MIRA
INFORM REPORT
|
Report Date : |
13.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
CORPORATION BANK |
|
|
|
|
Registered
Office : |
Post Box No. 88, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Year of
Establishment : |
1906 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1481.293 Millions |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
BLRC04854D |
|
|
|
|
Legal Form : |
Public Sector Bank. The Banks Shares are Listed on the Stock Exchange.
|
|
|
|
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Line of Business
: |
Banking and Other Related Services. |
|
|
|
|
No. of Employees
: |
10051 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 331000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
|
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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very
High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Tier I Perpetual Bonds: AAA |
|
Rating Explanation |
Having highest degree of safety and lowest credit risk. |
|
Date |
12.10.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Fixed Deposit Programme: AAA |
|
Rating Explanation |
Having highest degree of safety and lowest credit risk. |
|
Date |
12.10.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Certificates of deposit Programme: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
12.10.2012 |
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
|
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 : |
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|
Website : |
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General Office : |
18-20, Kasturba Gandhi Marg, New Delhi – 110001, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Ajay Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashwani Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amar Lal Baultani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. L. L. Meena |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. U. S. Paliwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vincent D’Souza |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kaushik Kumar Ghosh |
|
Designation : |
Director |
|
|
|
|
|
Mr. Raj Kumar Agrawal |
|
Name : |
Director |
|
Designation : |
|
|
|
Mr. Sushobhan Sarker |
|
Name : |
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. H. M. A. Khan |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. N R Set |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S N Satish |
|
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. Mr. Y S Jain |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S. Pattabiraman |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. Giridhar Shenoy |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. B. Lakshminarayana |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K R 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. S. K. Dash |
|
Designation : |
Company Secretary |
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 |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
91477691 |
59.82 |
|
|
91477691 |
59.82 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
91477691 |
59.82 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4624901 |
3.02 |
|
|
276632 |
0.18 |
|
|
40001245 |
26.16 |
|
|
5463293 |
3.57 |
|
|
50366071 |
32.94 |
|
|
|
|
|
|
3223025 |
2.11 |
|
|
|
|
|
|
6307016 |
4.12 |
|
|
927761 |
0.61 |
|
|
612827 |
0.40 |
|
|
28530 |
0.02 |
|
|
571902 |
0.37 |
|
|
5100 |
0.00 |
|
|
7295 |
0.00 |
|
|
11070629 |
7.24 |
|
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 |
BUSINESS DETAILS
|
Line of Business : |
Banking and Other related services |
GENERAL INFORMATION
|
No. of Employees : |
10051 (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 31.03.2012
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.1481.326 millions |
|
|
Addition/ (Forfeited) during the year |
|
Rs.0.033 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1481.293 Millions |
Paid-up Capital :
|
Held by Central
Government |
Rs.866.926
Millions |
|
|
|
|
Held by the
Public And Others |
Rs.614.400
Millions |
|
Forfeited during
the year |
Rs.0.033
Millions |
|
Total |
Rs.614.367
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Share Capital |
1481.293 |
1481.306 |
1434.378 |
|
Reserves &
Surplus |
81277.963 |
69896.782 |
56314.282 |
|
Deposits |
1361422.006 |
1167474.977 |
927336.653 |
|
Borrowings |
142480.966 |
159653.815 |
90775.256 |
|
Other Liabilities
& Provisions |
48941.981 |
36579.051 |
40812.417 |
|
|
|
|
|
TOTAL
|
1635604.209 |
1435085.931 |
1116672.986 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash &
Balances with RBI |
92882.345 |
81423.158 |
88350.342 |
|
Balances with
Banks & money at Call & Short notice |
24097.593 |
22501.914 |
19568.886 |
|
Investments |
474746.305 |
434527.423 |
345226.276 |
|
