MIRA INFORM REPORT

 

 

Report No. :

319955

Report Date :

04.05.2015

 

IDENTIFICATION DETAILS

 

Name :

PUNJAB NATIONAL BANK

 

 

Registered Office :

7, Bhikhaiji Cama Place New Delhi - 110066

Tel No.:

91-11-26102303 / 6869 / 8379 / 26196353 / 26108205 / 26196487

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

1895

 

 

Capital Investment / Paid-up Capital :

Rs. 3620.699 Million

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

Subject is Government of India Undertaking Bank.

 

 

Line of Business :

Banking Activities

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (84)

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

USD 1000000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is one of India’s largest nationalized banks in terms of business and number of branches. It is well-established and reputed bank having excellent track record.

 

The rating reflects long track record of operations of the bank supported by strong market position, comfortable capitalization levels, and comfortable liquidity profile of the bank.

 

Trade relations are reported as trustworthy. Payments are reported to be regular as per commitment.

 

In view of proved track record of business operations, 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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Infrastructure Bonds = AAA

Rating Explanation

Highest degree of safety and carry lowest credit risk.

Date

March 25 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.

 

 

LOCATIONS

 

Registered Office :

7, Bhikhaiji Cama Place,  New Delhi – 110607, India

Tel. No.:

91-11-26102303 / 6869 / 8379 / 26196353 / 26108205 / 26196487

Fax No.:

91-11-26876456 / 26108741 / 26160149 / 26196462 / 26176297 / 26102303

E-Mail :

eicmasd@pnb.co.in

cmd@pnb.co.in

Queries Related to Dividends, Mutual Fund: mbd@pnb.co.in

 Queries Related to Follow on Public offer: fpo@pnb.co.in

Queries Related to Retail Internet Banking: jbsretail@pnb.co.in

Queries Related to Corporate Internet Banking: jbscorporate@pnb.co.in

Queries Related to Internet Banking: jbshelpdesk@pnb.co.in

Queries Related to Payments done through Internet: jtdibs@pnb.co.in

Queries Related to RTGS (Real Time Gross Settlement) : rtgs@pnb.co.in

Queries Related to NEFT (National Electronic Fund Transfer): neft@pnb.co.in

Website :

http://www.pnbindia.in

Suggestions Related to further improvement of website: website@pnb.co.in

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. K.R. Kamath

 

Designation :

Director

 

Date of Appointment:

28.10.2009

 

 

 

 

 

 

Name :

Mr. Gauri Shankar

 

Designation :

Director

 

 

 

 

Name :

Mr. K.V. Brahmaji Rao

 

Designation :

Director

 

 

 

Name :

Dr. Ram S. Sangapure

 

Designation :

Director

 

 

 

Name :

Mr. Anurag Jain

 

Designation :

Director

 

 

 

 

Name :

Mr. B.P. Kanungo

 

Designation :

Director

 

 

 

 

Name :

Mr. B.B. Chaudhry

 

Designation :

Director

 

 

 

 

Name :

Mr. M.A Antulay

 

Designation :

Director

 

 

 

 

Name :

Mr. M. N. Gopinaath

 

Designation :

Director

 

 

 

 

Name :

Mr. D.K. Singla

 

Designation :

Director

 

 

 

 

Name :

Mr. Sunil Gupta

 

Designation :

 

 

 

 

 

Name :

Mr. T.C. Jhalanu

 

Designation :

Director

 

 

 

 

Name :

Mr. Dilip Kumar Saha

 

Designation :

Director

 

 

 

 

Name :

Mrs. Aradhana Misra

 

Designation :

Director

 

 

 

 

Name :

Mr. G.P. Khandelwal

 

Designation :

Director

 

 

 

KEY EXECUTIVES

 

Name :

Mr. Bhupinder Singh Passi

Designation :

General Manager

 

 

Name :

Mr. G.s Gusain

Designation :

General Manager

 

 

Name :

Mr. Shiv Kumar Gupta

Designation :

General Manager

 

 

Name :

Mr. H.K. Rai

Designation :

General Manager

 

 

Name :

Mr. Farid Aktar

Designation :

General Manager

 

 

Name :

Mr. Kiran Grover

Designation :

General Manager

 

 

Name :

Mr. P.K. Sharma

Designation :

General Manager

 

 

Name :

Mr. S.K. Mohanty

Designation :

General Manager

 

 

Name :

Mr. Vinay Kumar

Designation :

