excessive
exposure of the Bank's earnings and equity to loss and to reduce the Bank's
exposure to the volatility inherent in financial instruments such as
securities, foreign exchange contracts, equity and derivative instruments, as
well as balance sheet or structural positions. The primary risk that arises for
the Bank as a financial intermediary is interest rate risk due to the Bank's
asset-liabilities management activities. Other market related risks to which
the Bank is exposed are foreign exchange risk on foreign currency positions,
liquidity, or funding risk, and price risk on trading portfolios.
The Bank has a clearly articulated integrated treasury management policy and
asset liability management policy to address market risk. These policies
comprise management practices, procedures, prudential risk limits, review
mechanisms and reporting systems. These policies are revised periodically in
line with changes in financial and market conditions.
Interest rate risk is measured through interest rate sensitivity gap report and
Earning at Risk. Further, Bank is calculating duration, modified duration,
Value at Risk for its investment portfolio consisting of fixed income
securities, equities and Forex positions on monthly basis. The bank monitors
the short term Interest rate risk by NII (Net Interest Income) perspective and
long term interest rate risk by EVE (Economic Value of Equity) perspective.
Value at Risk for the treasury positions is calculated for 10 days holding
period at 99% confidence level. Stress testing of fixed interest investment
portfolio through sensitivity analysis and equities through scenario analysis
is regularly conducted. Based on the RBI directions the bank is also estimating
the Economic value of equity impact on a quarterly basis.
OPERATIONAL
RISK
The Bank faces operational risk on account of inadequate or failed internal
process, people and systems or external events. To monitor operational risk on
an on-going basis, the Bank has established an Operational Risk Management
Committee (ORMC) under the overall supervision of Sub- Committee of Board on
ALM and Risk Management. ORMC meets on a regular basis to review matters
relating to operational risk.
The Bank monitors operational risk by reviewing whether its internal systems
and procedures are duly complied with. The Bank collects and analyses data on
operational risk based on various different parameters on a half yearly basis
and, where necessary, corrective steps are taken.
WEB DETAILS:
PROFILE:
It has been a long and eventful journey of
almost a century across 21 countries. Starting in 1908 from a small building in
It is a story scripted in corporate wisdom
and social pride. It is a story crafted in private capital, princely patronage
and state ownership. It is a story of ordinary bankers and their extraordinary
contribution in the ascent of Bank of Baroda to the formidable heights of
corporate glory. It is a story that needs to be shared with all those millions
of people - customers, stakeholders, employees & the public at large - who
in ample measure, have contributed to the making of an institution.
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.03 |
|
|
1 |
Rs.74.42 |
|
Euro |
1 |
Rs.62.71 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
|
72 |
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 |
|