Advances |
1004690.208 |
868504.042 |
632025.622 |
|
Fixed Assets |
3559.766 |
3289.691 |
2926.914 |
|
Other Assets |
35627.992 |
24839.703 |
28574.946 |
|
|
|
|
|
TOTAL
|
1635604.209 |
1435085.931 |
1116672.986 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
Income |
|
|
|
|
|
Interest Earned |
130177.842 |
91352.483 |
69876.873 |
|
|
Other Income |
14926.194 |
12558.770 |
14933.384 |
|
|
TOTAL |
145104.036 |
103911.253 |
84810.257 |
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
Interest expended |
98708.853 |
61955.053 |
50843.465 |
|
|
Operating Expenses |
17835.500 |
16417.099 |
12599.527 |
|
|
Provisions & Contingencies |
13499.258 |
11406.422 |
9664.754 |
|
|
TOTAL |
130043.611 |
89778.574 |
73107.746 |
|
|
|
|
|
|
|
|
Net Profit for the year |
15060.425 |
14132.679 |
11702.511 |
|
|
|
|
|
|
|
|
Appropriations |
|
|
|
|
|
Transfer to Statutory Reserves |
3850.000 |
3750.000 |
3500.000 |
|
|
Transfer to Staff Welfare Fund |
150.000 |
150.000 |
150.000 |
|
|
Transfer from/to (net) Investment
Reserve |
-- |
-- |
-- |
|
|
Transfer to Capital Reserve |
213.748 |
30.534 |
2202.295 |
|
|
Special Reserves |
4070.000 |
910.000 |
780.000 |
|
|
Transfer to General Reserves |
3247.394 |
5848.877 |
2301.265 |
|
|
Interim Dividend Paid |
-- |
-- |
-- |
|
|
Proposed Dividend |
3036.660 |
2962.651 |
2366.727 |
|
|
Tax on Interim Dividends Paid |
-- |
-- |
-- |
|
|
Tax on Dividends Proposed |
492.623 |
480.617 |
402.225 |
|
|
|
|
|
|
|
|
Earning per shares |
101.67 |
98.50 |
81.58 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Interest Earned |
36506.200 |
37444.800 |
38708.800 |
40681.000 |
|
Income On Investments |
7882.300 |
8250.200 |
9111.500 |
9073.600 |
|
Interest On Balances With RBI Other Inter Bank Funds |
189.400 |
111.500 |
14.300 |
100.400 |
|
Interest / Discount On Advances / Bills |
27415.100 |
28105.100 |
28378.600 |
30590.500 |
|
Others |
1019.400 |
978.000 |
1204.400 |
916.500 |
|
Other Income |
3276.100 |
3259.700 |
3869.600 |
5674.000 |
|
Total Income |
3,9782.400 |
40704.500 |
42578.400 |
46355.000 |
|
Interest Expended |
28421.900 |
29412.300 |
29874.900 |
31373.200 |
|
Operating Expenses |
4661.800 |
4434.600 |
5114.200 |
5757.100 |
|
Total Expenditure |
4661.800 |
4434.600 |
5114.200 |
5757.100 |
|
Operating Profit Before Provisions and Contingencies |
6698.600 |
6857.500 |
7589.300 |
9224.700 |
|
Provisions and contingencies |
2166.000 |
2688.200 |
4060.600 |
4599.300 |
|
Profit Before Tax |
4532.600 |
4169.300 |
3528.700 |
4625.400 |
|
Tax |
830.000 |
112.200 |
497.000 |
1070.100 |
|
Profit After Tax |
3702.600 |
4057.100 |
3031.700 |
3555.300 |
|
Net Profit |
37026.000 |
40571.200 |
30317.300 |
35553.100 |
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 |
----- |
|
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 |
PERFORMANCE AT A GLANCE:
Total Business of
the Bank reached an impressive figure of Rs.2366110.000 Millions as on 31st
March 2012, recording an absolute growth of Rs.33,0130.00 Millions over the
31.03.2011 business figure of Rs.2035980.000 Millions, at a growth rate of
16.21%.
The total deposits
of the Bank increased by Rs.19,3940.000 Millions to Rs.1,36,1420.000 Millions
as on 31.03.2012 from Rs.1,16,7480.000 Millions as on 31st March, 2011
registering a growth of 16.61% y-o-y.
The Bank continued
its prudent approach in expanding quality credit assets in line with its policy
on Credit Risk Management. For the first time the Bank’s credit figure
surpassed the Rs.1.00 lakh crore mark to reach a level of Rs.1,00,4690.000
Millions as on 31.03.2012 from Rs.86,8500.000 Millions as on 31st March, 2011,
recording an absolute growth of Rs.13,6190.000 Millions at a growth rate of
15.68%. 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 performance of
the Bank under recovery of NPAs during the financial year continued to be good.
During the financial year, the Bank effected a cash recovery and up-gradation
of NPAs of Rs.7586.000 Millions as compared to Rs.6273.300 Millions in the
previous financial year.
The Bank recorded
an encouraging performance in different functional areas during the financial
year 2011-12 which resulted in increased earnings in absolute terms. For the
first time the Bank achieved a milestone Net Profit figure of Rs.15060.400
Millions.
The Branch network
of the Bank also reached a landmark figure of 1500 units, spread across the
country.
INCOME ANALYSIS
Interest Income of
the Bank recorded a growth of Rs.38825.300 Million (42.50%) from Rs.9,1352.500
Millions in the year 2010-11 to Rs.130177.800 Millions as against the Interest expenses which grew by 59.32% from Rs.6,1955.100 Millions during the financial year 2010-11 to Rs.9,8708.900 Millions during the year 2011-12. The Net
Interest Income recorded a growth of Rs. 2071.500 Millions [7.05%] during the same period.
