MIRA INFORM REPORT
|
Report Date : |
22.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
CITY UNION BANK LIMITED (w.e.f. 02.11.1987) |
|
|
|
|
Formerly Known
As : |
THE KUMBAKONAM CITY UNION BANK LIMITED THE KUMBAKONAM BANK LIMITED |
|
|
|
|
Registered
Office : |
149, Big Street, Tanjore District, Kunbakonam – 612001, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
31.10.1904 |
|
|
|
|
Com. Reg. No.: |
18-001287 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 474.446 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65110TN1904PLC001287 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEC05180A |
|
|
|
|
PAN No.: [Permanent Account No.] |
PANAPPLIED |
|
|
|
|
Legal Form : |
Public Limited Liability Bank. The Bank’s Shares are Listed on the
Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in Banking Activities. |
|
|
|
|
No. of Employees
: |
3785 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 180000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behavior : |
Regular |
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|
|
|
Litigation : |
Exist |
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|
|
Comments : |
Subject is one of the oldest private sector banks in India. It is an
established bank having fine track. The banks possesses an average resource profile marked by adequate
capitalisation and comfortable asset quality. The ratings also take into consideration the above average earnings
along with the small sate of operations with operations mostly concentrated
in Southern India. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. In view of long standing experience of the promoters, 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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects positive
impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief information
officers at gathering in Bangalore in April to meet Indian startups at an event
called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Certificate of Deposits) |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
13.03.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED BY
Management Non Co-operative
Contact no.: 91-435-2402322
LOCATIONS
|
Registered Office/ Central Office : |
149, Big Street, Tanjore District, Kunbakonam – 612001, Tamilnadu,
India |
|
Tel. No.: |
91-435-2431622/ 2431412/ 2432322/ 2431510/
2432367 / 2401622 |
|
Fax No.: |
91-435-2431746 |
|
E-Mail : |
r.k.viswanathan@cityunionbank.in |
|
Website : |
|
|
|
|
|
International
Banking Division/
Service Branch : |
706, Anna
Salai Chennai – 600006, Tamilnadu, India |
|
Tel.
No.: |
91-44-28523152/
6535/ 4903 |
|
Fax
No.: |
91-44-28520359 |
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|
|
|
Branches : |
Located at:
|
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. S. Balasubramanian |
|
Designation : |
Chairman |
|
Qualification : |
M.Sc., CAIIB. PGDFM. |
|
|
|
|
Name : |
Dr. N. Kamakodi |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Qualification : |
B. Tech., MBA, CAIIB, Ph.D. |
|
|
|
|
Name : |
Mr. S Mahalingam |
|
Designation : |
Director |
|
Qualification : |
B.Com, A.C.A. |
|
|
|
|
Name : |
Mr. S. Bernard |
|
Designation : |
Director |
|
Qualification : |
B.Com., F.C.A. |
|
|
|
|
Name : |
Mr. N. Kantha Kumar |
|
Designation : |
Director |
|
Qualification : |
B.Com., L.L.B., CAIIB |
|
|
|
|
Name : |
Mr. R. G. Chandramogan |
|
Designation : |
Director |
|
Directorships in
other Companies : |
|
|
|
|
|
Name : |
Mr. T.K. Ramkumar |
|
Designation : |
Director |
|
Qualification : |
B.Com., B.L. |
|
|
|
|
Name : |
Justice S.R. Singharavelu |
|
Designation : |
Director |
|
Qualification : |
B.Sc., B.L. |
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|
|
|
Name : |
Mr. C.R. Muralidharan |
|
Designation : |
Director |
|
Qualification : |
B.Sc., CAIIB |
|
Directorships in
other Companies : |
|
|
|
|
|
Name : |
Prof. V. Kamakoti |
|
Designation : |
Director |
|
Qualification : |
B.E., M.S., Ph.D |
KEY EXECUTIVES
|
Name : |
Mr. R. Mohan |
|
Designation : |
Chief General Manager |
|
|
|
|
Name : |
Mr. S. Sekar |
|
Designation : |
Senior General Manager |
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|
|
|
Name : |
Mr. S. Sundar |
|
Designation : |
CFO and Senior General Manager |
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|
Name : |
Mr. T.S. Ramanujam |
|
Designation : |
General Manager |
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|
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|
Name : |
Mr. J. Kumar |
|
Designation : |
General Manager |
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|
|
|
Name : |
Mr. R. Venkatasubramanian |
|
Designation : |
General Manager |
|
Name : |
