MIRA INFORM REPORT

Report Date :

18.06.2013

IDENTIFICATION DETAILS

Name :	BANK OF INDIA

Registered Office :	Oriental Building, Espanade Road, Mumbai, Maharashtra

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	07.09.1906

Com. Reg. No.:	11-000243

Capital Investment / Paid-up Capital :	Rs. 5966.414 Millions

CIN No.: [Company Identification No.]	U99999MH1906PTC000243

Legal Form :	A Public Sector Commercial Bank. The Bank's Shares are Listed on the Stock Exchanges.

Line of Business :	Banking and Financial Services.

No. of Employees :	42146 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (81)

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

Maximum Credit Limit :	USD 956700000

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an old and well-established bank having an excellent track record. The Government of India holds 64.11% stake in the bank. The financial position of the company is sound and healthy. Trade relations are reported as trustworthy. Business is active. Payment terms are regular and as per commitments. The bank can be considered excellent for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Corporate Governance Practices of Bank of India : CGR2
Rating Explanation	The Bank would provide its financial stakeholders a high level of assurance on the quality of corporate governance.
Date	April 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Sinha
Designation :	International Department
Contact No.:	91-22-66684444
Date :	17.06.2013

LOCATIONS

Registered Office :	Oriental Building, Espanade Road, Mumbai, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	boigmcm@vsnl.net hoshares@bankofindia.co.in
Website :	http://www.bankofindia.com http://www.bankofindia.co.in

Head/ Corporate Office 1 :	Star House, C-5, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India
Tel. No.:	91-22-66685616/ 66684450/ 66684444
Fax No.:	91-22-66684503/ 66684789
E – Mail :	boigmcm@vsnl.net hoshares@bankofindia.co.in ho.csd@bankofindia.co.in
Website :	http://www.bankofindia.com

Corporate Office 2 :	14^th Floor Express Towers, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22023020 (36 lines)
Fax No.:	91-22-22024701/ 56684558/ 22824212
E-Mail :	boicic@bom5.vsnl.net.in
Website :	http://www.bankofindia.com

Zonal / Branch Offices :	Located at : v Agra v Ahmedabad v Amritsar v Karnataka v Bhagalpur v Bhopal v Bhubaneshwar v Bokaro v Chandigarh v Chennai v Coimbatore v Dhanbad v Gandhinagar v Ghaziabad v Guwahati Zone v Hazaribagh v Howrah v Hyderabad v Indore v Rajasthan v Jamshedpur v Kanpur v Keonjhar v Khandwa v Kolhapur v Kolkata v Lucknow v Ludhiana v Mumbai Large Corporate Banking v Mumbai North v Mumbai South v Muzaffarpur v Nagpur-I v Nagpur-II v Navi Mumbai v Raigad v New Delhi v Goa v Patna v Pune v Raipur v Rajkot v Ranchi v Ratnagiri v Solapur v Ujjain v Vadodara v Varanasi v Visakhapatnam v Kerala v Siliguri

Overseas Offices :	Located at : v New Zealand v USA v France v Belgium v Japan v Hong Kong v China v Kenya v Singapore v Combodia v Indonesia v Vietnam v South Africa v UAE

DIRECTORS

AS ON 31.03.2013

Name :	Mrs. V.R. Iyer
Designation :	Chairperson and Managing Director

Name :	N. Seshadri
Designation :	Executive Director

Name :	M. S. Raghavan
Designation :	Executive Director

Name :	B.P. Sharma
Designation :	Executive Director

Name :	Umesh Kumar
Designation :	Director

Name :	P.R. Ravi Mohan
Designation :	Director

Name :	K. K. Nair
Designation :	Director

Name :	Mr. Neeraj Bhatia
Designation :	Director

Name :	Mr. Harvinder Singh
Designation :	Director

Name :	P. M. Sirajuddin
Designation :	Director

Name :	Mr. Umesh Kumar Khaitan
Designation :	Director

Name :	Mr. Pramod Bhasin
Designation :	Director

Name :	A. M. Pereira
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Sinha
Designation :	International Department

General Managers :	v Vivekananda Das (CVO) v A.P. Ghugal v N.C. Khulbe v S.K. Datta v Munir Alam v R.N. Tayal v R. Ravichandran v S.C. Arora v P.S. Rawat v Rakesh Sethi v Gauri Shankar v B.B. Joshi v Prem Kumar v P.K. Bajaj v R.A. Sankara Narayanan v R.K. Verma v Pushpinder Singh v Rajiv Saxena v Debashish Chakraborty v S. Narasimhan v Charan Singh v P.K. Patnaik v Anil Kumar Verma v A.B. Rane v B.L. Salian v R.N. Kar v Arihant Kumar Jain v Ramesh Chandra Baliar Singh v G.B. Kakade v Vikas Pande v Rabindra Mohan Prasad v M.B. Dhodia v Anil Kumar Bhalla v M.D. Vernekar

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	382006827	64.11
Sub Total	382006827	64.11
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	382006827	64.11
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4088309	0.69
Financial Institutions / Banks	1199601	0.20
Insurance Companies	92068869	15.45
Foreign Institutional Investors	80619704	13.53
Sub Total	177976483	29.87
(2) Non-Institutions
Bodies Corporate	3348904	0.56
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	29597873	4.97
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	658588	0.11
Any Others (Specify)	2313652	0.39
Overseas Corporate Bodies	160200	0.03
Non Resident Indians	2153452	0.36
Sub Total	35919017	6.03
Total Public shareholding (B)	213895500	35.89
Total (A)+(B)	595902327	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	595902327	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Name of Shareholder	No. of Shares	Percentage of Holding
President of India	38,20,06,827	64.11
Total	38,20,06,827	64.11

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Name of Shareholders	No. of Shares	Percentage of Holding
Life Insurance Corporation of India	76419557	12.82
Lazard Asset Management LLC A/c Lazard	23216845	3.90
Total	99636402	16.72

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Name of Shareholder	No. of Shares	Percentage of Holding
Life Insurance Corporation of India	76419557	12.82
Total	76419557	12.82

Details of Locked-in Shares

Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
President of India	38,20,06,827	64.11
Total	38,20,06,827	64.11

BUSINESS DETAILS

Line of Business :

Banking and Financial Services.

GENERAL INFORMATION

No. of Employees :	42146 (Approximately)

Bankers :	Reserve Bank of India


Banking Relations :	--

Statutory Auditors :
Name :	v Chaturvedi and Shah Chartered Accountants v Karnavat and Company Chartered Accountants v Sankaran and Krishnan Chartered Accountants v L B Jha and Company Chartered Accountants v SRB and Associates Chartered Accountants v Isaac and Suresh Chartered Accountants

Joint Venture :	Star Union Dai–Ichi Life Insurance Company Limited

Subsidiaries :	· BOI Shareholding Limited · PT Bank of India Indonesia Tbk (Formerly known as PT Bank Swadeshi) · Bank of India (Tanzania) Limited · Bank of India (New Zealand) Limited · Bank of India (Uganda) Limited · BOI AXA Investment Managers Private Limited · BOI AXA Trustee Services Private Limited

Associates :	v STCI Finance Limited. v ASREC (India) Limited v Indo-Zambia Bank Limited v 4 Regional Rural Banks sponsored by the Bank: · Aryavart Kshetriya Gramin Bank (Formerly Known as Aryavart Gramin Bank) · Jharkhand Gramin Bank · Narmada Jhabua Gramin Bank; (Formerly Known as Narmada Malwa Gramin Bank) · Vidharbha Konkan Gramin Bank; (Formerly known as Wainganga Krishna Gramin Bank

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

3000000000	Equity Shares	Rs.10/- each	Rs.30000.000 Millions

Issued, Subscribed Capital :

No. of Shares	Type	Value	Amount

597079427	Equity Shares	Rs.10/- each	Rs. 5970.794 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount

595902327	Equity Shares	Rs.10/- each	Rs. 5959.023 Millions
	Add: Amount of shares forfeited		Rs. 7.391 Millions

	Total		Rs. 5966.414 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011

CAPITAL & LIABILITIES
Capital	5966.414	5745.195	5472.195
Reserves & Surplus	233215.148	203872.653	167434.602
Deposits	3818395.859	3182160.332	2988858.063
Borrowings	353675.848	321142.250	220213.756
Other Liabilities & Provisions	114773.914	132434.284	129746.875

