MIRA
INFORM REPORT
|
Report Date : |
26.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
CORPORATION BANK |
|
|
|
|
Registered
Office : |
Post Box No. 88, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Year of Establishment
: |
1906 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1529.144 Millions |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRC04854D |
|
|
|
|
Legal Form : |
Public Sector Bank. The Banks Shares are Listed on the Stock Exchange.
|
|
|
|
|
Line of Business
: |
Banking and Other Related Services. |
|
|
|
|
No. of Employees
: |
9277 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 380000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a profit making Government of India bank. It is a well-established bank having a good track record. There
appears slight dip in its profit during 2013. The external borrowing seems to
be huge. However, general financial position seems to be good. The bank gets
strong financial support from government. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitments. The bank can be considered for normal business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
Uptick in agriculture and construction spread some
cheer as the economy grew a higher-than-expected 4.8 % in the three months
through September. Manufacturing rose an annual rate
per cent during the quarter and mining fell by 0.4 %, government data showed
while farm output rose 46%.
India has emerged as
the most attractive investment destination, thanks to a relaxation in foreign
direct investment norms, says a report. India is followed by Brazil and China
in the ranking part of EY’s Capital Confidence
Barometer report based on a survey across 70 nations. The US, France and Japan
have emerged as the top three investors likely to invest in India.
India has been
ranked 83rd globally in terms of talent competitiveness of its human
capital. Switzerland, Singapore, Denmark, Sweden and Luxembourg are the
top five in the list of 103 nations compiled by INSEAD business school.
Tax rates for
companies in India are among the highest in the world and the number of
payments is also more than the global average putting the country at low, 158th
rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the
time taken for tax payments is relatively less in India which is rated ahead of
China and Japan.
1
billion smartphone shipments in 2013, a 39.3 % growth
over 2012. This was being
driven by low cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion
units, resulting in a compound annual growth rate of 18.4 % between 2013 and 2017,
according to research from IDC.
20
% vacancy rate of office space in Mumbai and Delhi in the third quarter, the
highest in Asia after Chengdu, in China. According to Cushman and Wakefield, six
Indian cities are among the 10 office markets with the worst vacancies.
Foreign banks will
not have to pay stamp duty and capital gains tax, if they convert their branch
operations into a wholly owned subsidiary, according to the Reserve Bank of
India.
The Reserve Bank of
India is planning to launch CPI – indexed bonds aimed to protecting the savings
of retail investors from the impact the price rise by December end.
Central Bureau of
Investigation has booked State Bank of India, Deputy Managing Director Shyamal Acharya and others in a
graft case related to distribution of a loan of over Rs
4000 mn. Gold and jewellery worth Rs 6.7 mn have been recovered from the residence of Acharya.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Lower Tier II Bonds=AAA |
|
Rating Explanation |
Higher degree of safety and carry very low
credit risk. |
|
Date |
01.11.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Upper Tier II Bonds=AAA |
|
Rating Explanation |
Highest degree of safety and carry very low
credit risk. |
|
Date |
01.11.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Perpetual Bond=AAA |
|
Rating Explanation |
Highest. |
|
Date |
01.11.2013 |
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.
LOCATIONS
|
Registered/ Corporate Office : |
Post Box No. 88, Mangala Devi Temple Road, Mangalore – 575001, Karnataka, India |
|
Tel. No.: |
91-824-2426416-420/ 2427911-13/ 24311685/ 2424971 (Direct) |
|
Fax No.: |
91-824-2441208/ 2425233/ 2423853/ 2444617/ 2440964 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
General Office : |
18-20, Kasturba Gandhi Marg,
New Delhi – 110 001, India |
|
|
|
|
Branch Office : |
104, Bharat House, Mumbai Samachar Marg, Fort, Mumbai –
400 023, Maharashtra, India |
|
Tel. No.: |
91-22-22693431/ 22670030/ 22677088 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Ajay Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amar Lal Baultani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B. K. Srivastav |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. L. K. Meena |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Anna Roy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. U. S. Paliwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vincent D’Souza |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kaushik Kumar Ghosh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sushobhan Sarker |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kawaljit Singh Oberoi
|
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Shabber Pasha |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. K. Rama Murthy |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. C. G. Pinto |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. C G Pinto |
|
Designation : |
General Manager
and Chief Financial Officer |
|
|
|
|
Name : |
Mr. H. S. Saini |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. B Narayana Shenoy |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S. Pattabiraman |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. Giridhar Shenoy |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. P Rajaram Karanth |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. V. Raghava Kamath |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. B K Divakara |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. P. Suresh Chandra Baliga
|
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Jai Kumar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mrs. Swathi S. M.