Mr. S. Balasubramanian |
|
Designation : |
Deputy General Manager |
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|
|
|
Name : |
Mr. S. Rajagopalan |
|
Designation : |
Deputy General Manager |
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|
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|
Name : |
Mr. K. Maharajan |
|
Designation : |
Deputy General Manager |
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|
Name : |
Mr. K.P. Sridhar |
|
Designation : |
Deputy General Manager |
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|
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|
Name : |
Mr. R. Sairam |
|
Designation : |
Deputy General Manager |
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|
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|
Name : |
Mr. R. Krishnan |
|
Designation : |
Deputy General Manager |
|
Name : |
Mr. V Ramesh |
|
Designation : |
Deputy General Manager |
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|
|
|
Name : |
Mrs. V Suguna |
|
Designation : |
Deputy General Manager |
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|
|
|
Name : |
Mr. DBVN. Sarath Chandrakumar |
|
Designation : |
Deputy General Manager |
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|
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|
Name : |
Mr. K.R.S. Vardhan |
|
Designation : |
Assistant General Manager |
|
Name : |
Mr. S. Venkatesan |
|
Designation : |
Assistant General Manager |
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|
|
|
Name : |
Mr. R. Subramanian |
|
Designation : |
Assistant General Manager |
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|
Name : |
Mr. S. Mohan |
|
Designation : |
Assistant General Manager |
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|
|
|
Name : |
Mr. R. Lakshminarayanan |
|
Designation : |
Assistant General Manager |
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|
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|
Name : |
Mr. P. Varadarajan |
|
Designation : |
Assistant General Manager |
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|
Name : |
Mr. V. Ganesan |
|
Designation : |
Assistant General Manager |
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|
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|
Name : |
Mr. K.R.S. Varadhan |
|
Designation : |
Assistant General Manager |
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|
Name : |
Mr. V.S. Srinivasan |
|
Designation : |
Assistant General Manager |
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|
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|
Name : |
Mr. V. Krishnamoorthy |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. R. Rajaraman |
|
Designation : |
Assistant General Manager |
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|
|
|
Name : |
Mr. S. Arumugam |
|
Designation : |
Assistant General Manager |
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|
|
|
Name : |
Mr. S.T. Chandrasekaran |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. S. Rajam |
|
Designation : |
Assistant General Manager |
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|
|
|
Name : |
Mr. S. Raja |
|
Designation : |
Assistant General Manager |
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|
|
|
Name : |
Mr. K. Panchapakesan |
|
Designation : |
Assistant General Manager |
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|
|
|
Name : |
Mr. M. Mounisamy |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. R. Subramanian |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. S. Ramesh |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. P. Thiagarajan |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. V.V. Kannan |
|
Designation : |
Assistant General Manager |
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|
|
|
Name : |
Mr. P. Ravi |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. A. Ragothaman |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. R. Rengarajan |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. R. Sankaran |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. J. Rajasekaran |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. C. Ganesan |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. J. Chandrasekar |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. V.S.S. Krishna Prasad |
|
Designation : |
Assistant General Manager |
|
Name : |
Mr. V.
Gopalakrishnan |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. R.
Uma |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. R.
Balaji |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. V.
Ramakrishnan |
|
Designation : |
Assistant General Manager |
|
|
|
|
Name : |
Mr. A.
