MIRA INFORM REPORT

Report Date :

10.05.2012

IDENTIFICATION DETAILS

Name :	STATE BANK OF HYDERABAD
Formerly Known As :	HYDERABAD STATE BANK
Registered Office :	Ground Floor, Gunnfoundry, Hyderabad-500177, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.08.1941
Capital Investment / Paid-up Capital :	Rs.207.500 Millions
Legal Form :	Subject is a subsidiary (although said as an associate) of State Bank of India. Both are legally independent banks. Shares of State Bank of India are listed on the Stock Exchanges.
Line of Business :	Subject is engaged in banking business.
No. of Employees :	13108 [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 and a reputed Bank of Government of India. The Bank enjoys favourable reputation in the banking industry. Financial position is good. Payments are regular and as per commitments. The Bank can be considered good for normal business dealings under usual 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Ground Floor, Gunnfoundry, Hyderabad-500177, Andhra Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	sbhmis@hd1.vsnl.net.in
Website :	http://www.sbhyd.com
Regional Office :	Located At: · Aurangabad · Gulbarga · Hyderabad · Mumbai · New Delhi · Secunderabad · Vizag · Warangal · Chennai · Tirupati

DIRECTORS

As on 31.03.2011

Name :	Mr. Pratip Chaudhuri
Designation :	Chairman
Name :	Mr. M Bhagavantha Rao
Designation :	Managing Director
Name :	Mr. Kaza Sudhakar
Designation :	Director
Name :	Mr. Shyamal Acharya
Designation :	Director
Name :	Mr. A K Deb
Designation :	Director
Name :	Mr. K N Nayak
Designation :	Director
Name :	Mr. Gopal Vaidya
Designation :	Director
Name :	Mr. P. Narasimha
Designation :	Director
Name :	Mr. Ramesh Datla
Designation :	Director
Name :	Mr. Venkat Changavalli
Designation :	Director
Name :	Prof. V Venkata Ramana
Designation :	Director
Name :	Mr. S Gopal Krishna
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Sudhir Garg
Designation :	Chief General Manager
Name :	Mr. Jyoti Ghosh
Designation :	General Manager (SAMG) and Gr Executive (Corp Bkg)
Name :	Mr. M P Sridharan
Designation :	General Manager (Operations) and CDO
Name :	Mr. S Venkataraman
Designation :	General Manager (Tech and Insp) and CRO
Name :	Mr. Harikumar E K
Designation :	General Manager (Trsy and F and A) and Gr Executive(PB)
Name :	Mr. Ganesh Pai
Designation :	General Manager (FI) and Gr Executive(Agri)
Name :	Mrs. M Yashoda Bai
Designation :	General Manager and CVO
Name :	Mr. Mukund Tripathi
Designation :	General Manager and Gr Executive(MSME, Govt. Business)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

NOT AVAILABLE

BUSINESS DETAILS

Line of Business :

Subject is engaged in banking business.

GENERAL INFORMATION

No. of Employees :	13108 [Approximately]
Bankers :	Reserve Bank of India

Banking Relations :	--
Auditors :
Name :	· P.G. Joshi and Company Chartered Accountants · Chandra Gupta and Associates Chartered Accountants · K.C. Khanna and Company Chartered Accountants · Ananthan and Sundaram Chartered Accountants · Rao and Kumar Chartered Accountants · D.V. Ramana Rao and Company Chartered Accountants

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.100/- each	Rs.5000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2075000	Equity Shares	Rs.100/- each	Rs.207.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
CAPITAL AND LIABILITIES
Capital	207.500	207.500	172.500
Reserves & Surplus	52944.147	42437.457	31910.782
Deposits	886278.655	729707.231	624489.088
Borrowings	52896.597	48384.170	23644.702
Other Liabilities and Provisions	74653.509	63123.805	87001.856
TOTAL	1066980.408	883860.163	767218.928
ASSETS
Cash & Balances with Reserve Bank of India	80362.713	51060.922	54283.171
Balances with Banks and money at Call & Short Notice	23759.651	23531.356	15278.874
Investments	284466.567	240085.178	209816.616
Advances	647203.074	528248.406	436791.745
Fixed Assets	3980.003	3049.515	2688.238
Other Assets	27208.400	37884.786	48360.284
TOTAL	1066980.408	883860.163	767218.928

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
I. INCOME
Interest earned	78512.845	63341.185	57094.956
Other Income	9837.541	8413.292	7693.229
TOTAL	88350.386	71754.477	64788.185
II. EXPENDITURE
Interest expended	50027.821	44708.820	42427.105
Operating Expenses	15127.909	9837.752	9331.434
Provisions and Contingencies	11532.305	8980.836	6871.556
TOTAL	76688.035	63527.408	58630.095
III. PROFIT/ LOSS:
Net Profit for the year	11662.351	8227.068	6158.090
Profit brought forward	0.006	0.006	0.005
TOTAL	11662.357	8227.074	6158.095
Appropriation:
Transfer to Statutory Reserve	3498.706	2468.121	1847.428
Transfer to Other Reserves	7318.426	3818.505	2769.173
Transfer to Capital Reserve	122.289	342.444	572.769
Dividend (Includes Corporate Dividend Tax)	1155.661	1165.270	968.719
Investment Reserve Account	(432.728)	432.728	0000
BALANCE CARRIED OVER TO THE BALANCE SHEET	0.003	0.006	0.006
Earnings Per Share (Rs.)	5620.38	4766.66	3569.91

