MIRA INFORM REPORT

Report No. :	320580
Report Date :	02.05.2015

IDENTIFICATION DETAILS

Name :	CENTRAL BANK OF INDIA LIMITED
Registered Office :	16^th Floor, Chandermukhi, Nariman Point, Mumbai – 400021, Maharashtra
Tel No.:	91-22-66387828
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	21.12.1911
Com. Reg. No.:	11-000337
Capital Investment / Paid-up Capital :	Rs.29674.393 Million
CIN No.: [Company Identification No.]	U99999MH1911PTC000337
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Nationalised Bank
Line of Business :	Subject is engaged in all kinds of Banking Business.
No. of Employees :	40,661 (Approximately)

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 one of the major players in the Indian banking system. It is a well-established and reputed bank having fine track record. Bank has incurred loss during financial year 2014. However, the rating reflects banks healthy financial risk profile marked by adequate liquidity position and financial as well as managerial supported that bank receives from government of India. Trade relations are reported as fair. Business is active. Payment are reported to be regular and as per commitment. In view of strong government support, the bank can be considered good 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Billion Tier II Bonds (Under Basel III): AA
Rating Explanation	High degree of safety and very low credit risk.
Date	09.03.2015

Rating Agency Name	CARE
Rating	Billion Certificate of deposits programme : A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	09.03.2015

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 (91-22-66387828)

LOCATIONS

Registered / Corporate Office :	16^th Floor, Chandermukhi, Nariman Point, Mumbai- 400021, Maharashtra, India
Tel. No.:	91- 22-66387818 / 66387777 / 66387828
Fax No.:	91- 22-22835198
E-Mail :	compsec@centralbank.co.in investors@centralbank.co.in
Website :	www.centralbankofindia.com
Zonal Offices:	Located: · Agra · Ahmedabad · Bhopal · Chandigarh · Chennai · Guwahati · Hyderabad · Kolkata · Lucknow · Mumbai Metro Zonal Office · Muzaffarpur · Nagpur · New Delhi · Patna · Pune · Raipur

DIRECTORS

As on 31.03.2014

Name :	Mr. Rajeev Rishi
Designation :	Director
Name :	Mr. R.K. Goyal
Designation :	Director
Name :	Mr. Animesh Chauhan
Designation :	Director
Name :	Mr. B.K. Divakara
Designation :	Director
Name :	Dr. Saurabh Garg
Designation :	Director
Name :	Mr. Guman Singh
Designation :	Director
Name :	Mr. Shekhar Bhatnagar
Designation :	Director
Name :	Mr. Guman Singh
Designation :	Director
Name :	Mr. N. Balakrishnan
Designation :	Director
Name :	Mr. Krishan Sethi
Designation :	Director
Name :	Mr. M.P. Shorawala
Designation :	Director
Name :	Mr. S. B. Rode
Designation :	Director
Name :	Mr. Gurbax Kumar Joshi
Designation :	Director
Name :	Mr. N. S. Rathnaprabha
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2015

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	1350827438	81.46
Sub Total	1350827438	81.46
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1350827438	81.46
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	74973	0.00
Financial Institutions / Banks	223139601	13.46
Central Government / State Government(s)	700	0.00
Insurance Companies	6334239	0.38
Foreign Institutional Investors	5525146	0.33
Sub Total	235074659	14.18
(2) Non-Institutions
Bodies Corporate	27013334	1.63
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	30076064	1.81
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	12251657	0.74
Any Others (Specify)	3030029	0.18
Clearing Members	1785002	0.11
Non Resident Indians	939297	0.06
Directors & their Relatives & Friends	133	0.00
Trusts	121948	0.01
Hindu Undivided Families	102322	0.01
Foreign Port Folio Investor Corporate	81327	0.00
Sub Total	72371084	4.36
Total Public shareholding (B)	307445743	18.54
Total (A)+(B)	1658273181	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	1658273181	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl.No.	Name of the Shareholder	No. of Shares held	As a % of grand total (A)+(B)+(C)
	President of India	1,35,08,27,438	81.46
	Total	1,35,08,27,438	81.46

