|
|
|
MIRA INFORM REPORT
|
Report No. : |
497459 |
|
Report Date : |
13.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
BANK OF INDIA |
|
|
|
|
Registered
Office : |
Oriental
Building, Espanade Road, Mumbai - 400051, Maharashtra |
|
Tel. No.: |
91-22-66684444 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
07.09.1906 |
|
|
|
|
Com. Reg. No.: |
11-000243 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 10554.342 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U99999MH1906PLC000243 |
|
|
|
|
IEC No.: |
Not Divulged |
|
|
|
|
GST No.: |
Not Divulged |
|
|
|
|
TIN No.: |
Not Divulged |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Divulged |
|
|
|
|
Legal Form : |
A Public Limited Liability Bank. The Bank’s Shares are Listed on the
Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged
in Providing a wide range of Banking and Financial Services. (Registered
Activity) |
|
|
|
|
No. of Employees
: |
Information declined by the Management |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A++ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Bank of India (BOI) was incorporated in 1906 and was under private
ownership and control till July 1969 when it was nationalized along with 13
other banks. Government of India holds 70.13% stake in the bank as on
December 31, 2015. The bank has a network of 5,084 branches and 7,807 automated teller
machines across India. A significant number of its branches cater to the
rural and semi-urban areas. The bank has a strong presence in the corporate
segment with the bulk of its business and earnings coming from the larger
corporate clients. The rating takes into account on higher than anticipated stress and
slower than expected pace of recovery has impacted the earnings profile of
the bank marked by the loss in FY-17. In above challenges highlighted has higher exposer of BOI’s to
stressed sectors, its asset quality indicators are likely to remain weak over
the next few years. Rating also factors the large deposit base, and a comfortable low-cost
deposit mix driven largely by its strong presence in rural and semi-urban
areas. These strengths are expected to continue over the medium term. The rating reflects the strong expectation of support from majority
owner, the Government of India (GoI), established market position and
comfortable resource profile. These strengths are partially offset by the
weak asset quality and earnings profile. Payment seems regular and as per commitments. In view of aforesaid, the bank can be considered good for business
dealings at usual trade terms and conditions. NOTE: As per the
current press release, it’s not just Bank of Baroda that’s in trouble on
account of the Gupta brothers in South Africa. Bank of India, too, may face
some heat after having lent Rand INR 38.5 million to two Gupta promoted
companies, which have filed for insolvency. Mr. Dinabandhu Mohapatra, CEO of
Bank of India, accepted that the bank has exposure to the two Gupta companies
in South Africa. Experts said even though Bank of India’s loans are backed
fully, the recovery of dues will take time. In the interim, since the
companies have filed for insolvency, Bank of India will have to classify the
loans as non-performing assets and set aside funds as provisions. |
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 |
CRISIL |
|
Rating |
Long-term bank facilities: AA+ |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
25.01.2018 |
|
|
|
|
Rating Agency Name |
CRISIL |
|
Rating |
Short-term bank facilities: A1+ |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk |
|
Date |
25.01.2018 |
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial Reconstruction)
list as of 13.03.2018.
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
[Contact No: 91-22-66684444]
LOCATIONS
|
Registered Office : |
Oriental
Building, Espanade Road, Mumbai - 400051, Maharashtra, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
Star House, C-5, G
Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra,
India |
|
Tel. No.: |
91-22-66684444/ 66684490 |
|
Fax No.: |
91-22-66684491 |
|
|
|
|
Branch Offices: |
· Domestic - Bank has 5016 Domestic Branches · 32 Representative Offices · 29 Overseas Offices |
DIRECTORS
AS ON: 31.03.2017
|
Name : |
Mr. G. Padmanabhan |
|
Designation : |
Chairman |
|
Profile: |
Mr. G. Padmanabhan is a post graduate
in Economics from the University of Kerala and an MBA (International Banking and
Finance) from the Birmingham University, UK. He joined Reserve Bank of India
in March, 1979 and was elevated as Executive Director on 4th July, 2011 and
he superannuated on 31st May, 2015. During his successful career in RBI, Mr.
Padmanabhan has handled various challenging assignments in the Reserve Bank
of India. As Executive Director in Reserve Bank
of India, Shri Padmanabhan was looking after Department of Information and
Technology, Department of Payment and Settlement Systems and Foreign Exchange
Department. Mr. Padmanabhan has been appointed as
Non-Executive Chairman of Bank of India on 14th August, 2015 for a period of
three years. Mr. Padmanabhan is a keen sportsman and had represented his University and State in Tennis. He continues to play the game to date. |
|
|
|
|
Name : |
Mr. Dinabandhu Mohapatra |
|
Designation : |
Managing Director & CEO |
|
Date of Appointment: |
05.05.2017 |
|
|
|
|
Name : |
Mr. R. A. Sankara Narayanan |
|
Designation : |
Executive Director |
|
|
Mr. R. A. Sankara Narayanan, is a
post graduate in Public Administration. He holds an MBA Degree and acquired
CAIIB. He also has a Diploma in Treasury & Investment Risk Management and
P G Diploma in Personnel Management and Financial Management. He has jointed bank as a direct
recruit officers in 1983. He was elevated as a General Manager of the Bank in
September, 2011 and was overseeing the International Operations of the Bank.
He has worked as Head of Treasury Operations, Zonal Manager, General Manager,
National Banking Group and at Corporate office etc. besides 2 foreign stints
at Tokyo and Singapore. He has taken charge as Executive Director of the Bank
w.e.f. 15th May, 2015. |
|
|
|
|
Name : |
Mr. N. Damodharan |
|
Designation : |
Executive Director |
|
Date of Appointment: |
16.02.2017 |
|
|
|
|
Name : |
Mr. A. K. Das |
|
Designation : |
Executive Director |
|
Date of Appointment: |
17.02.2017 |
|
|
|
|
Name : |
Mr. Girish Chandra Murmu |
|
Designation : |
Govt. Nominee Director |
|
Date of Appointment: |
14.06.2016 |
|
|
|
|
Name : |
Mrs. Anna Roy |
|
Designation : |
Nominee of the Central Government |
|
Date of Appointment: |
14.06.2016 |
|
Profile: |
Ms. Anna Roy, has been appointed by the
Central Government as Government Nominee Director of the Bank w.e.f.