|
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Vasant Kini U. |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. S. Somayaji
|
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. B. B. Tejappa |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. G. Subramanian |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. N. B. Kulasekaran |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Thangaraju V. |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. P. Paramasivam |
|
Designation : |
General Manager |
SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Names of Shareholders |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
Central Government / State Government(s) |
91477691 |
59.82 |
|
|
91477691 |
59.82 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
91477691 |
59.82 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4402323 |
2.88 |
|
|
268847 |
0.18 |
|
|
40301245 |
26.36 |
|
|
4814911 |
3.15 |
|
|
49787326 |
32.56 |
|
|
|
|
|
|
2167812 |
1.42 |
|
|
|
|
|
|
7339296 |
4.80 |
|
|
1327997 |
0.87 |
|
|
814269 |
0.53 |
|
|
169747 |
0.11 |
|
|
632127 |
0.41 |
|
|
5100 |
0.00 |
|
|
7295 |
0.00 |
|
|
11649374 |
7.62 |
|
Total Public shareholding (B) |
61436700 |
40.18 |
|
Total (A)+(B) |
152914391 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
152914391 |
0.00 |
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BUSINESS DETAILS
|
Line of Business : |
Banking and Other related services |
GENERAL INFORMATION
|
No. of Employees : |
9277 (Approximately) |
|
|
|
|
Bankers : |
Reserve Bank of India |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Central Auditors : |
· Vinod Kumar and Associates Chartered Accountant · O P Totla and Company Chartered Accountant · Rajendra K. Goel and Company Chartered Accountant
· K. Varghese and Company Chartered Accountant · V. Narayanan and Company Chartered Accountant · Suresh Chandra and Associates Chartered Accountant |
|
|
|
|
Subsidiaries : |
· Corpbank Securities Limited |
|
|
|
|
Associates (RRB): |
·
Chikmagalur Kodagu Grameena Bank (Chiko Bank) |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000000 |
Equity Shares |
Rs.10/- each |
Rs.30000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
148129254 |
Equity Shares |
Rs.10/- each |
Rs.1481.293millions |
|
|
Addition/ (Forfeited) during the year |
|
Rs.47.851 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1529.144 Millions |
Paid-up Capital :
|
Held by Central
Government |
Rs.914.734
Millions |
|
|
|
|
Held by the
Public And Others |
Rs.614.410
Millions |
|
Forfeited during
the year |
Rs.0.000
Millions |
|
|
|
|
Total |
Rs.1529.144
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Share Capital |
1529.144 |
1481.293 |
1481.306 |
|
Reserves &
Surplus |
94127.828 |
81277.963 |
69896.782 |
|
Deposits |
1660054.547 |
1361422.006 |
1167474.977 |
|
Borrowings |
128988.463 |
142480.966 |
159653.815 |
|
Other Liabilities
& Provisions |
49723.353 |
48941.981 |
36579.051 |
|
|
|
|
|
TOTAL
|
1934423.335 |
1635604.209 |
1435085.931 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash &
Balances with RBI |
88478.457 |
92882.345 |
81423.158 |
|
Balances with
Banks & money at Call & Short notice |
38354.764 |
24097.593 |
22501.914 |
|
Investments |
581644.943 |
474746.305 |
434527.423 |
|
Advances |
1187166.456 |
1004690.208 |
868504.042 |
|
Fixed Assets |
