MIRA
INFORM REPORT
|
Report Date : |
04.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
BANK OF BARODA |
|
|
|
|
Registered
Office : |
Bank of Baroda Building, Mandvi, Vadodara – 390006,
Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Year of Establishment : |
1908 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.4225.175 Millions |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDB01794C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB1534F |
|
|
|
|
Legal Form : |
Subject is a Government of India Bank. The Bank’s Shares
are traded on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Banking Activities |
|
|
|
|
No. of Employees
: |
43108 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 1278000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well established and reputed bank having excellent track
record. Financially Bank is performing good. Directors are reported as
experience and respectable business. Bank leverage seems to be good. Trade
relations are reported as fair. Business is active. Payment are reported to
be regular and as per commitment. The bank can be considered trustworthy for business dealing 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 |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
AAA (Lower Tier-II Bonds) |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
August 26, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
AAA (Upper Tier-II Bonds) |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
August 26, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Head Office 1 : |
Bank of |
|
Tel. No.: |
91-265-2330274/ 2563932 |
|
Fax No.: |
91-265-2330824/ 2562445 |
|
E-Mail : |
|
|
Website : |
http://www.bankofbaroda.com |
|
|
|
|
Corporate Office /
Investor Services Department : |
1st Floor, Baroda Corporate Centre, C-26, G-Block, Bandra Kurla, Bandra, Mumbai - 400051, Maharashtra, India |
|
Tel. No.: |
91-22-66985000 / 04 |
|
Fax No.: |
91-22-26523500 |
|
|
|
|
Head Office 2 : |
Suraj Plaza-1, Sayaji Ganj, Vadodara -390005, Gujarat, India |
|
Tel. No.: |
91-265-236 1852 (10 lines) |
|
Fax No.: |
91-265-2362395 / 2361824 / 2361806 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. S. S. Mundra |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. P. Srinivas |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Sudhir Kumar Jain |
|
Designation : |
Executive Director |
|
Address : |
483, Kokil Kunj, Pal Beechla, Ajmer – 305001, Rajasthan, India |
|
Date of Birth/Age : |
21.07.1960 |
|
Qualification : |
B. Com. (Honours) and F. C. A. |
|
|
|
|
Name : |
Mr. Ranjan Dhawan |
|
Designation : |
Executive Director |
|
Address : |
533, Sector 16-D, Chandigarh, India |
|
Date of Birth/Age : |
09.09.1955 |
|
Qualification : |
B. Com., M. B. A. ( Finance ), A. C. M. A. ( UK ) and C. I. A. ( USA ) |
|
|
|
|
Name : |
Mr. Alok Nigam |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sudarshan Sen |
|
Designation : |
Director (Non Executive) |
|
|
|
|
Name : |
Mr. Vinil Kumar Saxena |
|
Designation : |
Director (Non Executive) |
|
|
|
|
Name : |
Mr. V. B. Chavan |
|
Designation : |
Director (Non Executive ) |
|
|
|
|
Name : |
Mr. Ajay Mathur |
|
Designation : |
Director ( Non Executive ) |
|
|
|
|
Name : |
Mr. Satya Dev Tripathi |
|
Designation : |
Director ( Non Executive ) |
|
|
|
|
Name : |
Mr. Maulin Arvind Vaishnav |
|
Designation : |
Director (Non Executive) |
|
|
|
|
Name : |
Mr. Surendra Singh Bhandari |
|
Designation : |
Director (Non Executive) |
|
|
|
|
Name : |
Mr. Rajib Sekhar Sahoo |
|
Designation : |
Director (Non Executive) |
KEY EXECUTIVES
|
Name : |
Mr. R. K. Bansal |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. J. Ramesh |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. V. H. Thatte |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S. K. Das |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Subhash C. Ahuja |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. R. S. Setia |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S. Kalyanaraman |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Animesh Chauhan |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. N. Manvi |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. D. Lamba |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Mohar Singh |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. K. Shukla |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Arun Shrivastava |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. R. P. Marathe |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Rajesh Mahajan |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. J. D. Parmar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. P. D. Singh |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. R. S. Abhyankar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. R. Koteeswaran |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. D. K. Garg |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. V. K. Gupta |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. Venkata Rama Moorthy |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K. P. Kharat |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. U. K. Bijapur |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Nirmesh Kumar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. M. L. Jain |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. M. M. Reddy |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Arun Kumar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. L. M. Asthana |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. U. C. Singhvi |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. D. P. Trivedi |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. E. H. Rahiman |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. P. D. Potnis |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Dr. K. Srinivasa Rao |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. N. K. Jain |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S. K. Poojary |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. R. K. Sharma |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. N. N. Bhalerao |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. D. D. Singla |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. R. K. Arora |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S. S. Ghag |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Raju Gupta |
|
Designation : |
Chief Vigilance Officer |
|
|
|
|
Name : |
Dr. Rupa Nitsure |
|
Designation : |
Chief Economist |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
233412499 |
55.41 |
|
|
233412499 |
55.41 |
|
|
|
|
|
Total shareholding of
Promoter and Promoter Group (A) |
233412499 |
55.41 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
27235196 |
6.47 |
|
|
895793 |
0.21 |
|
|
51825463 |
12.30 |
|
|
64605720 |
15.34 |
|
|
144562172 |
34.32 |
|
|
|
|
|
|
18635857 |
4.42 |
|
|
|
|
|
|
19966074 |
4.74 |
|
|
1179218 |
0.28 |
|
|
3500483 |
0.83 |
|
|