09.09.2015. She has rich experience in banking sector. Prior to her
appointment on the Board of Bank of India, she was on the Board of
Corporation Bank and Dena Bank. Ms. Anna Roy, a Post Graduate in Economics from Delhi School of Economics, was posted as Joint Secretary, Department of Financial Services, Ministry of Finance, New Delhi. Since joining Indian Economic Service in May, 1992, Ms. Roy has worked in various capacities in Planning Commission, Department of Economic Affairs, Department of Pharmaceuticals (Ministry of Chemicals & Fertilizers). She is presently posted at Niti Aayog. |
|
|
|
|
Name : |
Mrs. R. Sebastian |
|
Designation : |
RBI Nominee Director |
|
Date of Appointment: |
26.04.2016 |
|
|
|
|
Name : |
Mr. Neeraj Bhatia |
|
Designation : |
Shareholder Director |
|
|
|
|
Name : |
Mr. Sanjiv Kumar Arora |
|
Designation : |
Shareholder Director |
|
|
|
|
Name : |
Mrs. Veni Thapar |
|
Designation : |
Chartered Accountant |
|
Date of Appointment: |
21.06.2016 |
KEY EXECUTIVES
|
General Managers : |
· K. Selvaraj (CVO) · P. K. Pattanaik · Sanjay Pawar · Shankardas Gupta · S. R. Meena · K. B. Jain · T. Sudhakar · S. K. Kasliwal · S. C. Modi · S. Palanivel · B. K. Mohanty · I.M. Malik · A.K. Azad · D.K. Garg · C. G. Chaitanya · R.S. Chouhan · S.C. Sarangi · Raman K. Sharma · M.K. Gupta · S.S. Banik · K.R. Nair · R.C. Thakur · S.K. Aggarwal · P.A. Joshi · R.K. Mitra · D.P. Mishra Meeruee · Sheela Sail · S.K. Mukherjee · R.P. Gupta · R.M. Kadam · R. Ganesan · M. K. Srivastava · Arvind Verma · Sudhakar Kaimal · Manoj Kapoor · Shanker Iyer · Viswanath Gunta · Swarup Dasgupta · A.K. Arora · S. Ravi Kumar Josyula · S. K. Swain · J. K. Srivastava · A.K. Punn |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2017
|
Category of Shareholder |
Total No. of Shares |
As a % |
|
(A) Promoter and Promoter Group |
889865942 |
75.12 |
|
(B) Public |
294680296 |
24.88 |
|
|
|
|
|
Grand Total |
1184546238 |
100.00 |
Statement showing
shareholding pattern of the Promoter and Promoter Group
|
Category
of shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares (calculated as per SCRR, 1957)As a % of
(A+B+C2) |
|
|
A1) Indian |
0.00 |
|
|
|
Central
Government/ State Government(s) |
88,98,65,942 |
75.12 |
|
|
Government of India |
88,98,65,942 |
75.12 |
|
|
Sub Total A1 |
88,98,65,942 |
75.12 |
|
|
A2) Foreign |
0.00 |
|
|
|
A=A1+A2 |
88,98,65,942 |
75.12 |
|
Statement showing
shareholding pattern of the Public shareholder
|
Category
& Name of the Shareholders |
No.
of fully paid up equity shares held |
Shareholding
% calculated as per SCRR, 1957 As a % of (A+B+C2) |
|
|
|||
|
|||
|
|||
|
B1) Institutions |
0 |
0.00 |
|
|
Mutual Funds/ |
15224518 |
1.29 |
|
|
HDFC Trustee Company Ltd-HDFC Top 200 Fund |
12788313 |
1.08 |
|
|
Foreign
Portfolio Investors |
37617665 |
3.18 |
|
|
Blackrock Global Funds-Asian Dragon Fund |
16388334 |
1.38 |
|
|
Financial
Institutions/ Banks |
13578076 |
1.15 |
|
|
Insurance
Companies |
159982769 |
13.51 |
|
|
LIC of India |
152781603 |
12.90 |
|
|
Any Other
(specify) |
10130839 |
0.86 |
|
|
Sub Total B1 |
236533867 |
19.97 |
|
|
B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual share
capital upto INR 0.200 Million |
41324896 |
3.49 |
|
|
Individual share
capital in excess of INR 0.200 Million |
4335542 |
0.37 |
|
|
NBFCs registered
with RBI |
10422 |
0.00 |
|
|
Any Other
(specify) |
12475569 |
1.05 |
|
|
Bodies Corporate |
5935882 |
0.50 |
|
|
Clearing Members |
1906636 |
0.16 |
|
|
Employees |
1577700 |
0.13 |
|
|
NRI – Non- Repat |
281810 |
0.02 |
|
|
NRI |
2128459 |
0.18 |
|
|
NRI – Repat |
17902 |
0.00 |
|
|
Overseas corporate bodies |
155700 |
0.01 |
|
|
Trusts |
471480 |
0.04 |
|
|
Sub Total B3 |
58146429 |
4.91 |
|
|
B=B1+B2+B3 |
294680296 |
24.88 |
|
BUSINESS DETAILS
|
Line of Business : |
Subject is
engaged in Providing a wide range of Banking and Financial Services.
