MIRA
INFORM REPORT
|
Report Date : |
18.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
BANK OF INDIA |
|
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Registered Office
: |
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|
Country : |
India |
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|
Financials (as
on) : |
31.03.2013 |
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|
Date of
Incorporation : |
07.09.1906 |
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Com. Reg. No.: |
11-000243 |
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Capital Investment
/ Paid-up Capital : |
Rs. 5966.414 Millions |
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|
CIN No.: [Company Identification
No.] |
U99999MH1906PLC000243 |
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|
Legal Form : |
A Public Sector
Commercial Bank. The Bank's Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Banking and
Financial Services. |
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|
No. of Employees
: |
42146 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (81) |
|
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 956700000 |
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|
|
|
Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is an old and well-established bank having an excellent track
record. The Government of India holds 64.11% stake in the bank. The financial position of the company is sound and healthy. Trade
relations are reported as trustworthy. Business is active. Payment terms are
regular and as per commitments. The bank can be considered excellent for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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 |
CARE |
|
Rating |
“AAA” |
|
Rating Explanation |
Highest degree of safety and carry lowest
credit risk. |
|
Date |
14.10.2013 |
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.: 91-22-66684444)
LOCATIONS
|
Registered Office : |
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|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Head/
Corporate Office 1 : |
Star House, C-5,
G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra,
India |
|
Tel. No.: |
91-22-66685616/ 66684450/ 66684444 |
|
Fax No.: |
91-22-66684503/ 66684789 |
|
E – Mail : |
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|
Website : |
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Corporate Office 2 : |
14th |
|
Tel. No.: |
91-22-22023020 (36 lines) |
|
Fax No.: |
91-22-22024701/ 56684558/ 22824212 |
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E-Mail : |
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Website : |
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Zonal / Branch
Offices : |
Located at : v Agra v Ahmedabad v Amritsar v Karnataka v Bhagalpur v Bhopal v Bhubaneshwar v Bokaro v Chandigarh v Chennai v Coimbatore v Dhanbad v Gandhinagar v Ghaziabad v Guwahati Zone v Hazaribagh v Howrah v Hyderabad v Indore v Rajasthan v Jamshedpur v Kanpur v Keonjhar v Khandwa v Kolhapur v Kolkata v Lucknow v Ludhiana v Mumbai Large Corporate Banking v Mumbai North v Mumbai South v Muzaffarpur v Nagpur-I v Nagpur-II v Navi Mumbai v Raigad v New Delhi v Goa v Patna v Pune v Raipur v Rajkot v Ranchi v Ratnagiri v Solapur v Ujjain v Vadodara v Varanasi v Visakhapatnam v Kerala v Siliguri |
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Overseas Offices
: |
Located at : v New Zealand v USA v France v Belgium v Japan v Hong Kong v China v Kenya v Singapore v Combodia v Indonesia v Vietnam v South Africa v UAE |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mrs. V.R. Iyer |
|
Designation : |
Chairperson and Managing Director |
|
|
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|
Name : |
N. Seshadri |
|
Designation : |
Executive Director |
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|
Name : |
M. S. Raghavan |
|
Designation : |
Executive Director |
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|
Name : |
B.P. Sharma |
|
Designation : |
Executive Director |
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|
|
Name : |
Umesh Kumar |
|
Designation : |
Director |
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|
Name : |
P.R. Ravi Mohan |
|
Designation : |
Director |
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|
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|
Name : |
K. K. Nair |
|
Designation : |
Director |
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|
Name : |
Mr. Neeraj Bhatia |
|
Designation : |
Director |
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|
Name : |
Mr. Harvinder Singh |
|
Designation : |
Director |
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|
|
Name : |
P. M. Sirajuddin |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Umesh Kumar Khaitan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Pramod Bhasin |
|
Designation : |
Director |
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|
|
|
Name : |
A. M. Pereira |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sinha |
|
Designation : |
International Department |
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|
|
|
General Managers : |
v
Vivekananda Das (CVO) v
A.P. Ghugal v
N.C. Khulbe v
S.K. Datta v
Munir Alam v
R.N. Tayal v
R. Ravichandran v
S.C. Arora v
P.S. Rawat v
Rakesh Sethi v
Gauri Shankar v
B.B. Joshi v
Prem Kumar v
P.K. Bajaj v
R.A. Sankara Narayanan v
R.K. Verma v
Pushpinder Singh v
Rajiv Saxena v
Debashish Chakraborty v
S. Narasimhan v
Charan Singh v
P.K. Patnaik v
Anil Kumar Verma v
A.B. Rane v
B.L. Salian v
R.N. Kar v
Arihant Kumar Jain v
Ramesh Chandra Baliar Singh v
G.B. Kakade v
Vikas Pande v
Rabindra Mohan Prasad v
M.B. Dhodia v
Anil Kumar Bhalla v M.D. Vernekar |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
382006827 |
64.11 |
|
|
382006827 |
64.11 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
382006827 |
64.11 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2135786 |
0.36 |
|
|
1448943 |
0.24 |
|
|
87794362 |
14.73 |
|
|
78495433 |
13.17 |
|
|
169874524 |
28.51 |
|
|
|
|
|
|
5774544 |
0.97 |
|
|
|
|
|
|
33679162 |
5.65 |
|
|
2050726 |
0.34 |
|
|
2516544 |
0.42 |
|
|
160200 |
0.03 |
|
|
2356344 |
0.40 |
|
|
44020976 |
7.39 |
|
Total Public shareholding (B) |
213895500 |
35.89 |
|
Total (A)+(B) |
595902327 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
595902327 |
100.00 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category Promoter and Promoter Group
|
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % |
|
|
|
|
|
|
President of India |
38,20,06,827 |
64.11 |
|
Total |
38,20,06,827 |
64.11 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category Public and holding more than 1% of the total number of
shares
|
Name of the
Shareholder |
No. of Shares held |
Shares as % |
|
|
Life Insurance Corporation of India |
75488026 |
12.67 |
|
|
Lazard Asset Management LLC A/c Lazard |
23325889 |
3.91 |
|
|
Total |
98813915 |
16.58 |
|
Shareholding of securities
(including shares, warrants, convertible securities) of persons (together with
PAC) belonging to the category “Public” and holding more than 5% of the total
number of shares of the company
|
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % |
|
|
Life Insurance Corporation of India |
75488026 |
12.67 |
|
|
Total |
75488026 |
12.67 |
|
Details of Locked-in
Shares
|
Name of the
Shareholder |
No. of Shares |
Locked-in Shares as % |
|
President of India |
4,34,26,827 |
7.29 |
|
Total |
4,34,26,827 |
7.29 |
BUSINESS DETAILS
|
Line of Business : |
Banking and
Financial Services. |
GENERAL INFORMATION
|
No. of Employees : |
42146 (Approximately) |
|
|
|
|
Bankers : |
Reserve Bank of |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
v
Chaturvedi and Shah Chartered Accountants v
Karnavat and Company Chartered Accountants v
Sankaran and Krishnan Chartered Accountants v
L B Jha and Company Chartered Accountants v
SRB and Associates Chartered Accountants v
Isaac and Suresh Chartered Accountants |
|
|
|
|
Joint Venture : |
Star Union Dai–Ichi Life Insurance Company Limited |
|
|
|
|
Subsidiaries : |
·
BOI
Shareholding Limited PT Bank of India Indonesia
Tbk (Formerly known as PT Bank Swadeshi) Bank of India (Tanzania)
Limited Bank of India (New
Zealand) Limited Bank of India (Uganda)
Limited BOI AXA Investment
Managers Private Limited BOI AXA Trustee Services
Private Limited |
|
|
|
|
Associates : |
v
STCI
Finance Limited. v
ASREC (India)
Limited v
Indo-Zambia
Bank Limited v
4 Regional
Rural Banks sponsored by the Bank: Aryavart Kshetriya Gramin Bank (Formerly
Known as Aryavart Gramin Bank) Jharkhand Gramin Bank Narmada Jhabua Gramin Bank; (Formerly Known
as Narmada Malwa Gramin Bank) Vidharbha Konkan Gramin Bank; (Formerly
known as Wainganga Krishna Gramin Bank |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000000 |
Equity Shares |
Rs.10/- each |
Rs. 30000.000 Millions |
|
|
|
|
|
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
597079427 |
Equity Shares |
Rs.10/- each |
Rs. 5970.794 Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
595902327 |
Equity Shares |
Rs.10/- each |
Rs. 5959.023 Millions |
|
|
Add: Amount of shares forfeited |
|
Rs. 7.391 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 5966.414
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
& LIABILITIES
|
|
|
|
|
Capital |
5966.414 |
5745.195 |
5472.195 |
|
Reserves & Surplus |
233215.148 |
203872.653 |
167434.602 |
|
Deposits |
3818395.859 |
3182160.332 |
2988858.063 |
|
Borrowings |
353675.848 |
321142.250 |
220213.756 |
|
Other Liabilities & Provisions |
114773.914 |
132434.284 |
129746.875 |
|
|
|
|
|
GRAND TOTAL
|
4526027.183 |
3845354.714 |
3511725.491 |
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash & Balances with Reserve Bank of |
219670.365 |
149867.100 |
217824.332 |
|
Balances with Banks & Money at Call
& Short Notices |
328688.229 |
197245.445 |
155275.558 |
|
Investments |
946134.318 |
867535.861 |
858724.176 |
|
Advances |
2893674.972 |
2488333.442 |
2130961.817 |
|
Fixed Assets |
28701.254 |
27715.922 |
24807.363 |
|
Other Assets |
109158.045 |
114656.944 |
124132.245 |
|
|
|
|
|
GRAND
TOTAL
|
4526027.183 |
3845354.714 |
3511725.491 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
|
|
INCOME |
|
|
|
|
|
Interest Earned |
319089.290 |
284806.664 |
217517.238 |
|
|
Other Income |
37660.431 |
33211.732 |
26417.749 |
|
|
TOTAL |
356749.721 |
318018.396 |
243934.987 |
|
|
|
|
|
|
|
|
EXPENDITURE |
|
|
|
|
|
Interest expended |
228849.298 |
201672.330 |
139410.323 |
|
|
Operating Expenses |
53315.467 |
49406.581 |
50682.387 |
|
|
Provisions & Contingencies |
47091.490 |
40164.330 |
28955.213 |
|
|
TOTAL |
329256.255 |
291243.241 |
219047.923 |
|
|
|
|
|
|
|
|
PROFIT |
|
|
|
|
|
Net Profit for the year |
27493.466 |
26775.155 |
24887.064 |
|
|
Profit brought forward |
-- |
-- |
0.000 |
|
|
TOTAL |
27493.466 |
26775.155 |
24887.064 |
|
|
|
|
|
|
|
|
APPROPRIATION |
|
|
|
|
|
Transfer to statutory reserve |
6873.367 |
6693.789 |
6250.000 |
|
|
Transfer to revenue reserve |
10335.542 |
12852.324 |
12158.730 |
|
|
Transfer to capital reserve |
317.318 |
101.223 |
49.817 |
|
|
Transfer from/ to special reserve -
Currency swap |
(3.654) |
(31.941) |
(14.437) |
|
|
Final dividend (including dividend tax) |
6970.893 |
4659.760 |
4442.954 |
|
|
Special reserve u/s Sec 36(1) (viii) of
income tax act, 1961 |
3000.000 |
2500.000 |
2000.000 |
|
|
Total |
27493.466 |
26775.155 |
24887.064 |
|
|
|
|
|
|
|
|
Earnings Per Share (Rs.) |
47.79 |
48.98 |
47.35 |
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 |
Yes |
|
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 |
Yes |
|
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 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
90374045 |
10/11/1956 |
12,400.00 |
SUBSCRIBER OF TEH CHITTY |
THALAVARIOLA, THALAVARIOLA, TAMIL NADU, INDIA |
- |
|
2 |
90374044 |
15/03/1956 |
16,650.00 |
SUBSCRIBER OF TEH CHITTY |
THALAVARIOLA, THALAVARIOLA, TAMIL NADU, INDIA |
- |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Lodging No:
ITXAL Filing Date: 01/01/2013 Reg. No.: ITXA/555/2013 Reg. Date: 18/03/2013 |
|
Petitioner: THE COMMISSIONER OF INCOME TAX-2 Respondent: M/S. BANK OF
INDIA Petn. Adv : SURESH KUMAR (0)
Resp. Adv.: Sanjiv M. Shah District: MUMBAI |
|
Bench: DIVISION Status: Admitted (Unready)
Category: TAX APPEALS Last Date: 28.02.2013
Stage: FOR DIRECTION Last Coram: HON’BLE SHRI JUSTICE J.P. DEVADHAR HON’BLE SHRI JUSTICE M.S. SANKLECHA |
|
Act: income Tax Act, 1961 UNDER SECTION: 260 A |
PERFORMANCE
HIGHLIGHTS
FINANCIAL PARAMETERS
·
Operating profit
Rs. 74590.000 Millions.
