MIRA INFORM REPORT

 

 

Report Date :

11.09.2014

 

IDENTIFICATION DETAILS

 

Name :

THE RATNAKAR BANK LIMITED

 

 

Registered Office :

1st Lane, Shahupuri, Kolhapur – 416001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

14.06.1943

 

 

Com. Reg. No.:

11-007308

 

 

Capital Investment / Paid-up Capital :

Rs. 2720.402 Millions

 

 

CIN No.:

[Company Identification No.]

U65191PN1943PLC007308

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

KLPT01764A/ MUMT09278D/ KLPT01905B/ KLPT01845E/ KLPT01800B/ KLPT01797F/ KLPT01864C/ KLPT081858D/ PNET08057A/ PNET07964F/ MUMT09900C/ PNET03925F/ KLPT01783F/ MUMT03234A/ KLPT01940B/ KLPT01924G

 

 

PAN No.:

[Permanent Account No.]

AABCT3335M

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Banking Activities.

 

 

No. of Employees :

Information declined by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (70)

 

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

 

 

Status :

Good

 

 

Payment Behaviour :

Regular 

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well-established and reputed bank having fine track record.

 

The ratings takes into consideration bank’s long track record supported experienced senior management team, diversifying revenue sources and comfortable capitalization level.

 

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.

 

ECGC Country Risk Classification List – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

N E W S

 

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

 

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

 

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

 

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Fixed deposit programme MAA- 

Rating Explanation

High degree of safety and very Low credit risk.

Date

July 2014

 

Rating Agency Name

ICRA

Rating

Short term fixed deposit programme A1+

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

July 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 DENIED

 

Management Non Co-operative (91-22-40288100)

 

 

LOCATIONS

 

Registered Office :

1st Lane, Shahupuri, Kolhapur – 416001, Maharashtra, India

Tel. No.:

91-231-2656831/ 2653006

Fax No.:

91-231-2653658

E-Mail :

vpjain@ratnakarbank.in

rajendrapatil@ratnakarbank.in

customercare@rbibank.com

Websites :

http://www.theratnakarbank.com

http://www.rblbank.com

 

 

Administrative Office :

Mahavir, 179/E Ward, Shri Shahu Market Yard, Kolhapur – 416005, Maharashtra, India

Tel. No.:

91-231-2650981 to 984

Fax No.:

91-231-2657386

 

 

Controlling Office :

One India Bulls Center, Tower 2B, 6th Floor, 841, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-43020600

Fax No.:

91-22-43020520

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Mr. Vishwavir Ahuja

Designation :

Managing Director & CEO

 

 

Name :

Ms. Rama Bijapurkar

Designation :

Director

 

 

Name :

Mr. Bahubali Arwade

Designation :

Director

 

 

Name :

Mr. Girish Godbole

Designation :

Director

 

 

Name :

Mr. Jairaj Purandare

Designation :

Director

 

 

Name :

Mr. Kiran Patil

Designation :

Director

 

 

Name :

Mr. Narayan Ramachandran

Designation :

Director

 

 

Name :

Mr. Palepu. Sudhir Rao

Designation :

Director

 

 

Name :

Mr. Vimal Bhandari

Designation :

Director

 

 

Name :

Mr. D. Sivanandhan

Designation :

Director

 

 

Name :

Mr. Ajay Michyari

Designation :

RBI - Additional Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajeev Ahuja

Designation :

Head - Strategy

 

 

Name :

Mr. Nitin Chopra

Designation :

Head - Retail and Consumer Banking

 

 

Name :

Mr. R. Gurumurthy

Designation :

Head - Corporate and Institutional Banking

 

 

Name :

Mr. Sunil Gulati

Designation :

Chief Risk Officer

 

 

Name :

Mrs. Shanta Vallury

Designation :

Head – Corporate Afffairs, Organisational Effectiveness and Special

 

 

Name :

Mr. Suhas Sahakari

Designation :

Head - Kolhapur Region

 

 

