Central Bank of India has posted a net profit of Rs. 887.17 crore for nine months ended December 31, 2009 as compared to Rs.508.73 crore for the nine months ended December, 2008 recording a growth of 74.4% on YoY basis.
The total business of the Bank increased to Rs.246722 crore as on December 31, 2009 from Rs.200249 crore as on December 31, 2008, a growth of 23.21% (YoY) basis. Gross NPA ratio declined to 2.72% as on December 31, 2009 from 2.81% as on December 31, 2008. Net NPAs as percentage of net advances declined to 0.74% as on December 31, 2009 from 1.18% as on December 31, 2008. NPA Provision Coverage increased to 73.33% as on December 31, 2009 from 58.70% as on December 31, 2008. This coverage of 73.33% is higher than 70% stipulated by RBI to be achieved by December 31, 2010. Return on Assets has increased to 0.76% as on December 31, 2009 from 0.54% as on December 31, 2008. Net Profit for the quarter ended December amounted to Rs. 306.45 crore, a dip of 13.3% over the corresponding figure of previous year, the reason being the net profit of the Q3 of 2008-09 includes write back of depreciation in the investment to the tune of Rs. 115 crore where as Bank had to provide for additional depreciation of Rs.144 crores in the current quarter. But for the same the growth in the profit in current quarter would have shown a growth of 60%. The benchmark yield in current quarter has hardened to 7.58% from the level of 7.15% in September 09. In the corresponding period of Dec.’08 the yield had softened to 5.25% from previous level of 8.64% in Sept.’08 and thus the depreciation in the current quarter
had higher impact from adverse movement of yield.
The above information was given by Mr. S. Sridhar, Chairman & Managing Director of the Bank, while addressing a Press Conference at Mumbai on 28th January, 2010.
Performance Highlights of the working results as on December 2009 are as under:
BUSINESS EXPANSION
• Aggregate deposits of the Bank have increased to Rs.155648 crore as on December 31, 2009 in comparison to Rs. 118782 crore as on December 31, 2008 registering a growth of 31.0% on YOY basis.
• The CASA Deposits has grown from Rs.41513 crore as on December 31, 2008 to Rs.46594 crore as on December 31, 2009 with a growth of 12.24% on YoY basis.
• The gross advances have increased to Rs.91074 crore as on December 31, 2009 from Rs.81467 crore as on December 31, 2008 at a growth rate of 11.8% on YoY basis.
• Business per branch has increased to Rs.64.17 crore as on December 31, 2009 compared to Rs.54.30 crore as on December 31, 2008, registering a growth of 18.2 % on YoY basis.
• Business per employee has increased to Rs.7.13 crore as on December 31, 2009 from Rs. 5.58 crore as on December 31, 2008, registering a growth of 27.7% on YoY basis.
• The investments has increased to Rs. 54338 crore as on December 31, 2009 from Rs. 37025 crore as on December 31, 2008 at a growth rate of 46.8% on YoY basis.
CAPITAL ADEQUACY
• Capital Adequacy of the Bank stands at 11.83% (Basel I) as on December 31, 2009 in comparison to 10.02% as on December 31, 2008.
• As per Basel II the CRAR stands at 12.58% as on December 31, 2009 in comparison to 10.43% as on December 31, 2008. (Tier I – 7.14% and Tier II – 5.44%).
ASSET QUALITY
• Net NPA stood at Rs.661 crore as on December 31, 2009 from Rs.945 crore as on December 31, 2008 improved by 30.05% on YoY basis.
• The percentage of net NPA as on December 31, 2009 is 0.74% of net advances.
• NPA Coverage – cum- Provision is 73.33% as on December 31, 2009
PROFIT
• Operating Profit of the Bank was up by 49.1% at Rs.1464.49 crore as on December 31, 2009 from Rs. 982.20 crore as on December 31, 2008 on YoY basis.
• The Net Profit of the Bank for the period ended December 31, 2009 stood at Rs. 887.17 crore as compared to Rs.508.73 crore as on December 31, 2008 posted a growth of 74.4% on a YoY basis.
• Net Interest Income of the Bank increased to Rs. 1881.65 crore for the period ended December 31, 2009 from Rs. 1795.04 crore for the period ended December 31, 2008 registering a growth of 4.8% on YoY basis.
