MIRA INFORM REPORT

Report Date :

14.09.2011

IDENTIFICATION DETAILS

Name :	ABHYUDAYA CO-OPERATIVE BANK LIMITED
Registered Office :	Abhyudaya Nagar, Building No. 36, G.D. Ambekar Marg, Kalachowky, Mumbai - 400 033, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.01.1964
Capital Investment / Paid-up Capital :	Rs.720.022 millions
TAN No.: [Tax Deduction & Collection Account No.]	MUMA06836E
Legal Form :	Cooperative Bank
Line of Business :	Banking Activities
No. of Employees :	1285 Approximately

RATING & COMMENTS

MIRA’s Rating :

A (69)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	Large
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established co-operative bank having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The subject can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Abhyudaya Nagar, Building No. 36, G.D. Ambekar Marg, Kalachowky, Mumbai - 400 033, Maharashtra, India
Tel. No.:	91-22-65053708
Fax No.:	91-22-24701271
E-Mail :	share@abhyudayabank.net
Website :	http://www.abhyudayabank.co.in/
Administrative Office :	K.K. Tower, Abhyudaya Bank Lane, Off G. D. Ambekar Marg, Pare! Village, Mumbai - 400 012, Maharashtra, India
Tel. No.:	91-22-24140961-64 / 65053690
Fax No.:	91-22-24139782
E-Mail :	secretarial@abhyudayabank.net
Regional Office 1 :	Shambhavi Fortune, Behind KSRTC Bus Stand, Udupi – 576101, Karnataka, India
Tel. No.:	91-820-2520467
Fax No.:	91-820-2521607
E-Mail :	udupiro@abhyudayabank.net
Regional Office 2 :	Block B, "Jaymangal House", Opp. Gandhigram, Rly. Station Ellisbridge, Ahmedabad - 380 009, Gujarat, India
Tel. No.:	91-79-26581891 / 92
Fax No.:	91-79-26580609
E-Mail :	ahmedabadro@abhyudayabank.net
Zonal Office :	Located at · Mumbai · Pune
Branch Office :	· Located at · Mumbai · Navi Mumbai · Pune · Raigad · Sindhudurg · Nashik · Nagpur · Aurangabad · Nanded · Thane · Udupi · Mangalore · Vadodara · Ahmedabad

DIRECTORS

Name :	Mr. Sitaram C Ghandat
Designation :	Chairman
Name :	Mr. Nityanand M Prabhu
Designation :	Vice Chairman
Name :	Mr. Vijay S Morye
Designation :	Managing Director
Name :	Mr. Raghuram V Shetty
Designation :	Director
Name :	Mr. Maruti S Mehetre
Designation :	Director
Name :	Mr. Achyut L Kandpile
Designation :	Director
Name :	Mr. Ashok R Chalke
Designation :	Director
Name :	Mr. Mhatarba S Kane
Designation :	Director
Name :	Mr. Harihar S Jaiswar
Designation :	Director
Name :	Mrs. Jessie C D’Silva
Designation :	Director
Name :	Mrs. Ratnamala M Gorde
Designation :	Director
Name :	Mr. Sandeep S Ghandat
Designation :	Director
Name :	Mr. Jayantilal C Jain
Designation :	Director
Name :	Mr. Waman V Nalbhimwar
Designation :	Director
Name :	Mr. Jagajeevandas Raai
Designation :	Director
Name :	Mr. Vinod K Shah
Designation :	Director
Name :	Mr. Mohan S Ghandat
Designation :	Director
Name :	Mr. Amba P Patel
Designation :	Director
Name :	Mr. Shashikant N Shetty
Designation :	Director
Name :	Mr. Kishore T Kadam
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Rajeev D. Gangal
Designation :	Chief General Manger
General Managers :	· Mr. SadanandK. Nayak (Credit and Forex) · Mr. Dhanji G. Kurlawala (Accts. Insp. and Vigi, MIS) · Mr. Puneethkumar R. Shetty (Legal and Recovery) · Mr. Prashanth K. Mohapatra (Treasury and IT) · Mr. Sonudas A. Naik (Develp. HRD and Share)
Deputy General Managers :	· Mr. Prakash K. Naik (Navi Mumbai Zone) · Mr. Anil K. Nikam (Recovery Dept.) · Mr. Krishnakumar B. Sawant (Central Zone) · Mr. Girish S. Shintre (Western Zone) · Mr. Dattaram H. Dawal (Legal and Recovery Dept.) · Mr. Bhaskar M. Shetty (Pune and Reg. Off. Udupi) · Mr. Anthony P. Naronha (Central Law Dept.) · Mr. Pradeep V. Kamat (Legal and Recovery Dept.) · Mr. Girish V. Rane (Forex and Treasury Dept.) · Mr. Camilo F. Fernandes (HRM Dept.) · Mr. Premnath S. Salian (Credit Dept.) · Mr. Mangesh S. Rane (Legal and Recovery Dept.)
Asst. General Managers :	· Mr. Anil G. Khatu (Clearing Dept.) · Mr. Shahabuddin H. Pathan (Vigi. Insp. 8s IS Audit) · Mr. Lancelot R. Tauro (Forex Dept.) · Mr. Robert E. Lewis (Reg. Off. Udupi) · Ms. Jyoti S. Bolar (Secretarial Dept.) · Mr. Satyendra Y. Bhandarkar (Reg. Off. Ahmedabad) · Mr. Pradeep M. Mandke (Plann. 8s Mkt. Dept.) · Mr. Duraiswami Venkatesan (Account Dept.) · Mr. Sunil S. Shetty (I.T. Dept.) · Mr. R. A. Kamat (Forex Treasury)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Not Available