GRAND TOTAL	4526027.183	3845354.714	3511725.491

ASSETS
Cash & Balances with Reserve Bank of India	219670.365	149867.100	217824.332
Balances with Banks & Money at Call & Short Notices	328688.229	197245.445	155275.558
Investments	946134.318	867535.861	858724.176
Advances	2893674.972	2488333.442	2130961.817
Fixed Assets	28701.254	27715.922	24807.363
Other Assets	109158.045	114656.944	124132.245

GRAND TOTAL	4526027.183	3845354.714	3511725.491

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2013	31.03.2012	31.03.2011

INCOME
Interest Earned	319089.290	284806.664	217517.238
Other Income	37660.431	33211.732	26417.749
TOTAL	356749.721	318018.396	243934.987

EXPENDITURE
Interest expended	228849.298	201672.330	139410.323
Operating Expenses	53315.467	49406.581	50682.387
Provisions & Contingencies	47091.490	40164.330	28955.213
TOTAL	329256.255	291243.241	219047.923

PROFIT
Net Profit for the year	27493.466	26775.155	24887.064
Profit brought forward	--	--	0.000
TOTAL	27493.466	26775.155	24887.064

APPROPRIATION
Transfer to statutory reserve	6873.367	6693.789	6250.000
Transfer to revenue reserve	10335.542	12852.324	12158.730
Transfer to capital reserve	317.318	101.223	49.817
Transfer from/ to special reserve - Currency swap	(3.654)	(31.941)	(14.437)
Final dividend (including dividend tax)	6970.893	4659.760	4442.954
Special reserve u/s Sec 36(1) (viii) of income tax act, 1961	3000.000	2500.000	2000.000
Total	27493.466	26775.155	24887.064

Earnings Per Share (Rs.)	47.79	48.98	47.35

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

PERFORMANCE HIGHLIGHTS

FINANCIAL PARAMETERS

· Operating profit Rs. 74590.000 Millions.

· Net Profit Rs.27490.000 Millions, recording 2.67% growth over previous year.

· Net Interest Margin (NIM) as on 31.03.2013 is 2.46%.

· Capital Adequacy Ratio at 11.02% as against 10% prescribed by Reserve Bank of India.

· Net Worth at Rs.216210.000 Millions grew by 15.26% over March 2012.

· Book Value per share Rs. 362.37 (Rs. 326.52 previous year)

· Gross NPA ratio at 2.99%.

· Net NPA ratio at 2.06%.

· Total business (Deposit + Gross Advances) reached at Rs.6748080.000 Millions recording a growth of Rs.1050980.000 Millions (18.45%). Domestic business grew by 16.81% to reach the level of Rs. 4981030.000 Millions.

· Total deposits increased by Rs.636240.000 Millions reached the level of Rs.3818400.000 Millions, a growth of 19.99%. Domestic deposits increased by 18.35% to reach the level of Rs. 2940670.000 Millions. Share of low cost deposits in the domestic deposits is 32.79%.

· Gross credit touched Rs.2929680.000 Millions, recording a growth of 16.49% with domestic credit recording a growth of 14.66% to reach level of Rs.2040360.000 Millions.

· Priority Sector lending constituted 37.83% of Net Adjusted Bank Credit and the share of Agricultural Credit to Adjusted Net Bank Credit was 15.47%.

· Credit to MSME sector grew from Rs. 302320.000 Millions to Rs.372300.000 Millions recording a growth of 23.14%.

· Schematic Retail Credit grew by 19.25% from Rs.146770.000 Millions to Rs.175020.000 Millions.

· Export Credit stood at Rs.95310.000 Millions registered a growth of Rs.12080.000 Millions, i.e., 14.51% growth over previous year.

· Return on Assets (ROA) is 0.65%.

· Return on Equity (ROE) is 13.62%.

NEW PRODUCTS AND SERVICES

· Welcome Kits introduced for NRI Customers opening NRE/NRO accounts at foreign centers.

· As per Finance Ministry guidelines and recommendations, the Bank’s corporate web-site (English) has been enabled for persons with Disabilities.

· The Bank has introduced a new format of Savings Bank Passbook (Horizontal Format) which will print all details of the transaction on the same page as against the existing format (Vertical Format) where the details are printed on two pages.

· New facilities introduced for BOI Net Banking user. Fixed Deposit scheme- Star Sunidhi Tax saving with nomination facility introduced. The BOI PPF account holders can now make online deposit.

· Self-operating SB pass book printing kiosk has been introduced.

· As per Banking Codes and Standards Board of India (BCSBI) requirements, the Bank is printing help line number on the passbook and statement of accounts.

· Quarterly consolidated Statement of a/c is sent to the Diamond customers in PDF format via email.

· As a fraud prevention measure, SMS alerts – Star Sandesh are generated and provided to all customers who have registered their mobile number with the Bank for all Debit transactions from delivery channels (Internet banking/ATM/POS); all Debit clearing transactions of Rs.0.025 Million and above; all Customer induced debit transfer and cash payments of Rs.0.010 Million and above; all Debit ECS transactions of Rs.0.010 Million and above; all Debit RTGS transactions and acknowledgment on accepting the cheque book issue request. Hot Listing/Reset/Unblock/Change of Debit Cum ATM card PIN using Internet Banking password.

· Viewing of Annual Tax Statement (Form 26AS).

· Star eTrade – Online share trading – Integration with Gupta Equities.

· Extended the facility of online e-Payment to the customers holding Bank’s Debit-cum-ATM card. This will enable the customers to use their Debit-cum-ATM cards for e-payments in addition to credit card Internet banking account.

· Mobile Banking facility is introduced as the latest alternate delivery channel which allows customers to do banking activities virtually from the convenience of the Mobile phone at any time and from anywhere. This facility is extended to all Retail internet banking customers and includes features like Balance enquiry, last five transactions, Cheque status, Funds Transfer and Mobile Payments.

· Online Interbank Fund Transfer across banks, through Star Connect Internet Banking Services, using RTGS / NEFT.

· BOI Star e-Pay for Auto-pay or on-line payment of various utility services / bills.

· e-Payment for Direct and Indirect, Central Excise and Service Tax.

· Star e-Share Trade to trade in shares.

· e-Freight Payment.

· Online Payment of Directorate General of Foreign Trade (DGFT) license fees.

· Online Booking of Railway and Airlines Ticket.

· Online Application for Education loan.

· Provision to make online bid-cum-application for Application Supported by Blocked Amount (ASBA) IPO issues by Retail Internet Banking Customers having account with any DPO.

· BOI-BTM (Banking through Mobile launched).

· DHAN-AADHAR CARD Launched with micro ATM and Biometric pin authentication facility.

· Introduction of Personal Accident Insurance Cover for all No Frill account holders.

· Bank has launched BOI Star Pension Aadhar Card, BOI Privilege International Credit and Debit Cards and RuPayCard as alternate delivery channels.

· For International Travellers BOI Star International Travel Card in US Currency with Visa Affiliation has been introduced.

BUSINESS INITIATIVES

· Presently 52 Rural Processing Centres are operational across 33 zones.

· Product Innovation Cells are planned to be opened to explore new territories for penetration in agricultural business.

· All RRBs of the Bank have migrated to Core Banking Solution and are RTGS / NEFT enabled.

· Cash and Fidelity Insurance has been introduced for business correspondent channel.

· 21 Retail Business Centres are operational for quick delivery of Credit.

· Bank has introduced Star Vidhya Education Loan, BOI Star Loan against Property and Star Diamond Home Loan Schemes.

· A total of 100 SME City Centres are functioning in 50 zones. These centres have been instrumental in reduced Turn Around Time(TAT) for credit delivery.

· The 42 Mid-Corporate branches are monitored by Seven Divisional Managers across 51 zones.

· Bank has introduced Diamond / Platinum / Gold Customer concept for encouraging SME customers with good track record.

· Bank has launched Composite Loan Product and Demand / Term Loan Products for Medium and Small Enterprises. For SME Entrepreneurs, Star SME Contractor Credit Line, Star SME Liquid Plus, Star SME Auto Express and Star SME Education Plus Loans Schemes have been introduced.

· The 10 Large Corporate branches are directly monitored by the General Manager from Head Office.

· Lead Management System (Sales Force Automation), to generate, track and monitor leads, is stabilized and functioning satisfactorily.

· A scheme for extending financial assistance at concessional rate of 4% to selected low income groups for productive endeavours under the Differential Rate of Interest (DRI) Scheme is being implemented by the Bank. The Bank has extended financial assistance to 18806 beneficiaries during the year.

· The Bank has been actively involved in implementation of the Golden Jubilee Rural Housing Finance Scheme (GJRHFS) and has achieved the target allocated by National Housing Bank for the year. During the year, Bank has sanctioned 15302 cases under GJRHFS.