4431.985 |
3559.766 |
3289.691 |
|
Other Assets |
34346.730 |
35627.992 |
24839.703 |
|
|
|
|
|
TOTAL
|
1934423.335 |
1635604.209 |
1435085.931 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
Income |
|
|
|
|
|
Interest Earned |
153340.827 |
130177.842 |
91352.483 |
|
|
Other Income |
16079.383 |
14926.194 |
12558.770 |
|
|
TOTAL |
169420.210 |
145104.036 |
103911.253 |
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
Interest expended |
119082.344 |
98708.853 |
61955.053 |
|
|
Operating Expenses |
19967.812 |
17835.500 |
16417.099 |
|
|
Provisions & Contingencies |
16023.306 |
13499.258 |
11406.422 |
|
|
TOTAL |
155073.462 |
130043.611 |
89778.574 |
|
|
|
|
|
|
|
|
Net Profit for the year |
14346.747 |
15060.425 |
14132.679 |
|
|
|
|
|
|
|
|
Appropriations |
|
|
|
|
|
Transfer to Statutory Reserves |
3586.687 |
3850.000 |
3750.000 |
|
|
Transfer to Staff Welfare Fund |
150.000 |
150.000 |
150.000 |
|
|
Transfer from/to (net) Investment
Reserve |
40.981 |
-- |
-- |
|
|
Transfer to Capital Reserve |
398.762 |
213.748 |
30.534 |
|
|
Special Reserves |
3430.000 |
4070.000 |
910.000 |
|
|
Transfer to General Reserves |
3401.287 |
3247.394 |
5848.877 |
|
|
Interim Dividend Paid |
-- |
-- |
-- |
|
|
Proposed Dividend |
2905.373 |
3036.660 |
2962.651 |
|
|
Tax on Interim Dividends Paid |
-- |
-- |
-- |
|
|
Tax on Dividends Proposed |
433.657 |
492.623 |
480.617 |
|
|
|
|
|
|
|
|
Earning per shares |
96.74 |
101.67 |
98.50 |
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 |
No |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
No |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
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 |
LITIGATION
DETAILS:
|
HIGH COURT OF KARNATAKA QUERY ON CASE NUMBER Select Bench Principal Bench
Bangalore
CASE PENDING
|
PERFORMANCE AT A
GLANCE:
·
Total Business of the Bank reached an impressive figure
of Rs.2847220.000 Millions as on 31st March 2013, recording an absolute growth
of Rs.481110.000 Millions over the 31.03.2012 business figure of Rs.2366110.000
Millions, at a growth rate of 20.33%.
·
The total deposits of the Bank increased to
Rs.1660050.000 Millions as on 31.03.2012 from Rs.1361420.000 Millions as on 31st
March, 2012 registering a growth of 21.94% y-o-y.
·
The Bank continued its prudent approach in
expanding quality credit assets in line with its policy on Credit Risk
Management. The Bank’s credit figure reached a level of Rs.1187170.000 Millions
as on 31.03.2013 from Rs.1004690.000 Millions as on 31st March, 2012, recording
an absolute growth of Rs.182470.000 Millions at a growth rate of 18.16%. During
the financial year, focused attention was given for accelerated lending under
Agriculture, SSI, SMEs and midsize corporate and
retail segments for expansion of credit.
·
The Bank continued its good performance under
recovery of NPAs. During the financial year, the Bank
effected a cash recovery and upgradation
of NPAs of RS.15093.000 Millions as compared to
Rs.7586.000 Millions in the previous financial year.
·
The Bank recorded an encouraging performance in
different functional areas during the financial year 2012-13 which resulted in
achieving a Net Profit figure of Rs.14346.700 Millions.
·
As on 31.03.2013, the Bank had 6677 functional
units spread across 26 States comprising of 1707 Branches, 1425 ATMs and 3545
Branchless banking units.