BUSINESS DETAILS

Line of Business :

Banking Activities

GENERAL INFORMATION

No. of Employees :	1285 Approximately
Bankers :	Reserve Bank of India

Banking Relations :	--
Auditors :
Name :	A P Sanzgiri and Company Chartered Accountant

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.10/- each	Rs.1250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
72002163	Equity Shares	Rs.10/- each	Rs.720.022 millions
	Individuals (Rs.552.624 Millions)
	Others (Rs.167.398 millions)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		720.022	561.610	457.746
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8130.792	7923.118	7643.139
4] Deposits		52606.192	41706.176	31748.103
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		61457.006	50190.904	39848.988
1] CBLO / REPO		3069.899	0.000	0.000
2] Refinance from NABARD		243.137	0.000	0.000
TOTAL BORROWING		3313.036	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		64770.042	50190.904	39848.988
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		700.251	634.893	479.570
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		21777.336	19423.006	14073.709
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	4358.108	3104.667	1719.965
	Other Current Assets	3255.749	2491.432	2504.074
	Term Deposits	2414.758	1875.322	4758.280
	Money at call and short notice and CBLO	500.000	249.897	0.000
	Loans & Advances	34526.622	25647.282	18563.868
Total Current Assets		45055.237	33368.600	27546.187
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2762.782	3235.595	2250.478
	Other Current Liabilities
	Provisions
Total Current Liabilities		2762.782	3235.595	2250.478
Net Current Assets		42292.455	30133.005	25295.709
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		64770.042	50190.904	39848.988

