The state-owned Central Bank of India is awaiting the central government's go-ahead to convert part of Rs 1,124 crore bloated equity base into preference shares. This conversion will help the bank improve its earnings per share and command good premium while floating the public issue. | |
| The bank expects to reduce its capital base up to 60 per cent in order to have equity base of below Rs 500 crore. A senior Central Bank official said the bank expected to hit the capital market with its public offer to issue fresh shares soon after the government gave its nod. Indian Bank and United Bank of India, both fully owned by the government, are also going through a similar process of capital restructuring. |
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| Mumbai-based bank reported 99.07 per cent rise in net profit at Rs 215 crore for the six months ended September 2006 against Rs 108 crore in April-September 2005. The total income rose to Rs 3,114 crore from Rs 2,864 crore a year ago. The public sector bank will start presentation of quarterly results from the third quarter ending December 2006 with an eye on the proposed maiden offer. |
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| While its interest income on advances improved to Rs 1,656 crore from Rs 1,237 crore a year ago, the non-interest income rose marginally to Rs 235 crore against Rs 226 crore. The net interest margins dipped to 3.0 per cent from 3.49 per cent. |
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| Central Bank's deposits saw a growth of 16.38 per cent to Rs 76,221 crore. The cost of deposits rose by 20 basis points to 4.84 per cent from 4.64 last year. The advances were up at Rs 43,245 crore from Rs 30,966 crore at the end of September 2005. The credit-deposit ratio improved to 58.40 per cent from 48.78 per cent in 2005-06. |
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| The gross non-performing assets of the bank declined from 8.49 per cent to 6.49 per cent, while its capital adequacy ratio fell to 11.52 per cent from 12.13 per cent a year ago. |
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