The Hindu Business Line : Central Bank mulls pref share issue

Central Bank of India, which plans to go in for a preference share issue in the near future to enhance its share capital, is awaiting amendment to the Banking Regulation Act to allow banks to issue preference shares. Disclosing this here, the Executive Director of the bank, Mr K. Subburaman, said the bank has projected to reduce its net non-performing assets to less than 1.5 per cent by March 2007, from the existing 2.59 per cent. Divulging the financial plans, he said, the bank has embarked on a major growth drive through information technology, reduction in operational costs and diversification of its product basket. From a business of Rs 1.05 lakh crore, it has targeted Rs 1.30 lakh crore by March 2007 and hopes to double this in three years, Mr Subburaman said. The thrust would be on increasing business volumes and fee-based income and simultaneously reducing operational costs. Mr Subburaman said the bank has planned to embark on networking 700 of its branches under core banking by the year-end. The bank, with 3,130 branches, 55 per cent of which are in rural areas, is looking forward to a big growth as the Union Government is focusing on rural finances in a big way.

In case of ATM network, he said the plan was to raise the number to 500 from the existing 180, by March.

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