INCOME ANALYSIS:
·
Interest Income of the Bank recorded a growth of
Rs.23163.000 Millions (17.79%) from Rs.130177.800 Millions in the year 2011-12
to Rs.153340.800 Millions, as against the Interest expenses which grew by
20.64% from Rs.98708.800 Millions during the financial year 2011-12 to
Rs.119082.300 Millions during the year 2012-13. The Net Interest Income
recorded a growth of Rs.2789.600 Millions [8.86%] during the same period.
·
The total Income of the Bank [total of Interest
Income and Non-Interest Income] improved to Rs.169420.200 Millions during the financial year 2012-13
from Rs.145104.000 Millions in the previous financial year recording a rise of
Rsd.24316.200 Millions [16.76%].
·
Non-Interest Income from Core Areas increased by
RS.1550.800 Millions [18.65%] from Rs.8317.100 Millions in the financial year
2011-12 to Rs.9867.900 Millions in the financial year 2012-13. The Total
Non-Interest Income has increased from Rs.14926.200 Millions as on 31.03.2012
to Rs.16079.400 Millions as on 31.03.2013 by 7.73%.
·
The Net Interest Income reached a level of
Rs.34258.500 Millions during the financial year from Rs.31468.900 Millions as
on 31.03.2012.
·
The Operating Expenses has shown an increase of
11.96% during the financial year 2012-13 and stood at Rs.19967.900 Millions as
compared to Rs.17835.500 Millions in 2011-12.
·
The Cost to Income Ratio stood at 39.67%.
MANAGEMENT
DISCUSSION AND ANALYSIS:
MONETARY AND
CREDIT POLICY 2012-13
·
The Annual Monetary Policy 2012-13 was formulated
in a challenging macro economic environment. At the Global level, the
euro area sovereign debt problem continued to weigh on the global
economy. Growth risks have emerged in emerging and developing economies
(EDEs).
·
Domestically, the state of the economy was a matter
of growing concern. Though inflation moderated, it remained sticky
and above the tolerance level, even as growth slowed. Significantly,
these trends were occurring in a situation in which concerns over the
fiscal deficit, the current account deficit and deteriorating asset
quality loom large. In this context, the challenge for monetary policy
was to maintain its vigil on controlling inflation while being sensitive
to risks to growth and other vulnerabilities.
·
Based on these assessment
of a normal monsoon and an expected better performance of industry
compared to previous year the baseline GDP growth for 2012-13 was
projected at 7.3%. Keeping in view the domestic demand-supply balance,
the global trends in commodity prices and the likely demand scenario,
the baseline projection for WPI inflation for March 2013 was placed at
6.5%.
·
Consistent with growth and inflation projections,
M3 growth for 2012-13, for policy purposes, was projected at 15%. Consequently,
aggregate deposits of SCBs were projected to grow
by 16%.
·
Keeping in view the need to balance the resource
requirements of the private sector and the public sector, growth in
non-food credit of SCBs was projected at 17%.
·
After raising the policy rate by 375 basis points
during March 2010-October 2011, to contain inflation and anchor inflation
expectations, the Reserve Bank paused in its midquarter
review (MQR) of December 2011. Subsequent growthinflation
dynamics prompted the Reserve Bank to indicate that no further
tightening was required and that future actions would be towards
lowering the rates.
·
Against this backdrop, the stance of monetary
policy was intended to:
Ø Adjust policy
rates to levels consistent with the current growth moderation.
Ø Guard against risks
of demand-led inflationary pressures reemerging.
Ø Provide a greater
liquidity cushion to the financial system.
