MIRA INFORM REPORT
|
Report Date : |
18.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
BANK OF INDIA |
|
|
|
|
Registered
Office : |
Oriental
Building, Espanade Road, Mumbai - 400051, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
07.09.1906 |
|
|
|
|
Com. Reg. No.: |
11-000243 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.6430.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U99999MH1906PLC000243
|
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Banking and
Financial Services. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (81) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
Maximum Credit Limit : |
USD 1196900000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an old and well-established bank having an excellent track
record. The Government of India holds 64.11% stake in the bank. The financial position of the company is sound and healthy. Trade
relations are reported as trustworthy. Business is active. Payment terms are
regular and as per commitments. The bank can be considered excellent for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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 |
ICRA |
|
Rating |
AAA (Lower Tier II bonds ) |
|
Rating Explanation |
High degree of safety and lowest credit
risk. |
|
Date |
February 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
AA+ (Innovative perpetual debt instruments) |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
February 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a
defaulter in the publicly available RBI Defaulters’ list and the details of the
same are as under :
CHARGES
|
|
PERSON |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY ACTION(S) / DATE OF ORDER |
FURTHER DEVELOPMENTS |
||
|
|
RBI |
DID NOT COMPLY WITH “KNOW YOUR CUSTOMER” NORMS IN OPENING AND/OR
OPERATING THE ACCOUNTS |
IMPOSED PENALTY RS.3,00,00,000 |
|
||
|
|
IRDA |
NOT APPLIED FOR RENEWAL OF REGISTRATION |
CAUTIONED INSURERS AND GENERAL PUBLIC NOT TO TRANSACT ANY
GENERAL INSURANCE BUSINESS WITH THE AGENT |
|
||
|
|
CBI |
SANCTIONED AND DISBURSED EXPORT PACKING CREDIT FACILITIES AND FOREIGN BILL PURCHASE FACILITIES USING FORGED DOCUMENTS |
RIGOROUS IMPRISONMENT FOR THREE YEARS AND FINE OF RS.1.50
LACS |
|
||
|
|
NSDL |
HIGH PENDING DEMAT REQUESTS |
PUT UP ON NSDL WEBSITE FOR PUBLIC NOTICE |
NOT APPEARING IN THE LIST DATED 15/04/2011 |
||
|
|
CDSL |
HIGH PENDING DEMAT REQUESTS |
PUT UP ON CDSL WEBSITE FOR PUBLIC NOTICE |
NOT APPEARING IN THE LIST DATED 16/04/2011 |
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
Management Non Co-Operative (91-22-66684444)
LOCATIONS
|
Registered Office : |
Oriental
Building, Espanade Road, Mumbai - 400051, Maharashtra, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
Star House, C-5,
G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra,
India |
|
Tel. No.: |
91-22-66685616/ 66684450/ 66684444 |
|
Fax No.: |
91-22-66684503/ 66684789 |
|
E-mail : |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mrs. V.R. Iyer |
|
Designation : |
Chairperson and Managing Director |
|
|
|
|
Name : |
B.P. Sharma |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Arun Shrivastava |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
R. Koteeswaran |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Anup Wadhawan |
|
Designation : |
Director |
|
|
|
|
Name : |
S. S. Barik |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Neeraj Bhatia |
|
Designation : |
Director |
|
|
|
|
Name : |
K. K. Nair |
|
Designation : |
Director |
|
|
|
|
Name : |
R. L. Bishnoi |
|
Designation : |
Director |
|
|
|
|
Name : |
P. M. Sirajuddin |
|
Designation : |
Director |