(Registered Activity) |
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
Not Divulged |
|
|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
|
|
Selling : |
Not Divulged |
|
|
|
|
Purchasing : |
Not Divulged |
PRODUCTION STATUS: (NOT AVAILABLE)
GENERAL INFORMATION
|
Suppliers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Customers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
Information declined by the Management |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Reserve Bank of
India |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
Statutory Auditors 1 : |
|
|
Name : |
Grover Lalla and Mehta Chartered Accountants |
|
|
|
|
Statutory Auditors 2 : |
|
|
Name : |
B Rattan and Associates Chartered Accountants |
|
|
|
|
Statutory Auditors 3 : |
|
|
Name : |
G D Apte and Company Chartered Accountants |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Joint Venture : |
Star Union Dai–Ichi Life Insurance Co. Limited |
|
|
|
|
Subsidiary Companies : |
·
BOI Shareholding Limited ·
BOI AXA Investment Managers Private Limited ·
BOI AXA Trustee Services Private Limited ·
BOI Merchant Bankers Limited ·
PT Bank of India Indonesia Tbk ·
Bank of India (Tanzania) Limited ·
Bank of India (New Zealand) Limited ·
Bank of India (Uganda) Limited ·
Bank of India (Botswana) Limited |
|
|
|
|
Associate Companies : |
·
STCI Finance Limited ·
ASREC (India) Limited ·
Indo-Zambia Bank Limited 4 Regional Rural
Banks sponsored by the Bank · Gramin Bank of Aryavart (Formerly known as Aryavart Kshetriya Gramin Bank) · Jharkhand Gramin Bank · Narmada Jhabua Gramin Bank · Vidharbha Konkan Gramin Bank |
CAPITAL STRUCTURE
AS ON: 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000000 |
Equity Shares |
INR 10/- each |
INR 30000.000 Million |
|
|
|
|
|
Issued and Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1055872204 |
Equity Shares |
INR 10/- each |
INR 10558.722 Million |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1054695104 |
Equity Shares |
INR 10/- each |
INR 10546.951 Million |
|
|
Add: Amount of shares forfeited |
|
INR 7.391 Million |
|
|
|
|
|
|
|
Total |
|
INR 10554.342
Million |
FINANCIAL DATA
[all figures are in
INR Million]
ABRIDGED
BALANCE SHEET [STANDALONE]
|
CAPITAL AND LIABILITIES |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
Capital |
10554.342 |
8172.916 |
6656.476 |
|
Reserve and Surplus |
297097.234 |
301962.806 |
307810.912 |
|
Share Application Money, pending allotment |
17219.175 |
13036.480 |
0.000 |
|
Deposits |
5400320.078 |
5130045.218 |
5319066.346 |
|
Borrowings |
394056.651 |
510831.442 |
400571.379 |
|
Other Liabilities and Provisions |
143845.186 |
135090.405 |
152872.459 |
|
|
|
|
|
|
TOTAL
|
6263092.666 |
6099139.267 |
6186977.572 |
|
ASSETS |
|
|
|
|
Cash and balance with Reserve Bank of India |
273476.621 |
339616.148 |
271700.328 |
|
Balance with banks money at call and short notice |
685402.911 |
651796.846 |
455101.880 |
|
Investments |
1278266.631 |
1188489.120 |
1197920.482 |
|
Advances |
3664816.671 |
3591889.592 |
4020255.465 |
|
Fixed Assets |
84618.581 |
84803.113 |
58855.350 |
|
Other Assets |
276509.251 |
242544.448 |
183144.067 |
|
|
|
|
|
|
TOTAL
|
6263092.666 |
6099139.267 |
6186977.572 |
|
|
|
|
|
|
Contingent Liabilities |
3597794.264 |
3538093.236 |
3737025.949 |
|
Bills for collection |
316218.745 |
268975.129 |
264123.884 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
I. |
INCOME |
|
|
|
|
|
Interest Earned |
392908.523 |
417964.698 |
434647.067 |
|
|
Other Income |
67723.304 |
36525.389 |
41979.002 |
|
|
TOTAL |
460631.827 |
454490.087 |
476626.069 |
|
|
|
|
|
|
|
II. |
EXPENDITURE |
|
|
|
|
|
Interest expended |
274647.356 |
300718.471 |
320862.461 |
|
|
Operating Expenses |
88657.966 |
93415.418 |
80885.870 |
|
|
Provision and Contingencies |
112909.653 |
121248.331 |
57788.514 |
|
|
TOTAL |
476214.975 |
515382.220 |
459536.845 |
|
|
|
|
|
|
|
III. |
PROFIT |
|
|
|
|
|
Net Profit/ (Loss) for the year |
(15583.148) |
(60892.133) |
17089.224 |
|
|
|
|
|
|
|
Add |
Profit/(Loss) brought forward |
(62486.813) |
--- |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
(78069.961) |
(60892.133) |
17089.224 |
|
|
|
|
|
|
|
IV. |
APPROPRIATIONS |
|
|
|
|
|
Transfer to Statutory Reserve |
0.000 |
0.000 |
4300.000 |
|
|
Transfer from investment Fluctuation Reserve |
0.000 |
0.000 |
0.000 |
|
|
Transfer to Revenue Reserve |
0.000 |
0.000 |
2404.214 |
|
|
Transfer to Capital Reserve |
7498.473 |
1594.680 |
887.822 |
|
|
Transfer from Revenue and other Reserves |
0.000 |
0.000 |
0.000 |
|
|
Balance in Profit and Loss Account |
(85568.434) |
(62486.813) |
0.000 |
|
|
Final dividend (including dividend tax) |
0.000 |
0.000 |
3997.188 |
|
|
Special Reserve u/s Sec 36(1) (viii) of Income Tax Act, 1961 |
0.000 |
0.000 |
5500.000 |
|
|
|
|
|
|
|
|
Earnings Per
Share (INR) |
|
|
|
|
|
- Basic |
(15.72) |
(83.01) |
26.57 |
|
|
- Diluted |
(15.72) |
(83.01) |
26.57 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
|
|
|
|
|
Cash generated from operations |
NA |
NA |
NA |
|
|
|
|
|
|
Net Cash Flow from Operating Activities |
(74775.773) |
220245.150 |
108445.269 |
FINANCIAL ANALYSIS
[all figures are
in INR Million]
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Interest Earned |
434647.067 |
417964.698 |
392908.523 |
|
|
|
(3.838) |
(5.995) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Interest Earned |
434647.067 |
417964.698 |
392908.523 |
|
Profit/(Loss) |
17089.224 |
(60892.133) |
(15583.148) |
|
|
3.93% |
(14.57%) |
(3.97%) |
LEGAL CASES
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
PRESENTATION
DATE:- 08.02.2018 |
|
LODGING NO: ITXAL/262/2018
FILING DATE: 08.02.2018 |
|
PETITIONER:
PR. COMMISSIONER OF INCOME TAX-2 RESPONDENT: BANK OF INDIA- PETN. ADV.: SURESH KUMAR (I2100)
DISTRICT: MUMBAI |
|
BENCH: DIVISION STATUS: PRE-ADMISSION CATEGORY:
TAX APPEALS Last Date: 15.02.2018 Last Coram: REGISTRAR (OS)/ PROTHONOTARY
AND SR. MASTER |
|
ACT: Income Tax Act,
1961 Under Section :- 260A |
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
PRESENTATION
DATE:- 08.01.2018 |
|
LODGING NO: WPL/56/2018
FILING DATE: 08.01.2018 |
|
PETITIONER:
JAYASWAL NECO INDUSTRIES LIMITED AN RESPONDENT: BANK OF INDIA- PETN. ADV.: AKASH MENON (I17027) Resp.