2086185 |
0.50 |
|
|
22000 |
0.01 |
|
|
291602 |
0.07 |
|
|
1100696 |
0.26 |
|
|
43281632 |
10.27 |
|
Total Public
shareholding (B) |
187843804 |
44.59 |
|
Total (A)+(B) |
421256303 |
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) |
421256303 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Banking Activities |
|
|
|
|
Exports : |
Not Available |
|
|
|
|
Imports : |
Not Available |
GENERAL INFORMATION
|
Suppliers : |
Not Available |
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Customers : |
Not Available |
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|||||||||||||||||||||||||||||||||
|
No. of Employees : |
43108 (Approximately) |
|||||||||||||||||||||||||||||||||
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|
Bankers : |
Reserve Bank of India |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
· Laxminiwas Neeth and Company Chartered Accountants · Brahmayya and Company Chartered Accountants · Ray and Ray Chartered Accountants · S. K. Mittal and Company Chartered Accountants · N. B. S. and Company Chartered Accountants · KASG and Company Chartered Accountants |
|
|
|
|
Joint Ventures : |
· India First Life Insurance Company Limited · India International Bank (Malaysia) Bhd. · India Infradebt Limited |
|
|
|
|
Subsidiaries : |
· BOB Capital Markets Limited · BOB Cards Limited · The Nainital Bank Limited · Bank of Baroda (Botswana) Limited · Bank of Baroda (Kenya) Limited · Bank of Baroda (Uganda) Limited · Bank of Baroda (Guyana) Inc. · Bank of Baroda (UK) Limited · Bank of Baroda (Tanzania) Limited · Baroda Capital Markets (Uganda) Limited. (Subsidiary of Bank of Baroda Uganda Limited) · BOB Trinidad and Tobago Limited · Bank of Baroda (Ghana) Limited · Bank of Baroda (New Zealand) Limited |
|
|
|
|
Associates : |
· Baroda Uttar Pradesh Gramin Bank · Baroda Rajasthan Kshetriya Gramin Bank · Baroda Gujarat Gramin Bank · Baroda Pioneer Asset Management Company Limited · Indo Zambia Bank Limited · Baroda Pioneer Trustee Company Private Limited |
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 |
|
|
|
|
|
|
423989803 |
Equity Shares |
Rs.10/- each |
Rs.4239.898 Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
421256303 |
Equity Shares |
Rs.10/- each |
Rs.4212.563 Millions |
|
|
Add : Forfeited Shares |
|
Rs.12.612 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.4225.175
Millions |
LISTING DETAILS
|
Subject Stock Code : |
BSE : 532134 NSE : BANK BARODA |
|
Stock Exchange Place : |
· The Stock Exchange, Mumbai · National Stock Exchange of India Limited |
|
Listing Date |
19.02.1997 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
CAPITAL & LIABILITIES |
|
|
|
|
Capital |
4225.175 |
4123.846 |
3928.073 |
|
Reserves and Surplus |
315469.210 |
270644.661 |
206507.258 |
|
Deposits |
4738833.375 |
3848711.059 |
3054394.819 |
|
Borrowings |
265792.818 |
235730.512 |
223078.548 |
|
Other Liabilities and Provisions |
147033.825 |
114004.592 |
96063.056 |
|
|
|
|
|
|
Total |
5471354.403 |
4473214.670 |
3583971.754 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Cash and Balances with Reserve Bank of India |
134520.783 |
216514.596 |
198681.789 |
|
Balances with Banks & Money at Call & Short Notice |
719468.260 |
425170.816 |
300658.889 |
|
Investments |
1213937.244 |
832094.001 |
713965.921 |
|
Advances |
3281857.649 |
2873772.935 |
2286763.609 |
|
Fixed Assets |
24531.160 |
23415.020 |
22997.183 |
|
Other Assets |
97039.307 |
102247.302 |
60904.363 |
|
|
|
|
|
|
Total |
5471354.403 |
4473214.670 |
3583971.754 |
|
|
|
|
|
|
Contingent Liabilities |
2046289.169 |
1525028.131 |
1271638.703 |
|
Bills for Collection |
259522.360 |
227669.937 |
188447.194 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
351966.544 |
296737.242 |
218859.156 |
|
|
|
Other Income |
36306.249 |
34223.282 |
28091.860 |
|
|
|
TOTAL |
388272.793 |
330960.524 |
246951.016 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Interest Expended |
238813.891 |
193567.123 |
130836.577 |
|
|
|
Operating Expenses |
59467.363 |
51587.173 |
46298.349 |
|
|
|
Provisions & Contingencies |
45184.339 |
35736.666 |
27399.293 |
|
|
|
TOTAL |
343465.593 |
280890.962 |
204534.219 |
|
|
|
|
|
|
|
|
|
NET PROFIT FOR THE
YEAR |
44807.200 |
50069.562 |
42416.797 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Statutory Reserve |
11201.800 |
12517.391 |
10604.199 |
|
|
|
Capital Reserve |
814.481 |
223.986 |
209.956 |
|
|
|
Revenue and Other Reserves |
|
|
|
|
|
|
I) General Reserve |
13694.669 |
24538.608 |
21004.556 |
|
|
|
II) Special Reserve |
8500.000 |
5338.466 |
3353.900 |
|
|
|
III) Statutory Reserve (Foreign) |
-- |
15.580 |
24.692 |
|
|
|
Proposed Dividend (including Dividend Tax) |
10596.250 |
8122.904 |
7533.520 |
|
|
|
Investment Reserve Account |
-- |
(687.373) |
(314.026) |
|
|
TOTAL |
44807.200 |
50069.562 |
42146.797 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
108.84 |
127.84 |
116.37 |
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
LITIGATION DETAILS |
|
HIGH COURT OF GUJARAT |
|
CIVIL APPLICATION (STAMP NUMBER) No. 11479 of 2012 |
|
|
|
In FIRST APPEAL (STAMP NUMBER)/ 3056/ 2012 ( PENDING ) |
|
Status : PENDING |
|
CCIN No : 001006201211479 |
|
|
||
|
|
|
S.NO. |
Name of the
Petitioner |
Advocate On Record |
|
1 |
NIRMA CHEMICAL WORKS PRIVATE LTD |
MR GAURAV S MATHUR for: Petitioner(s) |
1|
S.NO. |
Name of the
Respondant |
Advocate On Record |
|
1 |
GUJARAT POWER CORPORATION LIMITED |
|
|
Presented On |
: 03/10/2012 |
Registered On |
: 03/10/2012 |
|
Bench Category |
: DIVISION BENCH |
District |
: AHMEDABAD |
|
Case Originated
From |
: THROUGH ADVOCATE |
Listed |
: 0 times |
|
StageName |
: OFFICE OBJECTION REMOVED |
||
|
Office Objection |
|
|
Filing Stage |
WHETHER INDEX-CUM-CHRONOLOGY OF DOCUMNETS AND EVENTS FILED? WHETHER THE MEMO OF PETITION/APPEAL IS SIGNED? WHETHER PAGING IS DONE? WHETHER COPIES ARE LEGIBLE AND WHETHER TYPED COPIES OF HAND WRITTEN ANNEXURES FILED? WHETHER COPIES ARE TRUE COPIES SO SIGNED BY ADVOCATE? WHETHER THE ORGINAL POSITIONS OF THE PARTIES STATED? |
|
Classification |
DB - CIVIL APPLICATION - CODE OF CIVIL PROCEDURE, 1908 - PRODUCTION OF ADDITIONAL EVIDENCE |
|
Act |
CIVIL PROCEDURE CODE, 1908 |
|
Office Details |
|
S. No. |
Filing Date |
Document Name |
Advocate Name |
Court Fee on
Document |
Document Details |
|
1 |
03/10/2012 |
APPLICATION |
MR GAURAV S MATHUR ADVOCATE |
20 |
MR GAURAV S MATHUR:1 |
|
Court Proceedings |
|||||
|
S. No. |
Notified Date |
CourtCode |
Board Sr. No. |
Stage |
Action |
Coram |
|
1 |
19/10/2012 |
51 |
- |
OFFICE OBJECTION (FILING STAGE) |
NEXT DATE |
ADDITIONAL REGISTRAR ( JUDICIAL) |
CHARGES
|
ENTITY |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY ACTION(S) / DATE OF ORDER |
|
BANK OF BARODA |
RBI |
DID NOT COMPLY WITH “KNOW YOUR CUSTOMER” NORMS IN OPENING
AND/OR OPERATING THE ACCOUNTS |
IMPOSED PENALTY RS.3,00,00,000 |
PERFORMANCE
HIGHLIGHTS
Total Business (Deposit+Advances) increased to Rs.8020690.000 Millions reflecting a growth of 19.3% (y-o-y).