The total Income of the Bank [total of Interest Income and
Non-Interest Income] improved to Rs.14,5104.000 Millions during the financial year 2011-12 from Rs.10,3911.300 Millions in the previous financial year
recording a rise of Rs.4,1192.700
Millions [39.64 %].
Non-Interest Income from Core Areas increased by Rs.723.600 Millions [9.53%] from Rs.7593.500 Millions in the financial year 2010-11 to Rs.8317.100 Millions in the financial year 2011-12. The Total
Non-Interest Income has increased from Rs.1,2558.800 Millions as on 31.03.2011 to Rs.1,4926.200 Millions as on 31.03.2012 by 18.85%.
The Net Interest Income reached a level of Res.31468.900 Millions during the financial year from Rs.29397.400 Millions as on 31.03.2011.
The Operating Expenses has shown a marginal increase of
8.64% during the financial year 2011-12 and stood at Rs.17835.500 Millions as compared to Rs.1,6417.100 Millions in 2010-11.
The Cost to Income Ratio stood at
38.44%.
Performance of Subsidiaries
and other units sponsored by the Bank
Corp Bank
Securities Limited: The Bank’s wholly owned subsidiary, Corp Bank Securities
Limited (CBSL) has earned a total income of Rs.142.000 Millions, posted Profit
Before Tax of Rs.138.100 Millions and Profit After Tax of Rs.120.700 Millions
(after write off of deferred tax asset of Rs.21.000 Millions) for FY 2011-12,
while the corresponding figures for FY 2010-11 were Rs.102.600 Millions,
Rs.97.400 Millions and Rs.67.900 Millions (after write off of deferred tax
asset of Rs.24.700 Millions) respectively. The Paid up Equity Share Capital
remained at Rs.750.000 Millions as on 31.3.12, while the tangible net worth,
after plough back of surplus, has gone up to Rs. 1381.200 Millions. The Earning
per Share for fiscal ended March, 2012 was Rs.1.61 on account of deferred tax
write off, while it was Rs.0.91 for fiscal ended March 2011. The Company has
secured requisite regulatory approvals for undertaking Equity Broking business
and the enablement process with National Stock Exchange of India Limited, (NSE)
is taken forward. The Company has plans to undertake loan/ debt syndication
business subject to getting requisite regulatory approvals.
Chikmagalur-Kodagu
Grameena Bank [CHIKO Bank]: The Chikmagalur-Kodagu Grameena Bank, a Regional
Rural Bank [RRB] sponsored by the Bank and established on 28.04.1984 has a Capital
base of Rs.10.000 Millions with Bank’s share being 35% and the balance 65%
being shared by Central Government (50%) and State Government (15%). It has 58
branches. The deposits of the Bank stood at Rs.4205.400 Millions and advances
at Rs.2770.600 Millions [gross advances] as at 31.03.2012 as compared to
Rs.3543.400 Millions and Rs.2315.900 Millions respectively, during the
corresponding previous year. The Bank has posted a net profit of Rs.14.600
Millions for the year-ended 31.03.2012 as against Rs.6.300 Millions as on
31.03.2011. The Networth of the Bank as on date is Rs.316.998 Million of which
the share of Corporation Bank is Rs.111.755 Millions. The Bank has become 100%
CBS compliant.
MANAGEMENT DISCUSSION AND ANALYSIS
Monetary and Credit Policy
for 2011-12
The annual monetary policy 2011-12 was drawn at a time when
the domestic economy registered a good performance, second year in a row, after
the global financial meltdown of 2008-09. However, the uncertainty about the
international commodity prices and resultant rise in domestic inflation has
posed a significant challenge on the sustainability of the growth trajectory
experienced by the economy.
The International Monetary Fund (IMF) in its World Economic
Outlook (WEO), (April 2011), projected that global growth is likely to moderate
from 5.0% in 2010 to 4.4% in 2011. Growth is projected to decelerate in
advanced economies due to waning of impact of fiscal stimulus, and high oil and
other commodity prices. Growth in Emerging Market Economies (EMEs) is also
expected to decelerate on account of monetary tightening and rising commodity
prices.
Indian economy registered a growth of 8.4% in the financial
year 2010-11, with a robust performance of the farm sector. The index of
industrial production (IIP), which grew by a double digit growth during the
first half of 2010-11, moderated subsequently. Service sector activities have
continued to show growth momentum. However, the high international commodity
prices and the impact of anti inflationary monetary policy stance coupled with
a slow down in industrial and investment activities was expected to moderate
the growth momentum in 2011-12. Based on these sentiments, the RBI has
projected the baseline GDP growth for the financial year 2011-12 at 8%.
