MIRA INFORM REPORT

Report Date :

15.09.2011

IDENTIFICATION DETAILS

Name :	THE SHAMRAO VITHAL CO-OPERATIVE BANK LIMITED
Registered Office :	SVC Tower, Nehru Road, Vakola, Santacruz (East), Mumbai – 400055, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.12.1906
Capital Investment / Paid-up Capital :	Rs.824.215 Millions
Legal Form :	Co-operative Bank
Line of Business :	Banking Activity

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 and reputed co-operative bank having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be correct and as per commitments. The subject can be considered good for normal 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 :	SVC Tower, Nehru Road, Vakola, Santacruz (East), Mumbai – 400055, Maharashtra, India
Tel. No.:	91-22-66999999 (Baroda) 91-22-66999777 (Marketing) 91-22-66999888 (Telebanking )
Fax No.:	91-22-66999818
Website :	http://www.svcbanking.com
International Banking Division :	Maker Towers ‘E’, 1st Floor, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Tel. No.:	91-22-67444536/40
Fax no.:	91-22-67444531/76
International Banking Division	DGM’s Office, 1, Central Bank Road, Chamrajpet, Bangalore – 560018, India
Tel. No.:	91-80-26604456
Fax No.:	91-80-26674014
Branches :	Located At : · Dahisar · Dombivali (East) · Eksar Road · Gamdevi · Ghatkopar Ghatkopar (W) · Goregaon · Kalyan · Badlapur · Bandra · Bangur Nagar · Bhandup · Bhayandar · Borivali · Chembur · Charkop · Cuffe Parade · Dadar · Dahisar · Kandivali (East) · Khadakpada · Khar · Koparkhairane · Kurla (E) · Lalbaug · Malad · Malad (East) · Mandvi · Matunga · Mira Road · Mulund · Mulund (East) · Mahakali Caves · Road · Sai Baba Nagar · Sakinaka · Anpada · Santacruz · Shamrao Vithal · Marg · Sleater Road · Thane · Vakola · Vasai (West) · Vashi · Versova · Vile Parle · Pune · Nashik · Aurangabad · Karnataka · Bengaluru · Mangalore · New Delhi · Kolhapur · Gujarat · Andhra Pradesh

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Nalkur Shripad Rao
Designation :	Chairman
Name :	Mr. Suresh S. Hemmady
Designation :	Vice-Chairman
Name :	Mr. Prakash A. Bijoor
Designation :	Directors
Name :	Mr. Uday P. Gurkar
Designation :	Directors
Name :	Mr. Ratnakar N. Gokarn
Designation :	Directors
Name :	Mr. Satish N. Kudyadi
Designation :	Directors
Name :	Mr. Ravindra K. Kulkarni
Designation :	Directors
Name :	Mr. Dinesh G. Kumta
Designation :	Directors
Name :	Mr. Ashwin S. Nadkarni
Designation :	Directors
Name :	Mr. Dilip P. Shashital
Designation :	Directors
Name :	Mr. Vivek D. Yennemadi
Designation :	Directors
Name :	Mr. Deepak B. Mundkur
Designation :	Directors