Jaffer Ali |
|
Designation : |
Assistant General Manager |
|
Name : |
Mr. V. Ramesh |
|
Designation : |
Deputy General Manager and Company Secretary |
SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
14975767 |
2.78 |
|
|
1411744 |
0.26 |
|
|
25663142 |
4.76 |
|
|
117202259 |
21.75 |
|
|
159252912 |
29.55 |
|
|
|
|
|
|
68191742 |
12.65 |
|
|
|
|
|
|
171546760 |
31.83 |
|
|
98632062 |
18.30 |
|
|
41316382 |
7.67 |
|
|
1151527 |
0.21 |
|
|
93945 |
0.02 |
|
|
23437500 |
4.35 |
|
|
16633410 |
3.09 |
|
|
379686946 |
70.45 |
|
Total Public shareholding (B) |
538939858 |
100.00 |
|
Total (A)+(B) |
538939858 |
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) |
538939858 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Banking Activities. |
GENERAL INFORMATION
|
No. of Employees : |
3785 (Approximately) |
|
|
|
|
Bankers : |
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Jagannathan and Sarabeswaran Chartered Accountants |
|
Address : |
Chennai |
CAPITAL STRUCTURE
As on: 30.08.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.1/- each |
Rs.1000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
538939858 |
Equity Shares |
Rs.1/- each |
Rs.538.940 Millions |
|
|
|
|
|
As On 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.1/- each |
Rs.1000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
409951886 |
Equity Shares |
Rs.1/- each |
Rs.409.952 Millions |
|
128987972 |
|
Rs.0.50 /- each |
Rs.64.494 Millions |
|
|
Total |
|
Rs.474.446 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
CAPITAL AND
LIABILITIES |
|
|
|
|
Share Capital |
474.446 |
408.213 |
405.031 |
|
Reserves and Surplus |
15932.239 |
12022.756 |
9661.198 |
|
Deposits |
2030475.552 |
163407.562 |
129142.851 |
|
Borrowings |
4767.391 |
3487.027 |
1861.548 |
|
Other Liabilities & Provisions |
5549.194 |
4181.021 |
4844.560 |
|
|
|
|
|
|
Total |
2057198.822 |
183506.579 |
145915.188 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Cash and Balances with Reserve Bank of India |
10163.364 |
8146.661 |
10522.380 |
|
Balances with Banks & Money at Call and Short Notice |
7541.495 |
3214.432 |
2340.809 |
|
Investments |
52668.033 |
45861.924 |
36162.275 |
|
Advances |
152460.573 |
121374.603 |
92554.603 |
|
Fixed Assets |
1412.793 |
977.338 |
685.326 |
|
Other Assets |
5524.564 |
3931.621 |
3649.795 |
|
|
|
|
|
|
Total |
2057198.8222 |
183506.579 |
145915.188 |
|
|
|
|
|
|
Contingent Liabilities |
60434.404 |
97016.961 |
41622.199 |
|
Bills for Collection |
1657.982 |
3688.528 |
2896.770 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
|
I |
INCOME |
|
|
|
|
|
Interest Earned |
21887.500 |
16967.736 |
12184.076 |
|
|
Other Income |
2736.368 |
2071.344 |
1574.036 |
|
|
Total |
24623.868 |
19039.080 |
13758.112 |
|
|
|
|
|
|
|
II |
EXPENDITURE |
|
|
|
|
|
Interest Expended |
15647.397 |
11970.229 |
7983.792 |
|
|
Operating Expenses |
3741.997 |
2798.323 |
2164.008 |
|
|
Provisions and Contingencies |
2014.303 |
1468.010 |
1459.770 |
|
|
Total |
21403.697 |
16236.562 |
11607.570 |
|
|
|
|
|
|
|
III |
PROFIT / LOSS |
|
|
|
|
|
Net Profit |
3220.171 |
2802.518 |
2150.542 |
|
|
Profit brought forward |
66.021 |
55.613 |
55.547 |
|
|
Total |
3286.192 |
2858.131 |
2206.089 |
|
|
|
|
|
|
|
IV |
APPROPRIATIONS |
|
|
|
|
|
Statutory Reserves |
820.000 |
710.000 |
560.000 |
|
|
Capital Reserve |
19.026 |
0.006 |
0.020 |
|
|
General Reserve |
1420.000 |
1400.000 |
984.000 |
|
|
Investment Reserve Account |
3.378 |
7.296 |
0.000 |
|
|
Special Reserve under IT Act, 1961 |
400.000 |
200.000 |
205.000 |
|
|
Interim Dividend Payable |
474.446 |
0.000 |
0.000 |
|
|
Interim Dividend Tax Payable |
80.632 |
