|
Report Date : |
06.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
THE RATNAKAR BANK LIMITED |
|
|
|
|
Registered
Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
14.06.1943 |
|
|
|
|
Com. Reg. No.: |
11-007308 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 2529.247 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65191PN1943PLC007308 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
KLPT01764A/ MUMT09278D/ KLPT01905B/ KLPT01845E/ KLPT01800B/
KLPT01797F/ KLPT01864C/ KLPT081858D/ PNET08057A/ PNET07964F/ MUMT09900C/ PNET03925F/
KLPT01783F/ MUMT03234A/ KLPT01940B/ KLPT01924G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCT3335M |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Banking Activities. |
|
|
|
|
No. of Employees
: |
1859 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (70) |
|
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 : |
USD 64270000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a scheduled commercial bank. It is a well established bank
having fine track record. The rating is supported by the bank’s long track record, experienced senior
management team, strong regulatory capitalization level and the recent
announcement of acquisition of certain portfolio/ businesses of Royal Bank of
Scotland’s Indian branches by Ratnakar Bank. Trade relations are reported to be decent. Business is active.
Payments are reported to be regular and as per commitment. The bank can be considered good for any 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.
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says the
latest India Development Update report released by the World Bank. The report
says that the adverse effects of rupee depreciation are likely to be offset by
the gains in the exports performance due to improved external competitiveness.
Since May this year, the local currency has depreciated substantially and fell
to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fixed deposit programme: “MAA-” |
|
Rating Explanation |
High degree of safety and low credit risk. |
|
Date |
August, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Certificate of deposit programme: “A1+” |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
August, 2013 |
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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-231-2653006)
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-231-2656831/ 2653006 |
|
Fax No.: |
91-231-2653658 |
|
E-Mail : |
|
|
Websites : |
|
|
|
|
|
Administrative Office : |
Mahavir, 179/E Ward, Shri Shahu Market Yard, |
|
Tel. No.: |
91-231-2650981 to 984 |
|
Fax No.: |
91-231-2657386 |
|
|
|
|
Controllling Office : |
One India Bulls Center, Tower 2, 6th Floor, 841, Senapati
Bapat Marg, Lower Parel (West), Mumbai – 400013, |
|
Tel. No.: |
91-22-43020600 |
|
Fax No.: |
91-22-43020520 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Subhash Kutte |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Vishwavir Ahuja |
|
Designation : |
Managing Director & CEO |
|
|
|
|
Name : |
Mr. Bahubali Arwade |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Girish Godbole |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jairaj Purandare |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kiran Patil |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Narayan Ramachandran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. Sudhir Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vimal Bhandari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. Sivanandhan |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Ajay Michyari |
|
Designation : |
RBI - Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajeev Ahuja |
|
Designation : |
Head - Strategy |
|
|
|
|
Name : |
Mr. Nitin Chopra |
|
Designation : |
Head - Retail and Consumer Banking |
|
|
|
|
Name : |
Mr. R. Gurumurthy |
|
Designation : |
Head - Corporate and Institutional Banking |
|
|
|
|
Name : |
Mr. Sunil Gulati |
|
Designation : |
Chief Risk Officer |
|
|
|
|
Name : |
Mrs. Shanta Vallury |
|
Designation : |
Head - Distribution |
|
|
|
|
Name : |
Mr. Suhas Sahakari |
|
Designation : |
Head - Kolhapur Region |
|
|
|
|
Name : |
Mr. Sandeep Thapliyal |
|
Designation : |
Head - Commercial Banking |
|
|
|
|
Name : |
Mr. Andrew Gracias |
|
Designation : |
Head - Financial Markets |
|
|
|
|
Name : |
Mr. Surinder Chawla |
|
Designation : |
Head - Branch Banking |
|
|
|
|
Name : |