·
Net Profit
Rs.27490.000 Millions, recording 2.67% growth over previous year.
·
Net Interest Margin
(NIM) as on 31.03.2013 is 2.46%.
·
Capital Adequacy
Ratio at 11.02% as against 10% prescribed by Reserve Bank of India.
·
Net Worth at
Rs.216210.000 Millions grew by 15.26% over March 2012.
·
Book Value per
share Rs. 362.37 (Rs. 326.52 previous year)
·
Gross NPA ratio at
2.99%.
·
Net NPA ratio at 2.06%.
·
Total business
(Deposit + Gross Advances) reached at Rs.6748080.000 Millions recording a
growth of Rs.1050980.000 Millions (18.45%). Domestic business grew by 16.81% to
reach the level of Rs. 4981030.000 Millions.
·
Total deposits
increased by Rs.636240.000 Millions reached the level of Rs.3818400.000
Millions, a growth of 19.99%. Domestic deposits increased by 18.35% to reach
the level of Rs. 2940670.000 Millions. Share of low cost deposits in the
domestic deposits is 32.79%.
·
Gross credit
touched Rs.2929680.000 Millions, recording a growth of 16.49% with domestic
credit recording a growth of 14.66% to reach level of Rs.2040360.000 Millions.
·
Priority Sector
lending constituted 37.83% of Net Adjusted Bank Credit and the share of
Agricultural Credit to Adjusted Net Bank Credit was 15.47%.
·
Credit to MSME
sector grew from Rs. 302320.000 Millions to Rs.372300.000 Millions recording a
growth of 23.14%.
·
Schematic Retail
Credit grew by 19.25% from Rs.146770.000 Millions to Rs.175020.000 Millions.
·
Export Credit stood
at Rs.95310.000 Millions registered a growth of Rs.12080.000 Millions, i.e.,
14.51% growth over previous year.
·
Return on Assets
(ROA) is 0.65%.
·
Return on Equity
(ROE) is 13.62%.
NEW PRODUCTS AND
SERVICES
·
Welcome Kits
introduced for NRI Customers opening NRE/NRO accounts at foreign centers.
·
As per Finance
Ministry guidelines and recommendations, the Bank’s corporate web-site
(English) has been enabled for persons with Disabilities.
·
The Bank has
introduced a new format of Savings Bank Passbook (Horizontal Format) which will
print all details of the transaction on the same page as against the existing
format (Vertical Format) where the details are printed on two pages.
·
New facilities
introduced for BOI Net Banking user. Fixed Deposit scheme- Star Sunidhi Tax
saving with nomination facility introduced. The BOI PPF account holders can now
make online deposit.
·
Self-operating SB
pass book printing kiosk has been introduced.
·
As per Banking
Codes and Standards Board of India (BCSBI) requirements, the Bank is printing
help line number on the passbook and statement of accounts.
·
Quarterly
consolidated Statement of a/c is sent to the Diamond customers in PDF format
via email.
·
As a fraud
prevention measure, SMS alerts – Star Sandesh are generated and provided to all customers who have registered their
mobile number with the Bank for all Debit transactions from delivery channels
(Internet banking/ATM/POS); all Debit clearing transactions of Rs.0.025 Million
and above; all Customer induced debit transfer and cash payments of Rs.0.010
Million and above; all Debit ECS transactions of Rs.0.010 Million and above;
all Debit RTGS transactions and acknowledgment on accepting the cheque book
issue request. Hot Listing/Reset/Unblock/Change of Debit Cum ATM card PIN using
Internet Banking password.
·
Viewing of Annual
Tax Statement (Form 26AS).
·
Star eTrade –
Online share trading – Integration with Gupta Equities.
·
Extended the
facility of online e-Payment to the customers holding Bank’s Debit-cum-ATM
card. This will enable the customers to use their Debit-cum-ATM cards for
e-payments in addition to credit card Internet banking account.
·
Mobile Banking
facility is introduced as the latest alternate delivery channel which allows
customers to do banking activities virtually from the convenience of the Mobile
phone at any time and from anywhere. This facility is extended to all Retail
internet banking customers and includes features like Balance enquiry, last
five transactions, Cheque status, Funds Transfer and Mobile Payments.
·
Online Interbank
Fund Transfer across banks, through Star Connect Internet Banking Services,
using RTGS / NEFT.
·
BOI Star e-Pay for
Auto-pay or on-line payment of various utility services / bills.
·
e-Payment for
Direct and Indirect, Central Excise and Service Tax.
·
Star e-Share Trade
to trade in shares.
·
e-Freight Payment.
·
Online Payment of
Directorate General of Foreign Trade (DGFT) license fees.
·
Online Booking of
Railway and Airlines Ticket.
·
Online Application
for Education loan.
·
Provision to make online
bid-cum-application for Application Supported by Blocked Amount (ASBA) IPO
issues by Retail Internet Banking Customers having account with any DPO.
·
BOI-BTM (Banking
through Mobile launched).
·
DHAN-AADHAR CARD
Launched with micro ATM and Biometric pin authentication facility.
·
Introduction of
Personal Accident Insurance Cover for all No Frill account holders.
·
Bank has launched
BOI Star Pension Aadhar Card, BOI Privilege International Credit and Debit
Cards and RuPayCard as alternate delivery channels.
·
For International
Travellers BOI Star International Travel Card in US Currency with Visa
Affiliation has been introduced.
BUSINESS
INITIATIVES
·
Presently 52 Rural Processing
Centres are operational across 33 zones.
·
Product Innovation
Cells are planned to be opened to explore new territories for penetration in
agricultural business.
·
All RRBs of the
Bank have migrated to Core Banking Solution and are RTGS / NEFT enabled.
·
Cash and Fidelity
Insurance has been introduced for business correspondent channel.
·
21 Retail Business
Centres are operational for quick delivery of Credit.
·
Bank has introduced
Star Vidhya Education Loan, BOI Star Loan against Property and Star Diamond
Home Loan Schemes.
·
A total of 100
SME City Centres are functioning in 50 zones. These centres have been
instrumental in reduced Turn Around Time(TAT) for credit delivery.
·
The 42
Mid-Corporate branches are monitored by Seven Divisional Managers across 51
zones.
·
Bank has introduced
Diamond / Platinum / Gold Customer concept for encouraging SME customers with
good track record.
·
Bank has launched
Composite Loan Product and Demand / Term Loan Products for Medium and Small
Enterprises. For SME Entrepreneurs, Star SME Contractor Credit Line, Star SME
Liquid Plus, Star SME Auto Express and Star SME Education Plus Loans Schemes
have been introduced.
·
The 10 Large
Corporate branches are directly monitored by the General Manager from Head
Office.
·
Lead Management
System (Sales Force Automation), to generate, track and monitor leads, is
stabilized and functioning satisfactorily.
·
A scheme for
extending financial assistance at concessional rate of 4% to selected low
income groups for productive endeavours under the Differential Rate of Interest
(DRI) Scheme is being implemented by the Bank. The Bank has extended financial
assistance to 18806 beneficiaries during the year.
·
The Bank has been
actively involved in implementation of the Golden Jubilee Rural Housing
Finance Scheme (GJRHFS) and has
achieved the target allocated by National Housing Bank for the year. During the
year, Bank has sanctioned 15302 cases under GJRHFS.
·
The Bank is very
active in implementing Financial Inclusion extending all banking
products and services to all who are currently deprived of these services. So far,
the first step towards achievement of Financial Inclusion was opening of
No-Frill Accounts and accordingly, the Bank has opened 79.83 lakh No- Frill
Accounts during FY 2012-13.
·
The Bank is also
implementing IT solutions on end to end basis using hand held devices and smart
cards. The Bank has issued 11.87 lakh smart cards.
·
Project Finance And
Syndications Group: It takes up
assignments of technical appraisal, underwriting and syndication of loans.
During FY 12-13 financial closures were amounting to project cost of Rs.
140180.000 Millions and syndicated debt of Rs. 69050.000 Millions.
·
Mobile Banking
facility is introduced as the latest alternate delivery channel which allows
customers to do banking activities virtually from the convenience of the Mobile
phone at any time and from anywhere. This facility is extended to all Retail
internet banking customers and includes features like Balance enquiry, last
five transactions, Cheque status, Funds Transfer and Mobile Payments.
·
Established Global
Remittance Centre for centralizing some of the activities related to NRI
Customers which would hasten turnaround time and product delivery and also
enable proactive marketing strategies and grievance redressal mechanism.
AWARDS AND
ACCOLADES
·
The Bank has been
awarded as “The Best Bank for excellence in AADHAR related UIDAI programme of
Government of India at the hands of Prime Minister at DODU village near Jaipur
in Rajasthan”
·
The Bank has been
awarded the ‘Outlook Money Award 2012’ for “Best Education Loan” provider.
·
Bank has been
declared ET’s 2nd Most Trusted Brand in India.
·
The Bank has been
conferred with National Award-2011 for implementing PMEGP scheme in West Zone.