KEY EXECUTIVES

Name :	Mr. Shrinivas D. Joshi
Designation :	Chief Executive Officer
Name :	Mr. Ravikiran Mankikar
Designation :	General Manager - Information Technology
Name :	Mr. Ajit Venugopalan
Designation :	Deputy General Manager – Credit
Name :	Mr. Ratnakar D.Nadkarni
Designation :	Deputy General Manager - HRM and Corporate Functions
Name :	Mr. Ajit N Kulkarni
Designation :	Deputy General Manager - Forex
Name :	Mr. Shivappa L. Naik
Designation :	Deputy General Manager
Name :	Mr. Dilip Pendse
Designation :	Asst. Gen Manager - Credit
Name :	Mr. Anand D. Taggarsi
Designation :	Asst. Gen Manager – Credit
Name :	Mr. G. Harindran Pillai
Designation :	Gen Manager – HR
Name :	Mr. Anil G. Bapat
Designation :	Asst. Gen Manager - Pune and Kolhapur
Name :	Mr. Sunil B. Puranik
Designation :	Asst. Gen Manager – Delhi
Name :	Mr. Vinay R. Rao
Designation :	Asst. Gen Manager - Planning Marketing and Development
Name :	Mr. Satish S. Rawool
Designation :	Asst. Gen Manager – Facilities
Name :	Mr. Shailesh M. Nadkarni
Designation :	Asst. Gen Manager – Operations
Name :	Mr. P. V. Rajadhyax
Designation :	Asst. Gen Manager - L and R
Name :	Mr. Subbalakshmi M. Shirali
Designation :	Asst. Gen Manager - Information Technology
Name :	Mr. Rajendra Rane
Designation :	Divisional Manager - Branch Banking
Name :	Mr. Vinod Kumar Soni
Designation :	Divisional Manager - Branch Banking
Name :	Mr. Sudhir G. Hampi
Designation :	Divisional Manager - Branch Banking
Name :	Mrs. Aruna L. Kamath
Designation :	Divisional Manager - Branch Banking
Name :	Mrs. Amita G. Mavinkurve
Designation :	Divisional Manager - RAC
Name :	Mrs. Suman Nazareth
Designation :	Divisional Manager - Operations
Name :	Mr. Ashok Rao
Designation :	Divisional Manager - Operations
Name :	Mr. Dinkar Hosangadi
Designation :	Divisional Manager – Bangaluru
Name :	Mrs. Gayatri Gangolli
Designation :	Divisional Manager - Bangaluru
Name :	Mrs. Neeta Naik
Designation :	Divisional Manager - International Banking Division
Name :	Mr. Anand Dhareshwar
Designation :	Divisional Manager - International Banking Division
Name :	Mr. Sanjay Patil
Designation :	Divisional Manager - Information Technology
Name :	Mr. Sachin Nadkarni
Designation :	Divisional Manager - Information Technology
Name :	Mr. Guru Kowshik
Designation :	Divisional Manager - Information Technology
Name :	Mr. Chidanand Puthran
Designation :	Divisional Manager - Credit
Name :	Mr. Vivek Mandlik
Designation :	Divisional Manager - Domestic Treasury
Name :	Mr. Raghupathy Parameshwar
Designation :	Divisional Manager - Mumbai Zone VI
Name :	Mr. Sandeep Nadkarni
Designation :	Divisional Manager - Bangaluru ZONE III
Name :	Mr. Mahesh Inamdar
Designation :	Divisional Manager - Kolhapur
Name :	Mrs. Smita Surkund
Designation :	Divisional Manager - Retail Banking (Liabilities)
Name :	Mrs. Geeta Mirji
Designation :	Divisional Manager - L and R
Name :	Mr. Ajay Sonarikar
Designation :	Divisional Manager - Retail Assets and Liabilities Pune and Kolhapur Zone
Name :	Mr. Ganesh Puthran
Designation :	Chief Dealer - Forex

BUSINESS DETAILS

Line of Business :

Banking Activity

GENERAL INFORMATION

Bankers :

Reserve Bank of India

Facilities :

Borrowings	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Borrowing from National Housing Bank	47.600	54.200
Long Term Deposits	967.600	388.100
Total	1015.100	442.300

Banking Relations :	---
Statutory Auditors :
Name :	Yardi Prabhu and Associates Chartered Accountant

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.25/- each	Rs. 1500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32968608	Equity Shares	Rs.25/- each	Rs.824.215 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