|
|
|
|
Name : |
Pramod Bhasin |
|
Designation : |
Director |
|
|
|
|
Name : |
Umesh Kumar Khaitan |
|
Designation : |
Director |
|
|
|
|
Name : |
A. M. Pereira |
|
Designation : |
Director |
KEY EXECUTIVES
|
General Managers : |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
428367513 |
66.70 |
|
|
428367513 |
66.70 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
428367513 |
66.70 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
6489438 |
1.01 |
|
|
1186137 |
0.18 |
|
|
91818107 |
14.30 |
|
|
65181558 |
10.15 |
|
|
164675240 |
25.64 |
|
|
|
|
|
|
10521843 |
1.64 |
|
|
|
|
|
|
34406687 |
5.36 |
|
|
1776320 |
0.28 |
|
|
2515410 |
0.39 |
|
|
160200 |
0.02 |
|
|
2355210 |
0.37 |
|
|
49220260 |
7.66 |
|
Total Public
shareholding (B) |
213895500 |
33.30 |
|
Total (A)+(B) |
642263013 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
642263013 |
0.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the Shareholder |
Details of Shares held |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
|||
|
1 |
President of India |
42,83,67,513 |
66.70 |
66.70 |
|
|
Total |
42,83,67,513 |
66.70 |
66.70 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
1 |
Life Insurance Corporation of India |
75942452 |
11.82 |
11.82 |
|
|
2 |
Lazard Asset Management LLC A/c Lazard |
22268418 |
3.47 |
3.47 |
|
|
|
Total |
98210870 |
15.29 |
15.29 |
Shareholding
belonging to the category "Public" and holding more than 5% of the
Total No. of Shares
|
Sl. No. |
Name(s) of the shareholder(s) and the Persons Acting in
Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
1 |
Life Insurance Corporation of India |
75942452 |
11.82 |
11.82 |
|
|
|
Total |
75942452 |
11.82 |
11.82 |
Details of Locked-in
Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares |
Locked-in Shares as % of |
|
1 |
President of India |
42,83,67,513 |
66.70 |
|
|
Total |
42,83,67,513 |
66.70 |
BUSINESS DETAILS
|
Line of Business : |
Banking and
Financial Services. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|
|
|
|
Bankers : |
Reserve Bank of
India |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Chartered Accountants
Chartered Accountants
Chartered Accountants
Chartered Accountants
Chartered Accountants
Chartered Accountants |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Associates : |
|
|
|
|
|
Joint Venture : |
Star Union Dai–Ichi Life Insurance Company Limited |
CAPITAL STRUCTURE
As on: 31.03.2014
Authorised Capital : Not Available
Issued, Subscribed & Paid-up Capital : Rs. 6430.000 Millions
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
CAPITAL & LIABILITIES
|
|
|
|
|
Capital |
6430.000 |
5966.400 |
5745.195 |
|
Reserves & Surplus |
292800.800 |
233215.100 |
203872.653 |
|
Deposits |
4769740.500 |
3818395.900 |
3182160.332 |
|
Borrowings |
484275.100 |
353675.800 |
321142.250 |
|
Other Liabilities & Provisions |
178655.600 |
114773.900 |
132434.284 |
|
|
|
|
|
GRAND
TOTAL
|
5731902.000 |
4526027.100 |
3845354.714 |
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash & Balances with Reserve Bank of |
190734.400 |
219670.400 |
149867.100 |
|
Balances with Banks & Money at Call
& Short Notices |
423088.500 |
328688.200 |
197245.445 |
|
Investments |
1141524.400 |
946134.200 |
867535.861 |
|
Advances |
3707335.400 |
2893675.000 |
2488333.442 |
|
Fixed Assets |
57860.600 |
28701.300 |
27715.922 |
|
Other Assets |
211358.700 |
109158.000 |
114656.944 |
|
|
|
|
|
GRAND TOTAL
|
5731902.000 |
4526027.100 |
3845354.714 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
|
INCOME |
|
|
|
|
|
Interest Earned |
379101.000 |
319089.300 |
284806.664 |
|
|
Other Income |
42918.400 |
37660.400 |
