MIRA
INFORM REPORT
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Report Date : |
05.06.2013 |
IDENTIFICATION DETAILS
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Name : |
ALLAHABAD BANK |
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Registered
Office : |
119, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
1865 |
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Capital
Investment / Paid-up Capital : |
Rs.5000.262
Millions |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALA06144F |
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PAN No.: [Permanent Account No.] |
AACCA846F |
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Legal Form : |
Nationalized Bank |
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Line of Business
: |
Banking Business. |
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No. of Employees
: |
1950 [1421
Officers, 390 Clerks and 139 Subordinate Staff] Approximately |
RATING & COMMENTS
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MIRA’s Rating : |
A (69) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is one of the leading commercial bank with government hold
55.24% stake. It is a well established and reputed bank having good track record.
There appears slight dip in its profitability during 2013. However, general financial strength seems to be strong. Liquidity
position is good. The subject gets strong financial and managerial support
from government. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitments. In view of experience promoters and strong holdings the bank can be
considered normal 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.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
AA + [Tier-II Bonds] |
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Rating Explanation |
Having high degree fo safety regarding timely servicing of financial
obligation. It carry low credit risk. |
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Date |
September 2012 |
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
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Registered Office / Foreign Departments : |
119, |
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Tel. No.: |
91-33-2298390/2297896 |
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Fax No.: |
91-33-2457363 |
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E-Mail : |
albfd@giascl01.vsnl.net.in |
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Website : |
http://www.allahabadbank.com |
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Head Office : |
2, Netaji Subhas Road, Kolkata-700001, West Bengal, India |
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Tel. No.: |
91-33-22319144 |
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Fax No.: |
91-33-22107425 |
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Email : |
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Branch Office : |
Located At:
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DIRECTORS
AS ON 31.03.2013
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Name : |
Mrs. Shubhalakshmi Panse |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. T. R. Chawla |
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Designation : |
Executive Director |
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Name : |
Mr. Arun Tiwari |
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Designation : |
Executive Director |
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Name : |
Dr. Shashank Saksena |
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Designation : |
Government Nominee Director |
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Name : |
Mr. A. Udgata |
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Designation : |
RBI Nominee Director |
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Name : |
Mr. R.M. Chaturvedi |
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Designation : |
C.A. Nominee Director |
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Name : |
Mr. D.N. Singh |
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Designation : |
Part Time Non-official Director |
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Name : |
Mr. Dinesh Dubey |
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Designation : |
Part Time Non-official Director |
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Name : |
Mr. Nirmal Kumar Bari |
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Designation : |
Officers Employee Director |
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Name : |
Mr. Gour Das |
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Designation : |
Workmen Employee Director |
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Name : |
Dr. Sudip Chaudhuri |
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Designation : |
Shareholders' Director |
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Name : |
Mr. Ashok Vij |
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Designation : |
Shareholders' Director |
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Name : |
Mr. A.P.V.N. Sarma |
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Designation : |
Shareholders' Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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276215418 |
55.24 |
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276215418 |
55.24 |
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Total shareholding of Promoter and Promoter Group (A) |
276215418 |
55.24 |
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(B) Public Shareholding |
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27981443 |
5.60 |
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765469 |
0.15 |
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79553960 |
15.91 |
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48717617 |
9.74 |
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493936 |
0.10 |
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493936 |
0.10 |
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157512425 |
31.50 |
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10986303 |
2.20 |
