MIRA INFORM REPORT
|
Report Date : |
14.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
BANK OF BARODA |
|
|
|
|
Registered
Office : |
Bank of Baroda Building, Mandvi, Vadodara – 390006,
Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Year of Establishment : |
1908 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 4306.763 Millions |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDB01794C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB1534F |
|
|
|
|
Legal Form : |
Subject is a Government of India Bank. The Bank’s Shares
are traded on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Banking Activities |
|
|
|
|
No. of Employees
: |
46001 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (78) |
|
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 |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is amongst the oldest commercial banks in India with a
substantial footprint in the domestic and international markets. In is a well-established and reputed bank having excellent track
record. The rating takes into consideration bank’s long track record of
business operation supported by overseas presence in 24 countries through
network of 102 branches / offices, decent asset quality amongst public sector
bank and healthy profitability profile of the bank. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. The bank can be considered good for normal 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
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had illfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Lower Tier – II Bonds = AAA |
|
Rating Explanation |
Highest degree of safety and carry lowest credit risk. |
|
Date |
19.08.2014 |
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
31-03-2014.
INFORMATION DECLINED
Management Non Cooperative (91-22-66985000)
LOCATIONS
|
Registered Office/ Head Office 1 : |
Bank of |
|
Tel. No.: |
91-265-2330274/ 2563932 |
|
Fax No.: |
91-265-2330824/ 2562445 |
|
E-Mail : |
|
|
Website : |
http://www.bankofbaroda.com |
|
|
|
|
Corporate Office /
Investor Services Department : |
1st Floor, Baroda Corporate Centre, C-26, G-Block, Bandra Kurla, Bandra, Mumbai - 400051, Maharashtra, India |
|
Tel. No.: |
91-22-66985000 / 04 |
|
Fax No.: |
91-22-26523500 |
|
|
|
|
Head Office 2 : |
Suraj Plaza-1, Sayaji Ganj, Vadodara -390005, Gujarat, India |
|
Tel. No.: |
91-265-236 1852 (10 lines) |
|
Fax No.: |
91-265-2362395 / 2361824 / 2361806 |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. S. S. Mundra |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. P. Srinivas |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Ranjan Dhawan |
|
Designation : |
Executive Director |
|
Address : |
533, Sector 16-D, Chandigarh, India |
|
Date of Birth/Age : |
09.09.1955 |
|
Qualification : |
B. Com., M. B. A. ( Finance ), A. C. M. A. ( UK ) and C. I. A. ( USA ) |
|
|
|
|
Name : |
Mr. Sudarshan Sen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vinil Kumar Saxena |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Maulin Arvind Vaishnav |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Surendra Singh Bhandari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajib Sekhar Sahoo |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri B. B. Joshi |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Dr. K. P. Krishnan |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Chief General
Managers : |
|
|
|
|
|
General Managers : |
|
|
|
|
|
Name : |
Mr. Raju Gupta |
|
Designation : |
Chief Vigilance Officer |
|
|
|
|
Name : |
Dr.(Mrs.) Rupa Nitsure |
|
Designation : |
Chief Economist |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
241571283 |
56.26 |
|
|
241571283 |
56.26 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
