MIRA
INFORM REPORT
|
Report Date : |
05.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
STATE BANK OF MYSORE |
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Registered
Office : |
K G Road, Bangalore - 560009, Karnataka |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
31.12.1913 |
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Legal Form : |
A Public Limited Liability Bank. The Bank Shares are Listed on the
Stock Exchange. |
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Line of Business
: |
Banking
Activities. |
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No. of Employees
: |
2062 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (72) |
|
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 |
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Maximum Credit Limit : |
USD 170000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established bank having excellent track record. Overall financial of the banks appears to be strong and healthy. Trade relations are fair. Business is active. Payment terms are
regular and as per commitment. The bank can be considered for business dealings at usual trade terms
and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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 |
ICRA |
|
Rating |
AAA (Lower Tier II Bonds Programme) |
|
Rating Explanation |
Highest credit quality and lowest credit risk. |
|
Date |
17.01.2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
A1+ (Certificates of Deposits Programme) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
17.01.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (EMPLOYEE PROVIDENT FUND) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Head Officer : |
K G Road, Bangalore - 560009, Karnataka, India |
|
Tel. No.: |
91-80-22352184 / 22353901 / 22353902 / 22353903/4/5/6/7/ |
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Fax No.: |
91-80-22254753/ 22283684 |
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E-Mail : |
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Website : |
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Branch Office : |
A D B KORATAGERE Main Road, Koratagere - 572129, Koratagere Taluka, Tumkur District, Karanataka, India Tel. No: 91-81-38232130/ 8138232130 Email: adbkoratagere@sbm.co.in MADIKERI Anushree Complex, College Road, Madikeri – 571201, Karnataka, India Tel. No: 08272-228636 Email: madikeri@sbm.co.in I F B NEW DELHI 15-17, Sheed Bhagfat Singh Marg, Near Gole Market, New Delhi – 110001, India Tel. No: 91-11-23347235/ 1123347254 Email: ifbdelhi@sbm.co.in KALKAJI Kalkaji New Delhi – 110019, India Tel. No: 91-11-26284441 Email: kalkaji@sbm.co.in MAHAVEER CIRCLE Sathyam Arcade, Bangalore Mangalore Road, Pump Well, Mangalore – 575002, Karnataka, India Tel. No: 91-82-42430044 Email: mahaveeracircle@sbm.co.in NIJALINGAPPA
LAYOUT, DAVANGERE Nijalingappa Layout Branch, No. 331,S. Nijalingappa Layout, Davangere – 577 004, Karnataka, India Email: snlayout@sbm.co.in NAVANAGAR BAGALKOT Plot No.69, Sector No.33, Navanagar Bagalkot – 587103, Karnataka, India Tel. No: 91-83-54235114/ 8354235115 Email: navanagarbagalkot@sbm.co.in |
DIRECTORS
As on: 31.03.2013
|
Name : |
Rajeev N. Mehra |
|
Designation : |
Director |
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Name : |
K.N. Nayak |
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Designation : |
Director |
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Name : |
Smt .Madhumita Sarkar Deb |
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Designation : |
Director |
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Name : |
K. Gururaj Acharya |
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Designation : |
Director |
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|
Name : |
Ramasubramanian S. |
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Designation : |
Director |
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Name : |
Gururaja Rao |
|
Designation : |
Director |
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Name : |
Milind S.Katti |
|
Designation : |
Director |
SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholder |
Total No. of
Shares |
Total Shareholding
as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
43212078 |
90.00 |
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|
43212078 |
90.00 |
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Total shareholding of Promoter and Promoter Group (A) |
43212078 |
90.00 |
|
(B) Public Shareholding |
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|
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|
|
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|
1302761 |
2.71 |
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|
777808 |
1.62 |
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|
200 |
0.00 |
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|
2080769 |
4.33 |
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|
|
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|
89715 |
0.19 |
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|
|
|
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|
2376773 |
4.95 |
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|
210027 |
0.44 |
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|
44058 |
0.09 |
|
|
30993 |
0.06 |
|
|
6760 |
0.01 |
|
|
6290 |
0.01 |
|
|
15 |
0.00 |
|
|
2720573 |
5.67 |
|
Total Public shareholding (B) |
4801342 |
10.00 |
|
Total (A)+(B) |
48013420 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
48013420 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Banking Activities |
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Exports : |
Not Available |
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Imports : |
Not Available |
GENERAL INFORMATION
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Suppliers : |
Not Available |
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Customers : |
Not Available |
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No. of Employees : |
