MIRA INFORM REPORT

Report Date :

20.08.2012

IDENTIFICATION DETAILS

Name :	CORPORATION BANK
Registered Office :	Post Box No. 88, Mangala Devi Temple Road, Mangalore – 575001, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Year of Establishment :	1906
TAN No.: [Tax Deduction & Collection Account No.]	BLRC04854D
Legal Form :	Public Sector Bank. The Banks shares are listed on the Stock Exchange.
Line of Business :	Banking and Other Related Services.
No. of Employees :	10051 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (80)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 331000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a profit making Government of India Bank. Bank financial position seems to be excellent. Liquidity of bank is quick. Trade relations are reported to be trustworthy. Business is active. Payments are reported to be regular and as per commitments. The bank can be considered for good 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AAA
Rating Explanation	Having highest degree of safety regarding timely servicing of financial obligation it carry lowest credit risk.
Date	May, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered/ Corporate Office :	Post Box No. 88, Mangala Devi Temple Road, Mangalore – 575001, Karnataka, India
Tel. No.:	91-824-2426416-420/ 2427911-13/ 24311685/ 2424971 (Direct)
Fax No.:	91-824-2441208/ 2425233/ 2423853/ 2444617/ 2440964
E-Mail :	corpho@corpbank.com
Website :	http://www.corpbank.com

DIRECTORS

(AS ON 31.03.2012)

Name :	Mr. Ajay Kumar
Designation :	Director
Name :	Mr. Ashwani Kumar
Designation :	Director
Name :	Mr. Amar Lal Baultani
Designation :	Director
Name :	Mr. L. L. Meena
Designation :	Director
Name :	Mr. U. S. Paliwal
Designation :	Director
Name :	Mr. Vincent D’Souza
Designation :	Director
Name :	Mr. Kaushik Kumar Ghosh
Designation :	Director
	Mr. Raj Kumar Agrawal
Name :	Director
Designation :
	Mr. Sushobhan Sarker
Name :	Director
Name :	Mr. Kawaljit Singh Oberoi
Designation :	Director
Name :	Mr. S. Shabber Pasha
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. K. Rama Murthy
Designation :	General Manager
Name :	Mr. H. M. A. Khan
Designation :	General Manager
Name :	Mr. N R Set
Designation :	General Manager
Name :	Mr. S N Satish
Designation :	General Manager
Name :	Mr. C G Pinto
Designation :	General Manager and Chief Financial Officer
Name :	Mr. H. S. Saini
Designation :	General Manager
Name :	Mr. B Narayana Shenoy
Designation :	General Manager
Name :	Mr. Mr. Y S Jain
Designation :	General Manager
Name :	Mr. S. Pattabiraman
Designation :	General Manager
Name :	Mr. K. Giridhar Shenoy
Designation :	General Manager
Name :	Mr. B. Lakshminarayana
Designation :	General Manager
Name :	Mr. K R Shenoy
Designation :	General Manager
Name :	Mr. P Rajaram Karanth
Designation :	General Manager
Name :	Mr. K. V. Raghava Kamath
Designation :	General Manager
Name :	Mr. B K Divakara
Designation :	General Manager
Name :	Mr. P. Suresh Chandra Baliga
Designation :	General Manager
Name :	Mr. Jai Kumar
Designation :	General Manager
Name :	Mrs. Swathi S. M.
Designation :	General Manager
Name :	Mr. Vasant Kini U.
Designation :	General Manager
Name :	Mr. K. S. Somayaji
Designation :	General Manager
Name :	Mr. S. K. Dash
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.06.2012)

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	86,692,554	58.52
Sub Total	86,692,554	58.52
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	86,692,554	58.52
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4,810,024	3.25
Financial Institutions / Banks	270,602	0.18
Insurance Companies	39,904,530	26.94
Foreign Institutional Investors	5,422,975	3.66
Sub Total	50,408,131	34.03
(2) Non-Institutions
Bodies Corporate	3,151,399	2.13
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	6,276,330	4.24
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,000,669	0.68
Any Others (Specify)	600,171	0.41
Clearing Members	47,419	0.03
Non Resident Indians	533,257	0.36
Overseas Corporate Bodies	5,100	-
Trusts	14,395	0.01
Sub Total	11,028,569	7.45
Total Public shareholding (B)	61,436,700	41.48
Total (A)+(B)	148,129,254	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	148,129,254	100.00