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Interest and Discount	5156.742	4011.693	3578.256
		Commission and Exchange	75.089	55.641	63.528
		Locker Rent	11.881	7.154	6.200
		Service Charge	137.727	121.139	59.889
		Sundry Income	103.311	69.001	77.298
		Profit on sale of investments	0.258	68.675	366.303
		Reversal of provision for Sick Leave	0.000	19.525	313.037
		BDDR written back	564.877	3.927	9.877
		TOTAL	6049.885	4356.755	4474.388
Less	EXPENSES
		Interest On Deposits and Borrowings	2872.372	2404.352	1795.828
		Salaries, Allow., Provident Fund, Gratuity etc.	806.131	947.940	530.643
		Directors Sitting Fees and Allow.	4.308	3.981	2.882
		Rent, Taxes, Insurance and Lighting	236.041	178.635	135.081
		Law Charges	7.209	5.365	3.219
		Postage. Telegram and Telephone	28.761	22.712	20.735
		Audit Fees	7.524	7.387	6.385
		Printing and Stationery	20.770	17.744	13.598
		Advertisement	23.251	17.609	27.788
		Amortisation of Software	9.980	7.213	10.657
		Repairs and Maintenance	46.279	40.553	36.839
		Travelling and Conveyance	7.371	5.517	5.383
		Subscription	1.448	1.136	1.115
		Sundry Expenses	67.831	55.230	37.443
		Provision for contingencies (Investment)	52.718	190.641	0.000
		Amortisation of Premium on Investment	19.897	12.488	20.328
		Amortisation of deferred loss on shift of Investment	0.000	3.149	134.788
		Cost of Acquisition (loss) of Merged banks written off	126.912	126.912	126.912
		Provision for Fraud and misappropriation	0.000	0.000	0.053
		Loss on sale of investments	70.579	0.000	0.000
		Provision towards Bad and Doubtful Debts Reserve	88.900	6.500	85.500
		Provision for Re-strucutred accounts	0.000	0.000	22.126
		Provision for expenses	0.000	0.000	0.081
		Bad debts written off	564.877	3.927	9.877
		TOTAL (B)	5063.159	4058.991	3027.261
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		986.726	297.764	1447.127
Less/ Add	DEPRECIATION/ AMORTISATION (F)		99.274	84.659	78.189
	PROFIT BEFORE TAX (E-F) (G)		887.452	213.105	1368.938
Less	TAX (H)		111.006	27.491	445.288
	PROFIT AFTER TAX (G-H) (I)		776.446	185.614	923.650
	Earnings Per Share (Rs.)		10.78	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	12.83	4.26	20.64
Net Profit Margin (PBT/Sales)	(%)	17.21	5.31	38.26
Return on Total Assets (PBT/Total Assets}	(%)	1.94	0.63	4.88
Return on Investment (ROI) (PBT/Networth)		0.01	0.00	0.03
Debt Equity Ratio (Total Liability/Networth)		0.10	0.06	0.06
Current Ratio (Current Asset/Current Liability)		16.31	10.31	12.24

LOCAL AGENCY FURTHER INFORMATION

OVERVIEW

Subject was registered in 1964 and is engaged in providing a wide range of banking and financial services.

OPERATIONAL RESULTS

The Deposits of the Bank have grown by Rs.10900.000 millions during the year registering a growth of 26.14% and the Advances have grown by Rs.8879.300 millions registering a growth of 34.62%. As a result of the good growth of Advances, the Bank has achieved a CD ratio of 65.63% as on 31.03.2011 as against the CD ratio of 61.50% as on 31.03.2010.

*(Net profit of Rs.779.600 millions comprised of the actual amount of Net profit for 2010-11 Rs.776.400 millions plus Rs.3.200 millions pertains to reversal of provision made towards Income Tax on completion of assessment for F.Y. 2006-07)

MEMBERSHIP

The number of shareholder members has increased from 129584 to 138703 during the year as 11387 new members were admitted; whereas membership of 2268 members was discontinued because of resignation, death etc. At the end of the year 2010-11, the nominal membership of the Bank stood at 78615.

BOARD OF DIRECTORS

The Board of Directors continued to guide and monitor functioning and general performance of the Bank. The matters attended by the Board included planning for all round business development of the Bank, laying down policies, sanctioning of loans, monitoring recoveries, etc. The Sub-Committees of the Board, viz. the Executive Committee, the Staff Sub-Committee, the Recovery Sub-Committee and the Audit Committee efficiently discharged the functions of monitoring and supervising the working of the Bank. During the year 137 meetings of the Board and Sub-Committees were held for conducting the business of the Bank.

Bank's Director Shri Sandeep Ghandat has been elected as Vice-chairman on the Board of Mumbai District Central Co-operative Bank Limited. The Board of Directors congratulate him on his achievement.

IMPORTANT ACHIEVEMENTS

a) Indian Bank's Association conferred the Bank with award in the "Technology Bank of the year" category for the year 2010. The award was given away by former president of India, H.E. Dr. A.P.J. Abdul Kalam.

b) The Banking Frontier for the year 2009-10 presented the bank with awards for (Excellence in Networking, HRD Policy and Annual Report presentation.

ONE TIME SETTLEMENT SCHEME FOR NON PERFORMING ADVANCES ACCOUNTS

Their Bank has adopted OTS Scheme for settlement of chronic NPA accounts with the cutoff date of NPA as 31.03.2007. The Scheme was operative upto 31.03.2011. During the year Bank has processed 1045 applications. The Bank has recovered Rs.142.758 millions during April 2010 to March 2011. The last date for accepting OTS application was 28.02.2011 and for disposal of the proposals was 31.03.2011. 584 accounts are closed during the year and amount recovered in the closed accounts is Rs.117.708 millions and the sacrifice amount in closed accounts is Rs.156.086 millions.