·
The Bank has been
adjudged Second Rank by Ministry of MSME, New Delhi based on its performance in
lending to Micro Enterprises.
·
Bank of India
received the Winners Award in International Banking Technology Award 2010 from
IBA in the best Business Enablement Initiative category.
FINANCIAL REVIEW
FINANCIAL
PERFORMANCE
The Bank recorded an Operating Profit of Rs. 74580.000
Millions, (previous year Rs. 66940.000
Millions). Net Profit stood at Rs.27490.000 Millions
(previous year Rs.26780.000 Millions).
Net interest income grew by 8.55% due to rise in volume of business mix
by 18.45% (from Rs. 5697100.000 Millions to Rs.6748070.000 Millions). Non-interest income increased by 13.37% and
covered 70.64% of Operating Expenses as against 67.23% in the previous year.
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL ECONOMIC
SCENARIO:
In the current scenario, emerging market and developing economies are
doing well but in advanced economies, there is a growing bifurcation between
the United States on and the Euro area. This is reflected in the various
forecasts. Growth in emerging market and developing economies was 5.3 percent
in 2013 and estimated to reach 5.7 percent in 2014. Growth in the United States
is expected to be 1.9 percent in 2013 when final data arrives and 3.0 percent
in 2014. In contrast, growth in the Euro area is expected to be –0.3 percent in
2013 and 1.1 percent in 2014.
The forecast for negative growth in the Euro area reflects not only
weakness in the periphery but also some weakness in the core. The process of
devaluation is taking place, and most of these countries are becoming more
competitive. However, external demand is not strong enough to compensate weak
internal demand. In the Euro area, institutional progress has been made over
the past year, in particular on creating a road map for a banking union. The
Outright Monetary Transactions program offered by the European Central Bank has
reduced tail risks. The interest rates facing borrowers in periphery countries
are still too high to secure the recovery and there is need for measures to
strengthen banks.
Emerging market economies face different challenges, one of which is
handling capital flows. Fundamentally attractive prospects in emerging market
economies, together with low interest rates in advanced economies, are likely
to lead to continuing net capital inflows and exchange rate pressures in
emerging market economies. Capital flows can be volatile, making macroeconomic
management more difficult. The challenge for recipient countries is to reduce
the volatility of capital flows when they threaten macro or financial
stability. In short, recent good news about the United States has come with
renewed worries about the euro area, given the strong interconnections between
the two.
OUTLOOK FOR
2013-14
Global prospects have improved again but the road to recovery in the
advanced economies will remain difficult. World output growth was 3¼ percent in
2013 and is estimated to reach 4 percent in 2014. In the major advanced
economies, activity is expected to gradually accelerate, following a weak start
to 2013. Advanced economy policy makers have successfully defused two of the
biggest threats to the global recovery, a breakup of the euro area and a sharp
fiscal contraction in the United States caused by a plunge off the “fiscal
cliff.”
In the short term, risks mainly relate to developments in the Euro area,
including uncertainty about the fallout from events in Cyprus and Italy as well
as vulnerabilities in the periphery. In the medium term, the key risks relate
to insufficient institutional reform and prolonged stagnation in the euro area
as well as high fiscal deficits and debt in the United States and Japan. In
advanced economies, the right macroeconomic approach continues to be gradual
but sustained fiscal adjustment and an accommodative monetary policy aimed at
supporting internal demand. The United States and Japan still need to devise
and implement strong medium-term fiscal consolidation plans. In emerging market
and developing economies, some tightening of policies appears appropriate. This
tightening should begin with monetary policy supported with prudential
measures.
DOMESTIC ECONOMIC
SCENARIO
According to Central Statistical Organization (CSO) Indian economy grew
5.0 per cent in 2012-13. The growth is on the lower side not only as compared
to the recent past but also in the context of growth trends witnessed since
2003-04. The slowdown in the growth of the economy in 2012-13 is mainly on
account of industrial sector which grew 3.1 per cent in 2012-13 as against 3.5
per cent in 2011-12 and a lower growth of 1.8 per cent in agriculture sector.
Services sector grew at the rate of 6.6 per cent in 2012-13, which is also
lower than that achieved in 2011-12. The slowdown in 2011-12 and 2012-13 has
been precipitated by domestic as well as global factors, Domestic factors,
including the tightening of monetary policy resulted in slowing down of
investment and growth, particularly in the industrial sector.
In the domestic front, Inflation did ease in 2012-13 vis-à-vis higher
levels prevailing in 2011-12. However, the pace of decline has been slow,
denying requisite flexibility to the RBI to undertake sufficient reduction in
the policy rates. The Indian economy is expected to register a growth rate of
5.7 per cent in 2013-14 as against 5 per cent in 2012-13. Moreover, with the
reform measures undertaken recently along with expectations of improvement in
the global economic scenario, there is a possibility of revival of growth in
2013-14.
On the fiscal deficit front, Government is committed to a fiscal
consolidation target of 5.3% of GDP. However, the revised estimate pegged the
deficit at 5.2% for FY 2012-13. This was achieved through a reduction in Plan
expenditure and borrowing programme was also lower at Rs.5.59 lakh crore for 2012-13 vis-à-vis the Budget Estimate of Rs.5.75 lakh crore. Government has projected fiscal deficit target for FY
2013-14 at 4.8%.
However, the rising current account deficit is a concern. It was 6.7% of
GDP during the third quarter of 2012-13. Exports are declining at a faster pace
than imports, leading to widening of the deficit. CAD is likely to touch 6% for
FY 2012-13. Declining oil and commodity prices is likely to lower the current
account deficit for the ensuing financial year. Inflation is also likely to
decline further due to subdued oil and commodity prices.
The recent reform measures undertaken by the Government have started to
reverse sentiment. Government undertook long anticipated measures towards
fiscal consolidation by reducing fuel subsidies and selling stakes in public enterprises
on an ongoing basis. Further steps to increase FDI in retail, insurance and
pension sector should contribute to greater capital inflows.
Inflation is also on a falling trend. WPI inflation for April 2013 was
4.9% which is below the 5% RBI target. CPI inflation for April 2013 was also
lower at 100 bps lower than March figure at 9.36%. Though there were
significant upward revisions in the WPI inflation figure for the month of
January 2013 due to lagged effect of fuel price hikes,
subsequent month figures may see only a modest revision due to the
effect of hike in food prices. However of serious concern is the FY 2012-13
industrial growth which came at just 1%.
OUTLOOK FOR FY
2013-14
Growth prospects for 2013-14 are expected to be better as compared to
2012-13. However, there is significant divergence in estimates between various
think tanks on the growth estimates for 2013-14.
While IMF and private economists peg the growth rate at 5.7-5.8%, the PMEAC (Prime
Minister’s Economic Advisory Council) estimates India to grow 6.4% during
2013-14. This comes on the back of improved growth prospects estimated across
farm, industry and service segments.
The Asian Development Bank (ADB) maintained that Indian economy could
grow at an improved rate of 6 per cent during the current fiscal, provided
reforms are put in place at a faster pace to sort out the structural
bottlenecks, stem the deteriorating investment situation and the worsening
current account deficit (CAD) is brought under check.
A normal monsoon will boost agricultural GDP growth to an above trend
rate of 3.5 per cent in 2013-14. With the easing of inflation, RBI is expected
to cut interest rates by 50 basis points during 2013- 14. The likely increase in
government spending in the form of higher expenditure on social sector schemes
and rural development will be driven by the upcoming general elections.
Increased expenditure by the government, lower interest rates, moderation in
inflation and high farm incomes will boost household spending and benefit
sectors such as consumer durables, hotels and restaurants and financial
services. Further improved external demand could raise India’s exports,
especially in the IT/ITes sector.
Despite higher consumption growth, average WPI inflation is projected to
be lower at 6 per cent in 2013-14, as against 7 per cent forecast for 2012-13
on back of normal monsoon, a stronger rupee, and lower crude oil prices. The
downside risks to GDP growth forecast for 2013-14 would stem from a failure of
monsoon in 2013 and deterioration in global economic prospects.
BANKING INDUSTRY – DEVELOPMENTS OUTLOOK
The performance of the Indian economy is one of the strongest drivers
for the banking industry’s growth and vice versa and the average GDP growth of
8.1 per cent expected over 2011–16 will facilitate the expansion of the banking
sector. The government policies bringing in monetary stability will also
benefit and shield the industry from global economic or political turmoil. The
banking sector has outperformed the market from 2010 onwards. A boost in the
banking industry is also expected from the rising per capita income in India,
which along with a growth in earnings of the country will lead to a higher
number of people utilising banking services. Money supply (M3) growth was
around 14.0 per cent during Q1 of 2012-13 but decelerated thereafter to 11.2
per cent by end- December as time deposit growth slowed down. There was some
pick up in deposit mobilisation in Q4, taking deposit growth to 14.3 per cent
by end-March. Consequently, M3 growth reached 13.3 per cent by end-March 2013,
slightly above the revised indicative trajectory of 13.0 per cent. The non food
credit for 2013-14 for the banking industry is projected at 15% and deposit
growth at 14% on a y-o-y basis.
Nonfood credit growth decelerated from 18.2 per cent at the beginning of
2012-13 and remained close to 16.0 per cent for the major part of the year. By
March 2013, nonfood credit growth dropped to 14.0 per cent, lower than the
indicative projection of 16.0 per cent, reflecting some risk aversion and muted
demand. While the Reserve Bank’s credit conditions survey showed easing of
overall credit conditions, there was some tightening for sectors such as
metals, construction, infrastructure, commercial real estate, chemicals and
finance in Q4 of 2012-13.
In consonance with the cuts in the policy repo rate and the cash reserve
ratio (CRR) during 2012-13, the term deposit rate declined by 11 basis points
(bps) and the base rate by 50 bps. While the decline in the term deposit rate
occurred mostly during the first half, the base rate softened by 50 bps to
10.25 per cent on an average in two steps of 25 bps each during Q1 and Q4 of
2012-13. During Q4, 39 banks reduced their base rates in the range of 5-75 bps.
The weighted average lending rate of banks declined by 36 bps to 12.17 per cent
during 2012-13 (up to February).
Liquidity remained under pressure throughout the year because of
persistently high government cash balances with the Reserve Bank and elevated
incremental credit to deposit ratio for much of the year. The net average
liquidity injection under the daily liquidity adjustment facility (LAF), at
Rs.730 billion during the first half of the year, increased significantly to
Rs.1,012 billion during the second half. In order to alleviate liquidity
pressures, the Reserve Bank lowered the CRR of SCBs cumulatively by 75 bps on
three occasions and the statutory liquidity ratio (SLR) by 100 bps during the
year. Additionally, the Reserve Bank injected liquidity to the tune of Rs.1,546
billion through open market operation (OMO) purchase auctions. The net
injection of liquidity under the LAF, which peaked at Rs.1,808 billion on March
28, 2013 reflecting the year-end demand, reversed sharply to Rs.842 billion by
end-April 2013.