BUSINESS DETAILS

Line of Business :

Banking and Other related services

GENERAL INFORMATION

No. of Employees :	10051 (Approximately)
Bankers :	Reserve Bank of India

Banking Relations :	--
Statutory Central Auditors :	· Vinod Kumar and Associates Chartered Accountant · O P Totla and Company Chartered Accountant · Rajendra K. Goel and Company Chartered Accountant · K. Varghese and Company Chartered Accountant · V. Narayanan and Company Chartered Accountant · Suresh Chandra and Associates Chartered Accountant
Subsidiaries :	· Corpbank Securities Limited
Associates (RRB):	· Chikmagalur Kodagu Grameena Bank (Chiko Bank)

CAPITAL STRUCTURE

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000000	Equity Shares	Rs.10/- each	Rs.30000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
148129254	Equity Shares	Rs.10/- each	Rs.1481.326 millions
	Addition/ (Forfeited) during the year		Rs.0.033 Millions
	Total		Rs.1481.293 Millions

Paid-up Capital :

Held by Central Government	Rs.866.926 Millions
Held by the Public And Others	Rs.614.400 Millions
Forfeited during the year	Rs.0.033 Millions
Total	Rs.614.367 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011	31.03.2010
LIABILITIES
Share Capital	1481.293	1481.306	1434.378
Reserves & Surplus	81277.963	69896.782	56314.282
Deposits	1361422.006	1167474.977	927336.653
Borrowings	142480.966	159653.815	90775.256
Other Liabilities & Provisions	48941.981	36579.051	40812.417
TOTAL	1635604.209	1435085.931	1116672.986
ASSETS
Cash & Balances with RBI	92882.345	81423.158	88350.342
Balances with Banks & money at Call & Short notice	24097.593	22501.914	19568.886
Investments	474746.305	434527.423	345226.276
Advances	1004690.208	868504.042	632025.622
Fixed Assets	3559.766	3289.691	2926.914
Other Assets	35627.992	24839.703	28574.946
TOTAL	1635604.209	1435085.931	1116672.986

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
Income
Interest Earned	130177.842	91352.483	69876.873
Other Income	14926.194	12558.770	14933.384
TOTAL	145104.036	103911.253	84810.257
Expenditure
Interest expended	98708.853	61955.053	50843.465
Operating Expenses	17835.500	16417.099	12599.527
Provisions & Contingencies	13499.258	11406.422	9664.754
TOTAL	130043.611	89778.574	73107.746
Net Profit for the year	15060.425	14132.679	11702.511
Appropriations
Transfer to Statutory Reserves	3850.000	3750.000	3500.000
Transfer to Staff Welfare Fund	150.000	150.000	150.000
Transfer from/to (net) Investment Reserve	--	--	--
Transfer to Capital Reserve	213.748	30.534	2202.295
Special Reserves	4070.000	910.000	780.000
Transfer to General Reserves	3247.394	5848.877	2301.265
Interim Dividend Paid	--	--	--
Proposed Dividend	3036.660	2962.651	2366.727
Tax on Interim Dividends Paid	--	--	--
Tax on Dividends Proposed	492.623	480.617	402.225
Earning per shares	101.67	98.50	81.58

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Type	1^st Quarter
Interest Earned	36506.220
Income On Investments	7882.250
Interest On Balances With Rbi Other Inter Bank Funds	189.440
Interest / Discount On Advances / Bills	27415.110
Others	1019.420
Other Income	3276.130
Total Income	39782.350
Interest Expended	28421.920
Operating Expenses	4661.830
Total Expenditure	4661.820
Operating Profit Before Provisions and Contingencies	6698.610
Exceptional Items	0.000
Provisions and contingencies	2166.010
Profit Before Tax	4532.600
Tax	830.000
Profit After Tax	3702.600
+/- Extraordinary Items	0.000
+/- Prior period items	0.000
Net Profit	3702.60

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

PERFORMANCE AT A GLANCE:

Total Business of the Bank reached an impressive figure of Rs.2366110.000 Millions as on 31st March 2012, recording an absolute growth of Rs.33,0130.00 Millions over the 31.03.2011 business figure of Rs.2035980.000 Millions, at a growth rate of 16.21%.

