financial results for the year ended March 2013 at Mumbai. On his right Malay Mukherjee and to his left R.K. Goyal, Executive Directors of the Bank were present at the Press Meet
MUMBAI: Central Bank of India has emerged strong after posting a net profit of Rs 69 crores bettering its last quarter performance and outstripping by huge margin the same for the last year 2012
This premiere public sector financial institution had posted a loss of Rs 105 crore in the same quarter last fiscal while the net profit for the immediately preceding December quarter stood at Rs 180 crore. Net profit in FY13 almost doubled to Rs 1,015 crore compared with Rs 533 crore in FY12.
Net interest income (difference between interest earned and expended) increased 25 per cent to Rs 153 crore. During the quarter, contributing to the profits were lower provisions of Rs 445 crore that declined by about half from Rs 859 crore in the year-ago quarter.
As on March 31, 2013, the bank’s total advances rose by 16 per cent driven by robust growth in retail and agriculture loans, while corporate loan growth remaining flat during the year.
Total deposits grew 15 per cent. “We expect the deposits and advances growth to be bottom-driven at around 18 per cent in FY14,” said M.V. Tanksale, Chairman and Managing Director. However, the higher deposit cost had made a small dentin in net interest margins (NIM) annually which declined to 2.67 per cent from 2.75 per cent in FY12.
“NIM will be better going forwards as costs of deposits are likely to come down. NIM is expected to be in the 2.75 to 3 per cent range,” Tanksale said. Gross non-performing loans (NPA) ratio declined marginally to Rs 4.80 per cent, while net NPA ratio declined to 2.90 per cent.
The board recommended a dividend of Rs 2.50 per share in FY13. CBI is a tech savvy institution providing online services like internet banking, online share trading, tax payments and bill payments.
Performance Highlights
Total Business of the Bank increased to Rs.4,02,272 crore as on 31st March 2013 compared to Rs.3,46,898 crore as at March 2012, registering y-o-y growth of 15.96%.
Total Deposits grew by 15.22 % on Y-o-Y to Rs.2,26,038 crore from Rs. 1,96,173 crore in March 2012
CASA Deposits increased to Rs.73,581 crore as of March 2013 compared to Rs.65,275 crore as of March 2012, registering Y-o-Y growth of 12.72%.
Gross Advances of the Bank grew by Rs.25,509 crore i.e. to Rs.1,76,234 crore in March 2013 from Rs.1,50,725 crore in March 2012, registering a Y-o-Y growth of 16.92%.
Bank recorded Net Profit of Rs.1015 crore as on March 31, 2013, as compared to Rs.533 crore as on March 31, 2012, registering y-o-y impressive growth of 90.43%.
Diana Gabriel
India Post News Service
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