(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Life Insurance Corporation of India	222440769	13.41
	Total	222440769	13.41

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

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
1	Life Insurance Corporation of India	222440769	13.41
	Total	222440769	13.41

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	Life Insurance corporation of India	13,29,65,753	8.02
2	Life Insurance corporation of India ULIF002200910LICEND+SEC512	10,000	0.00
3	Life Insurance corporation of India ULIF003200910LICEND+BAL512	40,000	0.00
4	Life Insurance corporation of India ULIF004200910LICEND+GRW512	9,50,000	0.06
5	Life Insurance corporation of India P & GS Fund	2,00,00,000	1.21
6	President of India	1,35,08,27,438	81.46
	Total	1,50,47,93,191	90.74

BUSINESS DETAILS

Line of Business :	Subject is engaged in all kinds of Banking Business.
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

40,661 (Approximately)

Bankers :

Reserve Bank of India

Banking Relations :	--
Auditors :
Name :	Kumar Chopra and Associates Chartered Accountants
Name :	P.K. Subramaniamand Company Chartered Accountants
Name :	Doogarand Chartered Accountants
Name :	N. Sarkar and Company Chartered Accountants
Name :	N. Chaudhuri and Company Chartered Accountants
Name :	B.N. Misra and Company Chartered Accountants
Memberships :	--
Collaborators :	--
Subsidiaries:	Cent Bank Home Finance Limited ii) Cent Bank Financial and Custodial Services Limited
Associates	Regional Rural Banks – Central Madhya Pradesh Gramin Bank Uttar Bihar Gramin Bank, Muzzaffarpur Uttarbanga Kshetriya Gramin Bank, Cooch Behar (II) Indo – Zambia Bank Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000000	Equity Shares	Rs.10/- each	Rs. 30000.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1350439315	Equity Shares	Rs.10/- each	Rs.13504.393 Million
1617000000	Perpetual non-cumulative Preference Share capital	Rs.10/- each	Rs.16170.000 Million
	Total		Rs.29674.393 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

Particulars	31.03.2014	31.03.2013	31.03.2012
CAPITAL & LIABILITIES
Capital	29674.393	26615.769	23531.154
Reserves and Surplus	128211.183	126512.743	100984.104
Deposits	2400689.887	2260383.148	1961733.268
Borrowings	220797.760	183055.117	129195.961
Other Liabilities and Provisions	115589.021	84728.713	82552.905
TOTAL	2894962.244	2681295.490	2297997.392
ASSETS
Cash and Balances with Reserve Bank of India	119266.293	135601.667	131141.772
Balances with Banks and Money at Call and Short Notice	4514.037	5320.449	10124.236
Investments	861351.399	726037.937	592432.651
Advances	1773151.717	1719358.433	1475128.503
Fixed Assets	28043.893	26847.546	24739.090
Other Assets	108634.905	68129.458	64431.140
TOTAL	2894962.244	2681295.490	2297997.392
Contingent Liabilities	885525.147	595190339	593913.114
Bills for Collection	76717.357	60955707	56771.907

