RFP Reference No: FM&S Wing/Sub /RFP- VAL/2015-16

RFP Reference No: FM&S Wing/Sub /RFP- VAL/2015-16

Request for Proposal(RFP)

for

Appointment ofInvestment Managers for

Determination of Fair Value of Canara HSBC OBC Life Insurance Co Ltd

Date:27.08.2015

Issued by

CANARA BANK

Subsidiaries Division

Financial Management and Subsidiaries Wing

Head Office,No 112, J C Road, Bangalore-560002, India

Phone:080-22236136

Fax:080-22293515

Website:-

Cost of RFP Document: 10,000/-(Non-Refundable)

Appointment of Investment Managers for Determination of Fair Value of Canara HSBC OBC Life Insurance Co Ltd, an Insurance Joint Venture of Canara Bank

Tender reference / CANARA BANK /FINANCIAL MANAGEMENT & SUBSIDIARIES WING /SUB / RFP-VAL / 2015-16
dt27.08.2015
Name of the Department / Subsidiaries Division
Date of Issue / 27/08/2015
Last date and time for submission of queries by email () / 01/09/2015
Purpose / Request for proposal for appointment of Investment Managers for Determination of Fair Value of Canara HSBC OBC Life Insurance Co Ltd, a Joint Venture of Canara Bank
Pre bid meeting / Venue–Canara Bank, Conference Room, 5th Floor, Head Office, 112 J C Road, Bangalore – 560002.
Last date and Time for submission of bids / 21/09/2015 3.00 pm
Address for submission of bids / Tender Box
General Manager
Canara Bank
Financial Management & Subsidiaries Wing Head Office
112, J C Road, Bangalore –560002
Date /place of opening of technical bids / Date : 21.9.2015
Venue - Canara Bank, Conference Room, 5th Floor, Head office,112 J C Road, Bangalore – 560002

Note:1.This Bid Document is not transferable.

2.This Bid Document is the property of:

General Manager

Canara Bank

Financial Management & Subsidiaries Wing

Head Office

112, J C Road, Bangalore –560002

TABLE OF CONTENTS

Request for Proposal (RFP)

For

Determination of Fair Value of Canara HSBC OBC Life Insurance Co Ltd

Section / Sub-Section / Contents / Page Number
Disclaimer / 4
1 / Profile of Canara Bank / 5
2 / Context of the assignment / 5
3 / Terms of reference / 5
4 / Term of assignment / 7
5 / Eligibility criteria / 7
6 / Application process / 8
7 / Tender schedule and contact details / 10
8 / Amendment / 10
9 / RFP purchase / 10
10 / Evaluation criteria / 11
11 / General terms and conditions / 12
Annexure A / Covering letter – technical offer / 22
Annexure B / Proposal form / 23
Annexure C / Technical bid / 25
Annexure D / Covering letter – Commercial Offer / 27
Annexure E / Commercial Bid / 28
Annexure F / Undertaking of the bidder / 29
Annexure G / Details of persons forming the team / 30
Annexure H / Authorisation letter / 31

DISCLAIMER

The information contained in this Request for Proposal Document (RFP Document /Bid Document) or information provided subsequently to bidder(s) or applicants whether verbally or in documentary form by or on behalf of Canara Bank, is provided to the bidder(s) on the terms and conditions set out in this RFP Document and all other terms and conditions subject to which information is provided.

This RFP Document is not an agreement and is not an offer or invitation by Canara Bank to any parties other than the applicants who are qualified to submit the bids ("Bidders"). The purpose of this RFP document is to provide the Bidder(s) with information to assist the formulation of their proposals. This RFP document does not claim to contain all the information each bidder may require. Each bidder should conduct its own independent investigation and analysis and is free to check the accuracy, reliability and completeness of the information in this RFP document and where necessary obtain independent information.

Canara Bank makes no representations or warranty and shall incur no liability under any law, statute, rules or regulations as to the accuracy, reliability or completeness of this RFP Document. Canara Bank may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information in this RFP Document.

Canara Bank reserves the right to reject any or all the bids / proposals received in response to this RFP document at any stage without assigning any reason whatsoever. The decision of Canara Bank in this regard shall be final, conclusive and binding on all the parties.