General Manager

 

 

Name :

Mrs. Sushma Bali

Designation :

General Manager

 

 

Name :

Mr. A.K. Verma

Designation :

General Manager

 

 

Name :

Mr. R. Subramania Kumar

Designation :

General Manager

 

 

Name :

Mr. S.K. Goyal

Designation :

General Manager

 

 

Name :

 Mr. K. Ram Mohan

Designation :

General Manager

 

 

Name :

Mr. G.S. Chauhan

Designation :

General Manager

 

 

Name :

Dr. Rakesh Gupta

Designation :

General Manager

 

 

Name :

Mr. N.K Arora

Designation :

General Manager

 

 

Name :

Mr. Himanshu Joshi

Designation :

General Manager

 

 

Name :

Mr. G. Raj Kumar

Designation :

General Manager

 

 

Name :

Mr. V.K. Kathuria

Designation :

General Manager

 

 

Name :

Mr. S.K. Mallick

Designation :

General Manager

 

 

Name :

Mr. V.K. Bhatia

Designation :

General Manager

 

 

Name :

Mr. P.K. Mohapatra

Designation :

General Manager

 

 

Name :

Mr. Anil Mahajan

Designation :

General Manager

 

 

Name :

Mr. Kamal Prasad

Designation :

General Manager

 

 

Name :

Mr. J.K. Gupta

Designation :

General Manager

 

 

Name :

Mr. S.S Bhatia

Designation :

General Manager

 

 

Name :

Mr. Dhaneswar Sahoo

Designation :

General Manager

 

 

Name :

Mr. D.K. Jain

Designation :

General Manager

 

 

Name :

Mr. Y.K. Barar

Designation :

General Manager

 

 

Name :

Mr. B.M. Panda

Designation :

General Manager

 

 

Name :

Mr. Rajeev Raizada

Designation :

General Manager

 

 

Name :

Mr. M.K. Pangtey

Designation :

General Manager

 

 

Name :

Mr. Sanjiv Sharan

Designation :

General Manager

Name :

Mr. V.P. Jain

Designation :

General Manager

 

 

Name :

Mr. Harpal Singh

Designation :

General Manager

 

 

 

 

Name :

Mr. K. Thyagarajan

 

Designation :

General Manager

 

 

Name :

Mr. K.K. Aravindakshan

Designation :

General Manager

 

 

Name :

Mr. A.C. Chugh

Designation :

General Manager

 

 

Name :

Mr. S.R. Sharma

Designation :

General Manager

 

 

Name :

Mr. A.K. Gupta

Designation :

General Manager

 

 

Name :

Mr. B.P. Ray

Designation :

General Manager

 

 

Name :

Mr. Rakesh Kumar

Designation :

General Manager

 

 

Name :

Mr. N.K Singhal

Designation :

General Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2014

 

Category of Shareholder

  Total No. of Shares

Percentage of Holding

As a % of (A+B+C)

(A) Shareholding of Promoter and Promoter Group

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

1065840595

58.87

http://www.bseindia.com/include/images/clear.gifSub Total

1065840595

58.87

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

1065840595

58.87

(B) Public Shareholding

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

110329679

6.09

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

2939105

0.16

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

309800

0.02

http://www.bseindia.com/include/images/clear.gifInsurance Companies

238464801

13.17

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

313863130

17.34

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

11135

0.00

http://www.bseindia.com/include/images/clear.gifForeign Financial Institutions / Banks

11135

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

665917650

36.78

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

12357779

0.68

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

59424907

3.28

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1625090

0.09

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

5183609

0.29

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

322827

0.02

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

4715

0.00

http://www.bseindia.com/include/images/clear.gifClearing Members

2415823

0.13

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

975474

0.05

http://www.bseindia.com/include/images/clear.gifForeign Nationals

330

0.00

http://www.bseindia.com/include/images/clear.gifTrusts

1464440

0.08

http://www.bseindia.com/include/images/clear.gifSub Total

78591385

4.34

Total Public shareholding (B)

744509035

41.13

Total (A)+(B)

1810349630

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

1810349630

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Banking Activities.

