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Central Bank net up at Rs 163.3 cr -- Plans Rs 300-cr IPO this fiscal

Our Bureau


Dr Dalbir Singh,CMD, Central Bank of India, addressing a press conference in the Capital on Thursday.

NEW DELHI, June 6

CENTRAL Bank of India (CBI) has recorded a net profit of Rs 163.30 crore for 2001-02, a 251 per cent rise over the previous year's net of Rs 46.46 crore. The operating profit during the year has risen by 49.71 per cent from Rs 470.47 crore to Rs 704.36 crore.

Announcing the results at a press conference here on Thursday, the Chairman and Managing Director, CBI, Dr Dalbir Singh, said that the total business of the bank on March 31, 2002, reached Rs 70,105 crore, a rise of 13.38 per cent over the previous year. While deposits rose by 13.53 per cent to Rs 47,137 crore, gross advances increased by 13.53 per cent to Rs 22,898 crore.

Buoyed by the improved performance, the bank plans to come up with a Rs 300-crore initial public offer (IPO) during the last quarter of the current fiscal, Dr Singh said. However, he said that the details of the issue would be finalised later.

During 2001-02, Central Bank has also been able to bring down its net non-performing assets (NPAs) to 7.98 per cent, against 9.72 per cent in the previous year.

Dr Singh said that the bank has drawn up an elaborate plan to further reduce its NPAs to below 3.5 per cent in the next three year. "We would like to bring down the NPAs by 1.5 per cent each year during each of the next three years. We would utilise all means to achieve this target including utilising the Debt Recovery Tribunals (DRTs) and going in for one-time settlements (OTS),'' Dr Singh said.

He informed that the bank has computerised 1,221 out of its 3,115 branches, which accounts for 70 per cent of the business in the metro and urban branches. He said that the bank plans to link about 203 of its major branches and offices in 81 cities in the coming few months.

Talking about the future outlook of the bank, Dr Singh said that it has set itself a target of achieving a business turnover of Rs 1,00,000 crore during the next three years.

He said that the bank plans to have a total network of about 100 ATMs at the end of the current financial year.

Dr Singh said that to ensure greater profitability in future, the bank has already implemented a Risk Management System, which has been designed by the Boston Consulting Group (BCG). Moreover, he said that the bank has got the hi-tech branches inspected by Ersnt & Young Pvt Ltd.

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