· The Bank is very active in implementing Financial Inclusion extending all banking products and services to all who are currently deprived of these services. So far, the first step towards achievement of Financial Inclusion was opening of No-Frill Accounts and accordingly, the Bank has opened 79.83 lakh No- Frill Accounts during FY 2012-13.

· The Bank is also implementing IT solutions on end to end basis using hand held devices and smart cards. The Bank has issued 11.87 lakh smart cards.

· Project Finance And Syndications Group: It takes up assignments of technical appraisal, underwriting and syndication of loans. During FY 12-13 financial closures were amounting to project cost of Rs. 140180.000 Millions and syndicated debt of Rs. 69050.000 Millions.

· Established Global Remittance Centre for centralizing some of the activities related to NRI Customers which would hasten turnaround time and product delivery and also enable proactive marketing strategies and grievance redressal mechanism.

AWARDS AND ACCOLADES

· The Bank has been awarded as “The Best Bank for excellence in AADHAR related UIDAI programme of Government of India at the hands of Prime Minister at DODU village near Jaipur in Rajasthan”

· The Bank has been awarded the ‘Outlook Money Award 2012’ for “Best Education Loan” provider.

· Bank has been declared ET’s 2nd Most Trusted Brand in India.

· The Bank has been conferred with National Award-2011 for implementing PMEGP scheme in West Zone.

· The Bank has been adjudged Second Rank by Ministry of MSME, New Delhi based on its performance in lending to Micro Enterprises.

· Bank of India received the Winners Award in International Banking Technology Award 2010 from IBA in the best Business Enablement Initiative category.

FINANCIAL REVIEW

FINANCIAL PERFORMANCE

The Bank recorded an Operating Profit of Rs. 74580.000 Millions, (previous year Rs. 66940.000 Millions). Net Profit stood at Rs.27490.000 Millions (previous year Rs.26780.000 Millions).

Net interest income grew by 8.55% due to rise in volume of business mix by 18.45% (from Rs. 5697100.000 Millions to Rs.6748070.000 Millions). Non-interest income increased by 13.37% and covered 70.64% of Operating Expenses as against 67.23% in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMIC SCENARIO:

In the current scenario, emerging market and developing economies are doing well but in advanced economies, there is a growing bifurcation between the United States on and the Euro area. This is reflected in the various forecasts. Growth in emerging market and developing economies was 5.3 percent in 2013 and estimated to reach 5.7 percent in 2014. Growth in the United States is expected to be 1.9 percent in 2013 when final data arrives and 3.0 percent in 2014. In contrast, growth in the Euro area is expected to be –0.3 percent in 2013 and 1.1 percent in 2014.

The forecast for negative growth in the Euro area reflects not only weakness in the periphery but also some weakness in the core. The process of devaluation is taking place, and most of these countries are becoming more competitive. However, external demand is not strong enough to compensate weak internal demand. In the Euro area, institutional progress has been made over the past year, in particular on creating a road map for a banking union. The Outright Monetary Transactions program offered by the European Central Bank has reduced tail risks. The interest rates facing borrowers in periphery countries are still too high to secure the recovery and there is need for measures to strengthen banks.

Emerging market economies face different challenges, one of which is handling capital flows. Fundamentally attractive prospects in emerging market economies, together with low interest rates in advanced economies, are likely to lead to continuing net capital inflows and exchange rate pressures in emerging market economies. Capital flows can be volatile, making macroeconomic management more difficult. The challenge for recipient countries is to reduce the volatility of capital flows when they threaten macro or financial stability. In short, recent good news about the United States has come with renewed worries about the euro area, given the strong interconnections between the two.

OUTLOOK FOR 2013-14

Global prospects have improved again but the road to recovery in the advanced economies will remain difficult. World output growth was 3¼ percent in 2013 and is estimated to reach 4 percent in 2014. In the major advanced economies, activity is expected to gradually accelerate, following a weak start to 2013. Advanced economy policy makers have successfully defused two of the biggest threats to the global recovery, a breakup of the euro area and a sharp fiscal contraction in the United States caused by a plunge off the “fiscal cliff.”

In the short term, risks mainly relate to developments in the Euro area, including uncertainty about the fallout from events in Cyprus and Italy as well as vulnerabilities in the periphery. In the medium term, the key risks relate to insufficient institutional reform and prolonged stagnation in the euro area as well as high fiscal deficits and debt in the United States and Japan. In advanced economies, the right macroeconomic approach continues to be gradual but sustained fiscal adjustment and an accommodative monetary policy aimed at supporting internal demand. The United States and Japan still need to devise and implement strong medium-term fiscal consolidation plans. In emerging market and developing economies, some tightening of policies appears appropriate. This tightening should begin with monetary policy supported with prudential measures.

DOMESTIC ECONOMIC SCENARIO

According to Central Statistical Organization (CSO) Indian economy grew 5.0 per cent in 2012-13. The growth is on the lower side not only as compared to the recent past but also in the context of growth trends witnessed since 2003-04. The slowdown in the growth of the economy in 2012-13 is mainly on account of industrial sector which grew 3.1 per cent in 2012-13 as against 3.5 per cent in 2011-12 and a lower growth of 1.8 per cent in agriculture sector. Services sector grew at the rate of 6.6 per cent in 2012-13, which is also lower than that achieved in 2011-12. The slowdown in 2011-12 and 2012-13 has been precipitated by domestic as well as global factors, Domestic factors, including the tightening of monetary policy resulted in slowing down of investment and growth, particularly in the industrial sector.

In the domestic front, Inflation did ease in 2012-13 vis-à-vis higher levels prevailing in 2011-12. However, the pace of decline has been slow, denying requisite flexibility to the RBI to undertake sufficient reduction in the policy rates. The Indian economy is expected to register a growth rate of 5.7 per cent in 2013-14 as against 5 per cent in 2012-13. Moreover, with the reform measures undertaken recently along with expectations of improvement in the global economic scenario, there is a possibility of revival of growth in 2013-14.

On the fiscal deficit front, Government is committed to a fiscal consolidation target of 5.3% of GDP. However, the revised estimate pegged the deficit at 5.2% for FY 2012-13. This was achieved through a reduction in Plan expenditure and borrowing programme was also lower at Rs.5.59 lakh crore for 2012-13 vis-à-vis the Budget Estimate of Rs.5.75 lakh crore. Government has projected fiscal deficit target for FY 2013-14 at 4.8%.

However, the rising current account deficit is a concern. It was 6.7% of GDP during the third quarter of 2012-13. Exports are declining at a faster pace than imports, leading to widening of the deficit. CAD is likely to touch 6% for FY 2012-13. Declining oil and commodity prices is likely to lower the current account deficit for the ensuing financial year. Inflation is also likely to decline further due to subdued oil and commodity prices.

The recent reform measures undertaken by the Government have started to reverse sentiment. Government undertook long anticipated measures towards fiscal consolidation by reducing fuel subsidies and selling stakes in public enterprises on an ongoing basis. Further steps to increase FDI in retail, insurance and pension sector should contribute to greater capital inflows.

Inflation is also on a falling trend. WPI inflation for April 2013 was 4.9% which is below the 5% RBI target. CPI inflation for April 2013 was also lower at 100 bps lower than March figure at 9.36%. Though there were significant upward revisions in the WPI inflation figure for the month of January 2013 due to lagged effect of fuel price hikes,

subsequent month figures may see only a modest revision due to the effect of hike in food prices. However of serious concern is the FY 2012-13 industrial growth which came at just 1%.

OUTLOOK FOR FY 2013-14

Growth prospects for 2013-14 are expected to be better as compared to 2012-13. However, there is significant divergence in estimates between various think tanks on the growth estimates for 2013-14. While IMF and private economists peg the growth rate at 5.7-5.8%, the PMEAC (Prime Minister’s Economic Advisory Council) estimates India to grow 6.4% during 2013-14. This comes on the back of improved growth prospects estimated across farm, industry and service segments.

The Asian Development Bank (ADB) maintained that Indian economy could grow at an improved rate of 6 per cent during the current fiscal, provided reforms are put in place at a faster pace to sort out the structural bottlenecks, stem the deteriorating investment situation and the worsening current account deficit (CAD) is brought under check.