Financial Inclusion is another area where banks will have a major role
to play. A World Bank Survey conducted in 2011 revealed that only 35 per cent
of all adults in India had a bank account with a formal banking institution,
while this figure stood at 21 per cent in the poorest income quanti le. This
represents a massive opening that financial institutions in the country can
leverage upon for future growth. Further, the policies of the Reserve Bank have
prioritized financial inclusion, presenting an opportunity that might not
manifest itself again. The Indian government has advised banks to open at least
one branch in villages with a population of more than 2,000, and also cover the
peripheral villages. Banks are also required to formulate a board approved
Financial Inclusion Plan (FIP), the implementation of which will be monitored
by the RBI.
The Indian government aims to further financial inclusion by setting up ATMs
and providing mobile/online banking facilities. Further, experts suggest that
the number of ATMs need to increase by 5 times in the coming decade. The mobile
banking channel in India is also untapped, with close to 900 million mobile
connections, and only 400 million bank accounts. These areas open up diverse
opportunities for Indian banking industry.
However, there are certain challenges facing banks in India. They are
raising capital to adhere to Basel-III standards, asset quality issues and
increasing restructuring cases as well as human resource management issues. A
McKinsey report suggests that banks in India need to recruit employees with the
both core and specialist skills, and control attrition especially at the junior
levels. Non private Indian banks will greatly benefit from productivity
improvements, such as a re-engineering of the institutions knowledge processes,
better use of technology and building industry level utilities
BUSINESS REVIEW
DEPOSITS
Bank’s total Deposits increased by Rs. 636240.000
Millions to Rs.3818400.000 Millions during the year
recording a growth of 19.99%. The growth in domestic deposits was to the tune
of Rs.455920.000 Millions or 18.35% over previous year. Non-Resident Deposits
of the Bank stood at Rs. 166880.000 Millions which constituted 5.67%
of aggregate domestic deposits.
Savings Bank deposits grew by 16.04% and Current deposits logged a
growth of 12.01%. The share of low cost deposits comprising of savings and
current deposits to total domestic deposits is 32.79%. The Bank has a well
diversified deposit base with 12% of domestic deposits coming from rural areas,
13% from semi urban, 19% from
urban and 56% from metro areas. The bank’s total clientele base of 65.11
million consisted of 60.38 million depositors and 4.73 million borrowers as on
31st of March, 2013.
ADVANCES
The gross domestic Credit of the Bank registered a growth of 14.66% from
Rs.1779500.000 Millions on 31.03.2012 to Rs.2040360.000
Millions. The growth rate in the last year was 7.75%. Robust sanctions /
disbursement by Large Corporate, Mid Corporate, SME and Agriculture segments
enabled the growth. Under Large Corporate portfolio, the Bank added 115 new
customers and accounts, 10 Corporate Banking Branches, 42 Mid Corporate
Branches and 4344 domestic overseas branches continue to cater exclusively to
the specialised credit requirement of the Corporate borrowers/exporters.
INFRASTRUCTURE
FINANCE
During the year, the Bank sanctioned fund based limits of Rs.112250.000 Millions and Non Fund Based limits Rs. 24660.000 Millions under infrastructure projects in new and existing
account covering power, telecommunications, ports, roads etc.
EXPORT CREDIT
The Bank is active in meeting the importers and exporter clients’
financial requirements both in domestic and in foreign currency. Bank’s 215
branches across the country are authorized to handle foreign exchange business
and cater to the credit / foreign exchange needs of importers and exporters.
The Bank’s export credit registered a growth of Rs.12080.000
Millions i.e. 14.51% increase over March 2012 and reached a level of Rs.95310.000 Millions as on 31st March, 2013. The share of export credit to
adjusted net bank credit as at March 2013 was 5.34%. Financial requirements of
both exporters and non-exporters are met through ECBs at the Bank’s overseas
branches and Foreign Currency loans at domestic branches. The total amount of
such advances as on 31.03.2013 was USD 2203 million (Comprising of ECBs USD
1608 Mn and Foreign Currency Loan of USD 595 Mn) equivalent to Rs. 119620.000 Millions. The bank also extended pre-shipment and
post-shipment export credit in foreign currency and the amount outstanding as
on 31.03.2013 was USD 550 Mn. (equivalent to Rs. 30140.000
Millions).
WHOLESALE AND
INTERNATIONAL BANKING GROUP:
LARGE CORPORATE
The Large Corporate segment constituted 48% share in total domestic
advances as on 31.03.2013. Advances to this important segment has increased
from Rs.892570.000 Millions as on 31.03.2012 to Rs.988010.000
Millions as on 31.03.2013. With implementation of “SANKALP 10,000”, Large
Corporate Credit set-up has been re-designed for:.
·
Separate Large
Corporate Vertical has been created to cater to large corporates having sales
turnover above Rs.5000.000 Millions and Project Cost of above
Rs. 1000.000 Millions. In order to have more focused attention and to
reduce turnaround time, Credit processing Centre has been set up at each LCB
with direct reporting to Head Office. A total of 10 Large Corporate branches are
catering to the needs of Large Corporate Customers at major business centers
such as Mumbai, New Delhi, Chennai, Kolkata, Hyderabad, Bangalore, Ahmedabad
and Pune.
·
Accounts at Large
Corporate branches have been mapped with Relationship Managers who would look
after all Corporate needs of the customer for cash management, forex, treasury
products, trade finance, deposits, retail banking and third party products and
customer will have one point contact through the Relationship Manager for all
banking needs.
·
Credit business at
Large Corporate Branches have been segregated between Relationship Managers
reporting to Branch Heads and Credit Appraisal Officers reporting to Credit
Team Leader as a measure of Risk Management. Credit proposals processed at
Large Corporate Branches are sent directly to General Manager, Head Office,
Large Corporate. This has resulted in reduction of turnaround time.
·
Bank has put
systems in place to monitor pending Proposals / references at Large Corporate
branches as well as at Head Office level.
Strategies:
·
The Bank, for
reducing turnaround time, has developed CAPS module for credit processing.
·
Large Corporate
branches, apart from meeting the credit needs of borrowers, are now taking care
of entire banking needs of the Corporate customers. Large Corporate branches
serve as a focal point for corporate clients and to canvass new business.
MID CORPORATE
Mid corporate vertical was established in October 2010 with the sole
purpose of meeting all banking related requirements of the customer under a
single roof. The purpose of setting up of separate Mid Corporate vertical is to
harness the large potential in the segment with offers higher yields with wider
risk spread. Mid Corporate covers new companies with project cost of Rs. 100.000 - Rs.1000.000 Millions. For existing units sales
turn over criteria of Rs.1000.000 - Rs. 5000.000
Millions applies. Mid Corporate vertical operates through 7 Divisional Offices
and 42 Mid Corporate branches. There are 12 Credit Processing Centres (CPC) established
exclusively for processing of the proposals. During the FY 2012-13, total
Credit under Mid Corporate vertical grew from Rs.204700.000
Millions to Rs.228620.000 Millions registering a growth of
11.69%. Similarly, Deposits grew from Rs.93590.000 Millions
to Rs.106550.000 Millions registering a growth of 13.85%. Mid Corporate
vertical contributes 11.17% of the total domestic Credit and 3.62% of domestic
Deposit business of the Bank.
PROJECT FINANCE
AND SYNDICATIONS GROUP
Project Finance and Syndications Group of the bank is manned by highly
experienced and qualified professionals. It undertakes appraisals of
infrastructure and industrial projects. It takes up assignments of technical
appraisal, underwriting and syndication of loans. During the Year 2012-13
financial closures were done with a project cost of Rs.140180.000 Millions and syndicated debt of Rs.69050.000 Millions.
To strengthen the vertical further the bank has recruited Engineers and
MBA’s from the Industry with diverse experience. Bank is also acting as
Mandated Lead Arranger (MLA) and Joint Book Runner (JBR) for Multicurrency
International Syndication loans and arranged loans for Indian Corporates for
their expansion / acquisition and Joint Ventures, covering a wide range of
industries. The technical appraisal department, which supports the syndication
team, continues to appraise of industrial credit apart from syndicated loans.
The team comprising professional engineers, evaluated technology related risks
for the year, enabling the bank to improve quality of industrial assets. The
operations of the department, translated into a fee based income of Rs.164.200 Millions for the year.
TRANSACTION
BANKING
Transaction Banking department is focusing on following 4 business
lines, with an intention to make them major revenue drivers for the Bank. They
are:
·
Cash Management
Services,
·
Channel Finance,
·
Trade Finance, and
·
Government Business
For Bank’s corporate and HNW clients, cash pick up facility (Door Step
Banking) has been put in place at all NBG offices. The initiative has received
positive response from target clientele who are relieved from the worries and
risks of handling and carrying huge amount of cash to Bank. During the year
2012-13 Bank has made specific marketing efforts and has made liaison
Governments of Chhattisgarh (Raipur Zone), Jharkhand (Ranchi Zone), Uttaranchal
(Ghaziabad Zone), Assam and Meghalaya (Siliguri Zone) which has yielded good
results.
INTERNATIONAL
BANKING
The Bank has presence across 5 continents and 20 countries covering all
the major financial centres such as London, New York, Paris, Tokyo, Singapore
and Hong Kong. As on 31.03.2013, bank has a network of 52 foreign offices which
includes 4 Representative Offices, 4 Subsidiaries and 1 Joint Venture. The Bank
has a Global Processing Centre (GPC) at Singapore, thereby improving the
Management Information system and the customer service. Bank’s foreign
operations are being integrated with domestic operations by migrating them to
Finacle. Some Centres have already migrated to Finacle platform and it is
proposed to migrate the remaining Centres during 2013-14. Bank has Global
Remittance Centre (GRC) in Mumbai. The inward remittances, NRE/NRO Account
opening are centralized at GRC. For service to non-resident customers. SMS
alerts to remitter as well as
beneficiary for remittance from Gulf Countries have been introduced.
Straight through processing (STP) for Speed Remittances has been put up in
place and viewing facility has been set up for offsite account details. The
bank has introduced BOI Premium NR Deposit Scheme, Star e-Remit for UK based
customers. As at 31st March, 2013, total deposits at foreign branches stood at Rs.877730.000 Millions, registering a rise of Rs.180320.000 Millions (25.85%) over previous year. Total advances stood at
Rs.889320.000 Millions recording a rise of Rs.153880.000
Millions (20.92%) over previous year. Investments were at Rs.40470.000 Millions. Operating profit of foreign branches for the year
ended March 2013 at Rs.11810.000 Millions has shown a rise of Rs.930.000 Millions over previous year. However, Net profit at Rs.2950.000 Millions has decreased by Rs.3320.000
Millions over March 2012. In terms of contribution to global business and profit,
foreign branches contributed 26.19% towards global business and, 15.83% and
10.73% towards Operating profit and Net profit respectively for the year ended
31.03.2013.
FOREX BUSINESS
The forex business handled by the Bank has shown good growth. During the
year 2012-13, Merchant and Interbank turnover was Rs.1920270.000 Millions and Rs.6085220.000
Millions respectively. The Bank continues to be leading player in the forex
market. The aggregate turnover of Banks treasury Branch during the year was Rs. 8005490.000 Millions.
