Custom Search

Tuesday, May 8, 2012

Restructuring of loans pushes Central Bank into loss in Q4

Central Bank of India reported a loss of Rs 105 crore in January-March 2012 compared with a net profit of Rs 133 crore in the corresponding year-ago period.

The loss was on account of restructuring of large corporate loans, including Rajasthan Distribution Company and Air-India.

In the year-ended March 31, 2012, the public sector bank's net profit dipped 57 per cent to Rs 533 crore (Rs 1,252 crore in FY11).

Slippages (net) jumped to Rs 4,557 crore as at March-end 2012 as against Rs 847 crore in March-end 2011.

As at March-end 2012, the bank's restructured loans portfolio stood at about Rs 17,000 crore. Rajasthan Distribution Company (Rs 6,400 crore) and Air-India (Rs 1,600 crore) accounted for a chunk of the outstanding restructured loans.

The bank's management indicated a return to profitability in the April-June period, and said that the worse was over when it comes to bad loans. “We will increase our exposure to retail loans…Our high NPA figures have been because a few accounts, particularly from steel and power, have slipped into NPAs,” the Chairman and Managing Director, Mr M.V. Tanksale, said.

The bank's net interest margin was lower at 2.78 per cent as at March-end 2012 as against 3.31 per cent as at March-end 2011.

Capital adequacy ratio (CAR) improved to 12.40 per cent as at March-end 2012 from 11.64 per cent as at March-end 2011.

Shares of Central Bank of India closed at Rs 77.55 a share, down 12 per cent, over the pervious close of Rs 88.30 on the BSE.


Post a Comment

Popular Posts

Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site