Central Bank net increases to Rs 163 crore
Our Banking Bureau
7 June 2002

New Delhi: Central Bank of India (CBI) has recorded a net profit of Rs 163.30 crore for 2001-02 — a 251-per cent rise over the previous year’s net of Rs 46.46 crore. The operating profit during the year has risen by 49.71 per cent from Rs 470.47 crore to Rs 704.36 crore.

CBI chairman and managing director Dr Dalbir Singh says the total business of the bank on 31 March 2002 reached Rs 70,105 crore — a rise of 13.38 per cent over the previous year. While deposits rose by 13.53 per cent to Rs 47,137 crore, gross advances increased by 13.53 per cent to Rs 22,898 crore.

The bank plans to come up with a Rs 300-crore initial public offer (IPO) during the last quarter of the current fiscal, Dr Singh say. “The details of the IPO will be finalised later.” During 2001-02, CBI has also been able to bring down its net non-performing assets (NPAs) to 7.98 per cent, against 9.72 per cent in the previous year.

Dr Singh says the bank has drawn up an elaborate plan to further reduce its NPAs to below 3.5 per cent in the next three year. “We would like to bring down the NPAs by 1.5 per cent each year during each of the next three years. We will utilise all means to achieve this target, including utilising the debt recovery tribunals and will opt for one-time settlements.”

He says the bank has computerised 1,221 out of its 3,115 branches, which accounts for 70 per cent of the business in the metro and urban branches. “The bank plans to link about 203 of its major branches and offices in 81 cities in the coming few months.”

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