CAPITAL AND LIABILITIES	31.03.2011	31.03.2010	31.03.2009
CAPITAL	830.200	831.800	803.800
RESERVE FUND AND OTHER RESERVE #	6362.500	5645.600	5087.000
DEPOSITS AND OTHER ACCOUNTS	63108.100	52570.100	43448.400
BORROWINGS	1015.100	442.300	61.000
BILLS FOR COLLECTION	505.100	576.300	818.300
BEING FOR RECEIVABLE
(As per Contra)
BRANCH ADJUSTMENTS	2.000	4.200	1.600
OVERDUE INTEREST RESERVES - I	39.500	46.900	44.300
OVERDUR INTEREST RESERVES – II	307.800	503.900	673.700
INTEREST PAYABLE	2.900	3.000	3.000
OTHER LIABILITIES #	1915.800	1742.900	1131.500
PROFIT AND LOSS ACCOUNTS #	24.800	24.100	488.900
DEFERRED TAX LIABILITY	25.500	0.000	0.000
GRAND TOTAL	74139.300	62391.100	52561.500
CONTINGENT LIABILITIES	4440.900	2966.400	2832.400
PROPERTY AND ASSETS
CASH	4622.700	5696.300	5552.500
BALANCES WITH OTHER BANKS	3485.700	1697.300	1244.000
MONEY AT CALL AND SHORT NOTICE	0.000	0.000	0.000
INVESTMENTS	18658.900	15879.500	12752.400
ADVANCES	42022.300	33971.200	27708.200
INTEREST RECEIVABLE
ON INVESTMENTS AND STAFF HOUSING LOANS	605.900	452.300	295.000
ON ADVANCES-II	307.800	503.900	673.700
BILLS RECEIVABLE	505.100	576.300	818.300
BEING BILLS FOR COLLECTION
(As per Contra)
BRANCH ADJUSTMENT	0.000	0.000	0.000
PREMISES	2438.300	2383.400	2423.100
FURNITURE & FIXTURES	145.700	121.500	102.200
OTHER FIXED ASSETS	264.600	202.400	168.000
OTHER ASSETS	1067.500	903.900	708.900
DEFERRED TAX ASSET	0.000	3.100	23.900
ACQUISITION COSTS	14.800	0.000	91.300
GRAND TOTAL	74139.300	62391.100	52561.500

PROFIT & LOSS ACCOUNT

EXPENDITURE	31.03.2011	31.03.2010	31.03.2009
INTEREST ON DEPOSITS	3843.500	3624.700	3075.500
INTEREST ON BORROWINGS	56.300	10.400	12.400
SALARIES AND ALLOWANCES	539.600	454.100	349.100
DIRECTORS FEES, TRAVELLING AND CONVEYANCE	3.000	1.400	1.000
RENT, RATES, TAXES, SERVICE CHARGES, INSURANCE AND LIGHTING	210.400	174.000	148.900
LEGAL AND PROFESSIONAL CHARGES	29.000	25.600	23.100
POSTAGE, TELEGRAMS AND TELEPHONE CHARGES	8.900	7.700	7.900
TRAVELLING AND CONVEYANCE	7.800	6.400	8.000
AUDIT FEES	10.200	9.200	7.000
REPAIRS AND MAINTENANCE	65.700	56.900	57.300
DEPRECIATION ON FIXED ASSETS	107.300	83.900	133.800
DEPRECIATION ON SECURITIES	2.900	7.900	77.300
PREMIUM ON SECURITIES AMORTISED	8.600	13.000	59.100
LOSS ON SALE OF SECURITIES	8.100	0.400	38.900
PRINTING AND STATIONERY	16.400	14.600	12.800
ADVERTISEMENT	46.600	30.800	23.800
LOSS ON SALE OF ASSETS	2.300	1.600	1.700
NETWORKING EXPENSES	13.700	10.800	9.100
SUNDRY EXPENSES	98.000	74.700	58.000
BAD DEBTS WRITTEN OFF	312.700	251.400	247.900
ACQUISITION COST OF ACQUIRED BANKS AMORTISED	3.700	91.300	45.600
PROVISIONS AND CONTINGENCIES FOR
GRATUITY PAYABLE TO STAFF	51.600	5.500	4.400
BAD & DOUBTFUL DEBTS	345.000	125.000	71.100
CONTINGENT PROVISION AGAINST STANDARD ASSETS	23.800	31.900	0.000
STATEMENT FLUCTUATION RESERVE	2.700	7.300	33.700
DEVELOPMENT FUND	90.000	0.000	0.000
SPECIAL RESERVE U/S. 36 (1) (VIII) OF INCOME TAX ACT, 1961	0.000	66.400	45.900
LEAVE ENCASHMENT	20.000	12.900	36.500
PROFIT BEFORE TAX	1127.100	860.400	671.800
INCOME TAX	346.400	238.500	0.000
DEFERRED TAX	28.600	20.800	197.100
NET PROFIT FOR THE YEAR	752.100	601.100	474.700
TOTAL	7054.900	6060.200	5261.600
INCOME
INTEREST ON ADVANCES	4766.000	4074.500	3579.400
INCOME FROM INVESTMENTS	1521.400	1255.100	1086.800
COMMISSION, EXCHANGE & BROKERAGE	117.200	97.200	82.100
RENT ON SAFE DEPOSIT LOCKERS	13.700	10.000	8.900
PROFIT ON SALE OF SECURITIES	31.000	120.100	92.600
PROFIT ON SALES OF ASSETS	0.900	0.200	5.200
OTHER INCOME	243.200	218.900	145.200
BDDR WRITTEN BACK	312.700	251.400	247.900
PROFIT ON EXCHANGE TRANSACTIONS	24.300	15.000	10.900
RECOVERY FROM BAD DEBTS WRITTEN OFF	24.500	17.800	2.600
TOTAL	7054.900	6060.200	5261.600
APPROPRIATIONS SUBJECT TO AGM APPROVAL
STATUTORY RESERVE FUND	188.100	150.400
BUILDING FUND	205.200	167.000
PROPOSED DIVIDEND @ 12%	99.800	97.900
CONTINGENCY RESERVE	75.300	60.200
SPECIAL GENERAL RESERVE	0.000	50.000
CHARITIES - STAFF WELFARE	1.200	1.000
CHARITIES - MEMBERS WELFARE	2.400	1.500
CHARITY FUND – PUBLIC	2.000	2.000
EDUCATION FUND	7.500	6.000
EX-GRATIA TO STAFF	77.500	65.000
SPECIAL RESERVE U/S 36(1)(VIII) OF INCOME TAX ACT, 1961	92.500	0.000	NA
NET PROFIT CARRIED TO BALANCE SHEET	24.800	24.100
TOTAL	776.200	625.100
INCOME
PROFIT BROUGHT FORWARD	752.100	601.100
PROFIT FOR LAST YEAR	24.100	24.000
TOTAL	776.200	625.100