PROFIT & LOSS ACCOUNT

Particulars	31.03.2014	31.03.2013	31.03.2012
I. INCOME
Interest Earned	244275.497	218606.505	191494.994
Other Income	19225.805	16673.296	13953.016
TOTAL	263501.302	235279.801	205448.010
II. EXPENDITURE
Interest Expended	179331.646	161230.808	139808.592
Operating Expenses	51789.354	42323.273	37489.952
Provisions and Contingencies	45008.721	21576.125	22819.075
TOTAL	276129.721	225130.206	200117.619
III. PROFIT/ LOSS
Net Profit for the year	(12628.419)	10149.595	5330.391
Profit brought forward	15.779	14.789	14.789
TOTAL	(12612.640)	10164.384	5345.180
IV. APPROPRIATIONS
Transfer to :
Statutory Reserve	0.000	2537.399	1332.598
Investment Reserve	425.368	375.216	439.466
Staff Welfare Fund	0.000	404.700	150.000
Revenue Reserve	0.000	2000.000	205.630
Reserve for Interest on JPY Swap Coupon	0.000	20.000	0.000
Proposed Dividend - Preference Capital	0.000	1504.993	1285.921
Proposed Dividend - Equity Capital	0.000	2611.442	1472.231
Dividend Tax	0.000	694.855	444.545
Balance Carried Over to Balance Sheet	(13038.008)	15.779	14.789
TOTAL	(12612.640)	10164.384	5345.180
EPS (Basic and Diluted) (Rs.)	(11.10)	11.24	5.95

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	23531.154	26615.769	29674.393
Reserves & Surplus	100984.104	126512.743	128211.183
Net worth	124515.258	153128.512	157885.576
Borrowings	129195.961	183055.117	220797.760
Total borrowings	129195.961	183055.117	220797.760
Debt/Equity ratio	1.038	1.195	1.398

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Interest Earned	191494.994	218606.505	244275.497
		14.158	11.742

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Interest Earned	191494.994	218606.505	244275.497
Profit	5330.391	10149.595	(12628.419)
	2.78%	4.64%	(5.17%)

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	Yes
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	Yes
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

LITITGATION DETAILS

CASE DETAILS

BENCH:-BOMBAY

Presentation Date:-				29/04/2015
	Lodging No.:-	NMSL/1302/2015	Filing Date:-	29/04/2015

Main Matter

Lodging No.:-

ARBPL/1834/2014

Reg No.:-

ARBP/224/2015

Petitioner:-

M/S. INTERSEARCH INVESTIGATION BUREAU PRIVATE LIMITED

Respondent:-

RAGHUNATHAN R.P. AND ANR.

Petn.Adv.:-

Sunil Maruthi kadam (I4232)

District:-

MUMBAI

Bench:-	SINGLE
Status:-	Pre-Admission	Category:-	NOTICE OF MOTION (ARBITRATION PETITION)

Next Date:-

06.05.2015

Stage:-

--

Coram:-

REGISTRAR (OS)/ PROTHONOTARY AND SR. MASTER

Act :-

Arbitration and Conciliation Act 1996

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

PERFORMANCE HIGHLIGHTS

Total Business of the Bank increased by Rs.211180.000 Million to Rs.4233900.000Million from Rs. 4022720.000 Million in previous year, registering y-o-y growth of 5.25 per cent.

Total Deposits increased by Rs.140310.000 Million to Rs. 240069 Million, registering y-o-y growth of 6.21 per cent.

Total Advances of the Bank grew by Rs. 70870.000 Million to Rs. 1833210.000 Million, registering y-o-y growth of 4.02 per cent.

Operating Profit increased to Rs. 32380.000 Million from Rs. 31730.000 Million in FY 2012-13, registering y-o-y growth of 2.05 per cent. However, the Bank incurred Net Loss of Rs. 1263.000 Million in the financial year ended 31st March, 2014 due to higher provisions on NPAs.

Capital Adequacy Ratio (as per Basel-II) stood at 11.96 per cent with Tier I at 8.12 percent as against 11.49 per cent in previous year. Capital Adequacy Ratio (as per Basel III) stood at 9.87 per cent with Tier I at 7.37 percent Net worth increased to Rs. 139180.000 Million from Rs. 134430.000 Million.

Gross NPA of the Bank increased by Rs. 30440.000 Million to Rs. 115000.000 Million from Rs. 84560.000 Million in previous year. In percentage term Gross NPA increased to 6.27 per cent in FY 2013-14 from 4.80 per cent in last year.