The domestic demand-supply balance and the global trends in
commodity prices and the likely demand scenario, the regulator placed the WPI
inflation for March 2012 at 6% with an upward bias.
The need to balance the resource demand to meet credit off
take by the private sector and government borrowings, monetary projections have
been made consistent with the growth and inflation outlook.
Money supply was projected to grow around 16.0% during
2011-12.
Growth projections for aggregate deposits during 2011-12 was
placed at around 17.0% and for non-food credit was placed at 19.0%.
The overall stance of monetary policy in 2011-12 was
intended to:
·
Maintain
an interest rate environment that moderates inflation and anchors inflation
expectations.
·
Foster
an environment of price stability that is conducive to sustaining growth in the
medium-term coupled with financial stability.
·
Manage
liquidity to ensure that it remains broadly in balance, with neither a large
surplus diluting monetary transmission nor a large deficit choking off fund
flows.
In the policy, the
Reserve Bank increased the Repo Rate by 50 bps to 7.25%. The Reverse Repo Rate
automatically adjusted to 6.25%. A new Marginal Standing Facility (MSF) was introduced
from which SCBs can borrow overnight up to 1% of their respective NDTL,
determined with a spread of 100 basis points above the Repo Rate, stood at
8.25%. Bank Rate and Cash Reserve Ratio (CRR) retained at 6.0%. Statutory
Liquidity Ratio (SLR) was kept unchanged at 24% of NDTL. Savings Bank deposit
interest rate increased from 3.5% to 4.0%.
Some of the other
measures included :
– To issue the
final guidelines on plain vanilla single-name credit default swap (CDS) for
corporate bonds for resident entities, after taking into consideration the
feedback/ suggestions received from market participants, by end-May 2011.
– To extend the
period of short sale in govt. securities from the existing 5 days to a maximum
period of three months, with a view to providing a fillip to the Interest Rate
Futures (IRF) market and the term repo market.
– To extend
delivery versus payment (DvP) III facility to transactions by the gilt account
holders (excluding transactions between the gilt account holders of the same custodian)
so that the gilt account holders get the benefit of efficient use of funds and
securities.
– To allow Foreign
Institutional Investors (FIIs) to cancel and rebook up to 10% of the market
value of the portfolio
as at the
beginning of the financial year.
– In respect of
exports and imports invoiced in Indian Rupees, non-resident importers and
exporters can hedge their currency risk with authorized dealer (AD) banks in
India through their bankers having Rupee vostro accounts
in India. The
contracts would be on a deliverable basis.
– To appoint a
committee to re-examine the existing classification and suggest revised
guidelines with regard to
priority sector
lending classification.
– To allocate at
least 25% of the total number of branches to be opened during a year to
unbanked rural (Tier 5 and Tier 6) centres.
– To enhance the
provisioning requirements on certain categories of non-performing advances and
restructured advances as under:
· Advances classified as “sub-standard” will attract a provision of 15% as against the existing 10% (the “unsecured exposures” classified as sub-standard assets will attract an additional provision of 10%, i.e., a total of 25% as against the existing 20%);
· The secured portion of advances which have remained in “doubtful” category up to one year will attract a provision of 25% (as against the existing 20%);
· The secured portion of advances which have remained in “doubtful” category for more than one year but upto 3 years will attract a provision of 40% (as against the existing 30%);
· Restructured accounts classified as standard advances will attract a provision of 2% in the first 2 years from the date of restructuring, or in cases of moratorium on payment of interest/principal after restructuring, for the period covering moratorium and 2 years thereafter (as against existing provision of 0.25-1.00%, depending upon the category of advances); and
·
Restructured accounts classified as
non-performing advances, when upgraded to standard category will attract a
provision of 2% in the first year from the date of up-gradation (as against
existing provision of 0.25- 1.00%, depending upon the category of advances).
Macro-Economic Scenario in
2011-12
As per the advance
estimates of CSO, the economic growth for 2011-12 is likely to fall to a
three-year low of 6.9% mainly due to sharp slowdown in manufacturing,
agriculture and mining sectors, against 8.4% expansion in the previous fiscal.
The agriculture sector is likely to show a growth of 2.5% in 2011-12 as against
previous year’s growth of 7.0%. Manufacturing sector is expected to drop down
to 3.9% as against last year growth of 7.6%. Mining and quarrying is likely to
witness a decline of 2.2%, compared to a growth of 5% a year ago.