• Gross Profit and Net Profit were Rs 89991.500 Millions and Rs 44807.200 Millions respectively. Net Profit registered a growth of -10.5% over the previous year.
• Credit-Deposit Ratio stood at 82.03% as against 86.86% last year.
• Retail Credit posted a growth of 6.7% constituting 16.6% of the Bank’s Gross Domestic Credit in FY13.
• MSME Credit posted a growth of 30.3% constituting 19.7% of the Bank’s Gross Domestic Credit in FY13.
• Net interest Margin (niM) as per cent of interest earning assets in global operations was at the level of 2.66% and in domestic operations at 3.11% during FY13.
• Net nPAs to net Advances stood at 1.28% this year against 0.54% last year.
• Capital Adequacy Ratio (CAR) as per Basel II stood at 13.30%.
• Net Worth improved to Rs 307141.900 Millions registering a rise of 17.2%.
• Book Value improved from Rs 637.37 to Rs 729.11 on year.
• Business per Employee moved up from Rs 146.600 Millions to Rs 168.900 Millions on year.
SEGMENT-WISE
PERFORMANCE
The Segment Results for the year FY13 reveal that the contribution of Treasury Operations was Rs 10701.300 Millions, that of Corporate/Wholesale Banking was minus Rs 1039.500 Millions, that of Retail Banking was Rs 30857.100 Millions, and of Other Banking Operations was Rs 22217.100 Millions. The Bank earned a Profit after Tax (PAT) of Rs 44807.200 Millions after deducting Rs 14423.700 Millions of unallocated expenditure and Rs 3505.100 Millions towards provision for tax.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC SCENE IN
FY13 AND OUTLOOK FOR FY14
The projection of India’s real GDP growth for FY13 by the Central Statistical Organisation (CSO) at 5.0% is the lowest growth registered in this decade and even weaker than the growth posted during the first year of global financial crisis. The weakening of Indian economy during FY13 was broad based and primarily driven by sub-optimal monsoon rains, stagnant infrastructure, declining exports, subdued corporate investments and weak consumption demand. Due to sluggish global growth, the hitherto resilient services sector also weakened considerably during FY13.
So far as the agriculture was concerned, its modest growth at 1.8% was mainly supported by the Rabi (winter) crop, as the delayed monsoon affected the Kharif (summer) output.
Industrial growth (including manufacturing, mining and quarrying, electricity, gas, water supply and construction) too declined significantly to 3.1% during FY13. A slew of factors responsible for this weak performance were poor global demand, weak supply linkages, high input costs, sluggish investment activity, regulatory and environmental bottlenecks, and lack of reliable power supply. Furthermore, the slowdown in consumption demand affected the growth of industrial sector, in general and of motor vehicles, food products and apparel industries, in particular.
Weaknesses in domestic industrial activity and fragile global environment dragged down the services sector growth to 6.6% in FY13.
While the overall growth slipped rather rapidly, the inflation, however, remained rather sticky during the year suggesting a stagflationary state of the economy. Though both the WPI and CPI based inflation rates slipped from their peak levels, they remained way above the RBI’s comfort zone.
However, the WPI-based inflation consistently eased since October, 2012. From a high of 8.06% in Sept, 2012 it fell to 5.96% in Mar, 2013. With rising demand deficit in the manufacturing sector, the core inflation too declined steadily from 5.56% in Aug, 2012 to 3.48% in Mar, 2013. In contrast, the retail (CPI-based) inflation stayed at 10.39% in Mar, 2013.
In view of the sharp deceleration in growth, the government has been introducing several corrective measures and reforms since mid-Sept, 2012 to help revive the economy. The reform measures pertained to Fiscal Sector (upward adjustment in the administered prices of fuels to curb energy subsidies, expenditure control, medium-term fiscal consolidation plan, launching of direct cash transfer programme, etc); to Balance of Payments sector (Liberalisation of FDI in multi-brand retail, domestic airlines, power exchanges, insurance and pension companies, etc., liberalization of ECBs and a reduction in the withholding tax on interest payments from 20.0% to 5.0% for three years, increase in import duty on gold from 4.0% to 6.0% and hike in the limit of foreign holdings of domestic government and non-infrastructure corporate bonds, etc.); to
Investment (Creation of Cabinet Committee on Investment to fast track major infrastructure and other projects, deferment in the implementation of GAAR by two years to Apr 1, 2016); to Financial Sector (Encouragement to Mutual Fund industry outside of top 15 cities by allowing higher commissions and passing of Banking Bill raising voting caps and allowing new banking licenses to be issued while strengthening the RBI’s role). Furthermore, in the Union Budget for FY14, the government was successful in containing the fiscal deficit as a percentage of GDP at 5.2% and set a target of 4.8% for FY14.
India’s situation became more vulnerable on the external front during FY13. The widening of the Current Account Deficit (CAD) to a historically high level of 6.7% in Q3 of FY13 heightened concerns about the sustainability and financing of CAD. Worsening trade deficit and slower growth in services exports were the major factors behind the sharp rise in CAD. Weak external demand, which affected merchandise exports adversely, combined with continued high imports of POL and gold, resulted in deterioration of the trade balance. During FY13, India’s merchandise exports contracted by 1.76% to US$ 300.6 billion, while imports rose by 0.44% to US$ 491.48 billion leaving a huge trade deficit of US$ 190.88 billion in FY13. According to the commodity-wise data released by the DGCI and S, merchandise export decline was mainly observed in items like engineering goods, petroleum products, textiles and iron ore.