·
On the basis of its policy stand, the Reserve Bank
of India decided to reduce the repo rate under the
liquidity adjustment facility (LAF) by 50 basis points from 8.5% to 8.0%. The
reverse repo rate automatically adjusted to 7.0%. The
MSF rate, determined with a spread of 100 basis points above the repo rate, adjusted to 9.0%. In order to give greater
liquidity cushion the Reserve Bank raised the borrowing limit of under the MSF
from 1% to 2% of their net demand and time liabilities (NDTL) outstanding at
the end of second preceding fortnight with immediate effect. The cash reserve
ratio (CRR) of scheduled banks was retained at 4.75% of their NDTL.
·
Some other important regulatory & developmental
measures proposed were as follows:
Ø To mandate SLBCs to prepare a roadmap covering all unbanked
villages of population less than 2,000 and notionally allot these villages to
banks for providing banking services in a time-bound manner.
Ø Banks were advised
to offer a ‘basic savings bank deposit account’ with certain minimum common
facilities and without the requirement of a minimum balance to all their
customers.
Ø Banks were
mandated not to levy foreclosure charges or pre-payment penalties on home loans
extended on a floating interest rate basis.
Ø Banks were advised
to initiate steps to allot a unique customer identification code (UCIC) number
to all their customers. Existing individual customers may be allotted unique
customer identification code by end-April 2013.
Ø Banks should have
a board approved transparent policy on pricing of liabilities and they should
also ensure that variation in interest rates on single term deposits of Rs.1.5
million and above and other term deposits is minimal.
Ø Banks should
reduce their regulatory exposure ceiling to a single NBFC, having gold loans to
the extent of 50% or more of its total financial assets, from the existing 10%
to 7.5% of bank’s capital funds.
Ø To mandate banks
to put in place a robust mechanism for early detection of signs of distress,
and measures, including prompt restructuring in the case of all viable accounts
wherever required, with a view to preserving the economic value of such
accounts; and to mandate banks to have proper system generated segment–wise
data on their NPA accounts, write-offs, compromise settlements, recovery and
restructured accounts.
Ø To mandate banks
to have a board approved policy on classification of unclaimed deposits;
grievance redressal mechanism for quick resolution of
complaints; record keeping; and periodic review of such accounts.
Ø With a view to
address the issue of counterfeit notes in circulation, banks were advised to
ensure that notes received over the counters are re-circulated only after
ensuring their proper authentication through machines.
Ø Keeping in view
the extended geographical spread of bank branch network and leveraging on
technology, RBI decided to channelize the
distribution of currency and coins only through currency chests and bank
branches.
MACRO-ECONOMIC
SCENARIO IN 2012-13
·
As per the advance estimate of Central Statistics
Office (CSO)’s India’s GDP growth is expected to moderate to 5% in FY13, which
will be lowest growth rate of the country in a decade. The slowdown was mainly
due to the moderation in industrial activity aggravated by domestic supply
bottlenecks, and slowdown in the services sector reflecting weak external
demand.
·
As per advance estimate, the agricultural sector is
likely to slow down to 1.8% in 2012-13, compared to 3.6% 2011-12. Manufacturing
growth is also expected to drop to 1.9% in FY13, from 2.7% in previous year.
The services sector including finance, insurance, real estate and business
services sectors are likely to grow by 8.6% in FY13, against 11.7% in FY12.
However, the growth in the mining and quarrying is likely to be better at 0.4%,
compared to contraction of growth of 0.6% a year ago.
·
The growth in index of industrial production (IIP)
decelerated to 1.0% during 2012-13 from 2.9% in the corresponding period of the
previous year. As peruse-based classification, while capital goods registered a
negative growth of 6.3%, Basic goods and Intermediate goods registered a growth
of 2.3% and 1.2% respectively. The Consumer durables and Consumer non-durables
have recorded growth of 2.1% and 2.7% respectively, with the overall growth in
Consumer goods being 2.4%. For the April-March 2013-14, the cumulative growth
for eight core industries stood at 2.6%, lower than the 5.0% growth seen in the
same period last year.
