MIRA
INFORM REPORT
|
Report Date : |
24.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
INDIAN OVERSEAS
BANK |
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Registered Office : |
763, Anna Salai, Chennai - 600 002, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
10.02.1937 |
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Legal Form : |
It is a Commercial Bank. The bank’s shares are listed on
the stock exchanges. |
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Line of Business : |
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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Maximum Credit Limit : |
Large |
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Status : |
Very 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 commercial bank,
owned by the Government of India.
Available information indicates high financial responsibility of the
bank. General financial position of
the bank is good. Payments are always correct and as per commitments.
The Bank can be considered good for any normal business
dealings at usual trade terms and conditions |
LOCATIONS
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Registered Office : |
763, Anna Salai,
Chennai - 600 002, Tamil Nadu, |
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Tel. No.: |
91–44–28524337 / 28520507 / 28415702/ 91-120-4079911 |
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Mobile No.: |
91-9818051787 |
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Fax No.: |
91-44-28519438/ 91-120-4079999 |
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E-Mail : |
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Website : |
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Branches : |
The bank has exceptionally very large branches at:
˜ Fort and Nariman Point in Mumbai ˜
Janpath, Defence Colony and ˜
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DIRECTORS
|
Name : |
Mr. S. A. Bhat |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. T.S.
Narayanasamy |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
56 years |
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Experience : |
36
years |
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Qualification : |
B.Sc |
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Date of Appointment: |
09.06.2005 |
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Date of Expiry Current Term: |
31.05.2009 |
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Other Directorships: |
Joined Union Bank of Shareholding in IOB: NIL Other Directorships: NIL |
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Name : |
Mr. S. C. Gupta |
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Designation : |
Chairman and
Managing Director |
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Date of Birth/Age : |
05.05.1947 |
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Qualification : |
M.Com., CAIIB |
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Experience : |
37 years of experience
in banking at SBI, Syndicate Bank and Oriental Bank of Commerce in various
capacities. Joined IOB as
Executive Director on 28.12.1999 and became Chairman & Managing
Director w.e.f. 01.05.2001 |
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Name : |
Mr. Rohit M.
Desai |
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Designation : |
Executive Director |
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Date of Birth/Age : |
23.07.1944 |
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Qualification : |
B.Com., CAIIB |
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Experience : |
37 years of
experience in Banking at Bank of India in various capacities in |
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|
Name : |
Mr. Anand Sinha |
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Designation : |
Director (RBI Nominee) |
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Date of Birth/Age : |
03.02.1951 |
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Qualification : |
M.Sc. (Physics), CAIIB (Part I) |
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Experience : |
Possesses 28 years experience in RBI in various capacities Appointed
as RBI Nominee Director w.e.f.
31.07.2003 |
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Name : |
Mr. K. S. Menon |
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Designation : |
Director (Government of |
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Date of Birth/Age : |
16.11.1946 |
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Qualification : |
B. Com. |
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Experience : |
Possesses 28
years of experience in administration.
Appointed as a Government nominee Director on the Board w.e.f. 25.03.2004 |
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Name : |
Mr. K. Ananda
Kumar |
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Designation : |
Officer Director |
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Date of
Birth/Age : |
30.08.1955 |
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Qualification
: |
B.Com., A.C.A., CAIIB |
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|
Name : |
Mr. Sankaran
Srinivasan |
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Designation : |
Nominee Director |
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Date of
Birth/Age : |
12.03.1952 |
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Experience: |
30 Years |
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Qualification
: |
B.Sc. (Maths) |
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Date of Expiry Current Term: |
24.02.2006 and
thereafter until his successor is appointed or till he ceases to be a workman
employee of IOB |
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Other Directorships: |
Having
more than 30 years experience in IOB,
he is at present a special cadre assistant in IOB. Shareholding
in IOB: 200 Other
Directorships: NIL |
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Name : |
Mr. Prakash
Agarwal |
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Designation : |
Director (Nominated by Government) |
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Date of
Birth/Age : |
02.02.1963 |
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Qualification
: |
B. Com. (H), F.C.A. |
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|
Name : |
Mr. Nitin
Moreshwar Kiwalkar |
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Designation : |
Director (Nominated by Government) |
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Date of
Birth/Age : |
29.03.1959 |
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Qualification
: |
B.Com, M.B.A. |
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Experience : |
Experience in Small
Scale Industries, trading and farming. He is also holding Directorship in
Vidya Sahakari Bank Limited, Mumbai Appointed as Director by Government of India on the Board w.e.f.