Wider trade and current account deficits have a tendency to weaken the currency, raising domestic prices of imported commodities, further fuelling India’s already high inflation rate. Thanks to the decent capital inflows during FY13, India’s rupee depreciated by 6.7% against the greenback during FY13 despite a record high level of current account deficit. During the year under review, India received US$ 18 billion in the form of FDI (net term), US$ 24 billion in Portfolio Inflows (net terms), US$ 30 billion in the form of External Commercial Borrowings and Short-term Loans and US$ 24 billion as the total banking capital.
Going forward into FY14, as per the projections of the Economic Advisory Council to Prime Minister, India’s economic growth is expected to rise to 6.4% in FY14 from 5.0% in the previous year on the back of recently introduced structural measures and an expected normal monsoon. Moreover, steady easing of headline inflation (WPI-based) will provide more space for monetary policy to support growth. While the government has shown its determination to contain the fiscal deficit, the current account deficit remains a source of concern. However, the nation can manage it by taking actions that are necessary to encourage capital flows and by further streamlining the procedures.
ECONOMIC INTELLIGENCE
UNIT
At the Corporate Office of the Bank, a specialized Economic Intelligence Unit (EIU) supports the Top Management in several critical areas like Macroeconomic Forecasting, Business Strategy Formulation, Investor Relations, Asset- Liability Management and in discussions/deliberations with the Regulators (both domestic and international) and Rating Agencies. The Unit regularly provides the Top Management as well as various operational units a periodic outlook on key macro variables like industrial and infrastructural growth, inflation, interest rates, stocks’ movement, credit deployment and resource mobilization of Banking industry, liquidity conditions and exchange rates.
By providing better understanding of macroeconomic aspects, corporate sector health and banking sector policies, the EIU of Bank of Baroda supports Bank’s efforts in tapping business opportunities and swiftly responding to market dynamics. The EIU brings out a weekly e-publication on macro-economic, policy and regulatory developments to share its perspective with bankers, investors, regulators and other industry leaders. The division works as an intellectual arm of the Bank in comprehending developments that eventually aid the development of rightly aligned strategies.
BACK OFFICE
OPERATIONS
Regional Back Offices
and City Back Offices
Two types of Back Offices have been conceptualized and rolled out by the Bank – Regional Back Offices (RBO) and City Back Offices (CBO). The RBO deals with centralized processing of account opening forms (AOF) and centralized processing of issuance of Personalized Cheque Books (PCB). The Bank has ten RBOs - one each at Baroda, Bhopal, Delhi, Coimbatore, Mumbai, Lucknow, Jaipur, Kolkata, Pune and Jamshedpur. The RBOs are opening CASA accounts for 2,915 branches. The Centralised account opening activities of seven RBOs have ensured coverage of 100.0% branches of eight zones of the Bank and the process has been initiated to roll out two more RBOs to cover all the remaining branches of the Bank under the RBO process for account opening and maintenance.
The Personalised Cheque Book (PCB) issuance through Regional Back Offices provides customers of the 3,908
branches of the Bank with this facility. The Bank has extended this facility to all the branches in 12 out of its 13 zones. The remaining branches of the Rajasthan Zone will soon be brought under the PCB issuance facility to cover customers across entire India.
The CBOs deal with centralized upload of clearing transactions – both inward and outward – as well as government collections and ECS transactions. The Bank has 21 CBOs (service branches) where clearing and ECS are centralized for branches in each city/centre. The centralization of clearing has also been introduced in 64 main branches (which handles clearing for local branches). The CBO concept has so far covered 1,372 branches of the Bank. During FY13, the Bank has introduced fully automated cheque processing system at Mumbai, Ahmedabad and Surat.
PERFORMANCE OF INDIAN
BANKING SECTOR IN FY13 AND OUTLOOK FOR FY14
During FY13, both the deposit and lending growth of the banking industry decelerated significantly on the back of overall economic slowdown and elevated inflationary pressures. On an average, the growth differential between deposit and credit kept hovering between 250 and 300 bps with deposit growth outpacing the credit growth. This kept liquidity persistently tight in the banking industry.
The cost of deposits and other funds remained high throughout the year on account of the various monetary tightening measures undertaken by the Reserve Bank of India (RBI). People preferred to park their funds in higher yielding fixed deposits rather than current or savings account (CASA). As a result, CASA accretion slowed for most banks which led to a high cost of funds for banks.
A broad-based industrial slowdown adversely impacted the asset quality of banks, especially of the state-owned banks as they were the ones who primarily supported productive sectors post the global crisis of FY09. Slowing loan growth weighed on the NIMs (net interest margins) of the banking industry. Low NIMs combined with higher credit costs (provisioning requirements) including the ones on restructured loans depressed the earnings of several banks during FY13.
A sharp drop in new project sanctions during FY12 and FY13 will be felt on the loan demand during FY14, as current sanctions exhaust. According to Standard and Poor’s (S and P) Ratings Agency, credit growth for Indian banks is likely to remain muted at 15.0% in FY14 due to several economic and political uncertainties. While the revival of power, roads, metals and mining sectors depends most on government action, the revival of construction and consumer durables is directly related to economic recovery and increased consumption. However, Indian banking industry’s core customer deposit base will continue to provide access to stable funds.
According to S and P, while non-performing assets of banks will surge to 3.9% of gross loans in FY14, the banks’ return on assets will remain depressed, at about 0.9%. Moreover, the Indian banking industry would face a capital shortfall of US$ 3-4 billion if it immediately tried to attain common equity Tier-1 ratio of 8.0% to comply with Basel III guidelines, which kicked in on April 1, 2013.
PERFORMANCE OF
PRIORITY SECTOR LENDING IN FY13
Priority Sector Advances of the Bank surged from Rs 685270.000 Millions as at the end-March 2012 to Rs 800040.000 Millions as at the end-March 2013 and formed 39.31% of the Adjusted Net Bank Credit (ANBC) against the mandated target of 40.00%. A shortfall in achieving the target is primarily due to some changes/modifications in the regulatory definitions pertaining to priority sectors.