·
Headline inflation, as measured by the wholesale
price index (WPI), moderated to an average of 7.3% in 2012-13 from 8.9% in the
previous year. The easing was particularly significant in Q4 of 2012-13, with
the year-end inflation recording at 6.0%. Non-food manufactured products
inflation ruled above the comfort level in the first half of 2012-13 but
declined in the second half to come down to 3.5% by March, reflecting easing of
input price pressures and erosion of pricing power. Largely driven by food
inflation, retail inflation, as measured by the new combined (rural and urban)
consumer price index (CPI) averaged 10.2% during 2012-13. Even after excluding
food and fuel groups, CPI inflation remained sticky, averaging 8.7%.
·
India’s cumulative value of exports for April-March
2012-13 stood at $300.57 billion as against $305.96 billion, registering a
negative growth of 1.76%. The value of imports for the period April-March,
2012-13 was US $ 491.48 billion as against US $ 489.32 billion registering a growth
of 0.44% over the same period last year. The trade deficit for April - March,
2012-13 was estimated at US $ 190.92 billion which was higher than the deficit
of US $ 183.36 billion during April -March, 2011-12.
·
India’s Current Account Deficit (CAD) reached a
record level of 6.7% of GDP for Q3 of 2012-13. The average CAD levels for the
first three quarters is around 5.3% of GDP and as per the initial estimate it
is likely to be around 5% of GDP for the whole year. This is higher than
previous year record level of CAD at 4.2% of GDP in FY12.
·
During 2012-13, the country’s foreign exchange
reserves declined by US $1.75 billion and stood at US $292.65 billion as on
29th March 2013.
·
The growth outlook for 2013-14 depends upon a
combination of global and domestic macro-economic factors. The current
projections for GDP growth for FY14 by various agencies and financial
institutions range from 5.7% to 6.7%. While the RBI projected a growth to 5.7%
in FY14, the projection of Economic Survey was within the range of 6.1- 6.7%.
The projections are showing a moderate improvement in economic growth in FY14
compared to previous year. However, overall growth prospects of the economy
really depend on the revival of industrial sector and growth pick up in services
sector and a revival of investment climate in the economy.
BANKING TRENDS IN
2012-13
·
The combination of growth slowdown, persistence of
inflation, rising bad loans and resultant restructuring of loans have posed a
significant challenge for the performance of banking industry during 2012-13.
·
Taking cognizance of falling growth, the Reserve
Bank lowered policy interest rate and the SLR by 100 bps each, and the CRR by
75 bps in 2012-13. Accordingly, Repo and Reverse Repo came down to 7.5% and 8.5% respectively and SLR to
23%, while CRR reduced to 4%. It also undertook liquidity injections through
outright purchases of G-secs as a part of open market
operations (OMOs) totaling about Rs.1.5 trillion
during the year.
·
The credit and deposit growth of Scheduled
Commercial Banks’ (SCBs’) in FY13 was quite subdued
clearly showing a lower economic activity. The deposit growth of SCBs has registered a marginal improvement by registering a
growth of 14.3% at the end of March 2013 (22nd March 2013) as against 13.5% in
the corresponding period last year. However, much of the growth in deposit mobilisation has happened in Q4 of FY13. Non-food credit
growth decelerated from 18.2% at the beginning of 2012-13 and remained close to
16.0% for the major part of the year. By March 2013, non-food credit growth
dropped to 14.0%, lower than the indicative projection of 16.0% of RBI.
·
Money supply (M3) growth was around 14.0% during Q1
of 2012-13 but decelerated thereafter to 11.2% by end- December as time deposit
growth slowed down. Consequent to the pickup of deposit in Q4 of FY13, M3
growth reached 13.3% by end-March 2013.
·
Despite a large injection of liquidity through CRR
cuts and OMOs, liquidity conditions tightened
especially since November 2012, mainly due to large and persistent build-ups in
government cash balances. 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.1012 billion during the second half.
The Reserve Bank also injected liquidity to the tune of Rs.1546 billion through
open market operation (OMO) purchase auctions. The net injection of liquidity
under the LAF, which peaked at Rs.1808 billion on March 28, 2013 reflecting the
year-end demand.