33211.732 |
|
|
TOTAL |
422019.400 |
356749.700 |
318018.396 |
|
|
|
|
|
|
|
|
EXPENDITURE |
|
|
|
|
|
Interest expended |
270795.700 |
228849.400 |
201672.330 |
|
|
Operating Expenses |
66994.600 |
53315.600 |
49406.581 |
|
|
Provisions & Contingencies |
48778.600 |
45021.200 |
40164.330 |
|
|
TOTAL |
386568.900 |
327185.800 |
291243.241 |
|
|
|
|
|
|
|
|
PROFIT |
|
|
|
|
|
Profit/Loss before
Tax |
35450.500 |
29563.900 |
26775.155 |
|
|
Tax |
8157.800 |
2070.400 |
0.000 |
|
|
Profit / Loss after
Tax |
27292.700 |
27493.500 |
26775.155 |
|
|
|
|
|
|
|
|
APPROPRIATION |
|
|
|
|
|
Transfer to statutory reserve |
27292.700 |
27493.500 |
6693.789 |
|
|
Transfer to revenue reserve |
7000.000 |
6873.400 |
12852.324 |
|
|
Transfer to capital reserve |
0.000 |
0.000 |
101.223 |
|
|
Transfer from/ to special reserve - Currency
swap |
16537.400 |
13649.200 |
31.941) |
|
|
Transfer to Government/proposed dividends |
3755.300 |
6970.900 |
0.000 |
|
|
Final dividend (including dividend tax) |
0.000 |
0.000 |
4659.760 |
|
|
Special reserve u/s Sec 36(1) (viii) of income
tax act, 1961 |
0.000 |
0.000 |
2500.000 |
|
|
Total |
54585.400 |
54987.000 |
26775.155 |
|
|
|
|
|
|
|
|
Earnings Per Share (Rs.) |
44.74 |
47.79
|
48.98 |
FINANCIAL ANALYSIS
[all figures are in
Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
5745.195 |
5966.400 |
6430.000 |
|
Reserves & Surplus |
203872.653 |
233215.100 |
292800.800 |
|
Net
worth |
209617.848 |
239181.500 |
299230.800 |
|
|
|
|
|
|
Borrowings |
321142.250 |
353675.800 |
484275.100 |
|
Total
borrowings |
321142.250 |
353675.800 |
484275.100 |
|
Debt/Equity
ratio |
1.532 |
1.479 |
1.618 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Total Income |
318018.396 |
356749.700 |
422019.400 |
|
|
|
12.179 |
18.296 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Total Income |
318018.396 |
356749.700 |
422019.400 |
|
Profit |
26775.155 |
27493.500 |
27292.700 |
|
|
8.42% |
7.71% |
6.47% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT
MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE
|
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
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 |
|||||||
|
Bench:- Bombay |
|||||||
|
Stamp No:- |
WPL/212/2014 |
Failing Date:- |
27/01/2014 |
Reg. No.:- |
WP/598/2014 |
Reg. Date:- |
26/02/2014 |
|
Petitioner:- |
MADHAVPURA MERCANTILE CO-OPERATIVE BANK LIMITED THROUGH LIQUIDATOR OF MMCB |
Respondent:- |
BANK OF INDIA 19 ORS |
||||
|
Petn.Adv:- |
DEVANSHU PRAVINBHAI DESAI (I3439) |
Resp.Adv:- |
M. V. KINI AND COMPANY (841) |
||||
|
District:- |
MUMBAI |
||||||
|
Bench:- |
DIVISION |
Category:- |
WRIT PETITION(OTHERS) |
||||
|
Status:- |
Pre-Admission |
Stage:- |
FOR ADMISSION - FRESH [ORIGINAL SIDE MATTERS] |
||||
|
Next Date:- |
HON'BLE SHRI JUSTICE S.J. VAZIFDAR HON'BLE SHRI JUSTICE A. K. MENON |
Stage:- |
FOR ADMISSION - FRESH [ORIGINAL SIDE MATTERS] |
||||
|
|
HON'BLE SHRI JUSTICE S.J. VAZIFDAR
|
|
|
||||
|
Last Date:- |
12/06/2014 |
||||||
|
Last Coram:- |
HON'BLE SHRI JUSTICE S.J. VAZIFDAR HON'BLE SHRI JUSTICE A. K. MENON |
||||||
|
|
|||||||
|
Act:- |
Debt Tribunal Recovery Act |
||||||
PERFORMANCE HIGHLIGHTS - FINANCIAL PARAMETERS
·
Total Business (Deposit +
Advances) increased to Rs.8532020.000 Millions reflecting a growth of 26.44 %
(y-o-y).
·
Operating Profit and Net
Profit were Rs.84230.000 Millions and Rs.27290.000 Millions respectively.
Operating Profit registered a growth of 12.94% over last year.
·
Credit Deposit Ratio
stood at 78.88 % as against 76.73 % during last year.
·
Retail Credit posted a
growth of 32.44 % constituting 11.20% of the Bank’s Gross Domestic Credit in FY
14.