LOCAL AGENCY FURTHER INFORMATION

OVERVIEW

Subject (SVC Bank Limited ) was incorporated in 1906 and has completed its 105 years of providing wide range of Banking and Financial Services including commercial Banking and Treasury Operations.

MERGER OF OTHER CO-OP. BANK

The Bank has acquired a Co-operative Bank viz. Apna Co-op. Bank Limited Hyderabad and merged the same in accordance with orders and directions issued by the Reserve Bank of India (RBI) and Registrar of Co-operative Societies (RCS). Financial and other details of the same are as under:

BANK’S PERFORMANCE

The Bank has delivered an excellent performance through a combination of careful planning and good execution. It is your steadfast patronage that has enabled Team SVC to achieve this success.

ECONOMIC OUTLOOK

The Indian economy has come through with resilience and strength in the year 2010-11. Swift and broad based growth has put the economy on to its pre-crisis growth trajectory. Dynamism in the rural economy due to scaled up flow of resources to rural areas has added to overall economic growth. Due to a better than average monsoon, agricultural sector performed reasonably well compared to previous year. Services sector also clocked robust performance.

Fiscal consolidation witnessed in 2010-11 has been impressive. As per the fiscal budget document, Indian economy is expected to grow at 9% with a band of +/- 0.25% in 2011-12. Average Industrial growth is expected at 9.2% in 2011-12 as against estimated 8.10% growth in 2010-11. Indian Met Department has forecast a normal monsoon raising hopes of another good harvest after what is estimated to have become a record year in terms of food grain production in 2010-11. India’s Fiscal deficit for the year 2011-12 is budgeted at 4.6% as against revised estimate of 5.1% in 2010-11.

Key risk to economic growth forecasts come from inflation. WPI inflation accelerated from 11.04% in March 2010 to a high of 11.23% in April 2010 and continued around similar levels till June 2010. Inflation continued around 8% to 9% thereafter till date. Despite the Reserve Bank of India’s (RBI) monthly assessment of WPI inflation coming down below 7.5% by March 2011, it read at 8.98% leading to a perception that RBI will continue rate hikes during the current fiscal as well.