TREASURY
INVESTMENTS
The yield on benchmark 10 year G sec which was 8.63% as on 31st March
2012 has softened to 7.95% as on 31st March 2013. However, movement of G Sec yields
was highly volatile and the same moved within a wide range from 8.68% to 7.82%
during the year. The Bank has maintained a higher level of investments keeping
a balance between interest income and market risk. The Bank has maintained SLR
investments at higher level in excess of the regulatory requirement of 23% of
Net Demand and Time Liabilities so that excess SLR can be utilized for the
borrowing from Repo / CBLO windows. The gross SLR investments were Rs.796530.000 Millions (87.01% of total investments) and Non SLR stood at Rs.118950.000 Millions (12.99% of total investments). The investments are
made in accordance with the comprehensive policy in this regard approved by the
Board. The policy is reviewed periodically to respond to market developments/
regulatory requirements.
TREASURY OPERATIONS
The Bank continues to play an active role in all segments of the market-
Funds, Forex and Bonds during 2012-13. Taking advantage of the G sec rate
movements, Bank has churned its investments portfolio and earned profit from
trading and sale of securities. Bank has registered 193% growth in profit from
sale of securities in FY 2012-13 as compared to FY 2011-12. Bank has taken
advantage of arbitrage opportunity within various market segments and could
place the excess rupee funds in Certificate of deposits (CD), buy / sell
foreign currency swaps, term money markets there by earning a spread of 0.50%
to 1.00%. The Bank has built up a portfolio of Rs. 34460.000
Millions in CDs and also lent Rs.24710.000 Millions in
Term money by borrowing in CBLO/Repo against ‘T’ Bills and surplus securities
thereby earning a spread of approximately 0.50% to 1.00%
NATIONAL BANKING
GROUP (HEAD OFFICE):
RURAL BANKING
1. Priority Sector
Advances:
The Bank has always been one of the leaders in servicing to the priority
and agriculture sectors, with its vast network of rural and semi-urban branches
and committed personnel. Priority sector advances, apart from presenting a big
business opportunity, have wide social ramifications. The Bank has registered
an outstanding level of Rs.655180.000 Millions
under Priority Sector which is 36.71% of Adjusted Net Bank Credit (ANBC). Under
Special Agricultural Credit Plan, Bank could disburse Rs.177290.000 Millions up to March 2013.
2. Centralized
Processing Centres in focused districts:
Centralized Processing Centres have been established in zones with the
objective of augmenting agriculture credit. So far, 52 CPCs are operational.
3. Kisan Credit
Cards:
Kisan Credit Card Scheme aims at providing need based and timely credit
to the farmers for their cultivation needs as well as non-farm activities to
bring about flexible and operational freedom in credit utilization. During the
year Bank has issued 474669 new Kisan Credit Cards with aggregate limit of Rs.49240.000 Millions. The Bank has so far issued 1453132 Kisan Credit
Cards (cumulative) involving financial outlay of Rs. 121110.000
Millions.
4. Debt Swap :
Bank has designed ‘Debt Swap’ Scheme with an objective to help the indebted
farmers to redeem their outstanding dues to money lenders and to mitigate acute
distress faced by the farmers due to heavy burden of debt from
non-institutional lenders at unrealistic interest rates. Bank has made more
than 91 villages as money lender free villages and also financed more than 238
beneficiaries.
5. Differential
Rate of Interest :
A scheme for extending financial assistance at concessional interest
rate of 4% to selected low income groups for productive endeavors under the
name Differential Rate of Interest (DRI) Scheme is being implemented by the
Bank. The Bank has sanctioned 18806 cases under DRI Scheme during the year.
6. Prime
Minister’s New 15 Point Programme for the welfare of Minority Communities :
With focused attention to minority communities, Bank has been extending
finance to the minority communities of Sikhs, Muslims, Christians, Zoroastrians
and Buddhists. During the year 2012-13, Bank has financed Rs. 6490.000 Millions to the various minority communities and registered an
outstanding level of Rs.98470.000 Millions as on March 2013.
7. Golden Jubilee
Rural Housing Finance Scheme :
The Bank has been actively involved in implementation of the Golden
Jubilee Rural Housing Finance Scheme (GJRHFS) and has achieved the target of Rs.1805.300 Millions allocated by National Housing Bank for the year. Duri
8. Micro Finance /
Micro Credit :
The Scheme of Micro Credit has been found to be an effective instrument
for lifting the poor above the level of poverty by providing them increased
self employment opportunities and making them credit worthy. Bank is having
more than 91844 SHGs credit linked with Financial Outlay of Rs.5790.000 Millions. Out of this, more than 79912 women Self Help Groups
are credit linked to the Bank having financial outlay of Rs.4310.000 Millions.
9. Solar Energy
Home Lighting System :
To address the issues of electricity paucity the Bank has prepared and
launched a scheme on Solar Energy Home Lighting System. The Bank extends
financial assistance to the prospective borrowers for purchase and installation
of Solar Energy Home Lighting System. The Bank has so far sanctioned 1565 units
with financial outlay of Rs.40.000 Millions.
10. Mega project –
140 villages :
The main objective of the scheme is to create awareness and bring urban
amenities to rural areas including technology to rural households as available
to urban clientele. So far, 147 villages spread over 15 States and 85 districts
have been covered under the Scheme. The Bank has financed to the tune of Rs.198.800 Millions under the scheme through 1824 beneficiary accounts.
11. Lead Bank
Responsibility:
The Bank has been assigned with Lead Bank responsibility in 48 districts
spread over five states of Jharkhand (15), Maharashtra (12), Madhya Pradesh
(12), Uttar Pradesh (7) and Orissa (2). The Bank has been successfully
discharging its duties of Lead Bank in all these districts. The Annual Credit
Plan (ACP) for the year 2012- 13 was launched in all the Lead Districts
involving credit outlay of Rs.88090.000 Millions
for the Bank. The achievement of the Bank is Rs.84710.000
Millions which is 96.16% of ACP. The Bank has now, been designated by the SLBC
as the “Lead Bank Convener” in the state of Jharkhand.
BRANCH OF THE
FUTURE’ PROJECT
In the previous year 5 branches were converted into futuristic branches
through planned layout and customer friendly equipment for better customer
experience under ‘Branch of the Future’ Project. These pilot branches recorded
success which led the Bank to take up another 101 existing branches for
conversion as ‘Branches of the
Future’. All these branches have been successfully rolled out during FY
13. Some of the key differentiating elements of ‘Branches of the Future’ are
the following.
·
The interiors of
these branches have been aesthetically laid out creating large customer area
with sufficient seating arrangement.
·
Distinct front
office and in-branch back office have been created for quick turnaround time of
transactions.
·
Customer empowerment
has been attempted through self operated passbook printing kiosks.
·
Queue Management
System (QMS) is being used for managing front line customer facing activities
in a more organized manner.
·
New roles and
responsibilities have been defined for members of the branch team to achieve
greater sales push and customer satisfaction.
·
Training for better
customer management and cross selling has been provided to staff working at
these branches.
Customers of these branches are delighted with the makeover and new
processes. The overall efficiency of branch operations has improved as a result
of this initiative. Customer acquisitions and business leads are also picking
up significantly at these branches.
REVIEW OF OTHER
PRODUCTS AND SERVICES
IT ENABLED
SERVICES
The Bank is offering Five types of Credit Cards to select from to the
customers. The Bank also has Two affiliate banks viz. Bank of Maharashtra and
Tamilnadu Mercantile Bank Limited issuing Credit Cards under the brand name
“India Card”. During the year Issuing turnover witnessed a growth of 11.34% and
stood at about Rs.3914.400 Millions and acquiring turnover
witnessed an increase of 1.57% and stood at Rs.3141.300
Millions. Acquiring turnover on debit cards witnessed a growth of 50.06% and
stood at Rs.11470.500 Millions.
The Bank is also offering Five types of Debit cum ATM cards. Total Debit
Cards issued as on 31.03.2013 stood at 136.03 lakh comprising of 39.49 lakh
Starlinks International ATM cum Debit Cards (Visa Electron), 90.61 lakh BOI Global
Debit cum ATM cards (MasterCard), 0.03 lakh Platinum Debit Cards (MasterCard),
0.12 lakh Gift Cards (Visa Electron), 1.80 lakh Bingo Cards.
SMS Alerts – Star
Sandesh
As a fraud prevention measure, SMS alerts are generated and provided to all
customers who have registered their mobile number with the Bank for
·
All Debit
transactions from delivery channels (Internet banking/ ATM/POS).
·
All Customer
induced debit and credit transactions of Rs.0.010 Million
and above.
·
All Debit ECS
transactions of Rs.0.010 Million and above.
·
All Debit RTGS
transactions.
·
Acknowledgment on
accepting the cheque book issue request.
·
Alerts for
installment due in Star Autofin and Housing Accounts.
INTERNET BANKING:
A fast and secure internet banking facility is available to customers
for utility bill payments, air and rail ticket booking, on-line shopping,
inter-bank and intra bank fund transfers, etc. Bank of India is the first PSU
Bank in India to implement Two-factor Authentication (2FA) – Star Token for
both Retail and Corporate internet banking customers as an additional security
measure. Bank’s customers enjoy the convenience of “secured” Anytime, Anywhere,
Anyhow hassle free Banking from the comfort of their homes and offices with a
click of a mouse.
Some of the
features available are:
·
Online Interbank
Fund Transfer across banks, through our Star Connect Internet Banking Services,
using RTGS / NEFT facility
·
BOI Star e-Pay for
Auto-pay or on-line payment of various utility services / bills
·
e-Payment of Direct
and Indirect, Central Excise and Service Tax
·
Star e-Share Trade
to trade in shares.
·
e-Freight Payment
·
Directorate General
of Foreign Trade (DGFT) license fee Online e-Payment
·
Online Booking of
Railway and Airlines Ticket
·
Online Application for
Education loan
·
On Line facility
available to View and Apply Application Supported by Blocked Amount (ASBA) for
IPOs from Internet Banking
·
Enabling internet
banking customers to make online Fixed Deposit.
·
Hot
Listing/Reset/Unblock/Change of Debit Cum ATM card PIN using Internet Banking
password.
·
Viewing of Annual
Tax Statement (Form 26AS).
·
Extended the
facility of online e-Payment to the customers holding our Debit-cum-ATM card.
This will enable the customers to use their Debit-cum-ATM cards for e-payments
in addition to credit card and Internet banking account.
·
Online Nomination
facility while creating online Term Deposit Receipt as well as for existing
Term Deposit Receipts.
AUTOMATED TELLER
MACHINES (ATMS):
The Bank has joined National Financial Switch (NFS) which enables
Customers to access more than 85,000+ ATMs across the country. Bank is also
part of Cash Tree, BANCS and SBI Group networks. As on 30th April, 2013 we had
2,226 ATMs out of which 439 were under Ministry Of Ministry and the rest 1,787
were under Phase VI.
