|
Report Date : |
30.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
THE SHAMRAO VITHAL CO-OPERATIVE BANK LIMITED |
|
|
|
|
Registered
Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
27.12.1906 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.831.100 Millions |
|
|
|
|
Legal Form : |
Co-operative Bank |
|
|
|
|
Line of Business
: |
Subject is providing wide range of Banking and Financial Services including Commercial Banking and Treasury Operations. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 41000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an old and well established and reputed co-operative bank
having a fine track record. The performance capability and financial strength
is good. Trade relations are reported as trustworthy. Business is active.
Payments are reported to be regular and as per commitments. The subject can be considered good 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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
India |
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.
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 Office /
Corporate Office / Mumbai Head Office: |
SVC Tower, Nehru Road, Vakola, Santacruz (East), Mumbai – 400055, Maharashtra, India |
|
Tel. No.: |
91-22-66999999 (Baroda) 91-22-66999777 (Marketing) 91-22-66999888 (Telebanking ) |
|
Fax No.: |
91-22-66999818 |
|
Website : |
|
|
|
|
|
Information
Technology Department, Operations, Card Division, Alternative
Business Channels, Centralized Account Opening, Personalised Cheque
Book, DEMAT Cell, RTGS Cell, Facilities, Marketing, Audit
and Inspection: |
Dosti Pinnacle, Unit Nos. 601-602-603, Dosti Pinnacle, Plot No. E-7, Road No.22, Wagle Estate, Thane 400604, Maharashtra, India |
|
|
|
|
International
Banking Division / Foreign Exchange: |
Maker Towers ‘E’, 1st Floor, Cuffe Parade, Mumbai – 400 005, Maharashtra, India |
|
Tel. No.: |
91-22-67444536/40 |
|
Fax no.: |
91-22-67444531/76 |
|
|
|
|
Service Branch
(Clearing Dept.) Mumbai: |
Building No C Chitrapur CHS Limited, 27th Road, TPS III, Bandra (West), Mumbai-400050, Maharashtra, India |
|
Tel. No.: |
91-22-26407369 / 26405073 / 26405066 |
|
|
|
|
Retail Assets Cell: |
Mangesh Sadan, Kasturba Cross Road No. 1, Borivali (East), Mumbai 400 066, Maharashtra, India |
|
Tel. No.: |
91-22-2808 7646 / 2807 5307 |
|
Fax No.: |
91-22-2805 9534 |
|
|
|
|
Regional Office : |
DGM’s Office, 1, Central Bank Road, Chamrajpet, Bangalore – 560018, India |
|
Tel. No.: |
91-80-26604456 |
|
Fax No.: |
91-80-26674014 |
|
|
|
|
Regional Office, Pune
and Kolhapur Region: |
303, Chintamani Pride, Near City Pride Kothrud Theatre, Kothrud, Pune – 411 038, Maharashtra, India |
|
Tel No.: |
91-20-60606071, 60606072,60606073, 60606074 |
|
|
|
|
D.M.’s Office
Kolhapur: |
Unit No. O-2, Mahavir Chambers, C.S.NO. 681 B E Ward Shahupuri, 2nd lane, Kolhapur - 416 001, Maharashtra, India |
|