12.06.2002 |
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Name : |
Mr. A
R Nagappan |
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Designation : |
Executive
Director (till 30.04.2006) |
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Date of Birth/Age : |
59 years |
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Experience : |
34 years |
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Qualification : |
M Sc |
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Date of Appointment: |
27.08.2004 |
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Date of Expiry Current Term: |
30.04.2006 |
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Other Directorships: |
Held very high positions in Indian Bank and was instrumental in its
turnaround. He was appointed as Executive Director of our bank with effect
from 27.08.2004. Shareholding in IOB: NIL Other Directorships: NIL |
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Name : |
Mr.
A.V. Dugade |
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Designation : |
Executive
Director (from 01.05.2006) |
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Name : |
Mr.
Madhusudan Prasad |
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Designation : |
Government
Nominee Director |
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Date of Birth/Age : |
49 years |
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Experience : |
24 Years |
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Qualification : |
M A, I A S |
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Date of Appointment: |
24.01.2005 |
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Date of Expiry Current Term: |
07.12.2008 |
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Other Directorships: |
He is the Joint Secretary,
Ministry of Finance, Government of India. Shareholding in IOB: NIL Other Directorships: NIL |
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|
Name : |
Mr. C
S Murthy |
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Designation : |
RBI
Nominee Director |
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Date of Birth/Age : |
57 years |
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Experience : |
26 years |
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Qualification : |
B Com., CAIIB,
DCAI |
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Date of Appointment: |
07.04.2005 |
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Date of Expiry Current Term: |
Until further
orders from Govt., |
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Other Directorships: |
Joined RBI in 1969 and has worked in most of the operational and oupervisory
ucparunenis OT noi ana at present is the Chief General Manager (In
Charge) RPCD, Reserve Bank of India, Mumbai. Shareholding
in IOB: NIL Other
Directorships: NIL |
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|
Name : |
Mr. J
D Sharma |
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Designation : |
Employees (Officer) Nominee
Director |
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Date of Birth/Age : |
49 years |
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Experience : |
29 years |
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Qualification : |
M Com., MBA,
DIM, CAIIB, LLb. |
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Date of Appointment: |
09.03.2006 |
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Date of Expiry Current Term: |
08.03.2009 and thereafter until his successor is appointed or
till he ceases to be a employee of I08 |
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|
Name : |
Mr.
Sooraj Khatrl |
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Designation : |
Nominated by the Government of
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Date of Birth/Age : |
50
years |
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Experience : |
25
years |
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Qualification : |
B.Sc.,
LL.B, Dip in Labour Law |
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Date of Appointment: |
09.12.2005 |
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Date of Expiry Current Term: |
08.12.2008 |
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Other Directorships: |
An Advocate in Rajasthan High-Court, He is also a
journalist and Editor and Publisher. Shareholding
in IOB: NIL Other
Dkectorships: NIL |
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Name : |
Mr. M
N Kandaawamy |
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Designation : |
Nominated by the Government of
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Date of Birth/Age : |
55
years |
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Experience : |
30
years |
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Qualification : |
MA
(Pol&Pub Admn) |
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Date of Appointment: |
07.02.2006 |
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Date of Expiry Current Term: |
06.02.2009 |
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Other Directorships: |
Basically an agriculturist. He was the founder
President of Coimbatore District Grapes Cultivators association and also an
Ex Chairman of Land Development Bank of Thondamuthur. He has over three
decades of experience. Shareholding
in IOB: 400 Other
Directorships: NIL |
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|
Name : |
Mr. Ashok
Kumar Bhargava |
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Designation : |
Shareholder
Director |
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Date of Birth/Age : |
62 Years |
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Experience : |
38 Years |
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Qualification : |
B.Com, L L B.,
CAIIB |
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Date of Appointment: |
08.12.2005 |
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Date of Expiry Current Term: |
07.12.2008 |
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Other Directorships: |
A professional banker with 38 years of
experience. He is at present a Management and Financial Consultant. Other
Directorships: Director: SMC Power Generation Limited Director: Shareholding
in IOB: 500 |
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Name : |
Mr.
Chiranjlb Sen |
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Designation : |
Shareholder
Director |
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Date of Birth/Age : |
59 years |
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Experience : |
27 Years |
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Qualification : |
M.A (Econ), Ph
D |
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Date of Appointment: |
08.12.2005 |
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Date of Expiry Current Term: |
07.12.2008 |
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Other Directorships: |
Professor of Economics in the Indian
Institute of Management, Shareholding
in IOB: 150 Other
Directorships: NIL |
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|
Name : |
Mr. M. N.
Venkatesan |
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Designation : |
Shareholder Director |
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Date of
Birth/Age : |
03.10.1955 |
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Qualification
: |
B.Com / FCA |
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Experience : |
19 years experience
as a partner and 6 years experience as a Audit Manager in a reputed firm of
Chartered Accountants. M. R. Narain & Co, Chennai. He is Statutory /
Central Auditor for PSUs / Nationalised Banks / Reputed Companies. |
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Date of Appointment: |
08.12.2005 |
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Date of Expiry Current Term: |
07.12.2008 |
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Other Directorships: |
A Practicing Chartered Accountant for the
past three decades, he has been conducting audit of Public sector banks for
the last 15 years. Shareholding
in IOB: 1200 Other
Directorships: NIL |
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|
Name : |
Mr. Dr.