BUSINESS AND PROFIT
PERFORMANCE
During FY13, the total business (Deposits + Advances) of the Bank’s overseas branches registered a growth of 24.2%. While its Customer Deposits increased by 24.3%, Total Deposits by 26.2 % and Advances by 21.8%. During FY13, the International Operations contributed a sizeable 29.4% to the Bank’s global business.
CONTINGENT
LIABILITIES
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
|
I Claims against the Bank not acknowledged as Debts |
540.958 |
647.347 |
|
II Liability for partly paid Investments |
2.800 |
2.800 |
|
III Liability on account of outstanding Forward Exchange Contracts |
1360247.055 |
930318.580 |
|
IV Guarantees given on behalf of Constituents : |
|
|
|
a) In India |
142714.536 |
137659.257 |
|
b) Outside India |
141811.388 |
99796.584 |
|
V Acceptances, Endorsements and Other Obligations |
189959.413 |
179502.863 |
|
VI Other items for which the Bank is Contingently liable |
211013.019 |
177100.700 |
|
TOTAL (I to VI) |
2046289.169 |
1525028.131 |
WEBSITE DETAILS
PRESS RELEASE
DAWOOD’S BLOOD-MONEY: WHY BANKS NEED TO CLEAN UP THEIR ACT
April 6, 2013
In an exclusive report yesterday, Firstpost reported how “crime kingpin Dawood Ibrahim Kaskar’s cash has begun washing up on the shores of Nassau island…Ibrahim has emerged as the principal provider of financial services to narcotics traffickers and jihadists across South Asia – a business pegged at over $3.5 billion a year, which uses front companies to access the global financial system.”
The report also mentioned Bank of Baroda, the public sector bank with the biggest international presence, as receiving “successive wire transfers of several hundred thousand dollars from Dubai-based currency exchanges suspected of laundering organised crime proceeds.” The firms included the al-Dirham Exchange named in an Indian government dossier on Dawood Ibrahim’s operations.
Bank of Baroda today confirmed its relationship with the Dubai exchange, but denied “any involvement” in the “alleged transfer of funds as reported in the media.”
In a press release issued this morning, Bank of Baroda’s Chairman and Managing Director, SS Mundra, had this to say about Firstpost and CNN-IBN’s revelations that the Karachi-based ganglord was using its Nassau offshore operation to launder money:
“In response to some of the news items appearing in a TV Channel regarding the purported transfer of funds through Bank of Baroda, Nassau Branch, Bahamas, it is clarified that Bank of Baroda, Nassau, has been maintaining, among others, the account of Dubai Exchange for last several years.
It is a KYC (know-your-customer) compliant account where transactions take place in (the) normal course of business to established banking channels. All AML (anti-money-laundering) guidelines are followed. Hence we deny any involvement of Bank of Baroda in alleged transfer of funds as reported in the Media.
We further clarify that Bank of Baroda, Nassau Operations are conducted strictly within the regulatory framework of host/home country and are subject to usual systemic controls”.
The bank had earlier failed to respond to queries sent by Firstpost and CNN-IBN. The rebuttal, however, raises more questions than it answers.
First, Bank of Baroda indirectly admits that Firstpost’s revelations on its Nassau operation handling Dubai funds are, essentially, true. It says it has maintained accounts for the Dubai Exchange, “among others”. Dubai currency exchanges were named in a 2011 dossier handed by New Delhi to Islamabad as a conduit for Dawood Ibrahim Kaskar’s money laundering operations. Now we have confirmation that an Indian-owned bank operates accounts for them.
Second, Mundra vouches for the integrity of its Dubai clients, saying their accounts are KYC compliant. This is interesting since there are plenty of reasons why highly-mobile individuals and companies might want accounts in offshore havens. But Dubai currency exchanges? How exactly does the bank in Nassau establish the integrity of its clients in Dubai? Does it monitor the customer’s activities? What are its anti-money laundering systems, and how adequate are they?
Earlier, a Firstpost report had criticised the Reserve Bank of India’s failure to act in the face of revelations resulting from a Cobrapost sting which exposed gaping holes in how India’s three top private sector banks – HDFC Bank, Axis Bank and ICICI Bank – offer red carpet welcomes to those with money to invest – never mind its colour. KYC norms seem to be routinely flouted by Indian banks in India – let alone in Nassau – when the rich and powerful are involved.
Third, Bank of Baroda has said that its actions are legal. But this claim is also a red herring, since no one has alleged criminal wrong-doing. The banking regulations of offshore tax havens – which in essence give a high degree of secrecy to customers, in return for low interest-rates and no taxes – are the whole source of the controversy. In a country to which transnational crime pose a national security threat, it’s the connection itself, and not the criminality, that matters.
Last year, the United States senate investigations sub-committee slammed HSBC for dealings with terror and organised crime-tainted entities, including banks in Saudi Arabia, Iran and Mexico. None of the entitles HSBC dealt with were illegal. The senate’s investigators, though, said HSBC just hadn’t done enough to make sure terrorists and criminals didn’t have access to the financial system. It is also holding separate hearings on tax-evasion through offshore banks. In India, the tragedy is that no-one is even willing to ask questions, let alone investigate.
For years now, it’s been clear that organised crime uses offshore banking – and that banks don’t want to do anything about it. Gretchen Peters, a transnational crimes expert, told Firstpost that things wouldn’t change until “we see some bankers in Ferragamo suits perp-walked into court and put away for long jail sentences”. That sentiment is going to grow until banks start acting.
Now is probably a good time for Bank of Baroda to start reviewing what it is upto in Nassau.
BANK OF BARODA: OVERSEAS BUSINESS LIFTS GROWTH
August 2, 2013:
An overseas presence spanning 24 countries has
consistently helped Bank of Baroda grow at higher rates than the overall
banking industry in the past. In the latest quarter ending June, the bank’s
loan growth slowed to 12 per cent, but was driven mainly by the overseas
market. The quarter saw overseas advances grow by 18 per cent, contributing
almost a third of the loan book.
Domestic loans however, grew by only 10 per
cent. Within this, retail and small and medium enterprises (SMEs) drove growth.
The bank’s strong presence among SMEs in Rajasthan, Uttar Pradesh and
Uttarakhand continues to help it log a healthy growth rate in this segment.
For this fiscal, the management expects the
bank to grow 1-2 percentage points above the industry average. However, tapering
domestic loan growth may make this a tough task.
Like every other public sector bank, Bank of
Baroda too, witnessed a surge in loan delinquencies during the quarter ending
June. Additional slippages of Rs 19600.000 Millions and lower recoveries led to
an increase in non-performing assets.