Tel. No.: |
91-231-2659527/2667938 |
|
Fax No.: |
91-231-2667724 |
|
|
|
|
Centralised
Clearing Processing Cell (Mumbai): |
Lower Basement,Vanvaria Apartment Junction of 2nd Road and SV Road, Near Khar Railway Station, Khar (West), Mumbai – 400 052, Maharashtra, India |
|
Tel No.: |
91-22- 26057285 / 26057286 |
|
|
|
|
Branches : |
Located At : · Maharashtra · Aurangabad · Nashik · Pune · Kolhapur · Nagpur · Karnataka · Bengaluru · Andhra Pradesh · Goa · Gujarat · Madhya Pradesh · New Delhi · Tamil Nadu |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Udaykumar P. Gurkar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Dilip P. Sashital |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dinesh G. Kumta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prakash A. Bijoor |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ratnakar N. Gokarn |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ravindra K. Kulkarni |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Satish N. Kudyadi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vinod G. Yennemadi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vivek D. Yennemadi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shrinivas D. Joshi |
|
Designation : |
Chief Executive Officer |
KEY EXECUTIVES
|
Name : |
Mr. Ravikiran S. Mankikar |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Himangee C. Nadkarni |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Dilip J. Pendse |
|
Designation : |
Deputy General Manager |
|
|
|
|
General Managers : |
·
Mr. Ajit E. Venugopalan ·
Mr. Ajit N. Kulkarni ·
Mr. Salil A Datar |
|
|
|
|
Assistant General Manager : |
·
Mr. Amita G. Mavinkurve ·
Mr. Anil G. Bapat ·
Mr. Dinkar P. Hosangadi ·
Mr. G. Harindran Pillai ·
Mr. Manoj M. Rane ·
Mr. Neeta P. Naik ·
Mr. Pundalik V. Rajadhyax ·
Mr. Rajendra S. Rane ·
Mr. Satish S. Rawool ·
Mr. Shailesh M. Nadkarni ·
Ms. Subbalakshmi M. Shirali ·
Mr. Sunil B. Puranik ·
Mr. Vinay R. Rao ·
Mr. Vinodkumar B. Soni ·
Mr. Vivek A. Mandlik |
|
|
|
|
Division Managers : |
·
Mr. Ajay V. Sonarikar ·
Mr. Ameeta S. Walawalkar ·
Mr. Ashok K. Rao ·
Mr. Chaitanya S. Pandit ·
Mr. Chidanand N. Puthran ·
Mr. Ganesh H. Puthran ·
Mrs. Gayatri P. Gangoli ·
Mr. Geeta R. Mirji ·
Mr. Guru A. Kowshik ·
Mr. Harish G. Aldangadi ·
Mr. Mahesh N. Inamdar ·
Mr. Raghupathy Parmeshwar ·
Mr. Ramanand K. Nagarmat ·
Mr. Sachin P. Nadkarni ·
Mr. Sandeep G. Nadkarni ·
Mr. Sanjay B. Patil ·
Mr. Shivanand D. Hemmady ·
Mrs. Smita S. Surkund ·
Mr. Suhas R. Abhyankar ·
Mrs. Suman W. Nazareth ·
Mr. Sunit S. Tijare |
BUSINESS DETAILS
|
Line of Business : |
Subject is providing wide range of Banking and Financial Services including
Commercial Banking and Treasury Operations. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
·
Reserve Bank of India |
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