Christopher Thomas Kurien |
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Designation : |
Shareholder Director |
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Date of Birth/Age : |
02.07.1931 |
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Qualification : |
M.A., Ph.D. (Economics) |
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|
Name : |
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Designation : |
Shareholder Director |
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Address : |
31.03.1959 |
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Date of Birth/Age : |
MBBS, M.D. |
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|
Name : |
Mr. S. K. Sehgal |
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Designation : |
Shareholder Director |
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Date of
Birth/Age : |
08.08.1939 |
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Qualification
: |
B.Sc., |
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Date of Appointment: |
08.12.2005 |
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Date of Expiry Current Term: |
07.12.2008 |
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Other Directorships: |
As an
industrialist, he has over three decades of experience. Shareholding
in IOB: 2400 Other
Directorships: NIL |
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|
Name : |
Mr.
G. Narayanan |
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Designation : |
Executive
Director (from 07.11.2007) |
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|
Name : |
Dr.
Shahank Saksena |
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Designation : |
GOI
Nominee Director |
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|
Name : |
Mrs.
Chitra C. |
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Designation : |
RBI
Nominee Director |
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|
Name : |
Mr.
Natesan Sridaran |
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Designation : |
Workmen
Employee Director |
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|
Name : |
Mr.
Mr. Ravindra Vikram |
|
Designation : |
Nominee
by the GOI |
KEY EXECUTIVES
|
Name : |
Mr. Sunder Rajan |
|
Designation : |
Deputy General Manager and Board Secretary |
MAJOR SHAREHOLDERS
(As on
30.06.2008)
|
Names of
Shareholders |
No. of Shares |
Percentage of Holding |
|
PROMOTER’S HOLDINGS |
|
|
|
Central Government/ State Governments |
333600000 |
61.23 |
|
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|
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|
NON PROMOTER’S HOLDINGS |
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|
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Institutional Investors : |
16471270 |
3.02 |
|
Mutual Funds and Axis |
451749 |
0.08 |
|
Insurance Companies |
18092329 |
3.32 |
|
Foreign Institutional Investors |
99728478 |
18.31 |
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Non – Institutions |
|
|
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Bodies Corporate |
5870064 |
1.08 |
|
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Individuals |
|
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|
Individuals shareholders holding nominal share
capital upto Rs. 0.100 million |
61905316 |
11.36 |
|
Individual shareholders holding nominal
share capital in excess of Rs. 0.100 million |
3842405 |
0.71 |
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|
OTHER INVESTORS |
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|
|
Clearing
Members |
548066 |
0.10 |
|
Hindu Undivided
Families |
332676 |
0.06 |
|
Non Resident
Indians |
3591496 |
0.66 |
|
Overseas
Corporate Bodies |
48000 |
0.01 |
|
Trusts |
318151 |
0.06 |
|
|
|
|
|
TOTAL |
544800000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Banking Business |
GENERAL
INFORMATION
|
Bankers : |
Reserve Bank of |
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Banking Relations : |
Satisfactory |
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Auditors : |
S K Singhania and Company Chartered Accountants
SRRK Sharma Associates Chartered Accountants
R S Sipayya and Company Chartered Accountants
Maharaj N R Suresh and Company Chartered Accountants
Vaithisvaran and Company Chartered Accountants
Om Agarwal and Company Chartered Accountants |
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Associates: |
˜
Bharat Overseas Bank Limited ˜ Dhenkanal Gramya Bank ˜ Puri Gramya Bank ˜ Pandyan Gramya Bank ˜ IOB Properties Pte Limited ˜ Neelanchal Gramya Bank (Vested with |
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Jointly Controlled Entity : |
Universal Sompo General Insurance Company Limited |
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Parent Company: |
Indian Overseas Bank |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000000 |
Equity shares |
Rs.10/- each |
Rs.15000.000 Millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
544800000 |
Equity shares (Includes 333600000 Shares of Rs.10/- each
held by Government of India) |
Rs.10/- each |
Rs.5448.000 Millions |
|
