Centurion Bank bottomline may be hit
James Paul
1 November 2001

Kochi: Even as Centurion Bank’s overall operations continue to be profitable, its half-year bottomline may be affected because of the provisioning requirement relating to its exposure to the capital market, Centurion Bank director V S Srinivasan has said.

The bank’s capital market exposure has made a dent in its portfolio to some extent. Its presence in the capital market was limited, but the Ketan Parekh imbroglio changed it all and now the bank might face considerable losses.

The bank’s exposure in the corporate assets side is towards good quality medium- and large-size corporates. But the performance of these companies has also been affected due to the sluggish economic environment, he said.

Centurion Bank Ltd, he said, is undergoing a transformation and is in the process of cleaning up the balance sheet. As part of this, the focus is on retail business, of both assets and liabilities. Retail deposits have already shown a growth of Rs 583 crore.

Two-wheeler financing has become a profitable operation for the bank. The bank is adding new savings bank and current accounts at the rate of 10,000 every month. Issuance of ATM and debit cards has also seen a rise.

Since 31 March 2001, the bank has opened six branches, three extension counters and 18 ATMs, taking the total to 55 branches, 11 extension counters and 116 ATMs.

U K Sethumadhavan, who now heads the southern division of the bank, says the total business turnover in Kerala is Rs 300 crore. The bank is opening two more extension counters - at Thoppumpady and Kolencheri (Ernakulam boroughs) - shortly, increasing the network in the state to six branches and five extension counters and 17 ATMs.

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