V. J. Kulkarni and Associates Chartered Accountant |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Shares |
Rs.25/- each |
Rs. 1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33028663 |
Equity Shares |
Rs.25/- each |
Rs. 825.700
Millions |
|
|
Paid Up Capital of Acquired Bank (Bangalore Central Co-Operative Bank
Limited) |
|
Rs. 5.400 Millions |
|
|
TOTAL |
|
Rs. 831.100
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
CAPITAL AND LIABILITIES |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
CAPITAL |
831.100 |
828.600 |
830.200 |
|
RESERVE FUND AND OTHER RESERVES |
9405.600 |
6949.400 |
6362.500 |
|
DEPOSITS AND OTHER ACCOUNTS |
90213.700 |
77267.100 |
63108.100 |
|
BORROWINGS |
1414.900 |
1040.700 |
1015.100 |
|
BILLS FOR COLLECTION |
1089.600 |
866.900 |
505.100 |
|
BEING FOR RECEIVABLE |
|
|
|
|
(As per Contra) |
|
|
|
|
|
|
|
|
|
BRANCH ADJUSTMENTS |
0.000 |
0.000 |
2.000 |
|
OVERDUE INTEREST RESERVES – I |
42.300 |
45.200 |
39.500 |
|
|
|
|
|
|
OVERDUR INTEREST RESERVES – II |
424.600 |
269.900 |
307.800 |
|
INTEREST PAYABLE |
232.900 |
194.400 |
2.900 |
|
OTHER LIABILITIES |
3853.200 |
1783.400 |
1915.800 |
|
PROFIT AND LOSS ACCOUNTS |
24.900 |
24.600 |
24.800 |
|
DEFERRED TAX LIABILITY |
89.800 |
67.100 |
25.500 |
|
|
|
|
|
|
GRAND
TOTAL |
107622.600 |
89337.300 |
74139.300 |
|
|
|
|
|
|
CONTINGENT LIABILITIES |
7721.800 |
5743.100 |
4440.900 |
|
|
|
|
|
|
PROPERTY AND
ASSETS |
|
|
|
|
|
|
|
|
|
CASH |
7141.200 |
5750.700 |
4622.700 |
|
BALANCES WITH OTHER BANKS |
4278.000
|
5836.100
|
3485.700
|
|
MONEY AT CALL AND SHORT NOTICE |
0.000 |
0.000 |
0.000 |
|
INVESTMENTS |
25597.500 |
22002.200 |
18658.900 |
|
ADVANCES |
60449.900 |
49507.800 |
42022.300 |
|
|
|
|
|
|
INTEREST RECEIVABLE |
|
|
|
|
ON INVESTMENTS AND STAFF HOUSING LOANS |
630.700 |
827.500 |
605.900 |
|
ON ADVANCES-II |
424.600 |
269.900 |
307.800 |
|
BILLS RECEIVABLE |
1089.600 |
866.900 |
505.100 |
|
BEING BILLS FOR COLLECTION |
|
|
|
|
(As per Contra) |
|
|
|
|
|
|
|
|
|
BRANCH ADJUSTMENT |
5.700 |
1.400 |
0.000 |
|
PREMISES |
4675.000 |
2711.900 |
2438.300 |
|
FURNITURE & FIXTURES |
253.700 |
180.100 |
145.700 |
|
OTHER FIXED ASSETS |
402.800 |
330.800 |
264.600 |
|
OTHER ASSETS |
2666.500 |
1040.900 |
1067.500 |
|
ACQUISITION COSTS |
7.400 |
11.100 |
14.800 |
|
|
|
|
|
|
GRAND
TOTAL |
107622.600 |
89337.300 |
74139.300 |
PROFIT & LOSS
ACCOUNT
|
EXPENDITURE |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
INTEREST ON DEPOSITS |
6963.200 |
5486.000 |
3843.500 |
|
INTEREST ON BORROWINGS |
102.800 |
99.400 |
56.300 |
|
SALARIES AND ALLOWANCES |
818.600 |
698.500 |
539.600 |
|
DIRECTORS FEES, TRAVELLING AND CONVEYANCE |
3.200 |
3.500 |
3.000 |
|
RENT, RATES, TAXES, SERVICE CHARGES, INSURANCE AND LIGHTING |
336.600 |
257.400 |
210.400 |
|
|
|
|
|
|
LEGAL AND PROFESSIONAL CHARGES |
46.400 |
41.000 |
29.000 |
|
POSTAGE, TELEGRAMS AND TELEPHONE CHARGES |
12.700 |
8.600 |
8.900 |
|
TRAVELLING AND CONVEYANCE |