A normal monsoon will boost agricultural GDP growth to an above trend rate of 3.5 per cent in 2013-14. With the easing of inflation, RBI is expected to cut interest rates by 50 basis points during 2013- 14. The likely increase in government spending in the form of higher expenditure on social sector schemes and rural development will be driven by the upcoming general elections. Increased expenditure by the government, lower interest rates, moderation in inflation and high farm incomes will boost household spending and benefit sectors such as consumer durables, hotels and restaurants and financial services. Further improved external demand could raise India’s exports, especially in the IT/ITes sector.

Despite higher consumption growth, average WPI inflation is projected to be lower at 6 per cent in 2013-14, as against 7 per cent forecast for 2012-13 on back of normal monsoon, a stronger rupee, and lower crude oil prices. The downside risks to GDP growth forecast for 2013-14 would stem from a failure of monsoon in 2013 and deterioration in global economic prospects.

BANKING INDUSTRY – DEVELOPMENTS OUTLOOK

The performance of the Indian economy is one of the strongest drivers for the banking industry’s growth and vice versa and the average GDP growth of 8.1 per cent expected over 2011–16 will facilitate the expansion of the banking sector. The government policies bringing in monetary stability will also benefit and shield the industry from global economic or political turmoil. The banking sector has outperformed the market from 2010 onwards. A boost in the banking industry is also expected from the rising per capita income in India, which along with a growth in earnings of the country will lead to a higher number of people utilising banking services. Money supply (M3) growth was around 14.0 per cent during Q1 of 2012-13 but decelerated thereafter to 11.2 per cent by end- December as time deposit growth slowed down. There was some pick up in deposit mobilisation in Q4, taking deposit growth to 14.3 per cent by end-March. Consequently, M3 growth reached 13.3 per cent by end-March 2013, slightly above the revised indicative trajectory of 13.0 per cent. The non food credit for 2013-14 for the banking industry is projected at 15% and deposit growth at 14% on a y-o-y basis.

Nonfood credit growth decelerated from 18.2 per cent at the beginning of 2012-13 and remained close to 16.0 per cent for the major part of the year. By March 2013, nonfood credit growth dropped to 14.0 per cent, lower than the indicative projection of 16.0 per cent, reflecting some risk aversion and muted demand. While the Reserve Bank’s credit conditions survey showed easing of overall credit conditions, there was some tightening for sectors such as metals, construction, infrastructure, commercial real estate, chemicals and finance in Q4 of 2012-13.

In consonance with the cuts in the policy repo rate and the cash reserve ratio (CRR) during 2012-13, the term deposit rate declined by 11 basis points (bps) and the base rate by 50 bps. While the decline in the term deposit rate occurred mostly during the first half, the base rate softened by 50 bps to 10.25 per cent on an average in two steps of 25 bps each during Q1 and Q4 of 2012-13. During Q4, 39 banks reduced their base rates in the range of 5-75 bps. The weighted average lending rate of banks declined by 36 bps to 12.17 per cent during 2012-13 (up to February).

Liquidity remained under pressure throughout the year because of persistently high government cash balances with the Reserve Bank and elevated incremental credit to deposit ratio for much of the year. The net average liquidity injection under the daily liquidity adjustment facility (LAF), at Rs.730 billion during the first half of the year, increased significantly to Rs.1,012 billion during the second half. In order to alleviate liquidity pressures, the Reserve Bank lowered the CRR of SCBs cumulatively by 75 bps on three occasions and the statutory liquidity ratio (SLR) by 100 bps during the year. Additionally, the Reserve Bank injected liquidity to the tune of Rs.1,546 billion through open market operation (OMO) purchase auctions. The net injection of liquidity under the LAF, which peaked at Rs.1,808 billion on March 28, 2013 reflecting the year-end demand, reversed sharply to Rs.842 billion by end-April 2013.

Financial Inclusion is another area where banks will have a major role to play. A World Bank Survey conducted in 2011 revealed that only 35 per cent of all adults in India had a bank account with a formal banking institution, while this figure stood at 21 per cent in the poorest income quanti le. This represents a massive opening that financial institutions in the country can leverage upon for future growth. Further, the policies of the Reserve Bank have prioritized financial inclusion, presenting an opportunity that might not manifest itself again. The Indian government has advised banks to open at least one branch in villages with a population of more than 2,000, and also cover the peripheral villages. Banks are also required to formulate a board approved Financial Inclusion Plan (FIP), the implementation of which will be monitored by the RBI.

The Indian government aims to further financial inclusion by setting up ATMs and providing mobile/online banking facilities. Further, experts suggest that the number of ATMs need to increase by 5 times in the coming decade. The mobile banking channel in India is also untapped, with close to 900 million mobile connections, and only 400 million bank accounts. These areas open up diverse opportunities for Indian banking industry.

However, there are certain challenges facing banks in India. They are raising capital to adhere to Basel-III standards, asset quality issues and increasing restructuring cases as well as human resource management issues. A McKinsey report suggests that banks in India need to recruit employees with the both core and specialist skills, and control attrition especially at the junior levels. Non private Indian banks will greatly benefit from productivity improvements, such as a re-engineering of the institutions knowledge processes, better use of technology and building industry level utilities

BUSINESS REVIEW

DEPOSITS

Bank’s total Deposits increased by Rs. 636240.000 Millions to Rs.3818400.000 Millions during the year recording a growth of 19.99%. The growth in domestic deposits was to the tune of Rs.455920.000 Millions or 18.35% over previous year. Non-Resident Deposits of the Bank stood at Rs. 166880.000 Millions which constituted 5.67% of aggregate domestic deposits.

Savings Bank deposits grew by 16.04% and Current deposits logged a growth of 12.01%. The share of low cost deposits comprising of savings and current deposits to total domestic deposits is 32.79%. The Bank has a well diversified deposit base with 12% of domestic deposits coming from rural areas, 13% from semi urban, 19% from

urban and 56% from metro areas. The bank’s total clientele base of 65.11 million consisted of 60.38 million depositors and 4.73 million borrowers as on 31st of March, 2013.

ADVANCES

The gross domestic Credit of the Bank registered a growth of 14.66% from Rs.1779500.000 Millions on 31.03.2012 to Rs.2040360.000 Millions. The growth rate in the last year was 7.75%. Robust sanctions / disbursement by Large Corporate, Mid Corporate, SME and Agriculture segments enabled the growth. Under Large Corporate portfolio, the Bank added 115 new customers and accounts, 10 Corporate Banking Branches, 42 Mid Corporate Branches and 4344 domestic overseas branches continue to cater exclusively to the specialised credit requirement of the Corporate borrowers/exporters.

INFRASTRUCTURE FINANCE

During the year, the Bank sanctioned fund based limits of Rs.112250.000 Millions and Non Fund Based limits Rs. 24660.000 Millions under infrastructure projects in new and existing account covering power, telecommunications, ports, roads etc.

EXPORT CREDIT

The Bank is active in meeting the importers and exporter clients’ financial requirements both in domestic and in foreign currency. Bank’s 215 branches across the country are authorized to handle foreign exchange business and cater to the credit / foreign exchange needs of importers and exporters. The Bank’s export credit registered a growth of Rs.12080.000 Millions i.e. 14.51% increase over March 2012 and reached a level of Rs.95310.000 Millions as on 31st March, 2013. The share of export credit to adjusted net bank credit as at March 2013 was 5.34%. Financial requirements of both exporters and non-exporters are met through ECBs at the Bank’s overseas branches and Foreign Currency loans at domestic branches. The total amount of such advances as on 31.03.2013 was USD 2203 million (Comprising of ECBs USD 1608 Mn and Foreign Currency Loan of USD 595 Mn) equivalent to Rs. 119620.000 Millions. The bank also extended pre-shipment and post-shipment export credit in foreign currency and the amount outstanding as on 31.03.2013 was USD 550 Mn. (equivalent to Rs. 30140.000 Millions).

WHOLESALE AND INTERNATIONAL BANKING GROUP:

LARGE CORPORATE

The Large Corporate segment constituted 48% share in total domestic advances as on 31.03.2013. Advances to this important segment has increased from Rs.892570.000 Millions as on 31.03.2012 to Rs.988010.000 Millions as on 31.03.2013. With implementation of “SANKALP 10,000”, Large Corporate Credit set-up has been re-designed for:.

· Separate Large Corporate Vertical has been created to cater to large corporates having sales turnover above Rs.5000.000 Millions and Project Cost of above Rs. 1000.000 Millions. In order to have more focused attention and to reduce turnaround time, Credit processing Centre has been set up at each LCB with direct reporting to Head Office. A total of 10 Large Corporate branches are catering to the needs of Large Corporate Customers at major business centers such as Mumbai, New Delhi, Chennai, Kolkata, Hyderabad, Bangalore, Ahmedabad and Pune.