0.000 |
0.000 |
|
|
Proposed Dividend |
0.000 |
408.213 |
344.276 |
|
|
Dividend Tax thereon |
0.000 |
66.595 |
57.180 |
|
|
Balance carried over to Balance Sheet |
68.710 |
66.021 |
55.613 |
|
|
|
|
|
|
|
|
Total |
3286.192 |
2858.131 |
2206.089 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
405.031 |
408.213 |
474.446 |
|
Reserves & Surplus |
9,661.198 |
12,022.756 |
15,932.239 |
|
Net
worth |
10,066.229 |
12,430.969 |
16,406.685 |
|
|
|
|
|
|
Short term borrowings |
1,861.548 |
3,487.027 |
4,767.391 |
|
Total
borrowings |
1,861.548 |
3,487.027 |
4,767.391 |
|
Debt/Equity
ratio |
0.185 |
0.281 |
0.291 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Total Income |
13,758.112 |
19,039.080 |
24,623.868 |
|
|
|
38.384 |
29.333 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Total Income |
13,758.112 |
19,039.080 |
24,623.868 |
|
Profit |
2,150.542 |
2,802.518 |
3,220.171 |
|
|
15.63% |
14.72% |
13.08% |
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 |
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 |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
No |
|
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 |
LITIGATION DETAILS
CHENNAI COURT
CASE STATUS INFORMATION SYSTEM
|
Case Status: |
Pending |
|
Status Of: |
WRIT PETITION |
|
Case No.: |
1810 |
|
Year : |
2014 |
|
Petitioner : |
M.SANKAR GANESH
(MINOR) I YEAR |
|
Respondent : |
CITY UNION BANK |
|
Pet's Advocate : |
M/S.MUTHUMANI
DORAISAMI |
|
Res's Advocate : |
M/S.S.SETHURAMAN
FOR RESP |
|
Category : |
General
Miscellaneous |
|
|
Last Listed on:
No Date Mentioned |
|
Case Updated on
: |
February 6, 2014 |
No Connected Application(s)
No Connected
Matter(s)
TREASURY OPERATIONS
Forex Treasury
The
rupee which was at Rs. 50.68
against US dollar at the beginning of the year depreciated due to the twin
effects of slower growth of the domestic economy and the signs of positive growth
of the US economy. The rupee reached a peak of Rs.57.32
to an all time low but recouped later to reach the level of Rs. 54.30 at the end of
the year still being 8%lower than which was at the beginning of the year. The
two way movement facilitated active trading and the forex treasury took full
advantage of the movements in its proprietary as well as in merchant trading to
increase the profit to Rs.183.700
millions which is 20.70% higher than as compared with last year.
The
gross investments increased from
Rs.45940.000 millions as reported at the end of last
year to Rs.5,26.800 millions.
Out of these, the investments in Government Bonds alone amounted to Rs.45640.000 millions
which were made to maintain thestatutory reserve requirements on enlarged resources.
The G-Sec yields started declining gradually fromDecember 2012 onwards. The
Yield to Maturity (YTM) on the 10 year Government of India bond stood at 7.95%
ason 31.03.2013 as against 8.57% a year ago. Stock market indices, Sensex and
Nifty gained 8.20% and 7.30%respectively. During the year, the treasury
department handled the trading/investment functionsefficiently and earned a
profit of Rs.170.500 millions as
against Rs.77.700 millions in
the previous year.
FINANCIAL
INCLUSION
As informed in the last year report, the Bank has complied with RBI
directive on financial inclusion by covering all the 42 villages having
population of over 2000 by introducing ICT (Information, Communication and
Technology) based services within the
stipulated time. The Bank has also covered 58 villages out of 96 villages
allotted having population of over 1000 and below 2000 by introducing ICT based
services as on 31/03/2013 and the remaining 38 villages will be covered in the
FY 2013-14.