The stress in large industries, SMEs and
agriculture segments continued to remain high. Restructured loans of Rs
20000.000 Millions during the quarter added to the bank’s stressed assets.
Prudently though, the bank has fully provided
for its restructured assets instead of apportioning them over the next four
quarters.
Shedding high-cost deposits worth Rs
223630.000 Millions helped reduce costs and offset some of the pressure on
declining yields. The low-cost current account and savings account (CASA)
constitutes a healthy 31 per cent of overall deposits.
While the next two to three quarters will
continue to witness pressure on asset quality, Bank of Baroda still remains
among the better capitalised public sector banks with Tier-I capital adequacy
of 9.7 per cent.
At Rs 487 per share on the BSE, the stock
trades at a comfortable 0.8 times one-year forward adjusted book value, lower
than its historic average of 1.1 times.
BOB PLANS TO EXPAND BRANCH NETWORK IN KARNATAKA
Bank of Baroda (BoB), which has 80 branches in
Karnataka, will open another 20 by March-end, according to an executive. M. D.
Mallya, chairman and managing director of the bank, said with the opening of
the new branches, the total number will cross 100 in Karnataka.
Added to this, the bank has 33 onsite ATMs and
19 offsite ATMs in the State. In its
financial inclusion efforts, the bank has engaged 13 business correspondents in
the villages allocated to it in Karnataka.
He said the bank sees Karnataka as a potential
industrial and trading region, that can
attract substantial inflow of funds and create opportunities for speedy growth.
The credit processing and delivery systems of
the bank have been centralised with retail and SME loan factories. These loan
factories that operate on assembly line principle are well geared up to serve
customers more efficiently and quickly.
He said the customer services, after-sale
services and wealth management services have been put on the fast-track by
linking them to dedicated city sales and city back offices managed by specially
trained employees.
The bank has been co-ordinating with
State-level bankers committee, State enterprises, corporate sector, industrial
parks and infrastructure units to offer specialised funding and advisory
services, he said.
The bank opened its 81st branch in Karnataka,
the ninth branch in Mangalore region on Saturday.
M. M. Reddy, general manager (Karnataka and
Andhra Pradesh zone), and J. Ganesh Kumar, deputy general manager, regional
office (Karnataka), were present on the occasion.
Shares of the bank declined Rs 6.9, or 0.91%,
to settle at Rs 754.10. The total volume of shares traded was 86,521 at the BSE
(Monday).
BANK OF BARODA HIKES INTEREST RATES ON DEPOSITS
Bank of Baroda, one of the leading public
sector lenders, announced Monday hike in interest rates payable on select
maturities of domestic term deposits by up to 0.65%.
Now deposits of 46-90 days maturity would have
interest rates of 6.25% up from existing 4.50 percent, BoB (Q,N,C,F)* said in a
regulatory filing to the BSE.
Interest rates for deposits of 271 days to
less than a year would fetch interest rate of 7.75%, higher than 7.50 percent
earlier.
Besides, customers will get 9% interest rate
on deposits of 1-3 year and 3-10 year.
Shares of the company gained Rs 3.35, or
0.53%, to trade at Rs 631.25. The total volume of shares traded was 19,622 at
the BSE (10.24 a.m., Tuesday).
Moody's affirms
ratings and outlook of Bank of Baroda
January 20, 2012
Moody's Investors
Service has affirmed Bank of Baroda's deposit and debt ratings, with a stable
outlook.
Bank of Baroda's Baa3/P-3 foreign currency deposit ratings are constrained by the sovereign ceiling for foreign currency deposits. The foreign currency debt ratings are assigned to the London branch of Bank of Baroda for where it issues this debt under its medium-term notes program.
Moody's has also affirmed the bank's D+ bank financial strength rating (BFSR),
mapping to a baseline credit assessment (BCA) of Ba1, with a stable outlook.
"The affirmation of Bank of Baroda's deposit and debt ratings, and stable
outlook, reflects the bank's significant franchise with growing market share,
stable asset quality, as well as its strong liquidity position and income
profiles," says Vineet Gupta, a Moody's Vice President and Senior Analyst.
Bank of Baroda's profitability indicators are strong, and compare well with
other Baa2-rated public-sector banks. At end-March 2011, its recurring earnings
power (pre-provision income/average risk weighted assets) was strong at 3.8%,
and the return on average risk-weighted assets was also strong at 2.32%.
The bank's earnings profile has been maintained in the six-month period, ending
September 2011.
"After factoring in the advantages of cost efficiency and stable fee
income, and despite pressures on net interest margins due to an increase in the
costs of funds, strong recurring earnings should continue," says Gupta.
"The possible downside to this expected scenario could emerge if the bank
suffers significant asset quality or franchise deterioration, but which we do
not believe is likely."
Asset quality indicators are stable, and compare well with other Baa2-rated
public-sector banks. Its gross non-performing loan (NPL) ratio was stable at
1.4% at end-September 2011 (1.36% at end-March 2011), and net NPLs were below
0.5%.
Provisioning cover is adequate at 66%, although it has declined from 75% at
end-March 2011. The bank's credit portfolio is well-diversified, with no
individual sector exceeding 6% of total credit exposures.
"Over the next few quarters, given the challenges in its operating
environment and expected vulnerability in the infrastructure portfolio (power
and telecom), the bank's asset quality indicators could experience some
deterioration. However, we do not expect this deterioration to be strong enough
to negatively impact the ratings," says Gupta.
The bank's capitalization levels improved at end-March 2011, driven by strong
internal capital generation and an equity infusion of INR24.61 billion from the
Indian government. The bank's core Tier 1 capital ratio is adequate at 8.5%,
enabling it to grow further and to meet the proposed draft Basel III
guidelines. The bank also expects to receive another equity infusion in FY2012,
which would take the government's share to 58% from its current 57%.
Bank of Baroda has adequate liquidity, driven by its strong retail franchise
and mandatory government securities portfolio. Its liquidity position is comparable
to other Baa2-rated Indian public-sector banks.
The bank's D+ BFSR could be upgraded if it reduces its annual NPL formation
rate to below 1%, and strengthens its core Tier 1 capital to over 10%.
The supported ratings -- Baa2 senior debt and Baa2/P-2 local currency deposit
rating -- are already at the country ceilings. The constrained Baa3/P-3 foreign
currency deposit rating would be upgraded if the country ceiling were revised
upwards.