The growth in the
Index of Industrial Production (IIP) decelerated to 2.8% during 2011-12 from
8.2% in the corresponding period of the previous year. In terms of use based
classification, while capital goods and intermediate goods sectors registered
negative growth of 4.1% and 1.0%, respectively, the growth of the consumer
durables sector decelerated to 2.5%. The cumulative growth rate of eight core
infrastructure industries during fiscal 2011-12 slowed down to 4.3%, down from
6.6% in 2010-11.
Despite a weak
global economy and a slowing domestic market, the service sector has maintained
its strong performance during 2011-12. With growth rate of 8.8% achieved till
December 2011, the advance estimates by CSO projected a growth rate of 9.4% in
2011-12. Within services, trade, hotels, transport and communication is
expected to grow the fastest at 11.2% in FY12 as against 11.1% in FY11.
WPI inflation, as
measured by year-on-year variations in the wholesale price index (WPI),
remained above 9% during April-November 2011, moderated to 6.9% by end- March
2012, consistent with the RBI’s indicative projection of 7%. Food articles
inflation, which was 8.1% during April- December 2011, briefly turned negative
in January 2012, however, increased sharply to 6.1% in February and further to
9.9% in March 2012. Non-food manufactured products inflation, which was 8.4% in
November 2011, decelerated significantly to 5.8% in February and further to
4.7% in March 2012. Fuel inflation moderated from over 15% in November-December
2011 to 10.4% in March 2012.
The country’s exports during 2011-12 registered growth of
21.0% to reach a level of US$303.7 billion as against US$251.1 billion in the
previous year. During the same period imports grew by 32.1% to reach a figure
of $488.6 billion ($369.8 billion). The country’s trade deficit widened to US$
184.9 billion from US$ 118.6 billion in the previous year.
During April-December 2011, India’s current account deficit
(CAD) widened to US$ 53.7 billion (4.0% of GDP) from US$ 39.6 billion (3.3% of
GDP) in April-December 2010, largely reflecting a higher trade deficit.
During 2011-12, India’s foreign exchange reserves declined
by US$ 10.4 billion and stood at US$ 294.4 billion as at end-March 2012 (30th
March 2012).
The global macro economic conditions have been affected by
the debt crisis in Euro zone area and the modest recovery of the US economy.
Growth also slowed down in emerging and developing economies (EDEs) reflecting
the combined impact of monetary tightening and slowdown in global growth. Going
forward, the global macroeconomic environment seems to be challenging. While US
economy is showing signs of improvement, a sustainable solution to the debt
crisis in Euro zone area is yet to emerge. The rise in international crude oil
prices since the beginning of 2012 also reflects both geo-political concerns
and abundant global liquidity.
The available projections for 2012-13 by RBI and Economic
Survey within the range of 7.3% to 7.6% suggest a moderate improvement in domestic
macro economic situation compared to the previous year. However, the
inflationary situation still remains challenging considering the uncertainty in
international commodity prices and incomplete pass through of past price
increase in the international market to domestic petroleum product prices.
Banking Trends during
2011-12
To contain
inflation and anchor inflation expectations RBI extensively used the policy
rates in 2011-12. After raising the policy rate by 375 basis points during
March 2011- October 2011, the regulator paused the rates in its mid-quarter
review (MQR) of December 2011.
SCBs credit growth
decelerated from 22.1% at the beginning of 2011-12 to 15.4% by February 2012
reflecting slower economic activity. However, it picked up to 19.3% as on 30th
March 2012, higher than the indicative projection of 16%. The deceleration in
credit growth was broad-based across agriculture, industry, services and
personal loans. The pick-up in non-food bank credit towards the year-end was on
account of increased credit flow to agriculture and industry. Net bank credit
to the Central Government increased at a significantly higher rate of 15.7% in
2011-12 as compared with 8.4% in the previous year reflecting higher
borrowings.
SCBs deposits
growth decelerated in the financial year 2011-12. Deposits lagged behind mainly
due to the tight liquidity condition in the market and higher inflation.
Moreover, people preferred other sources of investment,
despite offering a higher rate of interest for Deposits by banks. Deposit
growth fell to as low as 13.4% on the week ending March 23, but picked up
substantially to 17.4% year-on-year by March 30, largely due to a pickup in
one-off, short-term corporate deposits.
During 2011-12, money supply (M3) growth, which was 17% at
the beginning of the financial year, moderated during the course of the year to
about 13% by end-March 2012, lower than the RBI’s indicative trajectory of
15.5%, mirroring both tightness in primary liquidity and lower credit demand
during most part of the year.