 

 

Products :

Not Available

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

 

GENERAL INFORMATION

 

Suppliers :

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

Not Divulged 

 

 

Bankers :

Banker Name

Not Divulged

Branch Address

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

 

Facilities :

(Rs. In Millions)

SECURED LOAN

As on

31.03.2014

As on

31.03.2013

Long Term Borrowing

 

 

Reserve Bank of India

141080.000

57000.000

Other Bank

10735.445

5834.820

Other Institution

8447.820

11760.693

 

 

 

Total

160263.265

74595.513

 

Auditors 1 :

 

Name :

Borkar and Muzumdar

Chartered Accountants

Auditors 2 :

 

Name :

G. S. Madhava Rao and Company

Chartered Accountants

 

 

Auditors 3 :

 

Name :

Phillipos and Company

Chartered Accountants

 

 

Auditors 4 :

 

Name :

K N Gutgutia and Company

Chartered Accountants

 

 

Auditors 5 :

 

Name :

CVK and Associates

Chartered Accountants

 

 

Auditors 6 :

 

Name :

Ramesh Kapoor and Company

Chartered Accountants

Auditors 4 :

 

Name :

K N Gutgutia and Company

Chartered Accountants

 

 

Auditors 5 :

 

Name :

CVK and Associates

Chartered Accountants

 

 

Auditors 6 :

 

Name :

Ramesh Kapoor and Company

Chartered Accountants

 

 

Membership:

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiaries :
  • PNB Gilts  Limited
  • PNB Housing Finance  Limited
  • Punjab National Bank (International)  Limited, UK
  • PNB Investment Services  Limited
  • Druk PNB Bank Limited, Bhutan.
  • PNB Insurance Broking Private Limited.
  • PNB Life Insurance Company  Limited
  • JSC SB PNB Kazakhstan

 

 

Associates :
  • Everest Bank Limited, Nepal
  • Principal PNB Asset Management Company Private Limited
  • Principal Trustee Company Private Limited
  • Assets Care and Reconstructions Enterprise  Limited
  • India Factoring and Finance Solutions Private Limited
  • PNB Metlife India Insurance Company  Limited
  • Madhya Bihar Gramin Bank.
  • Haryana Gramin Bank
  • Himachal Gramin Bank, Mandi
  • Punjab Gramin Bank
  • Rajasthan Gramin Bank
  • Sarva UP Gramin Bank

 

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3000,00,00,000

Equity Shares

Rs.10/- each

Rs. 30000.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

36,20,69,926

Equity Shares

Rs.10/- each

Rs. 3620.699 Million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

Capital

3620.699

3534.734

3391.786

Reserves and Surplus

355332.490

323234.295

274762.396

Deposits

4513967.466

3915600.633

3795884.792

Borrowings

480344.099

396209.246

372642.705

Other Liabilities & Provisions

150934.399

    150898.431

135241.793

TOTAL

5504199.153

4789477.339

4581923.472

 

 

 

 

 

 

 

 

Cash & Balances with Reserve Bank of India

222455.799

178862.497

184928.960

Balances with Banks & money at Call & Short Notice

229728.656

92491.329

103351.375

Investments

1437855.016

1298961.914

1227030.238

Advances

3492691.232

3087959.062

2937747.567

Fixed Assets

34197.440

33576.774

31688.611

Other Assets

87271.010

97625.763

97176.721

TOTAL

5504199.153

4789477.339

4581923.472

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

Interest Earned

432232.542

418858.232

364761.304

Other Income

45767.113

42159.227

42026.043

TOTAL

477999.655

461092.519

406787.347

 

 

 

 

Interest expended

270772.807

270368.241

230616.907

Operating Expenses

93382.313

81650.545

70027.511

Provisions & Contingencies

80418.833

61597.018

57300.885

TOTAL

444573.953

413615.804

357945.303

 

 

 

 

PROFIT- Net Profit for the period

33425.702

47476.715

48842.044

Add: Balance in Profit and Loss account

0.000

0.000

0.000

Profit available for appropriation

33425.702

47476.715

48842.044

 

 

 

 

Appropriations

 

 

 

Transfer to:

 

 

 

Statutory Reserve

8356.426

11869.179

12210.511

Capital Reserve

465.831

303.526

330.207

Revenue and Other Reserve

18096.102

23108.899

26345.208

Dividend @ 270% proposed for the year 2012-13

(@220% paid for the year 2011-12)

 

0.000

 

9543.781

 

7461.931

Interim Dividend@ 100% of paid up capital

3620.699

0.000

0.000

Tax on Dividend proposed for the year 2013-14

615.338

1621.965

7461.931

Balance Transferred from provision for Tax on Dividend

 

(286.94)

 

(30.635)

 

(78.824)