The total deposits of the Bank increased by Rs.19,3940.000 Millions to Rs.1,36,1420.000 Millions as on 31.03.2012 from Rs.1,16,7480.000 Millions as on 31st March, 2011 registering a growth of 16.61% y-o-y.

The Bank continued its prudent approach in expanding quality credit assets in line with its policy on Credit Risk Management. For the first time the Bank’s credit figure surpassed the Rs.1.00 lakh crore mark to reach a level of Rs.1,00,4690.000 Millions as on 31.03.2012 from Rs.86,8500.000 Millions as on 31st March, 2011, recording an absolute growth of Rs.13,6190.000 Millions at a growth rate of 15.68%. During the financial year, focused attention was given for accelerated lending under Agriculture, SSI, SMEs and midsize corporate and retail segments for expansion of credit.

The performance of the Bank under recovery of NPAs during the financial year continued to be good. During the financial year, the Bank effected a cash recovery and up-gradation of NPAs of Rs.7586.000 Millions as compared to Rs.6273.300 Millions in the previous financial year.

The Bank recorded an encouraging performance in different functional areas during the financial year 2011-12 which resulted in increased earnings in absolute terms. For the first time the Bank achieved a milestone Net Profit figure of Rs.15060.400 Millions.

The Branch network of the Bank also reached a landmark figure of 1500 units, spread across the country.

INCOME ANALYSIS

Interest Income of the Bank recorded a growth of Rs.38825.300 Million (42.50%) from Rs.9,1352.500 Millions in the year 2010-11 to Rs.130177.800 Millions as against the Interest expenses which grew by 59.32% from Rs.6,1955.100 Millions during the financial year 2010-11 to Rs.9,8708.900 Millions during the year 2011-12. The Net Interest Income recorded a growth of Rs. 2071.500 Millions [7.05%] during the same period.

The total Income of the Bank [total of Interest Income and Non-Interest Income] improved to Rs.14,5104.000 Millions during the financial year 2011-12 from Rs.10,3911.300 Millions in the previous financial year recording a rise of Rs.4,1192.700 Millions [39.64 %].

Non-Interest Income from Core Areas increased by Rs.723.600 Millions [9.53%] from Rs.7593.500 Millions in the financial year 2010-11 to Rs.8317.100 Millions in the financial year 2011-12. The Total Non-Interest Income has increased from Rs.1,2558.800 Millions as on 31.03.2011 to Rs.1,4926.200 Millions as on 31.03.2012 by 18.85%.

The Net Interest Income reached a level of Res.31468.900 Millions during the financial year from Rs.29397.400 Millions as on 31.03.2011.

The Operating Expenses has shown a marginal increase of 8.64% during the financial year 2011-12 and stood at Rs.17835.500 Millions as compared to Rs.1,6417.100 Millions in 2010-11.

The Cost to Income Ratio stood at 38.44%.

Performance of Subsidiaries and other units sponsored by the Bank

Corp Bank Securities Limited: The Bank’s wholly owned subsidiary, Corp Bank Securities Limited (CBSL) has earned a total income of Rs.142.000 Millions, posted Profit Before Tax of Rs.138.100 Millions and Profit After Tax of Rs.120.700 Millions (after write off of deferred tax asset of Rs.21.000 Millions) for FY 2011-12, while the corresponding figures for FY 2010-11 were Rs.102.600 Millions, Rs.97.400 Millions and Rs.67.900 Millions (after write off of deferred tax asset of Rs.24.700 Millions) respectively. The Paid up Equity Share Capital remained at Rs.750.000 Millions as on 31.3.12, while the tangible net worth, after plough back of surplus, has gone up to Rs. 1381.200 Millions. The Earning per Share for fiscal ended March, 2012 was Rs.1.61 on account of deferred tax write off, while it was Rs.0.91 for fiscal ended March 2011. The Company has secured requisite regulatory approvals for undertaking Equity Broking business and the enablement process with National Stock Exchange of India Limited, (NSE) is taken forward. The Company has plans to undertake loan/ debt syndication business subject to getting requisite regulatory approvals.

