Central Bank of India sheds high-cost deposits

PSU lender Central Bank of India has shed around Rs 5,000 crore of high-cost deposits in the first half to protect its net interest margin, a top official of the bank has said.

“Shedding high-cost deposits is necessary in the current interest rate scenario. We have shed around Rs 5,000 crore of high-cost deposits in the first half," executive director V R Iyer said.

She said the bank was continuously evaluating its deposit portfolio to adjust the high cost of borrowing in the present environment. The city-based lender, which had been witnessing a deposit growth of 18 per cent in the first eight months of this financial year, was also hopeful of posting 20 per cent growth in advances during this financial year. “Though advances are little subdued as of now, we are hopeful of posting a 20 per cent growth in advances," Iyer said.