LOCAL AGENCY FURTHER INFORMATION

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	No
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

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Claims against the bank not acknowledged as Debts	307.569	291.118
Liability for partly paid investments	1.988	1.988
Liability on account of out-standing forward Exchange Contracts	327158.072	216712.513
Guarantees given on behalf of Constituents (Including Letters of Comfort)
· In India	57131.535	46382.196
· Outside India	3494.914	5201.617
Acceptances, endorsements and other Obligations	61210.399	51008.269
Other items for which the bank is contingently liable (net of provisions)	4131.527	2385.534
Total	453436.004	321983.235

UNAUDITED FINANCIAL RESULTS FOR THE CALENDAR QUARTER AND THE NINE MONTH PERIOD ENDED 31.12.2011

Rs. in Millions

PARTICULAR	FOR THE QUARTER ENDED	FOR THE PERIOD ENDED
	31.12.2011	31.12.2011
Interest Earned	27300.800	76379.400
Interest and discount on advances/bills	20934.200	58606.100
Income on investments	6010.700	16723.700
Interest on term money/ lendings	206.500	420.300
Interest on balances with RBI and other interbank funds	141.300	570.300
Other interest income	8.100	59.000
Other income	2539.800	7151.000
Total income	29840.600	83530.400
Interest expanded	18847.900	53260.000
Operating expenses	4764.300	13207.000
Payments to an provision for employees	3155.300	8704.000
Other operating expenses	1609.000	4503.000
Total expenditure [excluding provisions and contingencies]	23612.200	66467.000
Operating profit /loss [profit before provision and contingencies]	6228.400	17063.400
Other provision and contingencies	2067.200	5251.700
Out of which provision for NPAs	1677.000	4026.200
Provision for taxes	1200.500	2825.400
Deferred tax	(51.800)	814.000
Net profit	3012.500	8172.300
Paid-up equity share capital	207.500	207.500
Reserves excluding revaluation reserves	--	--
Analytical Ratios
Percentage of shares held by Gol	Nil	Nil
Capital adequacy ratio (Basel I)	11.52	11.52
Capital adequacy ratio (Basel II)	12.17	12.17
Earnings per share (In Rs.)	14518.100	39384.600
Amount of gross non-performing assets	23827.500	23827.500
Amount of net non-performing assets	13961.000	13961.000
Percentage of gross NPAs	3.35	3.35
Percentage of net NPAs	1.99	1.99
Return on assets (ROA) (annualized)	0.99	0.99

NOTE:

· The above results have been taken on record by the board of directors in the meeting held on 01.02.2012 and have been subjected to review by the statutory central auditors

· The financial results for the nine months period ended 31.12.2011 have been arrived at after considering the provision for non-performing assets, standard assets and investment depreciation as per prudential norms issued by RBI. Provisions for gratuity, pension, leave encashment, depreciation on fixed assets, income tax and deferred tax have been made on estimated basis, which is subject to adjustment at the year end.

· The accounting policies adopted in the previous accounting year ended 31.03.2011 have not been changed during nine months period ended 31.12.2011 (including those covering income recognition and assets classification aspects) except as staged hereunder:

a) As per prudential norms of RBI issued after 01.04.2011, the bank has made provision for NPAs on advances. As a results the additional provision made during the period is Rs.982.900 Millions.

b) The bank has made additional provision for restructured advices categorized as standard assets at 2% instead of 0.25 to 1.00% (depending upon the category of advance.) The impact on account of this is Rs.354.400 Millions.

WEBSITE DETAILS:

OVERVIEW

Subject was constituted as Hyderabad State Bank on 8.8.1941 under Hyderabad State Bank Act, 1941. The Bank started with the unique distinction of being the central bank of the erstwhile State of Hyderabad, covering present-day Telangana region of Andhra Pradesh, Hyderabad-Karnataka of Karnataka and Marathwada of Maharashtra, to manage its currency – Osmania Sikka and public debt apart from the functions of commercial banking. The first branch of the Bank was opened at Gunfoundry, Hyderabad on 5th April, 1942.

In 1953, the Bank took over the assets and liabilities of the Hyderabad Mercantile Bank Limited. In the same year, the Bank started conducting Government and Treasury business as agent of Reserve Bank of India. In 1956, the Bank was taken over by Reserve Bank of India as its first subsidiary and its name was changed from Hyderabad State Bank to State Bank of Hyderabad. The Bank became a subsidiary of the State Bank of India on the 1st October 1959 and is now the largest Associate Bank of State Bank of India.

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.53.46
UK Pound	1	Rs.86.27
Euro	1	Rs.69.40

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		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.