Net NPA increased to Rs.66490.000 Million from Rs.49880.000 Million in previous year. Net NPA percentage increased to 3.75 per cent from 2.90 per cent in previous year.

Provision Coverage Ratio (PCR) increased to 50.68 per cent from 47.75 per cent in March 2013. Net Interest Margin (NIM) improved to 2.73 per cent from 2.65 per cent in FY 2012-13.

Business per Employee reduced to Rs. 102.500 Million from Rs. 106.700 Million in previous year. Return on Assets (ROA) is negative for the financial year 2013-14 as the Bank incurred losses.

Credit to Priority Sector increased to Rs. 686480.000 Million from Rs. 512590.000 Million in previous year, recording y-o-y growth of 33.92 per cent.

Agriculture Advance of the Bank increased to Rs. 353820.000 Million from Rs. 246580.000 Million in FY 2012-13 registering y-o-y growth of 43.49 per cent.

Under the micro credit and other (credit upto Rs. 50,000 per borrower), Bank has extended credit of Rs. 2610.000 Million. Advances to Micro and Small Enterprises (MSE) increased to Rs. 215150.000 Million during the year from Rs. 173000.000 Million in previous year.

During the year 65939 new Self Help Groups (SHGs) were formed, out of which 60278 SHGs have been credit-linked.

Under the Government Sponsored Programmes, Bank has provided assistance to 31658 NRLM/SGSY beneficiaries, 13195 SJSRY beneficiaries and 7474 PMEGP borrowers during the year 2013-14.

Bank has extended loan of Rs. 209530.000 Million to the borrowers belonging to the weaker section of the society. Education Loan grew by 16.09 per cent during the year and the total loan reached to Rs. 29800.000 Million.

Bank has established 46 Rural Self Employment and Training Institute (RSETI) across India. During the year 2013-14, the RSETIs conducted 677 training programmes and imparted training to 18837 candidates. Out of this, 10550 (56%) trainees were linked to Bank’s credit.

At the beginning of the year, the Bank had 5 sponsored Regional Rural Banks (RRBs) covering 54 Districts with a network of 1799 Branches, out of which 2 RRBs were merged with other RRBs, sponsored by other Banks. As a result now we have 3 RRBs as on 31st March, 2014 in 3 States covering 46 Districts with a network of 1609 Branches.

Under Financial Inclusion Bank has covered 4330 villages with population above 2000 and 6743 villages with population below 2000. Bank has covered all these villages through 5588 BC Agents. Bank has opened all its 3677 Ultra Small Branches. Bank has opened 9.227 Million Basic Saving Bank Deposit Accounts through BCs and Branches upto 31st March, 2014.

The corporate credit of the Bank decreased to Rs. 976130.000 Million from Rs. 1120670.000 Million in previous year registering y-o-yreduction of 12.90%.

The retail credit grew by 29.73% from Rs. 222090.000 Million in FY 2012-13 to Rs. 288110.000 Million in FY 2013 14.

Total earning from Bancassurance business is Rs. 266.500 Million with y-o-y growth of 8%.

As on 31st March 2014, Bank has a network of 4573 branches, 29 Satellite Offices and 4 Extension Counters across the country. Bank has installed 3628 ATMs till 31st March 2014.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC SCENARIO

Global Developments

The world economy experienced subdued growth for a second year in 2013-14. The euro area has finally ended in a protracted recession. Growth in the United States strengthened to some extent. A few large emerging economies, including China and India, managed to backstop the deceleration they experienced in the past two years and veered upwards moderately. The International Monetary Fund (IMF) has estimated that the global economy is expected to grow at a pace of 3.6 per cent in 2014 and 3.9 per cent in 2015, compared to an estimated growth of 3.0 per cent for 2013. In advanced economies, growth is expected to increase to about 2¼ percent in 2014–15, an improvement of about 1 percentage point compared with 2013.In emerging market and developing economies, the growth is projected to pick up gradually from 4.7 percent in 2013 to about 5 percent in 2014 and 5¼ percent in 2015.