2062 (Approximately) |
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Bankers : |
Reserve Bank of India |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
· Bhasin Raghavan and Company · K. P. Rao and Company · B. L. Ajmera and Company · M.K.P.S and Associates · Maharaj N.R. Suresh and Company · Bubber Jindal and Company |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 Millions |
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4,67,99,790 |
Equity Shares |
Rs.10/- each |
Rs.467.998
Millions |
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LISTING DETAILS:
|
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BSE : 532200 NSE : MYSOREBANK |
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ISIN Code : |
INE651A01020 |
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Stock Exchange Place : |
The Stock Exchange, Mumbai, National Stock Exchange of India Ltd |
|
Listed Date : |
28.07.2009 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
Capital |
|
467.998 |
467.998 |
|
Reserves & Surplus |
|
42857.321 |
39417.285 |
|
Deposits |
|
569690.429 |
501863.002 |
|
Borrowings |
|
38542.027 |
44255.862 |
|
Other liabilities & provisions |
|
20769.795 |
18031.530 |
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|
|
|
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TOTAL |
|
672327.570 |
604035.677 |
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|
|
|
|
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Cash and balances with Reserve Bank of India |
|
24046.670 |
30258.450 |
|
Balances with banks and money at call & short notice |
|
11000.919 |
3368.618 |
|
Investments |
|
167745.770 |
147327.035 |
|
Advances |
|
449325.736 |
398353.073 |
|
Fixed Assets |
|
8242.816 |
7494.149 |
|
Other Assets |
|
11965.659 |
17234.352 |
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|
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|
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TOTAL |
|
672327.570 |
604035.677 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
|
INCOME |
|
|
|
|
Interest earned |
|
59654.842 |
50784.313 |
|
Other Income |
|
5955.909 |
5163.934 |
|
TOTAL |
|
65610.751 |
55948.247 |
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|
|
|
|
EXPENSES |
|
|
|
|
Interest Expended |
|
41252.793 |
34941.387 |
|
Operating Expenses |
|
11047.637 |
10410.720 |
|
Provisions and Contingencies |
|
9149.358 |
6904.663 |
|
TOTAL |
|
61449.788 |
52256.770 |
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PROFIT |
|
|
|
|
Net Profit for the year |
|
4160.963 |
3691.477 |
|
Profit brought forward |
|
0.029 |
0.014 |
|
TOTAL |
|
4160.992 |
3691.491 |
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|
|
APPROPRIATIONS |
|
|
|
|
Transfer to Statutory Reserves |
|
1040.242 |
922.870 |
|
Transfer to Capital Reserves |
|
198.563 |
0.000 |
|
Transfer to Other Reserves |
|
1693.900 |
1749.900 |
|
Transfer to Special Reserve in terms |
|
587.760 |
459.773 |
|
Interim dividend |
|
538.197 |
467.998 |
|
Tax on dividend |
|
87.309 |
75.921 |
|
Contribution to Retired Employees Medical Fund |
|
15.000 |
15.000 |
|
Balance carried over to Balance Sheet |
|
0.022 |
0.029 |
|
TOTAL |
|
4160.993 |
3691.491 |
|
|
|
|
|
|
Earning Per
Share (Basic and Diluted) |
|
88.91 |
78.88 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
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 |
MANAGEMENT
DISCUSSIONS ANDANALYSIS
Macro Economic
Scenario and Banking environment
Global economic developments over the last few months present a mixed picture. US macro-economic prospects are clouded by the uncertainty surrounding the temporary appropriations and the debt ceiling. In the Euro area, plagued by contingent risks of political uncertainty and adjustment fatigue, GDP shrank for the third successive quarter in Q4. Though some emerging and developing economies (EDEs), including China, are gradually returning to faster growth, activity is slowing in others, hobbled by weak external demand and slack domestic investment.
India's gross domestic product (GDP) slowed significantly this year, dropping to 5.5 per cent in the first quarter, and dropping even further to 5.3 percent in the second quarter. GDP growth in Q3 of FY 2013, at 4.5 percent, was the weakest in the last 15 quarters.
The Central Statistics Office (CSO) has projected GDP growth for 2012-13 of 5.0 percent lower than the Reserve Bank's baseline projection of 5.5 per cent set out in the Third Quarter Review, reflecting slower than expected growth in both industry and services.
The year on year Wholesale Price Index inflation edged up to 6.8 per cent in February 2013 from 6.6 per cent in
January, essentially reflecting the upward revisions effected to administered prices of petroleum products. On the other hand, non-food manufactured products inflation, and its momentum, continued to ebb along the trajectory that began in September 2012, enabled by softening prices of metals, textiles, and rubber products. Retail inflation continued on the upward path that set in from October 2012. The divergence between whole-sale and consumer price inflation continued to widen during the year.
With the RBI's policy of altering only the Repo rate, Banks are unlikely to immediately cut deposit and lending rates, but may think to cut the rates in the next financial year. Liquidity in the Banking system is tight in the run-up to the financial year-end. However, further rate cuts and continuous monetary easing through open market operations will continue to support the bond market and the yields are expected to stabilize at lower levels.
Repo Rate:
Reduction of Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 7.75 per cent to 7.50 percent was effected in a bid to cut the cost of funds of Banks, which is further lent to productive sectors of the economy.
Reverse Repo Rate :
The Reverse Repo rate under the LAF subsequently stood adjusted to 6.5 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 8.5 percent.