During the financial year 2010-11 the Bank initiated Recovery drive. All officers and staff at Branches / Departments were involved in the Action Plan. The NPA accounts were distributed areawise among all the staff and officers for visit and follow up which yielded good results. The accounts at branches were followed up through Call Centre functioning at Recovery department which helped to curtail the NPAs. The Recovery teams were formed at Zonal offices, headed by the Asst. General Manager for monitoring of loan accounts at branches.

The Commissioner for Co-operation and Registrar of Co-op, societies Maharashtra State Pune had not renewed the powers under section 156 of MCS Act delegated to Bank officers for execution of Awards / Recovery certificates claimed under section 91 and 101 of MCS Act, in view of legal impediment. The Bank had filed writ petition against the decision of Commissioner for Co-operation and Registrar of Co-op. Societies before Bombay High Court. The Bank was continuously following up the matter with Commissioner for Co-operation and other authorities. In view of the orders passed by Hon'ble High Court the Commissioner for Co-op, has delegated SRO powers to Bank officers for execution of Awards / Recovery Certificate obtained under MCS Act 1960 which has provided boost to Recovery Drive and helped us to reduce the NPAs.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

· All letters of credit / guarantees are sanctioned to customers with approved credit limits in place. Liability thereon is dependant on terms of contractual obligations, devolvement, rising of demand by concerned parties and the amount being called up. These amounts are collateralized by margins, counter-guarantees and secured charges.

· Contingent liabilities include disputed rent of Rs.3.749 millions in respect of old Ghatkopar branch premises, for which the Bank has received a legal advice that the claim is not tenable and the matter is being contested legally.

WEB DETAILS

Profile

Subject, one of the Urban Co-operative Banks in India, in its outlook and approach, has the objective of progress and prosperity of all. From a humble beginning in January 1964 as a Co-operative Credit society with a share capital of a merely Rs.5,000/- held by 83 members, today subject has become one of the large Urban Co-operative Banks with a "Scheduled Bank" status. The Bank has been converted into a ”Multi-State Scheduled Urban Co-op. Bank " w.e.f. 11th January, 2007. The area of operation which was restricted to the State of Maharashtra has now been extended to Karnataka and Gujarat State. Currently, the capital base of the bank stands at Rs.720.000 millions and Reserves at Rs.7351.100 millions as on 31.03.2011

The bank has 1,38,000 members and more than 14 lakh depositors. The Bank has seen a tremendous growth in deposits. The deposits of the bank are over Rs.52606.300 millions as on 31.03.2011, which were Rs.41706.200 millions as at the end of the financial year 2009-2010. The loans and advances stood at Rs.34526.600 millions as on 31.03.2011. The bank had posted a “Net Profit of Rs.779.600 millions as on 31.03.2011”. The growth rate of the bank compares well with that of others in the sector. The Bank has maintained a steady growth. The bank has been paying dividend @ 15% to its members. The Bank has launched different loan schemes tailor-made to suit the needs of various customers. The schemes aim at providing loans for purchase or construction of residential premises, repair/renovation of house property, purchase of car, seeking higher education and for purchase of household consumer durable. One of the loan schemes, viz. "Udyog Vikas Yojana" is specially designed for the benefit of small entrepreneurs and businessmen. The procedure for sanctioning of loans under the schemes has been simplified and relaxed with a view to benefit the customers and facilitating speedy sanction of loans. The Bank has total 105 branches including a Mobile Bank at Navi Mumbai. Bank is committed to spread network of branches throughout the State and provide much needed banking services to the population, which has been deprived of the banking facilities.

Innovative Banking is another area of operation that subject is currently focusing on for a sustainable long term growth. The Bank has always endeavored for providing excellent customer service with the help of the latest technology. The Bank has provided fully computerized services to its valued clients. Bank is offering 11 hours fully computerized services and 7 days working at 18 branches and 24 hours ATM service at 85 branches.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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.47.10
UK Pound	1	Rs.74.64
Euro	1	Rs.64.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		69

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	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
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.