· Accounts at Large Corporate branches have been mapped with Relationship Managers who would look after all Corporate needs of the customer for cash management, forex, treasury products, trade finance, deposits, retail banking and third party products and customer will have one point contact through the Relationship Manager for all banking needs.

· Credit business at Large Corporate Branches have been segregated between Relationship Managers reporting to Branch Heads and Credit Appraisal Officers reporting to Credit Team Leader as a measure of Risk Management. Credit proposals processed at Large Corporate Branches are sent directly to General Manager, Head Office, Large Corporate. This has resulted in reduction of turnaround time.

· Bank has put systems in place to monitor pending Proposals / references at Large Corporate branches as well as at Head Office level.

Strategies:

· The Bank, for reducing turnaround time, has developed CAPS module for credit processing.

· Large Corporate branches, apart from meeting the credit needs of borrowers, are now taking care of entire banking needs of the Corporate customers. Large Corporate branches serve as a focal point for corporate clients and to canvass new business.

MID CORPORATE

Mid corporate vertical was established in October 2010 with the sole purpose of meeting all banking related requirements of the customer under a single roof. The purpose of setting up of separate Mid Corporate vertical is to harness the large potential in the segment with offers higher yields with wider risk spread. Mid Corporate covers new companies with project cost of Rs. 100.000 - Rs.1000.000 Millions. For existing units sales turn over criteria of Rs.1000.000 - Rs. 5000.000 Millions applies. Mid Corporate vertical operates through 7 Divisional Offices and 42 Mid Corporate branches. There are 12 Credit Processing Centres (CPC) established exclusively for processing of the proposals. During the FY 2012-13, total Credit under Mid Corporate vertical grew from Rs.204700.000 Millions to Rs.228620.000 Millions registering a growth of 11.69%. Similarly, Deposits grew from Rs.93590.000 Millions to Rs.106550.000 Millions registering a growth of 13.85%. Mid Corporate vertical contributes 11.17% of the total domestic Credit and 3.62% of domestic Deposit business of the Bank.

PROJECT FINANCE AND SYNDICATIONS GROUP

Project Finance and Syndications Group of the bank is manned by highly experienced and qualified professionals. It undertakes appraisals of infrastructure and industrial projects. It takes up assignments of technical appraisal, underwriting and syndication of loans. During the Year 2012-13 financial closures were done with a project cost of Rs.140180.000 Millions and syndicated debt of Rs.69050.000 Millions.

To strengthen the vertical further the bank has recruited Engineers and MBA’s from the Industry with diverse experience. Bank is also acting as Mandated Lead Arranger (MLA) and Joint Book Runner (JBR) for Multicurrency International Syndication loans and arranged loans for Indian Corporates for their expansion / acquisition and Joint Ventures, covering a wide range of industries. The technical appraisal department, which supports the syndication team, continues to appraise of industrial credit apart from syndicated loans. The team comprising professional engineers, evaluated technology related risks for the year, enabling the bank to improve quality of industrial assets. The operations of the department, translated into a fee based income of Rs.164.200 Millions for the year.

TRANSACTION BANKING

Transaction Banking department is focusing on following 4 business lines, with an intention to make them major revenue drivers for the Bank. They are:

· Cash Management Services,

· Channel Finance,

· Trade Finance, and

· Government Business

For Bank’s corporate and HNW clients, cash pick up facility (Door Step Banking) has been put in place at all NBG offices. The initiative has received positive response from target clientele who are relieved from the worries and risks of handling and carrying huge amount of cash to Bank. During the year 2012-13 Bank has made specific marketing efforts and has made liaison Governments of Chhattisgarh (Raipur Zone), Jharkhand (Ranchi Zone), Uttaranchal (Ghaziabad Zone), Assam and Meghalaya (Siliguri Zone) which has yielded good results.

INTERNATIONAL BANKING

The Bank has presence across 5 continents and 20 countries covering all the major financial centres such as London, New York, Paris, Tokyo, Singapore and Hong Kong. As on 31.03.2013, bank has a network of 52 foreign offices which includes 4 Representative Offices, 4 Subsidiaries and 1 Joint Venture. The Bank has a Global Processing Centre (GPC) at Singapore, thereby improving the Management Information system and the customer service. Bank’s foreign operations are being integrated with domestic operations by migrating them to Finacle. Some Centres have already migrated to Finacle platform and it is proposed to migrate the remaining Centres during 2013-14. Bank has Global Remittance Centre (GRC) in Mumbai. The inward remittances, NRE/NRO Account opening are centralized at GRC. For service to non-resident customers. SMS alerts to remitter as well as

beneficiary for remittance from Gulf Countries have been introduced. Straight through processing (STP) for Speed Remittances has been put up in place and viewing facility has been set up for offsite account details. The bank has introduced BOI Premium NR Deposit Scheme, Star e-Remit for UK based customers. As at 31st March, 2013, total deposits at foreign branches stood at Rs.877730.000 Millions, registering a rise of Rs.180320.000 Millions (25.85%) over previous year. Total advances stood at Rs.889320.000 Millions recording a rise of Rs.153880.000 Millions (20.92%) over previous year. Investments were at Rs.40470.000 Millions. Operating profit of foreign branches for the year ended March 2013 at Rs.11810.000 Millions has shown a rise of Rs.930.000 Millions over previous year. However, Net profit at Rs.2950.000 Millions has decreased by Rs.3320.000 Millions over March 2012. In terms of contribution to global business and profit, foreign branches contributed 26.19% towards global business and, 15.83% and 10.73% towards Operating profit and Net profit respectively for the year ended 31.03.2013.

FOREX BUSINESS

The forex business handled by the Bank has shown good growth. During the year 2012-13, Merchant and Interbank turnover was Rs.1920270.000 Millions and Rs.6085220.000 Millions respectively. The Bank continues to be leading player in the forex market. The aggregate turnover of Banks treasury Branch during the year was Rs. 8005490.000 Millions.

TREASURY INVESTMENTS

The yield on benchmark 10 year G sec which was 8.63% as on 31st March 2012 has softened to 7.95% as on 31st March 2013. However, movement of G Sec yields was highly volatile and the same moved within a wide range from 8.68% to 7.82% during the year. The Bank has maintained a higher level of investments keeping a balance between interest income and market risk. The Bank has maintained SLR investments at higher level in excess of the regulatory requirement of 23% of Net Demand and Time Liabilities so that excess SLR can be utilized for the borrowing from Repo / CBLO windows. The gross SLR investments were Rs.796530.000 Millions (87.01% of total investments) and Non SLR stood at Rs.118950.000 Millions (12.99% of total investments). The investments are made in accordance with the comprehensive policy in this regard approved by the Board. The policy is reviewed periodically to respond to market developments/ regulatory requirements.

TREASURY OPERATIONS

The Bank continues to play an active role in all segments of the market- Funds, Forex and Bonds during 2012-13. Taking advantage of the G sec rate movements, Bank has churned its investments portfolio and earned profit from trading and sale of securities. Bank has registered 193% growth in profit from sale of securities in FY 2012-13 as compared to FY 2011-12. Bank has taken advantage of arbitrage opportunity within various market segments and could place the excess rupee funds in Certificate of deposits (CD), buy / sell foreign currency swaps, term money markets there by earning a spread of 0.50% to 1.00%. The Bank has built up a portfolio of Rs. 34460.000 Millions in CDs and also lent Rs.24710.000 Millions in Term money by borrowing in CBLO/Repo against ‘T’ Bills and surplus securities thereby earning a spread of approximately 0.50% to 1.00%

NATIONAL BANKING GROUP (HEAD OFFICE):

RURAL BANKING

1. Priority Sector Advances:

The Bank has always been one of the leaders in servicing to the priority and agriculture sectors, with its vast network of rural and semi-urban branches and committed personnel. Priority sector advances, apart from presenting a big business opportunity, have wide social ramifications. The Bank has registered an outstanding level of Rs.655180.000 Millions under Priority Sector which is 36.71% of Adjusted Net Bank Credit (ANBC). Under Special Agricultural Credit Plan, Bank could disburse Rs.177290.000 Millions up to March 2013.

2. Centralized Processing Centres in focused districts:

Centralized Processing Centres have been established in zones with the objective of augmenting agriculture credit. So far, 52 CPCs are operational.

3. Kisan Credit Cards:

Kisan Credit Card Scheme aims at providing need based and timely credit to the farmers for their cultivation needs as well as non-farm activities to bring about flexible and operational freedom in credit utilization. During the year Bank has issued 474669 new Kisan Credit Cards with aggregate limit of Rs.49240.000 Millions. The Bank has so far issued 1453132 Kisan Credit Cards (cumulative) involving financial outlay of Rs. 121110.000 Millions.