IT ENABLED
SERVICES:
·
In the process of
the ambitious growth plan of the Bank, under Sankalp 10000 initiatives,
·
Internet Banking:
Retail Customers and Corporate Customers
·
Mobile Banking: ATMs
·
Card Products:
Debit Cards, Credit Cards, Bingo Cards, Gift Cards
·
BOI Star Reward
Program
·
E-Commerce Facility
·
E-Pay Facility
·
Demat
BULLION BANKING
Bullion Banking was introduced by the Bank in November 1997. Initially the
scheme was introduced at SEEPZ and Ahmedabad branches and was subsequently
introduced at other branches. As on date although 9 branches are authorized to
undertake bullion business only 3 branches are undertaking bullion business.
The gold is procured on consignment basis for catering to the needs of the
jewellery exporters and domestic manufacturers. The Bank sold 11,668 Kg of gold
in the year 2012-13, with a turnover of 3,485 Millions, thereby earning an
income of Rs.203.400 Millions. The increase in the earnings during the year was
21.51%.
STAR CASH
MANAGEMENT SERVICES (STAR CMS)
The Bank has active presence in CMS space but the CMS operations have
been revamped by adopting latest state of the art Web based technology. The
Bank has also entered into Correspondent banking arrangement with other Banks.
Due to switch over to the WEB based software on ORACLE platform the Bank is
well positioned to handle any number of transactions. The Bank has a separate
department for CMS at Head Office which monitors and controls the overall
functioning of CMS. It is under the direct control of the General Manager
(Transaction Banking). The CMS HUB located at M.G. Road, Mumbai takes care of
the operational side of the initiative. The Bank has over 4000 branches which
are operating on CBS platform across more than 1000 cities and towns. All these
branches can canvass for CMS clients for availing various CMS services.
THIRD PARTY
PRODUCTS
TIE-UP FOR LIFE
INSURANCE:
Bank continues its Corporate Agency arrangement with Bank’s Joint
Venture Life Insurance Company Star Union Dai-ichi Life Insurance Co. Limited
for sale of their life insurance products. Bank has around 1600 employees to
act as ‘Specified Person’ for sale of insurance products in various centres.
During the current financial year, bank collected premium of Rs.4650.000 Millions (Number of Policies – over 96,000) and contributed to
more than 55% of the total new business of the Joint Venture company. Bank
continues to offer optional life insurance cover to our Star Home Loan and Star
Education Loan borrowers under Group Policy wherein the borrowers pay reduced
premium for life cover.
TIE-UP FOR GENERAL
INSURANCE (NON-LIFE) WITH NATIONAL INSURANCE COMPANY LIMITED (NICL):
The existing tie-up arrangement with NICL was converted into Corporate
Agency Distribution Model in compliance with IRDA revised guidelines covering
Bancassurance Business with Distributors like Bank. Bank has a co-branded
health insurance product – BOI National Swasthya Bima, which is a Family Floater Mediclaim Insurance Cover available only for
Bank of India account holders, for a very low premium. The coverage is for the
Account Holder, Spouse and Maximum of 2 Dependent Children. Entire family
(Account holder, his/her spouse and their two dependent children) is covered to
the extent of sum insured in as much as part of the sum insured can be availed
at different times by family members. It has been a popular product and as on
31.03.2013 over 1.42 lakh Bank of India Account holders have taken this policy.
The total premium collected by the Bank for NICL during financial year 2012-13
has been Rs.1550.000 Millions which earned a commission
of Rs.150.700 Millions.
MUTUAL FUNDS
PRODUCTS:
Our Bank continues to be a shop for all financial needs of the customers
and we distribute Mutual Fund products of the following 10 Asset Management
Companies, viz., BOI-AXA Mutual Fund, Birla Sun Life Mutual Fund, DSP Black
Rock Mutual Fund, Franklin Templeton Investments, HDFC Mutual Fund, IDFC Mutual
Fund, ING Mutual Fund, Kotak Mutual Fund, Reliance Mutual Fund and UTI Mutual
Fund.
ASSET RECOVERY AND
NPA MANAGEMENT
The Bank continues its drive and focus in improving its performance in the
area of NPA management in the year 2012-13 as well. Reduction of NPAs is given
utmost priority at the Bank and this function has steadily grown in importance.
Substantial measures were initiated to augment recovery and contain NPAs.
Efforts were also made to maximize recovery in written off accounts and
uncharged / unrealised interest in NPA accounts which contributes to the Bank’s
profits significantly.
CREDIT MONITORING:
The need for an accentuated focus on Credit Monitoring for a robust and
healthy credit portfolio, in the present economic scenario cannot be denied.
The gamut of functions undertaken by the Credit Monitoring Department of the
Bank has expanded over the years and assumed critical importance in the Bank’s
endeavour to maintain sound asset quality.
·
Monitoring is being
done through various system generated reports on weekly / fortnightly / monthly
basis. The breakup of overdue / out of order position of accounts in various
time buckets assists in control and monitoring of credit assets. These reports
are being effectively utilized to track and avoid delinquency.
·
Monitoring of
slippages in small ticket advances pose a challenge due to sheer enormity of
their numbers. To address this issue, during the fiscal 2012-13, the Bank took
the initiative of introducing ‘Collection Cells’ at zonal centres. In all loan
accounts including KCC accounts, a system generated advance intimation from
Zonal Office is sent to the borrower, 10 days prior to due date, a system
generated advance intimation from Zonal Office is sent to the borrower,
informing the due date and amount of installment. In case the installment is
not paid on the 15th day from the due date, regular follow up is made by the
branch officials till such time the overdue is paid off. In case of accounts
above Rs.1.000 Millions, Task Force Meeting (TFM) is arranged with Zonal Head.
The Advance intimations pertaining to Rural and Semi Urban branches is written
in local language. Tools utilized for efficient monitoring and control process:
·
Inspection of the
assets charged to the Bank for ensuring end use of funds is undertaken at
regular intervals. Adequate insurance of charged assets held in force, is given
prime importance for safeguarding the Bank’s exposure.
·
Periodic Stock and
Receivable Audit is another important tool used to safeguard quality of assets
charged to the Bank which is carried out by empanelled Chartered Accountants.
·
Credit Process
Audit (CPA), prior to release of funds by the Bank, ensures compliance of all
terms of sanction and other covenants.
·
Zonal Credit
Monitoring Committee meetings are conducted at all Zones wherein issues
relating to big ticket advances are dealt with.
·
The advances
showing inherent signs of weakness such as out of order position, inability to
meet commitments under Letters of Credit / Bank Guarantees, timely review, etc.
which pose a threat to Bank’s asset quality, are followed up by extensive usage
of Video Conferencing facility / discussions at various platforms thereby
sensitizing all concerned.
·
Critical analysis
of delinquencies in advances within a short period of their respective
sanctions (quick mortality cases) is made and remedial action is taken,
wherever necessary. Additionally, accountability is examined in all delinquent
assets, more particularly under quick mortality.
·
The classification
of advances is in accordance with the prevalent IRAC norms. Advances which
display signs of stress / temporary aberrations albeit having financial /
economic viability are restructured in line with the prevalent guidelines /
instructions issued from time to time by the regulatory authority. Calculation
of Diminution in Fair Value and provision thereon is done at the Head Office
level in respect of all restructured advances of Rs.10.000
Millions and above.
BRANCH NETWORK AND
EXPANSION
The Bank has a geographically well spread branch network in India and
abroad. The Bank had 4000 branches in India as on 31.03.2012. In the foreign
countries, 48 branches and 4 representative offices keep Bank’s presence felt
in all time zones and important financial centers of the globe. During the year
2012-13, Bank opened 292 new branches including 02 Extension Counters converted
into full-fledged branches.
Composition of Bank’s Branch Network is as
follows :
Falling in line with RBI liberalized policy of branch authorization,
some branches were shifted to alternate sites and Extension Counters showing
good performance and those with locational advantage, were converted into
full-fledged branches. It is intended to continue this policy for the coming
year as well. RBI has further liberalized its branch authorization policy
w.e.f. 29.11.2011 allowing banks to open branches in centers having population
below 1,00,000 (enhanced from 50,000 to below 1,00,000) without obtaining prior
approval from them. The Bank availed the opportunity and authorized zones to
open branches under this category in 322 centers.
OPERATIONAL
EXCELLENCE
Commitment towards
Customers
The Bank reiterates its commitment to customer service through customer
centric approach to achieve the goals set under SANKALP 10,000.
Major Initiatives:
• Training:
Sales Force and Relationship Managers are being provided training from
time to time either at the Training Centers or at Zonal Office. During the
current year, Bank has arranged training for all the Heads of Marketing, Sales
Force and RSMs from each zone at MDI, Mumbai during the year.
• Sales Force
Automation (SFA) Package:
Bank has launched IT enabled software package called Sales Force
Automation (SFA) i.e. Lead Management System. The system effectively captures,
monitors, tracks converted leads and analyzes the leads generated at various
levels. The system will also be used for administering the incentive scheme as
well.
• Quick Wins
Campaign:
Massive Contact Programme to meet Diamond Customers. The Campaign was
launched in Centres for contacting Diamond Customers, updating their data, KYC
compliance, opening of new value accounts, cross selling of various Bank’s
products and Third party Products. During the campaign, over one Lac Diamond
Customers are contacted.
• SUD Life
Campaign was launched in all 50 zones for marketing
of Life Insurance products.
The Bank has with a view to enhance its corporate image and identity,
initiated media campaigns on the existing theme "Relationships beyond
Banking". Towards this end three TVCs were produced in line with the
Relationship theme viz. Old Couple, Friends and Bus which were aired on both
National as well as Regional Channels.
BANK’S SUBSIDIARY
/ ASSOCIATES
INDO ZAMBIA BANK
LIMITED (IZB)
IZB is a joint venture of three Indian Banks viz. Bank of India, Bank of
Baroda, Central Bank of India and Government of Zambia. Each of the Indian
Banks holds 20% of the share capital, whereas Government of Zambia holds 40% of
the share capital. Indo-Zambia Bank Limited is fine example successful joint
venture. It enjoys the patronage of two friendly republics, the Government of
Republic of Zambia and Government of India.
PT BANK
SWADESHITBK, INDONESIA
During FY 2007-08 the bank acquired a stake of 76% in PT Bank
SwadeshiTbk at a total consideration of Indian Rs.37.700
Millions. The Bank has three Directors on the Board of PT Bank SwadeshiTbk.
BANK OF INDIA
(TANZANIA) LIMITED
Bank of India (Tanzania) Limited is wholly owned subsidiary of the Bank
and commenced operations on 16th June 2008 with first branch at Dar-Es-Saleam.
BANK OF INDIA (NEW
ZEALAND) LIMITED
Bank of India (New-Zealand) Limited is wholly owned subsidiary of the
Bank. The Bank’ has a Net Worth of Rs.2274.600 Millions
as on 31.03.2013. The Bank has a PAT of Rs.12.300
Millions for the year ended 31.03.2013.