Cash Reserve Ratio :
The reduction of cash reserve ratio (CRR) of Banks by 25 basis points, effective from February 9 and open market purchases of Rs. 20000.000 Millions since February have enabled money market rates to remain anchored to the policy Repo rate.
Statutory Liquidity ratio :
SLR has remained unchanged at 23 per cent w. e. f. 11.08.2012.
To sum up, growth of
the economy in 2012-13 has the following features :
· Growth has been accelerated significantly on the domestic front, even as inflation remains at a level which is not conducive for sustained economic growth.
· Despite notable softening of nonfood manufactured products inflation, food inflation remains high, driving a wedge between whole sale price inflation, and is exacerbating the challenge for monetary management in anchoring inflation expectations.
· Macro-economic priorities on the domestic front would be to 'raise the growth rate, restrain inflation pressures and mitigate the vulnerability of the external sector '.
· The composite Purchasing Managers' Index (PMI) declined in February, largely reflecting slower expansion in services.
· Gross fiscal deficit (GFD)-GDP ratio, at 5.2 per cent, was contained around its budgeted level, mainly by scaling-down plan and capital expenditure.
· Policy stance emphasizes addressing the growth risks, the head-room for further monetary easing remaining quite limited.
ECONOMY OF KARNATAKA
Karnataka economy is largely service oriented with the agricultural and industrial sectors also contributing substantially. The State is the largest producer of coffee, raw silk, and sandalwood in the country and also adds considerably to the horticulture production. The major manufacture oriented industries in the State include sugar, paper, steel and cement.
Karnataka's state capital Bangalore is considered the Silicon Valley of India. Several IT companies have their offices in Bangalore.
Advanced estimates of Karnataka's Gross Domestic Product (GSDP) at constant (2004-05) prices show that the State economy is expected to grow at 5.9% and reach Rs. 3034440.000 Millions in FY 2013 (from Rs. 2864100.000 Millions in FY 2012). Karnataka's economy is showing encouraging trends due to the strong service sector, which grew by 8.9% in FY 2013. Despite the drought situation prevailing from last year, the agriculture and allied sector has achieved a growth rate of 1.8% in 2012-13 against -2.2% in FY 2012. The composition of GSDP for FY 2013 is 15.3% from Agriculture and Allied Activities sector, 25.9% from Industry sector and 58.8% from service sector.
The State's own tax revenues increased from Rs. 259870.000 Millions in FY 2008 to Rs. 518210.000 Millions during FY 2013 at a compound annual growth rate (CAGR) of 14.8%. The share of development expenditure in GDP has significantly increased from 10.51% in FY 2008 to 12.89% in FY 2013, while the share of interest payments has declined from 1.93 % to 1.44%.
The business growth of their Bank depends to a large extent on the Karnataka economy, since 82.2% of branches (641 out of 780 branches as on 31.03.2013) are located in Karnataka. The budget size and State Plan FY 2014 envisages a total expenditure of Rs. 1170050.000 Millions on various development activities and regulatory functions of the Government, which is an increase of 13.88% over the budget of Rs. 1027420.000 Millions of FY 2013. The Government has given special thrust on infrastructural facilities such as Energy, Roads, Railways and Dhabhol-Bangalore Gas line project. Substantial investments are being proposed in the city of Bangalore. Construction activity through-out the State, and investments by reputed industrial groups will offer good growth opportunity for the Bank.
REVIEW OF BANKING
OPERATIONS
Market Share and Business
Growth
The business levels of the Bank and the position of market-share in recent years are furnished hereunder.
The Bank has seen continuity in growth during FY 2013 also, with aggregate deposits reaching a level of Rs. 567120.000 Millions, a growth of Rs. 70490.000 Millions over the previous year, at a rate of 14.19%. The total advances have reached a level of Rs.459810.000 Millions recording a growth of Rs.53280.000 Millions over the previous year, at a growth rate of 13.11%. As on 22.03.2013 the Bank's market share of Deposits increased to 0.83% in the current year from 0.78% in the previous year though, Bank's market share of Advances remained static at 0.85%
BUSINESS REVIEW
Deposits
Total Deposits of the Bank grew by Rs. 67840.000 Millions to reach the level of Rs. 569700.000 Millions. Aggregate Deposits (total deposits excluding Inter Bank deposits) stood at Rs. 567120.000 Millions as at the end of March 2013, recording a growth of Rs. 70490.000 Millions (14.2%) during the year.
Personal Segment
Deposits
Personal segment deposits grew by Rs. 42480.000 Millions, registering a growth of 18.03%, to reach a level of Rs. 278100.000 Millions as on 31st March 2013. The share of Personal segment deposits increased from 47.44% of Aggregate Deposit to 49.03% in FY 13. The number of deposit accounts under Personal segment have increased by 11,87,121 during the year.