·
MSME Credit posted a
growth of 21.09 % constituting 17.06% of the Bank’s Gross Domestic Credit in FY
14.
·
Net Interest Margin (NIM)
for Global Operations are 2.34 % and for domestic Operations are 2.85 % during
FY 14.
·
Net NPA to Net Advances
stood at 2.00 % as against 2.06 % during last year.
·
Capital Adequacy Ratio
(CRAR) as per Basel III stood at 9.97%.
·
Net Worth improved to
Rs.245430.000 Millions registering a rise of 13.52% over last year.
·
Book Value improved to
Rs.3875.3000 Millions from Rs.362370.000 during last year.
·
Business Per Employee
moved up to Rs.19630.000 Millions from Rs.158.200 Millions during last year
SEGMENT- WISE PERFORMANCE
The Bank earned an Operating Profit of
Rs.84230.000 Millions during the financial year 2013-14. The contribution made
to Net Profit by Treasury operations was Rs.16280.000 Millions, wholesale
Banking was Rs.12710.000 Millions and Retail Banking was Rs.9320.000 Millions.
The Bank earned a profit after Tax (PAT) of Rs.27290.000 Millions, after
deducting Rs.2860.000 Millions of unallocated expenditure and Rs.8160.000
Millions towards provision for tax.
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL ECONOMIC SCENARIO:
The economic growth in the emerging markets
like India and in the developed economies like the USA and the Euro region
continues to present divergent scenarios. The growth in India was 4.5 per cent
in the financial year 2013-14, mainly on improved performance in the
agriculture and allied sectors and the overall growth in emerging markets as
per International Monetary Fund (IMF) was about 4.50 to 5 per cent. The average
growth of 4.50 to 5.50 per cent is likely to continue in 2014-15 in the
emerging markets backed by solid domestic demand, recovery in exports, and
supportive fiscal, monetary and financial conditions. Commodity prices will
continue to boost growth in many low-income countries, including those in
sub-Saharan Africa.
OUTLOOK FOR FY 2014-15
Estimates by various agencies predicted
average growth rate to be around 5.50 per cent in 2014-15, up from average 4.70
per cent in 2013-14. Slow industrial growth in 2013-14 is likely to improve and
pick up during 2014-15. Economy seems to have bottomed out but with structural
bottlenecks to be overcome, it is yet to reach its potential.
An Asian Development Bank report has stated
that there are weaknesses in terms of persistent inflation, fiscal imbalances,
bottlenecks to investment, and inefficiencies that need structural reforms.
Growth would have to be led by improved investment and consumption. Inflation
will have to be contained or else a continuance of tight monetary stance is
inevitable.
BANKING INDUSTRY – DEVELOPMENTS OUTLOOK
The growth of the banking sector is very
closely linked to the growth of Indian economy which is estimated to grow at a
rate of 5.5-6 per cent between 2015 to 2016. The banking industry will benefit
from economic expansion and conducive government policies to shield the economy
from ups and downs in the global economy and geo-political disturbances.
Further, as per capita income grows and awareness about banking spreads, more
populace comes to the banking fold.
BUSINESS REVIEW
DEPOSITS
Bank’s total Deposits increased by
Rs.951340.000 Millions to Rs.4769740.000 Millions during the year and recording
a growth of 24.91%. The growth in domestic deposits was to the tune of
Rs.695230.000 Millions or 23.64 % over previous year.
Savings Bank deposits grew by 13.12% and
Current deposits logged a growth of 9.31%. The share of Low cost deposits
(CASA) comprising of Savings and Current deposits to total domestic deposits is
29.97%. The Bank has a well diversified deposit base with 12% of domestic
deposits coming from rural areas, 13% from semi urban, 18% from urban and 57%
from metro areas. The bank’s total clientele base of 77.34 million consisted of
71.95 million depositors and 5.39 million borrowers as on 31st of March, 2014
ADVANCES
Bank’s gross advances increased by
Rs.832600.000 Millions to Rs.3762280.000 Millions during the year and recording
a growth of 28.42%. The Gross Domestic Credit of the Bank registered a growth
of 29.52 % from Rs.2040360.000 Millions on 31.03.2013 to Rs.2642600.000
Millions on 31.03.2014 as against the growth rate of 14.66 % in the last
financial year 2012-13. Incremental credit disbursement to new and existing
accounts in Public Sector Units and Public Sector Entities and NBFCs has
contributed in higher growth.