Request for Proposal (RFP) –Appointment of Investment Managers for Determination of Fair Value of Canara HSBC OBC Life Insurance Co Ltd

1. Profile of Canara Bank

Canara Bank is a premier Public Sector Bank in India established in the year 1906. As on 31.3.2015, the Bank has 5682 domestic and 5 overseas branches. The Bank has also established Retail Asset Hubs and SME Sulabhs, apart from specialised branches like Agricultural Finance Branch, NRI branch, SME branch, overseas branch, Prime Corporate Branch etc to cater to the needs of the respective client segments. The bank has got 8533 ATMs spread across the length and breadth of the country making cash available to their clients round the clock. All the branches of the Bank have been brought under Core Banking Solution to render efficient customer service through 24X7 banking. The total business of the Bank as on 31.3.2015 stood at more than Rs. 800000 Crore.

Apart from the branches in India and abroad, the Bank has established seven Subsidiaries and one Associate to cater to the investment and other financial needs of its clients.

2. Context of the Assignment

M/s Canara HSBC OBC Life Insurance Company Ltd (CHOICe) is a Joint Venture company between Canara Bank, M/s HSBC Insurance (Asia–Pacific) Holdings Limited (INAH) and Oriental Bank of Commerce (OBC) with equity shareholding ratio of 51%, 26% and 23% respectively. The company was set up to provide life insurance products to our domestic customers.The Company is in its 7th year of operation.
It extensively leverages the Canara Bank, HSBC and OBC customer base across the country and provides vibrant base for insurance penetration across every region and economic strata in the country.
Canara Bank decided to determine the fair valuation of this Joint Venture.

3Terms of reference

The objective of this assignment is to determine the fair valuation of the Insurance Joint Venture Company through internationally accepted methodologies which are currently being adopted by insurance valuation firms globally.

3.1Assessment of

Valuation through estimation of the Enterprise Valuation / Fair Value of each equity share of the company based on the Audited Financial Statements of the company as at 31.03.2015 & provisional financials of 30.06.2015and also based on the projections / Annual Operating Plans of the company.

3.2Clarification of Queries

A prospective Applicant requiring any clarification of this RFP may notify Canara Bank in writing by E-mail at . Canara Bank shall respond in writing by E-Mail to any request for clarification of the queries, from the prospective bidders, which it receives not later than01/09/2015. Reply to queries shall be made till 02/09/2015.

3.3Due Diligence

The bidder is expected to examine and understand all instructions, forms, terms and specifications and the assessment detailed in this RFP. Bids shall be deemed to have been submitted after careful study and examination of the contents of this RFP including the scope of the assignment with full understanding of its implications and requirements. The bids should be precise, complete in all respects and to be submitted in the prescribed format as per the requirement of this RFP only. Failure to furnish all information required by this RFP or submission of a bid not responsive to this RFP in every respect will be at the applicant’s risk and may result in rejection of the bid for which the Canara Bank shall not be held liable under any circumstances.

3.4Amendment of RFP

a) Canara Bank reserves the sole right for including any addendum to this entire bid process. The bidders shall not claim as a matter of right for requiring Canara Bank to do the aforesaid.

b) At any time before the deadline for submission of bids/offers, Canara Bank may, for any reason,whether at its own initiative or in response to a clarification requested by prospective bidders, modify this RFP Document.

c) All prospective bidders who participate in this RFP shall keep themselves aware of any or all such modifications by regularly visiting the website of Canara Bank as all changes/ modifications shall be informed through Canara Bank website only. All such amendments shall be binding on them and shall form an integral part of this RFP for the intended purpose.

d) If required in order to allow prospective bidders reasonable time to take the amendment into account in preparing their applications Canara Bank, reserves the right to extend the deadline for the submission of bids. However no request from the bidder, shall be binding on Canara Bank in this regard.

Consultant must provide professional, objective and impartial advice at all times and hold the Bank’s interest paramount, without any consideration for future work, and strictly avoid conflicts with other assignments or their own corporate interests

4Tenure of the assignment

The entire exercise is requires to be completed within 30 days from the acceptance by the successful bidder.