During the financial year ended 31.03.2013, Basic Savings Bank Deposits
Accounts numbering Rs 0.054 Millions were opened and Rs 0.040 Millions
Biometric Smart Cards were issued to the beneficiaries. SB linked overdraft
facility, micro insurance products, Electronic Benefit Fund Transfer (EBT)
payments have been extended to such account holders.
ECONOMIC SCENARIO
GLOBAL ECONOMY
Global prospects
have improved again but the road to recovery in the advanced economies will
remain uneven. The IMF in its survey titled World Economic outlook (Hopes,
Realities, and Risks) published in April2013 expects the global economy to grow
at 3.25% in 2013 and 4% in 2014. In major advanced economies, activity is
expected to gradually accelerate, following a weak start in 2013, with United
States in the lead. The euro zone crisis and fiscal cliff in US have been
successfully defused. However the old dangers remain and new risks have come to
the fore. In the short term, risks mainly relate to development in euro area
and in the medium term prolonged stagnation.
Most of the central
banks in the developed economies expanded their asset purchase program and kept
the irmonetary policies in expansionary mode by maintaining exceptionally low interest
rates in financial year 2012-13 in order to stimulate growth amid ongoing
fiscal austerity. The expansionary mode may head for pause or reversal process
in the year 2013 especially in the US. However, the low rate interest regime
will continue. The growth prospects of US appears to moderate and if it picks
up pace will act as stimulant to world economic growth. The Euro zone has
diffused major crisis but the simmering continues. The key to accelerating the
world growth depends on whether today's fast-growing, dynamic, low income
countries are likely to maintain their momentum and avoid the reversals that
afflicted many such countries in the past.
The economic
activity has stabilized in advanced economies and has picked up in emerging
markets and developing economies supported by policies and renewed business
confidence. It is the financial markets that have led the reacceleration in
activity. Since the second half of 2012 there have been broad markets rally.
Inflation pressure is projected to remain contained in emerging and developing
economies supported by lower metal and energy prices. The global inflation has
fallen to about 3.25% from 3.75% in early 2012 and is projected to stay around
this level through 2014.
The Reserve Bank of
India in its latest financial stability report published in June 2013 expect
the risks which have been building up over the last five years of excess
liquidity in the global system will surface now and the markets especially in
the emerging economies need to be prepared for spells of high volatility and
uncertainty going ahead.
The global
financial market is still fragile. It is disturbing to note that the Federal
Reserve acting alone can impact the market in broad, sweeping strokes. A mere
statement of intention of scaling back the bond purchase programme by US Fed
Chairman Ben Bernanke was more than enough to trigger a sell-off in the world
markets. Not a single asset remained unaffected including precious metal and
bonds. More than a trillion dollar has been wiped out from the World Capital
Markets on a single day.
INDIAN ECONOMY
The Indian economy
which was growing at a near double digit in the last few years saw the rate
coming down to6.2% in 2011-12 and to 5% in 2012-13 touching a decade low. The
growth remains subdued and recovery is multi-faced, says RBI. Policy actions in
advanced economies had reduced the risk of tail events. Macroeconomic risks
facing the economy have increased in the last six months, mainly on account of
current account deficit, performance of external and corporate sectors.
Domestic supply bottlenecks, policy uncertainty consequential dampened
investment sentiments and slackening of demand contributed significantly to the
slowdown. However the fall in inflation and the fiscal consolidation have
provided some relief. The stress point for the Indian economy is the current
account deficit as evident from the depreciation of rupee resulting from flight
of forex to safety triggered by apprehensions of global liquidity contracting
with Federal Reserve indicating a phased withdrawal from its bond purchasing
programme commencing later in 2013. Going forward the economy is expected to
grow at 5.70% for the year 2013-14.The growth rate projected by RBI is higher
than other BRICS nations excluding China.