241571283 |
56.26 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
26986195 |
6.28 |
|
|
5013539 |
1.17 |
|
|
43770803 |
10.19 |
|
|
77310963 |
18.00 |
|
|
153081500 |
35.65 |
|
|
|
|
|
|
12484088 |
2.91 |
|
|
|
|
|
|
18246363 |
4.25 |
|
|
870460 |
0.20 |
|
|
3161393 |
0.74 |
|
|
1949840 |
0.45 |
|
|
22000 |
0.01 |
|
|
690066 |
0.16 |
|
|
499487 |
0.12 |
|
|
34762304 |
8.10 |
|
Total Public shareholding (B) |
187843804 |
43.74 |
|
Total (A)+(B) |
429415087 |
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) |
429415087 |
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 |
24,15,71,283 |
56.26 |
56.26 |
|
|
Total |
24,15,71,283 |
56.26 |
56.26 |
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 |
45408588 |
10.57 |
10.57 |
|
2 |
HDFC Trustee Company Limited HDFC Equity Fund |
16310989 |
3.80 |
3.80 |
|
3 |
Copthall Mauritius Investment Limited |
8165595 |
1.90 |
1.90 |
|
4 |
Swiss Finance Corporation (Mauritius) Limited |
5221446 |
1.22 |
1.22 |
|
|
Total |
75106618 |
17.49 |
17.49 |
Shareholding
belonging to the category "Public" and holding more than 5% of the
Total No. of Shares
|
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 |
45408588 |
10.57 |
10.57 |
|
|
Total |
45408588 |
10.57 |
10.57 |
Details of Locked-in
Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares |
Locked-in Shares as
% of |
|
1 |
President of India |
1,82,91,704 |
4.26 |
|
|
Total |
1,82,91,704 |
4.26 |
BUSINESS DETAILS
|
Line of Business : |
Banking Activities |
GENERAL INFORMATION
|
No. of Employees : |
46001 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
Reserve Bank of India |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Chartered Accountants
Chartered Accountants
Chartered Accountants
Chartered Accountants
Chartered Accountants
Chartered Accountants |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Associates : |
|
|
|
|
|
Joint Ventures : |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000000 |
Equity Shares |
Rs.10/- each |
Rs. 30000.000 Millions |
|
|
|
|
|
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
432148587 |
Equity Shares |
Rs.10/- each |
Rs. 4321.485 Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
429415087 |
Equity Shares |
Rs.10/- each |
Rs. 4294.151 Millions |
|
|
Add : Forfeited Shares |
|
Rs. 12.612 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 4306.763
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
CAPITAL & LIABILITIES |
|
|
|
|
Capital |
4306.763 |
4225.175 |
4123.846 |
|
Reserves and Surplus |
355549.988 |
315469.210 |
270644.661 |
|
Deposits |
5688943.885 |
4738833.375 |
3848711.059 |
|
Borrowings |
368129.688 |
265792.818 |
235730.512 |
|
Other Liabilities and Provisions |
178115.010 |
147033.825 |
114004.592 |
|
|
|
|
|
|
Total |
6595045.334 |
5471354.403 |
4473214.670 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Cash and Balances with Reserve Bank of India |
186290.939 |
134520.783 |
216514.596 |
|
Balances with Banks & Money at Call & Short Notice |
1122488.184 |
719468.260 |
425170.816 |
|
Investments |
1161126.614 |
1213937.244 |
832094.001 |
|
Advances |
3970058.108 |
3281857.649 |
2873772.935 |
|
Fixed Assets |
27341.226 |
24531.160 |
23415.020 |
|
Other Assets |
127740.263 |
97039.307 |
102247.302 |
|
|
|
|
|
|
Total |
6595045.334 |
5471354.403 |
4473214.670 |
|
|
|
|
|
|
Contingent Liabilities |
2599127.785 |
2046289.169 |
1525028.131 |
|
Bills for Collection |
318649.158 |
259522.360 |
227669.937 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
389397.095 |
351966.544 |
296737.242 |
|
|
|
Other Income |
44627.441 |
36306.249 |
34223.282 |
|
|
|
TOTAL |
434024.536 |
388272.793 |
330960.524 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Interest Expended |