Timely sanctions and prompt disbursements in
Large Corporate, Mid Corporate, Retail, SME and Agriculture segments have been
instrumental in substantial credit growth.
The Bank also set up a New Business Department
during the year to help in new customer acquisition and augment quality credit
growth.
Bank added 164 New Corporate customers during
the financial year. Bank caters to specialised needs of Corporate/Mid corporate
through 10 Large Corporate Banking Branches, 41 Mid Corporate Branches. The
needs of other clients from Retail, SME and Agriculture are met through the
Network of 4,646 Domestic branches. Bank’s 56 Overseas Centres across 5
continents also caters to credit requirement of exporters and overseas clients.
INFRASTRUCTURE FINANCE
During the year, Bank sanctioned Fund Based
Limit of Rs.166260.000 Millions and Non Fund Based Limit of Rs.43670.000
Millions under infrastructure projects in New and Existing accounts covering
Power, Telecommunication, Roads, Ports and other infrastructure.
Bank continued to provide support in this
segment with additional disbursement of Rs.88630.000 Millions of which 52 % has
been to Power sector and 28 % has been to Road and Port Projects.
CORPORATE CREDIT
Bank is extending credit to Corporate Customers
through specialized branches which contribute 54 % of Gross Domestic Credit. 10
Large Corporate Branches Located at Major Cities and catering to all the major
corporates across country at– Mumbai, New Delhi, Kolkata, Chennai, Bangalore,
Hyderabad, Ahmedabad and Pune. Mid Corporate Branches covers rest of major
business centers including above.
For serving corporates at other centres, 21
SME City Centres are equipped with Credit Processing Cells with direct
reference to Large Corporate Credit Department at Head Office
LARGE CORPORATE
The advances through Large Corporate Branches
constitutes 41 % share in total domestic advances as on 31.03.2014. Advances to
Corporate segment through LCBs has increased from Rs.840470.000 Millions as on
31.03.2013 to Rs.1106510.000 Millions as on 31.03.2014, showing a growth of
31.65 % over last year.
MID CORPORATE
Mid Corporate vertical contributes 12.91 % of
the total domestic Credit portfolio. During the FY 2013-14, total Credit under
Mid Corporate Branches grew from Rs.309490.000 Millions to Rs.349230.000
Millions registering a growth of 12.84%.
NEW BUSINESS
During a short period of 3 months, the
department has been successful in establishing relationships with large number
of Public and Private sector enterprises. There has been a quantum jump in
disbursements to leading Public Sector companies. As a Medium Term plan, New
Business Department has embarked upon a plan to acquire substantial number of
new clients in Mid and Large corporate segment. Department has shortlisted
around 950 corporates after analyzing their financials and circulated the list
to all the Mid and Large Corporate branches and to Zonal Offices for
establishing initial contact, depending upon the geographical presence of the
corporates. As a next step, the department shall provide all logistics support
to branches/zones by meeting the prospective clients, understanding their needs
and structuring the products as per their requirements. Going forward,
department also proposes to undertake Syndication and Project Finance business
to increase the fee based income of the bank.
FOREX BUSINESS
The Forex business handled by the Bank has
shown decent growth on the back of need for foreign exchange from exporters and
importers. During the year 2013-14, Merchant and Interbank turnover was
Rs.2037200.000 Millions and Rs.4991870.000 Millions respectively. The Bank
continues to be a leading player in the forex market. The aggregate turnover of
Bank’s treasury Branch during the year was Rs.7029070.000 Millions.
TREASURY OPERATIONS
The Bank continues to play an active role in
all segments of the market- Funds, Forex and Bonds during 2013-14. The Bank has
churned its investments portfolio and earned profit from trading and sale of
securities by taking advantage of the G sec rate movements. Bank has registered
78.08 % growth in profit from sale of securities in
FY 2013-14 as compared to FY 2012-13. Bank has
taken advantage of arbitrage opportunity within various market segments and
could place the excess rupee funds in Certificate of deposits (CD), buy /sell
foreign currency swaps, term money markets there by earning a spread of 1 % to
1.50 %. The Bank has built up a portfolio of Rs.3640.000 Millions in CDs by
borrowing in CBLO/Repo against ‘T’ Bills and surplus securities thereby earning
a spread of approximately 0.25% to 0.75%.
