MUMBAI, April 12: Central Bank of India has revalued its fixed assets to shore up its capital adequacy ratio. Confirming the development, Central Bank of India chairman KC Chowdhary said the bank has revalued fixed assets worth Rs 260 crore during the year to prop up its capital adequacy ratio from 9.41 per cent to over 10 per cent.This is the second time in recent years that the Mumbai-based public sector bank has revalued its fixed assets to prop up the capital adequacy ratio. The revaluation reserves form the Tier II capital of a commercial bank. The Reserve Bank of India is at present closely examining the proposal of raising the stipulated minimum capital adequacy ratio from 8 per cent to 12 per cent.
Central Bank's net non-performing assets (NPA) went up from Rs 1,201.17 crore (13.49 per cent) in March 1996 to Rs 1,267 crore (14.4 per cent) in March 1997. "We have taken up a recovery drive. The net NPA level will certainly go down in 1997-98," Chowdhary said.
Central Bank's total businessturnover during 1997-98 stood at Rs 38,100 crore, an increase of 15 per cent over the previous year.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