A number of policy
measures such as liberalization of FDI policy, rationalization and
simplification of FII investment in debt market, deregulating interest rate on
NRE deposits etc have been taken to boost investor sentiments and augment
capital flows to address the stress point of current account deficit triggered
by surging gold and oil imports. Additional measures were taken to curb the
demand for gold including raising of import duty, curb on imports by banks and
restriction on lending against gold coins to name a few. On the fiscal front,
high fiscal deficit, which is another area of concern for the economy, efforts
were taken to bring down the same. The deficit which was projected to be at
5.20% of the GDP for the year 2012-13 has been estimated to be 4.90% and has
been pegged at 4.80% for the next year.
The headline
inflation moderated to an average of 7.30% for the year 2012-13 compared to
8.90% in the previous year. Notwithstanding the moderation in overall
inflation, the food inflation and the fuel inflation were near the double digit
numbers. The inflation for the year 2013-14 is projected to be 5.50%.The gross
domestic savings as a proportion to GDP has fallen from 36.80% to 30.80% in
2011-12 due to decline in reduction in savings by house hold. The house hold
saving which was 11.60% of the GDP came down to 8% in the corresponding period.
A clear shift from financial assets to real estate and gold was witnessed.
Inflation and negative/low real interest were the major reasons for the fall in
house hold savings.
The liquidity
conditions in the banking system exhibited mixed trend of tightness and
comfort. The comfort zone of +/-1% of the NDTL of the banking system was
breached on a number of occasions prodding RBI intervention. The liquidity
conditions were much tighter in the second half as compared to the first half
of FY 2012-13.
OUTLOOK
The
outlook for Indian economy for the FY 14 is expected to show mild improvement
and estimated to grow around 6%. The average WPI inflation is estimated to moderate
.The Government has also budgeted for are duction in fiscal deficit to 4.80% of
GDP in FY 14 over and above the number of 4.90% achieved in FY13compared to the
budgeted estimate of 5.20%.Assuming a normal monsoon agriculture growth which
suffered from a deficient monsoon in 2012 is expected to recover from 1.80% in
FY 13 to 3.50% in FY 14. Industry growth that fell to an 11 year low of 3.10%
in FY 13 is expected to show an improvement to reach the level of 5.50% in FY
14 as the impact of past monetary easing unfolds gradually and with government
adopting a reformist policy to remove the hurdles in the path for increasing
investments. The Bank has an ambitious plan of adding 125 more branches and 300
more ATMs to garner a higher percentage of growth in the coming years.
CONTINGENT
LIABILITIES
|
Particular |
31.03.2013 |
31.03.2012 |
|
Claims against Bank not acknowledged as debts |
22.870 |
13.612 |
|
Liability for partly paid Investments |
0.000 |
0.000 |
|
Liability on account of outstanding Forward Exchange Contracts |
44964.471 |
82831.884 |
|
Guarantees given on behalf of constituents - In India |
9369.706 |
7977.180 |
|
- Outside India |
40.544 |
94.247 |
|
Acceptances, endorsements and other obligations |
54428.8223 |
6100.038 |
UNAUDITED
FINANCIAL RESULTS FOR THE PERIOD ENDED 31ST DECEMBER, 2013
(Rs. In Millions)
|
|
Particulars |
Quarter ended |
Period ended |
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
Reviewed |
Reviewed |
Reviewed |
|
1. |
Interest earned (a+b+c+d) |
6461.315 |
6403.989 |
19105.068 |
|
|
a) Interest/Discount on