12.500 |
11.000 |
7.800 |
|
AUDIT FEES |
13.300 |
10.800 |
10.200 |
|
REPAIRS AND MAINTENANCE |
86.200 |
70.100 |
65.700 |
|
DEPRECIATION ON FIXED ASSETS |
152.100 |
126.600 |
107.300 |
|
DEPRECIATION ON SECURITIES |
2.100 |
3.200 |
2.900 |
|
PREMIUM ON SECURITIES AMORTISED |
9.900 |
9.000 |
8.600 |
|
LOSS ON SALE OF SECURITIES |
13.000 |
13.000 |
8.100 |
|
PRINTING AND STATIONERY |
28.700 |
24.200 |
16.400 |
|
ADVERTISEMENT |
26.600 |
32.800 |
46.600 |
|
LOSS ON SALE OF ASSETS |
1.400 |
2.100 |
2.300 |
|
NETWORKING EXPENSES |
19.500 |
14.400 |
13.700 |
|
SUNDRY EXPENSES |
165.400 |
132.900 |
98.000 |
|
BAD DEBTS WRITTEN OFF |
331.100 |
305.700 |
312.700 |
|
ACQUISITION COST OF ACQUIRED BANKS AMORTISED |
3.700
|
3.700
|
3.700
|
|
|
|
|
|
|
PROVISIONS AND
CONTINGENCIES FOR |
|
|
|
|
|
|
|
|
|
GRATUITY PAYABLE TO STAFF |
20.900 |
51.600 |
51.600 |
|
BAD & DOUBTFUL DEBTS |
200.000 |
270.000 |
345.000 |
|
CONTINGENT PROVISION AGAINST STANDARD ASSETS |
80.100 |
34.400 |
23.800 |
|
INVESTMENT FLUCTUATION RESERVE |
11.700 |
8.100 |
2.700 |
|
DEVELOPMENT FUND |
29.000 |
28.000 |
90.000 |
|
LEAVE ENCASHMENT |
50.000 |
30.000 |
20.000 |
|
OTHER DOUBTFUL ASSETS |
4.900 |
0.000 |
0.000 |
|
|
|
|
|
|
INCOME TAX |
356.700 |
329.800 |
346.400 |
|
DEFERRED TAX |
22.700 |
41.600 |
28.600 |
|
NET PROFIT FOR
THE YEAR |
941.100 |
830.100 |
752.100 |
|
|
|
|
|
|
TOTAL |
10866.100 |
8977.500 |
7054.900 |
|
|
|
|
|
|
INCOME |
|
|
|
|
|
|
|
|
|
INTEREST ON ADVANCES |
7484.300 |
6011.200 |
4766.000 |
|
INCOME FROM INVESTMENTS |
2339.900 |
2034.300 |
1521.400 |
|
COMMISSION, EXCHANGE & BROKERAGE |
133.900 |
119.800 |
115.400 |
|
RENT ON SAFE DEPOSIT LOCKERS |
24.700 |
20.500 |
13.700 |
|
PROFIT ON SALE OF SECURITIES |
68.100 |
68.400 |
31.000 |
|
PROFIT ON SALES OF ASSETS |
0.500 |
20.500 |
0.900 |
|
OTHER INCOME |
394.300 |
326.100 |
241.600 |
|
BDDR WRITTEN BACK |
331.100 |
305.700 |
312.700 |
|
PROFIT ON EXCHANGE TRANSACTIONS |
50.000 |
44.000 |
27.700 |
|
RECOVERY FROM BAD DEBTS WRITTEN OFF |
69.300 |
27.000 |
24.500 |
|
|
|
|
|
|
TOTAL
|
10866.100 |
8977.500 |
7054.900 |
|
|
|
|
|
|
APPROPRIATIONS
SUBJECT TO AGM APPROVAL |
|
|
|
|
|
|
|
|
|
STATUTORY RESERVE FUND |
235.500 |
207.800 |
188.100 |
|
BUILDING FUND |
298.000 |
254.800 |
205.200 |
|
PROPOSED DIVIDEND @ 12% |
100.000 |
100.000 |
99.700 |
|
CONTINGENCY RESERVE |
94.100 |
83.100 |
75.300 |
|
CHARITABLE AND
CO-OPERATIVE PURPOSES: |
|
|
|
|
STAFF WELFARE |
1.800 |
1.500 |
1.200 |
|
MEMBERS WELFARE |
3.500 |
3.000 |
2.400 |
|
PUBLIC |
1.800 |
1.500 |
2.000 |
|
|
|
|
|
|
INVESTMENT FLUCTUATION RESERVE |
0.000 |
1.100 |
0.000 |
|
EDUCATION FUND |
9.400 |
8.300 |
7.500 |
|
EX-GRATIA TO STAFF |
126.200 |
104.100 |
77.500 |
|
SPECIAL RESERVE U/S 36(1)(VIII) OF INCOME TAX ACT, 1961 |
70.500 |
65.100 |
92.500 |
|
|
940.800 |
830.300 |
751.400 |
|
|
|
|
|
|
NET PROFIT
CARRIED TO BALANCE SHEET |
24.9000 |