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|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
LIABILITIES |
|
|
|
|
Share Capital |
5448.000 |
5448.000 |
5448.000 |
|
Reserves & Surplus |
43118.702 |
34455.651 |
26326.401 |
|
Deposits |
843255.829 |
687404.149 |
505293.150 |
|
Borrowings |
63536.463 |
28962.275 |
7366.274 |
|
Other Liabilities & Provisions |
63238.398 |
66298.209 |
49144.292 |
|
|
|
|
|
GRAND
TOTAL
|
1018597.392 |
822568.284 |
593578.117 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash & Balance with Reserve Bank of |
91242.328 |
46861.079 |
30779.584 |
|
Balances with Banks and Money at Call & Short Notice |
12170.884 |
42931.947 |
6292.828 |
|
Investment |
284747.084 |
239744.736 |
189522.843 |
|
Advances |
604238.440 |
470602.860 |
347562.019 |
|
Fixed Assets |
5585.775 |
5106.572 |
4577.383 |
|
Other Current Assets |
20612.881 |
17321.090 |
14843.460 |
|
|
|
|
|
GRAND
TOTAL
|
1018597.392 |
822568.284 |
593278.117 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Interest Earned |
79682.517 |
58320.735 |
44062.772 |
|
Other Income |
8076.162 |
3870.482 |
7282.111 |
|
TOTAL |
87758.679 |
62191.217 |
51344.883 |
|
|
|
|
|
|
Interest expended |
52887.923 |
32712.737 |
23390.981 |
|
Operating Expenses |
14852.945 |
13878.105 |
12615.713 |
|
Provisions & Contingencies |
7994.454 |
5516.027 |
7504.747 |
|
TOTAL |
75735.322 |
52106.869 |
43511.441 |
|
|
|
|
|
|
Net Profit for the year |
12023.357 |
10084.348 |
7833.442 |
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 (1st Quarter) |
30.09.2008 (2nd Quarter) |
|
Sales Turnover |
|
22170.800 |
24270.300 |
|
Other Income |
|
(302.500) |
3834.500 |
|
Total Income |
|
21868.300 |
27104.800 |
|
Total Expenditure |
|
3942.000 |
6460.700 |
|
Operating Profit |
|
17926.300 |
20644.100 |
|
Interest |
|
14909.100 |
16420.400 |
|
Gross Profit |
|
3017.200 |
4223.700 |
|
Depreciation |
|
0.000 |
0.000 |
|
Tax |
|
457.500 |
633.500 |
|
Reported PAT |
|
2559.700 |
3590.200 |
KEY
RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Credit Deposit Ratio |
70.22 |
68.60 |
63.27 |
|
Investment Deposit Ratio |
34.27 |
35.99 |
40.06 |
|
Cash Deposit Ratio |
9.02 |
6.51 |
7.65 |
|
Interest Expended/Interest Earned |
66.37 |
56.09 |
53.09 |
|
Other Income/Total Income |
11.89 |
13.28 |
14.18 |
|
Operating Expense/Total Income |
19.39 |
27.71 |
28.21 |
|
Interest Income/Total Funds |
8.67 |
8.25 |
8.02 |
|
Interest Expended /Total Funds |
5.75 |
4.63 |
4.26 |
|
Net Interest Income/Total Funds |
2.91 |
3.62 |
3.76 |
|
Non Interest Income/Total Funds |
1.17 |
1.26 |
1.33 |
|
Operating Expense/Total Income |
1.91 |
2.64 |
2.64 |
|
Profit Before Provisions/Total Funds |
2.18 |
2.25 |
2.45 |
|
Net Profit/Total Funds |
1.31 |
1.43 |
1.43 |
|
Return On Net Worth(%) |
27.97 |
29.11 |
28.55 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject was founded in February 10th of the year 1937 by Mr.
M. Ct. M. Chidambaram Chettyar, a pioneer in many fields Banking, Insurance and
Industry with the twin objectives of specialising in foreign exchange business
and overseas banking. subject had the unique distinction of commencing business
in 10th February 1937 (on the inaugural day itself) in three branches
simultaneously - at Karaikudi and Chennai in India and Rangoon in Burma
(presently Myanmar) followed by a branch in Penang. Subject has an ISO
certified in-house Information Technology department, which has developed the
software that 900 branches use to provide online banking to customers. At the
dawn of
In Pre-nationalisation era (1947- 69), subject expanded its domestic activities
and enlarged its international banking operations. As early as in 1957, the
Bank established a training centre, which has now grown into a
At the time of Nationalisation (1969), Company was one of the 14 major banks
that was nationalised in 1969. On the eve of Nationalisation in 1969, IOB had
195 branches in
In Post - nationalisation era (1969-1992), during the year 1973, IOB had to
wind up its five Malaysian branches as the Banking law in
In Post-Reform Period - Unprecedented developments (1992 & after), subject
formulated its Web site during the month of February in 1997. The Bank got
autonomous status during the year 1997-98. IOB had the distinction of being the
first Bank in Banking Industry to obtain ISO 9001 Certification for its
Computer Policy and Planning Department from Det Norske Veritas (DNV),
Subject started its STAR services in December of the year 1999 for speedy
realisation of outstation cheques. Now the Banks has 14 STARS centres and one
Controlling Centre for providing this service and in the same year started
tapping the potential of Internet by enabling ABB cardholders in Delhi to pay
their telephone bills by just logging on to MTNL web site and by authorising
the Bank to debit towards the telephone bills. The Bank made a successful debut
in raising capital from the public during the financial year 2000-01, despite a
subdued capital market. Subject bagged the NABARD's award for credit linking
the highest number of Self Help Groups for 2000-2001 among the Banks in
Tamilnadu.