Advances/Bills |
5326.940 |
52204.12 |
15724.886 |
|
|
b) Income on Investments |
11128.58 |
11101.78 |
3248.068 |
|
|
c) Interest on balances
with RBI and other Inter Bank funds |
21.517 |
733.99 |
132.114 |
|
|
d) Others |
0.000 |
0.00 |
0.00 |
|
2. |
Other Income |
647.663 |
6174.19 |
2103.559 |
|
3. |
Total
Income ( 1 + 2 ) |
7108.978 |
70214.08 |
21208.627 |
|
4. |
Interest Expended |
4485.949 |
45055.68 |
133577.84 |
|
5. |
Operating Expenses (i) +
(ii) |
1276.531 |
11079.63 |
3480.787 |
|
|
(i) Employees Cost |
527.480 |
4000.64 |
1382.967 |
|
|
(ii) Other Operating
expenses |
749.051 |
7078.99 |
2097.820 |
|
6. |
Total
Expenditure (4) + (5) excluding provisions and contingencies |
5762.480 |
5613.531 |
16838.571 |
|
7. |
Operating
Profit before provisions and contingencies (3)
- (6) |
1346.498 |
1407.877 |
4370.056 |
|
8. |
Provisions (other than
tax) and contingencies |
290.667 |
881.821 |
1377.788 |
|
9. |
Exceptional Items |
0.00 |
0.00 |
0.00 |
|
10. |
Profit / (Loss) from
Ordinary Activities before tax (7)-(8)-(9) |
10558.31 |
526.056 |
2992.268 |
|
11. |
Tax Expenses |
1650.00 |
-3175.00 |
355.000 |
|
12. |
Net
Profit / (Loss) from Ordinary Activities after tax (10)
- (11) |
890.831 |
843.556 |
2637.268 |
|
13. |
Extra ordinary items (Net
of Tax Expense) |
0.00 |
0.00 |
0.00 |
|
14. |
Net Profit / (Loss) for the period (12) +
(13) |
890.831 |
843.556 |
2637.268 |
|
15. |
Paid up equity share
Capital (Face value of Re.1/- each) |
538.828 |
537.904 |
538.828 |
|
16. |
Reserves excluding
revaluation reserves |
|
|
|
|
17. |
Analytical
ratios |
|
|
|
|
|
i) % of shares
held by Government of India |
Nil |
Nil |
Nil |
|
|
ii) Capital Adequacy
Ratio (%) - Basel II |
13.61% |
14.34% |
13.61% |
|
|
ii) Capital Adequacy
Ratio (%) - Basel III |
13.55% |
14.28% |
13.55% |
|
|
iii) Earning Per Share
(EPS) |
|
|
|
|
|
Basic EPS - before/after
extra ordinary items (Not annualised) (Rs.) |
1.65 |
1.62 |
5.16 |
|
|
Diluted EPS -
before/after extra ordinary items (Not annualised) (Rs.) |
1.64 |
1.61 |
5.12 |
|
|
iv) NPA Ratios |
|
|
|
|
|
(a) Gross NPA |
2689.088 |
2631.884 |
2689.088 |
|
|
(b) Net NPA |
1392.581 |
1310.964 |
1392.581 |
|
|
(c) % of Gross NPA |
1.70 |
1.66 |
1.70 |
|
|
(d) % of Net NPA |
0.89 |
0.83 |
0.89 |
|
|
v) Return on Assets - Annualised |
1.47% |
1.40% |
1.47% |
|
18. |
Public Shareholding |
|
|
|
|
|
- No. of shares |
53,89,39,858 |
53,89,39,858 |
53,89,39,858 |
|
|
- % of shareholding |
100% |
100% |
100% |
|
19. |
Promoters and promoter
group shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of Shares |
- |
- |
- |
|
|
- % of shares (as a % of the total
shareholding of promoter and
promoter group) |
- |
- |
- |
|
|
- % of shares (as a % of the total share
capital of the company) |
- |
- |
- |
|
|
b) Non-encumbered |
|
|
|
|
|
- Number of Shares |
- |
- |
- |
|
|
- % of shares (as a % of the total
shareholding of promoter and
promoter group) |
- |
- |
- |
|
|
- % of shares (as a % of the total share
capital of the company) |
- |
- |
- |
Notes :
1 The above unaudited financial results have been subjected to Limited Review by Statutory Central Auditors and approved by the Board of Directors at its meeting held on 06.02.2014.
2 The working results for the period ended 31st December 2013 have been arrived at after making provisions for Standard Assets, Non-Performing Assets and Depreciation on Investments as per RBI guidelines, Employee benefits, taxes & other usual and necessary provisions on estimated basis.
3. The figures of previous quarter / period have been regrouped, wherever necessary to conform to the classification in the current period.