24.600 |
24.800 |
|
|
|
|
|
|
TOTAL |
965.700 |
854.900 |
776.200 |
|
|
|
|
|
|
INCOME |
|
|
|
|
|
|
|
|
|
PROFIT BROUGHT FORWARD |
941.100 |
830.100 |
752.100 |
|
PROFIT FOR LAST YEAR |
24.600 |
24.800 |
24.100 |
|
|
|
|
|
|
TOTAL |
965.700 |
854.900 |
776.200 |
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 |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
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 |
No |
CASE
DETAILS
Bench
: Bombay
|
Stamp No.:- WPST/25826/2013 |
Filing Date :- 17.09.2013 |
|
Main Matter |
|
|
Stamp No.:- WP/8587/2013 |
Reg No.:- 17.09.2013 |
|
Petitioner :- M/S DIFFERENT
STROKES AND ANR- |
Respondent :- The Shamrao
Vithal Co-Operative Bank Limited, and ANR |
|
Petn. Adv. :- LEGAL CATALST |
|
|
District :- THANE |
|
Bench :- DIVISION |
|
Status :- Pre-Admission |
|
Next Date: 22.01.2014
Stage: For Production |
|
Coram: Hon’ble Shri
Justice A S Oka Hon’ble Shri Justice
S C Gupte |
|
Next Date:
04.12.2013
Stage: For Production |
|
Coram: Hon’ble Shri
Justice A S Oka Hon’ble Shri Justice
S C Gupte |
|
Act :-Securitisation
and Reconstruction of Financial Assets Act |
OVERVIEW
Subject was incorporated in 1906 and has completed its 107
years of providing wide range of Banking and Financial Services including
Commercial Banking and Treasury Operations.
ECONOMIC OUTLOOK
Emerging economies
will lead growth in 2013 as the global economic outlook remains challenged.
Business optimism in BRICS countries i.e. Brazil, Russia, India, China and
South Africa has increased. China is expected to grow up to 8.2% in 2013 from
7.8%, while India is expected to accelerate to 5.7% (FY 2013-2014) and Brazil
to grow to 4.0%.
Indian economy is
likely to grow at 5.7% in FY 2013-2014 driven by favourable external demand
outlook and likely easing of financial conditions through reduction in policy rates,
continuation of confidence boosting reforms and a normal monsoon.
The Government’s
recent reforms include allowing FDI in multi-brand retail, aviation, hiking
diesel price, capping the number of subsidized LPG cylinders, opening up
pension sector to foreign investment and raising the FDI cap in insurance to
49%. The reforms “which have begun in earnest”, and are likely to progress on a
number of different fronts, should help in boosting growth.
The headline
inflation for FY 2012-2013 averaged at 7.29%. During FY 2013-2014 Inflation is
seen range bound near 5.5% as per RBI projections in its Annual Monetary Policy
FY 2013-2014.
MONETARY POLICY
HIGHLIGHTS
India’s GDP growth
in first 3 quarters was @ 5.1% as against annual GDP growth of 6.5% in the FY
2011-2012. The reduction in GDP was on account of slower growth in both the
Industry and Services sector. The average Index of Industrial Production for FY
2012-2013 (April 12-February 13) stood at 1.02%. Efforts are being made in
monetary and fiscal policy to revive growth rate in the economy.