Chikmagalur-Kodagu Grameena Bank [CHIKO Bank]: The Chikmagalur-Kodagu Grameena Bank, a Regional Rural Bank [RRB] sponsored by the Bank and established on 28.04.1984 has a Capital base of Rs.10.000 Millions with Bank’s share being 35% and the balance 65% being shared by Central Government (50%) and State Government (15%). It has 58 branches. The deposits of the Bank stood at Rs.4205.400 Millions and advances at Rs.2770.600 Millions [gross advances] as at 31.03.2012 as compared to Rs.3543.400 Millions and Rs.2315.900 Millions respectively, during the corresponding previous year. The Bank has posted a net profit of Rs.14.600 Millions for the year-ended 31.03.2012 as against Rs.6.300 Millions as on 31.03.2011. The Networth of the Bank as on date is Rs.316.998 Million of which the share of Corporation Bank is Rs.111.755 Millions. The Bank has become 100% CBS compliant.

MANAGEMENT DISCUSSION AND ANALYSIS

Monetary and Credit Policy for 2011-12

The annual monetary policy 2011-12 was drawn at a time when the domestic economy registered a good performance, second year in a row, after the global financial meltdown of 2008-09. However, the uncertainty about the international commodity prices and resultant rise in domestic inflation has posed a significant challenge on the sustainability of the growth trajectory experienced by the economy.

The International Monetary Fund (IMF) in its World Economic Outlook (WEO), (April 2011), projected that global growth is likely to moderate from 5.0% in 2010 to 4.4% in 2011. Growth is projected to decelerate in advanced economies due to waning of impact of fiscal stimulus, and high oil and other commodity prices. Growth in Emerging Market Economies (EMEs) is also expected to decelerate on account of monetary tightening and rising commodity prices.

Indian economy registered a growth of 8.4% in the financial year 2010-11, with a robust performance of the farm sector. The index of industrial production (IIP), which grew by a double digit growth during the first half of 2010-11, moderated subsequently. Service sector activities have continued to show growth momentum. However, the high international commodity prices and the impact of anti inflationary monetary policy stance coupled with a slow down in industrial and investment activities was expected to moderate the growth momentum in 2011-12. Based on these sentiments, the RBI has projected the baseline GDP growth for the financial year 2011-12 at 8%.

The domestic demand-supply balance and the global trends in commodity prices and the likely demand scenario, the regulator placed the WPI inflation for March 2012 at 6% with an upward bias.

The need to balance the resource demand to meet credit off take by the private sector and government borrowings, monetary projections have been made consistent with the growth and inflation outlook.

Money supply was projected to grow around 16.0% during 2011-12.

Growth projections for aggregate deposits during 2011-12 was placed at around 17.0% and for non-food credit was placed at 19.0%.

The overall stance of monetary policy in 2011-12 was intended to:

· Maintain an interest rate environment that moderates inflation and anchors inflation expectations.

· Foster an environment of price stability that is conducive to sustaining growth in the medium-term coupled with financial stability.

· Manage liquidity to ensure that it remains broadly in balance, with neither a large surplus diluting monetary transmission nor a large deficit choking off fund flows.

In the policy, the Reserve Bank increased the Repo Rate by 50 bps to 7.25%. The Reverse Repo Rate automatically adjusted to 6.25%. A new Marginal Standing Facility (MSF) was introduced from which SCBs can borrow overnight up to 1% of their respective NDTL, determined with a spread of 100 basis points above the Repo Rate, stood at 8.25%. Bank Rate and Cash Reserve Ratio (CRR) retained at 6.0%. Statutory Liquidity Ratio (SLR) was kept unchanged at 24% of NDTL. Savings Bank deposit interest rate increased from 3.5% to 4.0%.

Some of the other measures included :

– To issue the final guidelines on plain vanilla single-name credit default swap (CDS) for corporate bonds for resident entities, after taking into consideration the feedback/ suggestions received from market participants, by end-May 2011.

– To extend the period of short sale in govt. securities from the existing 5 days to a maximum period of three months, with a view to providing a fillip to the Interest Rate Futures (IRF) market and the term repo market.

– To extend delivery versus payment (DvP) III facility to transactions by the gilt account holders (excluding transactions between the gilt account holders of the same custodian) so that the gilt account holders get the benefit of efficient use of funds and securities.

– To allow Foreign Institutional Investors (FIIs) to cancel and rebook up to 10% of the market value of the portfolio

as at the beginning of the financial year.

– In respect of exports and imports invoiced in Indian Rupees, non-resident importers and exporters can hedge their currency risk with authorized dealer (AD) banks in India through their bankers having Rupee vostro accounts

in India. The contracts would be on a deliverable basis.