4. Debt Swap :

Bank has designed ‘Debt Swap’ Scheme with an objective to help the indebted farmers to redeem their outstanding dues to money lenders and to mitigate acute distress faced by the farmers due to heavy burden of debt from non-institutional lenders at unrealistic interest rates. Bank has made more than 91 villages as money lender free villages and also financed more than 238 beneficiaries.

5. Differential Rate of Interest :

A scheme for extending financial assistance at concessional interest rate of 4% to selected low income groups for productive endeavors under the name Differential Rate of Interest (DRI) Scheme is being implemented by the Bank. The Bank has sanctioned 18806 cases under DRI Scheme during the year.

6. Prime Minister’s New 15 Point Programme for the welfare of Minority Communities :

With focused attention to minority communities, Bank has been extending finance to the minority communities of Sikhs, Muslims, Christians, Zoroastrians and Buddhists. During the year 2012-13, Bank has financed Rs. 6490.000 Millions to the various minority communities and registered an outstanding level of Rs.98470.000 Millions as on March 2013.

7. Golden Jubilee Rural Housing Finance Scheme :

The Bank has been actively involved in implementation of the Golden Jubilee Rural Housing Finance Scheme (GJRHFS) and has achieved the target of Rs.1805.300 Millions allocated by National Housing Bank for the year. Duri

8. Micro Finance / Micro Credit :

The Scheme of Micro Credit has been found to be an effective instrument for lifting the poor above the level of poverty by providing them increased self employment opportunities and making them credit worthy. Bank is having more than 91844 SHGs credit linked with Financial Outlay of Rs.5790.000 Millions. Out of this, more than 79912 women Self Help Groups are credit linked to the Bank having financial outlay of Rs.4310.000 Millions.

9. Solar Energy Home Lighting System :

To address the issues of electricity paucity the Bank has prepared and launched a scheme on Solar Energy Home Lighting System. The Bank extends financial assistance to the prospective borrowers for purchase and installation of Solar Energy Home Lighting System. The Bank has so far sanctioned 1565 units with financial outlay of Rs.40.000 Millions.

10. Mega project – 140 villages :

The main objective of the scheme is to create awareness and bring urban amenities to rural areas including technology to rural households as available to urban clientele. So far, 147 villages spread over 15 States and 85 districts have been covered under the Scheme. The Bank has financed to the tune of Rs.198.800 Millions under the scheme through 1824 beneficiary accounts.

11. Lead Bank Responsibility:

The Bank has been assigned with Lead Bank responsibility in 48 districts spread over five states of Jharkhand (15), Maharashtra (12), Madhya Pradesh (12), Uttar Pradesh (7) and Orissa (2). The Bank has been successfully discharging its duties of Lead Bank in all these districts. The Annual Credit Plan (ACP) for the year 2012- 13 was launched in all the Lead Districts involving credit outlay of Rs.88090.000 Millions for the Bank. The achievement of the Bank is Rs.84710.000 Millions which is 96.16% of ACP. The Bank has now, been designated by the SLBC as the “Lead Bank Convener” in the state of Jharkhand.

BRANCH OF THE FUTURE’ PROJECT

In the previous year 5 branches were converted into futuristic branches through planned layout and customer friendly equipment for better customer experience under ‘Branch of the Future’ Project. These pilot branches recorded success which led the Bank to take up another 101 existing branches for conversion as ‘Branches of the

Future’. All these branches have been successfully rolled out during FY 13. Some of the key differentiating elements of ‘Branches of the Future’ are the following.

· The interiors of these branches have been aesthetically laid out creating large customer area with sufficient seating arrangement.

· Distinct front office and in-branch back office have been created for quick turnaround time of transactions.

· Customer empowerment has been attempted through self operated passbook printing kiosks.

· Queue Management System (QMS) is being used for managing front line customer facing activities in a more organized manner.

· New roles and responsibilities have been defined for members of the branch team to achieve greater sales push and customer satisfaction.

· Training for better customer management and cross selling has been provided to staff working at these branches.

Customers of these branches are delighted with the makeover and new processes. The overall efficiency of branch operations has improved as a result of this initiative. Customer acquisitions and business leads are also picking up significantly at these branches.

REVIEW OF OTHER PRODUCTS AND SERVICES

IT ENABLED SERVICES

The Bank is offering Five types of Credit Cards to select from to the customers. The Bank also has Two affiliate banks viz. Bank of Maharashtra and Tamilnadu Mercantile Bank Limited issuing Credit Cards under the brand name “India Card”. During the year Issuing turnover witnessed a growth of 11.34% and stood at about Rs.3914.400 Millions and acquiring turnover witnessed an increase of 1.57% and stood at Rs.3141.300 Millions. Acquiring turnover on debit cards witnessed a growth of 50.06% and stood at Rs.11470.500 Millions.

The Bank is also offering Five types of Debit cum ATM cards. Total Debit Cards issued as on 31.03.2013 stood at 136.03 lakh comprising of 39.49 lakh Starlinks International ATM cum Debit Cards (Visa Electron), 90.61 lakh BOI Global Debit cum ATM cards (MasterCard), 0.03 lakh Platinum Debit Cards (MasterCard), 0.12 lakh Gift Cards (Visa Electron), 1.80 lakh Bingo Cards.

SMS Alerts – Star Sandesh

As a fraud prevention measure, SMS alerts are generated and provided to all customers who have registered their mobile number with the Bank for

· All Debit transactions from delivery channels (Internet banking/ ATM/POS).

· All Customer induced debit and credit transactions of Rs.0.010 Million and above.

· All Debit ECS transactions of Rs.0.010 Million and above.

· All Debit RTGS transactions.

· Acknowledgment on accepting the cheque book issue request.

· Alerts for installment due in Star Autofin and Housing Accounts.

INTERNET BANKING:

A fast and secure internet banking facility is available to customers for utility bill payments, air and rail ticket booking, on-line shopping, inter-bank and intra bank fund transfers, etc. Bank of India is the first PSU Bank in India to implement Two-factor Authentication (2FA) – Star Token for both Retail and Corporate internet banking customers as an additional security measure. Bank’s customers enjoy the convenience of “secured” Anytime, Anywhere, Anyhow hassle free Banking from the comfort of their homes and offices with a click of a mouse.

Some of the features available are:

· Online Interbank Fund Transfer across banks, through our Star Connect Internet Banking Services, using RTGS / NEFT facility

· BOI Star e-Pay for Auto-pay or on-line payment of various utility services / bills

· e-Payment of Direct and Indirect, Central Excise and Service Tax

· Star e-Share Trade to trade in shares.

· e-Freight Payment

· Directorate General of Foreign Trade (DGFT) license fee Online e-Payment

· Online Booking of Railway and Airlines Ticket

· Online Application for Education loan

· On Line facility available to View and Apply Application Supported by Blocked Amount (ASBA) for IPOs from Internet Banking

· Enabling internet banking customers to make online Fixed Deposit.

· Hot Listing/Reset/Unblock/Change of Debit Cum ATM card PIN using Internet Banking password.

· Viewing of Annual Tax Statement (Form 26AS).

· Extended the facility of online e-Payment to the customers holding our Debit-cum-ATM card. This will enable the customers to use their Debit-cum-ATM cards for e-payments in addition to credit card and Internet banking account.

· Online Nomination facility while creating online Term Deposit Receipt as well as for existing Term Deposit Receipts.

AUTOMATED TELLER MACHINES (ATMS):

The Bank has joined National Financial Switch (NFS) which enables Customers to access more than 85,000+ ATMs across the country. Bank is also part of Cash Tree, BANCS and SBI Group networks. As on 30th April, 2013 we had 2,226 ATMs out of which 439 were under Ministry Of Ministry and the rest 1,787 were under Phase VI.

IT ENABLED SERVICES:

· In the process of the ambitious growth plan of the Bank, under Sankalp 10000 initiatives,

· Internet Banking: Retail Customers and Corporate Customers

· Mobile Banking: ATMs

· Card Products: Debit Cards, Credit Cards, Bingo Cards, Gift Cards

· BOI Star Reward Program

· E-Commerce Facility

· E-Pay Facility

· Demat

BULLION BANKING

Bullion Banking was introduced by the Bank in November 1997. Initially the scheme was introduced at SEEPZ and Ahmedabad branches and was subsequently introduced at other branches. As on date although 9 branches are authorized to undertake bullion business only 3 branches are undertaking bullion business. The gold is procured on consignment basis for catering to the needs of the jewellery exporters and domestic manufacturers. The Bank sold 11,668 Kg of gold in the year 2012-13, with a turnover of 3,485 Millions, thereby earning an income of Rs.203.400 Millions. The increase in the earnings during the year was 21.51%.