BOI SHAREHOLDING
LIMITED (BOISL)
Bank’s association with the Capital Market spans a period of nine
decades. The clearing and settlement function of Bombay Stock Exchange (BSE)
was being handled by the Bank since 1921. In 1989, Bank set-up “BOI
Shareholding Limited (BOISL)”, joint venture with BSE, to manage the clearing
house activities of the Stock Exchange. The Bank has holding of 51% of its paid
up capital of Rs.20.000 Millions.
The company has been carrying out the rolling and weekly settlements of
trades executed by member brokers operating on the Exchange, BOISL is also a
Depository Participant (DP) of both the Depositories viz. the National
Securities Depository Limited (NSDL) and the Central Depository Services
(India) Limited (CDSL) and provides depository services to the clearing members
and investors. BOISL is the first Securities Clearing House in the country to
have been awarded the ISO 9001-2000 ISO Certification. BOISL earned a net
profit of Rs.6.760 Millions (unaudited) during 2012-13
as against Rs.26.800 Millions earned during 2011-12.
BOI AXA INVESTMENT
MANAGERS PRIVATE LIMITED AND BOI AXA TRUSTEESHIP SERVICES PRIVATE LIMITED
These Companies are in the Business of Mutual Fund and Portfolio
Management. Bank of India is holding 51% Stake in both the Companies.
STCI FINANCE
LIMITED
STCI Limited is one of the leading Primary Dealers in the country. It
was established in 1994 with the objectives of widening the gilt and other debt
security market through development of a vibrant secondary market. Bank of
India with 29.96% holding is the single largest stakeholder in STCI having Paid
up Capital of Rs.3800.000 Millions. The Company is an
associate company of the Bank in terms of Accounting Standards 21 (AS-21) of
the Institute of Chartered Accountants of India.
With growing perception that Primary Dealership by itself is no longer
an attractive business, STCI decided to hive off the Primary Dealership
business to its new subsidiary namely STCI Primary Dealer Limited which
commenced its operations from 25th June 2007. The Subsidiary which started on a
cautious note has made steady progress since then.
After formation of subsidiary, STCI took up activities of IPO funding,
margin funding, commodity future trading, Asset Management, investments in
short term corporate loans / CP, equity trading etc. During the FY 2012-13 the
PAT was at Rs.788.100 Millions as compared to a PAT of Rs.464.500 Millions for the FY 2011-12.
STAR UNION
DAI-ICHI LIFE INSURANCE COMPANY LIMITED (SUDLIFE)
Bank of India, Union Bank of India and Dai-ichi Mutual Life Insurance Company,
Japan have formed “Star Union Dai-ichi Life Insurance Company” to take
advantage of the growing insurance market and to provide quality assured
insurance to its clients spread across the length and breadth of the country.
The company has commenced insurance business since February 2009. BOI holds 48%
in the Company’s paid up Capital of Rs.2500.000
Millions. Union Bank holds 26% stake and Dai-ichi Mutual Life Insurance
Company, Japan holds 26% in addition to the Bank’s stake. In terms of the Joint
Venture Agreement the Bank had earlier transferred it’s 3% stake in favour of
Union Bank.
STRATEGIC
INVESTMENT / ALLANCES
CENTRAL DEPOSITORY
SERVICES (INDIA) LIMITED (CDSL)
The Company was promoted in 1997 by the Bombay Stock Exchange and Bank
of India along with other Banks. The main objective of promoting CDSL, was to
accelerate the pace of dematerialization of scrips, bring wide participation of
investors in the capital market and to create a competitive environment as
country’s second depository. Bank now holds 5.56% stake in the paid up capital
of Rs.1045.800 Millions of CDSL. CDSL has paid 10% dividend in FY 2007-08,
2008-09, 2011-12 and 15% dividend for 2012-13.
ASREC (INDIA)
LIMITED
The Company was floated by the Specified Undertaking of the Unit Trust
of India to undertake securitization and asset reconstruction activities. The
company was granted Certificate of Registration by RBI under the SARFAESI Act,
2002 in the second half of FY 2004- 05 and has since commenced full-fledged
operation. Currently the Bank has holds 26.02% stake, in the equity capital of
the company which is Rs.980.000 Millions.
CREDIT INFORMATION
BUREAU (INDIA) LIMITED (CIBIL)
CIBIL is the first credit information bureau in the country,
incorporated in August, 2000 for providing credit information and risk analysis
services to the Banking and Financial services sectors. The company launched
its consumer bureau operations in FY 2004-05 and commercial bureau operations
during 2006-07. Bank holds a stake of 5% in the equity share capital of the
company.
MULTI COMMODITY
EXCHANGE OF INDIA LIMITED (MCX)
MCX is a new generation multi commodity exchange undertaking future
trading in commodities at the national level. The Exchange commenced operation during FY 2004-05 and within a short span has come
up as India’s No. 1 Commodity Exchange. It now figures in the world’s Top
Bullion and Base Metal Exchanges. Bank has a nominal stake of 2% by way of
equity participation in the capital of MCX with a view to be associated with
one of the major commodity exchanges. Bank also handles clearing bank functions
of the exchange through Bullion Exchange Branch.
NATIONAL COLLATERAL MANAGEMENT SERVICES LIMITED (NCMSL)
National Collateral Managements Services Limited is promoted by the
National Commodity and Derivates Exchange Limited (NCDEX). It was incorporated
on 28.09.2004 to promote and provide collateral management services for
securing, managing and controlling securities and commodities. It offers
various services for the development of trades on commodity exchange such as
valuation, grading, insuring, securing, storing, distributing, clearing and
forwarding of securities and commodities etc. Bank holds a stake of 10.17%
(Rs.30.000 Millions) in the equity capital of the company, thus providing
opportunities to the bank to harness its association with NCMSL for credit
lines to its members and clients.
SWIFT INDIA DOMESTIC SERVICE PRIVATE LIMITED
The new joint venture company is promoted by SWIFT and 8 major Banks including
Bank of India. SWIFT is holding 55% equity and remaining 45% is hold by 8 major
Banks. Bank of India has an equity stake of 5.63% in the company. The company
is yet to start its operations.
SME RATING AGENCY OF INDIA LIMITED (SMERA)
SMERA was set up during FY 2005-06 by SIDBI in association with Dun and
Bradstreet one of the leading credit rating agencies. SMERA’s primary objective
is to provide comprehensive, transparent and reliable ratings which would
facilitate greater and easier flow of credit to SME sector. Bank has a nominal
stake of 4% in the equity capital of the company.
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
I. Claims against the Bank not acknowledged as debts |
8113.001 |
6005.347 |
|
II.
Liability for partly paid Investments |
1170.424 |
3.200 |
|
III.
Liability on account of outstanding forward exchange contracts |
1426112.004 |
1041967.872 |
|
IV. Guarantees given on behalf of Constituents : |
|
|
|
a) In
India |
167395.925 |
165681.720 |
|
b)
Outside India |
128253.018 |
112337.637 |
|
V.
Acceptances, endorsements and other obligations |
271427.822 |
259566.409 |
|
VI.
Interest Rate Swaps |
202187.374 |
238047.553 |
|
VII.
Other items for which the Bank is contingently liable |
12208.459 |
87687.365 |
|
Total |
2216868.027 |
1911297.103 |
REVIEWED
FINANCIAL RESULTS FOR THE QUARTER/ HALF YEAR ENDED 30THSEPTEMBER, 2013
(Rs.
In Millions)
|
Sr.
No. |
Particulars |
Quarter ended |
Half year ended |
|
|
Reviewed |
Reviewed |
Reviewed |
||
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
||
|
1 |
Interest earned ( a )+( b )+( c )+( d ) |
92392.900 |
85412.400 |
177805.300 |
|
|
( a ) Interest/ discount on advances/bills |
66314.400 |
61904.000 |
128218.400 |
|
|
( b ) Income on Investments |
21286.400 |
18851.300 |
40137.700 |
|
|
( c ) Interest on balances with RBI and
other inter bank funds |
4789.100 |
4654.900 |
9444.000 |
|
|
( d ) Others |
3.000 |
2.200 |
5.200 |
|
2 |
Other Income |
11002.600 |
11807.700 |
22810.300 |
|
3 |
TOTAL INCOME ( 1 + 2 ) |
103395.500 |
97220.100 |
200615.600 |
|
4 |
Interest expended |
67121.300 |
60042.200 |
127163.500 |
|
5 |
Operating expenses ( i )+( ii ) |
15249.400 |
15374.000 |
30623.400 |
|
|
( i ) Employees cost |
8968.200 |
9625.100 |
18593.300 |
|
|
( ii ) Other operating expenses |
6281.200 |
5748.900 |
12030.100 |
|
6 |
TOTAL
EXPENDITURE (4)+(5) (excluding Provisions and Contingencies) |
82370.700 |
75416.200 |
157786.900 |
|
7 |
OPERATING PROFIT (3-6) (Profit before Provisions and
Contingencies) |
21024.800 |
21803.900 |
42828.700 |
|
8 |
Provisions (other than tax) and
Contingencies |
12322.800 |
6945.600 |
19268.400 |
|
9 |
Exceptional items |
- |
- |
- |
|
10 |
Profit (+) /Loss (-) from Ordinary
Activities before tax (7-8-9) |
8702.000 |
14858.300 |
23560.300 |
|
11 |
Tax expense |
2484.300 |
5216.500 |
7700.800 |
|
12 |
Net Profit(+)/Loss(-) from Ordinary
Activities after tax(10-11) |
6217.700 |
9641.800 |
15859.500 |
|
13 |
Extraordinary items (net of tax expense) |
- |
- |
- |
|
14 |
Net Profit(+)/Loss(-) for the period (12-13) |
6217.700 |
9641.800 |
15859.500 |
|
15 |
Paid-up equity share capital (Face value ` 10/-
) |
5966.400 |
5966.400 |
5966.400 |
|
16 |
Reserves excluding Revaluation Reserves |
|
- |
- |
|
17 |
Analytical Ratios |
|
|
|
|
|
( i ) Percentage of shares held by
Government of India |
64.11% |
64.11% |
64.11% |
|
|
(ii)
Capital Adequacy Ratio (
Basel II ) |
10.86% |
10.66% |
10.86% |
|
|
(ii)
Capital Adequacy Ratio ( Basel
III ) |
10.77% |
10.36% |
10.77% |
|
|
(iii)
Earnings per Share ( EPS ) |
|
|
|
|
|
a) 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) (`) |
10.43 |
16.18 |
26.61 |
|
|
b) Basic and diluted EPS after
Extraordinary items for the period, for the year to date and for the previous
year (Not to be annualised) (`) |
10.43 |
16.18 |
26.61 |
|
|
(iv)
(a) Amount of gross non-performing assets |
98800.700 |
94134.500 |
98800.700 |
|
|
(b) Amount of net non-performing assets |
61565.800 |
64088.700 |
61565.800 |
|