Adv: AZB AND PARTNERS (I4127)
DISTRICT: MUMBAI |
|
BENCH: DIVISION STATUS: PRE-ADMISSION CATEGORY:
WRIT PETITIONS (DIVISION BENCH) Last Date: 15.02.2018 Stage:
For Pronouncement of Judgement Last Coram: HON’BLE SHRI JUSTICE R.M. BORDE HON’BLE SHRI JUSTICE
RAJESH G. KETKAR |
|
ACT: Reserve Bank of
India Act, 1934 |
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
PRESENTATION
DATE:- 13.02.2018 |
|
LODGING NO: COMSL/195/2018
FILING DATE: 13.02.2018 |
|
PETITIONER:
UNITY INFRAPROJECTS LIMITED- RESPONDENT: BANK OF INDIA- PETN. ADV.: NAIK BAIK AND COMPANY (I7932) Resp.
Adv: OADAS (I5903)
DISTRICT: MUMBAI |
|
BENCH: SINGLE STATUS: PRE-ADMISSION CATEGORY: ORDINARY TRANSACTIONS OF MERCHANTS,
ABNKERS, FINANCIERS AND TRADERS SUCH AS THOSE RELATING TO MERCAN |
|
ACT: Code of Civil
Procedure 1908 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by info
agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES: NO
CHARGES EXISTS FOR COMPANY
PERFORMANCE:
Domestic Business:
·
CASA
deposits increased by 30.24% on Y-O-Y, SB deposits grew by 31.92% and CD by
20.86%. Share of low cost deposits (CASA), in domestic deposits improved from
34.18% as on 31-03-2016 to 39.84% as on 31.03.2017.
·
Domestic
deposits increased by 12.23% from INR 3773090.000 million to INR 4234570.000 million.
·
Advances
registered a growth of 6.38% from INR 268,5790.000 million to INR 2857250.000 million.
·
Priority
Sector lending constituted 40.47% of Adjusted Net Bank Credit and the share of
Agricultural Credit to Adjusted Net Bank Credit was 19.44%.
·
Schematic
Retail Credit grew by 10.63% from INR 377770.000 million to INR 417930.000
million.
·
Overall,
Domestic business has grown by 9.80% from ` 6,45,888 crore to ` 7,09,183 crore
during FY 2016-17.
Overseas Business:
·
Overseas
business has de-grown by 9.70% during FY 2016-17 compared to last year
de-growth of 2.87%.
Global Business:
·
Global
business has grown by 4.38% during FY 2016-17 compared to last year de-growth
of 5.19%. Total Business mix (Deposits + Advances) reached at INR 9338200.000 million, a growth of INR
391530.000 million.
·
Total
deposits increased by 5.27% to INR 5400320.000 million.
·
Advances
increased by 3.18% to INR 3937880.000
million.
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL SCENARIO
From the growth point of view, global economy is on an uneven path. The strategies adopted for economic development is also varied. For instance, while the U.S has lately adopted a protectionist policy stance, other developing and emerging market economies clamour for greater degree of openness and more trade. The two major developments which marked the global landscape during the year gone by were the U.S. Presidential elections and the Brexit vote. Monetary and fiscal policies pursued by leading central banks also differed in their stance. The U.S Federal Reserve tightened the Fed Fund rate by 25 bps in response to unemployment rate touching 4.5%. EU meanwhile, is still reluctant to hike rate due to very low growth rate while Japan continues to be in deflation zone. Most central banks are still pursuing an expansionist monetary policy with the exception of U.S which has indicated its willingness for further rate hikes. On the growth front, China grew 6.9% during January-March 2017 and is expected to grow between 6.5-7% for calendar 2017.
DOMESTIC ECONOMIC
SCENARIO
As per the provisional estimates put forward by the Central Statistical Organisation (CSO), the Indian economy is estimated to have grown at 7.1% (same as per second advance estimate) during FY 17, but lower than 8.0% recorded in FY16. The nominal GDP for FY17 is estimated at Rs. 151.84 lakh crore, a growth of 11%. Gross Value Added at basic prices (real GDP) grew 6.6% in FY17, lower than 7.9% in FY16. The GDP numbers for FY16 has undergone revision since the effect of the revised Index of Industrial Production (IIP) and Wholesale Price Index (WPI) with base year 2011-12 has been captured. The higher growth number for FY 16 is attributed to the base year change. Likewise, the quarterly GDP numbers have also undergone revision. During Q4-FY17, growth was just 6.1%.