To augment deposit growth under Personal segment, three new deposit products viz. MyBank 100, Centenary Liquid Deposit and Personal Risk Insurance were introduced. Personal Risk Insurance Product provides depositors free Accident death cover upto Rs. 0.400 Millions on payment of a nominal annual premium of Rs. 100.
Credit Expansion
While the total advances of the Bank increased from Rs. 406530.000 Millions to Rs. 459810.000 Millions, registering a growth of Rs. 53350.000 Millions (13.1%) during the year, Net advances (i.e. net of NPA related/ floating Provisions, and outstanding under Staff Festival Advance) of the Bank increased from Rs. 398350.000 Millions in March 2012 to Rs. 449320.000 Millions. Credit Deposit Ratio of the Bank decreased from 81.9% in March 2012 to 81.1% in March 2013. Average Total Advances grew by Rs.57050.000 Millions (16.06%) during the year.
The Head Office Credit Committee - I (HOCC-I), with the Managing Director as Chairman and Head Office Credit Committee – II (HOCC-II), with the Chief General Manager as Chairman, has been set up in order to make the credit process speedier and to take decisions through a committee approach. A total of 103 meetings were held in aggregate by the Committee.
Besides the above HOCCs, in order to provide speedier credit and consequent to devolution of wider powers to the NetWorks, 4 Network Credit Committees, with Network General Managers as Chairmen, were constituted and 44 meetings were held in aggregate.
Personal Segment
Advances
Personal segment advances grew by Rs. 10810.000 Millions to reach a level of Rs. 74590.000 Millions. YOY growth of 18%. Housing loans grew by Rs. 5160.000 Millions and reached a level of Rs. 37320.000 Millions. The Bank has introduced IBA Model on Education Loan for Vocational courses during the year. To increase Housing Loan, Car Loan and Gold Loan business under Personal Segment a special campaign was conducted between 25.02.2013 to 31.03.2013. As a result Housing Loans grew by Rs.5160.000 Millions to reach a level of Rs. 37320.000 Millions, Car Loans grew by Rs. 1040.000 Millions to reach a level of Rs. 5750.000 Millions and Gold Loan grew by Rs.1970.000 Millions to reach a level of Rs.2550.000 Millions.
Bank has waived Pre-payment penalty/ Pre-closure charges for floating rate Housing loans and Car loans besides
Educational loans.
Priority Sector
Lending and Social Banking
The total credit provided to the Priority Sector for the year ended March 2013 stood at Rs. 134830.000 Millions, including Interbank Participation Certificate of Rs. 6850.000 Millions invested in Kaveri Grameena Bank, which constitutes 33.8 % of the Adjusted Net Bank Credit (ANBC). Segment-wise status of these advances is as under:
·
Agriculture:
The direct Agricultural advances increased by 17.2% from Rs. 44040.000 Millions to Rs. 51790.000 Millions. Total agricultural advances went up from Rs.52470.000 Millions to Rs. 57520.000 Millions, registering a growth of 10 %.
Agricultural Gold Loan also registered a growth of 227% from Rs.2700.000 Millions to Rs.8850.000 Millions. 53,879 Kisan Credit Cards were issued on revised RBI guidelines aggregating to Rs.16260.000 Millions.
·
Micro and
Small Enterprises (MSE) :
The Bank's advance to Micro and Small Enterprises as on 31.03.2013 is Rs. 37564.100 Millions.
·
Personal
and Services Banking (P and SB):
While housing loans under priority sector reached a level of Rs. 28082.200 Millions during the year, education loans grew by over 5.1% and were Rs. 5938.900 Millions during 2012-13.
Agriculture Finance :
The following areas need special mention in the area of agricultural finance:
SBM RECOTRAC SCHEME:
A special OTS Scheme for tractor NPA accounts was introduced during the year. A recovery of Rs.406.400 Millions was made, involving closure of 620 accounts.
DROUGHT RELIEF
MEASURES:
With the prevalence of drought-like situation in 157 of the 175 taluks in Karnataka State, 63,809 farmers were relieved of repayment of Agriculture loans, by restructuring/rescheduling of their loans amounting to Rs.7070.000 Millions. Fresh finance was also considered for the affected farmers.
Micro and Small
Enterprises (Manufacturing)
The Bank's advances to Micro and Small Enterprises (Manufacturing) as on 31.03.2013 is Rs. 23115.400 Millions.
Micro and Small
Enterprises (Services)
· Bank's advances to Micro & Small Enterprises (Services) as on 31.03.2013 is Rs. 14448.700 Millions.
· The Bank has introduced Capital Subsidy/Refinance Scheme under "MYBANK-SOLAR WATER HEATING SYSTEM" for installation of Solar Off Grid and Decentralized application under Jawaharlal Nehru National Solar Mission (JNNSM) of the Ministry of New and Renewable Energy, GOI. Interest on MSE advances was rationalized during the year and minimum rate of interest up to Rs.1.000 Million is fixed at 11.40% (linked to Base Rate) with/ without CGTMSE cover. The maximum rate of interest is 13.65% for loans with CGTMSE cover and with CRA rating of SB 10 and below. For loans without CGTMSE cover interest rate is 14.40% (for loans with CRA rating of SB 10 and below).