Name :

Mr. Sandeep Thapliyal

Designation :

Head - Commercial Banking

 

 

Name :

Mr. Andrew Gracias

Designation :

Head - Financial Markets

 

 

Name :

Mr. Surinder Chawla

Designation :

Head - Branch Banking

 

 

Name :

Mr. Rana Vikram Anand

Designation :

Head – Business Banking and Emerging Enterprise Finance

 

 

Name :

Mr. Harjeet Toor

Designation :

Head – Retail Assets and Small Business Lending

 

 

Name :

Mr. Aseem Gandhi

Designation :

Head - Development Banking and Financial Inclusion

 

 

Name :

Mr. Manoj Rawat

Designation :

Head - Agri Business

 

 

Name :

Mr. Naresh Karia

Designation :

Chief Financial Officer

 

 

Name :

Mr. Tajinder Kumar

Designation :

Head - Human Resources

 

 

Name :

Mr. Joginder Singh Rana

Designation :

Chief Operations Officer

 

 

Name :

Mr. Sanjay Sharma

Designation :

Head - Technology, Innovation and Customer Fulfilment

 

 

Name :

Mr. Satish Dhawan

Designation :

Chief Infrastructure and Administration Officer

 

 

Name :

Mr. Sanjit Chowdhry

Designation :

Head - Wholesale Credit Risk

 

 

BUSINESS DETAILS

 

Line of Business :

Banking Activities.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management.

 

 

Bankers :

Reserve Bank of India

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

Borrowing in India

 

 

Reserve Bank of India

4580.000

7023.000

Other Banks

6000.000

1000.000

Other Institution and Agencies

25040.286

18121.803

 

 

 

Borrowing Outside India

3335.152

1228.688

Total

38955.438

27373.491

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

Name :

S. R. Batliboi and Company LLP

Chartered Accountants

Address :

14th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (W), Mumbai – 400028, Maharashtra, India

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

400000000

Ordinary  Shares

Rs.10/- each

Rs. 4000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

272040198

Ordinary  Shares

Rs.10/- each

Rs.2720.402 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 AND LIABILITIES

 

 

 

1]  Capital

2720.402

2529.247

2149.474

2] Share Application Money

1295.024

0.000

0.000

3] Reserves & Surplus

16132.172

13538.214

9282.471

4] Deposits

115986.021

83405.186

47393.299

5] Borrowings

38955.438

27373.491

11985.517

6] Other Liabilities and Provision

6892.271

2787.483

1242.489

 

 

 

 

TOTAL

181981.328

129633.621

72053.250

 

 

 

 

ASSETS

 

 

 

Cash and Balances With Reserve Bank of India

9807.335

2908.405

2633.028

Balances With Banks and Money at Call and Short Notice

2115.155

3977.427

3228.160

Investment

65180.386

55714.205

23338.347

Advances

98350.473

63762.120

41322.694

Fixed Assets

1343.485

942.624

588.951

Other Assets

5184.494

2328.840

942.070

 

 

 

 

TOTAL

181981.328

129633.621

72053.250

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

 

INCOME

 

 

 

 

 

Interest Earned

13516.153

8793.209

4650.835

 

 

Other Income

2609.715

1264.381

671.327

 

 

TOTAL                                     (A)

16125.868

10057.590

5322.162

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Interest Expanded

10099.892

6217.734

2782.912

 

 

Operating Expenses

4239.032

2272.961

1390.967

 

 

Provision and Contingencies

860.245

642.207

490.990

 

 

TOTAL                                     (B)

15199.169

9132.902

4664.869

 

 

 

 

 

Less

NET PROFIT/(LOSS) FOR THE YEAR

926.699

924.688

657.293

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2.179

0.589

3.987

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Statutory Reserve

240.000

240.000

165.000

 

 

Transfer to Capital Reserve

18.520

20.436

14.409

 

 

Transfer to Revenue and Other Reserves

370.000

485.000

405.000

 

 