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48511537 |
9.70 |
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6155706 |
1.23 |
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644800 |
0.13 |
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644800 |
0.13 |
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66298346 |
13.26 |
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Total Public shareholding (B) |
223810771 |
44.76 |
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Total (A)+(B) |
500026189 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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Total (A)+(B)+(C) |
500026189 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Banking Business. |
GENERAL INFORMATION
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No. of Employees : |
1950 [1421
Officers, 390 Clerks and 139 Subordinate Staff] Approximately |
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Bankers : |
·
Reserve Bank of India ·
Punjab National Bank ·
State Bank of India ·
Bank of India ·
Corporation Bank ·
Syndicate Bank ·
Union Bank of India ·
Axis Bank ·
Vijaya Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M. C. Jain and Company Chartered Accountants N. K. Bhargava and Company Chartered Accountants Raghu Nath Rai and Company Chartered Accountants Khandelwal Kakani and Company Chartered Accountants Batliboi and Purohit Chartered Accountants Sarath and Associates Chartered Accountants |
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 |
|
276215418 |
Equity Shares [Held by Central Government] |
Rs.10/- each
|
Rs.2762.154
Millions |
|
223810771 |
Equity Shares |
Rs.10/- each |
Rs.2238.108
Millions |
|
|
TOTAL |
|
Rs.5000.262 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
CAPITAL AND LIABILITIES |
31.03.2013 |
31.03.2012 |
31.03.2011 |
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|
Share Capital |
5000.262 |
5000.262 |
4762.154 |
|
Reserves and Surplus |
108524.902 |
100065.868 |
80311.712 |
|
Deposits |
1787416.025 |
1595930.804 |
1318871.603 |
|
Borrowings |
100975.875 |
90944.791 |
69181.774 |
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Other Liabilities and Provisions |
41814.825 |
37403.953 |
39736.366 |
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TOTAL |
2043731.889 |
1829345.678 |
1512863.609 |
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ASSETS |
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Cash and
Balances with Reserve Bank of India |
78082.218 |
87124.452 |
79009.281 |
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Balances with Banks and Money at Call and Short Notice |
52625.135 |
53127.636 |
31264.477 |
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Investments |
583058.570 |
542832.364 |
432470.643 |
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Advances |
1294896.505 |
1111450.987 |
936248.884 |
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Fixed Assets |
12515.201 |
11977.310 |
11482.285 |
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Other Assets |
22554.260 |
22832.929 |
22388.039 |
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TOTAL |
2043731.889 |
1829345.678 |
1512863.609 |
PROFIT & LOSS
ACCOUNT
|
PARTICULAR |
31.03.2013 |
31.03.2012 |
31.03.2011 |
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Interest Earned |
174356.918 |
155232.776 |
110146.917 |
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Other Income |
14769.097 |
12986.792 |
13704.127 |
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TOTAL |
189126.015 |
168219.568 |
123851.044 |
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EXPENDITURE |
|
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Interest Expended |
125692.806 |
103606.301 |
69922.242 |
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Operating
Expenses |
29581.009 |
26913.887 |
23383.021 |
|
Provisions and Contingencies |
22000.087 |
19031.504 |
16314.730 |
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TOTAL |
177273.902 |
149551.692 |
109619.993 |
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NET PROFIT |
11852.113 |
18667.876 |
14231.051 |
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BALANCE BROUGHT
FORWARD |
1838.546 |
1064.021 |
1251.984 |
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APPROPRIATIONS |
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|
Transfer to Statutory
Reserves |
2970.000 |
4700.000 |
3600.000 |
|
Transfer to Revenue Reserves |
2092.657 |
7500.000 |
4000.000 |
|
Transfer to Capital Reserve- Others |
314.853 |
116.493 |
0.000 |
|
Transfer to Special Reserve (Sec. 36 (I) (VIII) of I.T. Act 1961) |
2510.000 |
2090.000 |
3560.000 |
|
Transfer to / from IRS Reserves |
0.000 |
0.000 |
(61.803) |
|
Proposed Dividend |
3000.157 |
3000.157 |
2857.293 |
|
Tax on Dividends |
509.877 |
486.701 |
463.524 |
|
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BALANCE
CARRIED TO BALANCE SHEET |
2293.115 |
1838.546 |
1064.021 |
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|
|
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|
Earnings /
(Loss) Per Share (Rs.) |
23.70 |
39.18 |
31.85 |
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 |
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10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth 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 |
PERFORMANCE OF THE BANK:
Total Business of
the Bank increased to Rs.3096780.000 Millions as against Rs.2718430.000
Millions in previous year showing a YoY growth of 13.92 %. Deposits of the Bank
went up to Rs.1787420.000 Millions from Rs.1595930.000 Millions last year.
Year-on-Year basis, total deposits grew by 12.00%. The gross Credit surged to
Rs.1309360.000 Millions from Rs.1122500.000 Millions last year. Year-on-Year
basis, the gross credit increased by 16.65%
The net profit of
the Bank stood at Rs.11850.000 Millions and the operating profit was
Rs.33850.000 Millions as on 31.03.2013 as against Rs.18670.000 Millions and
Rs.37700.000 Millions respectively during 2011-12. The degrowth in Net profit
and operating profit was on account of provisions and reversal of interest due
to high accretion of NPA.