Macroeconomic parameters are on a sound footing: FDI inflows are at a record $ 43 billion, Current Account Deficit is just a shade below 1.5% and fiscal deficit is contained at 3.5% of GDP with the Fiscal Responsibility and Budget Management Act (FRBM) also in place for both the Centre and the states. CPI inflation is below 3% and may even reach 2% due to sliding oil prices. The revamped base year has shown industrial production growth at 2.7%, higher than previous years; Forex reserves are at a record $ 370 billion, enough for almost a year of import cover. Rankings under ‘ease of doing business’ and competitiveness indices are continuously showing an improvement over the previous years, to name a few. A big challenge is on the job creation front with employment generation growing at 1% on a yearly basis. A Fund of Fund (FoF) for startups has been created to form an entrepreneurial climate.
The Goods and Services Tax is another reform initiative which would have far reaching impact on the economy. The dual GST model adopted by India includes GST levied by Centre, called Central GST (CGST), levies by the State (including Union Territories) that would be State GST (SGST) and for inter-State supply of goods and services, there would be an Integrated GST (IGST). Union Territories without legislature can levy Union Territory GST (UTGST).GST rates have been finalized for 1211 goods and 36 broad categories of services. Nearly 50% of goods fall under the 18% tax rate, 14% of goods fall under 5% tax rate, 17% under 12% tax rate and 19% under 28% tax rate. In case of services, the majority of services come within the 18% tax rate. Thus GST aims to avoid cascading of taxes and simultaneously augment revenue to the Centre as well as the states. States which lost revenue on account of GST would be compensated for a period of five years.
BANKING SECTOR DEVELOPMENTS
Latest data pegs y-o-y growth in bank
credit at 5.7% and deposit growth at 12.1%. This has resulted in excess
liquidity in the banking system. However the demonetization of old INR 500 and
INR 1000 notes is a major contributor this surge in deposits. The liquidity
surge, however, has enabled banks to reduce their MCLRs by as much as 100-110
bps over the past one year. However, credit growth to industry has turned
negative. Idle industrial capacity due to sluggish demand and banks being hit
by asset quality woes are the major reasons for this trend. Major sectors like
steel, power and textiles are yet to gain traction while telecom segment has
emerged as a new source of risk. Gross NPAs in the system has touched INR 0.700
million. Apart from sale of non-core assets and raising capital from the
consolidation in the banking sector is being explored as an option to minimize
capital requirement of banks. Moreover, post Asset Quality Review (AQR), RBI
and GOI has initiated Prompt Corrective Action (PCA) plans to tightly monitor
banks breaching certain threshold parameters.
A major game changer during the just
concluded financial
year has been the shift towards digital
transformation that has enveloped the economy and banking landscape. This
coincided with the demonetization drive. The objective is to bring the cashless
transactions to around 10% within a decade. A number of steps towards this end
have been initiated such as waiver of MDR charges, no cash payments above INR
0.200 million, bar on election funding of more than Rs.2000 in cash, issuance
of electoral bonds etc to name a few. Banking sector would surely feel the
impact of such changes with more and more customers expected to switch to
electronic banking channels, significantly reducing the footfalls in branches
over a periodof time. Payments banks and small finance banks ae already
incumbents must strive hard and innovate to stay competitive and protect their
turf.
Digital transormtion has implications
for the banking sector in other ways as well. Fintech has been the new mantra
for quite some time. Pyment banks and small finance banks apart from other
players are entering this space which poses stiff competition to existing
universal banks. Banks needs to embrace disruptive technologies at a very fast
pace and also be ahead of the learning curve. Moreover, banks must develop
competencies and skill sets in emerging areas such as risk and fraud analytics
using latest technology to prevent a drag on their profitability and study
customer behavior.
India needs a vibrant corporate bond
market to meet the ever growing funding requirements of corporates. Latest data
shows the rate of capital formation slowing down to 27% from 32% over a five
year time frame. Though consolidation in the banking industry would create
banks with the much needed size and scale to finance corporate funding, banks
would still suffer from asset liability mismatch issues. Moreover, take out
financing has
not really taken off in India. These
are deterrents to effectively meet corporate funding requirements.
The 5/25 scheme, the SDR scheme and the
S4A initiatives are certain novel developments during the past couple of years.
Though the success of these instruments in reducing the asset quality issues
have been limited, it has nevertheless equipped banks with more tools to fight
delinquency post the commencement of AQR exercise. However, GOI has brought
forth the NPA Ordinance to complement efforts to reduce asset quality troubles.
Moreover, steps have also been taken to reduce time to implement JLF decisions
by stipulating the necessity of approval by only 60% of creditors by value as
opposed to the earlier 75%. The Insolvency and Bankruptcy Code is becoming
operational fast and an Oversight Committee has also been formed at the
regulatory level to aid fearless resolution of stressed assets by bankers.
It is a pre requisite that banks in India are adequately equipped to efficiently perform the function of financial intermediation if the economy is to grow at the desired rate of 8%.
INFORMATION
TECHNOLOGY:
The Bank has launched IT products and services to enhanced customer experience, digitization and simplification of operations on:
Internet Banking - Enabling
submission of 15G/ 15H through Internet Banking, generation of interest
certificate for deposits and loan account, enabling income declaration scheme,
enhancement of online term deposit facility and in new user enrollment process
New modules on
Corporate website - Enabling Balance Enquiry for Prepaid Card from website,
enabling acceptance of online request for POS/ ATM failure refund, enabling
refund request for e-com transactions, application for MSME I and II for
submission and acceptance of loan applications up to INR 250.000 million.
Launch of smartphone based application ‘Chillr’ for facility of funds transfer and utility bill payments.
Implementation of Bharat Bill Payment System APP for customers.
Enabling Recharge module in Star Token NG – this provides the facility of mobile and DTH recharges to Bank’s customers.
