Central Bank Q1 net profit dips 16.62% to R282 crore

Jul 30 2011, 00:16 IST
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SummaryCentral Bank of India’s net profits dipped 16.62% year-on-year to R281 crore for the three months to June 2011.

Central Bank of India’s net profits dipped 16.62% year-on-year to R281 crore for the three months to June 2011. The numbers were below the street’s expectations and resulted from a trading loss and additional provisions mandated by the RBI. Shares of Central Bank fell 1.7% on the Bombay Stock Exchange to R116.35.

The bank’s net interest margin (nim) declined 32 basis points sequentially to 2.99%. According to MV Tanksale, CMD, Central Bank, the bank’s provisioning increased because of slippages of R533 crore in the June 2011 quarter.

The bank’s net non performing assets (NPAs) increased to 0.87% from 0.65% in the quarter ended March, 2011 while gross NPAs too went up 47 basis points to 2.29% in the June quarter.

Casa deposits for the bank were down by 20 basis points sequentially at 32% at R60,553 crore. While the bank’s total income rose 32% year-on-year to R4,840 crore, expenses registered a higher growth of 35.3% at R4048.5 crore.

With its 32 new branches opened this month, the bank is planning to focus more on SMEs and retails.

The public sector bank’s annualised net interest income increased (NII) by 18.8% to R1,330 crore in the reporting quarter and thus increasing the operating profit by 18.5% to R792 crore.

City Union Bank Q1 net profit up 32%

Chennai: City Union Bank has proposed to raise R1,000 crore over a period of next three years to meet its projected annual growth rate of 25% to 30%.

The bank will weigh the options such as QIP, rights issue, follow on public issue or preferential allotment and expect to raise at least R300 crore in the current financial year, said N Kamakodi, Md and CEO, here. The bank will also raise the interest rate by 75 basis points — from a base rate of 9.75% to 10.5%, effective August 1, he added.

Addressing a press conference to announce the Q1 results, Kamakodi said the profit after tax has grown 32% in the quarter ended June 30, 2011 to R58.51 crore (R44.37 crore) and the net interest income shot up 30.23% to R120.04 crore. The non-interest income jumped 42.84% to R46 crore while interest income grew 39% to R371 crore.

The total income during the quarter stood at R417 crore, a growth of 39%. The net interest margin has been pegged at 3.59%, he said.

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