– To appoint a committee to re-examine the existing classification and suggest revised guidelines with regard to

priority sector lending classification.

– To allocate at least 25% of the total number of branches to be opened during a year to unbanked rural (Tier 5 and Tier 6) centres.

– To enhance the provisioning requirements on certain categories of non-performing advances and restructured advances as under:

· Advances classified as “sub-standard” will attract a provision of 15% as against the existing 10% (the “unsecured exposures” classified as sub-standard assets will attract an additional provision of 10%, i.e., a total of 25% as against the existing 20%);

· The secured portion of advances which have remained in “doubtful” category up to one year will attract a provision of 25% (as against the existing 20%);

· The secured portion of advances which have remained in “doubtful” category for more than one year but upto 3 years will attract a provision of 40% (as against the existing 30%);

· Restructured accounts classified as standard advances will attract a provision of 2% in the first 2 years from the date of restructuring, or in cases of moratorium on payment of interest/principal after restructuring, for the period covering moratorium and 2 years thereafter (as against existing provision of 0.25-1.00%, depending upon the category of advances); and

· Restructured accounts classified as non-performing advances, when upgraded to standard category will attract a provision of 2% in the first year from the date of up-gradation (as against existing provision of 0.25- 1.00%, depending upon the category of advances).

Macro-Economic Scenario in 2011-12

As per the advance estimates of CSO, the economic growth for 2011-12 is likely to fall to a three-year low of 6.9% mainly due to sharp slowdown in manufacturing, agriculture and mining sectors, against 8.4% expansion in the previous fiscal. The agriculture sector is likely to show a growth of 2.5% in 2011-12 as against previous year’s growth of 7.0%. Manufacturing sector is expected to drop down to 3.9% as against last year growth of 7.6%. Mining and quarrying is likely to witness a decline of 2.2%, compared to a growth of 5% a year ago.

The growth in the Index of Industrial Production (IIP) decelerated to 2.8% during 2011-12 from 8.2% in the corresponding period of the previous year. In terms of use based classification, while capital goods and intermediate goods sectors registered negative growth of 4.1% and 1.0%, respectively, the growth of the consumer durables sector decelerated to 2.5%. The cumulative growth rate of eight core infrastructure industries during fiscal 2011-12 slowed down to 4.3%, down from 6.6% in 2010-11.

Despite a weak global economy and a slowing domestic market, the service sector has maintained its strong performance during 2011-12. With growth rate of 8.8% achieved till December 2011, the advance estimates by CSO projected a growth rate of 9.4% in 2011-12. Within services, trade, hotels, transport and communication is expected to grow the fastest at 11.2% in FY12 as against 11.1% in FY11.

WPI inflation, as measured by year-on-year variations in the wholesale price index (WPI), remained above 9% during April-November 2011, moderated to 6.9% by end- March 2012, consistent with the RBI’s indicative projection of 7%. Food articles inflation, which was 8.1% during April- December 2011, briefly turned negative in January 2012, however, increased sharply to 6.1% in February and further to 9.9% in March 2012. Non-food manufactured products inflation, which was 8.4% in November 2011, decelerated significantly to 5.8% in February and further to 4.7% in March 2012. Fuel inflation moderated from over 15% in November-December 2011 to 10.4% in March 2012.

The country’s exports during 2011-12 registered growth of 21.0% to reach a level of US$303.7 billion as against US$251.1 billion in the previous year. During the same period imports grew by 32.1% to reach a figure of $488.6 billion ($369.8 billion). The country’s trade deficit widened to US$ 184.9 billion from US$ 118.6 billion in the previous year.

During April-December 2011, India’s current account deficit (CAD) widened to US$ 53.7 billion (4.0% of GDP) from US$ 39.6 billion (3.3% of GDP) in April-December 2010, largely reflecting a higher trade deficit.

During 2011-12, India’s foreign exchange reserves declined by US$ 10.4 billion and stood at US$ 294.4 billion as at end-March 2012 (30th March 2012).

The global macro economic conditions have been affected by the debt crisis in Euro zone area and the modest recovery of the US economy. Growth also slowed down in emerging and developing economies (EDEs) reflecting the combined impact of monetary tightening and slowdown in global growth. Going forward, the global macroeconomic environment seems to be challenging. While US economy is showing signs of improvement, a sustainable solution to the debt crisis in Euro zone area is yet to emerge. The rise in international crude oil prices since the beginning of 2012 also reflects both geo-political concerns and abundant global liquidity.