RURAL BANKING - PRIORITY SECTOR ADVANCES:
Priority sector advances have wide social
ramifications apart from presenting a big business opportunity. With its vast
network of rural and semi-urban branches and committed personnel, the Bank has
always been one of the leaders in servicing to the priority and agriculture
sectors. The Bank has registered an outstanding level of Rs.820210.000 Millions
under Priority Sector which is 40.45 % of Adjusted Net Bank Credit (ANBC).
Under Special Agricultural Credit Plan, Bank
could disburse Rs.191300.000 Millions during the financial year 2013-14.
FINANCIAL INCLUSION
The progress under Financial Inclusion Plan
(FIP) in 2013-14 is:-
• No. of Basic Savings Bank Deposit Accounts
opened : 107.28 lakhs
• No. of Smart Cards issued : 22.68 lakhs
• GCC/KCC issued : 22.10 lakhs
• Business Correspondents engaged : 6072
• Channel Management Partners engaged : 105
• No. of Villages where 100% FI achieved :
14060
The Bank has achieved 100% Financial Inclusion
in all 4,404 allotted villages with population above 2000 as on 31.03.2014.
Robust operational systems with adequate risk mitigants and best practices have
been built up and are being pursued.
REGIONAL RURAL BANKS
Bank has sponsored 4 (four) Regional Rural
Banks (RRBs) namely Jharkhand Gramin Bank (Jharkhand State), Aryavart Kshetriya
Gramin Bankt (Uttar Pradesh State), Narmada Jhabua Gramin Bank (Madhya Pradesh
State) and Vidarbha Konkan Gramin Bank (Maharashtra State). All RRBs are profit
making. All Branches and administrative offices of the Gramin Banks are now on
CBS platform. These banks are enabled on RTGS and NEFT and ATM platforms. All
RRBs taken together have a branch network of 1,524 outlets and have garnered a
business mix of Rs.308910.000 Millions.
RETAIL CREDIT
The Bank during the year 2013-14, perused the
policy of building up a healthy retail credit portfolio. In the post
recessionary period of FY 2013-14 the spring buds of reviving economy gave
ample opportunity for retail credit. The retail credit portfolio of the Bank
increased from Rs.223500.000 Millions to Rs.296000.000 Millions as on 31st
March, 2014. During this period the contours of retail credit were also
redefined.
SME - PERFORMANCE OF THE BANK UNDER MSME
·
Business growth: MSME
Outstanding – Rs.450810.000 Millions registering Y-O-Y growth of 21.04
%.Performance under MSE: MSE Outstanding – Rs.386860.000 Millions registering
Y-O-Y growth of 21.15 %.
·
MSE manufacturing sector
has grown from Rs.160310.000 Millions (March 2013) to Rs.200950.000 Millions
(March 2014), witnessed Y-O-Y growth of 25.35 %.
·
Share of Micro sector
within MSE has slightly decreased to 47.69 % as at March 2014 from 49.54 % as
on March 2013.
·
Growth in number of Micro
accounts: 93,903 accounts have been sanctioned under Micro segment during
2013-14 registering growth of 18.60 % over accounts as at 31.03.2013 against
the mandatory target of 10 %.
·
Performance under CGTMSE
–33,930 new accounts added under CGTMSE scheme during 2013-14 covering exposure
of Rs.23510.000 Millions. We continue to remain at No.1 among PSU banks in
terms of total coverage under the scheme which has reached to the level of 1.51
lakhs accounts with total exposure coverage of Rs.96140.000 Millions as on
March 2014.
·
Performance under PMEGP:
503 accounts with limit of Rs.1580.000 Millions has been sanctioned during the
year 2013-14 under PMEGP.
ASSET RECOVERY AND NPA MANAGEMENT
The level of Non Performing Assets (NPA) is
key to any bank’s profitability and consequently larger the efforts of a bank
to minimise NPAs, the better it is in the long-term. The Bank continued its
drive and focus in improving its performance in the area of NPA management in
the year 2013-14 as well. NPA reduction has been given utmost priority at the
Bank and this function has steadily grown in importance. Substantial measures
were initiated to augment recovery and contain NPAs. Efforts were also made to
maximize recovery in written off accounts and uncharged / unrealised interest
in NPA accounts which contributes to the Bank’s profits significantly.
