Centurion Bank Q3 net up at Rs7.1 crore

Our Banking Bureau
11 January 2005

Mumbai: Centurion Bank Ltd has posted a net profit of Rs7.10 crore for the third quarter ended December 31,2004, as against a net loss of Rs6.54 crore in the corresponding year-ago period.

Says Shailendra Bhandari, managing director, Centurion Bank, "The whole of last year we had been cleaning up the balance sheet and recapitalising the bank. Eighty per cent of our loan book is on the retail side and our net-interest spread, at 4.76 per cent, is one of the highest in the industry. This has certainly added to our momentum along with our increased focus on fee-based activities."

During the third quarter, total income of the bank grew to Rs103.66 crore (Rs99.17 crore). This comprised interest earned at Rs86.96 crore (Rs83.67 crore) and other operating income at Rs16.70 crore (Rs15.50 crore).

Total expenditure was at Rs98.27 crore (Rs94.61 crore). This is inclusive of interest expended at Rs41.12 crore (Rs48.88 crore) and operating expenses at Rs57.15 crore (Rs45.73 crore).

The capital adequacy ratio of the bank improved to 10.17 per cent (3.52 per cent). Net non-performing assets of the bank came down to 3.36 per cent (6.47 per cent). Retail assets of the bank (pre-securitisation) increased by 54 per cent to Rs1,876 crore from Rs1,220 crore in the year-ago period.

For the nine-months ended December 31, 2004, the bank recorded a net-profit of Rs15.51 crore against a loss of Rs7.42 crore for the nine months ended December 31, 2003.The board of the bank has approved a proposal to raise additional equity capital of about Rs300 crore. The bank has also called for an EGM on February 7, to seek shareholders'' approval to raise up to Rs600 crore, in one or more tranches.