The bank's BFSR is at the lower end of D+, which provides a significant cushion
on its asset quality, capitalization, and profitability indicators. However, if
the bank were to face significant deterioration in its capitalization levels or
asset quality, its BFSR could come under pressure.
The supported ratings -- Baa2 senior debt ratings, Baa3 subordinated debt, and
(P)Ba1 junior subordinated debt program -- would be lowered if the support
assumptions on these debt instruments changed.
The principal methodologies used in rating Bank of Baroda were Bank Financial
Strength Ratings: Global Methodology published in February 2007, Incorporation
of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology
published in March 2007 and Moody's Guidelines for Rating Bank Hybrid
Securities and Subordinated Debt published in November 2009. Please see the
Credit Policy page on Moodys.com for a copy of these methodologies.
Bank of Baroda, headquartered in Mumbai, had assets of INR 3,584 billion as of
31 March 2011.
BANK OF BARODA
APPROVES RS 8.50 BN PREFERENTIAL ISSUE TO GOI
12 February 2013
Bank of Baroda, one of the leading public sector lenders, approved on Monday to issue shares aggregating upto Rs 8.50 billion on preferential basis to Government of lndia (GOI).
Shares with face value of Rs 10 each will be issued for cash at a premium to be determined in accordance with SEBI (ICDR) Regulations.
The bank has called extra-ordinary general meeting, which be held at Vadodara on Mar. 11, 2013 for the same purpose.
BOB PLANS TO EXPAND
BRANCH NETWORK IN KARNATAKA
(29 October 2012)
Bank of Baroda (BoB), which has 80 branches in Karnataka, will open another 20 by March-end, according to an executive. M. D. Mallya, chairman and managing director of the bank, said with the opening of the new branches, the total number will cross 100 in Karnataka.
Added to this, the bank has 33 onsite ATMs and 19 offsite ATMs in the State. In its financial inclusion efforts, the bank has engaged 13 business correspondents in the villages allocated to it in Karnataka.
He said the bank sees Karnataka as a potential industrial and trading region, that can attract substantial inflow of funds and create opportunities for speedy growth.
The credit processing and delivery systems of the bank have been centralised with retail and SME loan factories. These loan factories that operate on assembly line principle are well geared up to serve customers more efficiently and quickly.
He said the customer services, after-sale services and wealth management services have been put on the fast-track by linking them to dedicated city sales and city back offices managed by specially trained employees.
The bank has been co-ordinating with State-level bankers committee, State enterprises, corporate sector, industrial parks and infrastructure units to offer specialised funding and advisory services, he said.
The bank opened its 81st branch in Karnataka, the ninth branch in Mangalore region on Saturday.
M. M. Reddy, general manager (Karnataka and Andhra Pradesh zone), and J. Ganesh Kumar, deputy general manager, regional office (Karnataka), were present on the occasion.
Shares of the bank declined Rs 6.9, or 0.91%, to settle at Rs 754.10. The total volume of shares traded was 86,521 at the BSE (Monday).
BBVA CALLED OFF JV
WITH BOB FOR CREDIT CARD BIZ
(29 February 2012)
Banco Bilbao Vizcaya Argentaria (BBVA) has called off a joint venture with Bank of Baroda (BoB) regarding credit card business.
“Although they consider Bank of Baroda as an ideal partner, due to change of strategy within BBVA, they may not be able to proceed further in the matter,`` the bank said in the statement.
Earlier the bank has entered into a Memorandum of Understanding (MOU) with BBVA.
Shares of the bank declined Rs 10.5, or 1.3%, to trade at Rs 799. The total volume of shares traded was 29,035 at the BSE (11.06 a.m., Wednesday).
BOB, ANDHRA BANK JV
CO OFFERS LIFE INSURANCE COVER TO CAR BUYERS
(27 January 2012)
IndiaFirst Life Insurance, a joint venture of two of India`s largest public sector banks - Bank of Baroda and Andhra Bank along with UK`s leading risk, wealth and investment company Legal and General, today launched `Autolife` - a simple process of getting life insurance cover instantly at an affordable cost.
The announcement was made by Dr P. Nandagopal, Managing Director and Chief Executive Officer, IndiaFirst Life Insurance. M D Mallya, Chairman and Managing Director of Bank of Baroda, B A Prabhakar, Chairman and Managing Director of Andhra Bank and Gareth Hoskin, Chief Executive Office - International Business, Legal and General were also present at the launch.
``Today we are witnessing two quite distinct yet obvious trends - one in the automobile industry and another in life insurance. Both these industries while may seem to be non-related to each other, offer an interesting possibility for synergy. In the recent times, the automobile industry has seen an upsurge not only in terms of numbers but also the kind of involvement and time spent by end users in deciding the right fit. The second trend noticed is the growing preference of investors for returns over protection and instant gratification/ solutions instead of long waits. This we see as a gap as well as a great opportunity for us as we increase our focus on group business,``
Under Autolife, automobile buyers can now not only ensure their family’s happiness about also secure them from future uncertainties of life. They can now avail the benefits of a life insurance cover at the same time and place as buying their new car and that too at an affordable cost.
Autolife is a win-win proposition for all - the customer, dealer and the insurer.
It is convenient as it does not require any documentation/ medicals or waiting period and assures speedy and empathetic settlement of claims within 48 hours`.
The company has entered into its first tie-up with Varun Motors of Andhra Pradesh to offer life insurance cover to its customers. India First Life is planning similar tie-ups at a nationwide level across various untapped segments in the near future so that customers across the country can avail the benefit of a life insurance cover through a simple process.
Varun Motors today caters to over 15000 customers every month. They are spread across Andhra Pradesh through 100 centers.
Under its first tie-up for Autolife, customers of Varun Motors (two wheeler/ four wheeler) besides availing vehicle insurance; will also be able to avail a life insurance cover of upto Rs. 2.000 Millions at an affordable cost. Customers have the flexibility of selecting from any of the four options - blue, silver, gold or platinum, which will provide life insurance cover of upto Rs 0.300 Million, Rs 0.500 Million, Rs 1.000 Millions and Rs 2.000 Millions respectively.
`We believe such an initiative is important for a country like India which is still under insured and will help achieve greater insurance penetration,`` further added Dr Nandagopal.
India First Life Insurance is constantly working towards making insurance buying a simple and informed process for its customers. Some of the unique initiatives launched by the company include - LifeStore, a `Do-It-Yourself` online store for understanding and buying insurance, and Ask Apply Get (AAG) - an innovative and customer friendly process to buy life insurance in the most hassle free manner over the counter. IndiaFirst was also the first to introduce product audio-visuals as a compulsory part of their sales process to bring transparency in product information dissemination.