During the year Bank sold assets with o/s
Rs.47430.000 Millions (Corporate as well as Retail) and both cash and SR basis
in which assets sold on absolute cash basis for Rs.115.300 Millions. The
component of cash and SR basis and the reserve assets is Rs.1460.000 Millions /
Rs.24710.000 Millions respectively.
BRANCH NETWORK AND EXPANSION
The Bank has a geographically well spread
branch network in India and abroad. The Bank had 4,646 branches in India as on
31.03.2014. In the foreign countries, 25 branches and 31 representative offices
keep Bank’s presence felt in all time zones and important financial centers of
the globe.
During the year 2013-14, Bank opened 354 new
branches including 5 Extension Counters converted into full-fledged branches.
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2014 |
31.03.2014 |
|
I. Claims against the Bank not acknowledged as debts |
1431828.400 |
1426112.000 |
|
III.
Liability on account of outstanding forward exchange contracts |
413024.500 |
295648.900 |
|
IV. Guarantees given on behalf of Constituents : |
305960.200 |
271427.800 |
|
V.
Acceptances, endorsements and other obligations |
363430.800 |
215566.300 |
|
VII.
Other items for which the Bank is contingently liable |
214829.800 |
242300.000 |
FIXED ASSETS
- Furniture
- Fixtures
- Electrical fittings and Equipments
- Air-conditioning
- Motor cars
- Vans
- Motor cycles
- Computer Software
PRESS RELEASE
BOI PLANS TO EXPAND BRANCH NETWORK; HIRE 1,000 POS IN FY'15
State-run lender Bank of India plans to expand its branch network to over 5,450 and recruit 1,000 probationary officers and 3,500 clerical personnel in the current fiscal to build infrastructure, a top official said today. The bank with over 4.2 percent share in domestic business and has got agressive plan for expanding the branch network to over 5,450 from 4,655 by the end of current FY, VR Iyer, Bank of India's (BoI's) chairperson and managing director, told reporters. To build infrastructure and run the new branches, BoI will open recruitment for 1,000 Probationary officers and 3,500 clerical personnel in the current fiscal, Iyer said. Of the new branches, Rajasthan will get about 45 new branches, she added.
On the bank's expectations of the new BJP government coming to power at the Centre, she said, "The bank has a healthy capital adequacy of 10.76 percent and net NPA of 2 percent, BoI would expect that the capital adequacy be increased to Rs 15000.000 Millions". Bank's global business is at present more than Rs 8.53 lakh crore consisting deposits of over Rs 4.77 lakh crore and advances of Rs 3.76 lakh crore as on March 31, 2014, Iyer said, adding that the business mix of the bank has grown by 26.44 percent over March 2013.
While global deposits grew 24.91 percent and global advances grew 28.42 per cent over the corresponding period of the previous year, she said, adding that the bank aims to grow by over 16 percent in 2014-15. On whether the bank will reduce interest rates on loan products, Iyer said, it is to be decided by the RBI rules and inflation.
BoI has covered 14,472 villages under 100 percent financial inclusion as against allotted villages of 4404, one year advance by opening one account in each household, she said. She also said the all ATMs (automated teller machines) of the bank would be enabled with "instant money transfer" (IMT) for customers in near future.
BOI introduced IMT as an emerging alternate delivery channel for funds transfer through 205 of its ATMs, and now it is planning to enable all of its ATMs in near future. Till now as per the RBI guidelines, customer could transfer money instantly up to Rs 0.025 Million, she said, adding 3,335 new ATMs would be installed by March 2015. On the performance of of the 125 BoI branches in Rajasthan, she said the bank's total business mix under the National Banking Group (Delhi) is approximately Rs 97,123 crore (deposits Rs 709650.000 Millions and advances Rs 261580.000 Millions), which constitutes 15.88 percent of its domestic business.
