CENTRAL BANK OF INDIA DECLARES RESULTS FOR THE QUARTER JUNE 30 2011

Central Bank of India declared the quarterly results for the quarter ended June 30, 2011. We are reproducing the same here for our readers.

CENTRAL BANK OF INDIA’s OPERATING PROFIT RISES BY 18.56% (Q-o-Q)

NET PROFIT DIPS BY 16.62% (Q-o-Q)

FOR Q1 - NET INTEREST INCOME SURGES 18.86%

Central Bank of India, a leading Public Sector Bank in its Centenary year has posted a Net Profit of Rs. 281 crore for the quarter ended June 30, 2011 as compared to Rs. 337 crore for the quarter ended June 30, 2010 recording a negative growth of 16.62% as on Y-o-Y basis. Operating Profit rose by 18.56% from Rs. 668 crore in Q1 2010-11 to Rs. 792 crore in Q1 2011-12. This increase was due to a growth of 18.86% on Y-o-Y basis in Net Interest Income from Rs.1119 crore for Q1 2010-11 to Rs.1330 crore for Q1 2011-12. The Total Business of the Bank increased to Rs.311929 crore as on June 30, 2011 from Rs. 262120 crore as on June 30, 2010, registering a growth of 19.00% on Y-o-Y basis. Gross NPA ratio declined to 2.29% as on June 30, 2011 from 2.43 % as on June 30, 2010. Net NPAs is 0.87% as on June 30, 2011. NPA Provision Coverage was 65.16% as on June 30, 2011. Return on Assets has decreased to 0.56% as on June 30, 2011 from 0.78% as on June 30, 2010. Cost to Income Ratio improved to 50.90% for Q1 2011-12 from 51.12% for Q1 2010-11. Tier II Capital Adequacy Ratio (Basel II) stood at 12.68% as on 30.06.2011 as compared to 12.80% as on 30.06.2010.

The above information was given by Mr. M V Tanksale, Chairman & Managing Director of the Bank, while addressing a Press Conference at Mumbai on 29th July, 2011.

Performance Highlights for the Quarter ended June 30, 2011 are given as hereunder:

BUSINESS EXPANSION

Ø  Aggregate Deposits of the Bank have increased to Rs. 185885 crore as on June 30, 2011 in comparison to Rs. 154559 crore as on June 30, 2010 registering a growth of 20.27 % on Y-o-Y basis.

Ø  CASA Deposits grew by 14.68% from Rs. 52803 crore as on June 30, 2010 to Rs. 60553 crore as on June 30, 2011. CASA Deposits constituted 32.57% of Total Deposits as on June 30, 2011.

Ø  Gross Advances increased to Rs.126044 crore as on June 30, 2011 from Rs. 107561 crore as on June 30, 2010 i.e. 17.18 %.

Ø  Business per branch has increased to Rs. 82.15 crore as on June 30, 2011compared to Rs. 71.78 crore as on June 30, 2010, registering a growth of 14.45%.

Ø  Business per employee has increased to Rs. 8.82 crore as on June 30, 2011 from Rs.7.92 crore as on June 30, 2010, registering a growth of 11.36%.

Ø  The investments have increased to Rs. 60710 crore as on June 30, 2011 from Rs. 48389 crore as on June 30, 2010 at a growth rate of 25.46 % on Yo-Y basis.

CAPITAL ADEQUACY

Ø  Capital Adequacy of the Bank stands at 12.33% (Basel I) as on June 30, 2011. It was 11.66 % as on June 30, 2010.

Ø  As per Basel II the CRAR stands at 12.68% as on June 30, 2011. It was 12.80 % as on June 30, 2010.

ASSET QUALITY

Ø  Gross NPAs as a percentage of Gross Loans and Advances was 2.29% as on Q1 2011-12 compared to 2.43% as on Q1 2010-11.

Ø  Net NPA stood at Rs.1082 crore as on June 30, 2011 from Rs 815 crore as on June 30, 2010 increased by 32.76 % on Y-o-Y basis.

Ø  The percentage of net NPA as on June 30, 2011 is 0.87% of total advances against 0.77 % as on June 30, 2010.