Current account
deficit (CAD) for the third quarter of FY 2012-2013 stood at 6.7%, while CAD
for FY 2011-2012 was at 5.4% of GDP. CAD continued to exert strain on the
balance of payment. Import of Gold and its impact on current account deficit
continued to be flagged as a major issue by the RBI, leading to fiscal and
monetary policy steps being taken in the matter during the year so far.
Government raised duty on import of Gold and RBI has laid certain restrictions
on financing of Gold purchase by Banks.
Money supply (M3)
and bank credit growth have broadly moved in alignment with the RBI’s
indicative trajectories. With government cash balances with the Reserve Bank
persisting at a higher than normal level, the liquidity deficit in the Banking
system, as reflected by the net withdrawals by banks under the liquidity
adjustment facility (LAF), has remained above the indicative comfort zone of
RBI during the FY 2012-2013.
The reduction in
the cash reserve ratio (CRR) of banks by 75 basis points, effective from
September 2012 to March 2013 and subsequent open market purchases of
Rs.1280000.000 Millions. during the year have enabled money market interest
rates to remain anchored to the policy repo rate. M3 growth for FY 2012-2013
was projected by RBI at 15%.
The Repo Rate of
RBI has been reduced by 1% from 8.5% (April 17, 2012) to 7.5% (March 19, 2013)
during FY 2012-2013.
As of May 3, 2013
the Repo Rate stands @ 7.25%.
RBI has projected
M3 growth for FY 2013-2014 at 13%. Deposit Growth for FY 2013-2014 is projected
at 14% and Non-food credit growth at 15%.
OPERATIONS
Deposits increased
to Rs.90213.700 Millions. during the financial year 2012-13, depicting a net
increase of Rs.12946.600 Millions. (16.76%) from Rs.77267.100 Millions. as on
March 31, 2012.
During the
financial year a focused initiative in the form of aggressive marketing of CASA
accounts was undertaken and new products were launched. Net Banking and Debit
Card usage saw growing response.
The Bank continued
its strategy of targeting housing societies and their members’ accounts along
with Business accounts of shopkeepers and small businessmen.
Specific
initiatives were undertaken by branches to visit schools and colleges within
their localities, to create awareness and share information about various
financial products to imbibe savings habit among kids and teens.
New products were
launched viz. “Arogya Vishesh” – under tie ups with reputed hospitals viz.
Nanavati, Apollo, ICON etc., “Two to Gain Account”, “Shareholder Account”,
“Aadhar enabled account” for direct credit of subsidies from government that
include LPG, Kerosene, etc.
Towards
streamlining of processes, increasing efficiencies, better compliances and
bringing down operating costs, following initiatives have been undertaken.
·
Centralized Account Opening
·
Centralized Cheque Processing
·
Cheque Truncation clearing has been completed for
Southern Grid and the process of implementation for Western Grid is in
progress.
CREDIT
Advances portfolio
increased to Rs.60449.900 Millions during the financial year 2012-13, depicting
a net increase of Rs.10942.100 Millions. (22.10%) from Rs.49507.800 Millions as
on March 31, 2012.
The Bank delivered
an impressive advances growth in a sluggish economy burdened with rising
inflation and interest rates. Credit growth of the Bank was higher than that of
the banking industry.
During the
financial year, the Bank continued its policy of predominantly focusing on MSME
sector advances with exposure in viable sectors and Retail Advances.
The CCC –
Centralized Credit Cell of the Bank with its team of qualified, experienced and
trained personnel diligently appraises, analyzes and sanctions credit proposals
with big ticket advances screened and approved by the Loans Committee of the
Board. All this with the quickest turnaround time and assisted by the Technical
and Credit Information Department. The department has process automation and
loans proposal tracking system in place for smooth and efficient functioning.
The Credit
Monitoring Cell within the Credit department looks after the post sanction monitoring of
advances i.e. compliances and overdue follow-up to ensure the quality of credit
portfolio through diligent and constant follow-up.