The available projections for 2012-13 by RBI and Economic Survey within the range of 7.3% to 7.6% suggest a moderate improvement in domestic macro economic situation compared to the previous year. However, the inflationary situation still remains challenging considering the uncertainty in international commodity prices and incomplete pass through of past price increase in the international market to domestic petroleum product prices.

Banking Trends during 2011-12

To contain inflation and anchor inflation expectations RBI extensively used the policy rates in 2011-12. After raising the policy rate by 375 basis points during March 2011- October 2011, the regulator paused the rates in its mid-quarter review (MQR) of December 2011.

SCBs credit growth decelerated from 22.1% at the beginning of 2011-12 to 15.4% by February 2012 reflecting slower economic activity. However, it picked up to 19.3% as on 30th March 2012, higher than the indicative projection of 16%. The deceleration in credit growth was broad-based across agriculture, industry, services and personal loans. The pick-up in non-food bank credit towards the year-end was on account of increased credit flow to agriculture and industry. Net bank credit to the Central Government increased at a significantly higher rate of 15.7% in 2011-12 as compared with 8.4% in the previous year reflecting higher borrowings.

SCBs deposits growth decelerated in the financial year 2011-12. Deposits lagged behind mainly due to the tight liquidity condition in the market and higher inflation.

Moreover, people preferred other sources of investment, despite offering a higher rate of interest for Deposits by banks. Deposit growth fell to as low as 13.4% on the week ending March 23, but picked up substantially to 17.4% year-on-year by March 30, largely due to a pickup in one-off, short-term corporate deposits.

During 2011-12, money supply (M3) growth, which was 17% at the beginning of the financial year, moderated during the course of the year to about 13% by end-March 2012, lower than the RBI’s indicative trajectory of 15.5%, mirroring both tightness in primary liquidity and lower credit demand during most part of the year.

The liquidity cndition remained deficit throughout in the financial year 2011-12. The deficit went beyond the RBI’s comfort level of 1% of NDTL of banks. The average net injection of liquidity under the daily liquidity adjustment facility (LAF) increased from around `0.5 trillion during April-September 2011 to around `1.4 trillion during February 2012 and further to `1.6 trillion during March 2012. In order to mitigate the liquidity tightness, the RBI took steps to inject primary liquidity. It conducted open market operations (OMOs) aggregating around `1.3 trillion between November 2011 and March 2012. Further, the cash reserve ratio (CRR) was reduced by 125 basis points (50 basis points effective January 28, 2012 and 75 basis points effective March 10,2012), injecting primary liquidity of about `0.8 trillion.

As far as money market is concerned, the 10-year benchmark government security yield remained range-bound during the first half of 2011-12. It firmed up in October 2011 on account of increased market borrowing, policy rate hikes and persistent liquidity tightness. The yield hardened again somewhat towards end of March 2012 reflecting concerns about government borrowing programme in 2012-13, which is significantly larger than even the expanded programme of 2011-12.

The currency market was under pressure during August – December 2011-12, due to a slowdown in capital inflows reflecting global uncertainty. The rupee touched its all-time low of 54.23 against the dollar on 15th of December 2011. Subsequently, the exchange rate established in response to the measures undertaken by the RBI and the government aimed at improving dollar supply in the foreign exchange market as also to curb speculation.

In its Second Quarter Review of Monetary Policy 2011-12, RBI has decided to deregulate the savings bank deposit interest rate with immediate effect. Banks are now free to determine their savings bank deposit interest rate, subject to the conditions that each bank will have to offer a uniform interest rate on savings bank deposits up to 0.100 Million, irrespective of the amount in the account within this limit and for savings bank deposits over Rs.0.100 Million, a bank may provide differential rates of interest, if it so chooses. However, there should not be any discrimination from customer to customer on interest rates for similar amount of deposit.

The RBI has also announced the deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposit rates and Ordinary Non-Resident (NRO) Savings Accounts. Accordingly, banks are now free to determine their interest rates on both savings deposits and term deposits of maturity of one year and above under NRE Deposit accounts and savings deposits under NRO Accounts. However, interest rates offered by banks on NRE and NRO deposits cannot be higher than those offered by them on comparable domestic rupee deposits.