REVIEW FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER 2017
(INR
IN MILLION)
|
Particulars |
Quarter ended |
Nine
month ended |
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
Interest earned |
|
|
|
|
a) Interest/discount on advances/bill |
93348.400 |
98940.900 |
287245.700 |
|
b) Income on investments |
63310.600 |
66957.500 |
193753.600 |
|
c) Interest on balances with RBI and other interbank fund |
22898.600 |
22402.300 |
67380.500 |
|
d) Others |
6093.200 |
7774.100 |
21820.300 |
|
|
|
|
|
|
Other income |
1046.000 |
1807.000 |
4291.300 |
|
Total income |
103760.300 |
116004.700 |
330831.000 |
|
|
|
|
|
|
Interest expended |
68336.100 |
69858.500 |
207820.900 |
|
|
|
|
|
|
Operating expenses |
21880.800 |
23815.700 |
63342.100 |
|
i) Employees cost |
11827.900 |
12690.600 |
33735.400 |
|
ii) Other operating expenses |
10052.900 |
11125.100 |
29606.700 |
|
Total
expenditure |
90216.900 |
93674.200 |
271163.000 |
|
|
|
|
|
|
Operating profit |
13543.400 |
22330.500 |
59668.000 |
|
|
|
|
|
|
Provisions and contingencies |
48997.200 |
19533.000 |
90983.000 |
|
|
|
|
|
|
Of which provision for non-performing assets |
43730.600 |
18668.200 |
83960.900 |
|
|
|
|
|
|
Exceptional items |
-- |
-- |
-- |
|
|
|
|
|
|
Profit/loss from ordinary activities before tax |
(35453.800) |
2797.500 |
(31315.000) |
|
|
|
|
|
|
Tax expenses |
(12041.800) |
1006.800 |
(10570.600) |
|
|
|
|
|
|
Net profit/loss
from ordinary activities after tax |
(23412.000) |
1790.700 |
(20744.400) |
|
|
|
|
|
|
Extraordinary items |
-- |
-- |
-- |
|
Net profit/loss
for the period |
(23412.000) |
1790.700 |
(20744.400) |
|
|
|
|
|
|
Paid-up equity
share capital (Face value INR 10 each) |
11852.900 |
11852.900 |
11852.900 |
|
|
|
|
|
|
Reserves
excluding revaluation reserves |
|
|
|
|
Analytical
ratios |
|
|
|
|
i) Percentage of share held by government of india |
75.12% |
75.12% |
75.12% |
|
|
|
|
|
|
ii) capital adequacy ratio |
12.05% |
12.23% |
12.05% |
|
a) CET 1 ratio |
7.06% |
7.21% |
7.06% |
|
b) Additional tier 1 ratio |
1.76% |
1.65% |
1.76% |
|
|
|
|
|
|
iii)
Earning per share |
|
|
|
|
Basic and
diluted EPS before extraordinary items |
(19.76) |
1.57 |
(18.38) |
|
|
|
|
|
|
iv) a) Amount of
gross non-performing assets |
6424858 |
4930690 |
6424858 |
|
b) Amount of net
non-performing assets |
3611723 |
2356573 |
3611723 |
|
c) Percentage of
gross NPAs |
16.93% |
12.62% |
16.93% |
|
d) Percentage of
net NPAs |
10.29% |
6.47% |
10.293% |
|
v) Return on
assets (%) |
(1.36) |
0.11 |
(0.40) |
BUSINESS
SEGMENTS
|
Particulars |
Quarter ended |
Nine
month ended |
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
Segment revenue |
|
|
|
|
a) Treasury operations |
32611.600 |
40873.500 |
113726.000 |
|
b) Wholesale banking operations |
36442.400 |
37133.000 |
115397.60 |
|
c) Retail banking operations |
35446.100 |
37847.000 |
10839.500 |
|
d) Unallocable |
-- |
732.200 |
824.700 |
|
Total |
104500.100 |
116585.700 |
32787.800 |
|
|
|
|
|
|
Less: Inter segment revenue |
739.800 |
581.000 |
1956.800 |
|
Income from operations |
103760.300 |
116004.700 |
330831.000 |
|
|
|
|
|
|
Segment results |
|
|
|
|
a) Treasury operations |
(4152.600) |
11407.600 |
20844.000 |
|
b) Wholesale banking operations |
(29126.3000 |
(16780.400 |
(76141.700) |
|
c) Retail banking operations |
232.300 |
10585.600 |
29879.400 |
|
d) Unallocable |
(2407.200) |
(2415.300) |
(5896.700) |
|
Total |
(35453.800) |
2797.500 |
(31315.000) |
|
|
|
|
|
|
Less: i) Other unallocable expenditure |
-- |
-- |
-- |
|
ii) Un-allocable income |
-- |
-- |
-- |
|
|
|
|
|
|
Total profit
before tax |
(35453.800) |
2797.500 |
(31315.000) |
|
|
|
|
|
|
Provision for tax |
(12041.800) |
1006.800 |
(10570.600) |
|
|
|
|
|
|
Net profit |
(23412.000) |
1790.700 |
(20744.400) |
|
|
|
|
|
|
Segment assets |
|
|
|
|
a) Treasury operations |
2219647.700 |
2346270.3000 |
2219647.700 |
|
b) Wholesale banking operations |
2299591.200 |
2758124.400 |
2299591.200 |
|
c) Retail banking operations |
1468758.000 |
1043990.800 |
1468758.000 |
|
d) Unallocable |
152449.300 |
133467.000 |
152449.300 |
|
Total |
6140446.200 |
6281852.500 |
6140446.200 |
|
|
|
|
|
|
Segment
liabilities |
|
|
|
|
a) Treasury operations |
2136957.000 |
2252708.800 |
2136957.000 |
|
b) Wholesale banking operations |
2469008.600 |
2646488.200 |
2469008.600 |
|
c) Retail banking operations |
1161253.500 |
1006460.900 |
1161253.500 |
|
d) Unallocable |
4985.400 |
48735.100 |
49085.400 |
|
Total |
5816304.500 |
595433.000 |
5816304.500 |
|
|
|
|
|
|
Capital employed
|
|
|
|
|
a) Treasury operations |
82690.700 |
93561.500 |
82690.700 |
|
b) Wholesale banking operations |
(169417.400) |
111636.200 |
(169417.400) |
|
c) Retail banking operations |
307504.500 |
37529.900 |
307504.500 |
|
d) Unallocable |
103363.900 |
84731.900 |
103363.900 |
|
Total |
324141.700 |
327469.500 |
324141.700) |
NOTES:
1. The above financial results for the quarter/nine months ended 31st
December, 2017 ("quarter" /"period") have been reviewed by the
Audit Committee of Board and approved by the Board of Directors at the meeting
held on 12th February, 2018. The same have been subjected to limited review by
the Statutory Central Auditors of the Bank, in line with the guidelines issued
by Reserve Bank of India and as per the requirement of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
2. The above reviewed financial results for the period have been arrived at on
the basis of the same accounting policies as those followed in the preceding
financial year ended 31st March, 2017.