4 As per RBI circular DBOD.No.BP.BC.88/21.06.201/2012-13 dated March 28, 2013, banks have been advised to disclose Capital Adequacy Ratio computed under Basel III regulations from the quarter ended 30th June 2013. Accordingly, corresponding details for previous year / period are not applicable.
5 In accordance with RBI circular DBOD.No.BP.BC.2/21.06.201/2013-14 dated 1st July 2013, banks are required to make half yearly Pillar 3 disclosures under Basel III capital regulations. The disclosures are being made available on the Bank's website. The disclosures outside the purview of limited of the Statutory Central Auditors of the Bank.
6 The Provision Coverage Ratio is at 70% for the period ended 31st December 2013.
7 There has been no change in the accounting policies followed by the bank during the period ended December 2013 as compared to those disclosed in the preceeding financial year ended 31st March 2013.
8 Number of investor complaints pending at the beginning of the quarter - Nil. Received during the period - 2 : Disposed of during the period - 2 : Pending complaints as on 31.12.2013 : Nil
SEGMENTWISE RESULTS
(Rs. In Millions)
|
Particulars |
Quarter ended |
Half Year ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
Reviewed |
Reviewed |
Reviewed |
|
Segment Revenue |
|
|
|
|
a) Treasury |
1267.800 |
1308.200 |
3786.100 |
|
b) Corporate / wholesale banking |
1631.100 |
1438.700 |
5118.200 |
|
c) Retail Banking |
4191.800 |
4263.100 |
12250.300 |
|
d) Other Banking Operations |
18.300 |
11.400 |
54.000 |
|
Total |
7109.000 |
7021.400 |
21208.600 |
|
|
|
|
|
|
Segment Results |
|
|
|
|
a) Treasury |
231.400 |
296.500 |
760.400 |
|
b) Corporate / wholesale banking |
109.200 |
181.500 |
996.600 |
|
c) Retail Banking |
994.700 |
924.100 |
2578.300 |
|
d) Other Banking Operations |
11.200 |
5.800 |
34.800 |
|
Total |
1346.500 |
1407.900 |
4370.100 |
|
|
|
|
|
|
Operating Profit |
1346.500 |
1407.900 |
4370.100 |
|
|
|
|
|
|
Other Provisions
& Contingencies |
290.700 |
881.800 |
1377.800 |
|
|
|
|
|
|
Profit Before Tax |
1055.800 |
526.100 |
2992.300 |
|
|
|
|
|
|
Taxes including Deferred Tax |
165.00 |
(317.500) |
355.000 |
|
|
|
|
|
|
Net Profit |
890.800 |
843.600 |
2637.312 |
|
|
|
|
|
|
Segmental Assets: |
|
|
|
|
a) Treasury |
72896.400 |
71873.200 |
72896.400 |
|
b) Corporate / wholesale banking |
53545.900 |
51180.400 |
53545.900 |
|
c) Retail Banking |
111537.100 |
113038.400 |
111537.100 |
|
d) Unallocated |
6711.700 |
6495.500 |
6711.700 |
|
Total |
244691.100 |
242587.500 |
244691.100 |
|
|
|
|
|
|
Segmental Liabilities: |
|
|
|
|
a) Treasury |
69921.300 |
70271.300 |
69921.300 |
|
b) Corporate / wholesale banking |
48983.800 |
46619.200 |
48983.800 |
|
c) Retail Banking |
102015.700 |
102964.100 |
102015.700 |
|
d) Unallocated |
3438.700 |
3310.600 |
3438.700 |
|
Total |
224359.500 |
223165.200 |
2243595 |
|
|
|
|
|
|
Capital Employed: |
|
|
|
|
Segment Assets - Segment Liabilities |
|
|
|
|
a) Treasury |
2975.100 |
1601.900 |
2975.100 |
|
b) Corporate / wholesale banking |
4562.100 |
4561.200 |
4562.100 |
|
c) Retail Banking |
9521.400 |
10074.300 |
9521.400 |
|
d) Unallocated |
3273.00 |
3184.900 |
3273.000 |
|
Total |
20331.600 |
19422.300 |
20331.600 |
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.60.28 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.83.74 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.