:::::SRI S.B. RODE, OUR BELOVED PRESIDENT, AICBOF AND OFFICER DIRECTOR ON THE BOARD OF CENTRAL BANK OF INDIA HAS BEEN COOPTED AS GENERAL SECRETARY, AICBOF IN E.C. MTG. HELD AT MUMBAI ON 24.02.2014:::::MR. S.C. GUPTA, GEN. SECRETARY OF OUR AHMEDABAD UNIT HAS BEEN COOPTED AS PRESIDENT, AICBOF::::::WE CONGRATULATE THEM AND WISH THAT THE OFFICERS' MOVEMENT IN CENTRAL BANK OF INDIA WILL BE TAKEN TO NEW HEIGHTS:::::LONG LIVE CBOA:::::LONG LIVE AICBOF::::::LONG LIVE AIBOC:::::

CENTRAL BANK NET RISES 32%


Central Bank of India's net profit increased by 32 per cent to Rs 403 crore for the quarter ended December 31, 2010, from Rs 306 crore in the corresponding quarter last year on higher interest income.

Robust growth in net interest income coupled with reduction in high-cost bulk deposits helped the bank increase its profits, said Mr S. Sridhar, Chairman and Managing Director, Central Bank of India.

While net interest income jumped by 96 per cent to Rs 1,432 crore (Rs 730 crore in Q3FY10), non-interest income, at Rs 250 crore (Rs 364 crore), was lower due to lower profits from trading income, as the yields on government securities were higher in the December-ended quarter.

Trading income during the third quarter of 2010-11 was Rs 43 crore (Rs 175 crore).

The bank saw a substantial reduction in cost of deposits, which declined to 5.68 per cent (6.10 per cent).

“The growth in fixed deposits was negative because of the flight of high cost bulk deposits,” Mr Sridhar said. Bulk deposits now constitute only 5 per cent of the bank's total deposits.

Going ahead the focus will be on increasing the share of low cost current and savings accounts (CASA), the Chairman said. “We will focus on retail deposit mobilisation. However, we will review our strategy of completely shutting out high cost deposits.” Year-on-year, the bank's advances grew by 28 per cent, while deposits grew only by 5 per cent. The bank resorted to refinancing from institutions like SIDBI, Exim Bank and NHB to raise resources of about Rs 7,000 crore. “We substituted bulk deposits with refinancing, as it was cheaper,” Mr Sridhar said.

Rights issue
Central Bank of India has filed the offer document with markets regulator SEBI to raise over Rs 2,500 crore through a rights issue. Post the issue the Tier I capital is expected to increase to around 8 per cent from the current level of 6.18 per cent, Mr Sridhar said.

The bank is planning to increase the number of ATMs to 2,000 from the current 900 by March 31.

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