CENTRAL BANK NOT TO RAISE LENDING RATES FOR NOW

Central Bank of India has no plans to raise its prime lending rate for now, its Chairman and Managing Director, Mr S. Sridhar, has said. “Although the CRR has gone up by 75 basis points in the recent credit policy review, we have decided against raising our lending rates,” Mr Sridhar told Business Line here.


He highlighted that the bank had ample liquidity. There are also no immediate plans to raise tier-II capital this quarter. Indications are that the Government may infuse tier-I capital in the next few months. The Centre has 80.20 per cent stake in the bank.


On the issue of ATM network expansion, Mr Sridhar said that the bank is examining a proposal to induct 1,000 more ATMs, which should take the overall count to about 2,000 by end of March 2011.



Already, the bank has ordered 500 ATMs which are expected to be installed in next three months. Currently, the bank has 400 ATMs.


On whether there has been large scale slippage in restructured assets, Mr Sridhar replied in the negative. “Slippage of restructured accounts is negligible. But, in general, the slippage has been higher than expected during the first nine months of current fiscal at Rs 542 crore. But we are not bad on the net NPA front, which is at 0.7 per cent, Mr Sridhar said.


The restructured assets portfolio of the bank currently stood at about Rs 4,000 crore, he said. Central Bank of India, which is official banker for the Commonwealth Games 2010, will shortly open a branch near the premises of the Commonwealth Organising Committee in the Capital, Mr Sridhar said.


Source: http://www.blonnet.com/2010/02/06/stories/2010020652650600.htm