A special campaign, "MyBank Centenary SME bonanza" was launched for MSE advances during Jan -Mar 2013. During the campaign the Bank sanctioned 1,910 loans amounting to Rs.1390.000 Millions.
Credit Guarantee
Scheme :
The Bank continued to extend collateral free financial assistance to MSE sector by participating in Credit Guarantee Scheme of CGTMSE. The maximum limit of coverage under the scheme is Rs.10.000 Millions. As at 31st March 2013, 8,727 accounts amounting to Rs. 5300.000 Millions were covered under the Scheme.
During the year 2012-13, CGTMSE Guarantee cover was made mandatoryup to Rs.10.000 Millions for loans under MSE segment, with the cost of Guarantee Fee and Annual Service Fee borne by the Bank.
Assistance to Weaker
Section of Society :
The Bank continued to extend financial assistance to Weaker Sections of Society, comprising small & marginal
farmers with land holdings of 5 acres or less, landless labourers, tenant farmers etc., village & cottage industries whose individual limits do not exceed Rs. 0.050 Milions, SJSRY, SGSY, SLRS, DRI, Self-Help Groups and advances to SC/ST beneficiaries. The outstanding amount under lending to Weaker Sections at Rs.57870.000 Millions as at March 2013 constitutes 14.37% of ANBC, as against stipulated benchmark of 10%.
Assistance to Women
Entrepreneurs:
A booklet on "Charter for Women" containing the details of concessions available to women has been supplied to all the branches for display/ distribution. The Bank's total credit to women as at March 2013 stood at Rs. 25020.000 Millions, covering 1,66,998 beneficiaries, which worksout to 6.27% of Adjusted Net Bank Credit, as against the stipulated benchmark of 5%.
Measures to improve
the economic conditions of Minority Communities :
The Bank's assistance to the Minorities under various schemes as at March 2013 stood at Rs. 14160.000 Millions covering 35,187 beneficiaries, which forms 10.50% of Priority Sector Advances.
Government Sponsored
Schemes :
The position of assistance rendered under various Government sponsored schemes by their Bank as at March 2013 is as detailed below.
Prime Minister's
Employment Generation Programme (PMEGP) :
The Government of India has launched the new scheme "Prime Minister's Employment Generation Programme (PMEGP)" merging the flagship programme Prime Minister's Rozgar Yojana (PMRY) and Khadi and Village Industries Commission's Rural Employment Generation Programme (REGP) from FY2008-09. PMEGP empowers the first generation entrepreneurs to set up micro enterprises across the country. The Bank has extended financial
assistance of Rs. 37.700 Millions to 93 beneficiaries under PMEGP during the year. The Bank's total credit under PMEGP Scheme as at March 2013 was Rs. 500.000 Millions, covering 999 beneficiaries.
Swarna Jayanthi
Shahari Rojgar Yojana (SJSRY) Scheme :
The Bank has extended financial assistance of Rs. 34.600 Millions under SJSRY during the year to 289 beneficiaries. Total amount outstanding under SJSRY scheme as at the end of March 2013 is at Rs. 346.700 Millions, covering 4,483 beneficiaries.
Differential Rate of
Interest (DRI) Scheme :
The Bank's advances under DRI scheme stood at Rs. 253.200 Millions as at March 2013 covering 15,181 beneficiaries and the share of advances to SC/ST beneficiaries within this is 53.2% (Rs. 134.800 Millions).
Swarna Jayanthi Gram
Swarozgar Yojana (SGSY) Scheme :
The Bank has extended financial assistance under SGSY during the year to 126 group beneficiaries and 162 individual beneficiaries were also extended financial assistance to the tune of Rs. 57.100 Millions.
Banking Codes and Standards Board of India (BCSBI) issued revised guidelines on Code for Banks commitment to Micro and Small Enterprises, 2012 during the year. The guidelines are hosted in Bank's website also.
Investments :
The total investments of the Bank in Government securities, other approved securities and Non-SLR securities increased from Rs. 14,786 Millions as at the end of March 2012 to Rs. 168640.100 Millions as at March 2013.
Profit on sale of investments increased from Rs. 3860.000 Millions in 2011-12 to Rs. 665.300 Millions in 2012-13. During the year interest and dividend income, from investments net of amortization charges, registered a growth of Rs. 279.300 Millions (21%) over March, 2012 level.
While interest / yield on investment increased from 7.22% (2011-12) to 7.30% (2012-13) due to the fact that new securities purchased were at higher yield levels, yield on investments, including profit on sale of securities, increased from 7.24 % to 7.49 % during the same period.
Foreign Exchange Turnover of the Bank 2012-13 touched Rs. 4041780.000 Millions (Merchant Turnover - Rs. 249780.000 Millions and Trading Turnover - Rs. 3792000.000 Millions) against previous year level of Rs. 1779880.000 Millions (Merchant Turnover - Rs. 315830.000 Millions and Trading Turnover - Rs. 1464050.000 Millions).