Credit Marketing Department
operates
with key function of sourcing bankable credit proposals from the market,
conforming to the Bank’s laid down credit policy. The department in
co-ordination with branches has been arranging various industrial meets,
undertaking marketing visits to industrial units in MIDC areas/Industrial
Estates and actively participating in MSME events/seminars.
The successful
culmination of various initiatives by the department has reflected in the
Bank’s impressive performance in credit.
INTEGRATED RISK
MANAGEMENT
The new banking
environment and increased market volatility has necessitated integrated
approach to risk management techniques. At present their Bank is having
full-fledged Credit Risk Rating system. During the year, the Bank has revised
Credit Concentration Limit as per present Industry Outlook. To improve Credit
quality of the Bank and to ensure that the risk taken by the bank is aligned
with the rate and fees paid by the borrower, Risk based pricing Model has been
developed.
Risk Framework has
been defined for a new scheme called FCNR loans which covers evaluation of
Credit Risk, Market Risk and Operational Risk for assessing the credit
proposal.
In order to
understand the overall level of risk embedded within processes and activities,
it is important to recognize and prioritize significant risk and identify
critical controls. The Bank has Operational Risk management policy that clearly
describes major elements of Operational Risk management framework including
identifying, assessing, monitoring and controlling / mitigating operational
risk. An Exhaustive Key Risk Register has also been made.
RETAIL
Retail advances
has continued to be one of the thrust areas during the financial year and the
RAC- Retail Asset Cell undertook various initiatives to customize and market
various Retail Advances products viz. Gold Loans, Good Homz, Vehicle Finanz,
Vidya Sahaya, SVC Office Mortgage Loan and Hello Doctor and also focus on
employees of institutions and companies to market Group Loans.
INTERNATIONAL
BANKING DIVISION
International
Banking Division of the Bank completed its fourth year of operations. Business
turnover as well as revenues earned increased during the current financial
year. During the FY 2012-2013 the turnover of Bank’s Forex Treasury operations
crossed the benchmark level of Rs.100000.000 Millions.
The Bank offers
entire gamut of foreign exchange related products and services at par with all
the leading banks, to facilitate smooth, efficient and stress-free conduct of
Foreign Exchange transactions both personal and business related transactions
including facility for hedging. Exchange Rate Risk run by the exporters and
importers by booking Forward Contracts is also offered.
The Buyer’s Credit
facility used for financing imports was availed extensively by clients and the
volume of business has increased significantly during the financial year. The
Bank enjoys lines of credit from overseas branches of leading public sector,
private sector and foreign banks for extending this facility to its customers.
The Bank has
entered into correspondent banking arrangements with leading international
banks and overseas branches of Indian banks at major international cities
around the world. The Bank is having authenticated SWIFT arrangements with 80
banks at 229 International Centres. Tie up arrangements with Thomas Cook
(India) Limited. and Pheroze Framroze and Company Private Limited. are in place
for quick hassle free procurement of Foreign Currency, Travellers Cheques and
Prepaid International Debit Cards. The Bank’s agreement with Thomas Cook
(India) Limited. – Principal Agents for Money Gram and UAE Exchange LLC, well
known International Money Transfer agency facilitates persons staying abroad to
send money to their near and dear ones through any of their branches effecting
instant payment.
TREASURY
In FY 2012-2013,
10 year Benchmark yield declined to 7.96% from a level of 8.60% at the end of
the previous year. The decline in benchmark yields was on account of 100 basis point
Repo rate cuts resorted by RBI to boost growth in economy and to boost
Investment demand.
The Bank’s
Treasury operations consist of SLR, Non-SLR and Liquidity management
categories. SLR Investment of the bank forms a major portion of the bank’s total
investments. Optimizing the yield on the portfolio within the RBI policy
guidelines and Treasury and Risk Policy frame work of the bank has been given
top priority. Return on investment during the year rose by 32 basis points.