The risks associated with a possible bumpy exit from the quantitative easing programs by the U.S Federal Reserve (Fed) threaten the global economy. As already seen somewhat during the summer of 2013, efforts by the Fed to pull out of quantitative easing programs could lead to a surge in long term interest rates in developed and developing countries. Tapering could also lead to a sell-off in global equity markets, a sharp decline of capital inflows to emerging economies leading to increased fluctuation in Forex Market and depreciation of currencies of emerging economies.

Domestic Economy

1. Gross Domestic Product (GDP) Growth

India’s economic performance has been weaker than expected, resulting in a downward revision of the country’s growth forecast for FY 2013–2014. Slower growth, high inflation, and rising fiscal deficit are posing significant challenges to its troubled economy.

As per the Advance Estimates of the Central Statistical Organisation (CSO), India’s GDP growth is estimated to be at 4.9 % in FY 2013-14 as compared to 5.0 % growth registered in 2012-13.

The ‘agriculture, forestry and fishing’ sector growth is estimated of 4.6 per cent in its GDP during 2013-14, as against the previous year’s growth rate of 1.4 per cent.

The estimated growth in the ‘manufacturing’ ‘mining and quarrying’, ‘electricity, gas and water supply’, and ‘construction’ is estimated to be (-) 0.2 per cent, (-) 1.9 per cent, 6.0 percent and 1.7 per cent, respectively, during 2013-14 as compared to growth of 1.1 percent, (-) 2.2 per cent, 2.3 per cent and 1.1 per cent, respectively, in 2012-13.

The estimated growth in GDP for the Service Sector (trade, hotels, transport and communication sectors) during 2013-14 is placed at 3.5 per cent as against growth of 5.1 percent in the previous year.

2. Inflation

The annual rate of inflation, based on monthly WPI, stood at 5.70% (provisional) for the month of March, 2014(over March,2013) as compared to 4.68% (provisional) for the previous month and 5.65% during the corresponding month of the previous year.

Indian annual consumer prices accelerated in March for the first time in four months to 8.31 percent, up from a revised 8.03 percent in February, driven by higher food prices.

Historically, the wholesale price index (WPI) has been the main measure of inflation in India. However, in 2013, the Governor of The Reserve Bank of India Raghuram Rajan had announced that the consumer price index is a better measure of inflation.

3. External Sector

During 2013-14, exports touched US$ 312.4 billion thus registering a growth of four per cent as compared to a decline of 1.8 cent during 2012-13. Exports of Gems and Jewellary declined by 6.8% due to decline in prices of precious metals. Nevertheless, this remained short of the export target of US$ 325 billion for the 2013-14.

Commodity imports dropped to US$ 450.9 billion during 2013-14. This translated into a decline of 8.1 per cent during 2013-14 compared to growth moderation during 2012-13.

During the first three quarters of 2013-14, merchandise exports expanded 5.9 per cent while imports declined 5.3 per cent. Consequently, trade deficit shrank 22.1 per cent from US$ 150 billion during April-December 2012-13 to US$ 116.9 billion during April-December 2013-14.

The current account deficit (CAD) narrowed sharply to US$ 31.1 billion against US$ 70 billion in the previous comparable period.

4. Monetary Developments

RBI’s policy stance is firmly focused on keeping the economy on the disinflationary glide path which was suggested by the Dr. Urjit Patel committee whereby the economy is intended to touch 8% retail inflation by January ’15 and 6% by January ’16. RBI maintained the benchmark Repo rate at 8.00% in its First Bi-Monthly Monetary Policy Statement, 2014-15.

In its Bi- Monthly Monetary policy Statement, 2014-15, RBI kept Policy repo rate under the Liquidity Adjustment Facility (LAF) unchanged at 8.0%. The liquidity provided under 7-day and 14-day term repos is increased from 0.5% of NDTL of the banking system to 0.75%, and the liquidity provided under overnight repos under the LAF is decreased from 0.5% of bank-wise NDTL to 0.25% with immediate effect.