The exchange profit generated from Foreign Exchange business during the 2012-13 was Rs. 582.500 Millions. vis-a-vis Rs. 325.600 Millions in the previous year.
International Banking
The level of Export Credit as on 31st March 2013 was Rs. 13954.400 Millions (Rs.13251.700 Millions as on 31st March 2012) constituting 3.50 % of ANBC. In order to encourage exports, more eligible exporting units were offered Gold Card Scheme on competitive terms, including interest rate concession of 0.25%. Exporters' meets were arranged at strategic centers periodically.
NRI Deposits as on 31.03.2013 stood at Rs. 9720.000 Millions, showing an increase of Rs. 2010.200 Millions, as against Rs.7709.800 Millions, comprising FCNR(B)/RFC deposits of Rs. 1810.000 Millions and NRE/NRO deposits of Rs. 7910.000 Millions. They propose to devote more focussed attention to this area, by establishing a couple of NRI branches during the current year.
As per Bank's BPR objectives, the Bank had set up five TFCPCs at Bangalore, Chennai, Hyderabad, Mumbai and New Delhi. During FY 2012-13, more branches have been linked to TFCPCs in order to consolidate the front-line processing and contribute expertise to all such branches, for extending quality service to Exporters.
During the year, Bank's Export Credit portfolio, other than exposures to Central PSU and LC-backed bills business, have been covered under Export Credit Insurance for Banks (ECIB), Whole Turnover Packing Credit (WTPC) and Whole Turnover Post Shipment (WTPS) Schemes of Export Credit Guarantee Corporation of India.
Cross Selling :
During the year over 33,125 lives were insured through various products of SBI Life Insurance Company Ltd, with a premium collection of Rs. 471.700 Millions. The Bank has collected a premium of Rs. 18.700 Millions while marketing General Insurance Products. In respect of Investment Products, the Bank is extending Mutual Funds products of SBI MF and UTI MF.
Applications for SBI Credit Cards are also sourced by the Bank. The Bank has earned as income of Rs. 92.500 Millions from Cross Selling business during FY 2012-13.
Government Business
State Government
Transactions :
The Bank has been handling a major share of Government of Karnataka transactions for the past many years. About 86% of their total Government Business emanates from State Government transactions and the turnover is directly linked to the budget of the State Government. A turnover of Rs.558540.000 Millions has been achieved during FY 2012-13, as against Rs. 603940.000 Millions in 2011-12. The decrease of Rs. 45400.000 Millions is on account of rise in the number of participating Banks in the e-payment initiatives of the Government.
Central Government
Transactions:
During the year 2012-13, business from various Central Government Departments like Postal, Railways, Defence, Central Board of Direct Taxes, Central Board of Excise and business from various Central Schemes like Public Provident Fund, Senior Citizens Savings Scheme, etc., constituted approximately 14% of the Bank's total Government business turnover. Their business turnover from Central Government departments during the year 2012-13 is at Rs.93570.000 Millions against the turnover of Rs.100750.000 Millions registered during 2011-12. The decline is attributed to the increase in the number of participating Banks in the repayment initiatives of the Government.
Income from
Government Business :
In FY 2012-13 they have earned a commission of Rs.679.500 Millions (FY 2011-12 Rs.680.400 Millions) from Government business. The average yield on Government transactions for the year is 0.104%. The decrease in income by a marginal Rs.0.9 Millions in comparison to 2011-12 is on account of:-
· Increase in the number of participating Banks on account of e-payment initiatives of the Government.
· Rationalisation of commission rates by Reserve Bank of India with effect from 01.07.2012.
· Increase in the number of transaction through e-mode.
They are actively involved in most e-governance initiatives of the Government.
Migration of State and Central Government pension to new package is nearly complete. This will provide improved service to pensioners.
Marketing
Initiatives:-
Marketing of Bank's products and services on an ongoing basis assumes great importance in its operational activities, to ensure sustainable growth. The institutional set-up to meet the new challenges in marketing, using the power of technology, has accordingly been strengthened at various operating levels. A full-fledged Marketing
Department is functioning at Head Office. Besides, to further strengthen the marketing activities Customer Relationship Managers are also placed in large branches.
Marketing efforts at various levels of the Bank have enabled the Bank to open large number of salary accounts of Government employees, which has helped in bringing CASA deposits from various Government departments. Marketing functionaries are meeting Car Dealers, Builders/ Developers at periodical intervals, which has also facilitated in broad basing Bank's retail advance. Marketing Department is also putting up stalls in important exhibitions to market Bank's products and services.
Focussed marketing efforts are directed towards improving Retail/ Personal Segment advances by conducting Home Loan/Car Loan Melas at important centers of the Bank. With a view to provide their customers a wide basket of products, the Bank has been introducing new products/ services regularly.