Mobile banking under SMS technology was implemented in Ahmedabad and
The year 2005, the bank joined hands with Visa to offer debit cards to its
esteemed customers. In the year 2006, IOB inked MoU with CRI Pumps. In
September 2006, subject has finally taken control of Bharat Overseas Bank
(BhOB), an unlisted private bank. This is the first instance of a public sector
bank taking over a strong private sector bank without resorting to the
moratorium route. During May of the year 2007, Indian rating agency ICRA
assigned an 'A1+' rating to the proposed 20 bln rupee certificates of deposit
programme of subject, citing the bank's consistent and measured growth, the
improvement in its asset quality through effective monitoring and collection
systems, and improving core profitability. June of the year 2008, subject launched
two new products namely subject Gold' and subject Silver' in savings account
and subject Classic' and subject Super' under current account.
Subject have a network of more than one thousand eight
hundred branches all over
PERFORMANCE:
The Bank was ranked, on the basis of its overall performance in 2006-07, First
among Public Sector Banks and third among 35 large banks in
The Bank's performance was gratifying with the volume of business recording
high growth. The Bank has performed better than the System in the growth of total
business during 2007-08. While the System recorded a growth of 22% in total
domestic business, the Bank achieved a growth 24% for the year ended March
2008. Profitability indicators also showed good improvement and there was all
round progress in the year. Thus good performance witnessed in the previous
year has been carried forward in the reporting year as well.
GLOBAL BUSINESS PERFORMANCE
Global business increased significantly from Rs.1166630.000 Millions in March
2007 to Rs.1453840.000 Millions in March 2008, with a growth of 24.62%.
Deposits at the global level improved by 22.67% from Rs. 687400.000 Millions to
Rs.843260.000 Millions in the same period while advances went up by 27.41% from
Rs.479230.000 Millions to Rs. 610580.000 Millions. Global CD ratio improved
from 69.72% to 72.41%.
OVERSEAS BRANCHES
The Bank opened a Representative Office at
As at the end of March 2008, the Bank had 12 establishments abroad comprising
of 6 full-fledged branches, 3 Representative Offices, 2 Remittance Centres and
1 Extension counter. The branches include two in Hong Kong and one each in
FINANCIAL PERFORMANCE
The Bank posted an impressive global operating profit of Rs.20020.000 Millions
crossing Rs.20000.000 Millions mark which is a major milestone in the history
of the Bank. The growth in operating profit recorded during the year was 28.33%
and it marks a leap from Rs.15600.000 Millions of the previous year. Growth in
profit can be attributed to expansion in volume of business and improvement in
efficiency levels.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC ENVIRONMENT
The year 2007-08, Indian
economy recorded a growth of 8.7%. Marginal deceleration in economic activity
could be attributed to global factors such as economic slowdown in the
BANKING ENVIRONMENT
At the beginning of the year, RBI increased CRR by 50 basis points in two
stages - the first hike of 25 basis points from April 14, 2007 and the second
stage 25 basis points from April 28, 2007 - to reach 6.5%. It aimed at
controlling liquidity with banks and this policy stance continued through the
year. Fixed repo rate under the LAF was also hiked by 25 basis points to 7.75%
from 7.50% from March 31, 2007. CRR was again increased from the fortnight
beginning August 4, 2007 to 7 per cent. It was further hiked by 50 basis points
to 7.5% of banks' demand and time liabilities from the fortnight beginning
November 10, 2007. From the fortnight beginning March 31, 2007, the RBI
discontinued interest payment on CRR balances. The RBI measures had the desired
impact of moderating credit growth and contributing towards demand compression.
Interest rates
remained high during 2007-08 because of the need to combat inflation. The
global Sub-Prime crisis has created liquidity problem at the global level and
it will have its impact on the Indian financial system. Borrowings by banks in
the global markets may become expensive in view of the liquidity crisis.
HUMAN
RESOURCES DEVELOPMENT
STAFF STRENGTH
The Bank's staff strength in
Of the total staff strength, 6,776 members belonged to SC/ST categories. There
were 715 ex-servicemen staff in the Bank. Women employees in the Bank were 4,362.
The number of physically challenged members on the rolls of the Bank was
469.