STAR CASH MANAGEMENT SERVICES (STAR CMS)

The Bank has active presence in CMS space but the CMS operations have been revamped by adopting latest state of the art Web based technology. The Bank has also entered into Correspondent banking arrangement with other Banks. Due to switch over to the WEB based software on ORACLE platform the Bank is well positioned to handle any number of transactions. The Bank has a separate department for CMS at Head Office which monitors and controls the overall functioning of CMS. It is under the direct control of the General Manager (Transaction Banking). The CMS HUB located at M.G. Road, Mumbai takes care of the operational side of the initiative. The Bank has over 4000 branches which are operating on CBS platform across more than 1000 cities and towns. All these branches can canvass for CMS clients for availing various CMS services.

THIRD PARTY PRODUCTS

TIE-UP FOR LIFE INSURANCE:

Bank continues its Corporate Agency arrangement with Bank’s Joint Venture Life Insurance Company Star Union Dai-ichi Life Insurance Co. Limited for sale of their life insurance products. Bank has around 1600 employees to act as ‘Specified Person’ for sale of insurance products in various centres. During the current financial year, bank collected premium of Rs.4650.000 Millions (Number of Policies – over 96,000) and contributed to more than 55% of the total new business of the Joint Venture company. Bank continues to offer optional life insurance cover to our Star Home Loan and Star Education Loan borrowers under Group Policy wherein the borrowers pay reduced premium for life cover.

TIE-UP FOR GENERAL INSURANCE (NON-LIFE) WITH NATIONAL INSURANCE COMPANY LIMITED (NICL):

The existing tie-up arrangement with NICL was converted into Corporate Agency Distribution Model in compliance with IRDA revised guidelines covering Bancassurance Business with Distributors like Bank. Bank has a co-branded health insurance product – BOI National Swasthya Bima, which is a Family Floater Mediclaim Insurance Cover available only for Bank of India account holders, for a very low premium. The coverage is for the Account Holder, Spouse and Maximum of 2 Dependent Children. Entire family (Account holder, his/her spouse and their two dependent children) is covered to the extent of sum insured in as much as part of the sum insured can be availed at different times by family members. It has been a popular product and as on 31.03.2013 over 1.42 lakh Bank of India Account holders have taken this policy. The total premium collected by the Bank for NICL during financial year 2012-13 has been Rs.1550.000 Millions which earned a commission of Rs.150.700 Millions.

MUTUAL FUNDS PRODUCTS:

Our Bank continues to be a shop for all financial needs of the customers and we distribute Mutual Fund products of the following 10 Asset Management Companies, viz., BOI-AXA Mutual Fund, Birla Sun Life Mutual Fund, DSP Black Rock Mutual Fund, Franklin Templeton Investments, HDFC Mutual Fund, IDFC Mutual Fund, ING Mutual Fund, Kotak Mutual Fund, Reliance Mutual Fund and UTI Mutual Fund.

ASSET RECOVERY AND NPA MANAGEMENT

The Bank continues its drive and focus in improving its performance in the area of NPA management in the year 2012-13 as well. Reduction of NPAs is given utmost priority at the Bank and this function has steadily grown in importance. Substantial measures were initiated to augment recovery and contain NPAs. Efforts were also made to maximize recovery in written off accounts and uncharged / unrealised interest in NPA accounts which contributes to the Bank’s profits significantly.

CREDIT MONITORING:

The need for an accentuated focus on Credit Monitoring for a robust and healthy credit portfolio, in the present economic scenario cannot be denied. The gamut of functions undertaken by the Credit Monitoring Department of the Bank has expanded over the years and assumed critical importance in the Bank’s endeavour to maintain sound asset quality.

· Monitoring is being done through various system generated reports on weekly / fortnightly / monthly basis. The breakup of overdue / out of order position of accounts in various time buckets assists in control and monitoring of credit assets. These reports are being effectively utilized to track and avoid delinquency.

· Monitoring of slippages in small ticket advances pose a challenge due to sheer enormity of their numbers. To address this issue, during the fiscal 2012-13, the Bank took the initiative of introducing ‘Collection Cells’ at zonal centres. In all loan accounts including KCC accounts, a system generated advance intimation from Zonal Office is sent to the borrower, 10 days prior to due date, a system generated advance intimation from Zonal Office is sent to the borrower, informing the due date and amount of installment. In case the installment is not paid on the 15th day from the due date, regular follow up is made by the branch officials till such time the overdue is paid off. In case of accounts above Rs.1.000 Millions, Task Force Meeting (TFM) is arranged with Zonal Head. The Advance intimations pertaining to Rural and Semi Urban branches is written in local language. Tools utilized for efficient monitoring and control process:

· Inspection of the assets charged to the Bank for ensuring end use of funds is undertaken at regular intervals. Adequate insurance of charged assets held in force, is given prime importance for safeguarding the Bank’s exposure.

· Periodic Stock and Receivable Audit is another important tool used to safeguard quality of assets charged to the Bank which is carried out by empanelled Chartered Accountants.

· Credit Process Audit (CPA), prior to release of funds by the Bank, ensures compliance of all terms of sanction and other covenants.

· Zonal Credit Monitoring Committee meetings are conducted at all Zones wherein issues relating to big ticket advances are dealt with.

· The advances showing inherent signs of weakness such as out of order position, inability to meet commitments under Letters of Credit / Bank Guarantees, timely review, etc. which pose a threat to Bank’s asset quality, are followed up by extensive usage of Video Conferencing facility / discussions at various platforms thereby sensitizing all concerned.

· Critical analysis of delinquencies in advances within a short period of their respective sanctions (quick mortality cases) is made and remedial action is taken, wherever necessary. Additionally, accountability is examined in all delinquent assets, more particularly under quick mortality.

· The classification of advances is in accordance with the prevalent IRAC norms. Advances which display signs of stress / temporary aberrations albeit having financial / economic viability are restructured in line with the prevalent guidelines / instructions issued from time to time by the regulatory authority. Calculation of Diminution in Fair Value and provision thereon is done at the Head Office level in respect of all restructured advances of Rs.10.000 Millions and above.

BRANCH NETWORK AND EXPANSION

The Bank has a geographically well spread branch network in India and abroad. The Bank had 4000 branches in India as on 31.03.2012. In the foreign countries, 48 branches and 4 representative offices keep Bank’s presence felt in all time zones and important financial centers of the globe. During the year 2012-13, Bank opened 292 new branches including 02 Extension Counters converted into full-fledged branches.

Composition of Bank’s Branch Network is as follows :

Falling in line with RBI liberalized policy of branch authorization, some branches were shifted to alternate sites and Extension Counters showing good performance and those with locational advantage, were converted into full-fledged branches. It is intended to continue this policy for the coming year as well. RBI has further liberalized its branch authorization policy w.e.f. 29.11.2011 allowing banks to open branches in centers having population below 1,00,000 (enhanced from 50,000 to below 1,00,000) without obtaining prior approval from them. The Bank availed the opportunity and authorized zones to open branches under this category in 322 centers.

OPERATIONAL EXCELLENCE

Commitment towards Customers

The Bank reiterates its commitment to customer service through customer centric approach to achieve the goals set under SANKALP 10,000.

Major Initiatives:

• Training:

Sales Force and Relationship Managers are being provided training from time to time either at the Training Centers or at Zonal Office. During the current year, Bank has arranged training for all the Heads of Marketing, Sales Force and RSMs from each zone at MDI, Mumbai during the year.

• Sales Force Automation (SFA) Package:

Bank has launched IT enabled software package called Sales Force Automation (SFA) i.e. Lead Management System. The system effectively captures, monitors, tracks converted leads and analyzes the leads generated at various levels. The system will also be used for administering the incentive scheme as well.

• Quick Wins Campaign:

Massive Contact Programme to meet Diamond Customers. The Campaign was launched in Centres for contacting Diamond Customers, updating their data, KYC compliance, opening of new value accounts, cross selling of various Bank’s products and Third party Products. During the campaign, over one Lac Diamond Customers are contacted.

• SUD Life Campaign was launched in all 50 zones for marketing of Life Insurance products.