BANKING SECTOR

The rapid turnaround, after the global financial crisis induced slowdown, evidences the resilience of the Indian economy as well as Indian banking system. The monetary and fiscal stimulus measures initiated in the wake of the global financial crisis, which included appropriate steps taken by the Government as well as RBI, in mitigating the adverse impact from contagion and ensuring that the financial sector in general and banking sector in particular tide over the global financial crisis. Over the last several years, RBI has undertaken wide ranging financial sector reforms which ensured stability of the Indian banking system in times of global crisis which underlines the significance of the regulatory regime in India.

The banking industry recorded deposit growth of 17%. The subdued growth in deposits of the banking industry reflected the higher growth in currency demand during the year. The disparity between the growth rate of credit and aggregate deposits of banking industry widened during the year. With economic growth consolidating around the pre-crisis levels, credit growth continued at an accelerated pace. Banking industry recorded 21.20% credit growth during the year.

Credit flow to the Industry has been robust. Credit flow from non-bank sources registered a decline compared to the previous year on account of a decline in both domestic and foreign non-bank sources. The funding from foreign sources declined on account of a lower amount of net FDI inflow into India as well as lower subscriptions to ADRs/ GDRs. On account of rise in bank credit and correspondingly lower deposit growth, banks investments in Government bonds and other approved securities was relatively lower.

MONETARY POLICY HIGHLIGHTS

In the RBI Monetary Policy issued on May 3, 2011, RBI strongly expressed its view that controlling inflation is imperative to sustaining growth over the medium-term. As such, RBI signaled that the conduct of monetary policy will continue to condition and contain perceptions of inflation in the range of 4.0-4.5% to be in line with the medium-term objective of 3.0% inflation consistent with India’s broader integration into the global economy. Instead of its earlier calibrated approach to fighting inflation, RBI took a large step hiking key policy rates by 50 basis points. Accordingly, the Repo and Reverse Repo rates have moved up to 7.25% and 6.25% respectively.

RBI has moderated its GDP growth projection around 8% for F.Y. 2011-12 from the 8.6% last year. Money supply (M3 growth) has been estimated at 16%. Aggregate bank deposit growth is projected at 17% and bank credit growth at 19%. WPI Inflation has been estimated at 6% with an upward bias for end March 2012.

OPERATIONS

Deposits increased from Rs.52570.100 millions at the beginning of the year to Rs.63108.100 millions as on March 31, 2011 depicting a net increase of Rs.10538.000 millions (20.05%). The Bank also generated non interest income, adding to the bottom line, by offering value added products in the form of Insurance (both life as well as non-life) and Mutual Funds, through tie-ups with the leaders in the field, to assist its esteemed clientele in financial planning, tax planning and wealth creation. Increased usage of alternate business channels such as ATMs, Internet Banking and SMS Banking improved productivity in operations.

Through RTGS and NEFT, the Bank enables the quickest transfer of funds providing prompt financial service to its valued clientele. As part of the BANCS and NFS network, it provides customers the ultimate freedom of access to over 70,000 ATMs, anytime, anywhere across the country – convenient banking at fingertips. With a view to provide value addition to the host of services offered by the Bank, HNI Cell has been started in August 2010.

BRANCH BANKING

In an industry such as banking where all the banks offer the same products and services, what differentiates one bank from the other is – Service. This is where SVC scores in a big way. The feeling shared by our customers, that the service rendered by SVC is heart-warming, is justified.

Our state-of-the-art “Genius” Technology is the main ammunition in our artillery. But technology alone can only do so much. Our strength is the repertoire of banking products calibrated to suit various segments of society. Add to these, our aesthetically designed branches, located strategically and manned by people with a simple credo – “service above everything”. No wonder, we are winning hearts and forging relationships like never before.

The Bank’s branches are easily accessible and provide a wholesome experience to our esteemed clientele not merely restricted to their routine transactions but also soliciting involvement in overall development both on personal as well as professional front.

Our extensive branch network serves as an integrated channel for business mobilization and distribution of third

party products in addition to being the perfect brand ambassadors promoting the Bank through personalized service offered with a smile.

The Bank’s customers are presently being served through a widespread network of 105 branches in 7 states. In the F.Y. 2010-11 the Bank added 16 new branches at strategic locations viz. Wadala, Lalbaug, Ghatkopar (W), Anandnagar- Dahisar, Khadakpada-Kalyan, Dombivli, Charkop-Kandivli (W), Badlapur, Bhosari-Pune, Bibwewadi-Pune, Chinchwad- Pune, Sinhagad-Pune, Ahmednagar, Latur, Belgaum, Hyderabad (Merged Bank). The existing Panchavati Extension Counter was up-graded into a full-fledged Branch.