3. The financial results for the period have been arrived at after considering
extant guidelines of Reserve Bank of India (RBI) on prudential norms for Income
Recognition and Asset Classification and Provisioning and providing for other
usual and necessary provisions including Employee Benefits.
4. In compliance with the RBI Circular DBR.No.BP.34/21.04.132/2016-17 dated
10th November, 2016, “Scheme for Stressed Assets-Revision”, in respect of
Standard Facilities under Strategic Debt Restructuring (SDR) and Scheme for
Sustainable Structuring of Stressed Assets (S4A), the bank has reversed an
amount of INR 3979.000 million for the period being unrealised interest in such
accounts.
5. During the quarter, Government of India has infused INR 2570.000 million on
December 29, 2017 by way of preferential allotment of equity shares and same is
shown as equity ‘Share Application Money’ as at December 31, 2017. On the basis
of RBI letter DBR.CO.BP.NO.6278/21.01.002/2017-18 dated 05 January, 2018, the
Bank has considered such ‘Share Application Money’ as a part of Common Equity
Tier-1 (CET-1) Capital. Bank has also issued Basel-III compliant AT-1 Bonds of
Rs.500 Crore during the quarter.
6. During the period, the Bank has made preferential allotment of 12.98 Crore,
Equity Shares of Rs.10 each, in accordance with the provisions of SEBI (Issue
of Capital and Disclosure Requirements) Regulations, 2009. The details are as
under:-
|
Date of Allotment |
Name of the Shareholder |
No. of equity shares – Face Value of
Rs.10 each |
Issue Price per share |
Amount |
|
14.06.2017 |
LIC of India |
17500000 |
1268.100 |
2219.2000 |
|
04.0.2017 |
Government of India |
112351134 |
1335.100 |
15000.000 |
|
Total |
129851134 |
-- |
17219.200 |
|
The share application money of INR 17219.200 million for the above allotment was received during March 2017 and considered for computation of CET 1 capital as on March 31, 2017.
7. In terms of RBI Circular no. DBR.BP.BC.No.50/21.06.201/2016-17 dated 2nd
February 2017 and in view of the insufficient profits, Bank has made payment /
provision of interest on AT-1 Perpetual Basel III Compliant Bonds by debiting
Revenue Reserve. Accordingly, interest of Rs.419.35 Crore for the period
(INR1450.900 million for quarter) has been debited to Revenue Reserve.
8. Until the Financial Year 2016-17, the Bank was estimating the liability in
respect of employee benefits by obtaining the actuarial valuation of such
liability as at the end of the financial year. Based on such valuation,
provision in respect of employee benefits was being made over 4 quarters.
However, starting from the quarter ended June 2017, the bank has decided to
carry out such actuarial valuation as at the end of each quarter and
accordingly provisions would be made. The impact of change in accounting
estimates, if any, has not been ascertained.
9. As per RBI Directions for initiating Insolvency process-Provisioning Norms
vide letter No. DBR.No.BP.15199/21.04.048/2016-17 dated June 23, 2017 (1st List
of 10 accounts), the Bank is required to make additional provision of Rs.549.29
Crore in respect of accounts covered under provisions of Insolvency and
Bankruptcy Code (IBC) over three quarters starting from September 2017. Bank
has made entire provision in nine months ended 31st December, 2017
itself.
As per RBI letter No.DBR.No.BP.BC.1846/21.04.048/2017-18 dated August 28, 2017
on “Resolution of Stressed Assets”, the bank is required to make additional
provision over and above the IRAC Norms in respect of identified accounts
mentioned therein covered under the provision of IBC amounting to Rs.513.76
Crore by 31st March, 2018 (2nd List of 19 Accounts). Bank has provided Rs.256.88
Crore in the current quarter and the remaining provision shall be made during
quarter ending 31st March, 2018.
10. In compliance with the Risk Assessment Report (RAR) of RBI for the year
2016-17, non-performing assets as per report have been duly classified and
additional provision has been made. In conformity with RBI Circular
DBR.BP.BC.No.63/21.04.018/2016-17 dated 18th April, 2017 and SEBI Circular
No.CIR/CFD/CMD/80/2017 dated July 18, 2017 the required disclosure is detailed
below:-
|
Particulars |
INR in Million |
|
Gross NPA as on 31st March, 2017 as reported by the Bank |
5204.500 |
|
Gross NPA as on 31st March, 2017 as assessed by the RBI |
6610.200 |
|
Divergences in Gross NPA (2-1) |
1405.700* |
|
Net NPA as on 31st March, 2017 as reported by the Bank |
2530.500 |
|
Net NPA as on 31st March, 2017 as assessed by the RBI |
3501.200 |
|
Divergences in Net NPA (5-4) |
970.700 |
|
Provision for NPA as on 31st March, 2017 as reported by the Bank |
273.900 |
|
Provision for NPA as on 31st March, 2017 as assessed by the RBI |
3108.900 |
|
Divergences in Provisioning (8-7) |
435.000 |
|
Reported Net Profit after tax (PAT) for the year ended 31st March 2017 |
(155.800) |
|
Adjusted (Notional) Profits after Tax (PAT) for the year ended 31st March 2017 after taking into account divergence in provisioning |
(624.800) |
* In terms of RBI Letter No. DBS.Co. SSM-BOI/3691/13.37.009/2017-18 dated January 12, 2018, out of Gross NPA of INR 140570.000 million, INR 94050.000 million is on account of SBLCs issued by other Banks for which Bank is not required to make any additional provision during the quarter and for the balance amount, based on the outstanding as on 31.12.2017, an additional provision of INR 9002.300 million (being 50% of the required provision amount) has been made. Out of INR 94050.000 million, Bank has so far realised an amount of INR 47510.000 million by invoking the SBLCs of other Banks.