Mr. Aseem Gandhi |
|
Designation : |
Head - Development Banking and Financial Inclusion |
|
|
|
|
Name : |
Mr. Manoj Rawat |
|
Designation : |
Head - Agri Business |
|
|
|
|
Name : |
Mr. Naresh Karia |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Tajinder Kumar |
|
Designation : |
Head - Human Resources |
|
|
|
|
Name : |
Mr. Joginder Singh Rana |
|
Designation : |
Chief Operations Officer |
|
|
|
|
Name : |
Mr. Sanjay Sharma |
|
Designation : |
Head - Technology, Innovation and Customer Fulfilment |
|
|
|
|
Name : |
Mr. Satish Dhawan |
|
Designation : |
Chief Infrastructure and Administration Officer |
|
|
|
|
Name : |
Mr. Sanjit Chowdhry |
|
Designation : |
Head - Wholesale Credit Risk |
|
|
|
|
Name : |
Mr. Bhaskar Niyogi |
|
Designation : |
Senior Consultant - Risk |
|
|
|
|
Name : |
Mr. Rajendra Patil |
|
Designation : |
Senior Vice President - Legal and Secretarial |
BUSINESS DETAILS
|
Line of Business : |
Banking Activities. |
GENERAL INFORMATION
|
No. of Employees : |
1859 (Approximately) |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
Reserve Bank of |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400000000 |
Ordinary Shares |
Rs.10/- each |
Rs. 4000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
252924711 |
Equity Shares |
Rs.10/- each |
Rs. 2529.247
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
CAPITAL AND
LIABILITIES |
|
|
|
|
1] Capital |
2529.247 |
2149.474 |
2149.474 |
|
2] Reserves & Surplus |
13538.214 |
9282.471 |
8700.321 |
|
3] Deposits |
83405.186 |
47393.299 |
20421.568 |
|
4] Borrowings |
27373.491 |
11985.517 |
76.917 |
|
5] Other Liabilities and Provision |
2787.483 |
1242.489 |
948.595 |
|
|
|
|
|
|
TOTAL |
129633.621 |
72053.250 |
32296.875 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Cash and Balances With Reserve Bank of |
2908.405 |
2633.028 |
1641.733 |
|
Balances With Banks and Money at Call and Short Notice |
3977.427 |
3228.160 |
1860.114 |
|
Investment |
55714.205 |
23338.347 |
8924.836 |
|
Advances |
63762.120 |
41322.694 |
19051.673 |
|
Fixed Assets |
942.624 |
588.951 |
433.978 |
|
Other Assets |
2328.840 |
942.070 |
384.541 |
|
|
|
|
|
|
TOTAL |
129633.621 |
72053.250 |
32296.875 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
INCOME |
|
|
|
|
|
|
|
Interest Earned |
8793.209 |
4650.835 |
1891.882 |
|
|
|
Other Income |
1264.381 |
671.327 |
185.794 |
|
|
|
TOTAL (A) |
10057.590 |
5322.162 |
2077.676 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Interest Expanded |
6217.734 |
2782.912 |
940.324 |
|
|
|
Operating Expenses |
2272.961 |
1390.967 |
944.775 |
|
|
|
Provision and Contingencies |
642.207 |
490.990 |
69.314 |
|
|
|
TOTAL (B) |
9132.902 |
4664.869 |
1954.413 |
|
|
|
|
|
|
|
|
Less |
NET
PROFIT/(LOSS) FOR THE YEAR |
924.688 |
657.293 |
123.263 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
0.589 |
3.987 |
2.206 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Statutory Reserve |
240.000 |
165.000 |
31.000 |
|
|
|
Transfer to Capital Reserve |
20.436 |
14.409 |
0.000 |
|
|
|
Transfer to Revenue and Other Reserves |
485.000 |
405.000 |
35.000 |
|
|
|
Transfer to Investment Reserve |
0.000 |
1.503 |
5.353 |
|
|
|
Proposed Dividend |
151.871 |
64.484 |
42.989 |
|
|
|
Tax on Dividend |
25.791 |
10.295 |
7.140 |
|
|
BALANCE CARRIED
TO THE B/S |
925.277 |
661.280 |
121.482 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
4.19 |
3.06 |
0.96 |
|
|
|
Diluted |
4.16 |
3.04 |
0.95 |
|
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 |
Yes |
|
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 |
Yes |
|
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 |
CURRENT MATURITIES OF
LONG TERM DEBTS: NOT AVAILABLE
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Lodging No:
ITXAL/1223/2013 Filing Date:
29/07.2013 Reg. No.:
ITXA/1568/2013 Reg. Date: 17/08/2013 |
|
Petitioner: THE COMMISSIONER OF INCOME TAX II, KO Respondent: THE RATNAKAR BANK
LTD. - Petn. Adv. : TEJVEER SINGH (0)
Resp. Adv.: ATUL KARSANDAS JASANI (0) District: KOLHAPUR |
|
Benc DIVISION Status: Pre-Admission
Category:- TAX APPEALS Last Date: 16/12/2013
Stage: Coram: ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
|
Act: Income Tax Act, 1961
UNDER SECTION: 260A |
FINANCIAL PERFORMANCE
The Bank posted a net total income of Rs. 3839.900 Millions and net profit of Rs. 924.700 Millions for FY13, as against a net total income of Rs. 2539.300 Millions and net profit of Rs. 657.300 Millions for FY12.