• Non Interest Income of the Bank increased to Rs. 1166.3 crore for the period ended December 31, 2009 from Rs. 566.92 crore for the period ended December 31, 2008 registering a growth of 105.7% on YoY basis.
KEY FINANCIAL RATIOS
• Cost to income ratio improved to 46.12% for the quarter ended December 31, 2009 from 52.55% for the quarter ended December 31, 2008 on QoQ basis.
• Cost to income ratio improved to 51.95% for the period ended December 31, 2009 from 58.42% for the period ended December 31, 2008 on YoY basis.
• Return on Assets has increased to 0.76% as on December 31, 2009 from 0.54% as on December 31, 2008.
• Cost of deposits has reduced to 6.10% for the quarter ended December 31, 2009 as compared to 6.89% for the quarter ended December 31, 2008 on QoQ basis.
• Yield on advances decreased to 9.82% for the quarter ended December 31, 2009 when compared to 10.46% for the quarter ended December 31, 2008 on QoQ basis.
SEGMENTWISE ADVANCES
• Under Priority Sector Advances of the Bank, the agriculture advances stood at Rs. 13846 crore at the end of December 31, 2009 increased from Rs. 12335 crore at the end of December 31, 2008 registering growth of 12.3% on YoY basis.
• Under SME sector the advances were at Rs. 10191 crore as on December 31, 2009 as against Rs. 6009 crore for the corresponding period of previous year registering a growth of 69.6% on YoY basis.
• Retail Loans grew from Rs. 8821 crore as on December 31, 2008 to Rs.10283 crore as on December 31, 2009 with a growth of 16.6 % on YoY basis.
• Corporate Credit portfolio of the Bank registered YoY growth of 48.3% with the outstanding at Rs. 60705 crore as on December 31, 2009 vis-à-vis Rs.40921 crore as on December 31, 2008.
TECHNOLOGY INITIATIVES
• CBS implemented in 1223 branches. 100% CBS during 2010-11.
• 400 ATMs (on –site and off- site ). 500 more to be added by May 2010 and to be increased to around 2000 by the end of the year 2010-11.
NEW INITIATIVES
• e- tax has been introduced through e-banking.
• Corporate Internet facility is launched for all corporate clients of CBS branches of the Bank.
• New SWIFT Alliance Messenger (SAM) has been implemented.
HR INITIATIVES
• To bring down average age of employees, fresh recruitment in both clerical as well as officers cadre have been carried out and young talents are being recruited through Campus Recruitment.
• Training accorded high priority. Special Training Programmes specially to Executives in Senior and Top Management Grades in the areas of soft skills such as Leader Development, Managerial Excellence are being carried out on regular basis. Interactive sessions of the Top Management Team with eminent management professionals of international repute to increase the horizons of knowledge are being carried out and Pre-retirement counseling programmes started to enable smooth transition of employees from active services to retired life.
PRIORITY SECTOR
• IT based Financial Inclusion in Hoshangabad (M.P.), Sarguja (Chhattisgarh), Goalpara (Assam), Warangal (A.P.), Dhule (Maharashtra), Jhalawar, Kota and Baran District in Rajasthan.
• Tie-up for financing suppliers of Nano Car Project relocating from Singur to Sanand.
RETAIL
• New Product “Cent Gold Loan” launched for sanctioning loan/Overdraft up to Rs.6.00 lac to individuals including staff.
• Tie-up made with Insurance Companies under group policies for Housing Loan & Educational Loan borrowers.
• New Product “Cent Gift Card” introduced.
• Recurring Deposit Scheme introduced with personal accidental insurance.
• New Scheme “Cent Swabhiman Plus” introduced assuring monthly annuity to senior citizens by mortgaging their self occupied and owned property.
• Introduced SMS services & On- Line application for major retail products.
• Sale of 24 Karat (0.999 purity) Gold Coin started through 10 designated branches.
PROJECT SYNDICATION & UNDERWRITING
• The Bank has formed a “Project Syndication & Underwriting Cell”.
• The Cell has underwritten a Term Loan of Rs. 1500 crore for a big corporate and achieved its financial closure.
• At present, Rs. 4500 crore of syndication business involving 5 accounts is at various stages of negotiation/ finalization.
• So far the cell has earned a total fee of Rs. 8.5 crore.
AWARDS /RECOGNITION
• Bank received “ Banking Excellence” award from Shri Sultan Ahmed, Minister of State for Tourism, Government of India
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