CREDIT

The Bank’s Advances increased from Rs. 33971.200 millions at the beginning of the year to Rs. 42022.300 millions as on March 31, 2011 depicting a net increase of Rs.8051.100 millions (23.70%).

The Bank’s achievement of a 23.70% increase in advances while maintaining Net NPAs at 0% clearly indicates operational excellence combined with strategic thinking, augmented by strategic planning and being equipped to adapt and thrive in a rapidly changing business environment.

The Bank has in place a well-defined Credit Policy with explicit rules and instructions pertaining to granting credit which aims at following sound lending practices.

The Bank’s Centralized Credit Cell (CCC) has the fastest turnaround time, largely due to systems and processes

fine-tuned for speedy disposal of credit proposals. Automated loan application tracking system, further ensures speedy processing. Manned by professional analysts trained in judicious appraisal process and following a well-defined code of analysis, the CCC leverages on its in-depth knowledge of the emerging sectors and formulates strategies that create long term value, thereby positively contributing to the Credit Portfolio of the Bank. Supplemented by a strong Credit Information Department, Technical Department & Performance Planning & Review Cell, CCC is well equipped to provide structured loans to meet varied requirements be it in the SME sector, Retail sector or Corporate Finance.

Not restricted to analyzing, processing and sanctioning credit proposals, CCC also ensures, through the Credit Monitoring Department, that credit facilities are closely monitored and followed-up on an ongoing basis in co-ordination with the branches and other departments thus ensuring that the credit quality is maintained.

The Loans Committee comprising of experienced Directors on the Board, oversees the overall functioning of CCC by holding meetings twice a month in order to discuss and deliberate upon big ticket advances. Further, policy decisions, industry exposure limits and delegation of powers are also decided by this Committee.

RECOVERY

The Bank continued its persistent efforts to restrict NPAs at the least level possible through stringent recovery and

astute use of available legal avenues. Appropriate strategies and consistent follow-up resulted in enabling the Bank to restrict its Gross NPAs at `112.02 Cr. as on March 31, 2011. The percentage of Gross NPAs to Gross Advances stands reduced to 2.67% as against 3.11% in the previous year. The Bank has been successful in maintaining its Net NPAs at 0% for the third consecutive year.

The Bank will continue to relentlessly address both the facets of NPA Management viz. recovery out of existing NPAs as well as arresting the emergence of fresh ones.

INTERNATIONAL BANKING DIVISION

The International Banking Division of the Bank, which commenced independent operations with effect from

July 23, 2008, completed second full financial year of its operations during 2010-11. Business turnover as well as the revenues earned, increased substantially during the current financial year.

The Bank offers entire gamut of products for Foreign Exchange business, to its clients. The Buyer’s Credit facility used for financing of imports was availed extensively by its clients and the volume of business under this facility increased considerably during the year. The Bank enjoys lines of credit from overseas branches of leading public sector, private sector and foreign banks for extending this facility to its customers.

The Bank is also having authenticated SWIFT arrangements with leading 64 banks at 207 international centres. The arrangements entered with Thomas Cook (India) Limited – Principal Agents for Money Gram and UAE Exchange during last year for money transfer services has picked up well. This facility is now available at all the branches. The Bank is also having arrangements with Thomas Cook (India) Limited, and Pheroze Framroze and Co. Pvt. Ltd., for issuance of foreign currency notes, travelers’ cheques and international debit cards to facilitate international travel of our clientele.

AUDIT AND INSPECTION

The professionalism exhibited by the Bank in ensuring robust risk management practices and controls is evident in the functioning of the Audit Department of the Bank which performs independent and objective assessment to monitor adequacy, effectiveness and adherence to the internal controls, processes and procedures. It effectively evaluates the Bank’s risk management, control and governance activities and promotes continuous improvement. All the major functional elements of the Bank viz. branch operations, financial system, information systems, funds management and corporate administration are audited across the year in a systematically disciplined manner with reports presented to the Audit & Inspection Committee. The functioning of the Audit Department is supplemented by external audit firms which conduct Concurrent Audit and Stock Audit to ensure dual checks and balances on the entire function and operations of the Bank. The Audit Department also ensures regulatory compliance in all operational matters. It disseminates key regulatory updates affecting business operations, review of new systems and processes from a regulatory compliance perspective and provides guidance on compliance related matter.