AWARDS
The success of the Bank’s transformation journey is now being acknowledged by external constituencies. The Bank has been rated as India’s Best Bank (Growth) and ranked 5th overall in the Mid–sized segment in the 2012 Business Today-KPMG study. The Bank has also won the prestigious Asian Banker Technology Implementation Award for Best Core Banking Project in India for 2012.
PROSPECTS
Despite the headwinds faced by the economy and the banking industry, the Directors expect a sustained level of growth of business of the Bank in the coming year, while it continues with various transformation initiatives through the year.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC OVERVIEW
GLOBAL ECONOMIC
OUTLOOK
Global growth turned weaker in FY12. It is expected to stay sluggish in FY13, as advanced economies (AEs) are moving towards fiscal adjustments to drive growth. This, in turn, is likely to delay cyclical recovery in emerging markets and developing economies (EMDEs). In its World Economic Outlook, the International Monetary Fund (IMF) has forecast global growth to stay sluggish at 3.3% in FY13, before improving to 4.0% in FY14. While downside tail risks have reduced in early 2013 because of the supportive policy actions in the Eurozone and the measures to tackle the US fiscal cliff, risks to global recovery increased consequent to China’s economic slowdown.
INDIAN ECONOMIC
OUTLOOK
On the domestic front, growth rates slowed down much more than anticipated, with both manufacturing and services activities hamstrung by supply bottlenecks and sluggish external demand. Most lead indicators suggest a slow recovery through FY14. Inflation eased significantly in the fourth quarter of FY13. However, upside pressures remain, both at wholesale and retail levels, stemming from elevated food inflation and ongoing administered fuel price revisions. The main risks emanate from the still high twin deficits. These are accentuated by the vulnerability to a sudden stop and reversal of capital flows. Moreover, inhibited investment sentiment and tightening supply constraints, particularly in the food and infrastructure sectors also add to the concerns.
Further, local headwinds, such as firm inflation, rising interest rates and policy impediments to investment only exacerbated the impact of a shaky global environment on domestic growth. Hence, Gross Domestic Product (GDP) growth decreased to 5% in FY13 from 6.2% a year ago and 9.3% in FY11. There were some course corrections through policy responses, both from the government and the RBI. However, their impact may be visible only with a lag. In particular, the government has embraced a path of fiscal consolidation. It kept the fiscal deficit target for FY13 below the initial level of 5.1% of GDP. The fiscal deficit is likely to drift lower to 4.8% of GDP in FY14.
During FY14, economic activity is expected to show only a modest improvement over the last year, with a pick-up anticipated only in the second half of the year. Conditional upon a normal monsoon, agricultural growth could return to trend levels.
Such factors are likely to further impact the credit environment adversely. All banks, including us, require a cautious approach to growth and customer selection. This environment will require the Bank to focus on cost containment and factors that enhance productivity to remain competitive.
BANKING SECTOR
OVERVIEW
The commercial banks, not including regional rural banks, had approximately Rs. 64.5 lakh crore of deposits and approximately Rs. 50.8 lakh crore of loans and advances. Aggregate deposits for all scheduled commercial banks had registered an annual growth rate of 14.9% while the loans and advances for all scheduled commercial banks had increased by 18.1%. The credit deposit ratio for all scheduled commercial banks stood at 78.1% (Source: Report on Trend and Progress of Banking in India 2011-12).
According to information available from RBI’s Weekly Statistical Supplement, scheduled commercial banks had approximately Rs. 70.9 lakh crore of deposits and proximately Rs. 54.2 lakh crore of loans and advances as of June 28, 2013, registering a year-on-year growth of 13.8% and 13.7% respectively. The creditdeposit ratio stood at 76.4 as of on June 28, 2013.