The liquidity cndition remained deficit throughout in the
financial year 2011-12. The deficit went beyond the RBI’s comfort level of 1%
of NDTL of banks. The average net injection of liquidity under the daily
liquidity adjustment facility (LAF) increased from around `0.5 trillion during April-September 2011 to around `1.4 trillion during February 2012 and further to `1.6 trillion during March 2012. In order to mitigate the
liquidity tightness, the RBI took steps to inject primary liquidity. It
conducted open market operations (OMOs) aggregating around `1.3 trillion between November 2011 and March 2012. Further,
the cash reserve ratio (CRR) was reduced by 125 basis points (50 basis points
effective January 28, 2012 and 75 basis points effective March 10,2012),
injecting primary liquidity of about `0.8 trillion.
As far as money market is concerned, the 10-year benchmark
government security yield remained range-bound during the first half of
2011-12. It firmed up in October 2011 on account of increased market borrowing,
policy rate hikes and persistent liquidity tightness. The yield hardened again
somewhat towards end of March 2012 reflecting concerns about government
borrowing programme in 2012-13, which is significantly larger than even the expanded
programme of 2011-12.
The currency market was under pressure during August –
December 2011-12, due to a slowdown in capital inflows reflecting global
uncertainty. The rupee touched its all-time low of 54.23 against the dollar on
15th of December 2011. Subsequently, the exchange rate established in response
to the measures undertaken by the RBI and the government aimed at improving
dollar supply in the foreign exchange market as also to curb speculation.
In its Second Quarter Review of Monetary Policy 2011-12, RBI
has decided to deregulate the savings bank deposit interest rate with immediate
effect. Banks are now free to determine their savings bank deposit interest
rate, subject to the conditions that each bank will have to offer a uniform
interest rate on savings bank deposits up to 0.100 Million, irrespective of the amount in the account
within this limit and for savings bank deposits over Rs.0.100 Million, a bank may provide differential rates of
interest, if it so chooses. However, there should not be any discrimination
from customer to customer on interest rates for similar amount of deposit.
The RBI has also announced the deregulation of Interest
Rates on Non-Resident (External) Rupee (NRE) Deposit rates and Ordinary
Non-Resident (NRO) Savings Accounts. Accordingly, banks are now free to
determine their interest rates on both savings deposits and term deposits of
maturity of one year and above under NRE Deposit accounts and savings deposits
under NRO Accounts. However, interest rates offered by banks on NRE and NRO
deposits cannot be higher than those offered by them on comparable domestic
rupee deposits.
BANK’S OPERATIONAL PERFORMANCE
Deposit Mobilization
During the year 2011-12 emphasis was laid on clientele expansion
with strategy of lining up a series of campaigns for CASA growth. The campaigns
saw opening of over 8.9 lakh Current and Savings accounts. Key Branches and New
branches were focused for retail deposits. Special Deposit schemes namely Corp
Smart Gain and Corp Super Smart were introduced with a view to mobilize short
term deposits for periods ranging from 75 days to 1 year under which
Rs.21600.000 Millions under Super Smart and Rs.3965.800 Millions under Smart Gain FD were mobilized.
PERFORMANCE HIGHLIGHTS:
The Non Bank
Deposits of the Bank has reached a level of Rs.1166010.000 Millions as at 31st
March, 2012 registering a year-on-year growth of Rs.196900.000 Millions at
20.3%. The total deposits of the Bank including CD’s reached a level of
Rs.2366110.000 Millions as at 31st March 2012, registering year on- year growth
of Rs.330130.000 Millions at 16.21%.
Current Deposits
stood at Rs.122750.000 Millions as against Rs.140420.000 Millions in the
previous year.
Savings Deposits
reached Rs.178080.000 Millions with net accretion of Rs.15820.000 Millions at
9.7% Y-O-Y growth.
The Share of
Demand Deposits in total Non Bank Deposits stood at 26%.
Term deposits
reached a level of Rs.865180.000 Millions with a net accretion of Rs.198750.000
Millions at a growth rate of 29.8% Y-O-Y.
The Average Non
Bank Deposits of the Bank increased by Rs.215590.000 Millions and stood at Rs.1007600.000 Millions as at 31st March, 2012 recording a
growth of 27.2% year-on-year. Average CASA grew by 11.0% with net accretion of
Rs.23330.000 Millions and stood at Rs.235890.000 Millions.
The Bank has added
20,46,850 New Deposit Accounts during the year of which 16,55,052 new accounts
have been added under Demand Deposits.
