Central Bank net up 26%; plans to raise Rs 2,500 cr
Press Trust of India / Mumbai Jul 29, 2010, 21:01 IST
State-run Central Bank of India today posted a 26 per cent jump in its net profit at Rs 337 crore for the quarter ended June 30, 2010, as against Rs 267 crore in the same period last year, aided by a jump in its interest income.
The lender, however, witnessed sharp increase in its non-performing assets during the quarter due to one large corporate account amounting to around Rs 100 crore, Central Bank of India Chairman and Managing Director S Sridhar said.
Central Bank has approached the government to raise around Rs 2,500 crore in the current fiscal and is currently in talks with the government to decide the appropriate modality to raise this amount, Sridhar said.
"We are in dialogues with the government to discuss the appropriate model to raise this capital as we have to raise Rs 2,500 crore in the current fiscal itself to maintain a Tier-I capital adequacy of 8 per cent," Sridhar told reporters here.
The bank had fresh additions of around Rs 289 crore badloans in the first quarter as against Rs 71 crore in the year-ago period. Net non-performing assets of the bank went up to 0.77 per cent as compared to 0.70 per cent in the same quarter last year.
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