Special reserve as per Income Tax Act

2300.000

1060.000

1362.500

Balance in Profit & Loss Account

0.000

0.000

0.000

TOTAL

33425702

47476.715

48842.044

 

 

 

 

Earning per Share (Rs.) (Basic/Diluted)

93.91

139.52

154.02

 

 

QUARTERLY / SUMMARISED RESULTS

 

Particulars (Rs. Million)

Sep 2014

Dec 2014

 

1st Quarter

2nd Quarter

Audited / UnAudited

UnAudited

UnAudited

Interest Earned

11,46.209  

11,61.406  

Income On Investments

2,60.920  

2,61.163  

Interest On Balances With Rbi Other Inter Bank Funds

13.733  

21.143  

Interest / Discount On Advances / Bills

8,65.417  

8,73.576  

Others

6.139  

5.524  

Other Income

1,55.837  

1,29.079  

Total Income

13,02.046  

12,90.485  

Interest Expended

7,31.089  

7,38.097  

Operating Expenses

2,83.354  

2,77.315  

Total Expenditure

2,83.354  

2,77.315  

Operating Profit Before Provisions and Contingencies

2,87.603  

 2,75.073  

Exceptional Items

                       0.000

                    0.000

Provisions and contingencies

1,76.793  

1,46.777  

Profit Before Tax

1,10.810  

1,28.296  

Tax

53.276  

50.840  

Profit After Tax

57.534  

77.456  

+/- Extraordinary Items

                       0.000

                   0.000

+/- Prior period items

                       0.000

                    0.000

Net Profit

5,75.340  

7,74.560  

 

 

 

 

 

 

 

 

 

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

3391.786

3534.734

3620.699

Reserves & Surplus

274762.396

323234.295

355332.49

Net worth

278154.182

326769.029

358953.189

 

 

 

 

Total borrowings

480344.099

396209.246

372642.705

Debt/Equity ratio

1.727

1.213

1.038

 

 

 

 

 

 

 

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

364761.304

418858.232

432232.542

 

 

14.831

3.193

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

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

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

----------------------

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

No

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

No

 

Note:

OPERATIONAL HIGHLIGHTS

• The Bank has received approval from regulator for adoption of Foundation Internal Rating Based Approach (FIRB) for Credit Risk on parallel run basis. Further, the Bank has also submitted formal Letter of Intent for adoption of Internal Models Approach for Market Risk.

 

• The Bank has submitted formal application to RBI for in-principle approval for parallel run of Advanced Management Approach (AMA) for Operational Risk on 22.03.2014.

 

• The Bank has put in place New Automated PMS (Preventive Monitoring System) for all borrowal accounts having exposure of more than Rs.10.000 Million all branches.

 

• The Bank launched a Special NPA Reduction Campaign from 1st December, 2013 up to 31st March, 2014. The campaign is a recovery drive to maintain the focus of the Bank on improvement in asset quality. Progress of this is being monitored on daily basis

 

• The Bank launched a ‘PPF campaign’ for the first time from1st January, 2014 to 31st March, 2014 to augment and create vibrancy in PPF business. Further to augment fee based income, E-freight and E-stamping products initiated during the year.

 

• To facilitate real time credit into the accounts of PNB Customers, the Bank has entered into an arrangement with

UAE Exchange under FLASH Remit. Indian expatriates who have account with the Bank can credit money in their

Accounts on real-time basis.

 

• In view of the shortcomings experienced in the off-line technology of Technical Services Providers (TSPs) and Business Correspondents (BCs) to strengthen the financial inclusion initiative, the Bank has moved ahead and acquired its own technology of Kiosk Banking Solution (KBS) where BC services are available on-line mode. All transactions are now in real time on-line in Core Banking Solution (CBS).

 

• Under Operational Transformation Exercise, the Bank introduced Pragati Productivity Points (PPP) system to Measure productivity and efficiency in all domestic general banking branches. This is a unique initiative of its kind by any bank, which provides a comprehensive metric for measuring branch performance and productivity across branches with diverse transaction profiles.