The Treasury Department
is undertaking compliance with Reserve Requirements, Management of Liquidity
and Interest Rate Risk of Investment portfolio. The bank has an investment
policy in place which is reviewed in accordance with guidelines issued by RBI
on a regular basis. Committees such as Finance and Investment Committee of the
Board function effectively to monitor and manage the funds of the Bank. Also,
concurrent audit is undertaken by an independent professional firm of chartered
accountants.
NPA AND RECOVERY
The Bank’s Gross
NPA and Net NPA stood at 3.20% and 1.48% respectively as at the end of March
2013. Requisite provisions have been made towards NPAs in accordance with the
guidelines issued by RBI.
During the year
the Bank undertook stringent measures to curtail fresh accretion to the NPA
portfolio. The Credit
Monitoring Cell
and Legal and Recovery Department, through diligent follow up, kept overdues
and in turn NPAs in check.
ANTI MONEY
LAUNDERING
All the Financial
Institutions in India have been advised by the regulators to identify and
assess Money Laundering and Terrorist Financing risk for their customers/
countries/ geographical areas as also for their products/ services/
transactions/delivery channels. The Bank has framed Anti Money Laundering Policy
which has put in place the general framework and procedures to effectively
manage and mitigate the risk arising out of money laundering and terrorist
financing by adopting a risk based approach as per the AML Policy. The Bank has
automated the process of name screening of the customers at the entry level and
also of the existing customers, and generations of alerts for the financial
transactions routed through the bank for monitoring and analyzing the same in a
holistic manner enabling the bank to have a better approach to risk profiling
of customers in consonance with KYC/AML/CFT measures.
BRANCH EXPANSION
The year witnessed
an aggressive footprint expansion with a 15% growth in network. The Bank’s
branch strength as on March 31, 2013 stood at 140, an addition of 18 branches
during FY 2012-2013. During the year the Bank’s ATM network also grew by 20 and
reached 139 ATMs as on March 31, 2013.
The Bank has
opened 18 new branches across states; in Maharashtra, four branches in Mumbai
viz. Andheri East, Tilak Nagar, Girgaum, Film City Road - Goregaon E, three in
Navi Mumbai viz. Airoli, Nerul, Sector-15 Vashi, two in Thane district viz.
Kalwa, Nallasopara, two in Pune viz. Karvenagar, Sahakar Nagar,one each in
Waluj-Aurangabad and Satara, three in the state of Gujarat viz. Vapi, Rajkot,
Ahmedabad and one each in Tamil Nadu and Madhya Pradesh viz. Coimbatore and
Indore.
The Bank plans to
systematically scale up its presence across select geographies, and in current
year with the opening of branch in Indore, Madhya Pradesh, the Bank now has
presence in eight states i.e. Maharashtra, Karnataka, Tamil Nadu, Andhra
Pradesh, Gujarat, Goa, New Delhi and Madhya Pradesh.
MERGERS AND
ACQUISITIONS
The Bank has taken
a conscious decision to opt for organic growth but, has kept open the option of
take-over of weaker cooperative banks as and when it falls within the strategic
growth plans of the organization.
AWARDS
Winner Award at
the IBA Banking Technology Awards 2011 at the august hands of Shri N.R.
Narayana Murthy, Chairman–Emeritus of Infosys Limited. for the Best
Technology Bank Category in Co-operative Bank Sector.
Best CBS Project
Award 2012 from Banking Frontiers at the BFCA Award Ceremony held at Lavasa on
October 12, 2012.
Brihan Mumbai Nagari
Sahakari Banks Association Award for its performance in the Banking sector
for the
FY 2010-2011.
Runner up award of “Vision 2020 Award” by NAFCUB at the
Vision 2020 Banking Conclave organized by National Federation of Urban
Cooperative Banks and Credit Societies Limited. (NAFCUB) at Bengaluru, in the
categories given below:
·
Banking Business
·
CRAR
·
Net Profit after tax - as a percentage of total
assets
·
Non-interest income - as a percentage of working
funds
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.06 |
|
|
1 |
Rs.102.03 |
|
Euro |
1 |
Rs.85.25 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
69 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.