AUDITED FINANCIAL RESULTS
FOR THE YEAR ENDED 31ST MARCH 2013
Rs. In Millions
|
Sr. No. |
Particular |
Quarter Ended |
Year Ended |
|
|
|
|
31.03.2013 (Audited)
|
31.12.2012 (Reviewed)
|
31.03.2013 (Audited)
|
|
|
|
|
|
|
|
1. |
Interest earned (a)+(b)+(c)+(d) |
40680.975 |
38708.836 |
153340.827 |
|
|
(a)
Interest / Discount on Advances / Bills |
30590.453 |
28378.639 |
114489.279 |
|
|
(b)
Income on Investments |
9073.595 |
9111.456 |
34317.476 |
|
|
(c)Interest
on balances with Reserve Bank of India and other interbank funds |
100.443 |
14.341 |
415.763 |
|
|
(d)
Others |
916.484 |
1204.400 |
4118.309 |
|
2. |
Other
Income |
5673.981 |
3869.608 |
16079.383 |
|
3. |
TOTAL INCOME (1+2) |
46354.956 |
42578.444 |
16940.210 |
|
|
|
|
|
|
|
4. |
Interest
Expended |
31373.190 |
29874.915 |
119082.344 |
|
|
|
|
|
|
|
5. |
Operating
Expenses (i) + (ii) |
5757.122 |
5114.235 |
19967.812 |
|
|
(i)
Employees cost |
2843.173 |
2633.521 |
9903.065 |
|
|
(ii)
Other Operating Expenses |
2913.949 |
2480.714 |
10064.747 |
|
|
(All items
exceeding 10% of the total expenditure excluding
interest expenditure may be shown separately) |
|
|
|
|
6. |
TOTAL EXPENDITURE
(4+5) Excluding Provisions and contingencies) |
37130.312 |
34989.150 |
139050.156 |
|
|
|
|
|
|
|
7. |
Operating
Profit before Provisions and Contingencies (3-6) |
9224.644 |
7589.294 |
30370.054 |
|
|
|
|
|
|
|
8. |
Provisions
(other than tax ) and Contingencies |
4599.256 |
4060.567 |
13514.020 |
|
|
|
|
|
|
|
9. |
Exceptional
items |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
10. |
Profit
(+)/Loss (-) from ordinary Activities before tax (7-8-9) |
4625.388 |
3528.727 |
16856.034 |
|
|
|
|
|
|
|
11. |
Tax
Expense |
1070.078 |
497.000 |
2509.286 |
|
|
|
|
|
|
|
12. |
Net Profit
(+)/Loss (-) from ordinary Activities
after tax (10-11) |
3555.310 |
3031.727 |
14346.748 |
|
|
|
|
|
|
|
13. |
Extraordinary
items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
14. |
Net Profit(+)/Loss
(-) for the period
(12-13) |
3555.310 |
3031.727 |
14346.748 |
|
|
|
|
|
|
|
15. |
Paid-up
equity share capital (Face value of the Share is Rs. 10) |
1529.144 |
1481.293 |
1529.144 |
|
|
|
|
|
|
|
16. |
Reserves
excluding revaluation reserves (as per balance sheet of previous accounting year) |
94127.828 |
81277.963 |
94127.828 |
|
|
|
|
|
|
|
17. |
Analytical
Ratios |
|
|
|
|
|
(i) Percentage of shares
held by Government of India |
59.82 |
58.52 |
59.82 |
|
|
(ii)
Capital Adequacy Ratio |
|
|
|
|
|
Basel I |
11.38 |
11.67 |
11.38 |
|
|
Tier I |
7.69 |
7.51 |
7.69 |
|
|
Tier
II |
3.69 |
4.16 |
3.69 |
|
|
Basel II |
12.33 |
12.57 |
12.33 |
|
|
Tier I |
8.33 |
8.08 |
8.33 |
|
|
Tier
II |
4.00 |
4.49 |
4.00 |
|
|
(iii)
Earnings Per Share (EPS) (in Rs.) |
|
|
|
|
|
a) Basic and
diluted EPS before
Extraordinary items (net
of tax
expense) for
the period, for the year to date and for the previous year (Not annualized) |
23.92 |
20.47 |
96.74 |
|
|
b) Basic
and diluted EPS after Extraordinary items for the period, for the year to date and for
the previous year (not
annualized) |
23.92 |
20.47 |
96.74 |
|
|
(iv)
NPA Ratios |
|
|
|
|
|
(a)
Gross NPA |
20482.298 |
22841.296 |
20482.298 |
|
|
(b)
Net NPA |
14108.789 |
16975.557 |
14108.789 |
|
|
(c)%
of Gross NPA |
1.72 |
2.18 |
1.72 |
|
|
(d)%of Net NPA |
1.19 |
1.63 |
1.19 |
|
|
(v)
Return on Assets |
0.81 |
0.74 |
0.88 |
|
|
|
|
|
|
|
18. |
Public
Shareholding |
|
|
|
|
|
Number
of Shares (in lakhs) |
614.40 |
614.40 |
61.440 |
|
|
Percentage
of Share Holding |
40.18 |
41.48 |
4.018 |
|
|
|
|
|
|
|
19. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
(a) Pledged/ Encumbered |
|
|
|
|
|
Number
of Shares |
0.000 |
0.000 |
0.000 |
|
|
Percentage
of Shares (as a% of
the total
shareholding of promoter and promoter group) |
0.000 |
0.000 |
0.000 |
|
|
Percentage
of Shares (as a % of the total share capital of the Company) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
(b) Non-encumbered |
|
|
|
|
|
Number
of Shares (in lakhs) |
914.73 |
866.93 |
91.473 |
|
|
Percentage
of Shares (as a% of
the total