 

Management Discussion and Analysis

 

Global Economic Environment

The global economic environment remained challenging for third straight year in 2013. Global output growth remained flat at 3% in 2013 compared to 3.1% in 2012. However, the global economic scenario turned better during the second half of 2013 recording a growth of 3.66% compared with 2.66% growth during the first half of 2013. Advanced Economies: Growth in Advanced Economies (AEs) remained stagnant at 1.4% in 2013 compared to 1.3% in 2012. Among AEs, U.S. economy grew at 1.9% in 2013, led by healthy domestic demand, export growth and employment growth. Improvement in economic condition in US created space for fiscal consolidation in the form of Quantitative Easing. (QE) In the stressed European Union economies (EU), growth remained fragile as high debt and financial fragmentation held back domestic demand and thus industrial growth. However, growth scenario in the European Union improved marginally from (-) 0.7% in 2012 to (-) 0.4% in 2013. Emerging Market and Developing Economies: The Emerging Market & Developing Economies (EMDEs) recorded growth of 4.7% in 2013 a tad lower than 4.9% in 2012. Recovery in large EMDEs stayed moderate because of supply side constraints, tight monetary policies and tightening of financial conditions with Tapering by US. Economic activity in Asia picked up speed in the second half of 2013, as exports to advanced economies accelerated. Exports, particularly to the United States and the euro area, have gained momentum. After initial weakness, China managed to regain its growth momentum in the second half of 2013 led by government led investment and achieved growth of 4.7% in 2013. Japan recorded a healthy GDP growth of 1.7% in 2013 driven by government led investment, robust domestic demand and late revival of global demand conditions. To sum up, considering gradual revival of EU, US and some developing countries, International Monetary Fund (IMF) has projected a better global economic growth of 3.7% in 2014. However, downside risks to global growth still persist. Policymakers in advanced economies need to avoid a premature withdrawal of monetary accommodation. In an environment of continued fiscal consolidation, still-large output gaps, and very Low inflation, monetary policy should remain accommodative. Similarly, in Emerging Market & Developing Economies, the policy makers need to tackle high inflation, fiscal deficit and currency volatility. These measures will infuse investors’ confidence and then promote economic growth in EMDEs.

 

Domestic Economic Environment

 

Indian economy entered into its third straight year of economic deceleration in Financial Year 2013-14. Gross Domestic Product (GDP) of the country decelerated to 4.5% in FY’13 from 8.40% in FY’11. The downward spiral of growth impeded investment activities which had profound effect on India’s potential growth. Growth concerns remain significant with Index of Industrial Production (IIP) growth stagnating for two successive years. The IIP growth for FY’14 stands at (-) 0.1% compared with 1.1% during the same period in the previous year. Legal turbulence involving mining sector not only damaged output of the sector but also affected other sectors by disrupting supply of fuel and power. Stalled projects, prevalence of high inflation and resultant elevated level of inflation combined with subdued consumption demand in India and abroad have resulted in a low industrial Growth in FY’14. Amid environment of weak manufacturing growth, it is the reasonable growth in agriculture and services sector that pushed up the GDP growth in second and third quarter of FY’14 to a respectable level of 4.8% & 4.7% respectively. The second half (H2) of FY’14 witnessed proactive monetary and fiscal management by authorities in sync with each other resulting in deficit targets (Current Account and Fiscal Deficit) being largely met. Inflation remained elevated throughout the financial year keeping interest rates up across all the market segments. Supply-side shocks to inflation from food articles have become frequent and price rise cycles are getting elongated. Durable recovery in the economy remains contingent on addressing persistently high inflation, and removing bottlenecks facing the mining and infrastructure sectors.

 

 

Banking Scenario

 

The banking industry witnessed a challenging time during 2013-14 like that of the economy. Liquidity condition remained tight in the banking system throughout the financial year. Further, intensive liquidity tightening measures were resorted to rein in exchange rate volatility in July 2013 by increasing the Marginal Standing Facility (MSF) rate, increasing ceiling on daily maintenance of Cash Reserve Ratio (CRR) and curtailing liquidity available under the Liquidity Adjustment Facility (LAF) repo window. While deliberately keeping liquidity tight, banks were enabled to avail the funds via term repo window of various tenures & MSF at a higher interest rate for better transmission of monetary policy measures. Market (MTM) losses to the banks. However, Reserve Bank of India allowed banks to amortize the MTM losses spread equally over the three quarters of FY’14. At the same time, RBI also allowed banks to maintain Held to Maturity (HTM) category bonds at 24.5% as against the earlier decision to bring it down to 23% by March’14, transfer securities qualifying for Statutory Liquidity Ratio (SLR) holding to the HTM category from Available for Sale (AFS) category and one time option to value those securities according to the yield on July 15, 2013. Asset quality continues to be a major concern for Scheduled Commercial Banks (SCBs). The Gross Non-Performing Assets (GNPA) ratio of SCBs increased to 4.2 % as at end September 2013 from 3.4 % of March 2013. The restructured standard advances also increased to 6.0 % of total advances as at end September 2013 from 5.8% of March 2013. Overall the stressed advances rose significantly to 10.2% of total advances as at end September 2013 from 9.2 % of March 2013. Indian banks in FY’14 adopted Basel III norms w.e.f. 01.04.2013 to strengthen their risk management practices and resilience. However, extended economic slowdown posed challenges to banks’ profitability and raising the additional capital to meet Basel III requirements. Hence, Reserve Bank of India, on 27th March 2014 extended the transition period for full implementation of Basel-III Regulations in India by one year from March 31, 2018 to March 31, 2019, closer to the internationally agreed date of January 1, 2019. Going ahead, as the economy is poised to bounce back to the growth path, business environment is expected to improve in FY 2014-15.