BANK’S OPERATIONAL PERFORMANCE

Deposit Mobilisation

During the year 2011-12 emphasis was laid on clientele expansion with strategy of lining up a series of campaigns for CASA growth. The campaigns saw opening of over 8.9 lakh Current and Savings accounts. Key Branches and New branches were focused for retail deposits. Special Deposit schemes namely Corp Smart Gain and Corp Super Smart were introduced with a view to mobilize short term deposits for periods ranging from 75 days to 1 year under which Rs.21600.000 Millions under Super Smart and Rs.3965.800 Millions under Smart

Gain FD were mobilized.

PERFORMANCE HIGHLIGHTS:

The Non Bank Deposits of the Bank has reached a level of Rs.1166010.000 Millions as at 31st March, 2012 registering a year-on-year growth of Rs.196900.000 Millions at 20.3%. The total deposits of the Bank including CD’s reached a level of Rs.2366110.000 Millions as at 31st March 2012, registering yearon- year growth of Rs.330130.000 Millions at 16.21%.

Current Deposits stood at Rs.122750.000 Millions as against Rs.140420.000 Millions in the previous year.

Savings Deposits reached Rs.178080.000 Millions with net accretion of Rs.15820.000 Millions at 9.7% Y-O-Y growth.

The Share of Demand Deposits in total Non Bank Deposits stood at 26%.

Term deposits reached a level of Rs.865180.000 Millions with a net accretion of Rs.198750.000 Millions at a growth rate of 29.8% Y-O-Y.

The Average Non Bank Deposits of the Bank increased by Rs.215590.000 Millions and stood at Rs.1007600.000 Millions as at 31^st March, 2012 recording a growth of 27.2% year-on-year. Average CASA grew by 11.0% with net accretion of Rs.23330.000 Millions and stood at Rs.235890.000 Millions.

The Bank has added 20,46,850 New Deposit Accounts during the year of which 16,55,052 new accounts have been added under Demand Deposits.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE 2012

(RS. IN MILLIONS)

Particulars	Quarter Ended 30.06.2012
	(Unaudited)
Interest Earned	36506.218
-Interest / Discount on Advances / Bills	27415.106
-Income On Investments	7882.253
-Interest on balances with Reserve Bank of India and other inter bank funds	189.436
-Others	1019.423
Other Income	3276.132
Total Income	39782.350
Interest Expended	28421.918
Operating Expenses	4661.825
-Employees Cost	2390.269
-Other Operating Expenses	2271.556
(All Items exceeding 10% of the total expenditure excluding interest expenditure may be shown separately)
Total Expenditure	33083.743
Operating Profit before Provisions and Contingencies	6698.607
Provisions (Other than tax) and Contingencies	2166.012
Exceptional Items	0.000
Profit (+)/ Loss(-) from ordinary activity before tax	4532.595
Tax Expense	830.000
Net Profit (+)/ (Loss) (-) from ordinary activities after tax	3702.595
Extraordinary Items (Net of Tax Expenses)	0.000
Net Profit/ (Loss) for the period	3702.595
Paid up Equity share capital (Face Value of Rs.10/- each)	1481.293
Reserves excluding revaluation reserves	81277.963
Analytical Ratios
Percentage of shares held by Government of India	58.52%
Capital Adequacy Ration Basel I	12.38%
Tier I Tier II	7.93% 4.45%
Basel II	12.92%
Tier I Tier II	8.28% 4.64%
Earning per shares
Basic and diluted EPS before Extraordinary items (net of tax expense) for the period, for the year to date and for the previous year ( Not to be annualised)	25.00
Basic and diluted EPS after Extraordinary items (net of tax expense) for the period, for the year to date and for the previous year ( Not to be annualized)	25.00
NPA Ratios
Gross NPA	16894.193
Net NPA	11854.748
% of Gross NPA	1.71%
% of Net NPA	1.20%
Return on Assets	0.97%
Public Shareholding
Number of Shares (In Lakhs)	614.40
Percentage of Share Holding	41.48%
Promoters and Promoter group Shareholding
a) Pledged/Encumbered
Number of shares	0.000
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	0.00
Percentage of Shares (as a % of the total share capital of the Company)	0.00
b) Non-encumbered
Number of shares (In Lakhs)	866.93
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100%
Percentage of Shares (as a % of the total share capital of the Company)	58.52%

NOTE:

The financial results have been prepared following the same accounting policies and practices as those followed in the annual financial statements for the year ended 31st March 2012.