The non-interest
income of the Bank increased from Rs.12990.000 Millions last year to
Rs.14770.000 Millions this year. Of which the income from the Third Party
Product (TPP) (Life, Non Life, Mutual Fund), Retail sale of gold coins,
Depository services and Cash management Services (CMS) business grew by 11.97 %
and earned an income of Rs.295.500 Millions during FY 2012-13 as against
Rs.263.900 Millions during the previous year.
ECONOMIC AND BANKING OVERVIEW:
Trend continued in
2013. The year witnessed sovereign debt crisis, unemployment and fall in
manufacturing. The economic problems faced by the developed countries impacted
the developing economies leading to rise in inflation in those areas. The Euro
area experienced the worst ever unemployment crisis.
The International
Monetary Fund (IMF) in its World Economic Outlook has forecast global growth to
stay sluggish at 3.3 per cent in 2013.
The Indian economy
remained sluggish in 2012-13, with slowdown affecting almost all the sectors.
It grew at the rate of 5.00 per cent (advance estimate) and 6.2 per cent in the
years 2012-13 and 2011-12 respectively.
Growth in the
index of industrial production (IIP) witnessed a slowdown to 0.9 per cent
during April- February 2012-13, largely due to infrastructure and input
constraints, rising costs and moderation of external demand
The current
account deficit (CAD) to GDP ratio reached a historic high of 6.7 per cent in Q3
of 2012-13 as a result of external imbalances. However, CAD in Q3 was
adequately financed by capital inflows.
Average headline
inflation declined from 8.9 per cent in 2011-12 to 7.3 per cent in 2012-13,
with a low of 6.0 per cent in March 2013.
The RBI had
projected deposit and credit growth at 15 and 16 per cent respectively. The
Banks in India reported a growth of 17.4 and 17 per cent respectively for
deposit and credit in the financial year 2012-13.
During FY 2012-13,
performance of Indian banks was more or less conditioned by slow and uneven
recovery of the global financial markets. Because of the slowdown there was a
rise in the NPA of the banking sector from 2.36% of total credit advanced in
March 2011 to 3.57% of total credit advanced in March 2012.
BUSINESS:
Focused approach
towards enhanced customer service, network expansion and new products resulted
in increase of Bank's total business mix by 13.92 % to reach the level of
Rs.3096780.000 Millions as on 31.03.2013 from Rs.2718430.000 Millions as on
31.03.2012.
Total Deposits
grew by 12% to Rs.1787420.000 Millions as on 31.03.2013 from Rs.1595930.000
Millions as on 31.03.2012. Gross credit of the Bank went up by 16.65% to
Rs.1309360.000 Millions as on 31.03.2013 from Rs.1122500.000 Millions as on
31.03.2012.
Business per
Employee increased to Rs.137.300 Millions as on 31.03.13 from Rs.121.700
Millions as on 31.03.12 while business per branch went up to Rs.1140.200
Millions from Rs.1080.500 Millions during the same period.
NETWORK AND
DELIVERY CHANNELS:
The Bank has
leveraged technology to lower transaction costs and invested in capacity
building for future earnings. There was focus on increasing the number of
delivery channels and the Bank opened 200 new branches and 131 ATMs during
2012-13. The Bank has planned to open around 300 Branches and 1000 ATMs in the
current financial year.
TECHNOLOGY:
·
The Bank which has 447 ATMs, issued more than 18.80
lac ATM cum debit cards to its customers.
·
During the year 2012-13, the Bank launched the
following three products:
·
RuPay, the branded domestic ATM card.
·
Prepaid Gift Card, a non-reloadable prepaid card,
for providing gift to one's near and dear ones on any occasion.
·
IMPS (Inter Bank Mobile Payment System), an
electronic fund transfer service through mobile phones.
SUBSIDIARIES:
All Bank Finance
Limited, a fully owned subsidiary of the Bank registered with SEBI as
Category-I Merchant Banker, earned a profit after tax (PAT) of Rs.32.300 Millions
in 2012-13.
FUTURE OUTLOOK:
Bank has planned
to achieve Rs.3600000.000 Millions of total business by 31st March, 2014 with
deposits and advances at Rs.2050000.000 Millions and Rs.1550000.000 Millions
respectively.
The Bank is in the
process of introducing E-lobby in 250 branches across the country and cash
deposits kiosks in rural branches having
large footfalls for the convenience of the customers.
AWARDS AND
ACHIEVEMENT:
The Bank has been
awarded the long standing performer award for Priority Sector Lending by D and
B for implementing MSME Scheme. The Bank has been awarded Protsahan under the
Nationalized Bank category of the prestigious "Indira Gandhi Rajbhasha
Puraskar" for outstanding implementation of Official Language Policy on
14.09.2012.