 

UNSECURED LOAN

(Rs. In Million)

Particulars

As on

31.03.2014

As on

31.03.2013

Long Term Borrowing

 

 

Tier -I Bonds

20205.000

20205.000

Upper Tier-II Bonds

66100.000

66100.000

Subordinate debts for Tier II Capital

29998.000

22648.000

Borrowing outside India

203777.834

212660.733

Total

320080.834

321613.733

                                      

 

CONTINGENT LIABILITIES

(Rs. in Millions)

Particular

31.03.2014

31.03.2013

Claims against the Bank not acknowledged as debts

1786.882

1885.412

Disputed income tax and interest tax demands under appeals, references, etc.

8006.777

8072.745

Liability for partly paid investments

0.115

0.115

Liability on account of outstanding forward exchange contracts

1311706.684

1383479.570

Guarantees given on behalf of constituents:

 

 

In India

281499.560

251736.852

Outside India

118048.218

153991.101

Acceptances, endorsements and other obligations

436739.328

337689.384

Other items for which the Bank is contingently liable

4960.226

5936.046

 

 

 

LITIGATION DETAILS:

 

CORAM:
  
HON'BLE MR. JUSTICE J.R. MIDHA
  
O R D E R
 27.02.2015
 

CM 3679/2015
 

Allowed subject to just exceptions.
  
  RFA 128/2015
  
  1. Issue notice to the respondent as well as respondent?s counsel before the Trial Court by ordinary
      mode as well as dasti, returnable on 24th April, 2015. The name and particulars of the respondent?s      
      counsel be mentioned on the process fee form.
    
  
  2. The Trial Court record be requisitioned through a special messenger before the next date of hearing.
  
  3. The competent officer of the respondent shall remain present in Court on the next date of hearing
       along with all relevant relating to this case within their power and possession.
  
  4. Copy of this order be sent to the respondent along with the notice.
  
   J.R. MIDHA, J.
  
   FEBRUARY 27, 2015/dk

  

 

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

 

FIXED ASSETS

  • Premises
  • Computer Software

 

 

FINANCIAL RESULTS (REVIEWED) FOR THE QUARTER/NINE MONTHS ENDED 31st DECEMBER 2014

 

S. No.

 

 

Particulars

 

 

Quarter Ended

Quarter Ended

  Nine Month

  Ended

31.12.2014

30.09.2014

31.12.2014

Reviewed

Reviewed

Reviewed

1.

Interest Earned ( a+b+c+d )

11,61.406  

11,46.209  

3466484

 

a) Interest/discount on advances/bills

873.576

865.417

2622.567

 

b) Income on Investments

261.163

260.920

781.936

 

c) Interest on Balances with RBI & other Inter Bank Funds

21.143  

13.733  

44.128

 

d) Others

5.524

6.139

17.853

2.

Other Income

1,29.079  

1,55.837  

408.560

3.

TOTAL INCOME (1+2)

12,90.485  

13,02.046  

3875.044

4.

Interest Expended

7,38.097  

7,31.089  

2190.085

5.

Operating Expenses (i+ii)

2,77.315  

2,83.354  

809.753

 

(i) Employees' Cost

202.858

203.408

583.004

 

(ii) Other operating expenses

74.457

79.946

226.749

6.

TOTAL EXPENSES (4+5)

(excluding provisions & contingencies)

1015.412

1014.443

2999.838

7.

Operating Profit (3-6)

(Profit before Provisions & Contingencies)

275.073

287.603

875.206

8.

Provisions (other than tax) and contingencies

146.777

176.793

416.331

9.