·
In the currency market rupee showed high
volatility, especially during the first half of FY13 and touched its all-time
low of 57.22 on July 27, 2013. Since mid-September 2012, rupee was showing some
stabilization in response to the various policy reforms initiated by the
government and resultant portfolio capital flows. Even though the rupee
witnessed some weakness during the second week of February to early March, it
remained largely range-bound.
BANK’S OPERATIONAL
PERFORMANCE:
DEPOSIT
MOBILISATION
·
During the year 2012-13 emphasis was laid on
clientele expansion with strategy of lining up a series of campaigns for CASA
growth. The campaigns saw opening of over 15.91 lakh
Current and Savings accounts. Key Branches and New branches were focused for
retail deposits. Two new deposit schemes named Corp Super Gain for 222
days and Corp Super Gains Plus for 444 days were launched during
December 2012 offering attractive interest rates. An amount of Rs.54000.000
Millions were mobilized under these deposit schemes. Encouraged by the
performance under these schemes, one more new deposit scheme by name Corp
Power Plus for 555 days was launched during January 2013, under which
Rs.30290.000 Millions was mobilized till March 2013.
PERFORMANCE
HIGHLIGHTS
·
The Non-Bank Deposits of the Bank has reached a
level of Rs.1465240.000 Millions as at 31st March, 2013, registering a
year-on-year growth of Rs.299230.000 Millions at 25.66%. The total deposits of
the Bank including CD’s reached a level of Rs.1660050.000 Millions as at 31st
March 2013, registering year on- year growth of Rs.298630.000 Millions at
21.94%.
·
Current Deposits stood at `15180 crore as against Rs.122750.000 Millions in the previous
year.
·
Savings Deposits reached Rs.207590.000 Millions
with net accretion of Rs.29510.000 Millions at 16.57% Y-O-Y growth.
·
The Share of Demand Deposits in total Non-Bank
Deposits stood at 24.52%.
·
Term deposits reached a level of Rs.1105840.000
Millions with a net accretion of Rs.240660.000 Millions at a growth rate of
27.82% Y-O-Y.
·
The Average Non Bank Deposits of the Bank increased
by Rs.191230.000 Millions and stood at Rs.1198830.000 Millions as at 31st
March, 2013 recording a growth of 18.98% year-on year. Average CASA grew by
7.98% with net accretion of Rs.18820.000 Millions and stood at Rs.254710.000
Millions.
·
The Bank has added 20,37,706
new Deposit Accounts during the year of which 17,65,233 new accounts have been
added under Demand Deposits.
PRESS RELEASE
CORPORATION
BANK ALLOTS 1460.000 MILLIONS EQUITY SHARES TO GOVT OF INDIA
Corporation Bank has informed BSE that the Securities Allotment Committee of the Board of the Bank at its meeting held on December 20, 2013 has allotted 1,46,27,486 Equity Shares of Rs.10/- each at a premium of Rs.297.64 per share i.e. at an Issue price of Rs.307.64 per share to Government of India (i.e. in the name of President of India) on a Preferential basis. Consequent upon this the Issued and Subscribed Capital of the Bank gets raised to 16,75,41,877 Equity Shares and Government of India holding gets increased from 59.82% to 63.33%.The Equity shares so allotted shall rank pari-passu with the existing equity shares of the Bank including Dividend, if any and the same shall be locked in for a period of 3 years from the date of trading approval, as per the SEBI (ICDR) Regulations, 2009.The allotment is made in terms of the provisions of Chapter VII of the SEBI (issue of Capital and Disclosure Requirements) Regulations, 2009 issued by Securities and Exchange Board of India (SEBI) and as per consent accorded by the shareholders of the Bank at its Extraordinary General Meeting held on December 16, 2013.Source : BSE
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.61.87 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.84.65 |
INFORMATION DETAILS
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
68 |
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.