PERFORMANCE LINKED CASH INCENTIVE SCHEME
AS a part of motivational measure, the Bank introduced Performance linked Cash incentive
Scheme for the year 2006-07 to Officers/Award Staff attached to Branches.
Regional Offices and FGM offices. Nearly 2,400 Staff Members received
Performance Incentive to the tune of Rs 68.700 Millions.
RECRUITMENT
The year 2007-08, the Bank recruited 99 Specialist Officers (88 Agricultural
officers, 5 Official language officers, 5 Security officers and one MBA with
Finance as Specialisation), apart from 147 Probationary officers. In a Clerical
recruitment initiative for Tamil Nadu,
Business Development and Growth and also Retirement in immediate future, it is
planned to recruit 430 Specialist officers (Marketing, officers, Chartered
Financial Analysts, Agriculture officers, Law officers, Chartered Accountants
etc.,) and 500 Probationary officers (400 officers in JMG Scale I and 100 in
MMG Scale II).
PROSPECTS
Growth of investments has been significant in the economy and this formed
the basis for impressive economic growth in
CONTINGENT
LIABILITIES:
|
|
31.03.2008 (Rs. In Millions) |
|
|
|
|
Claims against the Bank not acknowledged as debts |
205.398 |
|
Liability for partly paid investments |
504.511 |
|
Liability on account of outstanding forward exchange
contracts |
111386.160 |
|
Guarantees given on behalf of constituents A] In B] Outside |
54054.652 922.879 |
|
Acceptances, Endorsements and Other Obligations |
70880.112 |
|
Other item for which the bank is contingently liable Disputed IT demand/ Cases under appeal |
7099.592 |
|
Estimated amount of contracts remaining to be executed on
capital accountant |
539.997 |
|
Banks liability under currency swaps |
13903.565 |
|
Interests rate swaps undertaken (USD) |
20299.965 |
|
Interests rate swaps (INR) |
15558.263 |
|
Bank’s Liability under Currency Options |
7979.011 |
|
Customers Liability under Credit Default |
4326.472 |
|
Inter bank Participation Certificate |
5000.000 |
|
Miscellaneous |
0 |
|
Investment – CLN/ CDS/ CDO |
1002.347 |
|
|
|
|
Total |
313662.924 |
AS PER
WEBSITE:
HOW IT BEGAN
Subject was founded on February 10th 1937, by Shri. M.Ct.M.
Chidambaram Chettyar, a pioneer in many fields - Banking, Insurance and
Industry with the twin objectives of specialising in foreign exchange business
and overseas banking.
Subject had the unique distinction of commencing business on 10th February 1937
(on the inaugural day itself) in three branches simultaneously - at Karaikudi
and Chennai in India and Rangoon in Burma (presently Myanmar) followed by a
branch in Penang.
At the dawn of
PRE-NATIONALISATION ERA (1947- 69)
Subject expanded its domestic activities and enlarged its international banking
operations. As early as in 1957, the Bank established a training centre which
has now grown into a
Subject was the first Bank to venture into consumer credit. It introduced the
popular Personal Loan scheme during this period.
In 1964, the Bank made a beginning in computerisation in the areas of
inter-branch reconciliation and provident fund accounts.
In 1968, Subject established a full-fledged department to cater exclusively to
the needs of the Agriculture sector.
AT THE TIME OF NATIONALISATION (1969)
Subject was one of the 14 major banks that was nationalised in 1969.
On the eve of Nationalisation in 1969, subject had 195 branches in
POST - NATIONALISATION ERA (1969-1992)
In 1973, Subject had to wind up its five Malaysian branches as the Banking law
in
In the same year Bharat Overseas Bank Limited was created in
In 1977, Subject opened its branch in
The Bank has sponsored 3 Regional Rural Banks viz. Puri Gramya Bank, Pandyan
Grama Bank, Dhenkanal Gramya Bank
The Bank setup a separate Computer Policy and Planning Department (CPPD) to
implement the programme of computerisation, to develop software packages on its
own and to impart training to staff members in this field.
POST REFORM PERIOD - UNPRECEDENTED DEVELOPMENTS (1992 &
AFTER)
Subject entered Web site during the month of February 1997.
Subject got autonomous status during 1997-98
Subject had the distinction of being the first Bank in Banking Industry to
obtain ISO 9001 Certification for its Computer Policy and Planning Department
from Det Norske Veritas (DNV),
Subject started STAR services in December 1999 for speedy realisation of
outstation cheques. Now the Banks has 14 STARS centres and one Controlling
Centre for providing this service.
During 1999, Subject started tapping the potential of internet by enabling ABB
card holders in Delhi to pay their telephone bills by just logging on to MTNL
web site and by authorising the Bank to debit towards the telephone bills.
A Voluntary Retirement Scheme was introduced in the Bank on the lines of IBA
package with Boards approval. The scheme was offered to Officers/Employees from
December 15, 2000.