The Bank has also
been awarded the CNBC TV-18'S India's Best Mid-Size bank and Financial
Institution Awards 2012 as a recognition and reward for the outstanding work of
the Bank in creating and sustaining stakeholder value, in building investor
wealth and in helping India evolve from a savings to an investing economy.
MANAGEMENT
DISCUSSION AND ANALYSIS:
MACRO ECONOMIC
ENVIRONMENT:
GLOBAL DEVELOPMENT:
The Financial Year
(FY) 2012-13 has been of challenges in growth performance for world economy. In
the post crisis period, the problem of managing recovery was more than managing
growth. Though almost all the countries are still in the process of recovery,
the noteworthy trend is that developing countries are accounting for half of
the global growth in comparison to the advanced economies. Large and emerging
economies are showing different speeds of recovery such as stagnating growth in
Europe and Japan, sluggish growth in the US but good recovery in emerging
economies.
Notwithstanding
weak global growth and austerity measures imposed in the US and in the Euro
area, international financial markets gained traction following unconventional
monetary easing. However, this has not translated into growth revival. Although
the tail risks have reduced, they remain significant, calling for committed
action to trim the balance sheet exposures and prepare adequate buffers against
possible contagion effects.
As per IMF
(International Monetary Fund), the world GDP is expected to grow by 3.3% in
2013. The global growth is expected to pick up to 4.0% in 2014. In 2013, IMF
forecasted GDP growth of 1.9% in the US which is less than the growth of 2.2%
in 2012. But the expectation for the Euro area growth is a meager -0.3%. On the
other hand, the emerging and developing economies are together expected to grow
by 5.3% in 2013 and 5.7% in 2014.
DOMESTIC
DEVELOPMENT:
India's GDP grew
by 5.0% on YoY basis up to Dec'12 and was expected to grow by 5.0% during
FY2012-13. The economy experienced sticky inflationary situation and moderating
growth scenario in FY2012-13. The deceleration in manufacturing and mining and
quarrying sector was quite disquieting and has put downward pressure on
industrial growth bringing it down to 1.0% in 2012-13. Agriculture and allied
sectors are estimated to achieve a growth rate of 1.8% during 2012-13.
Agriculture including allied activities accounts for 8% of GDP whereas Industry
accounts for 27% of GDP. Contribution of Service sector is the highest at 65%.
OUTLOOK FOR 2014:
The outlook for
the financial year 2013-14 continues to be challenging. The Indian economy is
expected to grow by around 6.0% in current fiscal 2013-14. With the Indian
economy yet to recover from the slump in growth, the banking sector of the
country is confronted with lower credit (14.1%) and deposit (14.3%) growth.
Further, credit and deposit growth for FY2013- 14 is likely to be 14% and 15%,
respectively.
BANKING AND FINANCIAL SECTOR DEVELOPMENT:
India's growing
integration with global financial markets has an increasingly large impact on
the financial intermediaries at home through the trade and capital account
channels. During FY2012-13, performance of Indian banks were more or less
conditioned by slow and uneven recovery of the global financial markets.
Because of the slowdown there was a rise in the NPA of the banking sector from
2.36% of total credit advanced in March 2011 to 3.57% of total credit advanced
in March'12. On YoY basis the SCBs deposit grew by 14.3% and credit by 14.1% as
on last reporting Friday of the Year. The overall deposit of SCBs is expected
to grow by 14% and credit by 15% in 2014.
The Monetary
policy started becoming accommodative in 2012-13 with cuts in Repo rates, CRR
as inflation started easing and eased below the last year's trend. But the
transmission of these rate cuts to the banking system is less pronounced given
the structural rigidities in the market.
PERFORMANCE HIGHLIGHTS:
·
Total Business of the Bank increased to
Rs.3096780.000 Millions as against Rs.2718430.000 Millions in previous year
showing a YoY growth of 13.92 %.
·
Operating Profit stood at Rs.33850.000 Millions as
against Rs.37700.000 Millions last year showing a YoY decline of 10.20%.
·
Net Profit stood at Rs.11850.000 Millions during
for 2012-13 as against Rs.18670.000 Millions last year showing degrowth on
account of provisions and reversal of interest due to high accretion of NPA.
·
Net Interest Margin (NIM) stood at 2.81% for
2012-13 as against 3.48% last year.
·
Deposits of the Bank went up to Rs.1787420.000
Millions from Rs.1595930.000 Millions last year showing a growth of 12.00 %.