5. Eligibility Criteria

The applicants should fulfil the following eligibility criteria:

Sl No / Eligibility Criteria / Documents to be submitted
1 / Bidder must be either a registered partnership firm or LLP or a Limited company / Copy of certificate of incorporation/ registration
2. / Bidder should have been in the business of Consulting & Valuation in India at least for last 5 years / Supported by information on Consulting & Valuation business in India namely assignment / order letters or client references.
3 / Bidder’s business turnover relating to Consultancy & Valuation Services should be more than Rs. 50 Cr in the last financial year. / Audited financial statements / IT return or certificates from a practising Chartered Accountant in India
4 / The bidder should have a prior experience of Valuations involving Insurance Companies. / Only competed projects are admissible. Satisfactory completion certificate indicating good quality of work and satisfaction by client should be submitted.
5 / The bidder should not have been barred/black listed / disqualified by any regulators/statutory body in India / Self declaration
6 / Bidder should have at least 50 professionals with relevant qualifications and experience permanently employed by them / Self declaration

6. Application process

The application process is as follows:

a)The application form will be made available in the Canara Bank website

b)Consultancy firms proposing to undertake this assignment should submit their proposals in 2 separate and sealed envelopes containing Technical (Technical Bid) and Commercial (Commercial Bid) proposals super scribed with “RFP for Appointment of Investment Manager for Determination of Fair Value of Canara HSBC OBC Life Insurance Co Ltd –Technical Bid” and "RFP for Appointment of Investment Manager for Determination of Fair Value of Canara HSBC OBC Life Insurance Co Ltd–Commercial Bid”.

Technical Bid:The Technical Bid should contain the following information:

Covering letter as per Annexure- A of this document.

Proposal form as per Annexure -B of this document.

Bidder Firm’s Profile along with necessary documentary evidence required for the present RFP engagement and all relevant enclosures as detailed in Annexure C of this document.

Description of the methodology and work plan for performing the assignment.

List of the key professionals and the support staff for each phase of the assignment.

Any additional information including assumptions that the Consultant team may think fit but not included elsewhere in the proposal, which will help the Bank to assess the capabilities of the consultant.

Demand Draft / Pay order of Rs.10000/- (Rupees Ten thousand only) favouring “Canara Bank” as fees for participating in tender,where the RFP document was downloaded from the website of the Bank.

Duly signed authority letter by the competent authority of the firm, authorizing the executants to sign the bid on behalf of the firm.

Note: Technical Bid shall not include any financial information. A technical bid containing information on the commercial bid shall be declared invalid and be rejected.

Commercial Bid:

The Commercial Bid(CB) should contain financial quote as to the total price/cost of undertaking the assignment inclusive of all out of pocket expenses of the consultant. Service tax has to be shown separately. Relevant price information and the rates should be quoted in Indian Rupees only. The Commercial Bid should not contradict the Technical Bid in any manner.The Commercial bid should be submitted strictly in the format given by the bank as Annexure E of this document along with covering letter as per annexure D and should not have any deviations,restrictive statements etc theron.

c)Earnest Money Deposit: Along with the bid, the bidders shall submit a Demand Draft for Rs.500000/- favouring Canara Bank payable at Bangalore as EMD. This DD should be separately put in sealed cover marked (Determination of Fair Value of Canara HSBC OBC Life Insurance Co Ltd).

The amount would be returned to unsuccessful bidders within one month after satisfactory award of the contract to the successful bidder. In respect of the successful bidders EMD will be returned on the receipt of Bank Guarantee.

No interest shall be payable on the Earnest Money Deposit. Offers without Earnest Money Deposit would be considered as incomplete and shall be rejected. Any decision in this regard taken by the Bank shall be final, conclusive and binding on the bidder

Bank Guarantee for an amount equivalent to 25% of the project value valid till 3 months after the completion of the project with a claim period of three months thereafter.

d)Selected bidder will have to give an undertaking to maintain confidentiality of the information /documents obtained by them during the course of implementation of the assignment as per Annexure F.

e)The Bank reserves the right not to accept any bid, or to accept or reject a particular bid at its sole discretion without assigning any reason whatsoever.

f)The cost of bidding and submission of bid documents is entirely the responsibility of bidders, regardless of the conduct or outcome of the tendering process.