11. Subsequent to change in Accounting Standard 10 “Property, Plant &
Equipment (PPE)” applicable from April 1, 2017, depreciation of Rs.116.23 Crore
(INR 386.600 million for the quarter) on the revalued portion of fixed assets
has been transferred from the Revaluation Reserve to the Revenue Reserve
instead of crediting to the Profit & Loss Account. The results of the
current quarter are not comparable with the previous quarter to this
extent.
12. In terms of RBI Circular DBR.No..BP.BC.64/21.04.048/2016-17 dated April 18,
2017, the Board of Directors of the Bank has approved standard assets provision
of 0.10%, over & above the regulatory minimum, in respect of the Bank’s
advances pertaining to Textile, Iron & Steel and Telecommunication sector.
Accordingly, an additional provision of INR 133.700 million has been made
during the period.
13. The Provision Coverage Ratio of the bank as on December 31, 2017 is
56.96%.
14. In terms of RBI Circular DBOD.BP.BC.2/21.06.201/2013-14 dated July 1, 2013,
Banks are required to make disclosures related to the Composition of Capital
with effect from 30th September, 2013. Accordingly, Pillar 3 disclosures under
Basel III Capital Regulations are being made available on Banks’ website at the
link http://www.bankofindia.co.in/english/Regdisclosuresec.aspx. These
disclosures have not been subjected to limited review.
15. The Bank has received 15 investor complaints during the
period (8 Complaint during the quarter) which have been disposed-of. There are
no pending investor complaints at the beginning or end of the
period/quarter.
16. Figures of the previous period have been regrouped / rearranged, wherever
considered necessary.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
Claims against the Bank not acknowledged as debts |
11278.319 |
11351.207 |
|
Liability for partly paid Investments |
382.408 |
564.701 |
|
Liability on account of outstanding forward exchange
contracts |
2825162.618 |
2672133.541 |
|
Guarantees given on
behalf of Constituents : |
|
|
|
In India |
207526.315 |
206825.665 |
|
Outside India |
210644.429 |
138056.151 |
|
Acceptances, endorsements and other obligations |
195064.751 |
221879.503 |
|
Derivative contracts other than listed at III above |
141706.565 |
283574.642 |
|
Other items for which the Bank is contingently liable |
6028.859 |
3707.915 |
|
|
|
|
|
Total |
3597794.264 |
3538093.325 |
FIXED ASSETS:
Tangible Assets
· Furniture
· Fixtures
· Electrical fittings and Equipment’s
· Air-conditioning Plants
· Motor cars
· Vans
· Motor cycles
·
Computer Software
PRESS RELEASE:
BANK OF INDIA HAS LENT INR 230.000 MILLION TO 2 GUPTA COMPANIES
Mar 08, 2018
It’s not just Bank of Baroda BSE 0.57 % that’s in trouble on account of the Gupta brothers in South Africa. Bank of India, too, may face some heat after having lent Rand 38.5 million to two Gupta promoted companies, which have filed for insolvency. Speaking to ET, Dinabandhu Mohapatra, CEO of Bank of India, accepted that the bank has exposure to the two Gupta companies in South Africa.
“We are adequately covered. We have 100% collateral against these loans so we
are not worried,” said Mohapatra. “Our exposure in these two companies is about
INR 230.000 million.” Bank of India advanced INR 7.000 million to Confident
Concepts and R 31.5 million to Island site Investments 180. The two companies
are among eight linked to the Guptas that have applied for ‘business rescue,’
which is similar to insolvency proceedings here in India. The Guptas of Indian
origin who settled in South Africa in the 1990s have promoted about 20
companies.
Bank of Baroda also lent INR 60 million to Confident Concepts. The bank, which plans to close operations in South Africa, is likely face a loss of INR 1200.000 million this quarter if the Guptas fail to repay their dues.
Experts said even though Bank of India’s loans are backed fully, the recovery
of dues will take time. In the interim, since the companies have filed for
insolvency, Bank of India will have to classify the loans as non-performing
assets and set aside funds as provisions.
The Gupta brothers, who have fled South Africa, face money laundering charges with allegation that billions of dollars of state wealth has been shipped out of the country illegally.
Island site Investments holds several properties in South Africa and is owned
by Atul Gupta and his wife Chetali. Its properties include their
‘Saxonwold-lite’ home in the affluent suburb of Constantia.
Confident Concepts owns properties, including an entity
under which the Porsche of Duduzane Zuma‚ son of former president Jacob Zuma,
was registered. The entity also owns several portions of the farm Brakfontein
near Delmas in Mpumalanga. Confident owned mining vehicles that were used by
the Guptas’ mines on a rental basis.
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 records 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
|
INR |
|
US Dollar |
1 |
INR 65.02 |
|
UK Pound |
1 |
INR 90.12 |
|
Euro |
1 |
INR 80.09 |
INFORMATION DETAILS
|
Information
Gathered by : |
KMN |
|
|
|
|
Analysis Done by
: |
PRY |
|
|
|
|
Report Prepared
by : |
IND |
SCORE FACTORS
|
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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.