OPERATIONAL REVIEW
BANK’S OPERATIONS
Taking forward the transformation exercise that the Bank embarked on in 2010, it has made significant progress in terms of building the organizational capabilities to deliver a ‘New Age’ Bank to its customers, employees and other stakeholders. The Bank has a well-defined business strategy, highquality talent and customer segment focused product offerings with enhanced credit processes bringing in operational controls and a significant automation of its processes. During the year, the Bank covered significant distance in the transformation journey and made progress in various areas of operations. Some of the areas where considerable work has happened during the year.
BUSINESS FOCUS
The Bank has made significant progress on the business front by adopting and offering specialized services in the Corporate and Institutional Banking, Commercial Banking, Retail, Agriculture, Financial Inclusion and Financial Markets verticals. Yet, it has retained a branch-centric business and delivery model. The Bank has further resourced these verticals with the right talent to significantly grow the business.
BRANDING
During the year, the Bank developed new branding guidelines, upgrading the presentation of the brand in the branches, signages as well as branch marketing material. The upgraded branding makes the Bank’s brand standout in the midst of competition. This has been implemented in new branches and incrementally across the older branches of the Bank as well.
FINANCIAL OVERVIEW
During FY13, the Bank continued to focus on resource diversification, advances growth, new client acquisition, Current and Savings Account deposit (CASA) mobilisation and credit recoveries. Besides, it is also focusing on customer centricity and implementing various important technology initiatives.
The Bank is focussing on increasing business across its branches to enhance productivity. The Bank has progressed substantially on all parameters of this strategy, improving funding profile, asset quality and profitability over the last one year.
The Bank’s all-round performance in these areas have resulted in increase in revenues as well as profitability.
CONTINGENT
LIABILITIES:
|
Particular |
31.03.2013 (Rs. In
Millions) |
31.03.2012 (Rs. In
Millions) |
|
1. Claims against the Bank not acknowledged as debts |
5.455 |
5.455 |
|
2. Liability for Partly Paid Investment |
21.358 |
42.345 |
|
3. Liability on Account of Outstanding forward Exchange contracts |
42774.773 |
102.942 |
|
4. Guarantees given on behalf of constituents |
|
|
|
(i) In India |
6391.823 |
3684.689 |
|
(ii) Outside India |
9958.060 |
11.988 |
|
5. Acceptances, Endorsements and other Obligations |
2851.552 |
699.937 |
|
6. Other items for which the Bank is contingently liable |
|
|
|
a) Income tax and other matters (under appeal) |
78.140 |
74.854 |
|
b) Others |
1400.520 |
1126.823 |
|
Total |
63481.680 |
5749.033 |
PRESS RELEASE
RATNAKAR BANK ACQUIRES THE ROYAL BANK OF SCOTLAND’S (RBS’S) BUSINESS
BANKING, CREDIT CARDS AND MORTGAGE BUSINESSES IN INDIA
- In line with Ratnakar Bank’s overall expansion strategy
- Businesses are complementary to Ratnakar Bank’s existing range of products and services
- Over 1.2 Lakh customers across current account rich Business Banking, Credit Card and Mortgage businesses form part of this purchase
- Employees of RBS associated with these businesses are proposed to be absorbed by Ratnakar Bank
Mumbai, 09-08-2013: Ratnakar Bank Limited, one of India’s fast growing private sector banks, today announced that that it has agreed to acquire RBS’s Business Banking business, Credit Cards business and Mortgage portfolio in India subject to approvals from Competition Commission of India (CCI).
Ratnakar Bank, which has been undergoing a transformational journey since mid-2010, said that this transaction would complement well with its existing business and would help it add strength in the desired product and customer segments. The transaction is expected to help the Bank create further capabilities in a very short span of time and enhance CASA. Employees of RBS associated with these businesses are proposed to be absorbed by Ratnakar Bank.
For the customers of RBS, Ratnakar Bank will continue to offer all existing services and facilities enjoyed by them currently. RBS customers would also get access to a much larger and expanding branch network along with broader banking capabilities of Ratnakar Bank.
Rajeev Ahuja, Head of Strategy and Markets, Ratnakar Bank said, “We are happy to acquire this business as it fits very well with our growth strategy. Over the last three years the bank has been building scale and this transaction enables us to fast track our growth on multiple counts”. He also went on to say that “RBS had built an extremely high quality business in India which is rich in current accounts and it will be our endeavour to ensure that we not only maintain the existing customer proposition, but also enhance it further. We are also very happy to welcome the talent pool of people from RBS who would join us in this process.”