2. The working results for the quarter ended 30th June 2012 have been arrived at after considering provision for Non-Performing and Standard Assets and depreciation on Investments as per Reserve Bank of India guidelines. Provision for taxes, employee benefits and other necessary provisions for the quarter ended 30th June 2012 have been made on an estimated basis.

3. In terms of RBI circular no:DBOD.BP.BC.80/21.04.018/2010-11 dated 9th February 2011, after reckoning the available pension fund balance of Rs.3386.700 Millions, the net incremental liability of Rs.5525.300 Millions relating to II option for Pension is being amortised over a period of five years (Rs.1105.100 Millions annually) starting from year 2010-11. Accordingly a sum of Rs.276.500 Millions (representing 25% of Rs. 1105.100 Millions) has been charged to the Profit and Loss Account during the quarter ended 30th June 2012.

4. Segment Report has been prepared based on the stand-alone financial information of the Bank. As the Bank does not have earnings emanating outside India, it is considered to operate in only the domestic segment.

Particular	Quarter Ended 30.06.2012
	Un-Audited
A] Segment Revenue
Treasury Operations	9125.500
Wholesale Banking	22073.700
Retail Banking	7665.200
Other Banking Operations	917.900
Total	39782.300
B] Segment Results
Profit (+) Loss (-) before tax and after interest from each segment
Treasury Operations	65.000
Wholesale Banking	2655.800
Retail Banking	2007.300
Other Banking Operations	285.300
Total	5013.400
C] Unallocated Expenses	480.800
D] Operating Profit	4532.600
E] Income Tax	830.000
F] Extraordinary Profit/Loss	0.000
G] Net Profit	3702.600
H] Other Information
I] Segment Assets
Treasury Operations	427191.900
Wholesale Banking	736812.400
Retail Banking	254042.700
Other Banking Operations	155718.300
Unallocated Assets	15988.500
Total Assets	1589753.800
J] Segment Liabilities
Treasury Operations	395986.700
Wholesale Banking	689523.200
Retail Banking	249691.400
Other Banking Operations	143863.000
Unallocated Liabilities	24227.600
Capital and Reserve	86461.900
Total Liabilities	1589753.800

5. Status of Investor Complaints is as follows:

	No. of complaints
a. Pending as on 31st March 2012	NIL
b. Received during the Quarter	91
c. Disposed off during the Quarter	91
d. Pending as on 30st June 2012	Nil

6. Provisioning Coverage Ratio as at 30th June 2012 works out to 91.30% with respect to Gross NPA as at September 30, 2010 and 61.02% with respect to Gross NPA as at 30th June 2012.

7. Corresponding period /year figures have been regrouped /reclassified, wherever necessary.

8. The above results have been approved by the Board of Directors at its meeting held on 30th July 2012. The same have been subjected to limited review by the Statutory Central Auditors of the Bank in line with the guidelines issued by the Reserve Bank of India and as per the requirements of the listing agreement with Stock Exchanges.

NEWS

Corp Bank may require up to Rs 16000.000 Millions more capital in 2013-14

Kolkata, July 18 (PTI) State-owned Corporation Bank today said it would require up to Rs 1,6000.000 Millions in additional capital in 2013-14.

"We are well capitalised in the current year 2012-13 even under Basel III norms. We will require additional capital from next year and in a severe condition the need will be Rs 1,6000.000 Millions," Corp Bank chairman and managing director Ajai Kumar told reporters on the sidelines of FICI organised banking conclave.

Explaining the 'severe conditions', Kumar said the capital requirement would depend on requirement to maintain risk-weighted capital and even on the higher side the bank would need Rs 1,6000.000 Millions capital.

The bank was keeping all options open including capitalisation from the government to raise the fund. The bank now has CAR of 12 per cent.

Speaking about bulk deposit diktat of the banking regulator, Kumar said the bank would not be able to bring down the bulk deposit to 10 per cent by March 2013 from the close to 40 per cent now.

He indicated that he would seek more time to meet the guidelines.

Kumar said the bank expected that there would be more slippage during the year and net NPA could rise to around 1.25 per cent in 2012-13.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.70
UK Pound	1	Rs.87.55
Euro	1	Rs.68.85

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		80

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.