The Hindu : Business : Central Bank declares interim

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Wednesday, Oct 27, 2010
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Central Bank declares interim

S. Sridhar

MUMBAI: Central Bank of India (CBI) recorded a 20.70 per cent rise in net profit at Rs.379.38 crore for the September 30 quarter on the back of 135 per cent jump in its interest income.

The bank declared a dividend of Re.1 a share of Rs. 10 each.

The bank's net profit for the July- September quarter last fiscal was Rs.313.93 crore.

Though the net interest income of the bank grew 134.90 per cent to Rs.1,346 crore, a steep 39.71 per cent fall in non-interest income caused a dent in the bank's bottom-line.

“The high NII does not reflect in our net profit due to a higher provisioning coverage and a fall in trading income,” the bank's Chairman and Managing Director S. Sridhar told reporters here.

The bank's deposit growth for the quarter was below-industry-average at 10.76 per cent as it consciously stayed away from high-cost bulk deposits, Mr. Sridhar said, adding that it was a cause for concern. The share of the cheaper CASA (Current and Savings Account) deposits in the total deposits pie increased from 30.85 per cent to 34.43 per cent.

On the back of a lower cost of deposits, the bank was able to increase its net interest margin in the September quarter to 3.42 per cent versus 1.78 per cent last year.

The bank's advances grew 25.52 per cent in the reporting period to Rs.1.16 lakh crore and now, 34 per cent of its loan-book is under the newly—introduced base rate regime. — PTI

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