Derek Nazareth, Head of Retail and Commercial Banking, RBS India said: “We are delighted that we have reached agreement with Ratnakar Bank Ltd. for the sale of our Business Banking business, Credit Card business and Mortgage portfolio. Over the next few weeks we will be writing to all of our clients who are affected, and working closely with Ratnakar Bank to ensure a seamless transition for our customers.”
PricewaterhouseCoopers were the advisors to Ratnakar Bank while Morgan Stanley and RBS M&IB Asia Pacific were the advisors to RBS. Luthra and Luthra Law Offices acted as lead legal counsel to Ratnakar Bank, who also received English law advice from Slaughter and May. AZB and Partners acted as Indian legal counsel and Linklaters LLP as English legal counsel for RBS.
RBS Statement: RBS has signed an agreement to sell its Business Banking business, Credit Card business and Mortgage portfolio in India to Ratnakar Bank Ltd. subject to approval from the Competition Commission of India (CCI). This is in line with our plans for Retail and Commercial Banking that we announced in November 2012. The deal comprises of over 1.2 lakh customers. RBS is fully committed to support impacted customers through this transition and will be writing to inform on the next steps for them. There is no impact on RBS’s Corporate and Institutional Business (Markets and International Banking) or its Private Banking businesses in India. RBS will continue to offer financing, risk management, wholesale and investment banking, cash, payments, trade finance and a comprehensive range of wealth management solutions to its clients. RBS in India is also a major Business Services hub for the RBS Group.
By the end of 2013, we will maintain a Retail Banking presence in 10 locations across the country namely, Bengaluru, Chennai, Delhi, Gurgaon, Hyderabad, Kolkata, Mumbai, NOIDA, Pune and Vadodara.
About Ratnakar Bank: Ratnakar Bank Limited (RBL) is one of India’s fastest growing scheduled commercial banks with an expanding presence across the country. It has currently grown to 131 branches / 217 ATMs across 11 Indian states and has been rated as "India’s Best Bank (Growth)" in the mid-sized bank segment by Business Today-KPMG study in 2012.
Established in 1943, RBL undertook a transformational journey under a new management team in 2010. It embarked on an aggressive growth plan based on a robust platform of professional governance, relationships, technology infrastructure, high quality capital and geographic expansion.
Today, RBL offers specialized services under the five business verticals namely: Corporate and Institutional Banking, Commercial Banking, Retail Banking, Agri and Development Banking and Financial Markets. The bank currently services more than 5 Lakh customers and has a total business size of over Rs. 14,500 Cr. Over the last
two years, it has infused capital of over Rs. 1,100 Crs from some of the most notable global and domestic
names, taking the TIER 1 capital to Rs. 1600 Crs (approx).
The Royal Bank of Scotland Group (RBS): The RBS Group is a large international banking and financial services company. Headquartered in Edinburgh, the Group operates in the United Kingdom, Europe, the Middle East, the Americas and Asia, serving over 30 million customers worldwide. The Group provides a wide range of products and services to personal, commercial and large corporate and institutional customers through its two principal subsidiaries, The Royal Bank of Scotland and NatWest, as well as through a number of other wellknown brands including Citizens, Charter One, Ulster Bank, Coutts, Direct Line.
RBS in India: RBS has been in India since 1921, and today is the third largest employment centre of RBS Group globally. RBS’s wholesale banking division, Markets and International Banking, holds market leading positions across international debt financing, transaction services and risk management, while its private banking arm of the bank has also been growing consistently. RBS is among the top five players in the international bonds league table for India with landmark deals and is top among the foreign banks in the INR loan syndication market. The bank is also among the top three players in interest rates derivatives and top five in Forex in India. RBS is also the fourth largest foreign transaction bank in India, supporting our multinational client base through solutions which leverage state-of-the-art technology, global product expertise and global network. In Asia Pacific, RBS will maintain leading positions in debt financing, risk management and transaction service in the 11 countries where we currently operate. RBS Private Banking India has four offices in Mumbai, New Delhi, Bengaluru and Chennai, providing clients wealth management solution covering virtually every aspect of their financial needs.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No 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.61.69 |
|
|
1 |
Rs.101.08 |
|
Euro |
1 |
Rs.84.07 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
70 |
720
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 |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.