Contact Centre –
As a customer friendly service, State Bank of Mysore has established a dedicated "SBM Contact Centre". The Centre is provided with a Toll-Free Number 1800-425-2244, which is accessible throughout the country. A separate Primary Rate Interface (PRI) Number 080-22300020 is also provided. The information from Contact Centre is available in English, Hindi and Kannada and it provides services "24 hours on 365 days (24*7*365) basis".
Script Management
System (SMS):
Scripts are documents detailing the different products and services in a easily readable user friendly format.
Lead Management
System (LMS):
LMS can be used as a marketing tool - campaign tool and is also a strong MIS for controllers (Lead Tracks). It provides the Bank a tracking mechanism for business leads received through SBM Contact Centre toll free number 1800-425-2244.
Customer Grievance
Redressal:-
The Bank has launched a Customer Redressal System called SMS Unhappy. The system facilitates customers to air their feedback/ grievances through the process of a simple SMS message. "Unhappy" to 99 0002 0002. On receipt of the message the Bank's dedicated Happy Room staff calls back the customer for the purpose of Grievance Redressal.
NPA Management :
3.18.1. The stresses in the various sectors of the economy has led to the pressures on the quality of assets. The problems faced by textiles, food processing and Infrastructure sectors contributed to a substantial increase in NPAs in the C & I Segment. This, coupled with problems on the agricultural front, caused by drought in most parts of the State, has resulted in an increase of NPAs from Rs. 1,503 Millions as on March 2012 to Rs.2,081 Millions as on March 2013. The Gross NPA ratio increased from 3.70% to 4.53%. The net NPA ratio also increased from 1.93% to 2.69%. The provision for Non Performing Assets (including floating provision and counter-cyclical provisioning buffer) stood at Rs. 872 Millions. Provision Coverage Ratio is at 60.10%. A time-bound action plan with measures, including effective use of SARFAESI Act, rehabilitation of viable units, vigorous follow-up of DRT cases, has been put in place to reduce NPA levels.
Restructuring of Debts: The Bank continues to provide Restructuring Package within the framework of RBI guidelines to deserving borrowers under the Rehabilitation Programme or under packages approved by CDR / BIFR, subject to the viability of the units being established. The Bank has extended the package to 60,491 (19,569) borrowal accounts with dues amounting to Rs. 32371.300 Millions (Rs.26712.300 Millions). Towards diminution in their fair value on account of economic loss caused in the process of restructuring, provision to an extent of Rs. 1802.800 (Rs.909.500) Millions has been made by the Bank. (indicates last year's figure).
Lead Bank Scheme:
The Bank has been discharging Lead Bank responsibilities in three districts viz., Mysore, Tumkur and Chamarajanagar. The Annual Credit Plans for 2013-2014 have been launched. The combined annual credit plan target for 2013-2014 for all Banks in the three districts has gone up to Rs.81868.700 Millions., from Rs.65131.700 Millions. showing a growth of Rs.16737.000 Millions. (25.70% growth). As regard achievement of previous year's credit plan i.e. for 2012-13 it is more than 100% in all the districts concerned. Regular District Level review meetings were arranged to review the position.
To impart entrepreneurial skill and guidance to Unemployed Youth in general and rural youth in particular and become gainfully self employed he Bank has established RUDSETI type of Training Centers viz. MyBank Institute for Promotion of Self Employment and Development (MIPSED) at Hirehally Industrial Estate, Tumkur. A similar institute called "JSS RUDSET" is established at Mariyala, Chamarajanagar Taluk, in association with JSS Mahavidyapeetha. Both the institutes are being managed by personnel on deputation from the Bank. These institutes impart training to candidates selected under various Government Sponsored Schemes, such as PMEGP, SGSY, BCM Corporation, SC/ST Development Corporation, Tailoring and Embroidery, Beautician training, Automobile Mobile Repairing, Mobile Repair and Service etc. During the year, both the centers have conducted programs wherein trainees were given training.
Financial Inclusion
Bank has a comprehensive Financial Inclusion Plan for the years 2013 to 2016 for covering 3,232 villages in Karnataka with population below 2,000 as per census 2001 based on Gram Panchayat wise allocation of villages by SLBC. The Bank had earlier covered all 254 allotted villages with population above 2000 with BC outlets before 31.03.2012 and another 143 villages with population of 1,600 to 2,000 as part of extension of "Swabhiman" by 31.03.2013.
Further the Bank implemented the smart card based EBT Scheme in Chamarjanagar District, covering all the villages in the District in all the 4 taluks. The SSP Scheme is operational in the entire district, covering more than 53,000 beneficiaries. Apart from this, the Bank is participating in EBT program in Bellary and Chitradurga Districts in the allotted service area villages.
The Bank is also participating in the Direct Benefit Transfer Scheme of Government of India for direct credit of
benefits under Central Sponsored schemes in 43 Pilot Districts identified for this purpose by the Departments of
Financial Services, GOI. The Bank has Lead District responsibilities in two of these Pilot Districts (Tumkur & Mysore), wherein the Bank has been effectively discharging its overall responsibilities in implementing the scheme by all Banks.