·
Gross Credit surged to Rs.1309360.000 Millions from
Rs.1122500.000 Millions last year. Year-on-Year basis, the Gross Credit
increased by 16.65 %.
·
Credit Deposit Ratio stood at 74% as on 31st March
2013.
·
Retail Credit grew to Rs.176540.000 Millions from
Rs.151140.000 Millions last year with a growth of 16.81% constituting 13.48% of
gross advances.
·
Non-Fund Non-Interest Income during the Financial Year
ending March, 2013 stood at Rs.9180.000 Millions as against Rs.9530.000
Millions last year.
·
Capital Adequacy Ratio stood at 11.03% as on 31st
March 2013.
·
Gross NPA to Gross Advances and Net NPA to Net
Advances Ratios stood at 3.92% and 3.19% as on 31st March 2013
respectively.
·
Provision Coverage Ratio stood at 50%.
NON-PERFORMING
ASSETS (NPAs) MANAGEMENT:
The Gross and Net
NPA stood at Rs.51369.900 Millions and Rs.41267.600 Millions respectively as on
31st March 2013. The Gross and Net NPAs as percentage to gross advances and net
advances was 3.92 % and 3.19% respectively. Though the Bank was able to recover
Rs.23000.000 Millions, due to fresh addition of NPAs to the tune of
Rs.58918.900 Millions, the outstanding NPA has increased. The provision coverage
ratio stood at 50%.
INTERNATIONAL
BANKING:
The Bank carries
out its International business in India through its 53 authorized/designated
branches, which include 5 International branches and through its overseas
branch at Hong Kong. Export credit of the Bank as on 31st March 2013 stood at
Rs.30171.400 Millions. The bank is taking all steps to increase the credit flow
to exporters. The Bank maintains correspondent relationship with prime banks
abroad and has 'Standard Settlement Instructions' in various currencies with 15
foreign banks. The Bank is also catering to the needs of Non-Resident Indians
through its branches.
OVERSEAS PRESENCE:
Bank is having one
overseas branch at Hong Kong. The Business of Hong Kong branch has increased
from Rs.53270.000 Millions as on 31st March 2012 to Rs.73540.000 Millions as on
31st March 2013. The Hong Kong branch has earned a net profit of Rs.274.800
Millions in 2012-13.
FEE BASED INCOME:
Total Fee based
income of the Bank for 2012-13 was Rs.9180.000 Millions as against Rs.9530.000
Millions last year. The performance of the Bank under fee based income was good
in the area of non fund business. The economic environment being nonconductive
for various sectors of the economy, has affected the demand for credit in the
Banks in the year 2012-13. This had direct impact on the fee based income of
the Bank. Moreover, the Bank supported its customers during the testing times
witnessed by the economy, by way of allowing concessions in the processing
fees.
BUSINESS PROCESS RE-ENGINEERING
(BPR):
Improvement in
Productivity, Efficiency and Profitability with introduction of technology
enabled products for rendering convenient, caring and attractive services to
customers continued to remain the prime focus of the Bank under Business
Process Re-engineering. With this vision to strive for excellence, the Bank has
moved towards Customer Centric activities from Process and Product Centric
activities. The existing processes are being reviewed continuously by
streamlining and simplifying the systems and processes and also as preventive
steps against possible frauds and forgeries.
SUBSIDIARY AND
JOINT VENTURE:
All Bank Finance
Limited, a wholly owned subsidiary of Allahabad Bank, engaged in Corporate
Advisory Services, Project Appraisal, Issue Management, Loan Syndication
Debenture and Trusteeship Underwriting, posted a profit of Rs.36.300 Millions
during 2012-13.The Bank holds 27% equity stake in Asset Management Company
"ASREC (India) Ltd" along with 4 other Banks and Financial
institutions viz. Bank of India, Andhra Bank, Indian Bank and Life Insurance
Corporation of India. The Bank holds 30% equity stake in joint venture company
"Universal Sompo General Insurance Company Limited" for general insurance
business along with Indian Overseas Bank, Karnataka Bank Limited, Dabur
Investment Limited and Japanese insurance major Sompo.
FUTURE PLANS:
The Bank will
focus on Retail Business, Loan Syndication, etc in addition to other core
banking activities. The Bank is planning for overseas expansion.
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.56.64 |
|
|
1 |
Rs.86.69 |
|
Euro |
1 |
Rs.73.97 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--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.