Exceptional items

0

0

0

10.

Profit (+)/Loss (-) from ordinary activities before tax (7-8+9)

128.296

110.810

458.875

11.

Tax Expense

50.840

53.276

183.373

12.

Net Profit (+)/Loss(-) from ordinary activities after tax (10-11)

77.456

57.534

275.502

13.

Extraordinary items (net of tax expense)

0

0

0

14.

Net Profit (+)/Loss(-) for the period (12-13)

77.456

57.534

275.502

15.

Paid up equity Share Capital (Face value Rs.10/-)

36.207

36.207

3.627

16.

Reserves excluding revaluation reserves(As per Balance sheet of previous year)

3412.507

3412.507

3412.507

17.

Analytical Ratios

 

 

 

 

(i) Share holding of Govt. of India (%)

58.87

58.87

58.87

 

(iia) Capital Adequacy Ratio (%) as per Basel-II

12.25

12.25

12.25

 

(iib) Capital Adequacy Ratio (%) as per Basel-III

11.54

11.79

11.54

 

(iii) Earnings per Share (EPS) not annualized in Rs.

 

 

 

 

(a) Basic & diluted EPS before extraordinary items

4.28

3.18

15.22

 

(b) Basic & diluted EPS after extraordinary items

4.28

3.18

15.22

 

(iv) NPA Ratios:

 

 

 

 

(a) Amount of gross non-performing assets

2221.143

2075.189

2221143

 

(b) Amount of net non-performing assets

1378.776

1161.777

1378.776

 

(c) % of gross NPAs

5.97

5.65

5.97

 

(d) % of net NPAs

3.82

3.26

3.82

 

(v) Return on Assets ( Annualised) %

0.53

0.40

0.64

18.

Public Shareholding

 

 

 

 

(i) No. of Shares

744509035

744509035

744509035

 

(ii) Percentage of Share holding

41.13

41.13

41.13

19.

Promoters and Promoter Group Share Holding

 

 

 

a)

Pledged/Encumbered

 

 

 

 

--Number of shares

-

-

-

 

--Percentage of shares(as % of the total shareholding of promoter & promoter group)

-

-

-

 

--Percentage of shares(as % of the total share capital of the bank)

-

-

-

b)

Non-Encumbered

-

-

-

 

--Number of shares

1065840595

1065840595

1065840595

 

--Percentage of shares(as % of the total shareholding of promoter & promoter group)

100

100

100

 

--Percentage of shares(as % of the total share capital of the bank)

58.87

58.87

58.87

 

 

SEGMENT REPORTING FOR THE QUARTER/NINE MONTHS ENDED 31st DECEMBER 2014

 

Sr. No.

 

 

Particulars

 

 

Quarter Ended

Quarter Ended

Nine Months Ended

31.12.2014

30.09.2014

31.12.2014

Reviewed

Reviewed

Reviewed

1

Segment Revenue

 

 

 

 

(a) Treasury Operations

317.825

305.972

92.112

 

(b) Corporate/Wholesale Banking

590.038

623.576

1824.336

 

(c) Retail Banking

369.688

361.546

1094.509

 

(d) Other Banking Operations

12.934

10.952

34.787

 

Total Revenue

1290.485

1302.046

3875.044

2

Segment Results

 

 

 

 

(a) Treasury Operations

19.219

10.278

53.725

 

(b) Corporate/Wholesale Banking

179.429

195.117

577.221

 

(c) Retail Banking

112.707

113.040

346.304

 

(d) Other Banking Operations

3.964

3.426

11.007

 

Total

315.319

321.861

988.257

3

Unallocated Expenditure

40.247

34.257

113.051

4

Operating Profit

146.776

176.794

416.331

5

Provision for Tax

128.296

110.810

458.875

6

Extraordinary items

50.840

53.276

183.373

7

Net profit

0.000

-

-

8

Segment Assets

77.456

57.534

275.502

 

(a) Treasury Operations

15169.195

15126.794

15169.195

 

(b) Corporate/Wholesale Banking

28175.002

27768.497

28175.002

 

(c) Retail Banking

12769.906

12310.640

12769.906

 

(d) Other Banking Operations

1034.056

1070.159

1034.056

 

(e) Unallocated

337.853

353.041

337.853

 

Total

57486.012

56629.131

57486.012

9

Segment Liabilities

 

 

 

 

(a) Treasury Operations

14233.204

14203.832

14233.204

 

