Central Bank plans to sell bad loans up to Rs 400 cr in FY11

State-run Central Bank of India plans to sell bad loans worth Rs 300-400 crore in the current financial year to clean up its balance sheet, a top bank official said.

"We may sell Rs 300-400 crore of bad assets this year," Central Bank of India Executive Director Arun Kaul told reporters here today.

In the last fiscal, the bank had sold bad loans of about Rs 350 crore, Kaul said.

Banks and other financial institutions having lending operations, sell a part of their bad loans to Asset Reconstruction Companies (ARCs) at a discounted rate with a view to clean up their balance sheets.

Asset Reconstruction firm Arcil today said in the last financial year it had bought bad assets from banks and other financial institutions worth Rs 600-700 crore through cash and security receipts.

For the fiscal ended March, Central Bank of India reported a 82.83 per cent growth in consolidated net profit at Rs 1,162.55 crore as against a net profit of Rs 635.85 crore in the previous year.

Total income rose to Rs 13,820.61 crore during the year, up 19.75 percent, from Rs 11,540.97 crore in the corresponding period a year-ago.