The Bank has with a view to enhance its corporate image and identity, initiated media campaigns on the existing theme "Relationships beyond Banking". Towards this end three TVCs were produced in line with the Relationship theme viz. Old Couple, Friends and Bus which were aired on both National as well as Regional Channels.

BANK’S SUBSIDIARY / ASSOCIATES

INDO ZAMBIA BANK LIMITED (IZB)

IZB is a joint venture of three Indian Banks viz. Bank of India, Bank of Baroda, Central Bank of India and Government of Zambia. Each of the Indian Banks holds 20% of the share capital, whereas Government of Zambia holds 40% of the share capital. Indo-Zambia Bank Limited is fine example successful joint venture. It enjoys the patronage of two friendly republics, the Government of Republic of Zambia and Government of India.

PT BANK SWADESHITBK, INDONESIA

During FY 2007-08 the bank acquired a stake of 76% in PT Bank SwadeshiTbk at a total consideration of Indian Rs.37.700 Millions. The Bank has three Directors on the Board of PT Bank SwadeshiTbk.

BANK OF INDIA (TANZANIA) LIMITED

Bank of India (Tanzania) Limited is wholly owned subsidiary of the Bank and commenced operations on 16th June 2008 with first branch at Dar-Es-Saleam.

BANK OF INDIA (NEW ZEALAND) LIMITED

Bank of India (New-Zealand) Limited is wholly owned subsidiary of the Bank. The Bank’ has a Net Worth of Rs.2274.600 Millions as on 31.03.2013. The Bank has a PAT of Rs.12.300 Millions for the year ended 31.03.2013.

BOI SHAREHOLDING LIMITED (BOISL)

Bank’s association with the Capital Market spans a period of nine decades. The clearing and settlement function of Bombay Stock Exchange (BSE) was being handled by the Bank since 1921. In 1989, Bank set-up “BOI Shareholding Limited (BOISL)”, joint venture with BSE, to manage the clearing house activities of the Stock Exchange. The Bank has holding of 51% of its paid up capital of Rs.20.000 Millions.

The company has been carrying out the rolling and weekly settlements of trades executed by member brokers operating on the Exchange, BOISL is also a Depository Participant (DP) of both the Depositories viz. the National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) and provides depository services to the clearing members and investors. BOISL is the first Securities Clearing House in the country to have been awarded the ISO 9001-2000 ISO Certification. BOISL earned a net profit of Rs.6.760 Millions (unaudited) during 2012-13 as against Rs.26.800 Millions earned during 2011-12.

BOI AXA INVESTMENT MANAGERS PRIVATE LIMITED AND BOI AXA TRUSTEESHIP SERVICES PRIVATE LIMITED

These Companies are in the Business of Mutual Fund and Portfolio Management. Bank of India is holding 51% Stake in both the Companies.

STCI FINANCE LIMITED

STCI Limited is one of the leading Primary Dealers in the country. It was established in 1994 with the objectives of widening the gilt and other debt security market through development of a vibrant secondary market. Bank of India with 29.96% holding is the single largest stakeholder in STCI having Paid up Capital of Rs.3800.000 Millions. The Company is an associate company of the Bank in terms of Accounting Standards 21 (AS-21) of the Institute of Chartered Accountants of India.

With growing perception that Primary Dealership by itself is no longer an attractive business, STCI decided to hive off the Primary Dealership business to its new subsidiary namely STCI Primary Dealer Limited which commenced its operations from 25th June 2007. The Subsidiary which started on a cautious note has made steady progress since then.

After formation of subsidiary, STCI took up activities of IPO funding, margin funding, commodity future trading, Asset Management, investments in short term corporate loans / CP, equity trading etc. During the FY 2012-13 the PAT was at Rs.788.100 Millions as compared to a PAT of Rs.464.500 Millions for the FY 2011-12.

STAR UNION DAI-ICHI LIFE INSURANCE COMPANY LIMITED (SUDLIFE)

Bank of India, Union Bank of India and Dai-ichi Mutual Life Insurance Company, Japan have formed “Star Union Dai-ichi Life Insurance Company” to take advantage of the growing insurance market and to provide quality assured insurance to its clients spread across the length and breadth of the country. The company has commenced insurance business since February 2009. BOI holds 48% in the Company’s paid up Capital of Rs.2500.000 Millions. Union Bank holds 26% stake and Dai-ichi Mutual Life Insurance Company, Japan holds 26% in addition to the Bank’s stake. In terms of the Joint Venture Agreement the Bank had earlier transferred it’s 3% stake in favour of Union Bank.

STRATEGIC INVESTMENT / ALLANCES

CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL)

The Company was promoted in 1997 by the Bombay Stock Exchange and Bank of India along with other Banks. The main objective of promoting CDSL, was to accelerate the pace of dematerialization of scrips, bring wide participation of investors in the capital market and to create a competitive environment as country’s second depository. Bank now holds 5.56% stake in the paid up capital of Rs.1045.800 Millions of CDSL. CDSL has paid 10% dividend in FY 2007-08, 2008-09, 2011-12 and 15% dividend for 2012-13.

ASREC (INDIA) LIMITED

The Company was floated by the Specified Undertaking of the Unit Trust of India to undertake securitization and asset reconstruction activities. The company was granted Certificate of Registration by RBI under the SARFAESI Act, 2002 in the second half of FY 2004- 05 and has since commenced full-fledged operation. Currently the Bank has holds 26.02% stake, in the equity capital of the company which is Rs.980.000 Millions.

CREDIT INFORMATION BUREAU (INDIA) LIMITED (CIBIL)

CIBIL is the first credit information bureau in the country, incorporated in August, 2000 for providing credit information and risk analysis services to the Banking and Financial services sectors. The company launched its consumer bureau operations in FY 2004-05 and commercial bureau operations during 2006-07. Bank holds a stake of 5% in the equity share capital of the company.

MULTI COMMODITY EXCHANGE OF INDIA LIMITED (MCX)

MCX is a new generation multi commodity exchange undertaking future trading in commodities at the national level. The Exchange commenced operation during FY 2004-05 and within a short span has come up as India’s No. 1 Commodity Exchange. It now figures in the world’s Top Bullion and Base Metal Exchanges. Bank has a nominal stake of 2% by way of equity participation in the capital of MCX with a view to be associated with one of the major commodity exchanges. Bank also handles clearing bank functions of the exchange through Bullion Exchange Branch.

NATIONAL COLLATERAL MANAGEMENT SERVICES LIMITED (NCMSL)

National Collateral Managements Services Limited is promoted by the National Commodity and Derivates Exchange Limited (NCDEX). It was incorporated on 28.09.2004 to promote and provide collateral management services for securing, managing and controlling securities and commodities. It offers various services for the development of trades on commodity exchange such as valuation, grading, insuring, securing, storing, distributing, clearing and forwarding of securities and commodities etc. Bank holds a stake of 10.17% (Rs.30.000 Millions) in the equity capital of the company, thus providing opportunities to the bank to harness its association with NCMSL for credit lines to its members and clients.

SWIFT INDIA DOMESTIC SERVICE PRIVATE LIMITED

The new joint venture company is promoted by SWIFT and 8 major Banks including Bank of India. SWIFT is holding 55% equity and remaining 45% is hold by 8 major Banks. Bank of India has an equity stake of 5.63% in the company. The company is yet to start its operations.

SME RATING AGENCY OF INDIA LIMITED (SMERA)

SMERA was set up during FY 2005-06 by SIDBI in association with Dun and Bradstreet one of the leading credit rating agencies. SMERA’s primary objective is to provide comprehensive, transparent and reliable ratings which would facilitate greater and easier flow of credit to SME sector. Bank has a nominal stake of 4% in the equity capital of the company.

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013	31.03.2012
I. Claims against the Bank not acknowledged as debts	8113.001	6005.347
II. Liability for partly paid Investments	1170.424	3.200
III. Liability on account of outstanding forward exchange contracts	1426112.004	1041967.872
IV. Guarantees given on behalf of Constituents :
a) In India	167395.925	165681.720
b) Outside India	128253.018	112337.637
V. Acceptances, endorsements and other obligations	271427.822	259566.409
VI. Interest Rate Swaps	202187.374	238047.553
VII. Other items for which the Bank is contingently liable	12208.459	87687.365
Total	2216868.027	1911297.103

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] 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.57.73
UK Pound	1	Rs.90.61
Euro	1	Rs.76.96

INFORMATION DETAILS

Report Prepared by :

BVA / MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		81

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

CAPITAL & LIABILITIES

GRAND TOTAL

ASSETS

GRAND TOTAL

Unit