The Bank made a successful debut in raising capital from the public during the
financial year 2000-01, despite a subdued capital market. The issue opened on
September 25, 2000 for raising Rs.1112.000 Millions and was oversubscribed by
1.87 times. The issue closed on September 29, 2000 - on the earliest closing
day. The allotment was made in October 2000. Consequent to the public issue,
the share of the Government in the Bank's capital came down to 75%. The shares
of the Bank have been listed on the Madras Stock Exchange (Regional), Stock
Exchange at Mumbai and the National Stock Exchange of India Limited.
Subject bagged the NABARD's award for credit linking the highest number of Self
Help Groups for 2000-2001 among the Banks in Tamil Nadu.
IDRBT (Institute for Development and Research in Banking Technology) conferred
the Best Award under Banking Technology to Subject. The award was given for the
innovative use of banking applications on INFINET (Indian Financial Network)
for the year 2001. Mobile banking under SMS technology implemented in Ahmedabad
and
The Bank has finalised an e-commerce strategy and has developed the necessary
internet banking modules in-house. For the first time a Total Branch Automation
package developed in-house has been customised in one of the Overseas Branches
of the Bank.
Most software developed in-house.
IOBNET connects Central Office with all Regional Office.
The Bank has paid a maiden dividend of 10% p.a for 2000-01, followed by 12%
during 2001-02.
PERFORMANCE HIGHLIGHTS - 30.06.2008
DEPOSITS:
Total deposits grew from Rs.702050.000 Millions as on 30th June 2007 to Rs,850010.000 Millions as on 30th June 2008 registering an increase of Rs.147960.000 Millions and growth percentage of 21.08%.
ADVANCES:
Gross Advances increased from Rs.486100.000 Millions as on 30th June 2007 to Rs.634190.000 Millions as on 30th June 2008, recording an increase of Rs 148090.000 Millions and growth percentage of 30.46%.
OPERATING PROFIT:
The operating profit for Q1 of 2008-09 is at Rs.2411.800 Millions as against the operating profit of Rs.4091.700 Millions for Q1 of 2007-08.
This decrease in the first
quarter of this year is mainly due to loss booked on account of
inter segment category transfer of securities and loss on sale of
securities and provision for wage arrears.
NET PROFIT:
Net profit for Q1 of
2008-09 is at Rs.2559.700 Millions and this figure is lower by Rs.125.200
Millions when compared to the net profit of Rs.2684.900 Millions booked during
Q1 of 2007-08.
TOTAL INCOME:
Total income for Q1 of 2008-09 is at Rs. 21868.300 Millions while the same was at Rs.19077.900 Millions for Q1 of 2007-08. The increase in terms of percentage works out to 14.63%. Interest Income has gone up to Rs.22170.800 Millions from 18462.100 Millions recording a percentage increase of 20.09%. Other income has gone down due to loss on sale and category transfer loss on investments.
TOTAL EXPENSES:
Total expense for Q1 of 2008-09 is at Rs.19456.400 Millions and the same for the corresponding quarter last year was at Rs.14986.200 Millions, recording a percentage increase of 29.83%. The interest expenses has gone up from Rs.11372.000 Millions to Rs.14909.100 Millions with percentage increase of 31.10%.
NET
INTEREST INCOME:
Net interest income for Q1 of 2008-09 is at Rs.726.17crore while the same was at Rs 7090.200 Millions for the corresponding quarter last year. The percentage increase is 2.42.
CRAR:
CRAR under
Bank is well above the required CRAR ratio.
BUSINESS PER EMPLOYEE:
Increased from Rs.48.100 Millions as on 30.6.07 to Rs.59.300 Millions as on 30.6.08.
NET
INTEREST MARGIN:
NIM was at 3.71% for the quarter ended 30th June 2007 and the ratio is at 3.12% for the quarter ended 30th June 2008.
The slide is attributable
to pressure on margin i.e. increase in interest on deposits with out
corresponding increase in interest income from advances/investment. NII
growth is minimal.
The ratio has come down from 1.27% to 0.99% over one year period.
CREDIT DEPOSIT RATIO:
Improved to 74.61% from 69.24% over one year period.
CASA:
The share of low cost deposits to total deposits has come down from 32.76% to 30.55% during one year period. This trend is sought to be arrested by vigorous compaign for low cost deposits and launching of new products like IOB Gold and Silver Savings Accounts and IOB Classic and Super Current Accounts.
NPA MANAGEMENT:
Gross NPA over one year period has come down from Rs.11370.000 Millions to Rs.10990.000 Subject Millions bringing down the Gross NPA percentage from 2.34% to 1.73%. However Net NPA percentage has gone up from 0.50% to 0.75% over one year period.