7.Tender schedule and contact details:

Sl. No. / Schedule of activities leading up to award of assignment for consultancy for comprehensive assessment of its Subsidiaries/ Associate / Date / Time
(i) / Release of RFP document / 27.08.2015
(ii) / Last date for receipt of queries (if any) from prospective bidders by email / 01.09.2015
(iii) / Reply to Queries / 02.09.2015
(iv) / Pre-bid meeting (at Canara Bank, Conference Room, 5th floor, Head Office, 112, J C Road, Bangalore) / 04.09.2015
(v) / Last date of receipt of bids / 21.09.2015 3.00 pm
(vi) / Date of opening of technical bids at Canara Bank, Conference Room, 5th floor, Head Office, 112, J C Road, Bangalore / 21.09.2015 3.30 pm*

* In case the Bank does not function on the aforesaid date due to unforeseen circumstances or holiday then the bid will be accepted on the next working day and bids will be opened at 3:30 PM at the same venue on that day"

The bid should be submitted in the tender box kept at the following address:

“General Manager, Canara Bank, Financial Management & Subsidiaries Wing, Head Office, 112, J C Road, Bangalore – 560002”

All communication with respect to this RFP should be addressed to:

The General Manager

Financial Management & Subsidiaries Wing, 5th Floor

Canara Bank, Head Office

#112, J C Road

Bangalore – 560002

Phone: 080 22236136

Fax No.080 22293515

E-mail Id:

Amendment

At any time before the last day for submission of bids, the Bank may at its discretion amend the RFP including extension of deadlines for the submission of bids. Any such amendment will be notified on the website of the bank and will be binding on all the bidders.

RFP purchase:

The interested eligible bidder may collect the RFP from the address given in point 7 above on payment of non refundable fee of Rs.10000/- in the form of a Demand Draft issued by a Scheduled commercial bank favouring Canara Bank payable at Bangalore. Alternatively RFP documents can be down-loaded from the Canara Bank website in which case the bidder will have to pay along with the technical proposal (in a separate cover) a non refundable fee of Rs.10000/- by way of Demand Draft as mentioned above. Bids not accompanied by the Demand Draft of requisite amount shall be rejected.

Evaluation Criteria

(i)The evaluation of consultants will be based on a three step process.

a)Consultants qualifying will be invited for a presentation. Technical scores will be given based on the bid submission and presentation.

b)Post the presentation, Consultants scoring a minimum of 60% marks in the technical bid will qualify for commercial evaluation and their commercial bids will be opened.

c)For final award of the assignment, a combined evaluation shall be done by applying a weightage of 80 and 20 for the technical and commercial scores according to the following formula for those found qualified in the technical bidding.

Example,Combined score of Bidder A = 80(Technical score of BidderA / Highest Technical Scoreof all Qualified Bidders) + 20 (Lowest financial Bidof all Qualified Bids / Commercial bid of BidderA)

Shortlisted consultants will be ranked on the basis of the above combined score. The consultant securing highest combined score shall be recommended for award of the contract.

(ii)Scoring methodology: The technical scoring of the proposals will broadly be on the following criteria:

Sl. / Evaluation Parameters / Maximum Marks
1 / Standing of firm / 10
10 years and above / 10
More than7 ; but < 10years / 5
More than 5; but < 7 years / 3
2 / Experience in consulting / valuation of service industry having value of over Rs.500 Cr. / 15
More than 10 assignments / 15
7 to 10 assignments / 10
5 to 7 assignments / 5
3 / Approach, Methodology and work planof insurance valuation / 25
Understanding the job / 10
Approach and Methodology / 10
Work plan / 05
4 / Domain Experience / 20
Experience of working with public and private sector insurance companies
a. More than 5 assignments / 20
b. More than 3 assignments / 15
c. More than 1 assignments / 10
5 / Suitability of key resources:
Quality of key resources to be assigned to the project, relevant experience of the resources / 10
Total / 80

11.General terms and conditions to contract:

Bidder should examine the documents constituting this RFP in detail to prepare the Proposal. In case of deficiencies in the information required/ requested, the proposal may be rejected.

i)Non transferable bid

This bid document is not transferable. Only the bidder, who has purchased this bid form, is entitled to quote and to execute the job, if allotted. There will not be any type of outsourcing.