shareholding of promoter and promoter group) |
100 |
100 |
100 |
|
|
Percentage
of Shares (as a % of the total share capital of the Company) |
59.82 |
58.52 |
59.82 |
HEAD OFFICE MANGALORE
SUMMARIZED BALANCE SHEET
Rs. in Millions
|
CAPITAL AND LIABILITIES |
31.03.2013 |
|
|
|
|
Capital |
1529.100 |
|
Reserves and Surplus |
94127.800 |
|
Deposits |
1660054.500 |
|
Borrowings |
128988.500 |
|
Other Liabilities and Provisions |
49723.400 |
|
|
|
|
TOTAL |
1934423.300 |
|
|
|
|
ASSETS |
|
|
Cash/Gold and Balances with Reserve Bank of
India |
88478.400 |
|
Balances with Banks and money at Call and
Short Notice |
38354.800 |
|
Investments |
581644.900 |
|
Advances |
1187166.500 |
|
Fixed Assets |
4432.000 |
|
Other Assets |
34346.700 |
|
|
|
|
TOTAL |
1934423.300 |
WEBSITE DETAILS:
Every institution has its start in modest initiatives but what makes it
great is the passion of the people behind it. Carrying the legacy forward with
an undaunted commitment to its vision, the journey of Corporation Bank truly
epitomizes this.
Started about 107 years ago in 1906, with an initial capital of just Rs.5000/-,
Corporation Bank has recorded Rs. 2366110.000 Millions mark in business and
even far more, with over 6164 service outlets across the nation, served by
committed and dedicated 13,000 plus Corp Bankers. Proof of which is seen in its
enviable track record in financial performance. They have many reasons to
cheer, predominant of them is, being able to participate in nation building by
empowering the rural and urban population alike.
Early Mover
Nationalised in 1980, Corporation Bank was the forerunner when it came to
evolving and adapting to the financial sector reforms. In 1997, it became the
Second Public Sector Bank in the country to enter capital market, the IPO of
which was over- subscribed by 13 times. the Bank has many "firsts" to
its credit - Cash Management Services, Gold Banking, m-Commerce,
"Online" approvals for Educational loans, 100% CBS Compliance and
more recently, its pioneering efforts to take the technology to the rural masses
in remotest villages through low-cost branchless banking - Business
Correspondent model. All of which symbolise Bank's unswerved commitment to its
customers to provide convenience banking.
At Corporation Bank, what motivates them is the passion to excel in banking by
maintaining highest standards of service to their customers, backed by
innovative products and services which makes them one of the Public Sector
Banks in the country, catering to a wide range of customers - from individuals
to corporate clients.
NEWS
Corp Bank may require up to Rs 16000.000 Millions more capital in
2013-14
Kolkata, July 18 (PTI) State-owned Corporation Bank today said it would
require up to Rs 1,6000.000 Millions in additional capital in 2013-14.
"We are well capitalized in the current year 2012-13 even under Basel III
norms. We will require additional capital from next year and in a severe
condition the need will be Rs 1,6000.000 Millions," Corp Bank chairman and
managing director Ajai Kumar told reporters on the sidelines of FICI organized
banking conclave.
Explaining the 'severe conditions', Kumar said the capital requirement
would depend on requirement to maintain risk-weighted capital and even on the
higher side the bank would need Rs 1,6000.000 Millions capital.
The bank was keeping all options open including capitalization from the
government to raise the fund. The bank now has CAR of 12 per cent.
Speaking about bulk deposit diktat of the banking regulator, Kumar said the
bank would not be able to bring down the bulk deposit to 10 per cent by March
2013 from the close to 40 per cent now.
He indicated that he would seek more time to meet the guidelines.
Kumar said the bank expected that there would be more slippage during the year
and net NPA could rise to around 1.25 per cent in 2012-13.
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.58.27 |
|
|
1 |
Rs.91.15 |
|
Euro |
1 |
Rs.77.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
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.