(b) Corporate/Wholesale Banking

26436.509

26074.200

26436.509

 

(c) Retail Banking

11981.959

11559.504

11981.959

 

(d) Other Banking Operations

970.251

1004.863

970.251

 

(e) Unallocated

0.331

0.331

0.331

 

Total

53622.254

52842.730

53622.254

10

Capital Employed

 

 

 

 

(a) Treasury Operations

935.991

922.962

935.991

 

(b) Corporate/Wholesale Banking

1738.493

1694.297

1738.493

 

(c) Retail Banking

787.947

751.136

787.947

 

(d) Other Banking Operations

63.805

65.296

63.805

 

(e) Unallocated

337.522

352.710

337.522

 

Total Capital Employed

3863.758

3786.401

3863.758

 

Note : 

 

  1. Segment Liabilities are distributed in the ratio of their respective Segment Assets.
  2. Figures of the previous period have been re-grouped/re-classified wherever necessary to make them comparable.

 

SUMMARISED BALANCE SHEET

(Rs. In Millions)

Particulars

As at Dec 2014

 

( Reviewed)

Capital and Liabilities

 

Capital

3620.700

Reserves and Surplus

382755.100

Deposits

4841381.100

Borrowings

342276.400

Other Liabilities and Provisions

178567.900

Total

 05748601.200

Assets

 

Cash and Balances with Reserve Bank of India

206063.900

Balances with bank and Money at call and short notice

337534.300

Investments

1431909.600

Advances

3624958.800

Fixed Assets

34592.900

Other assets

113541.700

Total Assets

5748601.200

 

NOTES:

 

1. The financial results for the quarter and nine months ended December 31, 2014, have been prepared following           the same accounting policies and practices as those followed in the annual financial statements for the year ended March 31, 2014 except the policy for sale of financial assets regarding treatment of loss and profit made on sale of accounts in terms of RBI circular no. DBOD.BPBC. No. 98/21.04.132/231-14 dated 26.02.2014. However, there was no impact on profit due to change in policy, during the nine months ended on December31, 2014.

2. The above financial results have been reviewed by the Audit Committee of Board in the meeting held on February 02, 2015 and approved by the Board of Directors in the meeting held on February 03, 2015. The same have been subjected to a limited review by the Statutory Central Auditors of the bank, in line with the guidelines issued by the Reserve Bank of India and as per the requirement of listing agreement with Stock Exchanges.

3. The Board of Directors of the Bank at the Board Meeting held on September 19, 2014 approved the sub division (split) of equity share of the Bank from nominal value of Rs. 10/- each into five equity shares of nominal value of Rs. 2/- each. The record date for the sub-division was December 19, 2014. Information in the financial

 Results reflects the effect of sub-division (split) retrospectively.


4. The provision for non-performing assets, standard assets, standard derivative exposures and investment depreciation has been made on the basis of extant guidelines on prudential norms for income recognition, asset classification and provisioning issued by the Reserve Bank of India.



5. Provisions for employee benefits pertaining to pension, gratuity and leave encashment have been made on actuarial valuation basis. All other usual and necessary provisions including wage revision and income tax have

Been made on estimated basis.


6. In terms of RBI circular no. DBOD.BP.BC.2/21.06.201/2013-14 dated July 01, 2013 banks are required to make Pillar 3 disclosures under BASEL III capital regulations. These disclosures have not been subjected to Limited Review.

7. In accordance with guidelines issued by Reserve Bank of India vide Notification No. DBOD.No.BP.BC.80/21.04.018/2010-11 dated February 09, 2011, an amount of Rs. 1661.800 Million has been charged to Profit & Loss account during the current quarter (Rs. 4985.400 Million. for nine months ended December 31, 2014) towards the amortization relating to enhancement in Gratuity limit and re-opening of pension option for existing employees. Unamortized liability carried forward Rs. 1661.8 Million shall be charged proportionately in accordance with the said RBI guidelines.


8. The Provision Coverage Ratio as at December 31, 2014 works out to 57.27%.

9.  Position of complaints from investors as on 30.06.2013:

      

At the beginning

Received

Disposed off

Pending

0

8

8

0

          

10. Figures of the previous period have been regrouped / rearranged / re-classified wherever necessary to conform to current period’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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                                       None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

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

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.97.98

Euro

1

Rs.70.53

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

RKI

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

10

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

10

--PROFITABILITY 

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

10

--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

 

84

 

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.