269743.632 |
238813.891 |
193567.123 |
|
|
|
Operating Expenses |
71370.656 |
59467.363 |
51587.173 |
|
|
|
Provisions & Contingencies |
47499.418 |
45184.339 |
35736.666 |
|
|
|
TOTAL |
388613.706 |
343465.593 |
280890.962 |
|
|
|
|
|
|
|
|
|
NET PROFIT FOR THE
YEAR |
45410.830 |
44807.200 |
50069.562 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Statutory Reserve |
11352.708 |
11201.800 |
12517.391 |
|
|
|
Capital Reserve |
86.902 |
814.481 |
223.986 |
|
|
|
Revenue and Other Reserves |
|
|
|
|
|
|
I) General Reserve |
14013.788 |
13694.669 |
24538.608 |
|
|
|
II) Special Reserve |
9120.665 |
8500.000 |
5338.466 |
|
|
|
III) Statutory Reserve (Foreign) |
-- |
-- |
15.580 |
|
|
|
Proposed Dividend (including Dividend Tax) |
10836.767 |
10596.250 |
8122.904 |
|
|
|
Investment Reserve Account |
-- |
-- |
(687.373) |
|
|
TOTAL |
45410.830 |
44807.200 |
50069.562 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
107.38 |
108.84 |
127.84 |
|
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 |
4123.846 |
4225.175 |
4306.763 |
|
Reserves & Surplus |
270644.661 |
315469.210 |
355549.988 |
|
Net worth |
274768.507 |
319694.385 |
359856.751 |
|
|
|
|
|
|
long-term borrowings |
|
|
|
|
Short term borrowings |
|
|
|
|
Total borrowings |
235730.512 |
265792.818 |
368129.688 |
|
Debt/Equity ratio |
0.858 |
0.831 |
1.023 |
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) |
|
Sales |
296737.242 |
351966.544 |
389397.095 |
|
|
|
18.612 |
10.635 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
296737.242 |
351966.544 |
389397.095 |
|
Profit |
50069.562 |
44807.200 |
45410.830 |
|
|
16.87% |
12.73% |
11.66% |
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
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 |
|
HIGH COURT OF GUJARAT |
|
CIVIL APPLICATION (STAMP NUMBER) No. 3824 of 2012 |
|
Status : PENDING |
Converted from: FAST/3056/2012 |
CCIN No : 001012201203824 |
|
Last Listing Date: |
07/01/2013 |
|
Coram |
|
|
S.NO. |
Name of the
Petitioner |
Advocate On
Record |
|
1 |
NIRMA CHEMICAL WORKS PRIVATE LIMITED |
MR. GAURAV S MATHUR for: Appellant (s) - 1 |
|
S.NO. |
Name of the
Respondant |
Advocate On
Record |
|
1 2 |
GUJARAT POWER CORPORATION LIMITED BANK OF BARODA |
MR. KEYUR A VYAS for: Defendant (s) – 1 RULE SERVED for: Defendant (s) – 1- 2 |
|
Presented On |
31/08/2012 |
Registered On |
10/128/2012 |
|
Bench Category |
: DIVISION BENCH |
District |
: AHMEDABAD |
|
Case Originated
From |
: THROUGH ADVOCATE |
Listed |
: 6 times |
|
Stage Name |
: FOR ORDERS |
||
|
Classification |
DB – FRIST APPEAL - CODE OF CIVIL PROCEDURE, 1908 – PERMENANT
INJUCTION |
|
Act |
CIVIL PROCEDURE CODE, 1908 |
PERFORMANCE
HIGHLIGHTS
- Total Business (Deposit + Advances) increased to Rs.9659000.000
Millions reflecting a growth of 20.43% (y-o-y).
- Gross Profit and Net Profit were Rs 92910.000 Millions and Rs
45410.000 Millions respectively. Net Profit registered a growth of 1.35%
over the previous year.
- Credit-Deposit Ratio stood at 86.15% as against 82.03% last
year.
- Retail Credit posted a growth of 20.96% constituting 16.6% of
the Bank’s Gross Domestic Credit in FY14.
- MSME Credit posted a growth of 21.21% constituting 20.3% of the
Bank’s Gross Domestic Credit in FY14.
- Net Interest Margin (NIM) as per cent of interest earning assets
in global operations was at the level of 2.36% and in domestic operations
at 2.87% during FY14.
- Net NPAs to Net Advances stood at 1.52% this year against 1.28%
last year.
- Capital Adequacy Ratio (CAR) as per Basel II stood at 12.87%.
- Capital Adequacy Ratio (CAR) as per Basel III stood at 12.28%
- Net Worth improved to Rs 349330.000 Millions registering a rise
of 13.7%.
- Book Value improved from Rs 729.11 to Rs 813.50 on year.
