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Central Bank of India records a growth of 20.70% in net profit for the Quarter ended September 30, 2010

October 26, 2010‐ Mumbai, India

Central Bank of India has posted a Net Profit of Rs 379 crore for the quarter ended September 30, 2010 vis-à-vis Rs 314 crore for the quarter ended September, 2009 recording a growth of 20.70% on a YoY basis. Correspondingly Operating Profit zoomed to Rs 777 crores as on 30th Sept. 2010 from Rs 514 crores as on 30th Sept. 2009 showing a growth of 51.17%. Net Interest Margin (NIM) also spurt up to 3.14% as on 30th Sept. 2010, as compared to 1.81% as on 30th Sept. 2009. This was attributed to a strong growth in Net Interest Income of Rs. 1346 crores.

The Total Business of the Bank increased to Rs. 2,83,561 crores as on September 30, 2010 from Rs. 2,43,718 crore as on September 30, 2009, a growth of 16.35% (YoY) basis.

Gross NPA ratio declined to 2.28% as on September 30, 2010 from 2.64 % as on September 30, 2009. Net NPA declined to 0.68% as on September 30, 2010 from 0.69% as on September 30, 2009. NPA Provision Coverage decreased to 70.5% as on September 30, 2010 from 74.3% as on September 30, 2009.

Return on Assets (RoA) has increased to 0.86% as on September 30, 2010 from 0.80% as on September 30, 2009.

The above information was given by Mr. S. Sridhar, Chairman & Managing Director of the Bank, while addressing a Press Conference at Mumbai on 26th October, 2010.

Performance Highlights of the working results as on September 2010 are as under:

BUSINESS EXPANSION

  • Aggregate Deposits of the Bank increased to Rs. 1,67,813 crore as on September 30, 2010 in comparison to Rs. 1,51,506 crore as on September 30, 2009 registering a growth of 10.76 % on YoY basis.
  • The CASA Deposits grew from Rs. 46,750 crore as on September 30, 2009 to Rs. 57,790 crore as on September 30, 2010 with a growth of 23.61% on YoY basis. The CASA deposits is 34.43% of Total Deposits as on September 30, 2010.
  • The Gross Advances have increased to Rs. 1,15,748 crore as on September 30, 2010 from Rs. 92,212 crore as on September 30, 2009 at a growth rate of 25.52% on YoY basis.
  • Business per branch has increased to Rs. 78.14 crore as on September 30, 2010 compared to Rs. 62.30 crore as on September 30, 2009, registering a growth of 25.43%.
  • Business per employee has increased to Rs. 8.03 crore as on September 30, 2010 from Rs. 6.72 crore as on September 30, 2009, registering a growth of 19.49%.
  • The investments has decreased to Rs. 51,150 crore as on September 30, 2010 from Rs. 57,178 crore as on September 30, 2009 by 10.54 % on YoY basis.

CAPITAL ADEQUACY

  • Capital Adequacy of the Bank stands at 10.89% (Basel I) as on September 30, 2010.
  • As per Basel II the CRAR stands at 11.65% as on September 30, 2010.

ASSET QUALITY

  • Net NPA stood at Rs. 776 crore as on September 30, 2010 from Rs. 625 crore as on September 30, 2009 increased by 24.16% on YoY basis.
  • The percentage of Net NPA as on September 30, 2010 is 0.68% of Total Advances.
  • NPA Coverage – cum- Provision is 70.50% as on September 30, 2010

PROFIT

  • Operating Profit of the Bank was up by 51.17% at Rs. 777 crore for the quarter ended September 30, 2010 from Rs. 514 crore as on September 30, 2009 on QoQ basis.
  • Operating Profit of the Bank was up by 65.14% at Rs. 1,445 crore for the half yearly period ended September 30, 2010 from Rs. 875 crore half yearly as on September 30, 2009 on YoY basis.
  • The Net Profit of the Bank for the quarter ended September 30, 2010 stood at Rs. 379 crore vis-à-vis Rs. 314 crore for the quarter ended September 30, 2009 posted a growth of 20.70% on a QoQ basis.
  • The Net Profit of the Bank for the half yearly period ended September 30, 2010 stood at Rs. 716 crore vis-à-vis Rs. 581 crore for the half yearly period ended September 30, 2009 posted a growth of 23.24% on YoY basis.
  • Non Interest Income of the Bank was Rs. 246 crore for the quarter ended September 30, 2010 from Rs. 408.60 crore for the quarter ended September 30, 2009 registering decline by 39.71% on QoQ basis.
  • Non Interest Income of the Bank was Rs. 493 crore for the half yearly period ended September 30, 2010 vis-a-vis Rs. 802.18 crore for the half yearly period ended September 30, 2009 registering a decline by 38.52% on YoY basis.