5. Developments in Banking Industry

The asset quality of banks has been deteriorating for the past two years as economic growth slipped to its lowest level in a decade while inflation and interest rates remained high. Gross bad loans have spiked to nearly four per cent of total lending from 2.36 per cent three years ago.

RBI has extended the timeline for full implementation of Basel III capital regulations to March 31, 2019. Therefore Banks got some time to raise capital within the internationally agreed timeline for full implementation of the Basel III capital regulations. The banking system’s restructured assets are at an alarmingly high level of more than six per cent. As per RBI data, the y-o-y deposit growth till March 7 was 15.6% vis-à-vis 13.1% a year before; whereas credit growth was 14.7% visà- vis 15.4 % earlier.

RBI has allowed securitisation and reconstruction companies to utilize a part of the funds raised under a scheme from the Qualified Institutional Buyers (QIBs)for restructuring of financial assets acquired by them.

PERFORMANCE OF THE BANK

BUSINESS

As on 31st March 2014, the total business of the Bank was Rs.423390 Million, registering a growth of 5.25 per cent from the previous year figure of Rs.4, 02, 2720.000 Million. The operating profit reached to Rs.32380.000 Million from previous year figure of Rs.31730.000 Million, marking a growth of 2.05 per cent. The Bank has posted net loss of Rs.12630.000 Million in 2013-14 as against Rs.10150.000 Million profit in previous year.

RESOURCE MOBILISATION

The total deposits as on March 31, 2014 stood at Rs.2400690.000 Million, registering a growth rate of 6.21 per cent over previous year. Savings bank deposits increased to Rs.664740.000 Million in 2013-14 from Rs.590900.000 Million in last year. However current deposits decreased to Rs.135370.000 Million in 2013-14 from Rs.14491 Million in 2012-13. The share of casa deposits to total deposits was 33.33 per cent. Total core deposits increased to Rs.187164 Million in 2013-14 with y-o-y growth of 9.48 per cent from Rs.1709530.000 Million in 2012-13 whereas core term deposits grew by 10.53 per cent to Rs.1076240.000 Million in 2013-14 from Rs.973720.000 Million in 2012-13.

AWARDS AND ACCOLADES

Government of India has awarded the second ranked “National Award for Excellence in MSME Lending” for the year 2012-13 to Central Bank of India. The award was given at the benign hands of Hon’ble Prime Minister Shri Manmohan Singh.

Bank was conferred ‘HR AWARD’ for ‘Training Excellence’ (Gold Award) towards achieving excellence in Training and Learning systems and practices, by Greentech Foundation.

Bank has received second award in the category: Public – Service Sector (Large) for ‘Excellence in Cost Management’ by Institute of Cost Accountants of India. Bank was conferred ‘BEST FINANCIAL ADVISOR AWARD UNDER PSU CATEGORY’ by CNBC TV and UTI Mutual Fund.

Bank was conferred ‘Greentech Safety Award – 2013’.

During BANCON 2013, Bank won Special Mention Award under the category ‘Most Innovative Broad-based Product Offering’. Bank has received Banking Excellence Awards in two categories viz. 1) ECO– Technology Award – Runner Up and 2) Jury Award for New Initiatives in a glittering function organized by Chamber of Indian Micro Small and Medium Enterprises in the august presence of Dr. Montek Singh Ahluwalia, Hon’ble Dy. Chairman, Planning Commission, Mr. J.D. Seelam, Hon’ble Minister of State for Finance and Mr. Arun Maira, Member Planning Commission.