Shares of the company declined Rs 25, or 3.16%, to trade at Rs 764.90. The total volume of shares traded was 138,930 at the BSE (2.39 p.m., Friday).
COBRAPOST: WHAT
WORRIES AND WHY INCENTIVE CULTURE BE REVISED?
May 14, 2013
Cobrapost expose on alleged money laundering cases has no doubt brought many things to public notice. However, there is a need to delve deep into reading beyond investigation reports. Incentive culture is one key reason behind it, says a RBI official.
A series of sting operations by online magazine — Cobrapost — prompted both the Reserve Bank of India (RBI) and the finance ministry to swing into action. The central bank had conducted an investigation and submitted a report. Now, the finance ministry seeks punitive action against banks allegedly involved in money-laundering.
Some of the banks indicted by the expose include HDFC Bank Limited, Axis Bank, ICICI Bank Limited, State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), Canara Bank, IDBI Bank, Yes Bank and others.
RBI and FinMin
Of late, the FinMin is believed to have written to RBI asking the reason for not taking action so far.
"RBI will not spare anybody if proved guilty," a senior RBI official told moneycontrol.com on condition of anonymity.
"However, it will not act on other's diktat. It will take its own decision based on its internal scrutiny and investigation. Banks have committed some procedural mistakes. It is very difficult to identify the element of criminality. It is the incentive culture, which lures bank managers to go any extent. Incentives, be it in private or public sector banks, should not be given for deposit collections only but for managing non performing assets and expanding credit as well," he said.
RBI investigation report
According to CNBC TV18, the RBI may revise penalty for Cobrapost violations. It is currently at Rs 10.000 Millions. Banks have been served "show cause" notice as to why they should not be penalised. Talks of capping cash investment in third party insurance products are also going on. There may be a common code on Know Your Customer (KYC)/ anti-money laundering guidelines.
Incentive and worries
It is widely perceived that private sector banking officials are offered huge incentives to attain business targets. However, state-owned banks too are not lagging behind. Incentive culture has slowly crept in public sector banks, which are facing tough competition.
"It was actually started by SBI, which offers exotic family tour packages to Singapore or Indonesia once an official achieves his/her business target. Now-a-days some big lenders practice the same," the RBI official said.
In many cases, it is learnt that business developments at the cost of incentives do not happen in real terms for the entire industry. A branch manager may obtain bulk deposits from a single customer. With his/her transfer to another location, he will shift the same customer in the new branch. It applies the same if he changes job to another bank. Consequently, deposits are not expanding as a whole.
"Had the incentive culture helped growing the industry, the average
deposits would have grown leaps and bounds. It is only diversion of
deposits," he said adding that elements of unaccounted money and funds for
criminal activities are two other major factors to worry for.
Ill-gotten money, be it by way of bribes or committing crimes, if laundered through banking system, will wreak havoc especially in an emerging economy like India. RBI is quite concerned about it.
"Name dropping is a big issue in India. Even big fishes when get money through unscrupulous means call their cohorts sitting in large institutions to park their sum in different deposit schemes in smaller denominations," said an industry expert who did not wish to be identified.
Banks viewpoint
Banks do not find anything wrong in giving incentives to efficient staff, who
bring business. The "unnecessary" commotion is rather injecting an
element of "fear psychosis" among managers (at the grass root level),
who no more will work freely. It may hurt their performance as well, top
lenders are of opinion.
"You mean to say every thing is going wrong in the system," was the
curt reply from a CMD of large state-owned bank as against a moneycontrol
query.
"If it is so, then change the system, do not blame banks. I still fail to understand what fraud exactly has taken place. In colloquial term, a bank manager may resort to some loose talks. It does not mean, he will apply the same," he said adding that bank managers are not expected to greet customers with a volley of intricate questions.
COBRAPOST EXPOSE:
BANKS SUSPEND EMPLOYEES UNDER FINMIN HEAT
May 07, 2013
In the aftermath of Cobrapost 2, state-owned lenders including Punjab National Bank (PNB), Bank of Baroda (BoB) and IDBI Bank on Tuesday suspended cumulatively five officials allegedly involved in money laundering and KYC (Know Your Customers) violation norms. The finance ministry is exerting pressure on all institutions to take rapid actions
All those suspension can be revoked provided final investigation reports exonerate them.
Online investigative news website Cobrapost had carried out a sting operation on 23 financial institutions including large public sector banks, insurance companies and some mid size private sector lenders. In a press conference on Monday, it alleged all those of helping people convert black money into white by way of investment in their schemes.
India's third largest lender Punjab National Bank (PNB) on Tuesday suspended two out of three employees allegedly involved in Cobrapost expose. Those were working in South Delhi and Noida branches in the capacity of cheif manager and assistant general manager. However, decision is not yet taken on the third employee based in South Delhi.
"The bank prima facie has not found any evidence of violations. The conversations between Cobrapost and bank officials were purely of colloquial nature. Investigation is on. We are looking into the matter," said a senior official from PNB confirming the development. He did not wish to be quoted.
Similarly, IDBI Bank suspended two junior officials based in New Delhi. Bank of Baroda too is believed to have suspended one chief manager at Parliament Street branch.
According to a BoB official, all involved managers were doing business on behalf of respective banks, not for individual gains. However, banks are probably acting under ministry pressure.
"Any suspension does not prove somebody's guilt. They will be relieved from work till the final investigation report comes out. We are conducting our own investigation. It is not our responsibility to cross check the source of money. We can always refer it to FIU," said a senior banker from IDBI Bank.
It is a normal practice for a branch manager (of any bank) to report any suspicious transaction to the Financial Intelligence Unit (FIU), the government agency which reports the same to the Income Tax Department.
Earlier on Monday, the finance ministry had started scrutinizing the video footage shown in the exposure. Rajiv Takru the secretary at Department of Financial Services had asked all state owned banks and the Life Insurance Corporation (LIC) of India to initiate actions.
"I assume that the DVDs contain what is genuine
material because that would be in the fitness of things. I don't think anybody
would do something like this on the basis of fabricated evidence, so we assume
that whatever has been shown in the DVDs prima facie is correct or reflects the
transaction as it happened. At this moment we are not talking in terms of
forensic examination of DVDs," he told CNBC TV18.
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 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.66.57 |
|
|
1 |
Rs.103.34 |
|
Euro |
1 |
Rs.88.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
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 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
77 |
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.