TOTAL CAPITAL FUNDS:
Total capital funds of the
bank increased to Rs.81700.000 Millions from Rs.73240.000
Millions over one year period due to
internal accretion.
BOOK VALUE PER SHARE:
Book value per share of the bank has gone up to Rs.91.40 from Rs.76.12 over one year period.
PRESS
RELEASE:
INDIAN OVERSEAS BANK
CENTRAL OFFICE
CHENNAI
PRESS RELEASE – 30TH OCTOBER 2008
PERFORMANCE HIGHLIGHTS – 30-09-2008
YEAR ON YEAR GROWTH – FROM 30.09.2007 TO 30.09.2008
1. TOTAL BUSINESS: Total business registered an increase of
23.83% to Rs.1605140.000 Millions (An increase of Rs.308850.000 Millions).
2. DEPOSITS: Total deposits grew by 15.97% to Rs.907870.000
Millions (An increase of Rs.125040.000 Millions).
3. ADVANCES: Total gross advances increased by 35.80% to
Rs.697270.000 Millions (an increase of 183810.000 Millions).
4. OPERATING PROFIT: Operating Profit of Q2 (2008-09)
improved by 31.30% to Rs.6014.000 Millions as against Rs.45800.300 Millions for
the corresponding quarter of 2007-08.
5. NET PROFIT: Net Profit of Q2 (2008-09) increased by
12.30% to Rs.3590.200 Millions as against Rs.3197.000 Millions for the corresponding
quarter of 2007-08.
6. TOTAL INCOME: Total Income of Q2 (2008-09) increased by
28.78% to Rs.27104.800 Millions as against Rs.21047.800 Millions for the
corresponding quarter of 2007-08.
Total Interest
income on advances grew by 38.53% year on year to Rs.18090.000 Millions.
7. TOTAL NON INTEREST INCOME: Total non interest income
recorded a y-o-y growth of 62.47% to Rs.2834.500 Millions from Rs.1744.600
Millions for the corresponding quarter of 2007-08. This includes profit on sale
of Bank’s land and building to the extent of Rs.670.000 Millions.
8. TOTAL EXPENDITURE: Total expenditure of Q2 (2008-09)
increased by 28.08% to Rs.21090.800 Millions as against Rs.16467.500 Millions
for the corresponding quarter of 2007-08.
Total
interest expenditure on deposits grew by 19.34% year on year to Rs.14190.000
Millions.
9. NET INTEREST INCOME: Net interest income increased to
Rs.7850.000 Millions for Q2 of 2008-09 from Rs.6320.000 Millions for Q2 of
2007-08, registering a percentage increase of 24.18%. Net Interest Margin has
also improved marginally from 3.11% to 3.19% during the one year period.
10. CAPITAL ADEQUACY RATIO (CRAR): Bank raised Tier II
capital aggregating to Rs.9553.000 Millions– Lower Tier II Bonds of Rs.3000.000
Millions and Upper Tier II bonds of Rs.6553.000 Millions during Q2 of 2008-09.
Capital Adequacy ratio of the Bank stands increased to
12.57% under
Tier I capital component under BASEL II is at 7.26%.
Total Capital funds of the Bank has improved from
Rs.76170.000 Millions as on 30.9.07 to Rs.95003.400 Millions as on 30.9.08.
11. BUSINESS PER EMPLOYEE: As on 30th September 2008,
business per employee improved to Rs.64.000 Millions as against Rs.52.400
Millions as at 30th September 2007.
12. PROFIT PER EMPLOYEE: For the quarter ended 30th
September 2008, Profit Per Employee stood at Rs.0.573 Millions as against Rs.
0.516 Millions for the quarter ended 30th September 2007.
13. RETURN ON AVERAGE ASSETS: Return on average assets has
improved from 0.99% as of 30.06.2008 to 1.29% as of 30.09.2008.
14. CREDIT DEPOSIT RATIO: As on 30th June 2008, the ratio
was at 74.61%. This ratio as of 30th September 2008 stands increased to 76.80%.
15. CASA RATIO: From the level of 30.55% obtained as on
30.6.2008, the ratio has come down to 29.35%. as of 30.9.2008. Steps are being
taken to improve the ratio by aggressive marketing of CASA products viz SB/CD
Accounts.
16. BOOK VALUE PER SHARE: Book value per share has gone up
from Rs.81.88 to Rs.97.99 during the one year period.
17. NPA Management: Gross NPA level has gone up to
Rs.17250.000 Millions as on 30th September 2008 (Gross NPA percentage 2.47%).
The net NPA has also gone up to Rs.9970.000 Millions as on
30.9.08 (Net NPA percentage 1.44%) despite increase of provision for NPA.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.03 |
|
|
1 |
Rs.74.42 |
|
Euro |
1 |
Rs.62.71 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|