CONTINGENT LIABILITIES:

(Rs. in Million)

PARTICULARS	31.03.2014	31.03.2013
I. (a) Claims against the Bank not acknowledged as Debts	1.196	635.671
(b) Disputed income tax demands under appeals, revisions, etc	14.006	9126.021
II. Liability for partly paid Investments	--	--
III. Liability on account of outstanding forward exchange contracts	640602.389	357696.828
IV. Guarantees given on behalf of constituents
a) In India	109036.793	100796.865
b) Outside India
V. Acceptances, Endorsements and Other Obligations	112332.617	126372.490
VI. Other item for which the bank is contingently liable	8351.107	562.464

REVIEWED FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2014

(Rs. In Million)

Particulars	Quarter Ended ( Unaudited)		Nine months ( Unaudited)
	31.12.2014	30.09.2014	31.12.2014
1. Interest earned	66239.700	68185.600	196391.900
a) interest / discount on advances / bills	48368.400	49324.200	146411.600
b) Income on Investment	16725.00	16757.100	49686.100
c) Interest on balances with Reserve Bank of India	146.300	404.300	294.200
d) Others	--	--	--
2. Other Income	5087.300	4025.400	13423.200
3. Total Income	70327.000	70211.000	209815.100
4. Interest Expanded	48476.100	47909.500	14313.7500
5. Operating Expanses	13234.500	13838.400	39862.600
i) Employee cost	9221.700	9110.300	27428.900
ii) Other Operating Expenses	4012.800	4728.100	12433.700
6. Total Expenditure excluding provision and contingencies (4+5)	61710.600	61747.900	183000.100
7. Operating profit before provision and contingencies	8616.400	8463.100	26816.000
8. Provision and contingencies (other than tax)	6989.700	7077.700	20515.500
9. Exceptional Items	--	--	--
10. Profit/(loss) from ordinary activities before tax	1626.700	1385.400	6299.500
11. Tax expenses	250.200	356.300	1977.900
12. Net Profit / (Loss) from ordinary activities after tax	1376.500	1029.100	4321.600
13. Extraordinary Items (net of tax expense)	--	--	--
14. Net Profit / (Loss) for the period (11 -12)	1376.500	1029.100	4321.600
15.Paid-up equity share capital (Nominal value Re. 1/- per share)	14215.100	14215.100	14215.100
16. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	--	--	--
17. Analytical rations:
i) Percentage of shares held by government of India	84.20	84.20	84.20
ii) Capital Adequacy ration
As per Basel – II	11.27	11.62	11.27
As per Basel – III	10.20	10.65	10.20
iii) Earning per shares (EPS) (not annualised):
a) Basic and diluted EPS before extraordinary items	0.66	0.43	2.19
b) Basic and diluted EPS after extraordinary items	0.66	0.43	2.19
iv) NPA Rations :
a) i) Gross NPA	117925.000	114397.500	117925.00
ii) Net NPA	65771.10	50725.200	65771.100
b) i) % of Gross NPA	6.20	6.14	6.20
ii) % of Net NPA	3.58	3.38	3.58
c) Return on assets (annualised)	0.19	0.15	0.21
18. Public Shareholding
- Number of shares	224555743	224555743	224555743
- Percentage of shareholding	15.80	15.80	15.80
19. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	NIL	NIL	NIL
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	NIL	NIL	NIL
Percentage of shares (as a % of total share capital of the company)	NIL	NIL	NIL
b) Non Encumbered
Number of shares	1196959325	1196959325	1196959325
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100	100	100
Percentage of shares (as a % of total share capital of the company)	84.20	84.20	84.20

SEGMENT REPORT FOR THE QUARTER ENDED December 31, 2014

(In Million)