KEY FINANCIAL RATIOS

  • Cost to Income ratio improved to 51.15% for the quarter ended September 30, 2010 from 47.71 % for the quarter ended September 30, 2009 on QoQ basis.
  • Cost to Income ratio improved to 51.13% for the half yearly period ended September 30, 2010 from 55.22 % for the half yearly period ended September 30, 2009 on YoY basis.
  • Return on Assets (RoA) has increased to 0.86% as on September 30, 2010 from 0.8% as on September 30, 2009.
  • Cost of Deposits has reduced to 5.48% for the quarter ended September 30, 2010 as compared to 6.54% for the quarter ended September 30, 2009 on QoQ basis.
  • Cost of Deposits has reduced to 5.50% for the half yearly period ended September 30, 2010 as compared to 6.52% for the half yearly period ended September 30, 2009 on YoY basis.
  • Yield on Advances decreased to 10.20 % for the quarter ended September 30, 2010 when compared to 9.92% for the quarter ended September 30, 2009 on QoQ basis.
  • Yield on Investment decreased to 6.95% for the quarter ended September 30, 2010 when compared to 6.78% for the quarter ended September 30, 2009 on QoQ basis.

SEGMENTWISE ADVANCES

  • Under Priority Sector Advances of the Bank, the Agriculture Advances stood at Rs. 17,492 crore at the end of September 30, 2010 increased from Rs. 14,532 crore at the end of September 30, 2009 registering growth of 20.36% on YoY basis.
  • Under SME sector the Advances were at Rs. 11,361 crore as on September 30, 2010 as against Rs. 12029 crore for the corresponding period of previous year registering a decrease of 5.55% on YoY basis.
  • Retail Loans grew from Rs. 9825 crore as on September 30, 2009 to Rs. 12,206 crore as on September 30, 2010 with a growth of 24.23% on YoY basis.
  • Corporate Credit portfolio of the Bank registered YoY growth of 26.31% with the outstanding at Rs. 73,003 crore as on September 30, 2010 visa-vis Rs. 57,793 crore as on September 30, 2009.

FINANCIAL INCLUSION

  • Under Financial Inclusion, to mitigate the distress faced by the farmers 14407 villages under 50 districts have been brought under 100% financial inclusion and over 44.86 lac “No Frills” accounts were opened as on September 30, 2010.

AWARDS /RECOGNITION

  • The Bank won national recognition through the Skoch Foundation Award for implementing E-Shakti Project in Patna for seamless electronic transfer of NREGA payments to accounts of the beneficiaries.
  • The Bank was the Official Banking Partner of the XIXth Commonwealth Games Delhi 2010 held between Oct. 3-14, 2010. The Bank operated two branches, one at the headquarters of the Organizing Committee and the other, in the Games Village. Both the branches provided excellent service and banking facilities to the participating athletes, officials, visitors and general public. The Bank also successfully handled the sales of the Games tickets.
  • Core Banking implementation was accelerated and 3184 branches representing 88% of the total branch network and about 95% of the total business. It is expected that Bank will achieve 100% CBS coverage by 31st December 2010. The Bank is also implementing CBS in all the 7 Regional Rural Banks (RRBs) sponsored by the Bank.
  • Other initiatives taken by the Bank during the quarter (June to Sept. 2010) include: Commonwealth Games Initiatives, Dedicated prepaid cards launched, Commonwealth Card - A general purpose prepaid card, Cent Gift Card - A loaded card, Cent Yatra Card - A travel Card in USD currency, SME, MoUs executed with Mahindra & Mahindra, Peugeot, Atul Auto, Videocon for financing vehicles/vendors, Retail Banking, A new product ’Cent Comp-Exam’ launched to facilitate financing payment of Coaching class fees
  • International Division: ‘’CENT FAST2INDIA’’ (internet based remittance service) launched in association with Bank of New York Mellon, New York, facilitating on-line remittance to India by Non Residents (NRIs) in USA
  • NID
  • MoU executed with DSP Blackrock Mutual Fund for selling their MFs

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