The Audit and Inspection Committee comprising of professionally qualified and experienced Directors on the Board holds a meeting once a month to deliberate upon major findings reflected in various inspection report, peruse compliance reports, provide direction and oversee the operations of the total audit function in the Bank.

MERGERS AND ACQUISITIONS

The Apna Co-operative Urban Bank Limited, Hyderabad, came into the SVC fold in the F. Y. 2010-11, enabling the Bank to make a foray into the State of Andhra Pradesh, where it had hitherto no operations and thereby expand its area of operation to cover the twin cities of Hyderabad and Secunderabad.

BOARD OF DIRECTORS

The Bank’s Board is a confluence of professional expertise ensuring the Bank's prosperity by collectively directing the Bank's affairs, whilst meeting the appropriate interests of all the stakeholders. In addition to business and financial issues, the Bank’s Board effectively deals with challenges and issues relating to corporate governance and corporate ethics. The Board formulates guidelines for performance by setting appropriate parameters and the pace for current operations and future development. It determines strategic options, selects those to be pursued and decides the means to implement and support them.

AWARDS

The Bank was awarded the “Best Technology Bank of the Year – 2010” in the Co-operative Banks Category at the Indian Banks Association (IBA) Banking Technology Awards 2010.

The Bank was also recipient of the following awards from Banking Frontiers at their function “Award 2010 for

Co-operative Sector”:-

1. Winner – Operational Efficiency

2. Winner – NPA Management

3. Winner – Statutory Compliance

4. Winner – Best Data Centre

5. Winner – Data Centre Virtualization

6. Runner-up – Excellence in Customer Service

Out of the 9 awards declared by Banking Frontiers for excellence in banking and technology, SVC Bank bagged

6 awards.

CHANGE IN FORMAT OF BALANCE SHEET

In order to depict realistic figures of Reserves and Other Funds and Other Liabilities as on the date of Balance Sheet, the Bank, with effect from this financial year, proposes to make appropriations from the Net Profit in the same financial year subject to approval of the General Body. Consequently, the Appropriation of Profit has been given effect in the Balance Sheet as at March 31, 2011 and will be done subsequently in every financial year and may be deemed to have been approved as of that date.

AS PER WEBSITE DETAILS :

HISTORY

Subject was founded when co-operation was just beginning to gain ground in the country. It was set up with the primary objective of assisting the less fortunate members of the community in its economic enterprises, to encourage savings and to create funds for providing financial aid to deserving members.

Rao Bahadur Shripad Subbarao Talmaki, the Maharshi of Co-operation, was the main architect of the Bank. The Bank was originally registered as a Co-operative Credit Society on 27th December 1906.

Thus inspired by lofty ideals for the betterment of the economic, moral and material well-being of the Community, the Bank was brought into existence with modest beginnings.

MILESTONES

• Fixed Deposits, Savings Bank Deposits and Cumulative Deposits Scheme introduced in 1907.
• First Co-operative Stores in 1910.
• Facilities for remittance by Draft made available to Members in 1911.
• Education Fund in 1911.
• Cash Credit Loan Scheme in 1913.
• First Co-operative Housing Society in Bombay in 1915.
• Fidelity Guarantee Fund in 1927.
• Distress Relief Fund in 1931.
• Staff Gratuity Fund in 1954.
• Facilities thrown open to all communities in 1956.
• Introduction of Safe Deposit Vaults in 1964.
• Industrial Financing in 1966.
• Introduction of Cash Certificates in 1975
• "Scheduled Bank Status" conferred on the Bank in 1988
• Deposits cross 10000.000 millions in 20000.000 millions.
• Setting up of Corporate Office - SVC Tower at Vakola in 2002

Implementation of Genius I Core Banking Solution in 2003 across all the 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. 47.80
UK Pound	1	Rs. 75.16
Euro	1	Rs. 65.11

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
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	7
--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.