BANK OF INDIA ALLOTS 4.63CR EQUITY SHARES TO GOVT OF INDIA
With to the earlier announcement dated October 31, 2013 intimating the Board’s decision to initiate process to raise further capital and also the earlier announcement regarding the proceedings of the Extraordinary General Meetings, held on December 03, 2013. In the Extraordinary General Meeting members had accorded their approval for issue of 4,63,60,686 Equity Shares to Government of India on Preferential basis at a price of Rs. 215.70 per share (including premium of Rs. 205.70 per share), Bank of India has now informed BSE that upon receipt of funds from Government of India, the Bank has on December 11, 2013 allotted the said equity shares to Government of India in the name of President of India in terms of SEBI (Issue of Capital and Disclosure Requirements) Regulations- 2009.
RBI'S LIQUIDITY COVERAGE RULE MAY ADVERSELY AFFECT SOME BANKS: MOODY’S
MUMBAI: IDBI Bank BSE -0.57 %, Oriental Bank of Commerce BSE -1.60 % and Yes Bank BSE 0.98 % are among banks that may be adversely affected because of the Reserve Bank of India's rule on Liquidity Coverage Ratio, the preparedness of a bank to meet redemption obligations for 30 days in a stressed-case scenario, said Moody's Investor Services. SBI, Axis Bank BSE 2.07 % and HDFC Bank BSE -0.89 %, with a strong deposit franchise, are well prepared for such a scenario, it says.
An analysis by the ratings firm indicated that banks with strong retail deposit franchises and less dependence on short-term funding, such as State Bank of India BSE -0.40 %, Axis Bank and HDFC Bank, are in a better position to meet the new requirements. Banks with weaker deposit franchises — as represented by smaller levels of low-cost current account and savings account deposits, and a greater reliance on short-term wholesale funding — such as IDBI Bank, Oriental Bank of Commerce, Indian Ove.
For calculating cash outflows, Moody's has included only those wholesale deposits and borrowings that are callable within LCR horizon of 30 days. Thus, the norms encourage long-term borrowings.
Last Monday, the Reserve Bank of India (RBI) issued the final Basel III framework on liquidity standards, including guidelines on the minimum LCR, liquidity risk monitoring tools and LCR disclosure standards. These guidelines are credit positive for Indian banks, Moody's said. These guidelines will encourage banks to improve asset-liability management because of the penalties associated with maturity mismatches, especially in short-term buckets. The requirement creates a credit-positive incentiv.
The main objective of these guidelines is to promote bank liquidity, Moody's said. The RBI will phase in the LCR with a minimum requirement of 60% starting January 1, 2015, rising 10 percentage points annually until it is 100% on January 1, 2019.
LCR is designed to address short-term liquidity risk by ensuring that banks hold sufficient cash and other liquid assets to meet obligations in a 30-day market stress scenario. The RBI framework aligns broadly with the framework of the Basel Committee on Banking Supervision. At the same time, the central bank encouraged banks to adopt a ratio higher than the prescribed minimum to promote better liquidity risk management.
An analysis by ratings firm Moody's indicates banks with strong retail deposit franchises and less dependence on short-term funding, such as State Bank of India, Axis Bank and HDFC Bank, are in a better position to meet the new requirements. Banks with weaker deposit franchises, as represented by smaller levels of low-cost current account and saving account deposits and a greater reliance on short term wholesale funding, such as IDBI Bank, Oriental Bank of Commerce, Indian Overseas Bank and Yes .
For the purposes of calculating cash outflows, Moody's has included only those wholesale deposits and borrowings that are callable within the liquidity coverage ratio, or LCR's horizon of 30 days. Thus, the norms encourage long term borrowings.
Last Monday, the Reserve RBI had issued the final Basel III framework on liquidity standards, including guidelines on the minimum liquidity coverage ratio (LCR), liquidity risk monitoring tools and LCR disclosure standards. These guidelines are credit positive for Indian banks, Moody's said. These guidelines will encourage banks to improve asset liability management because of the penalties associated with maturity mismatches, especially in short-term buckets.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.39 |
|
|
1 |
Rs.102.48 |
|
Euro |
1 |
Rs.81.87 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
YES |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
81 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not cause
fatal effect. Satisfactory capability for payment of interest and principal
sums |
Fairly
Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial
difficulties seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited
with full security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit
not recommended |
|
-- |
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.