- Business per Employee moved up from Rs 168.900 Millions to
Rs186.500 Millions on year.
SEGMENT-WISE PERFORMANCE
The Segment Results for the year FY14 reveal that the contribution of Treasury Operations was Rs 15272.400 Millions that of Corporate/Wholesale Banking was minus Rs 4611.100 Millions that of Retail Banking was Rs 33598.400 Millions, and of their Banking Operations was Rs 24580.200 Millions. The Bank earned a Profit after Tax (PAT) of Rs 45410.800 Millions after deducting Rs 13866.800 Millions of unallocated expenditure and Rs 9562.300 Millions towards provision for tax.
MANAGEMENT DISCUSSION
AND ANALYSIS
Economic Scene in
FY14 and Outlook for FY15
The financial year 2013-14 (FY14) began with multifarious developments including elevation of inflation, heightened rupee volatility and worsening current account deficit apart from growth slowdown and sharp industrial contraction. However, as the year progressed, especially from the third quarter onwards, there were firm signs of stability on the external front, partial easing of inflationary pressures and positive outlook towards growth.
During the third week of May 2013, the US suggested the possibility of “scaling back of its monetary stimulus or tapering” and there were wide spread repercussions on the emerging markets in general and on India, in particular, wherein not only the financial markets and asset prices saw a sharp decline but even the growth-inflation dynamics worsened further. The rupee-dollar exchange rates slumped to a record low of Rs 68.8 in late August 2013. The money markets were also under pressure with call money rates spiking to 9.5% and hardening of government bond yields. In response, the Reserve Bank of India (RBI) took a series of policy initiatives in mid-July to address exchange rate volatility so that it does not risk macroeconomic stability and growth sustainability. The measures undertaken included initiatives to contain domestic liquidity by sharply increasing Marginal Standing Facility (MSF) rate, moderating outflows and encouraging FX inflows through liberalized External Commercial Borrowings (ECBs) and Foreign Currency Non Resident (Bank) or FCNR (B) deposits. Apart from these, the government increased customs duty on gold and compressed demand for oil as well as curbed nonessential imports. External inflows were also encouraged. Consequently, the rupee recovered rather sharply to over Rs 60.0 per US dollar and touched a high of Rs 59.9 per dollar on March 28, 2014.
As the uncertainties surrounding “taper” decimated and domestic policy initiatives had positive impact, there was significant reduction in rupee volatility. The Current Account Deficit (CAD) which had peaked due to heightened outflows also contracted to 0.9% of GDP in Q3, FY14 from 6.7% of GDP in Q3, FY13. As India’s currency stabilised, the RBI began unwinding the unconventional monetary measures from September, 2013 in an orderly fashion. Among them, the marginal standing facility (MSF) which was increased by 200 bps to 10.3% on July 15, 2013 was gradually reduced in stages to 9.0% on December 18, 2013 and maintained at that level till the end of the financial year.
In the real sector, the ongoing contraction of mining and manufacturing sectors pulled down the real GDP growth to 4.8% in Q3, FY14. While the growth concerns remained significant for industrial and services sectors, the favourable monsoon rainfall improved the agricultural performance during FY14. Yet, majority of private forecasting agencies estimate the full year’s growth for FY14 in the band of 4.6% to 4.8%.
As in the past few years, the inflationary situation remained a dominant macro risk for India throughout the year FY14. The CPI inflation averaged around 9.5% throughout the year FY14 on the back of elevated food and fuel inflation. Despite the correction in vegetable prices during Dec-Jan, FY14 as well as the favourable monsoon and agricultural production scenario in FY14, food inflation at the retail level remained elevated highlighting the innate supply chain inefficiencies. Additionally, the upward adjustment in diesel prices and electricity tariffs too impacted the CPI trajectory during FY14.
The Interim Budget for FY15 presented by Government of India showed continued fiscal consolidation, with a fall in the fiscal deficit from 4.9% of GDP in FY13 to 4.6% of GDP in FY14 and further to 4.1% of GDP in FY15. While the revised estimates of both the revenue and fiscal deficits for FY14 are lower than the budgeted estimates, the expenses on subsidies, interest payments and pensions overshot the budgeted target and their impact was absorbed by lower plan expenditure.