|
(c) Percentage of gross NPAs |
2.93% |
3.04% |
2.93% |
|
|
(d) Percentage of net NPAs |
1.85% |
2.10% |
1.85% |
|
|
(v)
Return on Assets (Annualised) |
0.48% |
0.80% |
0.63% |
|
18 |
Public Shareholding |
|
|
|
|
|
Number of Shares |
21,38,95,500 |
21,38,95,500 |
21,38,95,500 |
|
|
Percentage of shareholding |
35.89% |
35.89% |
35.89% |
|
19 |
Promoters and Promoter Group Shareholding |
|
|
|
|
|
(a) Pledged/Encumbered |
|
|
|
|
|
Number of Shares |
Nil |
Nil |
Nil |
|
|
Percentage of shares (as a percentage of
the total shareholding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
Percentage of shares (as a percentage of
the total share capital of the company) |
Nil |
Nil |
Nil |
|
|
(b) Non-encumbered |
|
|
|
|
|
Number of Shares |
38,20,06,827 |
38,20,06,827 |
38,20,06,827 |
|
|
Percentage of shares (as a percentage of
the total shareholding of promoter and promoter group) |
100% |
100% |
100% |
|
|
Percentage of shares (as a percentage of
the total share-capital of the company) |
64.11% |
64.11% |
64.11% |
Segment Information :
Part A: Business Segments
(Rs. In Millions)
|
Particulars |
Quarter ended |
Half year ended |
||
|
Reviewed |
Reviewed |
Reviewed |
||
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
|
Segment Revenue |
|
|
|
|
|
a) Treasury Operations |
28384.200 |
30493.200 |
58877.400 |
|
|
b) Wholesale Banking Operations |
49668.300 |
41957.200 |
91625.500 |
|
|
c) Retail Banking Operations |
25467.400 |
24904.100 |
50371.500 |
|
|
d) Unallocated
|
2.100 |
11.3 00 |
13.400 |
|
|
Total |
103522.000 |
97365.800 |
200887.800 |
|
|
Less : Inter Segment Revenue |
126.500 |
145.7 00 |
272.200 |
|
|
Income from Operations |
103395.500 |
97220.100 |
200615.600 |
|
|
Segment Results |
|
|
|
|
|
a) Treasury Operations |
3164.300 |
11230.300 |
14394.600 |
|
|
b) Wholesale Banking Operations |
5420.000 |
2610.4 00 |
8030.400 |
|
|
c) Retail Banking Operations |
1596.800 |
2365.300 |
3962.100 |
|
|
d) Unallocated
|
(1479.100) |
(1347.700) |
(2826.800) |
|
|
Total |
8702.000 |
14858.300 |
23560.300 |
|
|
Less : i) Other Un-allocable expenditure |
- |
- |
- |
|
|
ii) Un-allocable income |
- |
- |
- |
|
|
Total Profit Before Tax |
8702.000 |
14858.300 |
23560.300 |
|
|
Provision for Tax |
2484.300 |
5216.500 |
7700.800 |
|
|
Net Profit |
6217.700 |
9641.800 |
15859.500 |
|
|
Segment Assets |
|
|
|
|
|
a) Treasury Operations |
1551670.500 |
1636023.400 |
1551670.500 |
|
|
b) Wholesale Banking Operations |
2669576.100 |
2332277.300 |
2669576.100 |
|
|
c) Retail Banking Operations |
831256.100 |
819550.200 |
831256.100 |
|
|
c) Unallocated
|
77921.300 |
70395.200 |
77921.300 |
|
|
Total |
5130424.000 |
4858246.100 |
5130424.000 |
|
|
Segment Liabilities |
|
|
|
|
|
a) Treasury Operations |
1475879.100 |
1556599.200 |
1475879.100 |
|
|
b) Wholesale Banking Operations |
2542110.400 |
2221889.400 |
2542110.400 |
|
|
c) Retail Banking Operations |
790558.500 |
780264.400 |
790558.500 |
|
|
c) Unallocated
|
59046.600 |
46546.300 |
59046.600 |
|
|
Total |
4867594.600 |
4605299.300 |
4867594.600 |
|
|
Capital Employed |
|
|
|
|
|
(Segment Assets - Segment Liabilities) |
|
|
|
|
|
a) Treasury Operations |
75791.400 |
79424.200 |
75791.400 |
|
|
b) Wholesale Banking Operations |
127465.700 |
110387.900 |
127465.700 |
|
|
c) Retail Banking Operations |
40697.600 |
39285.800 |
40697.600 |
|
|
c) Unallocated
|
18874.700 |
23848.9000 |
18874.700 |
|
|
Total |
262829.400 |
252946.8000 |
262829.400 |
|
Part B: Geographical
Segments
(Rs.
In Millions)
|
Particulars |
Quarter ended |
Half year ended |
|
|
Reviewed |
Reviewed |
Reviewed |
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
Revenue |
|
|
|
|
Domestic |
92892.200 |
87760.800 |
180653.000 |
|
International |
10503.300 |
9459.300 |
19962.600 |
|
Total |
103395.500 |
97220.100 |
200615.600 |
|
Assets |
|
|
|
|
Domestic |
3730669.600 |
3600183.000 |
3730669.600 |
|
International |
1399754.400 |
1258063.100 |
1399754.400 |
|
Total |
5130424.000 |
4858246.100 |
5130424.000 |
Note: There are no significant Other Banking Operations carried on by the
Bank.
Allocations of costs :
a) Expenses directly attributable to particular segment are allocated to the relative segment.
b) Expenses not directly attributable to specific segment are allocated in proportion to number of employees/business managed.
SUMMARISED BALANCE SHEET
(Rs.
In Millions)
|
Particulars |
|
As
at 30thSeptember
2013
(Reviewed)
|
|
CAPITAL AND
LIABILITIES |
|
|
|
Capital |
|
5966.400 |
|
Reserves and Surplus |
|
256863.000 |
|
Deposits |
|
4322818.400 |
|
Borrowings |
|
417506.300 |
|
Other Liabilities and provisions |
|
127269.900 |
|
TOTAL |
|
5130424.000
|
|
|
|
|
|
ASSETS |
|
|
|
Cash and balances with Reserve Bank of India |
|
246210.300 |
|
Balances with bank and money at call and short notice |
|
346581.400 |
|
Investments |
|
1074127.300 |
|
Advances |
|
3321901.900 |
|
Fixed Assets |
|
29572.000 |
|
Other Assets |
|
112031.100 |
|
TOTAL |
|
5130424.000
|
NOTES:
1. The financial results for the quarter/half year ended 30thSeptember, 2013 have been arrived at on the basis of the same accounting policies as those followed in the preceding financial year ended 31st March, 2013 except for provision of net depreciation as per RBI Circular as given in note 8 (b) below.
2. The above financial results have been approved by the Board of Directors at its meeting held on 31st October, 2013 and have been subjected to Limited Review by the Statutory Central Auditors of the Bank
3. The financial results for the quarter/half year ended 30thSeptember, 2013 have been arrived at after considering extant guidelines of Reserve Bank of India (RBI) on Prudential norms for Income Recognition, Asset Classification and Provisioning and providing for other usual and necessary provisions including employee benefits on estimated basis
4. In accordance with the RBI circular no.DBOD.BP.BC.80/21.04.018/2010-11dated 09.02.2011:
a) a sum of Rs.1106.100 Millions has been charged to the Profit and Loss Account during the quarter on proportionate basis towards additional liability of Rs.22121.500 Millions (being amortised over 5 years beginning from 31.03.2011) on account of reopening of pension option for existing employees who had not opted for pension earlier calculated on actuarial basis. The balance amount of Rs.6636.600 Millions is being carried forward to be charged to Profit & Loss Account for future periods.
b) a sum of Rs.214.500 Millions has been charged to the Profit and Loss Account during the quarter on proportionate basis towards additional liability of Rs.4289.600 Millions (being amortised over 5 years beginning from 31.03.2011) on account of the enhancement of gratuity limits in Payment of Gratuity Act, 1972. The balance amount of Rs.1286.700 Millions is being carried forward to be charged to Profit and Loss Account for future periods.
5. Pending settlement of the proposed wage revision effective from November, 2012, an ad hoc provision of Rs.2000.000 Millions is held as on 30th September, 2013, which includes Rs.500.000 Millions for quarter ended 30th September,2013 totaling Rs.1300.000 Millions for the half year ended 30th September,2013.
6. Standby Letters of Credit extended to customers devolved resulting in funded exposure of Rs.2493.100 Millions as at 30th September, 2013. In view of the perceived weakness in these substandard accounts, an additional amount of Rs.470.500 Millions have been provided for over and above the provisioning as required under prudential norms, which is considered to be adequate.
7. In terms of RBI circular DBOD.No.BP.BC.88/21.06.201/2012-13 dated March 28, 2013, banks have been advised to disclose capital adequacy ratios computed under Basel III Capital Regulations from the quarter ended June 30, 2013. Accordingly, corresponding details for previous year / period are not applicable.
8. In terms of RBI circular DBOD.BP.BC.No.41/21.04.141/2013-14 dated August 23, 2013 on “Investment Portfolio of Banks – Classification, Valuation and Provisioning”,
a. the Bank has fully recognized the category transfer loss of Rs.78.300 Millions during the quarter ended 30th September, 2013 for transfer of SLR securities from Available for Sale (AFS) category to Held to Maturity(HTM) category.
b. The aforesaid circular allowed Banks option to distribute the net depreciation on the entire AFS and Held for Trading (HFT) Portfolios on each of the valuation dates in the current financial year, in equal installments over the year. The net depreciation on these portfolios of the Bank amounted to Rs.6478.800 Millions as against which provision of Rs.4661.600 Millions is held as on 30th September, 2013.
9. In terms of RBI Circular DBOD.BP.BC.2/21.06.201/2013-14 dated July 1, 2013 Banks are required to make First set of Half Yearly disclosures related to the Composition of Capital with effect from September 30, 2013. Accordingly, Pillar 3 disclosures under Basel III Capital Regulations are being made available on our website at the link http://www.bankofindia.co.in/english/Regdisclosuresec.aspx.These disclosures have not been subjected to a Limited review by the auditors.
10. The Bank has raised Tier 2 capital via issuance of Basel III Compliant Bonds of Rs.15000.000 Millions during the Current quarter ended 30th September, 2013 with maturity period of 10 years.
11. The Provision Coverage Ratio as at 30thSeptember, 2013 is 63.29%.
12. Information on Investor Complaints pursuant to Clause 41 of the Listing Agreement, for the quarter ended 30thSeptember, 2013 :
Pending as on 30.06.2013 : NIL b. Received during the quarter : 29
Resolved during the quarter : 29 d. Pending as on 30.09.2013 : NIL
13. Figures of the previous period have been regrouped / rearranged wherever considered necessary.
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 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.61.96 |
|
|
1 |
Rs.101.14 |
|
Euro |
1 |
Rs.85.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
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 |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
81 |
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.