Hyderabad, Feb.3 (NSS): The Central Bank of India has reported a 32 per cent increase in its Net Profit for the Third quarter ended December 31, 2010, at Rs 403.52 crore on the back of a steep 96 per cent rise in interest income.
While the net profit for the corresponding period last year was Rs 306.44 crore. The Net Interest Income for the reporting quarter has almost doubled to Rs 1432 crore from Rs 730 crore a year ago.
“The bank, which has plans to come out with a Rs 2500 crore rights issue soon, was also able to widen its net interest margin to 3.45 per cent from the 2.04 per cent in the year ago period. However, poor conditions in the bond market resulted in the dipping out of the non-interest income to Rs 250 crore from Rs 364 crore a year ago”, The chairman and managing director, Mr S Sridhar told reporters.
Mr Sridhar said that the bank’s credit growth stood at 28 per cent for the quarter as against a mere 4 per cent rise in overall deposits. About sustaining credit growth against such a skewed number, he said that the bank had raised its credit deposit ratio to over 70 per cent, consciously brought its high-cost deposits and had also seen a spurt in the cheaper Current and Savings Account deposit ratio to nearly 35 per cent due to which it could keep lending. (NSS)