Centurion Bank of Punjab reported a 15 per cent rise in net profit in the first quarter of 2007-08, with buoyant growth in other income offsetting a slower growth in net interest income. | |
| Net profit stood at Rs 33 crore for the quarter-ended June, up from Rs 28.7 crore a year earlier. |
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| Net interest income grew 17 per cent to Rs 144.5 crore. Net interest margin (NIM) stood at 3.6 per cent with increased cost of deposits (at 7.4 per cent) lowering margins. |
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| "The cost of deposits increased in the quarter due to changes in the interest rate environment. This has shown some signs of easing and interest rates for bulk deposits have gone down significantly since the beginning of June," said the bank. |
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| Other income increased 64 per cent to Rs 141.8 crore with fee from wealth management, core banking, retail assets and foreign exchange businesses contributing to this growth. |
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| Advances grew 60 per cent to Rs 11,940 crore (Rs 7,452 crore). Deposits rose 55 per cent to Rs 16,099 crore (Rs 10,372 crore). Low-cost deposits (current account and savings account deposits) accounted for 28 per cent of total deposits. |
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| This is faster than the industry average of 24 per cent growth in advances as well as deposits recorded at the end of first quarter of 2007-08. |
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| Retail advances increased by 59 per cent to Rs 8,230 crore forming 69 per cent of total advances at the end of June 2007. |
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| While, the private sector bank's operating profit was up 79 per cent to Rs 90.8 crore from a year earlier, provisions and contingencies nearly doubled to Rs 38.28 crore over the period. |
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| Net non-performing assets (NPAs) was 1.6 per cent at the end of June 2007. |
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| Capital adequacy ratio stood at 10.97 per cent in the first quarter of June 2007, down from 12.62 per cent a year earlier. It will raise upto Rs 500 crore through a qualified institutional placement. |
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| The bank will be entering the business of pension fund management and will create a subsidiary for the purpose. |
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