Transfer to Investment Reserve

0.000

0.000

1.503

 

 

Proposed Dividend

245.821

151.871

64.484

 

 

Tax on Dividend

41.777

25.791

10.295

 

Balance carried to the b/s

12.760

2.179

0.589

 

 

928.878

925.277

661.280

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

3.63

4.19

3.06

 

Diluted

3.61

4.16

3.04

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

No

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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

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

No

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 BOMBAY

CASE DETAILS

BENCH: BOMBAY

 

Presentation Date :- 29.07.2013

Lodging No: ITXAL/1223/2013     Filing Date: 29/07.2013   Reg. No.: ITXA/1568/2013  Reg. Date: 17/08/2013

 

Petitioner:- THE COMMISSIONER OF INCOME TAX II, KO         Respondent:- THE RATNAKAR BANK LTD. -

 

Petn. Adv. :- TEJVEER SINGH (0)                                                  Resp. Adv.:-  ATUL KARSANDAS JASANI (0)

District :-       KOLHAPUR

 

Bench :-      DIVISION

Status:-       Pre-Admission                                                          Category:-     TAX APPEALS

Next Date:- 16/12/2013                                                                Stage:

 

Coram:-      ACCORDING TO SITTING LIST

                   ACCORDING TO SITTING LIST

 

 

Act:       Income Tax Act, 1961                                                   UNDER SECTION:  260A

 

 

FINANCIAL PERFORMANCE

 

The Bank posted a net total income of Rs. 6026.000 Millions and net profit of Rs. 1335.600 Millions [#before acquisition expense towards purchase of business portfolios from Royal Bank of Scotland in India (as explained in more detail in notes to accounts)], as against a net total income of Rs. 3839.900 Millions and net profit of Rs. 924.700 Millions for FY13, respectively. Accordingly, the net profit has increased by 44.43%.The net profit after considering the acquisition expense referred above is Rs. 926.700 Millions. Appropriations from net profit have been done as detailed herein above.

 

REVIEW OF OPERATIONS

 

Armed with a vision of being a pan-India banker, the Bank continues to stay on course, leveraging on its strength of passion, legacy, achievements and penetration in new regions. Continuing on its journey of ‘Building it Right,’ today the Bank is infused with “New Energy” and is “Gaining Momentum”. It took strides towards establishing itself firmly in the Indian private banking space. The Bank focused on its strategy to meet the changing needs of customers. It is focusing on value addition and building capabilities with a view to build long-term relationships and also on improving its service standards. It has achieved this through the following initiatives:

 

 

FINANCIAL OVERVIEW

 

The year FY14, was a milestone year for the Bank as it continued to focus on expanding its presence, widening its offerings apart from making strategic acquisition and mobilising additional capital. Besides, it also focused on customer centricity backed by implementation of various technology initiatives. The Bank recorded commendable The increase in Net total Income financial numbers during the year as tabulated in the Directors Report.

 

 

CONTINGENT LIABILITIES:

 

Particular

31.03.2013

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

1. Claims against the Bank not acknowledged as debts

18.955

5.455

2. Liability for Partly Paid Investment

8.500

21.358

3. Liability on Account of Outstanding forward Exchange contracts

54131.435

37752.173

4. Liability on Account Of Outstanding derivative contracts

 

 

i) Interest Rate Swaps

30000.000

250.000

ii) Cross Currency Swaps

747.528

0.000

iii) Currency Options

9256.735

4772.600

5. Guarantees given on behalf of constituents

 

 

(i) In India

9401.907

6391.823

(ii) Outside India

7572.303

9958.060

6. Acceptances, Endorsements and other Obligations

8239.860

2851.552

7. Other items for which the Bank is contingently liable

 

 

a) Income tax and other matters (under appeal)

61.384

78.140

b) Others

3300.127

1400.520

Total

122738.734

63481.681

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 60.82

UK Pound

1

Rs. 98.15

Euro

1

Rs. 78.66

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

DPH


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

70

 

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

 

--

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.