Self Help Group (SHG)
Lending
The Bank has credit linked 6,790 groups with an advance amount of Rs. 3489.600 Millions, during the current year and taking the cumulative total of such credit linkage programme to 1,50,103 groups with a financial outlay of Rs.20416.200 Millions, upto 31st March 2013. These efforts of the Bank have been recognized and the Bank was awarded the 1st Best Bank Award instituted by NABARD under the Commercial Banks Category for its overall performance under SHG Bank Linkage Programme for the year 2010-11. The Bank has been the winner of either the 1st or the 2nd prize award since March 2000, continuously.
Regional Rural Banks
(RRB):
Kaveri Grameena Bank (KGB) the RRB sponsored by the Bank is having its Head Office at Mysore, and covers 10 districts viz. Mysore, Hassan, Chamarajanagar, Tumkur, Bangalore Urban, Bangalore Rural and Ramanagara. After amalgamation of Chickmagalur Kodagu Grameena Bank and Vishveshvaraiah Grameena Bank, three more districts are added viz. Chickmagalur, Kodagu and Mandya districts. Their total branch network is 331 branches. All the branches are functioning under CBS. The total deposits and advances of the KGB as on 31.03.2013 stood at Rs. 38450.000 Millions and Rs.30130.000 Millions, respectively.
NEW BUSINESS:
It is an initiative to introduce a comprehensive range of IT products and services in order to place their Bank in a pre-eminent position vis-ŕ-vis other Banks. The idea is to maximize business and minimize transaction cost. The products are customized to cater to the new generation as well as traditional customer.
Merchant Acquiring
Business (MAB):
It is the New Business initiative, which is a mechanism of facilitating payment for goods and services purchased through medium of a debit/ credit card, using Point of Sales (POS) machines. It is advantageous to the merchants since it involves cash-less and increased volume of sale. For the Acquiring Bank it signifies increase in CASA deposit and additional income from Merchants in the form of Merchant Discount Rate (MDR). Settlement of fund takes place through SBI Switch (for "on us" transactions), VISA/ MasterCard/NPCI Switch for "off us" transactions, on T+1 basis. Merchant Acquiring Business has been successfully launched by their Bank in various Merchant establishments. They propose to install 2,000 POS machines within FY 2013-14.
Cash Deposit Machine:
Cash Deposit Machines are designed to accept cash from customers using Debit Cards. It instantly gives credit to
the customer's a/c online. It helps in de-congesting the Single Window counters and also in migrating customers to electronic mode of cash deposit. They have deployed 4 CDMs and intend to deploy 30 more CDMs in the year 2013-2014.
Self Service Kiosk
(SSK):
Presently they have 40 Multi Functional Kiosks (MFK) in various places. They have undertaken to convert them into
SSKs with their improved features of pass book printing, fund transfer through NEFT/RTGS/GRPT by using ATM Debit Cards. They are also going to deploy 10 more SSKs in major centers in the coming year 2013-2014, and their total strength will be 50 SSKs.
They are going to introduce Business Debit cards for their Commercial Customers, in order to divert such transactions to the Alternate channels. Initially they plan to issue 5000 VISA Pride Business Debit Cards.
They have already a base on 300 Green Channel Counters (GCC) machines deployed in 153 branches. GCC is a device of paperless transactions by using ATM Debit cards in order to decongest the single window counters.
They propose to deploy 200 more GCC machines for their branches in the year 2013-2014.
Business Continuity
Planning:
In the backdrop of growing complexity of financial products and the increased leveraging of technology, operational risks have assumed critical importance in recent times. The treatment of operational risk as a distinct risk category along with credit and market risks in the Basel II framework is a manifestation of the significance of operational risk in impacting the risk profile of a Bank. Working in this direction their Bank has
· Adopted well defined IT Policy and IS Security Policy which is being periodically reviewed and updated,
· Become a part of well established state-of-the art IT infrastructure (Common for state Bank Group) which is certified as BS25999- 2:2007 by BSI.
Their Bank has taken proactive measures to respond to business discontinuities and ensure uninterrupted availability of all key business resources that support critical Banking functions. In this connection the Bank has adopted a well defined Business Continuity Plan and Disaster Recovery Plan Policy. Their Bank is part of well established very high-end Business continuity and Disaster Recovery infrastructure which ensures seamless continuity in case of need. The Disaster Recovery drill is being successfully conducted on a periodic basis during which the transactions of their branches are routed through the DR site. In addition to this, the Bank has a nearby site to ensure zero data loss in the event of a disaster. The Bank has implemented Business Continuity Plan in all the branches and also in the administrative offices with periodical reviews and updates.
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 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] 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.67.03 |
|
|
1 |
Rs.104.32 |
|
Euro |
1 |
Rs.88.24 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--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 |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
72 |
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.