Most of the private and public think-tanks from across the globe including International Monetary Fund (IMF) believe that Indian economy will recover in FY15 and the recovery will be enabled by a relatively stronger world economy, improving export competitiveness and policies encouraging investment. While the CPI inflation is expected to remain an important challenge for India, it should continue to move onto a downward trajectory during the major part of FY15.
Performance of Indian
Banking Sector in FY14 and Outlook for FY15
Against the backdrop of a slowdown in the domestic economy and tepid global recovery, the growth of the Indian banking sector remained under pressure even in FY14. The deposit and credit growth was marginally better than that in FY13. The growth in deposits of scheduled commercial banks (SCBs) at 14.6% in FY14 was marginally better than the growth at 14.2% in the previous financial year. However, this growth was primarily driven by the liberal policy adopted by the RBI towards non-resident Indian deposits. The credit growth at 14.3% in FY14 too was marginally better than that at 14.1% in FY13.
Due to exchange market pressures during Q2, FY14 the RBI had to take exceptional measures that resulted in firming up of both deposit and lending rates in September, 2013. With the ebbing of pressures on exchange rate, the RBI rolled back these exceptional measures in a calibrated manner and, in response to that the lending rates softened a bit in H2 of FY14. On balance, however, the lending rates were by and large sticky during the year. As inflation remained at elevated levels, the banks were compelled to offer attractive interest rates on their term deposits so as to protect their liability franchise. The sticky and elevated cost of deposits combined with subdued credit demand suppressed the banks’ earnings profile. Given the bleak macroeconomic environment and worsening repayment capacity of borrowers, the asset quality deteriorated and pipeline of restructured assets remained large during the financial year FY14.
However, most of the financial experts and analysts feel that the worst is over for the Indian banking industry, as there will be increased clarity on macroeconomic and political fronts during FY15. On the positive side, liquidity remains steady, inflation is expected to move downwards for the major part of FY15 and the RBI is in full control to manage any volatility. Macro recovery and potential for post-election reforms should see a gradual reduction in stressed loans on lower slippages and higher recoveries.
Back Office
Operations
Regional Back Offices
and City Back Offices
The Bank is having 12 Regional Back Offices (RBOs) at present with two RBOs opened during the year at Bareilly and Ahmedabad. One more RBO at Hyderabad is in advanced stages for a roll out, in order to have one RBO per zone for processing of CASA account opening forms and issue of Personalised cheque books. More than 4,200 branches of the Bank are linked for centralised account opening process through RBOs and more than 4,350 branches are linked for issuance of Personalised cheque books.
The Bank is having 85 centralised city back offices for processing of inward and outward cheques through clearing. During the year under review, 100.0% migration to CTS (Cheque Truncation System) clearing has taken place in Southern Grid and also at all the 20 MICR (Magnetic Ink Character Recognition) locations of the Western Grid.
New Products Launched
In pursuance to the important measures announced by the RBI during August-September 2013 to augment inflow of NRI remittances from abroad, two special Retail Liability products styled as “Baroda Premium FCNR (B) deposit” and “Baroda Ultra-Premium FCNR (B) deposit” were introduced on 23rd September, 2013 and 10th October, 2013, respectively. The funds mobilized under these products facilitated the Bank to participate in concessional Dollar SWAP window of the RBI. Keeping in line with the closure of SWAP window of RBI on 30th November, 2013, the special deposit products were closed on 27th November, 2013. The Bank mobilized deposit of USD 42 million and USD 1,694 million, respectively and swapped with the RBI for an amount of USD 1.7 billion.
INDEX OF CHARGES: NO
CHARGES EXIST FOR THE COMPANY
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.61.25 |
|
|
1 |
Rs.98.68 |
|
Euro |
1 |
Rs.77.8 |
INFORMATION DETAILS
|
Information
Gathered by : |
HET |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
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 |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
78 |
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.