Ø  NPA Provision coverage is 65.16% as on June 30, 2011.

PROFIT

Ø  Operating Profit of the Bank was up by 18.56% at Rs. 792 crore for the quarter ended June 30, 2011 from Rs. 668 crore as on June 30, 2010 on Y-o-Y basis.

Ø  The Net Profit of the Bank for the quarter ended June 30, 2011 stood at Rs.281 crore as compared to Rs. 337 crore for the quarter ended June 30, 2010 recorded a negative growth of 16.62% on Y-o-Y basis.

Ø  Non Interest Income of the Bank is Rs. 282 crore for the quarter ended June 30, 2011.

KEY FINANCIAL RATIOS

Ø  Cost to income ratio improved to 50.90% for the quarter ended June 30, 2011 from 51.12 % for the quarter ended June 30, 2010 on Y-o-Y basis.

Ø  Return on Average Assets is decreased to 0.56% as on June 30, 2011 from 0.78% as on June 30, 2010.

Ø  Cost of deposits has increased to 6.80% for the quarter ended June 30, 2011 as compared to 5.53 % for the quarter ended June 30, 2010 on Y-o-Y basis.

Ø  Yield on advances increased to 11.37% for the quarter ended June 30, 2011 when compared to 9.65 % for the quarter ended June 30, 2010 on Y-o-Y basis.

Ø  Yield on Investment increased to 7.14% for the quarter ended June 30, 2011 when compared to 6.72 % for the quarter ended June 30, 2010 on Y-o-Y basis.

SEGMENTWISE ADVANCES

Ø  Under Priority Sector Advances of the Bank, the agriculture advances stood at Rs. 19785 crore at the end of June 30, 2011 increased from Rs. 16566 crore at the end of June 30, 2010 registering growth of 19.43 % on Y-o-Y basis.

Ø  Under MSME sector the advances were at Rs. 12171 crore as on June 30, 2011 as against Rs. 9497 crore for the corresponding period of previous year registering a growth of 28.15% on Y-o-Y basis.

Ø  Retail Loans grew from Rs.14334 crore as on June 30, 2010 to Rs. 11422 crore as on June 30, 2011 with a growth of 25.49 % on Y-o-Y basis.

NEW INITIATIVES DURING THE QUARTER 1 (JUNE 2011)

Ø  The Bank has achieved 100% coverage of Core Banking.

Ø  Bank’s ATM Network has been expanded to 1106.

Ø  Roll out of e-stamping in the states of Gujarat, Delhi & Tamil Nadu

Ø  Family Health Insurance package for NRI customers

Ø  Fast track educational loans to Indian students studying in Warwick University, UK

Ø  Bank has launched web based portal specially for Financial Inclusion

Ø  HRMS solution implemented to facilitate paperless processing

Ø  E-KIOSK-POC by two vendors will be done shortly

Ø  Privilege banking facility for HNI customer to be started soon

Ø  MBAs taken on contract in 2009 have been absorbed/appointed as Managers numbering 09 and as Senior Managers numbering 10.

Ø  Process of recruiting 3432 clerks is underway and there is plan for recruiting approx. 2500 Probationary Officers to infuse fresh blood.

Ø  There is plan for recruiting 1242 Specialist Officers in the field of IT/Law/Security/Technical Officers/Risk Management/Treasury/ ID/Marketing and Agriculture.

Ø  Promotion Process was completed, promoting therein 907 Officers, right from Scale I to Scale VII.

Ø  Manpower succession planning has been drawn for the year 2011-12 and accordingly recruitment and promotion process shall be initiated to fill the gaps.

Ø  Structured Training Policy is there which has been duly approved by the Board of directors. During the quarter, participation in 268 training programmers (internal/external as well as oversea) have been made by 5342 officials in different scales to upgrade their skills.

Ø  Bank received several prizes for best implementation of Rajbhasha

Ø  Bank organized different programmes/activities on National & Regional Level

Ø  A sustained campaign using Print/Outdoor & Electronic media has improved Bank’s visibility substantially and Bank’s brand value has shown considerable growth.

SOURCE: https://www.centralbankofindia.co.in/upload/news/Quarterly_Results.pdf