SL No	PARTICULARS	Quarter Ended ( Unaudited)		Nine months ( Unaudited)
		31.12.2014	30.09.2014	31.12.2014
a	Segment Revenue
	Treasure / operations	19600.900	16163.100	53871.600
	Retail Banking Operations	19459.700	20154.200	57426.200
	Wholesale Banking Operations	31266.400	33693.700	98517.300
	Other Banking Operations	0.000	0.000	0.000
	Unallocated	0.000	0.000	0.00
	Total	70327.000	70211.000	209815.100
B	Segment Results
	Treasure / operations	1682.900	929.600	3922.600
	Retail Banking Operations	1054.900	210.900	1989.000
	Wholesale Banking Operations	(807.300)	550.900	1303.400
	Other Banking Operations	0.000	0.000	0.000
	Unallocated	(303.800)	(606.000)	(915.500)
	Total	1626.700	1385.400	6299.500
c	Income Tax	250.200	356.300	1977.900
d	Net Profit	1376.500	1029.100	4321.600
	Other Information
e	Segment Assets
	Treasure / operations	1037861.100	1004356.000	1037861.100
	Retail Banking Operations	737067.500	706573.300	737067.500
	Wholesale Banking Operations	1184264.400	1141080.800	1184264.400
	Other Banking Operations	0.000	0.000	0.00
	Unallocated	45346.500	46937.000	45346.500
	Total	3004539.500	2898947.100	3004539.500
	Segment Liabilities
	Treasure / operations	1040069.800	1006460.700	1040069.800
	Retail Banking Operations	687262.00	657086.900	687262.200
	Wholesale Banking Operations	1104240.600	1061162.600	1104240.600
	Other Banking Operations	0.000	0.000	0.000
	Unallocated	5138.800	7720.200	5138.800
	Capital Employed	167828.300	166516.700	167828.300
	Total	3004539.500	289897.100	3004539.500

NOTE:

The above Financial Results have been approved by the Board of Directors of the Bank at its meeting held on February 04, 2015. The results have been subjected to "Limited Review" by the Statutory Central Auditors of the Bank.

There has been no change in the accounting policies followed during the quarter / nine months period ended December 31, 2014 as compared to those followed in the preceding financial year ended March 31, 2014.

The Financial Results for the quarter / nine months period ended December 31, 2014 have been arrived at after considering provision for Non-Performing Assets, Standard Assets, Investment Depreciation as per Prudential Norms issued by the Reserve Bank of India and other usual and necessary Provisions.

Based on financial statements and the declaration received from the borrowers, the Bank has assessed and provided the liability of Rs. 213.700 Million as on 31.12.2014 towards Unhedged Foreign Currency Exposure to their constituents in terms of Reserve Bank of India Circular dated January 15, 2014 and dated June 03, 2014.

In accordance with circular dated 09.02.2011, issued by the Reserve Bank of India, the Bank has opted to amortise the additional liability on account of re-opening of Pension option for existing employees who have not opted for pension earlier, as well as the liability on enhancement in Gratuity limit, over a period of five years beginning with the financial year ended March 31, 2011. Accordingly, out of the unamortized amount, the Bank has amortized of Rs. 600.000 Million for pension and Rs. 138.500 Million for Gratuity being proportionate amount for the quarter ended December 31, 2014 (Rs. 1800.000 Million for pension and Rs. 415.500 Million for Gratuity for the nine months ended December 31, 2014) .The balance amount to be amortized in future period is Rs. 738.500 Million.

In terms of Reserve Bank of India circular dated July 01, 2013, banks are required to make Pillar 3 disclosures under Basel III Capital Regulations. The disclosures are being made available on the bank’s website. The disclosures have not been subjected to limited Review by the Statutory Central Auditors of the Bank.

The Bank has recognized Treasury operations, Corporate / Wholesale Banking and Retail Banking as primary reporting segments. There are no secondary reporting segments.

The Provision coverage ratio (PCR) as at December 31, 2014 is 54.51% .

Status of Investors Complaints

Complaints at the beginning of the quarter	Received during the quarter	Resolved during the quarter	Pending as on 31.12.2014
NIL	36	36	NIL

Figures of the previous periods / year have been regrouped / reclassified wherever considered necessary to confirm to current year’s classification.

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 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.63.20
UK Pound	1	Rs.91.01
Euro	1	Rs.69.34

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	KAR
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	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	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.